diff --git a/README.md b/README.md
index bab0ae1e96f54c9aabdab2ff3b932c1e338e5fb5..bccbd38e333f73c262f250268b3e8398355c1372 100644
--- a/README.md
+++ b/README.md
@@ -48,12 +48,12 @@ Inside that directory, it will generate the initial project structure and instal
 my-app/
   README.md
   index.html
+  favicon.ico
   node_modules/
   package.json
   src/
     App.css
     App.js
-    favicon.ico
     index.css
     index.js
     logo.svg
diff --git a/config/webpack.config.dev.js b/config/webpack.config.dev.js
index 45533b35c090b873b382fdd0d7e73d6b8be8ee6d..40aec9d8735d92287e6ebd9b3d74596aeb7e79f6 100644
--- a/config/webpack.config.dev.js
+++ b/config/webpack.config.dev.js
@@ -23,6 +23,7 @@ if (process.argv[2] === '--debug-template') {
 var srcPath = path.resolve(__dirname, relativePath, 'src');
 var nodeModulesPath = path.join(__dirname, '..', 'node_modules');
 var indexHtmlPath = path.resolve(__dirname, relativePath, 'index.html');
+var faviconPath = path.resolve(__dirname, relativePath, 'favicon.ico');
 var buildPath = path.join(__dirname, isInNodeModules ? '../../..' : '..', 'build');
 
 module.exports = {
@@ -91,7 +92,7 @@ module.exports = {
     new HtmlWebpackPlugin({
       inject: true,
       template: indexHtmlPath,
-      favicon: path.join(srcPath, 'favicon.ico'),
+      favicon: faviconPath,
     }),
     new webpack.DefinePlugin({ 'process.env.NODE_ENV': '"development"' }),
     // Note: only CSS is currently hot reloaded
diff --git a/config/webpack.config.prod.js b/config/webpack.config.prod.js
index b16d1bb1a0c2d7a0df8ed3e7b388b87ac8352bc1..e4b4ef1e37dc978efd9ad4db0b06fca4052d55a5 100644
--- a/config/webpack.config.prod.js
+++ b/config/webpack.config.prod.js
@@ -24,6 +24,7 @@ if (process.argv[2] === '--debug-template') {
 var srcPath = path.resolve(__dirname, relativePath, 'src');
 var nodeModulesPath = path.join(__dirname, '..', 'node_modules');
 var indexHtmlPath = path.resolve(__dirname, relativePath, 'index.html');
+var faviconPath = path.resolve(__dirname, relativePath, 'favicon.ico');
 var buildPath = path.join(__dirname, isInNodeModules ? '../../..' : '..', 'build');
 
 module.exports = {
@@ -92,7 +93,7 @@ module.exports = {
     new HtmlWebpackPlugin({
       inject: true,
       template: indexHtmlPath,
-      favicon: path.join(srcPath, 'favicon.ico'),
+      favicon: faviconPath,
       minify: {
         removeComments: true,
         collapseWhitespace: true,
diff --git a/template/src/favicon.ico b/template/favicon.ico
similarity index 100%
rename from template/src/favicon.ico
rename to template/favicon.ico