diff --git a/README.md b/README.md
index 1acd5f83412c..ce0178c2d371 100644
--- a/README.md
+++ b/README.md
@@ -37,6 +37,7 @@ The generated project has dependencies that require **Node 4.x.x and NPM 3.x.x**
 * [Generating a Route](#generating-a-route)
 * [Creating a Build](#creating-a-build)
 * [Build Targets and Environment Files](#build-targets-and-environment-files)
+* [Base tag handling in index.html](#base-tag-handling-in-indexhtml)
 * [Adding extra files to the build](#adding-extra-files-to-the-build)
 * [Running Unit Tests](#running-unit-tests)
 * [Running End-to-End Tests](#running-end-to-end-tests)
@@ -152,6 +153,16 @@ You can also add your own env files other than `dev` and `prod` by doing the fol
 - add `{ NAME: 'src/environments/environment.NAME.ts' }` to the the `apps[0].environments` object in `angular-cli.json` 
 - use them by using the `--env=NAME` flag on the build/serve commands.
 
+### Base tag handling in index.html
+
+When building you can modify base tag (`<base href="/">`) in your index.html with `--base-href your-url` option.
+
+```bash
+# Sets base tag href to /myUrl/ in your index.html
+ng build --base-href /myUrl/
+ng build --bh /myUrl/
+```
+
 ### Bundling
 
 All builds make use of bundling, and using the `--prod` flag in  `ng build --prod` 
diff --git a/addon/ng2/commands/build.ts b/addon/ng2/commands/build.ts
index 423788459318..a976372531ff 100644
--- a/addon/ng2/commands/build.ts
+++ b/addon/ng2/commands/build.ts
@@ -2,13 +2,14 @@ import * as Command from 'ember-cli/lib/models/command';
 import * as WebpackBuild from '../tasks/build-webpack';
 import * as WebpackBuildWatch from '../tasks/build-webpack-watch';
 
-interface BuildOptions {
+export interface BuildOptions {
   target?: string;
   environment?: string;
   outputPath?: string;
   watch?: boolean;
   watcher?: string;
   supressSizes: boolean;
+  baseHref?: string;
 }
 
 module.exports = Command.extend({
@@ -27,7 +28,8 @@ module.exports = Command.extend({
     { name: 'output-path',    type: 'Path',  default: 'dist/',       aliases: ['o'] },
     { name: 'watch',          type: Boolean, default: false,         aliases: ['w'] },
     { name: 'watcher',        type: String },
-    { name: 'suppress-sizes', type: Boolean, default: false }
+    { name: 'suppress-sizes', type: Boolean, default: false },
+    { name: 'base-href',      type: String,  default: null, aliases: ['bh'] },
   ],
 
   run: function (commandOptions: BuildOptions) {
diff --git a/addon/ng2/commands/github-pages-deploy.ts b/addon/ng2/commands/github-pages-deploy.ts
index c0420298f83b..c8c3ec400038 100644
--- a/addon/ng2/commands/github-pages-deploy.ts
+++ b/addon/ng2/commands/github-pages-deploy.ts
@@ -11,11 +11,20 @@ import * as CreateGithubRepo from '../tasks/create-github-repo';
 import { CliConfig } from '../models/config';
 import { oneLine } from 'common-tags';
 
-const fsReadFile = Promise.denodeify(fs.readFile);
-const fsWriteFile = Promise.denodeify(fs.writeFile);
 const fsReadDir = Promise.denodeify(fs.readdir);
 const fsCopy = Promise.denodeify(fse.copy);
 
+interface GithubPagesDeployOptions {
+  message?: string;
+  target?: string;
+  environment?: string;
+  userPage?: boolean;
+  skipBuild?: boolean;
+  ghToken?: string;
+  ghUsername?: string;
+  baseHref?: string;
+}
+
 module.exports = Command.extend({
   name: 'github-pages:deploy',
   aliases: ['gh-pages:deploy'],
@@ -61,9 +70,14 @@ module.exports = Command.extend({
       type: String,
       default: '',
       description: 'Github username'
+    }, {
+      name: 'base-href',
+      type: String,
+      default: null,
+      aliases: ['bh']
     }],
 
-  run: function(options, rawArgs) {
+  run: function(options: GithubPagesDeployOptions, rawArgs) {
     const ui = this.ui;
     const root = this.project.root;
     const execOptions = {
@@ -99,10 +113,19 @@ module.exports = Command.extend({
       outputPath: outDir
     });
 
+    /**
+     * BaseHref tag setting logic:
+     * First, use --base-href flag value if provided.
+     * Else if --user-page is true, then keep baseHref default as declared in index.html.
+     * Otherwise auto-replace with `/${projectName}/`.
+     */
+    const baseHref = options.baseHref || (options.userPage ? null : `/${projectName}/`);
+
     const buildOptions = {
       target: options.target,
       environment: options.environment,
-      outputPath: outDir
+      outputPath: outDir,
+      baseHref: baseHref,
     };
 
     const createGithubRepoTask = new CreateGithubRepo({
@@ -123,7 +146,7 @@ module.exports = Command.extend({
       .then(createGitHubRepoIfNeeded)
       .then(checkoutGhPages)
       .then(copyFiles)
-      .then(updateBaseHref)
+      .then(createNotFoundPage)
       .then(addAndCommit)
       .then(returnStartingBranch)
       .then(pushToGitRepo)
@@ -191,15 +214,10 @@ module.exports = Command.extend({
         })));
     }
 
-    function updateBaseHref() {
-      if (options.userPage) { return Promise.resolve(); }
-      let indexHtml = path.join(root, 'index.html');
-      return fsReadFile(indexHtml, 'utf8')
-        .then((data) => data.replace(/<base href="\/">/g, `<base href="/${projectName}/">`))
-        .then((data) => {
-          fsWriteFile(indexHtml, data, 'utf8');
-          fsWriteFile(path.join(root, '404.html'), data, 'utf8');
-        });
+    function createNotFoundPage() {
+      const indexHtml = path.join(root, 'index.html');
+      const notFoundPage = path.join(root, '404.html');
+      return fsCopy(indexHtml, notFoundPage);
     }
 
     function addAndCommit() {
diff --git a/addon/ng2/models/webpack-build-common.ts b/addon/ng2/models/webpack-build-common.ts
index 7bc30b3eef3e..2abd5822e5b1 100644
--- a/addon/ng2/models/webpack-build-common.ts
+++ b/addon/ng2/models/webpack-build-common.ts
@@ -5,8 +5,14 @@ import * as webpack from 'webpack';
 import * as atl from 'awesome-typescript-loader';
 
 import { findLazyModules } from './find-lazy-modules';
+import { BaseHrefWebpackPlugin } from '../utilities/base-href-webpack-plugin';
 
-export function getWebpackCommonConfig(projectRoot: string, environment: string, appConfig: any) {
+export function getWebpackCommonConfig(
+  projectRoot: string,
+  environment: string,
+  appConfig: any,
+  baseHref: string
+) {
 
   const appRoot = path.resolve(projectRoot, appConfig.root);
   const appMain = path.resolve(appRoot, appConfig.main);
@@ -118,6 +124,9 @@ export function getWebpackCommonConfig(projectRoot: string, environment: string,
         template: path.resolve(appRoot, appConfig.index),
         chunksSortMode: 'dependency'
       }),
+      new BaseHrefWebpackPlugin({
+        baseHref: baseHref
+      }),
       new webpack.NormalModuleReplacementPlugin(
         // This plugin is responsible for swapping the environment files.
         // Since it takes a RegExp as first parameter, we need to escape the path.
diff --git a/addon/ng2/models/webpack-config.ts b/addon/ng2/models/webpack-config.ts
index 2da873f98df5..fd292f9aaeaa 100644
--- a/addon/ng2/models/webpack-config.ts
+++ b/addon/ng2/models/webpack-config.ts
@@ -20,14 +20,20 @@ export class NgCliWebpackConfig {
     public ngCliProject: any,
     public target: string,
     public environment: string,
-    outputDir?: string
+    outputDir?: string,
+    baseHref?: string
   ) {
     const config: CliConfig = CliConfig.fromProject();
     const appConfig = config.config.apps[0];
 
     appConfig.outDir = outputDir || appConfig.outDir;
 
-    this.baseConfig = getWebpackCommonConfig(this.ngCliProject.root, environment, appConfig);
+    this.baseConfig = getWebpackCommonConfig(
+      this.ngCliProject.root,
+      environment,
+      appConfig,
+      baseHref
+    );
     this.devConfigPartial = getWebpackDevConfigPartial(this.ngCliProject.root, appConfig);
     this.prodConfigPartial = getWebpackProdConfigPartial(this.ngCliProject.root, appConfig);
 
diff --git a/addon/ng2/tasks/build-webpack-watch.ts b/addon/ng2/tasks/build-webpack-watch.ts
index af350d17e0ba..c25f8a7d80a5 100644
--- a/addon/ng2/tasks/build-webpack-watch.ts
+++ b/addon/ng2/tasks/build-webpack-watch.ts
@@ -5,12 +5,12 @@ import * as webpack from 'webpack';
 import * as ProgressPlugin from 'webpack/lib/ProgressPlugin';
 import { NgCliWebpackConfig } from '../models/webpack-config';
 import { webpackOutputOptions } from '../models/';
-import { ServeTaskOptions } from '../commands/serve';
+import { BuildOptions } from '../commands/build';
 
 let lastHash: any = null;
 
 module.exports = Task.extend({
-  run: function(runTaskOptions: ServeTaskOptions) {
+  run: function(runTaskOptions: BuildOptions) {
 
     const project = this.cliProject;
 
@@ -20,7 +20,8 @@ module.exports = Task.extend({
       project,
       runTaskOptions.target,
       runTaskOptions.environment,
-      runTaskOptions.outputPath
+      runTaskOptions.outputPath,
+      runTaskOptions.baseHref
     ).config;
     const webpackCompiler = webpack(config);
 
diff --git a/addon/ng2/tasks/build-webpack.ts b/addon/ng2/tasks/build-webpack.ts
index e0a3316a5cd2..b8cf8fa83d7c 100644
--- a/addon/ng2/tasks/build-webpack.ts
+++ b/addon/ng2/tasks/build-webpack.ts
@@ -2,7 +2,7 @@ import * as rimraf from 'rimraf';
 import * as path from 'path';
 import * as Task from 'ember-cli/lib/models/task';
 import * as webpack from 'webpack';
-import { ServeTaskOptions } from '../commands/serve';
+import { BuildOptions } from '../commands/build';
 import { NgCliWebpackConfig } from '../models/webpack-config';
 import { webpackOutputOptions } from '../models/';
 
@@ -11,7 +11,7 @@ let lastHash: any = null;
 
 module.exports = Task.extend({
   // Options: String outputPath
-  run: function(runTaskOptions: ServeTaskOptions) {
+  run: function (runTaskOptions: BuildOptions) {
 
     const project = this.cliProject;
 
@@ -20,7 +20,8 @@ module.exports = Task.extend({
       project,
       runTaskOptions.target,
       runTaskOptions.environment,
-      runTaskOptions.outputPath
+      runTaskOptions.outputPath,
+      runTaskOptions.baseHref
     ).config;
 
     const webpackCompiler = webpack(config);
diff --git a/addon/ng2/utilities/base-href-webpack-plugin.ts b/addon/ng2/utilities/base-href-webpack-plugin.ts
new file mode 100644
index 000000000000..8466882adc53
--- /dev/null
+++ b/addon/ng2/utilities/base-href-webpack-plugin.ts
@@ -0,0 +1,39 @@
+interface BaseHrefWebpackPluginOptions {
+  baseHref: string;
+}
+
+export class BaseHrefWebpackPlugin {
+  constructor(private options: BaseHrefWebpackPluginOptions) { }
+
+  apply(compiler): void {
+    // Ignore if baseHref is not passed
+    if (!this.options.baseHref) {
+      return;
+    }
+
+    compiler.plugin('compilation', (compilation) => {
+      compilation.plugin(
+        'html-webpack-plugin-before-html-processing',
+        (htmlPluginData, callback) => {
+          // Check if base tag already exists
+          const baseTagRegex = /<base.*?>/i;
+          const baseTagMatches = htmlPluginData.html.match(baseTagRegex);
+          if (!baseTagMatches) {
+            // Insert it in top of the head if not exist
+            htmlPluginData.html = htmlPluginData.html.replace(
+              /<head>/i, '$&' + `<base href="${this.options.baseHref}">`
+            );
+          } else {
+            // Replace only href attribute if exists
+            const modifiedBaseTag = baseTagMatches[0].replace(
+              /href="\S+"/i, `href="${this.options.baseHref}"`
+            );
+            htmlPluginData.html = htmlPluginData.html.replace(baseTagRegex, modifiedBaseTag);
+          }
+
+          callback(null, htmlPluginData);
+        }
+      );
+    });
+  }
+}
diff --git a/tests/acceptance/base-href-webpack-plugin.spec.js b/tests/acceptance/base-href-webpack-plugin.spec.js
new file mode 100644
index 000000000000..58bf73442e25
--- /dev/null
+++ b/tests/acceptance/base-href-webpack-plugin.spec.js
@@ -0,0 +1,50 @@
+/*eslint-disable no-console */
+'use strict';
+
+var expect = require('chai').expect;
+var BaseHrefWebpackPlugin = require('../../addon/ng2/utilities/base-href-webpack-plugin').BaseHrefWebpackPlugin;
+
+function mockCompiler(indexHtml, callback) {
+  return {
+    plugin: function (event, compilerCallback) {
+      var compilation = {
+        plugin: function (hook, compilationCallback) {
+          var htmlPluginData = {
+            html: indexHtml
+          };
+          compilationCallback(htmlPluginData, callback);
+        }
+      };
+      compilerCallback(compilation);
+    }
+  };
+}
+
+describe('base href webpack plugin', function () {
+  it('should do nothing when baseHref is null', function () {
+    var plugin = new BaseHrefWebpackPlugin({ baseHref: null });
+
+    var compiler = mockCompiler('<body><head></head></body>', function (x, htmlPluginData) {
+      expect(htmlPluginData.html).to.equal('<body><head></head></body>');
+    });
+    plugin.apply(compiler);
+  });
+
+  it('should insert base tag when not exist', function () {
+    var plugin = new BaseHrefWebpackPlugin({ baseHref: '/' });
+
+    var compiler = mockCompiler('<body><head></head></body>', function (x, htmlPluginData) {
+      expect(htmlPluginData.html).to.equal('<body><head><base href="/"></head></body>');
+    });
+    plugin.apply(compiler);
+  });
+
+  it('should replace href attribute when base tag already exists', function () {
+    var plugin = new BaseHrefWebpackPlugin({ baseHref: '/myUrl/' });
+
+    var compiler = mockCompiler('<body><head><base href="/" target="_blank"></head></body>', function (x, htmlPluginData) {
+      expect(htmlPluginData.html).to.equal('<body><head><base href="/myUrl/" target="_blank"></head></body>');
+    });
+    plugin.apply(compiler);
+  });
+});
diff --git a/tests/acceptance/github-pages-deploy.spec.js b/tests/acceptance/github-pages-deploy.spec.js
index 3098a2cf4083..28358cc40a3a 100644
--- a/tests/acceptance/github-pages-deploy.spec.js
+++ b/tests/acceptance/github-pages-deploy.spec.js
@@ -14,7 +14,6 @@ var https = require('https');
 var SilentError = require('silent-error');
 
 const expect = chai.expect;
-const fsReadFile = Promise.denodeify(fs.readFile);
 const fsWriteFile = Promise.denodeify(fs.writeFile);
 const fsMkdir = Promise.denodeify(fs.mkdir);
 
@@ -67,7 +66,7 @@ describe('Acceptance: ng github-pages:deploy', function() {
       });
   });
 
-  it('should deploy with defaults to existing remote', function() {
+  it('should deploy with defaults to existing remote', function () {
     execStub.addExecSuccess('git status --porcelain')
       .addExecSuccess('git rev-parse --abbrev-ref HEAD', initialBranch)
       .addExecSuccess('git remote -v', remote)
@@ -78,12 +77,7 @@ describe('Acceptance: ng github-pages:deploy', function() {
       .addExecSuccess(`git push origin ${ghPagesBranch}:${ghPagesBranch}`)
       .addExecSuccess('git remote -v', remote);
 
-    return ng(['github-pages:deploy', '--skip-build'])
-      .then(() => {
-        let indexHtml = path.join(process.cwd(), 'index.html');
-        return fsReadFile(indexHtml, 'utf8');
-      })
-      .then((data) => expect(data.search(`<base href="/${project}/">`)).to.not.equal(-1));
+    return ng(['github-pages:deploy', '--skip-build']);
   });
 
   it('should deploy with changed defaults', function() {
@@ -100,13 +94,7 @@ describe('Acceptance: ng github-pages:deploy', function() {
       .addExecSuccess(`git push origin ${ghPagesBranch}:${userPageBranch}`)
       .addExecSuccess('git remote -v', remote);
 
-    return ng(['github-pages:deploy', '--skip-build', `--message=${message}`,
-                '--user-page'])
-      .then(() => {
-        let indexHtml = path.join(process.cwd(), 'index.html');
-        return fsReadFile(indexHtml, 'utf8');
-      })
-      .then((data) => expect(data.search('<base href="/">')).to.not.equal(-1));
+    return ng(['github-pages:deploy', '--skip-build', `--message=${message}`, '--user-page']);
   });
 
   it('should create branch if needed', function() {
@@ -125,12 +113,7 @@ describe('Acceptance: ng github-pages:deploy', function() {
       .addExecSuccess(`git push origin ${ghPagesBranch}:${ghPagesBranch}`)
       .addExecSuccess('git remote -v', remote);
 
-    return ng(['github-pages:deploy', '--skip-build'])
-      .then(() => {
-        let indexHtml = path.join(process.cwd(), 'index.html');
-        return fsReadFile(indexHtml, 'utf8');
-      })
-      .then((data) => expect(data.search(`<base href="/${project}/">`)).to.not.equal(-1));
+    return ng(['github-pages:deploy', '--skip-build']);
   });
 
   it('should create repo if needed', function() {
@@ -183,11 +166,6 @@ describe('Acceptance: ng github-pages:deploy', function() {
 
     return ng(['github-pages:deploy', '--skip-build', `--gh-token=${token}`,
       `--gh-username=${username}`])
-      .then(() => {
-        let indexHtml = path.join(process.cwd(), 'index.html');
-        return fsReadFile(indexHtml, 'utf8');
-      })
-      .then((data) => expect(data.search(`<base href="/${project}/">`)).to.not.equal(-1))
       .then(() => httpsStub.restore());
   });
 
diff --git a/tests/e2e/e2e_workflow.spec.js b/tests/e2e/e2e_workflow.spec.js
index a92ec8cc6501..814c39f9428f 100644
--- a/tests/e2e/e2e_workflow.spec.js
+++ b/tests/e2e/e2e_workflow.spec.js
@@ -128,6 +128,16 @@ describe('Basic end-to-end Workflow', function () {
     });
   });
 
+  it('Supports base tag modifications via `ng build --base-href`', function() {
+    this.timeout(420000);
+
+    sh.exec(`${ngBin} build --base-href /myUrl/`);
+    const indexHtmlPath = path.join(process.cwd(), 'dist/index.html'); 
+    const indexHtml = fs.readFileSync(indexHtmlPath, { encoding: 'utf8' });
+
+    expect(indexHtml).to.match(/<base href="\/myUrl\/"/);
+  });
+
   it('Can run `ng build` in created project', function () {
     this.timeout(420000);