diff --git a/.circleci/config.yml b/.circleci/config.yml
index 1e141cad92..65be51b2bd 100644
--- a/.circleci/config.yml
+++ b/.circleci/config.yml
@@ -29,7 +29,7 @@ var_4_win: &cache_key_win_fallback v5-angular-win-node-12.0-
 
 # Cache key for the Material unit tests job. **Note** when updating the SHA in the cache keys,
 # also update the SHA for the "MATERIAL_REPO_COMMIT" environment variable.
-var_5: &material_unit_tests_cache_key v4-angular-material-361d1cf800641a6e77321c5d43d97ed854310b9a
+var_5: &material_unit_tests_cache_key v4-angular-material-d4bf7be64b03a2cfdaaf6f045cfc7c72de6470c2
 var_6: &material_unit_tests_cache_key_fallback v4-angular-material-
 
 # Workspace initially persisted by the `setup` job, and then enhanced by `build-npm-packages` and
diff --git a/.circleci/env.sh b/.circleci/env.sh
index 88c46dc70e..19de7c0f75 100755
--- a/.circleci/env.sh
+++ b/.circleci/env.sh
@@ -84,7 +84,7 @@ setPublicVar MATERIAL_REPO_TMP_DIR "/tmp/material2"
 setPublicVar MATERIAL_REPO_URL "https://github.com/angular/material2.git"
 setPublicVar MATERIAL_REPO_BRANCH "master"
 # **NOTE**: When updating the commit SHA, also update the cache key in the CircleCI "config.yml".
-setPublicVar MATERIAL_REPO_COMMIT "361d1cf800641a6e77321c5d43d97ed854310b9a"
+setPublicVar MATERIAL_REPO_COMMIT "d4bf7be64b03a2cfdaaf6f045cfc7c72de6470c2"
 
 # Source `$BASH_ENV` to make the variables available immediately.
 source $BASH_ENV;
diff --git a/scripts/ci/run_angular_material_unit_tests.sh b/scripts/ci/run_angular_material_unit_tests.sh
index 2f6f2e709b..510bf00fcf 100755
--- a/scripts/ci/run_angular_material_unit_tests.sh
+++ b/scripts/ci/run_angular_material_unit_tests.sh
@@ -14,13 +14,13 @@ angular_dir=$(pwd)
 sed -i'.bak' "s/\(_ENABLE_NG_TYPE_CHECKING = \)True/\1False/g" ${MATERIAL_REPO_TMP_DIR}/tools/defaults.bzl
 sed -i'.bak' "s/\(\"ivyTemplateTypeCheck\": \)False/\1True/g" dist/packages-dist-ivy-aot/bazel/src/ng_module.bzl
 
-# The components repository updated to rules_nodejs#0.38.0 before Angular Bazel did. To do this,
-# the `@angular/bazel` v0.38.0 compatibility changes were patched on postinstall. This now
+# The components repository updated to rules_nodejs#0.38.2 before Angular Bazel did. To do this,
+# the `@angular/bazel` v0.38.2 compatibility changes were patched on postinstall. This now
 # conflicts because we install a `@angular/bazel` version that already includes these compatibility
 # changes. This would result in the patch being a noop for which the `patch` command throws.
 # To work around this temporarily, we just ensure that the patch does not run on postinstall.
 # TODO: remove this once Angular components no longer needs the postinstall patch.
-sed -i -r "s/shelljs.cat.+angular_bazel_0\.38\.0\.patch.+;//g" ${MATERIAL_REPO_TMP_DIR}/tools/bazel/postinstall-patches.js
+sed -i -r "s/shelljs.cat.+angular_bazel_0\.38\.2\.patch.+;//g" ${MATERIAL_REPO_TMP_DIR}/tools/bazel/postinstall-patches.js
 
 # Switch into Material directory.
 cd ${MATERIAL_REPO_TMP_DIR}