diff --git a/.gitignore b/.gitignore
index 118dc126a9..673eaa7ad2 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,6 +1,6 @@
 node_modules
 .idea
-.vscode
+/.vscode
 dist
 /build
 test
diff --git a/e2e/schematics/ng-add.test.ts b/e2e/schematics/ng-add.test.ts
index ad20490cb2..f1d0a11cf5 100644
--- a/e2e/schematics/ng-add.test.ts
+++ b/e2e/schematics/ng-add.test.ts
@@ -54,11 +54,18 @@ describe('Nrwl Convert to Nx Workspace', () => {
 
     // check that prettier config exits and that files have been moved!
     checkFilesExist(
+      '.vscode/extensions.json',
       '.prettierrc',
       'apps/proj/src/main.ts',
       'apps/proj/src/app/app.module.ts'
     );
 
+    expect(readJson('.vscode/extensions.json').recommendations).toEqual([
+      'nrwl.angular-console',
+      'angular.ng-template',
+      'esbenp.prettier-vscode'
+    ]);
+
     const appModuleContents = readFile('apps/proj/src/app/app.module.ts');
     expect(appModuleContents).toContain(`import { NxModule } from '@nrwl/nx';`);
     expect(appModuleContents).toContain(`NxModule.forRoot()`);
@@ -247,7 +254,7 @@ describe('Nrwl Convert to Nx Workspace', () => {
     checkFilesExist('dist/apps/proj/main.js');
   });
 
-  it('should generate a workspace and not change dependencies or devDependencies if they already exist', () => {
+  it('should generate a workspace and not change dependencies, devDependencies, or vscode extensions if they already exist', () => {
     // create a new AngularCLI app
     runNgNew();
     const nxVersion = '0.0.0';
@@ -262,6 +269,13 @@ describe('Nrwl Convert to Nx Workspace', () => {
     existingPackageJson.dependencies['@ngrx/router-store'] = ngrxVersion;
     existingPackageJson.devDependencies['@ngrx/store-devtools'] = ngrxVersion;
     updateFile('package.json', JSON.stringify(existingPackageJson, null, 2));
+
+    updateFile(
+      '.vscode/extensions.json',
+      JSON.stringify({
+        recommendations: ['eamodio.gitlens', 'angular.ng-template']
+      })
+    );
     // run the command
     runCLI('add @nrwl/schematics --npmScope projscope --skip-install');
     // check that dependencies and devDependencies remained the same
@@ -276,6 +290,13 @@ describe('Nrwl Convert to Nx Workspace', () => {
     expect(packageJson.devDependencies['@ngrx/store-devtools']).toEqual(
       ngrxVersion
     );
+
+    expect(readJson('.vscode/extensions.json').recommendations).toEqual([
+      'eamodio.gitlens',
+      'angular.ng-template',
+      'nrwl.angular-console',
+      'esbenp.prettier-vscode'
+    ]);
   });
 
   it('should generate a workspace from a universal cli project', () => {
diff --git a/e2e/utils.ts b/e2e/utils.ts
index 5458c9d893..9d45826aa4 100644
--- a/e2e/utils.ts
+++ b/e2e/utils.ts
@@ -1,5 +1,6 @@
 import { execSync, exec } from 'child_process';
 import { readFileSync, statSync, writeFileSync } from 'fs';
+import { ensureDirSync } from 'fs-extra';
 import * as path from 'path';
 
 const projectName: string = 'proj';
@@ -150,6 +151,7 @@ export function runCommand(command: string): string {
 }
 
 export function updateFile(f: string, content: string): void {
+  ensureDirSync(path.dirname(path.join(getCwd(), 'tmp', 'proj', f)));
   writeFileSync(path.join(getCwd(), 'tmp', 'proj', f), content);
 }
 
diff --git a/packages/schematics/migrations/migrations.json b/packages/schematics/migrations/migrations.json
index 80ac255186..196e8c119f 100644
--- a/packages/schematics/migrations/migrations.json
+++ b/packages/schematics/migrations/migrations.json
@@ -54,6 +54,11 @@
       "version": "7.5.0",
       "description": "Updated Angular CLI and Typescript",
       "factory": "./update-7-5-0/update-7-5-0"
+    },
+    "update-7.6.0": {
+      "version": "7.6.0",
+      "description": "Add VSCode Extensions",
+      "factory": "./update-7-6-0/update-7-6-0"
     }
   }
 }
diff --git a/packages/schematics/migrations/update-7-6-0/update-7-6-0.spec.ts b/packages/schematics/migrations/update-7-6-0/update-7-6-0.spec.ts
new file mode 100644
index 0000000000..30131049a0
--- /dev/null
+++ b/packages/schematics/migrations/update-7-6-0/update-7-6-0.spec.ts
@@ -0,0 +1,69 @@
+import { Tree } from '@angular-devkit/schematics';
+import { SchematicTestRunner } from '@angular-devkit/schematics/testing';
+
+import * as path from 'path';
+
+import { serializeJson } from '../../src/utils/fileutils';
+import { readJsonInTree, updateJsonInTree } from '../../src/utils/ast-utils';
+
+describe('Update 7.6.0', () => {
+  let initialTree: Tree;
+  let schematicRunner: SchematicTestRunner;
+
+  beforeEach(() => {
+    initialTree = Tree.empty();
+
+    initialTree.create(
+      'package.json',
+      serializeJson({
+        devDependencies: {
+          '@angular/cli': '7.1.0',
+          typescript: '~3.1.0'
+        }
+      })
+    );
+
+    schematicRunner = new SchematicTestRunner(
+      '@nrwl/schematics',
+      path.join(__dirname, '../migrations.json')
+    );
+  });
+
+  it('should add vscode extension recommendations', async () => {
+    const result = await schematicRunner
+      .runSchematicAsync('update-7.6.0', {}, initialTree)
+      .toPromise();
+
+    expect(readJsonInTree(result, '.vscode/extensions.json')).toEqual({
+      recommendations: [
+        'nrwl.angular-console',
+        'angular.ng-template',
+        'esbenp.prettier-vscode'
+      ]
+    });
+  });
+
+  it('should add to existing vscode extension recommendations', async () => {
+    initialTree = await schematicRunner
+      .callRule(
+        updateJsonInTree('.vscode/extensions.json', () => ({
+          recommendations: ['eamodio.gitlens', 'angular.ng-template']
+        })),
+        initialTree
+      )
+      .toPromise();
+
+    const result = await schematicRunner
+      .runSchematicAsync('update-7.6.0', {}, initialTree)
+      .toPromise();
+
+    expect(readJsonInTree(result, '.vscode/extensions.json')).toEqual({
+      recommendations: [
+        'eamodio.gitlens',
+        'angular.ng-template',
+        'nrwl.angular-console',
+        'esbenp.prettier-vscode'
+      ]
+    });
+  });
+});
diff --git a/packages/schematics/migrations/update-7-6-0/update-7-6-0.ts b/packages/schematics/migrations/update-7-6-0/update-7-6-0.ts
new file mode 100644
index 0000000000..2884a0e71f
--- /dev/null
+++ b/packages/schematics/migrations/update-7-6-0/update-7-6-0.ts
@@ -0,0 +1,25 @@
+import { Rule, chain, externalSchematic } from '@angular-devkit/schematics';
+
+import { updateJsonInTree } from '../../src/utils/ast-utils';
+
+const addExtensionRecommendations = updateJsonInTree(
+  '.vscode/extensions.json',
+  (json: { recommendations?: string[] }) => {
+    json.recommendations = json.recommendations || [];
+    [
+      'nrwl.angular-console',
+      'angular.ng-template',
+      'esbenp.prettier-vscode'
+    ].forEach(extension => {
+      if (!json.recommendations.includes(extension)) {
+        json.recommendations.push(extension);
+      }
+    });
+
+    return json;
+  }
+);
+
+export default function(): Rule {
+  return chain([addExtensionRecommendations]);
+}
diff --git a/packages/schematics/src/collection/ng-add/index.ts b/packages/schematics/src/collection/ng-add/index.ts
index 2fc5bdf499..9dde158e15 100755
--- a/packages/schematics/src/collection/ng-add/index.ts
+++ b/packages/schematics/src/collection/ng-add/index.ts
@@ -40,7 +40,7 @@ import {
 } from '../../utils/ast-utils';
 import { editTarget } from '../../utils/cli-config-utils';
 import { from } from 'rxjs';
-import { tap, mapTo } from 'rxjs/operators';
+import { tap, mapTo, concatMap } from 'rxjs/operators';
 import { NodePackageInstallTask } from '@angular-devkit/schematics/tasks';
 import { getAppModulePath } from '@schematics/angular/utility/ng-ast-utils';
 import { insertImport } from '@schematics/angular/utility/ast-utils';
@@ -585,6 +585,24 @@ function createAdditionalFiles(options: Schema): Rule {
     );
     host.create('libs/.gitkeep', '');
 
+    host = updateJsonInTree(
+      '.vscode/extensions.json',
+      (json: { recommendations?: string[] }) => {
+        json.recommendations = json.recommendations || [];
+        [
+          'nrwl.angular-console',
+          'angular.ng-template',
+          'esbenp.prettier-vscode'
+        ].forEach(extension => {
+          if (!json.recommendations.includes(extension)) {
+            json.recommendations.push(extension);
+          }
+        });
+
+        return json;
+      }
+    )(host, _context) as Tree;
+
     // if the user does not already have a prettier configuration
     // of any kind, create one
     return from(resolveUserExistingPrettierConfig()).pipe(
diff --git a/packages/schematics/src/collection/ng-new/files/__directory__/.vscode/extensions.json b/packages/schematics/src/collection/ng-new/files/__directory__/.vscode/extensions.json
new file mode 100644
index 0000000000..f04b901297
--- /dev/null
+++ b/packages/schematics/src/collection/ng-new/files/__directory__/.vscode/extensions.json
@@ -0,0 +1,7 @@
+{
+  "recommendations": [
+    "nrwl.angular-console",
+    "angular.ng-template",
+    "esbenp.prettier-vscode"
+  ]
+}
diff --git a/packages/schematics/src/collection/ng-new/ng-new.spec.ts b/packages/schematics/src/collection/ng-new/ng-new.spec.ts
index 34a81762cf..1f27dcab39 100644
--- a/packages/schematics/src/collection/ng-new/ng-new.spec.ts
+++ b/packages/schematics/src/collection/ng-new/ng-new.spec.ts
@@ -57,6 +57,24 @@ describe('app', () => {
     });
   });
 
+  it('should recommend vscode extensions', () => {
+    const tree = schematicRunner.runSchematic(
+      'ng-new',
+      { name: 'proj' },
+      projectTree
+    );
+    const recommendations = readJsonInTree<{ recommendations: string[] }>(
+      tree,
+      '/proj/.vscode/extensions.json'
+    ).recommendations;
+
+    expect(recommendations).toEqual([
+      'nrwl.angular-console',
+      'angular.ng-template',
+      'esbenp.prettier-vscode'
+    ]);
+  });
+
   it('should create a root karma configuration', () => {
     const tree = schematicRunner.runSchematic(
       'ng-new',
diff --git a/packages/schematics/src/utils/ast-utils.ts b/packages/schematics/src/utils/ast-utils.ts
index ae3e41fbee..cf43a09226 100755
--- a/packages/schematics/src/utils/ast-utils.ts
+++ b/packages/schematics/src/utils/ast-utils.ts
@@ -589,6 +589,10 @@ export function updateJsonInTree<T = any, O = T>(
   callback: (json: T) => O
 ): Rule {
   return (host: Tree): Tree => {
+    if (!host.exists(path)) {
+      host.create(path, serializeJson(callback({} as T)));
+      return host;
+    }
     host.overwrite(path, serializeJson(callback(readJsonInTree(host, path))));
     return host;
   };