diff --git a/packages/core/schematics/migrations/undecorated-classes-with-di/create_ngc_program.ts b/packages/core/schematics/migrations/undecorated-classes-with-di/create_ngc_program.ts
index 4c0f09cb51..a25fc52c0b 100644
--- a/packages/core/schematics/migrations/undecorated-classes-with-di/create_ngc_program.ts
+++ b/packages/core/schematics/migrations/undecorated-classes-with-di/create_ngc_program.ts
@@ -20,6 +20,19 @@ export function createNgcProgram(
   // NGC program. In order to ensure that the migration runs properly, we set "enableIvy" to false.
   options.enableIvy = false;
 
+  // Libraries which have been generated with CLI versions past v6.2.0, explicitly set the
+  // flat-module options in their tsconfig files. This is problematic because by default,
+  // those tsconfig files do not specify explicit source files which can be considered as
+  // entry point for the flat-module bundle. Therefore the `@angular/compiler-cli` is unable
+  // to determine the flat module entry point and throws a compile error. This is not an issue
+  // for the libraries built with `ng-packagr`, because the tsconfig files are modified in-memory
+  // to specify an explicit flat module entry-point. Our migrations don't distinguish between
+  // libraries and applications, and also don't run `ng-packagr`. To ensure that such libraries
+  // can be successfully migrated, we remove the flat-module options to eliminate the flat module
+  // entry-point requirement. More context: https://github.com/angular/angular/issues/34985.
+  options.flatModuleId = undefined;
+  options.flatModuleOutFile = undefined;
+
   const host = createHost(options);
 
   // For this migration, we never need to read resources and can just return
diff --git a/packages/core/schematics/test/undecorated_classes_with_di_migration_spec.ts b/packages/core/schematics/test/undecorated_classes_with_di_migration_spec.ts
index b39a8ae74a..997dca5b52 100644
--- a/packages/core/schematics/test/undecorated_classes_with_di_migration_spec.ts
+++ b/packages/core/schematics/test/undecorated_classes_with_di_migration_spec.ts
@@ -1473,6 +1473,40 @@ describe('Undecorated classes with DI migration', () => {
               'TypeScript program failures');
     });
 
+    // Regression test for: https://github.com/angular/angular/issues/34985.
+    it('should be able to migrate libraries with multiple source files and flat-module ' +
+           'options set',
+       async() => {
+         writeFile('/tsconfig.json', JSON.stringify({
+           compilerOptions: {
+             lib: ['es2015'],
+           },
+           angularCompilerOptions:
+               {flatModuleId: 'AUTOGENERATED', flatModuleOutFile: 'AUTOGENERATED'}
+         }));
+
+         writeFile('/second.ts', ``);
+         writeFile('/test.ts', `
+        import {Injectable, NgModule, NgZone} from '@angular/core';
+  
+        export class BaseClass {
+          constructor(zone: NgZone) {}
+        }
+  
+        @Injectable({template: ''})
+        export class MyService extends BaseClass {}
+  
+        @NgModule({providers: [MyService]})
+        export class AppModule {}
+      `);
+
+         await runMigration();
+
+         expect(errorOutput.length).toBe(0);
+         expect(warnOutput.length).toBe(0);
+         expect(tree.readContent('/test.ts')).toMatch(/@Injectable\(\)\nexport class BaseClass {/);
+       });
+
     it('should not throw if resources could not be read', async() => {
       writeFile('/index.ts', `
         import {Component, NgModule} from '@angular/core';