diff --git a/docs/api-react/schematics/component.md b/docs/api-react/schematics/component.md
index 6ebc22f7dddb4..cdc95afd924dc 100644
--- a/docs/api-react/schematics/component.md
+++ b/docs/api-react/schematics/component.md
@@ -13,14 +13,26 @@ ng generate component ...
 
 ### classComponent
 
+Alias(es): C
+
 Default: `false`
 
 Type: `boolean`
 
-Use class components instead of functional component
+Use class components instead of functional component.
+
+### directory
+
+Alias(es): d
+
+Type: `string`
+
+Create the component under this directory (can be nested).
 
 ### export
 
+Alias(es): e
+
 Default: `false`
 
 Type: `boolean`
@@ -35,14 +47,18 @@ The name of the component.
 
 ### pascalCaseFiles
 
+Alias(es): P
+
 Default: `false`
 
 Type: `boolean`
 
-Use pascal case component file name (e.g. App.tsx)
+Use pascal case component file name (e.g. App.tsx).
 
 ### project
 
+Alias(es): p
+
 Type: `string`
 
 The name of the project.
@@ -51,7 +67,7 @@ The name of the project.
 
 Type: `boolean`
 
-Generate library with routes
+Generate a library with routes.
 
 ### skipTests
 
@@ -63,6 +79,8 @@ When true, does not create "spec.ts" test files for the new component.
 
 ### style
 
+Alias(es): s
+
 Default: `css`
 
 Type: `string`
diff --git a/packages/react/src/schematics/application/application.ts b/packages/react/src/schematics/application/application.ts
index ef89b78290e66..f395de7b11331 100644
--- a/packages/react/src/schematics/application/application.ts
+++ b/packages/react/src/schematics/application/application.ts
@@ -76,22 +76,8 @@ export default function(schema: Schema): Rule {
       createApplicationFiles(options),
       updateNxJson(options),
       addProject(options),
-      options.e2eTestRunner === 'cypress'
-        ? externalSchematic('@nrwl/cypress', 'cypress-project', {
-            ...options,
-            name: options.name + '-e2e',
-            directory: options.directory,
-            project: options.projectName
-          })
-        : noop(),
-      options.unitTestRunner === 'jest'
-        ? externalSchematic('@nrwl/jest', 'jest-project', {
-            project: options.projectName,
-            supportTsx: true,
-            skipSerializers: true,
-            setupFile: 'none'
-          })
-        : noop(),
+      addCypress(options),
+      addJest(options),
       addStyledModuleDependencies(options),
       addRouting(options, context),
       addBabel(options),
@@ -215,6 +201,28 @@ function addProject(options: NormalizedSchema): Rule {
   });
 }
 
+function addCypress(options: NormalizedSchema): Rule {
+  return options.e2eTestRunner === 'cypress'
+    ? externalSchematic('@nrwl/cypress', 'cypress-project', {
+        ...options,
+        name: options.name + '-e2e',
+        directory: options.directory,
+        project: options.projectName
+      })
+    : noop();
+}
+
+function addJest(options: NormalizedSchema): Rule {
+  return options.unitTestRunner === 'jest'
+    ? externalSchematic('@nrwl/jest', 'jest-project', {
+        project: options.projectName,
+        supportTsx: true,
+        skipSerializers: true,
+        setupFile: 'none'
+      })
+    : noop();
+}
+
 function addStyledModuleDependencies(options: NormalizedSchema): Rule {
   const extraDependencies = CSS_IN_JS_DEPENDENCIES[options.styledModule];
 
diff --git a/packages/react/src/schematics/component/component.spec.ts b/packages/react/src/schematics/component/component.spec.ts
index 2813e13245ce2..c087504ae99a2 100644
--- a/packages/react/src/schematics/component/component.spec.ts
+++ b/packages/react/src/schematics/component/component.spec.ts
@@ -22,11 +22,9 @@ describe('component', () => {
       appTree
     );
 
-    expect(tree.exists('libs/my-lib/src/lib/hello/hello.tsx')).toBeTruthy();
-    expect(
-      tree.exists('libs/my-lib/src/lib/hello/hello.spec.tsx')
-    ).toBeTruthy();
-    expect(tree.exists('libs/my-lib/src/lib/hello/hello.css')).toBeTruthy();
+    expect(tree.exists('libs/my-lib/src/lib/hello.tsx')).toBeTruthy();
+    expect(tree.exists('libs/my-lib/src/lib/hello.spec.tsx')).toBeTruthy();
+    expect(tree.exists('libs/my-lib/src/lib/hello.css')).toBeTruthy();
   });
 
   it('should generate files for an app', async () => {
@@ -36,11 +34,9 @@ describe('component', () => {
       appTree
     );
 
-    expect(tree.exists('apps/my-app/src/app/hello/hello.tsx')).toBeTruthy();
-    expect(
-      tree.exists('apps/my-app/src/app/hello/hello.spec.tsx')
-    ).toBeTruthy();
-    expect(tree.exists('apps/my-app/src/app/hello/hello.css')).toBeTruthy();
+    expect(tree.exists('apps/my-app/src/app/hello.tsx')).toBeTruthy();
+    expect(tree.exists('apps/my-app/src/app/hello.spec.tsx')).toBeTruthy();
+    expect(tree.exists('apps/my-app/src/app/hello.css')).toBeTruthy();
   });
 
   describe('--export', () => {
@@ -53,7 +49,7 @@ describe('component', () => {
 
       const indexContent = tree.read('libs/my-lib/src/index.ts').toString();
 
-      expect(indexContent).toMatch(/lib\/hello\/hello/);
+      expect(indexContent).toMatch(/lib\/hello/);
     });
 
     it('should not export from an app', async () => {
@@ -65,7 +61,7 @@ describe('component', () => {
 
       const indexContent = tree.read('libs/my-lib/src/index.ts').toString();
 
-      expect(indexContent).not.toMatch(/lib\/hello\/hello/);
+      expect(indexContent).not.toMatch(/lib\/hello/);
     });
   });
 
@@ -76,11 +72,9 @@ describe('component', () => {
         { name: 'hello', project: projectName, pascalCaseFiles: true },
         appTree
       );
-      expect(tree.exists('libs/my-lib/src/lib/hello/Hello.tsx')).toBeTruthy();
-      expect(
-        tree.exists('libs/my-lib/src/lib/hello/Hello.spec.tsx')
-      ).toBeTruthy();
-      expect(tree.exists('libs/my-lib/src/lib/hello/Hello.css')).toBeTruthy();
+      expect(tree.exists('libs/my-lib/src/lib/Hello.tsx')).toBeTruthy();
+      expect(tree.exists('libs/my-lib/src/lib/Hello.spec.tsx')).toBeTruthy();
+      expect(tree.exists('libs/my-lib/src/lib/Hello.css')).toBeTruthy();
     });
   });
 
@@ -93,13 +87,11 @@ describe('component', () => {
       );
 
       expect(
-        tree.exists('libs/my-lib/src/lib/hello/hello.styled-components')
+        tree.exists('libs/my-lib/src/lib/hello.styled-components')
       ).toBeFalsy();
-      expect(tree.exists('libs/my-lib/src/lib/hello/hello.tsx')).toBeTruthy();
+      expect(tree.exists('libs/my-lib/src/lib/hello.tsx')).toBeTruthy();
 
-      const content = tree
-        .read('libs/my-lib/src/lib/hello/hello.tsx')
-        .toString();
+      const content = tree.read('libs/my-lib/src/lib/hello.tsx').toString();
       expect(content).toContain('styled-components');
       expect(content).toContain('<StyledHello>');
     });
@@ -125,13 +117,11 @@ describe('component', () => {
       );
 
       expect(
-        tree.exists('libs/my-lib/src/lib/hello/hello.@emotion/styled')
+        tree.exists('libs/my-lib/src/lib/hello.@emotion/styled')
       ).toBeFalsy();
-      expect(tree.exists('libs/my-lib/src/lib/hello/hello.tsx')).toBeTruthy();
+      expect(tree.exists('libs/my-lib/src/lib/hello.tsx')).toBeTruthy();
 
-      const content = tree
-        .read('libs/my-lib/src/lib/hello/hello.tsx')
-        .toString();
+      const content = tree.read('libs/my-lib/src/lib/hello.tsx').toString();
       expect(content).toContain('@emotion/styled');
       expect(content).toContain('<StyledHello>');
     });
@@ -157,9 +147,7 @@ describe('component', () => {
         appTree
       );
 
-      const content = tree
-        .read('libs/my-lib/src/lib/hello/hello.tsx')
-        .toString();
+      const content = tree.read('libs/my-lib/src/lib/hello.tsx').toString();
       expect(content).toContain('react-router-dom');
       expect(content).toMatch(/<Route\s*path="\/"/);
       expect(content).toMatch(/<Link\s*to="\/"/);
@@ -168,4 +156,26 @@ describe('component', () => {
       expect(packageJSON.dependencies['react-router-dom']).toBeDefined();
     });
   });
+
+  describe('--directory', () => {
+    it('should create component under the directory', async () => {
+      const tree = await runSchematic(
+        'component',
+        { name: 'hello', project: projectName, directory: 'components' },
+        appTree
+      );
+
+      expect(tree.exists('/libs/my-lib/src/lib/components/hello.tsx'));
+    });
+
+    it('should create with nested directories', async () => {
+      const tree = await runSchematic(
+        'component',
+        { name: 'helloWorld', project: projectName, directory: 'foo' },
+        appTree
+      );
+
+      expect(tree.exists('/libs/my-lib/src/lib/foo/bar/faz/hello-world.tsx'));
+    });
+  });
 });
diff --git a/packages/react/src/schematics/component/component.ts b/packages/react/src/schematics/component/component.ts
index 8bdfbd0997d98..ac342e9c4f5ba 100644
--- a/packages/react/src/schematics/component/component.ts
+++ b/packages/react/src/schematics/component/component.ts
@@ -14,7 +14,7 @@ import {
   url
 } from '@angular-devkit/schematics';
 import { Schema } from './schema';
-import { getWorkspace, names, formatFiles } from '@nrwl/workspace';
+import { formatFiles, getWorkspace, names } from '@nrwl/workspace';
 import {
   addDepsToPackageJson,
   addGlobal,
@@ -108,7 +108,11 @@ function addExportsToBarrel(options: NormalizedSchema): Rule {
               addGlobal(
                 indexSourceFile,
                 indexFilePath,
-                `export * from './lib/${options.name}/${options.fileName}';`
+                options.directory
+                  ? `export * from './lib/${options.directory}/${
+                      options.fileName
+                    }';`
+                  : `export * from './lib/${options.fileName}';`
               )
             );
           }
@@ -143,11 +147,25 @@ function normalizeOptions(
     );
   }
 
+  const slashes = ['/', '\\'];
+  slashes.forEach(s => {
+    if (componentFileName.indexOf(s) !== -1) {
+      const [name, ...rest] = componentFileName.split(s).reverse();
+      let suggestion = rest.map(x => x.toLowerCase()).join(s);
+      if (options.directory) {
+        suggestion = `${options.directory}${s}${suggestion}`;
+      }
+      throw new Error(
+        `Found "${s}" in the component name. Did you mean to use the --directory option (e.g. \`nx g c ${name} --directory ${suggestion}\`)?`
+      );
+    }
+  });
+
   return {
     ...options,
+    directory: options.directory || '',
     styledModule,
     className,
-    name: fileName,
     fileName: componentFileName,
     projectSourceRoot
   };
diff --git a/packages/react/src/schematics/component/files/__name__/__fileName__.__style__ b/packages/react/src/schematics/component/files/__directory__/__fileName__.__style__
similarity index 100%
rename from packages/react/src/schematics/component/files/__name__/__fileName__.__style__
rename to packages/react/src/schematics/component/files/__directory__/__fileName__.__style__
diff --git a/packages/react/src/schematics/component/files/__name__/__fileName__.spec.tsx__tmpl__ b/packages/react/src/schematics/component/files/__directory__/__fileName__.spec.tsx__tmpl__
similarity index 100%
rename from packages/react/src/schematics/component/files/__name__/__fileName__.spec.tsx__tmpl__
rename to packages/react/src/schematics/component/files/__directory__/__fileName__.spec.tsx__tmpl__
diff --git a/packages/react/src/schematics/component/files/__name__/__fileName__.tsx__tmpl__ b/packages/react/src/schematics/component/files/__directory__/__fileName__.tsx__tmpl__
similarity index 96%
rename from packages/react/src/schematics/component/files/__name__/__fileName__.tsx__tmpl__
rename to packages/react/src/schematics/component/files/__directory__/__fileName__.tsx__tmpl__
index 33d6845cb2b5b..adb36513c6050 100644
--- a/packages/react/src/schematics/component/files/__name__/__fileName__.tsx__tmpl__
+++ b/packages/react/src/schematics/component/files/__directory__/__fileName__.tsx__tmpl__
@@ -31,7 +31,7 @@ export class <%= className %> extends Component<<%= className %>Props> {
   render() {
     return (
       <<%= wrapper %>>
-        <h1>Welcome to <%= name %> component!</h1>
+        <p>Welcome to <%= name %> component!</p>
         <% if (routing) { %>
           <ul>
             <li><Link to="/"><%= name %> root</Link></li>
diff --git a/packages/react/src/schematics/component/schema.d.ts b/packages/react/src/schematics/component/schema.d.ts
index 6aa1bcc735626..2da269a0ef7aa 100644
--- a/packages/react/src/schematics/component/schema.d.ts
+++ b/packages/react/src/schematics/component/schema.d.ts
@@ -3,6 +3,7 @@ export interface Schema {
   project: string;
   style?: string;
   skipTests?: boolean;
+  directory?: string;
   export?: boolean;
   pascalCaseFiles?: boolean;
   classComponent?: boolean;
diff --git a/packages/react/src/schematics/component/schema.json b/packages/react/src/schematics/component/schema.json
index d43b884e6e0eb..f10126343fd16 100644
--- a/packages/react/src/schematics/component/schema.json
+++ b/packages/react/src/schematics/component/schema.json
@@ -7,6 +7,7 @@
     "project": {
       "type": "string",
       "description": "The name of the project.",
+      "alias": "p",
       "$default": {
         "$source": "projectName"
       },
@@ -24,6 +25,7 @@
     "style": {
       "description": "The file extension to be used for style files.",
       "type": "string",
+      "alias": "s",
       "default": "css",
       "x-prompt": {
         "message": "Which stylesheet format would you like to use?",
@@ -58,25 +60,33 @@
       "description": "When true, does not create \"spec.ts\" test files for the new component.",
       "default": false
     },
+    "directory": {
+      "type": "string",
+      "description": "Create the component under this directory (can be nested).",
+      "alias": "d"
+    },
     "export": {
       "type": "boolean",
-      "default": false,
       "description": "When true, the component is exported from the project index.ts (if it exists).",
+      "alias": "e",
+      "default": false,
       "x-prompt": "Should this component be exported in the project?"
     },
     "pascalCaseFiles": {
       "type": "boolean",
-      "description": "Use pascal case component file name (e.g. App.tsx)",
+      "description": "Use pascal case component file name (e.g. App.tsx).",
+      "alias": "P",
       "default": false
     },
     "classComponent": {
       "type": "boolean",
-      "description": "Use class components instead of functional component",
+      "alias": "C",
+      "description": "Use class components instead of functional component.",
       "default": false
     },
     "routing": {
       "type": "boolean",
-      "description": "Generate library with routes"
+      "description": "Generate a library with routes."
     }
   },
   "required": ["name", "project"]
diff --git a/packages/react/src/schematics/library/library.spec.ts b/packages/react/src/schematics/library/library.spec.ts
index 27cf04c961321..364f631ee4c33 100644
--- a/packages/react/src/schematics/library/library.spec.ts
+++ b/packages/react/src/schematics/library/library.spec.ts
@@ -93,11 +93,9 @@ describe('lib', () => {
       const tree = await runSchematic('lib', { name: 'myLib' }, appTree);
       expect(tree.exists(`libs/my-lib/jest.config.js`)).toBeTruthy();
       expect(tree.exists('libs/my-lib/src/index.ts')).toBeTruthy();
-      expect(tree.exists('libs/my-lib/src/lib/my-lib/my-lib.tsx')).toBeTruthy();
-      expect(tree.exists('libs/my-lib/src/lib/my-lib/my-lib.css')).toBeTruthy();
-      expect(
-        tree.exists('libs/my-lib/src/lib/my-lib/my-lib.spec.tsx')
-      ).toBeTruthy();
+      expect(tree.exists('libs/my-lib/src/lib/my-lib.tsx')).toBeTruthy();
+      expect(tree.exists('libs/my-lib/src/lib/my-lib.css')).toBeTruthy();
+      expect(tree.exists('libs/my-lib/src/lib/my-lib.spec.tsx')).toBeTruthy();
     });
   });
 
@@ -154,19 +152,13 @@ describe('lib', () => {
       expect(tree.exists(`libs/my-dir/my-lib/jest.config.js`)).toBeTruthy();
       expect(tree.exists('libs/my-dir/my-lib/src/index.ts')).toBeTruthy();
       expect(
-        tree.exists(
-          'libs/my-dir/my-lib/src/lib/my-dir-my-lib/my-dir-my-lib.tsx'
-        )
+        tree.exists('libs/my-dir/my-lib/src/lib/my-dir-my-lib.tsx')
       ).toBeTruthy();
       expect(
-        tree.exists(
-          'libs/my-dir/my-lib/src/lib/my-dir-my-lib/my-dir-my-lib.css'
-        )
+        tree.exists('libs/my-dir/my-lib/src/lib/my-dir-my-lib.css')
       ).toBeTruthy();
       expect(
-        tree.exists(
-          'libs/my-dir/my-lib/src/lib/my-dir-my-lib/my-dir-my-lib.spec.tsx'
-        )
+        tree.exists('libs/my-dir/my-lib/src/lib/my-dir-my-lib.spec.tsx')
       ).toBeTruthy();
     });
 
@@ -241,7 +233,7 @@ describe('lib', () => {
         appTree
       );
 
-      expect(result.exists('libs/my-lib/src/lib/my-lib/my-lib.scss'));
+      expect(result.exists('libs/my-lib/src/lib/my-lib.scss')).toBeTruthy();
     });
   });
 
diff --git a/packages/tao/src/commands/generate.ts b/packages/tao/src/commands/generate.ts
index 250bdda068cf9..31ec947e43ab0 100644
--- a/packages/tao/src/commands/generate.ts
+++ b/packages/tao/src/commands/generate.ts
@@ -1,25 +1,26 @@
 import {
+  coerceTypes,
+  convertAliases,
   convertToCamelCase,
   handleErrors,
-  Schema,
-  coerceTypes
+  Schema
 } from '../shared/params';
 import {
+  experimental,
   JsonObject,
   logging,
   normalize,
   schema,
   tags,
   terminal,
-  virtualFs,
-  experimental
+  virtualFs
 } from '@angular-devkit/core';
 import { DryRunEvent, HostTree, Schematic } from '@angular-devkit/schematics';
 import { NodeJsSyncHost } from '@angular-devkit/core/node';
 import { NodeWorkflow } from '@angular-devkit/schematics/tools';
 import * as inquirer from 'inquirer';
 import { logger } from '../shared/logger';
-import { printHelp, commandName } from '../shared/print-help';
+import { commandName, printHelp } from '../shared/print-help';
 import * as fs from 'fs';
 import minimist = require('minimist');
 
@@ -281,8 +282,8 @@ async function runSchematic(
           );
     const record = { loggingQueue: [] as string[], error: false };
     workflow.reporter.subscribe(createRecorder(record, logger));
-    const schematicOptions = coerceTypes(
-      opts.schematicOptions,
+    const schematicOptions = convertAliases(
+      coerceTypes(opts.schematicOptions, flattenedSchema as any),
       flattenedSchema as any
     );
     await workflow
diff --git a/packages/tao/src/shared/params.spec.ts b/packages/tao/src/shared/params.spec.ts
index 63cb76a6f7c58..3382eeab9a906 100644
--- a/packages/tao/src/shared/params.spec.ts
+++ b/packages/tao/src/shared/params.spec.ts
@@ -1,4 +1,4 @@
-import { convertToCamelCase } from './params';
+import { convertToCamelCase, convertAliases } from './params';
 
 describe('params', () => {
   describe('convertToCamelCase', () => {
@@ -32,4 +32,32 @@ describe('params', () => {
       });
     });
   });
+
+  describe('convertAliases', () => {
+    it('should replace aliases with actual keys', () => {
+      expect(
+        convertAliases(
+          { d: 'test' },
+          {
+            properties: { directory: { type: 'string', alias: 'd' } },
+            required: [],
+            description: ''
+          }
+        )
+      ).toEqual({ directory: 'test' });
+    });
+
+    it('should filter out unknown keys without alias', () => {
+      expect(
+        convertAliases(
+          { d: 'test' },
+          {
+            properties: { directory: { type: 'string' } },
+            required: [],
+            description: ''
+          }
+        )
+      ).toEqual({});
+    });
+  });
 });
diff --git a/packages/tao/src/shared/params.ts b/packages/tao/src/shared/params.ts
index 8a30a61b1fd7c..14bacb5c4ac05 100644
--- a/packages/tao/src/shared/params.ts
+++ b/packages/tao/src/shared/params.ts
@@ -48,3 +48,19 @@ export function coerceTypes(opts: { [k: string]: any }, schema: Schema) {
   });
   return opts;
 }
+
+export function convertAliases(opts: { [k: string]: any }, schema: Schema) {
+  return Object.keys(opts).reduce((acc, k) => {
+    if (schema.properties[k]) {
+      acc[k] = opts[k];
+    } else {
+      const found = Object.entries(schema.properties).find(
+        ([_, d]) => d.alias === k
+      );
+      if (found) {
+        acc[found[0]] = opts[k];
+      }
+    }
+    return acc;
+  }, {});
+}