diff --git a/packages/schematics/angular/migrations/use-application-builder/migration.ts b/packages/schematics/angular/migrations/use-application-builder/migration.ts
index dcf0526a3945..510d11bdc345 100644
--- a/packages/schematics/angular/migrations/use-application-builder/migration.ts
+++ b/packages/schematics/angular/migrations/use-application-builder/migration.ts
@@ -39,6 +39,7 @@ import {
 
 function* updateBuildTarget(
   projectName: string,
+  projectRoot: string,
   buildTarget: TargetDefinition,
   serverTarget: TargetDefinition | undefined,
   tree: Tree,
@@ -46,6 +47,8 @@ function* updateBuildTarget(
 ): Iterable<Rule> {
   // Update builder target and options
   buildTarget.builder = Builders.Application;
+  const baseServiceWorker = buildTarget.options?.['serviceWorker'];
+  const baseNgswConfigPath = buildTarget.options?.['ngswConfigPath'];
 
   for (const [, options] of allTargetOptions(buildTarget, false)) {
     if (options['index'] === '') {
@@ -57,7 +60,18 @@ function* updateBuildTarget(
     if (serverTarget && typeof options['browser'] === 'string') {
       options['server'] = dirname(options['browser']) + '/main.server.ts';
     }
-    options['serviceWorker'] = options['ngswConfigPath'] ?? options['serviceWorker'];
+    if (options['serviceWorker'] === true) {
+      // The application builder only accepts a path, while the browser builder defaults it in code.
+      options['serviceWorker'] =
+        options['ngswConfigPath'] ?? baseNgswConfigPath ?? join(projectRoot, 'ngsw-config.json');
+    } else if (
+      options['serviceWorker'] === undefined &&
+      baseServiceWorker === true &&
+      typeof options['ngswConfigPath'] === 'string'
+    ) {
+      // A configuration that only changes the config path of the service worker enabled in the base options.
+      options['serviceWorker'] = options['ngswConfigPath'];
+    }
 
     if (typeof options['polyfills'] === 'string') {
       options['polyfills'] = [options['polyfills']];
@@ -197,7 +211,9 @@ function updateProjects(tree: Tree, context: SchematicContext) {
 
       const serverTarget = project.targets.get('server');
 
-      rules.push(...updateBuildTarget(name, buildTarget, serverTarget, tree, context));
+      rules.push(
+        ...updateBuildTarget(name, project.root, buildTarget, serverTarget, tree, context),
+      );
 
       // Delete all redundant targets
       for (const [key, target] of project.targets) {
diff --git a/packages/schematics/angular/migrations/use-application-builder/migration_spec.ts b/packages/schematics/angular/migrations/use-application-builder/migration_spec.ts
index 05259962dc5d..3eded0bd8137 100644
--- a/packages/schematics/angular/migrations/use-application-builder/migration_spec.ts
+++ b/packages/schematics/angular/migrations/use-application-builder/migration_spec.ts
@@ -113,6 +113,78 @@ describe(`Migration to use the application builder`, () => {
     });
   });
 
+  it(`should replace 'serviceWorker: true' with the default 'ngsw-config.json' path`, async () => {
+    // eslint-disable-next-line @typescript-eslint/no-explicit-any
+    const workspaceContent = tree.readJson('/angular.json') as Record<string, any>;
+    workspaceContent['projects']['app']['architect']['build']['options']['serviceWorker'] = true;
+    tree.overwrite('/angular.json', JSON.stringify(workspaceContent));
+
+    const newTree = await schematicRunner.runSchematic(schematicName, {}, tree);
+    const {
+      projects: { app },
+    } = JSON.parse(newTree.readContent('/angular.json'));
+
+    const { serviceWorker, ngswConfigPath } = app.architect['build'].options;
+    expect(serviceWorker).toBe('/project/app/ngsw-config.json');
+    expect(ngswConfigPath).toBeUndefined();
+  });
+
+  it(`should replace 'serviceWorker: true' in a configuration with the base 'ngswConfigPath'`, async () => {
+    // eslint-disable-next-line @typescript-eslint/no-explicit-any
+    const workspaceContent = tree.readJson('/angular.json') as Record<string, any>;
+    const build = workspaceContent['projects']['app']['architect']['build'];
+    build['options']['ngswConfigPath'] = 'src/ngsw-config.json';
+    build['configurations'] = { production: { serviceWorker: true } };
+    tree.overwrite('/angular.json', JSON.stringify(workspaceContent));
+
+    const newTree = await schematicRunner.runSchematic(schematicName, {}, tree);
+    const {
+      projects: { app },
+    } = JSON.parse(newTree.readContent('/angular.json'));
+
+    expect(app.architect['build'].configurations.production.serviceWorker).toBe(
+      'src/ngsw-config.json',
+    );
+    expect(app.architect['build'].options.serviceWorker).toBeUndefined();
+  });
+
+  it(`should not enable the service worker when 'serviceWorker' is false`, async () => {
+    // eslint-disable-next-line @typescript-eslint/no-explicit-any
+    const workspaceContent = tree.readJson('/angular.json') as Record<string, any>;
+    const build = workspaceContent['projects']['app']['architect']['build'];
+    build['options']['serviceWorker'] = false;
+    build['options']['ngswConfigPath'] = 'src/ngsw-config.json';
+    tree.overwrite('/angular.json', JSON.stringify(workspaceContent));
+
+    const newTree = await schematicRunner.runSchematic(schematicName, {}, tree);
+    const {
+      projects: { app },
+    } = JSON.parse(newTree.readContent('/angular.json'));
+
+    const { serviceWorker, ngswConfigPath } = app.architect['build'].options;
+    expect(serviceWorker).toBeFalse();
+    expect(ngswConfigPath).toBeUndefined();
+  });
+
+  it(`should use a configuration 'ngswConfigPath' when the base options enable the service worker`, async () => {
+    // eslint-disable-next-line @typescript-eslint/no-explicit-any
+    const workspaceContent = tree.readJson('/angular.json') as Record<string, any>;
+    const build = workspaceContent['projects']['app']['architect']['build'];
+    build['options']['serviceWorker'] = true;
+    build['configurations'] = { production: { ngswConfigPath: 'src/ngsw-config.prod.json' } };
+    tree.overwrite('/angular.json', JSON.stringify(workspaceContent));
+
+    const newTree = await schematicRunner.runSchematic(schematicName, {}, tree);
+    const {
+      projects: { app },
+    } = JSON.parse(newTree.readContent('/angular.json'));
+
+    expect(app.architect['build'].options.serviceWorker).toBe('/project/app/ngsw-config.json');
+    expect(app.architect['build'].configurations.production.serviceWorker).toBe(
+      'src/ngsw-config.prod.json',
+    );
+  });
+
   it(`should remove 'builderMode' from karma options`, async () => {
     addWorkspaceTarget(tree, 'test', {
       'builder': Builders.Karma,