@@ -179,22 +179,25 @@ function extractProjectsConfig(config: CliConfig, tree: Tree): JsonObject {
 
       function _mapAssets(asset: string | JsonObject) {
         if (typeof asset === 'string') {
-          return { glob: asset, input: normalize('/' + appRoot + '/'), output: '/' };
+          if (tree.exists(app.root + '/' + asset)) {
+            // If it exists in the tree, then it is a file.
+            return { glob: asset, input: normalize(appRoot + '/'), output: '/' };
+          } else {
+            // If it does not exist, it is either a folder or something we can't statically know.
+            // Folders must get a recursive star glob.
+            return { glob: '**/*', input: normalize(appRoot + '/' + asset), output: '/' + asset };
+          }
         } else {
           if (asset.output) {
             return {
               glob: asset.glob,
-              input: normalize('/' + appRoot + '/' + asset.input),
-              output: normalize('/'
-                + ((asset.output as string).startsWith(outDir)
-                ? (asset.output as string).slice(outDir.length)
-                : (asset.output as string)),
-              ),
+              input: normalize(appRoot + '/' + asset.input),
+              output: normalize('/' + asset.output as string),
             };
           } else {
             return {
               glob: asset.glob,
-              input: normalize('/' + appRoot + '/' + asset.input),
+              input: normalize(appRoot + '/' + asset.input),
               output: '/',
             };
           }
 
@@ -38,6 +38,8 @@ describe('Migration to v6', () => {
           assets: [
             'assets',
             'favicon.ico',
+            { glob: '**/*', input: './assets/', output: './assets/' },
+            { glob: 'favicon.ico', input: './', output: './' },
           ],
           index: 'index.html',
           main: 'main.ts',
@@ -97,6 +99,7 @@ describe('Migration to v6', () => {
         production: true
       };
     `);
+    tree.create('/src/favicon.ico', '');
   });
 
   describe('file creation/deletion', () => {
@@ -499,8 +502,10 @@ describe('Migration to v6', () => {
         expect(build.options.scripts).toEqual([]);
         expect(build.options.styles).toEqual([{ input: 'src/styles.css' }]);
         expect(build.options.assets).toEqual([
-          { glob: 'assets', input: '/src', output: '/' },
-          { glob: 'favicon.ico', input: '/src', output: '/' },
+          { glob: '**/*', input: 'src/assets', output: '/assets' },
+          { glob: 'favicon.ico', input: 'src', output: '/' },
+          { glob: '**/*', input: 'src/assets', output: '/assets' },
+          { glob: 'favicon.ico', input: 'src', output: '/' },
         ]);
         const prodConfig = build.configurations.production;
         expect(prodConfig.outputHashing).toEqual('all');
@@ -535,8 +540,10 @@ describe('Migration to v6', () => {
         expect(test.options.scripts).toEqual([]);
         expect(test.options.styles).toEqual([{ input: 'src/styles.css' }]);
         expect(test.options.assets).toEqual([
-          { glob: 'assets', input: '/src', output: '/' },
-          { glob: 'favicon.ico', input: '/src', output: '/' },
+          { glob: '**/*', input: 'src/assets', output: '/assets' },
+          { glob: 'favicon.ico', input: 'src', output: '/' },
+          { glob: '**/*', input: 'src/assets', output: '/assets' },
+          { glob: 'favicon.ico', input: 'src', output: '/' },
         ]);
       });