diff --git a/package.json b/package.json
index 6736e494ceea..59a0d4ee56c3 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
-  "name": "angular-cli",
-  "version": "1.0.0-beta.17",
+  "name": "angular-cli-with-use-yarn",
+  "version": "1.0.0-beta.17.2",
   "description": "CLI tool for Angular",
   "main": "packages/angular-cli/lib/cli/index.js",
   "trackingCode": "UA-8594346-19",
@@ -44,6 +44,7 @@
   "homepage": "https://github.com/angular/angular-cli",
   "dependencies": {
     "@angular-cli/ast-tools": "^1.0.0",
+    "@angular-cli/base-href-webpack": "^1.0.2",
     "@angular/common": "^2.0.0",
     "@angular/compiler": "^2.0.0",
     "@angular/compiler-cli": "^0.6.0",
@@ -51,6 +52,7 @@
     "@angular/platform-browser": "^2.0.0",
     "@angular/platform-server": "^2.0.0",
     "@angular/tsc-wrapped": "^0.3.0",
+    "@ngtools/webpack": "^1.1.0",
     "angular2-template-loader": "^0.5.0",
     "awesome-typescript-loader": "^2.2.3",
     "chalk": "^1.1.3",
diff --git a/packages/angular-cli/commands/init.ts b/packages/angular-cli/commands/init.ts
index 1b300e43b588..8ff31ee1100d 100644
--- a/packages/angular-cli/commands/init.ts
+++ b/packages/angular-cli/commands/init.ts
@@ -1,5 +1,6 @@
 import LinkCli from '../tasks/link-cli';
 import NpmInstall from '../tasks/npm-install';
+import Yarn from '../tasks/yarn';
 
 const Command = require('ember-cli/lib/models/command');
 const Promise = require('ember-cli/lib/ext/promise');
@@ -19,6 +20,7 @@ const InitCommand: any = Command.extend({
     { name: 'dry-run', type: Boolean, default: false, aliases: ['d'] },
     { name: 'verbose', type: Boolean, default: false, aliases: ['v'] },
     { name: 'link-cli', type: Boolean, default: false, aliases: ['lc'] },
+    { name: 'use-yarn', type: Boolean, default: false, aliases: ['uy'] },
     { name: 'skip-npm', type: Boolean, default: false, aliases: ['sn'] },
     { name: 'skip-bower', type: Boolean, default: true, aliases: ['sb'] },
     { name: 'name', type: String, default: '', aliases: ['n'] },
@@ -56,8 +58,17 @@ const InitCommand: any = Command.extend({
     }
 
     let npmInstall: any;
-    if (!commandOptions.skipNpm) {
-      npmInstall = new NpmInstall({
+    let yarn: any;
+    if (!commandOptions.useYarn) {
+      if (!commandOptions.skipNpm) {
+        npmInstall = new NpmInstall({
+          ui: this.ui,
+          analytics: this.analytics,
+          project: this.project
+        });
+      }
+    } else {
+      yarn = new Yarn({
         ui: this.ui,
         analytics: this.analytics,
         project: this.project
@@ -122,8 +133,12 @@ const InitCommand: any = Command.extend({
         }
       }.bind(this))
       .then(function () {
-        if (!commandOptions.skipNpm) {
-          return npmInstall.run();
+        if (!commandOptions.useYarn) {
+          if (!commandOptions.skipNpm) {
+            return npmInstall.run();
+          }
+        } else {
+          return yarn.run();
         }
       })
       .then(function () {
diff --git a/packages/angular-cli/commands/new.ts b/packages/angular-cli/commands/new.ts
index 5737c0afaee8..7aae714e167a 100644
--- a/packages/angular-cli/commands/new.ts
+++ b/packages/angular-cli/commands/new.ts
@@ -16,6 +16,7 @@ const NewCommand = Command.extend({
     { name: 'dry-run', type: Boolean, default: false, aliases: ['d'] },
     { name: 'verbose', type: Boolean, default: false, aliases: ['v'] },
     { name: 'link-cli', type: Boolean, default: false, aliases: ['lc'] },
+    { name: 'use-yarn', type: Boolean, default: false, aliases: ['uy'] },
     { name: 'skip-npm', type: Boolean, default: false, aliases: ['sn'] },
     { name: 'skip-bower', type: Boolean, default: true, aliases: ['sb'] },
     { name: 'skip-git', type: Boolean, default: false, aliases: ['sg'] },
diff --git a/packages/angular-cli/tasks/yarn.ts b/packages/angular-cli/tasks/yarn.ts
new file mode 100644
index 000000000000..b85ad5c207c6
--- /dev/null
+++ b/packages/angular-cli/tasks/yarn.ts
@@ -0,0 +1,26 @@
+
+const Task = require('ember-cli/lib/models/task');
+import * as chalk from 'chalk';
+import {exec} from 'child_process';
+
+
+export default Task.extend({
+  run: function() {
+    const ui = this.ui;
+
+    return new Promise(function(resolve, reject) {
+      ui.writeLine(chalk.green('Installing packages for tooling via yarn.'));
+      exec('yarn',
+        (err: NodeJS.ErrnoException, stdout: string, stderr: string) => {
+        if (err) {
+          ui.writeLine(stderr);
+          ui.writeLine(chalk.red('Package install failed, see above.'));
+          reject();
+        } else {
+          ui.writeLine(chalk.green('Installed packages for tooling via yarn.'));
+          resolve();
+        }
+      });
+    });
+  }
+});