diff --git a/lib/cli/generators/ANGULAR/angular-helpers.js b/lib/cli/generators/ANGULAR/angular-helpers.js
new file mode 100644
index 00000000000..f9013d39bc8
--- /dev/null
+++ b/lib/cli/generators/ANGULAR/angular-helpers.js
@@ -0,0 +1,37 @@
+import * as path from 'path';
+import * as fs from 'fs';
+import { readFileAsJson, writeFileAsJson } from '../../lib/helpers';
+
+export function getAngularAppTsConfigPath() {
+  const angularJson = readFileAsJson('angular.json');
+  const { defaultProject } = angularJson;
+  const tsConfigPath = angularJson.projects[defaultProject].architect.build.options.tsConfig;
+
+  if (!tsConfigPath || !fs.existsSync(path.resolve(tsConfigPath))) {
+    return false;
+  }
+  return tsConfigPath;
+}
+
+export function getAngularAppTsConfigJson() {
+  const tsConfigPath = getAngularAppTsConfigPath();
+
+  if (!tsConfigPath) {
+    return false;
+  }
+
+  return readFileAsJson(tsConfigPath);
+}
+
+function setStorybookTsconfigExtendsPath(tsconfigJson) {
+  const angularProjectTsConfigPath = getAngularAppTsConfigPath();
+  const newTsconfigJson = { ...tsconfigJson };
+  newTsconfigJson.extends = `../${angularProjectTsConfigPath}`;
+  return newTsconfigJson;
+}
+
+export function editStorybookTsConfig(tsconfigPath) {
+  let tsConfigJson = readFileAsJson(tsconfigPath);
+  tsConfigJson = setStorybookTsconfigExtendsPath(tsConfigJson);
+  writeFileAsJson(tsconfigPath, tsConfigJson);
+}
diff --git a/lib/cli/generators/ANGULAR/index.js b/lib/cli/generators/ANGULAR/index.js
index 8e660baaff7..d437358cf96 100644
--- a/lib/cli/generators/ANGULAR/index.js
+++ b/lib/cli/generators/ANGULAR/index.js
@@ -1,13 +1,17 @@
 import mergeDirs from 'merge-dirs';
 import path from 'path';
+import {
+  editStorybookTsConfig,
+  getAngularAppTsConfigJson,
+  getAngularAppTsConfigPath,
+} from './angular-helpers';
 import {
   getVersions,
   getPackageJson,
   writePackageJson,
   getBabelDependencies,
   installDependencies,
-  getAngularAppTsConfigJson,
-  writeAngularAppTsConfig,
+  writeFileAsJson,
 } from '../../lib/helpers';
 
 async function addDependencies(npmOptions) {
@@ -62,7 +66,7 @@ function editAngularAppTsConfig() {
   }
 
   tsConfigJson.exclude = [...exclude, glob];
-  writeAngularAppTsConfig(tsConfigJson);
+  writeFileAsJson(getAngularAppTsConfigPath(), tsConfigJson);
 }
 
 export default async npmOptions => {
@@ -70,4 +74,5 @@ export default async npmOptions => {
 
   await addDependencies(npmOptions);
   editAngularAppTsConfig();
+  editStorybookTsConfig(path.resolve('./.storybook/tsconfig.json'));
 };
diff --git a/lib/cli/generators/ANGULAR/template/.storybook/tsconfig.json b/lib/cli/generators/ANGULAR/template/.storybook/tsconfig.json
index f01af58ecde..28aadc68fd9 100644
--- a/lib/cli/generators/ANGULAR/template/.storybook/tsconfig.json
+++ b/lib/cli/generators/ANGULAR/template/.storybook/tsconfig.json
@@ -1,20 +1,9 @@
 {
-  "extends": "../src/tsconfig.app.json",
+  "extends": "%SET_DURING_SB_INIT%",
   "compilerOptions": {
-    "types": [
-      "node"
-    ]
+    "types": ["node"]
   },
-  "exclude": [
-    "../src/test.ts",
-    "../src/**/*.spec.ts",
-    "../projects/**/*.spec.ts"
-  ],
-  "include": [
-    "../src/**/*",
-    "../projects/**/*"
-  ],
-  "files": [
-    "./typings.d.ts"
-  ]
+  "exclude": ["../src/test.ts", "../src/**/*.spec.ts", "../projects/**/*.spec.ts"],
+  "include": ["../src/**/*", "../projects/**/*"],
+  "files": ["./typings.d.ts"]
 }
diff --git a/lib/cli/lib/helpers.js b/lib/cli/lib/helpers.js
index 2cffc0c502c..03290d91ae5 100644
--- a/lib/cli/lib/helpers.js
+++ b/lib/cli/lib/helpers.js
@@ -62,44 +62,25 @@ export function getBowerJson() {
   return JSON.parse(jsonContent);
 }
 
-export function getAngularJson() {
-  const angularJsonPath = path.resolve('angular.json');
-  if (!fs.existsSync(angularJsonPath)) {
+export function readFileAsJson(jsonPath) {
+  const filePath = path.resolve(jsonPath);
+  if (!fs.existsSync(filePath)) {
     return false;
   }
 
-  const jsonContent = fs.readFileSync(angularJsonPath, 'utf8');
+  const jsonContent = fs.readFileSync(filePath, 'utf8');
   return JSON.parse(jsonContent);
 }
 
-export function getAngularAppTsConfigPath() {
-  const angularJson = getAngularJson();
-  const { defaultProject } = angularJson;
-  const tsConfigPath = angularJson.projects[defaultProject].architect.build.options.tsConfig;
-
-  if (!tsConfigPath || !fs.existsSync(path.resolve(tsConfigPath))) {
-    return false;
-  }
-  return tsConfigPath;
-}
-
-export function getAngularAppTsConfigJson() {
-  const tsConfigPath = getAngularAppTsConfigPath();
-
-  if (!tsConfigPath || !fs.existsSync(path.resolve(tsConfigPath))) {
+export function writeFileAsJson(jsonPath, content) {
+  const filePath = path.resolve(jsonPath);
+  if (!fs.existsSync(filePath)) {
     return false;
   }
 
-  const jsonContent = fs.readFileSync(tsConfigPath, 'utf8');
-  return JSON.parse(jsonContent);
-}
-
-export function writeAngularAppTsConfig(tsConfigJson) {
-  const content = `${JSON.stringify(tsConfigJson, null, 2)}\n`;
-  const tsConfigPath = getAngularAppTsConfigPath();
-  if (tsConfigPath) {
-    fs.writeFileSync(path.resolve(tsConfigPath), content, 'utf8');
-  }
+  const jsonContent = fs.readFileSync(filePath, 'utf8');
+  fs.writeFileSync(filePath, `${JSON.stringify(content, null, 2)}\n`);
+  return true;
 }
 
 export function writePackageJson(packageJson) {