diff --git a/src/lib/schematics/address-form/schema.json b/src/lib/schematics/address-form/schema.json
index a1cc0c4629b6..10b9d2edb3b9 100644
--- a/src/lib/schematics/address-form/schema.json
+++ b/src/lib/schematics/address-form/schema.json
@@ -58,8 +58,7 @@
     },
     "styleext": {
       "description": "The file extension to be used for style files.",
-      "type": "string",
-      "default": "css"
+      "type": "string"
     },
     "spec": {
       "type": "boolean",
diff --git a/src/lib/schematics/dashboard/index.spec.ts b/src/lib/schematics/dashboard/index.spec.ts
index 75bd231dd279..7fb9a1b4f4ea 100644
--- a/src/lib/schematics/dashboard/index.spec.ts
+++ b/src/lib/schematics/dashboard/index.spec.ts
@@ -5,13 +5,10 @@ import {Schema} from './schema';
 
 describe('material-dashboard-schematic', () => {
   let runner: SchematicTestRunner;
-  const options: Schema = {
+
+  const baseOptions: Schema = {
     name: 'foo',
     project: 'material',
-    changeDetection: 'Default',
-    styleext: 'css',
-    spec: true,
-    export: false,
   };
 
   beforeEach(() => {
@@ -19,7 +16,7 @@ describe('material-dashboard-schematic', () => {
   });
 
   it('should create dashboard files and add them to module', () => {
-    const tree = runner.runSchematic('dashboard', { ...options }, createTestApp());
+    const tree = runner.runSchematic('dashboard', baseOptions, createTestApp());
     const files = tree.files;
 
     expect(files).toContain('/projects/material/src/app/foo/foo.component.css');
@@ -33,7 +30,7 @@ describe('material-dashboard-schematic', () => {
   });
 
   it('should add dashboard imports to module', () => {
-    const tree = runner.runSchematic('dashboard', { ...options }, createTestApp());
+    const tree = runner.runSchematic('dashboard', baseOptions, createTestApp());
     const moduleContent = getFileContent(tree, '/projects/material/src/app/app.module.ts');
 
     expect(moduleContent).toContain('MatGridListModule');
@@ -47,4 +44,17 @@ describe('material-dashboard-schematic', () => {
       `import { MatGridListModule, MatCardModule, MatMenuModule, MatIconModule, MatButtonModule } from '@angular/material';`);
   });
 
+  it('should support passing the style extension option', () => {
+    const tree = runner.runSchematic(
+        'dashboard', {styleext: 'scss', ...baseOptions}, createTestApp());
+
+    expect(tree.files).toContain('/projects/material/src/app/foo/foo.component.scss');
+  });
+
+  it('should fallback to the default angular:component style extension', () => {
+    const tree = runner.runSchematic('dashboard', baseOptions, createTestApp({style: 'less'}));
+
+    expect(tree.files).toContain('/projects/material/src/app/foo/foo.component.less');
+  });
+
 });
diff --git a/src/lib/schematics/dashboard/schema.json b/src/lib/schematics/dashboard/schema.json
index 0d5075b99580..2806d5536324 100644
--- a/src/lib/schematics/dashboard/schema.json
+++ b/src/lib/schematics/dashboard/schema.json
@@ -58,8 +58,7 @@
     },
     "styleext": {
       "description": "The file extension to be used for style files.",
-      "type": "string",
-      "default": "css"
+      "type": "string"
     },
     "spec": {
       "type": "boolean",
diff --git a/src/lib/schematics/install/index.spec.ts b/src/lib/schematics/install/index.spec.ts
index c2a4ed3bc455..f5adc31c01e1 100644
--- a/src/lib/schematics/install/index.spec.ts
+++ b/src/lib/schematics/install/index.spec.ts
@@ -41,7 +41,11 @@ describe('material-install-schematic', () => {
       './node_modules/@angular/material/prebuilt-themes/indigo-pink.css');
   });
 
-  it('should add custom theme', () => {
+  it('should support adding a custom theme', () => {
+    // TODO(devversion): currently a "custom" theme does only work for projects using SCSS.
+    // TODO(devversion): Throw an error if a custom theme is being installed in a CSS project.
+    appTree = createTestApp({style: 'scss'});
+
     const tree = runner.runSchematic('ng-add', {theme: 'custom'}, appTree);
 
     const workspace = getWorkspace(tree);
diff --git a/src/lib/schematics/nav/index.spec.ts b/src/lib/schematics/nav/index.spec.ts
index 37af2ca83cfd..bc2b2315544b 100644
--- a/src/lib/schematics/nav/index.spec.ts
+++ b/src/lib/schematics/nav/index.spec.ts
@@ -6,13 +6,9 @@ import {collectionPath, createTestApp} from '../test-setup/test-app';
 describe('material-nav-schematic', () => {
   let runner: SchematicTestRunner;
 
-  const options: Schema = {
+  const baseOptions: Schema = {
     name: 'foo',
     project: 'material',
-    changeDetection: 'Default',
-    styleext: 'css',
-    spec: true,
-    export: false,
   };
 
   beforeEach(() => {
@@ -20,7 +16,7 @@ describe('material-nav-schematic', () => {
   });
 
   it('should create nav files and add them to module', () => {
-    const tree = runner.runSchematic('nav', { ...options }, createTestApp());
+    const tree = runner.runSchematic('nav', baseOptions, createTestApp());
     const files = tree.files;
 
     expect(files).toContain('/projects/material/src/app/foo/foo.component.css');
@@ -34,7 +30,7 @@ describe('material-nav-schematic', () => {
   });
 
   it('should add nav imports to module', () => {
-    const tree = runner.runSchematic('nav', { ...options }, createTestApp());
+    const tree = runner.runSchematic('nav', baseOptions, createTestApp());
     const moduleContent = getFileContent(tree, '/projects/material/src/app/app.module.ts');
 
     expect(moduleContent).toContain('LayoutModule');
@@ -50,4 +46,15 @@ describe('material-nav-schematic', () => {
       `MatListModule } from '@angular/material';`);
   });
 
+  it('should support passing the style extension option', () => {
+    const tree = runner.runSchematic('nav', {styleext: 'scss', ...baseOptions}, createTestApp());
+
+    expect(tree.files).toContain('/projects/material/src/app/foo/foo.component.scss');
+  });
+
+  it('should fallback to the default angular:component style extension', () => {
+    const tree = runner.runSchematic('nav', baseOptions, createTestApp({style: 'less'}));
+
+    expect(tree.files).toContain('/projects/material/src/app/foo/foo.component.less');
+  });
 });
diff --git a/src/lib/schematics/nav/schema.json b/src/lib/schematics/nav/schema.json
index ab0ab41202a2..2c73b0a35c51 100644
--- a/src/lib/schematics/nav/schema.json
+++ b/src/lib/schematics/nav/schema.json
@@ -58,8 +58,7 @@
     },
     "styleext": {
       "description": "The file extension to be used for style files.",
-      "type": "string",
-      "default": "css"
+      "type": "string"
     },
     "spec": {
       "type": "boolean",
diff --git a/src/lib/schematics/table/index.spec.ts b/src/lib/schematics/table/index.spec.ts
index 5b32f7fea18e..317ccb25794d 100644
--- a/src/lib/schematics/table/index.spec.ts
+++ b/src/lib/schematics/table/index.spec.ts
@@ -6,13 +6,9 @@ import {collectionPath, createTestApp} from '../test-setup/test-app';
 describe('material-table-schematic', () => {
   let runner: SchematicTestRunner;
 
-  const options: Schema = {
+  const baseOptions: Schema = {
     name: 'foo',
     project: 'material',
-    changeDetection: 'Default',
-    styleext: 'css',
-    spec: true,
-    export: false,
   };
 
   beforeEach(() => {
@@ -20,7 +16,7 @@ describe('material-table-schematic', () => {
   });
 
   it('should create table files and add them to module', () => {
-    const tree = runner.runSchematic('table', { ...options }, createTestApp());
+    const tree = runner.runSchematic('table', baseOptions, createTestApp());
     const files = tree.files;
 
     expect(files).toContain('/projects/material/src/app/foo/foo.component.css');
@@ -45,8 +41,20 @@ describe('material-table-schematic', () => {
     expect(componentContent).toContain('FooDataSource');
   });
 
+  it('should support passing the style extension option', () => {
+    const tree = runner.runSchematic('table', {styleext: 'scss', ...baseOptions}, createTestApp());
+
+    expect(tree.files).toContain('/projects/material/src/app/foo/foo.component.scss');
+  });
+
+  it('should fallback to the default angular:component style extension', () => {
+    const tree = runner.runSchematic('table', baseOptions, createTestApp({style: 'less'}));
+
+    expect(tree.files).toContain('/projects/material/src/app/foo/foo.component.less');
+  });
+
   it('should add table imports to module', () => {
-    const tree = runner.runSchematic('table', { ...options }, createTestApp());
+    const tree = runner.runSchematic('table', baseOptions, createTestApp());
     const moduleContent = getFileContent(tree, '/projects/material/src/app/app.module.ts');
 
     expect(moduleContent).toContain('MatTableModule');
diff --git a/src/lib/schematics/table/schema.json b/src/lib/schematics/table/schema.json
index 89a07cd18a12..d12369c29167 100644
--- a/src/lib/schematics/table/schema.json
+++ b/src/lib/schematics/table/schema.json
@@ -58,8 +58,7 @@
     },
     "styleext": {
       "description": "The file extension to be used for style files.",
-      "type": "string",
-      "default": "css"
+      "type": "string"
     },
     "spec": {
       "type": "boolean",
diff --git a/src/lib/schematics/test-setup/test-app.ts b/src/lib/schematics/test-setup/test-app.ts
index 65ce95870743..109b04cef7f4 100644
--- a/src/lib/schematics/test-setup/test-app.ts
+++ b/src/lib/schematics/test-setup/test-app.ts
@@ -16,7 +16,7 @@ export const collectionPath = join(__dirname, '..', 'collection.json');
 export const migrationCollection = join(__dirname, '..', 'migration.json');
 
 /** Create a base app used for testing. */
-export function createTestApp(): UnitTestTree {
+export function createTestApp(appOptions = {}): UnitTestTree {
   const baseRunner = new SchematicTestRunner('material-schematics', collectionPath);
 
   const workspaceTree = baseRunner.runExternalSchematic('@schematics/angular', 'workspace', {
@@ -25,12 +25,6 @@ export function createTestApp(): UnitTestTree {
     newProjectRoot: 'projects',
   });
 
-  return baseRunner.runExternalSchematic('@schematics/angular', 'application', {
-    name: 'material',
-    inlineStyle: false,
-    inlineTemplate: false,
-    routing: false,
-    style: 'scss',
-    skipTests: false,
-  }, workspaceTree);
+  return baseRunner.runExternalSchematic('@schematics/angular', 'application',
+      {...appOptions, name: 'material'}, workspaceTree);
 }
diff --git a/src/lib/schematics/tree/schema.json b/src/lib/schematics/tree/schema.json
index d76921c4a0ad..196de863380e 100644
--- a/src/lib/schematics/tree/schema.json
+++ b/src/lib/schematics/tree/schema.json
@@ -58,8 +58,7 @@
     },
     "styleext": {
       "description": "The file extension to be used for style files.",
-      "type": "string",
-      "default": "css"
+      "type": "string"
     },
     "spec": {
       "type": "boolean",
diff --git a/src/lib/schematics/utils/build-component.ts b/src/lib/schematics/utils/build-component.ts
index 88d91f48b704..f9fa09f71dd6 100644
--- a/src/lib/schematics/utils/build-component.ts
+++ b/src/lib/schematics/utils/build-component.ts
@@ -39,6 +39,7 @@ import {validateHtmlSelector, validateName} from '@schematics/angular/utility/va
 import {resolve, dirname, join} from 'path';
 import {readFileSync} from 'fs';
 import * as ts from 'typescript';
+import {determineDefaultStyleExt} from './default-style-ext';
 
 function readIntoSourceFile(host: Tree, modulePath: string): ts.SourceFile {
   const text = host.read(modulePath);
@@ -137,7 +138,7 @@ function buildSelector(options: ComponentOptions, projectPrefix: string) {
  */
 function indentTextContent(text: string, numSpaces: number): string {
   // In the Material project there should be only LF line-endings, but the schematic files
-  // are not being linted and therefore there can be also use CRLF or just CR line-endings.
+  // are not being linted and therefore there can be also CRLF or just CR line-endings.
   return text.replace(/(\r\n|\r|\n)/g, `$1${' '.repeat(numSpaces)}`);
 }
 
@@ -160,6 +161,10 @@ export function buildComponent(options: ComponentOptions,
     const schematicFilesPath = resolve(dirname(context.schematic.description.path),
         schematicFilesUrl);
 
+    if (!options.styleext) {
+      options.styleext = determineDefaultStyleExt(project);
+    }
+
     if (options.path === undefined) {
       options.path = buildDefaultPath(project);
     }
@@ -167,6 +172,7 @@ export function buildComponent(options: ComponentOptions,
     options.module = findModuleFromOptions(host, options);
 
     const parsedPath = parseName(options.path, options.name);
+
     options.name = parsedPath.name;
     options.path = parsedPath.path;
     options.selector = options.selector || buildSelector(options, project.prefix);
diff --git a/src/lib/schematics/utils/default-style-ext.ts b/src/lib/schematics/utils/default-style-ext.ts
new file mode 100644
index 000000000000..39ce0cd52510
--- /dev/null
+++ b/src/lib/schematics/utils/default-style-ext.ts
@@ -0,0 +1,31 @@
+/**
+ * @license
+ * Copyright Google LLC All Rights Reserved.
+ *
+ * Use of this source code is governed by an MIT-style license that can be
+ * found in the LICENSE file at https://angular.io/license
+ */
+
+import {WorkspaceProject} from '@schematics/angular/utility/config';
+
+/**
+ * Style extension that will be used if no default style extension for the CLI project
+ * could be determined.
+ */
+const fallbackStyleExtension = 'css';
+
+/**
+ * Determines the default style extension in the Angular CLI project by looking for the default
+ * component schematic options. This is necessary for now because when creating CLI projects,
+ * the CLI only makes the default `--style` option available for the `angular:component` schematic.
+ */
+export function determineDefaultStyleExt(project: WorkspaceProject): string | null {
+  if (project.schematics &&
+      project.schematics['@schematics/angular:component'] &&
+      project.schematics['@schematics/angular:component']['styleext']) {
+
+    return project.schematics['@schematics/angular:component']['styleext'];
+  }
+
+  return fallbackStyleExtension;
+}