diff --git a/goldens/public-api/angular_devkit/schematics/index.md b/goldens/public-api/angular_devkit/schematics/index.md
index 5ef8ce4c5cd5..2d9f6a616bb1 100644
--- a/goldens/public-api/angular_devkit/schematics/index.md
+++ b/goldens/public-api/angular_devkit/schematics/index.md
@@ -145,7 +145,7 @@ export function callRule(rule: Rule, input: Tree_2 | Observable<Tree_2>, context
 export function callSource(source: Source, context: SchematicContext): Observable<Tree_2>;
 
 // @public
-export function chain(rules: Rule[]): Rule;
+export function chain(rules: Iterable<Rule> | AsyncIterable<Rule>): Rule;
 
 // @public (undocumented)
 export class CircularCollectionException extends BaseException {
diff --git a/packages/angular_devkit/schematics/src/rules/base.ts b/packages/angular_devkit/schematics/src/rules/base.ts
index a52dda34f6ee..739be3940cbf 100644
--- a/packages/angular_devkit/schematics/src/rules/base.ts
+++ b/packages/angular_devkit/schematics/src/rules/base.ts
@@ -33,9 +33,14 @@ export function empty(): Source {
 /**
  * Chain multiple rules into a single rule.
  */
-export function chain(rules: Rule[]): Rule {
-  return (tree, context) => {
-    return rules.reduce<Tree | Observable<Tree>>((acc, curr) => callRule(curr, acc, context), tree);
+export function chain(rules: Iterable<Rule> | AsyncIterable<Rule>): Rule {
+  return async (initialTree, context) => {
+    let intermediateTree: Observable<Tree> | undefined;
+    for await (const rule of rules) {
+      intermediateTree = callRule(rule, intermediateTree ?? initialTree, context);
+    }
+
+    return () => intermediateTree;
   };
 }
 
diff --git a/packages/angular_devkit/schematics/src/rules/base_spec.ts b/packages/angular_devkit/schematics/src/rules/base_spec.ts
index 8adf8c503851..9a687cb6c71e 100644
--- a/packages/angular_devkit/schematics/src/rules/base_spec.ts
+++ b/packages/angular_devkit/schematics/src/rules/base_spec.ts
@@ -17,11 +17,11 @@ import { apply, applyToSubtree, chain } from './base';
 import { callRule, callSource } from './call';
 import { move } from './move';
 
-const context: SchematicContext = ({
+const context: SchematicContext = {
   engine: null,
   debug: false,
   strategy: MergeStrategy.Default,
-} as {}) as SchematicContext;
+} as {} as SchematicContext;
 
 describe('chain', () => {
   it('works with simple rules', (done) => {
@@ -48,6 +48,60 @@ describe('chain', () => {
       .then(done, done.fail);
   });
 
+  it('works with a sync generator of rules', async () => {
+    const rulesCalled: Tree[] = [];
+
+    const tree0 = empty();
+    const tree1 = empty();
+    const tree2 = empty();
+    const tree3 = empty();
+
+    const rule0: Rule = (tree: Tree) => ((rulesCalled[0] = tree), tree1);
+    const rule1: Rule = (tree: Tree) => ((rulesCalled[1] = tree), tree2);
+    const rule2: Rule = (tree: Tree) => ((rulesCalled[2] = tree), tree3);
+
+    function* generateRules() {
+      yield rule0;
+      yield rule1;
+      yield rule2;
+    }
+
+    const result = await callRule(chain(generateRules()), tree0, context).toPromise();
+
+    expect(result).not.toBe(tree0);
+    expect(rulesCalled[0]).toBe(tree0);
+    expect(rulesCalled[1]).toBe(tree1);
+    expect(rulesCalled[2]).toBe(tree2);
+    expect(result).toBe(tree3);
+  });
+
+  it('works with an async generator of rules', async () => {
+    const rulesCalled: Tree[] = [];
+
+    const tree0 = empty();
+    const tree1 = empty();
+    const tree2 = empty();
+    const tree3 = empty();
+
+    const rule0: Rule = (tree: Tree) => ((rulesCalled[0] = tree), tree1);
+    const rule1: Rule = (tree: Tree) => ((rulesCalled[1] = tree), tree2);
+    const rule2: Rule = (tree: Tree) => ((rulesCalled[2] = tree), tree3);
+
+    async function* generateRules() {
+      yield rule0;
+      yield rule1;
+      yield rule2;
+    }
+
+    const result = await callRule(chain(generateRules()), tree0, context).toPromise();
+
+    expect(result).not.toBe(tree0);
+    expect(rulesCalled[0]).toBe(tree0);
+    expect(rulesCalled[1]).toBe(tree1);
+    expect(rulesCalled[2]).toBe(tree2);
+    expect(result).toBe(tree3);
+  });
+
   it('works with observable rules', (done) => {
     const rulesCalled: Tree[] = [];