diff --git a/grails-forge-core/src/main/java/org/grails/forge/feature/assetPipeline/AssetPipeline.java b/grails-forge-core/src/main/java/org/grails/forge/feature/assetPipeline/AssetPipeline.java
index 479203de..bf74cbf3 100644
--- a/grails-forge-core/src/main/java/org/grails/forge/feature/assetPipeline/AssetPipeline.java
+++ b/grails-forge-core/src/main/java/org/grails/forge/feature/assetPipeline/AssetPipeline.java
@@ -66,7 +66,7 @@ public void apply(GeneratorContext generatorContext) {
                 .buildscript());
         generatorContext.addBuildPlugin(GradlePlugin.builder()
                 .id("com.bertramlabs.asset-pipeline")
-                .extension(new RockerWritable(assetPipelineExtension.template()))
+                .extension(new RockerWritable(assetPipelineExtension.template(generatorContext.getApplicationType())))
                 .build());
 
         generatorContext.addDependency(Dependency.builder()
diff --git a/grails-forge-core/src/main/java/org/grails/forge/feature/assetPipeline/templates/assetPipelineExtension.rocker.raw b/grails-forge-core/src/main/java/org/grails/forge/feature/assetPipeline/templates/assetPipelineExtension.rocker.raw
index 753d23b1..27bd22ca 100644
--- a/grails-forge-core/src/main/java/org/grails/forge/feature/assetPipeline/templates/assetPipelineExtension.rocker.raw
+++ b/grails-forge-core/src/main/java/org/grails/forge/feature/assetPipeline/templates/assetPipelineExtension.rocker.raw
@@ -1,5 +1,13 @@
+@import org.grails.forge.application.ApplicationType
+
+@args (
+    org.grails.forge.application.ApplicationType applicationType
+)
 
 assets {
+@if (applicationType == ApplicationType.WEB_PLUGIN) {
+    packagePlugin = true
+}
     minifyJs = true
     minifyCss = true
 }
\ No newline at end of file
diff --git a/grails-forge-core/src/test/groovy/org/grails/forge/feature/assetPipeline/AssetPipelineSpec.groovy b/grails-forge-core/src/test/groovy/org/grails/forge/feature/assetPipeline/AssetPipelineSpec.groovy
index b278ef0c..8453a7b0 100644
--- a/grails-forge-core/src/test/groovy/org/grails/forge/feature/assetPipeline/AssetPipelineSpec.groovy
+++ b/grails-forge-core/src/test/groovy/org/grails/forge/feature/assetPipeline/AssetPipelineSpec.groovy
@@ -48,6 +48,24 @@ assets {
 }''')
     }
 
+    void "test extension packagePlugin is set for application #applicationType"() {
+        when:
+        final String template = new BuildBuilder(beanContext)
+                .applicationType(applicationType)
+                .features(["asset-pipeline-grails"])
+                .render()
+
+        then:
+        template.contains('''
+assets {
+    packagePlugin = true
+    minifyJs = true
+    minifyCss = true
+}''')
+        where:
+        applicationType << [ApplicationType.WEB_PLUGIN]
+    }
+
     void "test assets files are present"() {
         given:
         final Map<String, String> output = generate(ApplicationType.WEB, new Options(TestFramework.SPOCK, JdkVersion.JDK_11))