diff --git a/packages/angular-cli/blueprints/module/index.js b/packages/angular-cli/blueprints/module/index.js
index 1ee4be43aea8..c82dfdfa282a 100644
--- a/packages/angular-cli/blueprints/module/index.js
+++ b/packages/angular-cli/blueprints/module/index.js
@@ -59,16 +59,18 @@ module.exports = {
 
   afterInstall: function (options) {
     // Note that `this.generatePath` already contains `this.dasherizedModuleName`
-    // So, the path will end like `name/name`, 
+    // So, the path will end like `name/name`,
     //  which is correct for `name.component.ts` created in module `name`
-    var componentPath = path.join(this.generatePath, this.dasherizedModuleName);
-    options.entity.name = path.relative(this.dynamicPath.appRoot, componentPath);
-    options.flat = true;
-    options.route = false;
-    options.inlineTemplate = false;
-    options.inlineStyle = false;
-    options.prefix = true;
-    options.spec = true;
-    return Blueprint.load(path.join(__dirname, '../component')).install(options);
+    if (this.options && this.options.routing) {
+      var componentPath = path.join(this.generatePath, this.dasherizedModuleName);
+      options.entity.name = path.relative(this.dynamicPath.appRoot, componentPath);
+      options.flat = true;
+      options.route = false;
+      options.inlineTemplate = false;
+      options.inlineStyle = false;
+      options.prefix = true;
+      options.spec = true;
+      return Blueprint.load(path.join(__dirname, '../component')).install(options);
+    }
   }
 };
diff --git a/tests/acceptance/generate-module.spec.js b/tests/acceptance/generate-module.spec.js
index fef9a2ed5091..a4e38274da4c 100644
--- a/tests/acceptance/generate-module.spec.js
+++ b/tests/acceptance/generate-module.spec.js
@@ -35,9 +35,19 @@ describe('Acceptance: ng generate module', function () {
     return ng(['generate', 'module', 'my-module']).then(() => {
       expect(existsSync(path.join(testPath, 'my-module', 'my-module.module.ts'))).to.equal(true);
       expect(existsSync(path.join(testPath, 'my-module', 'my-module.module.spec.ts'))).to.equal(false);
+      expect(existsSync(path.join(testPath, 'my-module', 'my-module.component.ts'))).to.equal(false);
     });
   });
 
+  it('ng generate module  generate routing and component files when passed flag --routing', function () {
+    return ng(['generate', 'module', 'my-module', '--routing']).then( () => {
+      expect(existsSync(path.join(testPath, 'my-module', 'my-module.module.ts'))).to.equal(true);
+      expect(existsSync(path.join(testPath, 'my-module', 'my-module-routing.module.ts'))).to.equal(true);
+      expect(existsSync(path.join(testPath, 'my-module', 'my-module.module.spec.ts'))).to.equal(false);
+      expect(existsSync(path.join(testPath, 'my-module', 'my-module.component.ts'))).to.equal(true);
+    })
+  });
+
   it('ng generate module my-module --spec', function () {
     return ng(['generate', 'module', 'my-module', '--spec']).then(() => {
       expect(existsSync(path.join(testPath, 'my-module', 'my-module.module.ts'))).to.equal(true);
@@ -57,6 +67,17 @@ describe('Acceptance: ng generate module', function () {
       ng(['generate', 'module', 'parent/child']).then(() => {
         expect(existsSync(path.join(testPath, 'parent/child', 'child.module.ts'))).to.equal(true);
         expect(existsSync(path.join(testPath, 'parent/child', 'child.module.spec.ts'))).to.equal(false);
+        expect(existsSync(path.join(testPath, 'parent/child', 'child.component.ts'))).to.equal(false);
+      })
+    );
+  });
+
+  it('ng generate module should generate parent/child module with routing and component files when passed --routing flag', function () {
+    return ng(['generate', 'module', 'parent']).then(() =>
+      ng(['generate', 'module', 'parent/child', '--routing']).then(() => {
+        expect(existsSync(path.join(testPath, 'parent/child', 'child.module.ts'))).to.equal(true);
+        expect(existsSync(path.join(testPath, 'parent/child', 'child-routing.module.ts'))).to.equal(true);
+        expect(existsSync(path.join(testPath, 'parent/child', 'child.module.spec.ts'))).to.equal(false);
         expect(existsSync(path.join(testPath, 'parent/child', 'child.component.ts'))).to.equal(true);
       })
     );
diff --git a/tests/e2e/tests/generate/module/module-basic.ts b/tests/e2e/tests/generate/module/module-basic.ts
index 071c20f3bea7..382aad79f871 100644
--- a/tests/e2e/tests/generate/module/module-basic.ts
+++ b/tests/e2e/tests/generate/module/module-basic.ts
@@ -5,17 +5,15 @@ import {expectToFail} from '../../../utils/utils';
 
 
 export default function() {
-  const moduleDir = join('src', 'app', 'test-module');
+  const moduleDir = join('src', 'app', 'test');
 
-  return ng('generate', 'module', 'test-module')
+  return ng('generate', 'module', 'test')
     .then(() => expectFileToExist(moduleDir))
-    .then(() => expectFileToExist(join(moduleDir, 'test-module.module.ts')))
-    .then(() => expectToFail(() => expectFileToExist(join(moduleDir, 'test-module.routing.ts'))))
-    .then(() => expectFileToExist(join(moduleDir, 'test-module.component.ts')))
-    .then(() => expectFileToExist(join(moduleDir, 'test-module.component.spec.ts')))
-    .then(() => expectFileToExist(join(moduleDir, 'test-module.component.html')))
-    .then(() => expectFileToExist(join(moduleDir, 'test-module.component.css')))
-    .then(() => expectFileToMatch(join(moduleDir, 'test-module.module.ts'), 'TestModuleComponent'))
+    .then(() => expectFileToExist(join(moduleDir, 'test.module.ts')))
+    .then(() => expectToFail(() => expectFileToExist(join(moduleDir, 'test-routing.module.ts'))))
+    .then(() => expectToFail(() => expectFileToExist(join(moduleDir, 'test.component.ts'))))
+    .then(() => expectToFail(() => expectFileToExist(join(moduleDir, 'test.spec.ts'))))
+    .then(() => expectFileToMatch(join(moduleDir, 'test.module.ts'), 'TestModule'))
 
     // Try to run the unit tests.
     .then(() => ng('test', '--single-run'));
diff --git a/tests/e2e/tests/generate/module/module-routing.ts b/tests/e2e/tests/generate/module/module-routing.ts
index 851d7ebdcf41..8b98e39d5918 100644
--- a/tests/e2e/tests/generate/module/module-routing.ts
+++ b/tests/e2e/tests/generate/module/module-routing.ts
@@ -1,20 +1,21 @@
 import {join} from 'path';
 import {ng} from '../../../utils/process';
 import {expectFileToExist} from '../../../utils/fs';
+import {expectToFail} from '../../../utils/utils';
 
 
 export default function() {
-  const moduleDir = join('src', 'app', 'test-module');
+  const moduleDir = join('src', 'app', 'test');
 
-  return ng('generate', 'module', 'test-module', '--routing')
+  return ng('generate', 'module', 'test', '--routing')
     .then(() => expectFileToExist(moduleDir))
-    .then(() => expectFileToExist(join(moduleDir, 'test-module.module.ts')))
-    .then(() => expectFileToExist(join(moduleDir, 'test-module-routing.module.ts')))
-    .then(() => expectFileToExist(join(moduleDir, 'test-module.component.ts')))
-    .then(() => expectFileToExist(join(moduleDir, 'test-module.component.spec.ts')))
-    .then(() => expectFileToExist(join(moduleDir, 'test-module.component.html')))
-    .then(() => expectFileToExist(join(moduleDir, 'test-module.component.css')))
-
+    .then(() => expectFileToExist(join(moduleDir, 'test.module.ts')))
+    .then(() => expectFileToExist(join(moduleDir, 'test-routing.module.ts')))
+    .then(() => expectFileToExist(join(moduleDir, 'test.component.ts')))
+    .then(() => expectFileToExist(join(moduleDir, 'test.component.spec.ts')))
+    .then(() => expectFileToExist(join(moduleDir, 'test.component.html')))
+    .then(() => expectFileToExist(join(moduleDir, 'test.component.css')))
+    .then(() => expectToFail(() => expectFileToExist(join(moduleDir, 'test.spec.ts'))))
     // Try to run the unit tests.
     .then(() => ng('test', '--single-run'));
 }