diff --git a/packages/compiler-cli/ngcc/index.ts b/packages/compiler-cli/ngcc/index.ts
index dc63ad76b8..8b131672ca 100644
--- a/packages/compiler-cli/ngcc/index.ts
+++ b/packages/compiler-cli/ngcc/index.ts
@@ -12,6 +12,7 @@ import {EntryPointJsonProperty, EntryPointPackageJson} from './src/packages/entr
 export {ConsoleLogger, LogLevel} from './src/logging/console_logger';
 export {Logger} from './src/logging/logger';
 export {NgccOptions, mainNgcc as process} from './src/main';
+export {PathMappings} from './src/utils';
 
 export function hasBeenProcessed(packageJson: object, format: string) {
   // We are wrapping this function to hide the internal types.
diff --git a/packages/compiler-cli/ngcc/src/main.ts b/packages/compiler-cli/ngcc/src/main.ts
index acee60c7c6..c99a7bf56d 100644
--- a/packages/compiler-cli/ngcc/src/main.ts
+++ b/packages/compiler-cli/ngcc/src/main.ts
@@ -21,12 +21,12 @@ import {makeEntryPointBundle} from './packages/entry_point_bundle';
 import {EntryPointFinder} from './packages/entry_point_finder';
 import {ModuleResolver} from './packages/module_resolver';
 import {Transformer} from './packages/transformer';
+import {PathMappings} from './utils';
 import {FileWriter} from './writing/file_writer';
 import {InPlaceFileWriter} from './writing/in_place_file_writer';
 import {NewEntryPointFileWriter} from './writing/new_entry_point_file_writer';
 
 
-
 /**
  * The options to configure the ngcc compiler.
  */
@@ -58,6 +58,11 @@ export interface NgccOptions {
    * Provide a logger that will be called with log messages.
    */
   logger?: Logger;
+  /**
+   * Paths mapping configuration (`paths` and `baseUrl`), as found in `ts.CompilerOptions`.
+   * These are used to resolve paths to locally built Angular libraries.
+   */
+  pathMappings?: PathMappings;
 }
 
 const SUPPORTED_FORMATS: EntryPointFormat[] = ['esm5', 'esm2015'];
@@ -70,12 +75,12 @@ const SUPPORTED_FORMATS: EntryPointFormat[] = ['esm5', 'esm2015'];
  *
  * @param options The options telling ngcc what to compile and how.
  */
-export function mainNgcc({basePath, targetEntryPointPath,
-                          propertiesToConsider = SUPPORTED_FORMAT_PROPERTIES,
-                          compileAllFormats = true, createNewEntryPointFormats = false,
-                          logger = new ConsoleLogger(LogLevel.info)}: NgccOptions): void {
+export function mainNgcc(
+    {basePath, targetEntryPointPath, propertiesToConsider = SUPPORTED_FORMAT_PROPERTIES,
+     compileAllFormats = true, createNewEntryPointFormats = false,
+     logger = new ConsoleLogger(LogLevel.info), pathMappings}: NgccOptions): void {
   const transformer = new Transformer(logger);
-  const moduleResolver = new ModuleResolver();
+  const moduleResolver = new ModuleResolver(pathMappings);
   const host = new DependencyHost(moduleResolver);
   const resolver = new DependencyResolver(logger, host);
   const finder = new EntryPointFinder(logger, resolver);
@@ -92,8 +97,8 @@ export function mainNgcc({basePath, targetEntryPointPath,
     return;
   }
 
-  const {entryPoints} =
-      finder.findEntryPoints(AbsoluteFsPath.from(basePath), absoluteTargetEntryPointPath);
+  const {entryPoints} = finder.findEntryPoints(
+      AbsoluteFsPath.from(basePath), absoluteTargetEntryPointPath, pathMappings);
 
   if (absoluteTargetEntryPointPath && entryPoints.length === 0) {
     markNonAngularPackageAsProcessed(absoluteTargetEntryPointPath, propertiesToConsider);
@@ -132,7 +137,8 @@ export function mainNgcc({basePath, targetEntryPointPath,
       // the property as processed even if its underlying format has been built already.
       if (!compiledFormats.has(formatPath) && (compileAllFormats || isFirstFormat)) {
         const bundle = makeEntryPointBundle(
-            entryPoint.path, formatPath, entryPoint.typings, isCore, property, format, processDts);
+            entryPoint.path, formatPath, entryPoint.typings, isCore, property, format, processDts,
+            pathMappings);
         if (bundle) {
           logger.info(`Compiling ${entryPoint.name} : ${property} as ${format}`);
           const transformedFiles = transformer.transform(bundle);
diff --git a/packages/compiler-cli/ngcc/src/packages/entry_point_bundle.ts b/packages/compiler-cli/ngcc/src/packages/entry_point_bundle.ts
index 0130d52677..778577e305 100644
--- a/packages/compiler-cli/ngcc/src/packages/entry_point_bundle.ts
+++ b/packages/compiler-cli/ngcc/src/packages/entry_point_bundle.ts
@@ -9,11 +9,11 @@ import {resolve} from 'canonical-path';
 import * as ts from 'typescript';
 
 import {AbsoluteFsPath} from '../../../src/ngtsc/path';
+import {PathMappings} from '../utils';
+
 import {BundleProgram, makeBundleProgram} from './bundle_program';
 import {EntryPointFormat, EntryPointJsonProperty} from './entry_point';
 
-
-
 /**
  * A bundle of files and paths (and TS programs) that correspond to a particular
  * format of a package entry-point.
@@ -39,13 +39,13 @@ export interface EntryPointBundle {
  */
 export function makeEntryPointBundle(
     entryPointPath: string, formatPath: string, typingsPath: string, isCore: boolean,
-    formatProperty: EntryPointJsonProperty, format: EntryPointFormat,
-    transformDts: boolean): EntryPointBundle|null {
+    formatProperty: EntryPointJsonProperty, format: EntryPointFormat, transformDts: boolean,
+    pathMappings?: PathMappings): EntryPointBundle|null {
   // Create the TS program and necessary helpers.
   const options: ts.CompilerOptions = {
     allowJs: true,
     maxNodeModuleJsDepth: Infinity,
-    rootDir: entryPointPath,
+    rootDir: entryPointPath, ...pathMappings
   };
   const host = ts.createCompilerHost(options);
   const rootDirs = [AbsoluteFsPath.from(entryPointPath)];
diff --git a/packages/compiler-cli/ngcc/src/packages/entry_point_finder.ts b/packages/compiler-cli/ngcc/src/packages/entry_point_finder.ts
index bbb2f51778..2daa002159 100644
--- a/packages/compiler-cli/ngcc/src/packages/entry_point_finder.ts
+++ b/packages/compiler-cli/ngcc/src/packages/entry_point_finder.ts
@@ -7,9 +7,11 @@
  */
 import * as path from 'canonical-path';
 import * as fs from 'fs';
+import {join, resolve} from 'path';
 
 import {AbsoluteFsPath} from '../../../src/ngtsc/path';
 import {Logger} from '../logging/logger';
+import {PathMappings} from '../utils';
 
 import {DependencyResolver, SortedEntryPointsInfo} from './dependency_resolver';
 import {EntryPoint, getEntryPointInfo} from './entry_point';
@@ -21,15 +23,51 @@ export class EntryPointFinder {
    * Search the given directory, and sub-directories, for Angular package entry points.
    * @param sourceDirectory An absolute path to the directory to search for entry points.
    */
-  findEntryPoints(sourceDirectory: AbsoluteFsPath, targetEntryPointPath?: AbsoluteFsPath):
-      SortedEntryPointsInfo {
-    const unsortedEntryPoints = this.walkDirectoryForEntryPoints(sourceDirectory);
+  findEntryPoints(
+      sourceDirectory: AbsoluteFsPath, targetEntryPointPath?: AbsoluteFsPath,
+      pathMappings?: PathMappings): SortedEntryPointsInfo {
+    const basePaths = this.getBasePaths(sourceDirectory, pathMappings);
+    const unsortedEntryPoints = basePaths.reduce<EntryPoint[]>(
+        (entryPoints, basePath) => entryPoints.concat(this.walkDirectoryForEntryPoints(basePath)),
+        []);
     const targetEntryPoint = targetEntryPointPath ?
         unsortedEntryPoints.find(entryPoint => entryPoint.path === targetEntryPointPath) :
         undefined;
     return this.resolver.sortEntryPointsByDependency(unsortedEntryPoints, targetEntryPoint);
   }
 
+  /**
+   * Extract all the base-paths that we need to search for entry-points.
+   *
+   * This always contains the standard base-path (`sourceDirectory`).
+   * But it also parses the `paths` mappings object to guess additional base-paths.
+   *
+   * For example:
+   *
+   * ```
+   * getBasePaths('/node_modules', {baseUrl: '/dist', paths: {'*': ['lib/*', 'lib/generated/*']}})
+   * > ['/node_modules', '/dist/lib']
+   * ```
+   *
+   * Notice that `'/dist'` is not included as there is no `'*'` path,
+   * and `'/dist/lib/generated'` is not included as it is covered by `'/dist/lib'`.
+   *
+   * @param sourceDirectory The standard base-path (e.g. node_modules).
+   * @param pathMappings Path mapping configuration, from which to extract additional base-paths.
+   */
+  private getBasePaths(sourceDirectory: AbsoluteFsPath, pathMappings?: PathMappings):
+      AbsoluteFsPath[] {
+    const basePaths = [sourceDirectory];
+    if (pathMappings) {
+      const baseUrl = AbsoluteFsPath.from(resolve(pathMappings.baseUrl));
+      values(pathMappings.paths).forEach(paths => paths.forEach(path => {
+        basePaths.push(AbsoluteFsPath.fromUnchecked(join(baseUrl, extractPathPrefix(path))));
+      }));
+    }
+    basePaths.sort();  // Get the paths in order with the shorter ones first.
+    return basePaths.filter(removeDeeperPaths);
+  }
+
   /**
    * Look for entry points that need to be compiled, starting at the source directory.
    * The function will recurse into directories that start with `@...`, e.g. `@angular/...`.
@@ -117,3 +155,35 @@ export class EntryPointFinder {
         });
   }
 }
+
+/**
+ * Extract everything in the `path` up to the first `*`.
+ * @param path The path to parse.
+ * @returns The extracted prefix.
+ */
+function extractPathPrefix(path: string) {
+  return path.split('*', 1)[0];
+}
+
+/**
+ * A filter function that removes paths that are already covered by higher paths.
+ *
+ * @param value The current path.
+ * @param index The index of the current path.
+ * @param array The array of paths (sorted alphabetically).
+ * @returns true if this path is not already covered by a previous path.
+ */
+function removeDeeperPaths(value: AbsoluteFsPath, index: number, array: AbsoluteFsPath[]) {
+  for (let i = 0; i < index; i++) {
+    if (value.startsWith(array[i])) return false;
+  }
+  return true;
+}
+
+/**
+ * Extract all the values (not keys) from an object.
+ * @param obj The object to process.
+ */
+function values<T>(obj: {[key: string]: T}): T[] {
+  return Object.keys(obj).map(key => obj[key]);
+}
diff --git a/packages/compiler-cli/ngcc/test/integration/ngcc_spec.ts b/packages/compiler-cli/ngcc/test/integration/ngcc_spec.ts
index 6500dc9fc9..1ad2c9f6aa 100644
--- a/packages/compiler-cli/ngcc/test/integration/ngcc_spec.ts
+++ b/packages/compiler-cli/ngcc/test/integration/ngcc_spec.ts
@@ -309,6 +309,24 @@ describe('ngcc main()', () => {
       expect(logger.logs.info).toContain(['Compiling @angular/common/http : esm2015 as esm2015']);
     });
   });
+
+  describe('with pathMappings', () => {
+    it('should find and compile packages accessible via the pathMappings', () => {
+      mainNgcc({
+        basePath: '/node_modules',
+        propertiesToConsider: ['es2015'],
+        pathMappings: {paths: {'*': ['dist/*']}, baseUrl: '/'},
+      });
+      expect(loadPackage('@angular/core').__processed_by_ivy_ngcc__).toEqual({
+        es2015: '0.0.0-PLACEHOLDER',
+        typings: '0.0.0-PLACEHOLDER',
+      });
+      expect(loadPackage('local-package', '/dist').__processed_by_ivy_ngcc__).toEqual({
+        es2015: '0.0.0-PLACEHOLDER',
+        typings: '0.0.0-PLACEHOLDER',
+      });
+    });
+  });
 });
 
 
@@ -321,10 +339,23 @@ function createMockFileSystem() {
       'package.json': '{"name": "test-package", "es2015": "./index.js", "typings": "./index.d.ts"}',
       // no metadata.json file so not compiled by Angular.
       'index.js':
-          'import {AppModule} from "@angular/common"; export class MyApp extends AppModule;',
+          'import {AppModule} from "@angular/common"; export class MyApp extends AppModule {};',
       'index.d.ts':
           'import {AppModule} from "@angular/common"; export declare class MyApp extends AppModule;',
-    }
+    },
+    '/dist/local-package': {
+      'package.json':
+          '{"name": "local-package", "es2015": "./index.js", "typings": "./index.d.ts"}',
+      'index.metadata.json': 'DUMMY DATA',
+      'index.js': `
+          import {Component} from '@angular/core';
+          export class AppComponent {};
+          AppComponent.decorators = [
+            { type: Component, args: [{selector: 'app', template: '<h2>Hello</h2>'}] }
+          ];`,
+      'index.d.ts': `
+          export declare class AppComponent {};`,
+    },
   });
 }
 
@@ -367,6 +398,6 @@ interface Directory {
   [pathSegment: string]: string|Directory;
 }
 
-function loadPackage(packageName: string): EntryPointPackageJson {
-  return JSON.parse(readFileSync(`/node_modules/${packageName}/package.json`, 'utf8'));
+function loadPackage(packageName: string, basePath = '/node_modules'): EntryPointPackageJson {
+  return JSON.parse(readFileSync(`${basePath}/${packageName}/package.json`, 'utf8'));
 }