diff --git a/WORKSPACE b/WORKSPACE
index de3995711c..398346ba1f 100644
--- a/WORKSPACE
+++ b/WORKSPACE
@@ -18,6 +18,7 @@ load("@build_bazel_rules_nodejs//:index.bzl", "check_bazel_version", "check_rule
 # Bazel version must be at least the following version because:
 #   - 0.26.0 managed_directories feature added which is required for nodejs rules 0.30.0
 #   - 0.27.0 has a fix for managed_directories after `rm -rf node_modules`
+#   - 2.1.0 feature added to honor .bazelignore in external repositories
 check_bazel_version(
     message = """
 You no longer need to install Bazel on your machine.
@@ -26,7 +27,7 @@ Try running `yarn bazel` instead.
     (If you did run that, check that you've got a fresh `yarn install`)
 
 """,
-    minimum_bazel_version = "2.0.0",
+    minimum_bazel_version = "2.1.0",
 )
 
 check_rules_nodejs_version(minimum_version_string = "1.3.0")
diff --git a/package.json b/package.json
index 0a865502c7..d3dd2f3cee 100644
--- a/package.json
+++ b/package.json
@@ -137,7 +137,7 @@
   "devDependencies": {
     "@angular-devkit/build-angular": "0.900.0-rc.14",
     "@angular/cli": "9.0.0-rc.14",
-    "@bazel/bazel": "2.0.0",
+    "@bazel/bazel": "2.1.0",
     "@bazel/buildifier": "^0.29.0",
     "@bazel/ibazel": "^0.11.1",
     "@types/minimist": "^1.2.0",
diff --git a/packages/bazel/src/schematics/ng-add/index.ts b/packages/bazel/src/schematics/ng-add/index.ts
index 6a3a6b5c9f..d490a5c965 100644
--- a/packages/bazel/src/schematics/ng-add/index.ts
+++ b/packages/bazel/src/schematics/ng-add/index.ts
@@ -38,7 +38,7 @@ function addDevDependenciesToPackageJson(options: Schema) {
     // TODO: use a Record<string, string> when the tsc lib setting allows us
     const devDependencies: [string, string][] = [
       ['@angular/bazel', angularCore.version],
-      ['@bazel/bazel', '2.0.0'],
+      ['@bazel/bazel', '2.1.0'],
       ['@bazel/ibazel', '0.11.1'],
       ['@bazel/karma', '1.3.0'],
       ['@bazel/protractor', '1.3.0'],
diff --git a/yarn.lock b/yarn.lock
index 79cecf59cb..b66edb76e2 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -1018,31 +1018,31 @@
     lodash "^4.17.13"
     to-fast-properties "^2.0.0"
 
-"@bazel/bazel-darwin_x64@2.0.0":
-  version "2.0.0"
-  resolved "https://registry.yarnpkg.com/@bazel/bazel-darwin_x64/-/bazel-darwin_x64-2.0.0.tgz#bd678069216dd470c6816a22c405f21e7f048038"
-  integrity sha512-I/pP+B+2xfY0g+OEpEcVnk8rizuC761pAzBOQjP3b+gz3AzeRgm05CpcSY7tfPIppMSYoy3uTZJ1XlwgUg7IQQ==
+"@bazel/bazel-darwin_x64@2.1.0":
+  version "2.1.0"
+  resolved "https://registry.yarnpkg.com/@bazel/bazel-darwin_x64/-/bazel-darwin_x64-2.1.0.tgz#c36c37080841618f142996884f07ac0e3d6a9598"
+  integrity sha512-9waB/6UT6JmQh8qxlRK9IfSY4Ef+4iGwy5eYK2hoc1zXYDnnZoZoC4eXiq68cWTpyCcT7SNGEb9B3wL5Y5rA9A==
 
-"@bazel/bazel-linux_x64@2.0.0":
-  version "2.0.0"
-  resolved "https://registry.yarnpkg.com/@bazel/bazel-linux_x64/-/bazel-linux_x64-2.0.0.tgz#2c76e3301e9178a90ec3ad00649e89b953eda0b7"
-  integrity sha512-iOr45G+511IbP7e+ISriG97WpfCAVXekTrTgL5mGg3NDBFCVNs350VquHAvmlXAoP5+IEug2pCOlkdEl4bLl8g==
+"@bazel/bazel-linux_x64@2.1.0":
+  version "2.1.0"
+  resolved "https://registry.yarnpkg.com/@bazel/bazel-linux_x64/-/bazel-linux_x64-2.1.0.tgz#3185cc3d2533641d6a539bf613247d628425ebf0"
+  integrity sha512-ag6ZwYMJblf1YuPhNRAMyCYf164mY8jhdIwPSVFI1CMiBRnSDJBkSg7rVIczPh+8Gp7TDqAno9MMTnfUXzxogA==
 
-"@bazel/bazel-win32_x64@2.0.0":
-  version "2.0.0"
-  resolved "https://registry.yarnpkg.com/@bazel/bazel-win32_x64/-/bazel-win32_x64-2.0.0.tgz#f12ac0738d2eac0fd255f099776194807cedfe50"
-  integrity sha512-5qs2qoa/paG/YYEM0yvrwuJIShoPVK2FX+Oz9jEWAQJsmU4drHA9Aq+gbBOirEFLmvYhleZ9XORCwu/5uAo8vA==
+"@bazel/bazel-win32_x64@2.1.0":
+  version "2.1.0"
+  resolved "https://registry.yarnpkg.com/@bazel/bazel-win32_x64/-/bazel-win32_x64-2.1.0.tgz#013960fe506ddb8dc08f5d54b52420c818eb4264"
+  integrity sha512-Y6cs3frmCqoAsrDmEp0msyS8VYE13JvjVoyvdIXTOh5Cc4fOeWzSPb02VS08asaV1jCnOQbv15Ud286hcxAvxg==
 
-"@bazel/bazel@2.0.0":
-  version "2.0.0"
-  resolved "https://registry.yarnpkg.com/@bazel/bazel/-/bazel-2.0.0.tgz#feb8cf5a40ea6437ef69cac2a92072118b11c230"
-  integrity sha512-KQbv5dHNSfutbhXCc3KVMuBXPpUh6Af/hT9IRIaMTuiB6Nq2gEW9Z3aNqncopdZqV848V/qYxnqPnQ+S37fMyQ==
+"@bazel/bazel@2.1.0":
+  version "2.1.0"
+  resolved "https://registry.yarnpkg.com/@bazel/bazel/-/bazel-2.1.0.tgz#25a4d3b4171bfb637374133d29878bbcb36b4c92"
+  integrity sha512-3Dhs0uJ69ImqC+VIRcifnptPXytxCNWHqyTMFYf0F5AJCVHHW7uRE0tt3Vhm5BseFpdOsjqcghgxGzR/yo10qw==
   dependencies:
     "@bazel/hide-bazel-files" latest
   optionalDependencies:
-    "@bazel/bazel-darwin_x64" "2.0.0"
-    "@bazel/bazel-linux_x64" "2.0.0"
-    "@bazel/bazel-win32_x64" "2.0.0"
+    "@bazel/bazel-darwin_x64" "2.1.0"
+    "@bazel/bazel-linux_x64" "2.1.0"
+    "@bazel/bazel-win32_x64" "2.1.0"
 
 "@bazel/buildifier-darwin_x64@0.29.0":
   version "0.29.0"