diff --git a/packages/compiler-cli/src/ngtsc/transform/src/transform.ts b/packages/compiler-cli/src/ngtsc/transform/src/transform.ts
index 58704a1369..3c92295a6d 100644
--- a/packages/compiler-cli/src/ngtsc/transform/src/transform.ts
+++ b/packages/compiler-cli/src/ngtsc/transform/src/transform.ts
@@ -233,8 +233,8 @@ function transformIvySourceFile(
   // Generate the constant statements first, as they may involve adding additional imports
   // to the ImportManager.
   const constants = constantPool.statements.map(
-      stmt =>
-          translateStatement(stmt, importManager, defaultImportRecorder, ts.ScriptTarget.ES2015));
+      stmt => translateStatement(
+          stmt, importManager, defaultImportRecorder, getLocalizeCompileTarget(context)));
 
   // Preserve @fileoverview comments required by Closure, since the location might change as a
   // result of adding extra imports and constant pool statements.
@@ -250,6 +250,22 @@ function transformIvySourceFile(
   return sf;
 }
 
+/**
+ * Compute the correct target output for `$localize` messages generated by Angular
+ *
+ * In some versions of TypeScript, the transformation of synthetic `$localize` tagged template
+ * literals is broken. See https://github.com/microsoft/TypeScript/issues/38485
+ *
+ * Here we compute what the expected final output target of the compilation will
+ * be so that we can generate ES5 compliant `$localize` calls instead of relying upon TS to do the
+ * downleveling for us.
+ */
+function getLocalizeCompileTarget(context: ts.TransformationContext):
+    Exclude<ts.ScriptTarget, ts.ScriptTarget.JSON> {
+  const target = context.getCompilerOptions().target || ts.ScriptTarget.ES2015;
+  return target !== ts.ScriptTarget.JSON ? target : ts.ScriptTarget.ES2015;
+}
+
 function getFileOverviewComment(statements: ts.NodeArray<ts.Statement>): FileOverviewMeta|null {
   if (statements.length > 0) {
     const host = statements[0];
diff --git a/packages/compiler-cli/test/compliance/r3_view_compiler_i18n_spec.ts b/packages/compiler-cli/test/compliance/r3_view_compiler_i18n_spec.ts
index cfb73846a3..d7cd299ada 100644
--- a/packages/compiler-cli/test/compliance/r3_view_compiler_i18n_spec.ts
+++ b/packages/compiler-cli/test/compliance/r3_view_compiler_i18n_spec.ts
@@ -5,9 +5,9 @@
  * Use of this source code is governed by an MIT-style license that can be
  * found in the LICENSE file at https://angular.io/license
  */
-
 import {AttributeMarker} from '@angular/compiler/src/core';
 import {setup} from '@angular/compiler/test/aot/test_util';
+import * as ts from 'typescript';
 
 import {DEFAULT_INTERPOLATION_CONFIG, InterpolationConfig} from '../../../compiler/src/compiler';
 import {decimalDigest} from '../../../compiler/src/i18n/digest';
@@ -3761,6 +3761,23 @@ $` + String.raw`{$I18N_4$}:ICU:\`;
         }));
   });
 
+  describe('es5 support', () => {
+    it('should generate ES5 compliant localized messages if the target is ES5', () => {
+      const input = `
+        <div i18n="meaning:A|descA@@idA">Content A</div>
+      `;
+
+      const output = String.raw`
+        var $I18N_0$;
+        …
+        $I18N_0$ = $localize(…__makeTemplateObject([":meaning:A|descA@@idA:Content A"], [":meaning\\:A|descA@@idA:Content A"])…);
+      `;
+
+      verify(
+          input, output, {skipIdBasedCheck: true, compilerOptions: {target: ts.ScriptTarget.ES5}});
+    });
+  });
+
   describe('errors', () => {
     const verifyNestedSectionsError = (errorThrown: any, expectedErrorText: string) => {
       expect(errorThrown.ngParseErrors.length).toBe(1);