diff --git a/packages/schematics/angular/library/files/src/__entryFile__.ts.template b/packages/schematics/angular/library/files/src/__entryFile__.ts.template
index 9a737ecf69f8..1db55ca95e33 100644
--- a/packages/schematics/angular/library/files/src/__entryFile__.ts.template
+++ b/packages/schematics/angular/library/files/src/__entryFile__.ts.template
@@ -2,6 +2,5 @@
  * Public API Surface of <%= dasherize(name) %>
  */
 
-export * from './lib/<%= dasherize(name) %>.service';
 export * from './lib/<%= dasherize(name) %>';<% if (!standalone) { %>
 export * from './lib/<%= dasherize(name) %>.module';<% } %>
diff --git a/packages/schematics/angular/library/index.ts b/packages/schematics/angular/library/index.ts
index 6bee27bc9ec1..f59c8420619b 100644
--- a/packages/schematics/angular/library/index.ts
+++ b/packages/schematics/angular/library/index.ts
@@ -185,12 +185,6 @@ export default function (options: LibraryOptions): Rule {
         standalone: options.standalone,
         project: packageName,
       }),
-      schematic('service', {
-        name: options.name,
-        flat: true,
-        path: sourceDir,
-        project: packageName,
-      }),
       (_tree: Tree, context: SchematicContext) => {
         if (!options.skipPackageJson && !options.skipInstall) {
           context.addTask(new NodePackageInstallTask());
diff --git a/packages/schematics/angular/library/index_spec.ts b/packages/schematics/angular/library/index_spec.ts
index aebc908d3d90..7787571472e5 100644
--- a/packages/schematics/angular/library/index_spec.ts
+++ b/packages/schematics/angular/library/index_spec.ts
@@ -57,8 +57,6 @@ describe('Library Schematic', () => {
         '/projects/foo/src/my-index.ts',
         '/projects/foo/src/lib/foo.spec.ts',
         '/projects/foo/src/lib/foo.ts',
-        '/projects/foo/src/lib/foo.service.spec.ts',
-        '/projects/foo/src/lib/foo.service.ts',
       ]),
     );
   });
@@ -102,8 +100,6 @@ describe('Library Schematic', () => {
           '/some/other/directory/bar/src/my-index.ts',
           '/some/other/directory/bar/src/lib/foo.spec.ts',
           '/some/other/directory/bar/src/lib/foo.ts',
-          '/some/other/directory/bar/src/lib/foo.service.spec.ts',
-          '/some/other/directory/bar/src/lib/foo.service.ts',
         ]),
       );
     });
@@ -207,10 +203,8 @@ describe('Library Schematic', () => {
     const project = config.projects.pascalCasedName;
     expect(project).toBeDefined();
     expect(project.root).toEqual('projects/pascal-cased-name');
-    const svcContent = tree.readContent(
-      '/projects/pascal-cased-name/src/lib/pascal-cased-name.service.ts',
-    );
-    expect(svcContent).toMatch(/providedIn: 'root'/);
+    const svcContent = tree.readContent('/projects/pascal-cased-name/src/lib/pascal-cased-name.ts');
+    expect(svcContent).toContain('@Component');
   });
 
   describe(`update package.json`, () => {
@@ -320,7 +314,6 @@ describe('Library Schematic', () => {
 
     const pkgJsonPath = '/projects/myscope/mylib/package.json';
     expect(tree.files).toContain(pkgJsonPath);
-    expect(tree.files).toContain('/projects/myscope/mylib/src/lib/mylib.service.ts');
     expect(tree.files).toContain('/projects/myscope/mylib/src/lib/mylib.ts');
 
     const pkgJson = JSON.parse(tree.readContent(pkgJsonPath));
@@ -431,8 +424,6 @@ describe('Library Schematic', () => {
           '/projects/foo/src/lib/foo.module.ts',
           '/projects/foo/src/lib/foo.spec.ts',
           '/projects/foo/src/lib/foo.ts',
-          '/projects/foo/src/lib/foo.service.spec.ts',
-          '/projects/foo/src/lib/foo.service.ts',
         ]),
       );
     });
diff --git a/packages/schematics/angular/service/files/__name@dasherize@if-flat__/__name@dasherize__.__type@dasherize__.spec.ts.template b/packages/schematics/angular/service/files/__name@dasherize@if-flat__/__name@dasherize__.__type@dasherize__.spec.ts.template
new file mode 100644
index 000000000000..a57a4e043b4b
--- /dev/null
+++ b/packages/schematics/angular/service/files/__name@dasherize@if-flat__/__name@dasherize__.__type@dasherize__.spec.ts.template
@@ -0,0 +1,16 @@
+import { TestBed } from '@angular/core/testing';
+
+import { <%= classify(name) %><%= classify(type) %> } from './<%= dasherize(name) %><%= type ? '.' + dasherize(type) : '' %>';
+
+describe('<%= classify(name) %><%= classify(type) %>', () => {
+  let service: <%= classify(name) %><%= classify(type) %>;
+
+  beforeEach(() => {
+    TestBed.configureTestingModule({});
+    service = TestBed.inject(<%= classify(name) %><%= classify(type) %>);
+  });
+
+  it('should be created', () => {
+    expect(service).toBeTruthy();
+  });
+});
diff --git a/packages/schematics/angular/service/files/__name@dasherize@if-flat__/__name@dasherize__.service.ts.template b/packages/schematics/angular/service/files/__name@dasherize@if-flat__/__name@dasherize__.__type@dasherize__.ts.template
similarity index 64%
rename from packages/schematics/angular/service/files/__name@dasherize@if-flat__/__name@dasherize__.service.ts.template
rename to packages/schematics/angular/service/files/__name@dasherize@if-flat__/__name@dasherize__.__type@dasherize__.ts.template
index f14985e32b60..ad3685368077 100644
--- a/packages/schematics/angular/service/files/__name@dasherize@if-flat__/__name@dasherize__.service.ts.template
+++ b/packages/schematics/angular/service/files/__name@dasherize@if-flat__/__name@dasherize__.__type@dasherize__.ts.template
@@ -3,7 +3,7 @@ import { Injectable } from '@angular/core';
 @Injectable({
   providedIn: 'root'
 })
-export class <%= classify(name) %>Service {
+export class <%= classify(name) %><%= classify(type) %> {
 
   constructor() { }
 }
diff --git a/packages/schematics/angular/service/files/__name@dasherize@if-flat__/__name@dasherize__.service.spec.ts.template b/packages/schematics/angular/service/files/__name@dasherize@if-flat__/__name@dasherize__.service.spec.ts.template
deleted file mode 100644
index 2c7ab1d2bdf6..000000000000
--- a/packages/schematics/angular/service/files/__name@dasherize@if-flat__/__name@dasherize__.service.spec.ts.template
+++ /dev/null
@@ -1,16 +0,0 @@
-import { TestBed } from '@angular/core/testing';
-
-import { <%= classify(name) %>Service } from './<%= dasherize(name) %>.service';
-
-describe('<%= classify(name) %>Service', () => {
-  let service: <%= classify(name) %>Service;
-
-  beforeEach(() => {
-    TestBed.configureTestingModule({});
-    service = TestBed.inject(<%= classify(name) %>Service);
-  });
-
-  it('should be created', () => {
-    expect(service).toBeTruthy();
-  });
-});
diff --git a/packages/schematics/angular/service/index.ts b/packages/schematics/angular/service/index.ts
index 79073504978a..f832af457822 100644
--- a/packages/schematics/angular/service/index.ts
+++ b/packages/schematics/angular/service/index.ts
@@ -15,6 +15,9 @@ export default function (options: ServiceOptions): Rule {
   const flat = options.flat;
   options.flat = true;
 
+  // Schematic templates require a defined type value
+  options.type ??= '';
+
   return generateFromFiles(options, {
     'if-flat': (s: string) => (flat ? '' : s),
   });
diff --git a/packages/schematics/angular/service/index_spec.ts b/packages/schematics/angular/service/index_spec.ts
index 30e9745348dc..b5a6856e1504 100644
--- a/packages/schematics/angular/service/index_spec.ts
+++ b/packages/schematics/angular/service/index_spec.ts
@@ -46,15 +46,15 @@ describe('Service Schematic', () => {
 
     const tree = await schematicRunner.runSchematic('service', options, appTree);
     const files = tree.files;
-    expect(files).toContain('/projects/bar/src/app/foo/foo.service.spec.ts');
-    expect(files).toContain('/projects/bar/src/app/foo/foo.service.ts');
+    expect(files).toContain('/projects/bar/src/app/foo/foo.spec.ts');
+    expect(files).toContain('/projects/bar/src/app/foo/foo.ts');
   });
 
   it('service should be tree-shakeable', async () => {
     const options = { ...defaultOptions };
 
     const tree = await schematicRunner.runSchematic('service', options, appTree);
-    const content = tree.readContent('/projects/bar/src/app/foo/foo.service.ts');
+    const content = tree.readContent('/projects/bar/src/app/foo/foo.ts');
     expect(content).toMatch(/providedIn: 'root'/);
   });
 
@@ -63,8 +63,8 @@ describe('Service Schematic', () => {
 
     const tree = await schematicRunner.runSchematic('service', options, appTree);
     const files = tree.files;
-    expect(files).toContain('/projects/bar/src/app/foo/foo.service.ts');
-    expect(files).not.toContain('/projects/bar/src/app/foo/foo.service.spec.ts');
+    expect(files).toContain('/projects/bar/src/app/foo/foo.ts');
+    expect(files).not.toContain('/projects/bar/src/app/foo/foo.spec.ts');
   });
 
   it('should respect the sourceRoot value', async () => {
@@ -72,6 +72,24 @@ describe('Service Schematic', () => {
     config.projects.bar.sourceRoot = 'projects/bar/custom';
     appTree.overwrite('/angular.json', JSON.stringify(config, null, 2));
     appTree = await schematicRunner.runSchematic('service', defaultOptions, appTree);
-    expect(appTree.files).toContain('/projects/bar/custom/app/foo/foo.service.ts');
+    expect(appTree.files).toContain('/projects/bar/custom/app/foo/foo.ts');
+  });
+
+  it('should respect the type option', async () => {
+    const options = { ...defaultOptions, type: 'Service' };
+    const tree = await schematicRunner.runSchematic('service', options, appTree);
+    const content = tree.readContent('/projects/bar/src/app/foo/foo.service.ts');
+    const testContent = tree.readContent('/projects/bar/src/app/foo/foo.service.spec.ts');
+    expect(content).toContain('export class FooService');
+    expect(testContent).toContain("describe('FooService'");
+  });
+
+  it('should allow empty string in the type option', async () => {
+    const options = { ...defaultOptions, type: '' };
+    const tree = await schematicRunner.runSchematic('service', options, appTree);
+    const content = tree.readContent('/projects/bar/src/app/foo/foo.ts');
+    const testContent = tree.readContent('/projects/bar/src/app/foo/foo.spec.ts');
+    expect(content).toContain('export class Foo');
+    expect(testContent).toContain("describe('Foo'");
   });
 });
diff --git a/packages/schematics/angular/service/schema.json b/packages/schematics/angular/service/schema.json
index d5a4d0418acd..29f5474e68dd 100644
--- a/packages/schematics/angular/service/schema.json
+++ b/packages/schematics/angular/service/schema.json
@@ -39,6 +39,10 @@
       "type": "boolean",
       "description": "Skip the generation of a unit test file `spec.ts` for the service.",
       "default": false
+    },
+    "type": {
+      "type": "string",
+      "description": "Append a custom type to the service's filename. For example, if you set the type to `service`, the file will be named `my-service.service.ts`."
     }
   },
   "required": ["name", "project"]
diff --git a/packages/schematics/angular/utility/generate-from-files.ts b/packages/schematics/angular/utility/generate-from-files.ts
index 7cb1317e3771..98dd04ec4158 100644
--- a/packages/schematics/angular/utility/generate-from-files.ts
+++ b/packages/schematics/angular/utility/generate-from-files.ts
@@ -7,12 +7,14 @@
  */
 
 import {
+  FileOperator,
   Rule,
   Tree,
   apply,
   applyTemplates,
   chain,
   filter,
+  forEach,
   mergeWith,
   move,
   noop,
@@ -31,6 +33,7 @@ export interface GenerateFromFilesOptions {
   project: string;
   skipTests?: boolean;
   templateFilesDirectory?: string;
+  type?: string;
 }
 
 export function generateFromFiles(
@@ -56,6 +59,16 @@ export function generateFromFiles(
         ...options,
         ...extraTemplateValues,
       }),
+      !options.type
+        ? forEach(((file) => {
+            return file.path.includes('..')
+              ? {
+                  content: file.content,
+                  path: file.path.replace('..', '.'),
+                }
+              : file;
+          }) as FileOperator)
+        : noop(),
       move(parsedPath.path + (options.flat ? '' : '/' + strings.dasherize(options.name))),
     ]);
 
diff --git a/tests/legacy-cli/e2e/tests/build/library/setup.ts b/tests/legacy-cli/e2e/tests/build/library/setup.ts
index d47fcae5a754..13b658f345ba 100644
--- a/tests/legacy-cli/e2e/tests/build/library/setup.ts
+++ b/tests/legacy-cli/e2e/tests/build/library/setup.ts
@@ -17,7 +17,7 @@ export async function libraryConsumptionSetup(): Promise<void> {
     export class MyLibComponent {}`,
     './src/app/app.ts': `
     import { Component } from '@angular/core';
-    import { MyLibService, MyLibComponent } from 'my-lib';
+    import { MyLibComponent } from 'my-lib';
 
     @Component({
       standalone: true,
@@ -28,8 +28,7 @@ export async function libraryConsumptionSetup(): Promise<void> {
     export class App {
       title = 'test-project';
 
-      constructor(myLibService: MyLibService) {
-        console.log(myLibService);
+      constructor() {
       }
     }
   `,
diff --git a/tests/legacy-cli/e2e/tests/generate/service/service-basic.ts b/tests/legacy-cli/e2e/tests/generate/service/service-basic.ts
index 26a18fc8a9d2..a7ddb3cb8310 100644
--- a/tests/legacy-cli/e2e/tests/generate/service/service-basic.ts
+++ b/tests/legacy-cli/e2e/tests/generate/service/service-basic.ts
@@ -9,8 +9,8 @@ export default function () {
   return (
     ng('generate', 'service', 'test-service')
       .then(() => expectFileToExist(serviceDir))
-      .then(() => expectFileToExist(join(serviceDir, 'test-service.service.ts')))
-      .then(() => expectFileToExist(join(serviceDir, 'test-service.service.spec.ts')))
+      .then(() => expectFileToExist(join(serviceDir, 'test-service.ts')))
+      .then(() => expectFileToExist(join(serviceDir, 'test-service.spec.ts')))
 
       // Try to run the unit tests.
       .then(() => ng('test', '--watch=false'))
diff --git a/tests/legacy-cli/e2e/tests/misc/es2015-nometa.ts b/tests/legacy-cli/e2e/tests/misc/es2015-nometa.ts
index 463a3b971119..c8fad0e07954 100644
--- a/tests/legacy-cli/e2e/tests/misc/es2015-nometa.ts
+++ b/tests/legacy-cli/e2e/tests/misc/es2015-nometa.ts
@@ -2,10 +2,10 @@ import { prependToFile, replaceInFile } from '../../utils/fs';
 import { ng } from '../../utils/process';
 
 export default async function () {
-  await ng('generate', 'service', 'user');
+  await ng('generate', 'service', 'user-service');
 
   // Update the application to use the new service
-  await prependToFile('src/app/app.ts', "import { UserService } from './user.service';");
+  await prependToFile('src/app/app.ts', "import { UserService } from './user-service';");
 
   await replaceInFile(
     'src/app/app.ts',