diff --git a/packages/schematics/src/collection/application/files/react/src/favicon.ico b/packages/schematics/src/collection/application/files/react/src/favicon.ico
new file mode 100644
index 0000000000..a11777cc47
Binary files /dev/null and b/packages/schematics/src/collection/application/files/react/src/favicon.ico differ
diff --git a/packages/schematics/src/collection/application/files/web-components/src/favicon.ico b/packages/schematics/src/collection/application/files/web-components/src/favicon.ico
new file mode 100644
index 0000000000..d0d1682ac8
Binary files /dev/null and b/packages/schematics/src/collection/application/files/web-components/src/favicon.ico differ
diff --git a/packages/schematics/src/collection/application/index.ts b/packages/schematics/src/collection/application/index.ts
index c42c9ade14..b73dd7d3e1 100644
--- a/packages/schematics/src/collection/application/index.ts
+++ b/packages/schematics/src/collection/application/index.ts
@@ -10,7 +10,8 @@ import {
   apply,
   template,
   move,
-  url
+  url,
+  MergeStrategy
 } from '@angular-devkit/schematics';
 import { Schema } from './schema';
 import * as ts from 'typescript';
@@ -197,7 +198,8 @@ function addApplicationFiles(options: NormalizedSchema): Rule {
         tmpl: ''
       }),
       move(options.appProjectRoot)
-    ])
+    ]),
+    MergeStrategy.Overwrite
   );
 }