diff --git a/.circleci/config.yml b/.circleci/config.yml
index 7f23940b619a4..4669041e52eb5 100644
--- a/.circleci/config.yml
+++ b/.circleci/config.yml
@@ -29,8 +29,8 @@ var_4_win: &cache_key_win_fallback v5-angular-win-node-12.0-
 
 # Cache key for the Material unit tests job. **Note** when updating the SHA in the cache keys,
 # also update the SHA for the "MATERIAL_REPO_COMMIT" environment variable.
-var_5: &material_unit_tests_cache_key v4-angular-material-818a8c7d6bb3f25d0637e5d6462cf9a84403b78f
-var_6: &material_unit_tests_cache_key_fallback v4-angular-material-
+var_5: &material_unit_tests_cache_key v5-angular-material-50514b2358f394f1f6d634fa181b563b7edd738b
+var_6: &material_unit_tests_cache_key_fallback v5-angular-material-
 
 # Workspace initially persisted by the `setup` job, and then enhanced by `build-npm-packages` and
 # `build-ivy-npm-packages`.
@@ -708,7 +708,11 @@ jobs:
       - run:
           # Run yarn install to fetch the Bazel binaries as used in the Material repo.
           name: Installing Material dependencies.
-          command: yarn --cwd ${MATERIAL_REPO_TMP_DIR} install --frozen-lockfile --non-interactive
+          # TODO: remove this once the repo has been updated to use NodeJS v12 and Yarn 1.19.1.
+          # We temporarily ignore the "engines" because the Angular components repository has
+          # minimum dependency on NodeJS v12 and Yarn 1.19.1, but the framework repository uses
+          # older versions.
+          command: yarn --ignore-engines --cwd ${MATERIAL_REPO_TMP_DIR} install --frozen-lockfile --non-interactive
       - save_cache:
           key: *material_unit_tests_cache_key
           paths:
@@ -869,10 +873,9 @@ workflows:
             - build-ivy-npm-packages
             - legacy-unit-tests-saucelabs
             - legacy-misc-tests
-      # FIXME: temporarily disabled until the components repo updates to typescript 3.6
-      #- material-unit-tests:
-      #    requires:
-      #      - build-ivy-npm-packages
+      - material-unit-tests:
+          requires:
+            - build-npm-packages
       - test_zonejs:
           requires:
             - setup
diff --git a/.circleci/env.sh b/.circleci/env.sh
index 1d4f20a61ea98..29f7e44d3d8e9 100755
--- a/.circleci/env.sh
+++ b/.circleci/env.sh
@@ -84,7 +84,7 @@ setPublicVar MATERIAL_REPO_TMP_DIR "/tmp/material2"
 setPublicVar MATERIAL_REPO_URL "https://github.com/angular/material2.git"
 setPublicVar MATERIAL_REPO_BRANCH "master"
 # **NOTE**: When updating the commit SHA, also update the cache key in the CircleCI "config.yml".
-setPublicVar MATERIAL_REPO_COMMIT "818a8c7d6bb3f25d0637e5d6462cf9a84403b78f"
+setPublicVar MATERIAL_REPO_COMMIT "50514b2358f394f1f6d634fa181b563b7edd738b"
 
 # Source `$BASH_ENV` to make the variables available immediately.
 source $BASH_ENV;
diff --git a/scripts/ci/run_angular_material_unit_tests.sh b/scripts/ci/run_angular_material_unit_tests.sh
index 510bf00fcf8d8..ae116f885e866 100755
--- a/scripts/ci/run_angular_material_unit_tests.sh
+++ b/scripts/ci/run_angular_material_unit_tests.sh
@@ -6,36 +6,17 @@ set -u -e -o pipefail
 # Save the dir for the root of the Angular repo.
 angular_dir=$(pwd)
 
-# Disable full template type check, as Material doesn't build cleanly with it enabled.
-# See https://github.com/angular/components/pull/16373 for details.
-# The "ivyTemplateTypeCheck" flag is set to True so that a minimum amount of type checking still
-# occurs, at a level compatible with that of VE's type checking. This ensures Ivy's type checker
-# is still tested against the Material repo, albeit in its non-strict mode.
-sed -i'.bak' "s/\(_ENABLE_NG_TYPE_CHECKING = \)True/\1False/g" ${MATERIAL_REPO_TMP_DIR}/tools/defaults.bzl
-sed -i'.bak' "s/\(\"ivyTemplateTypeCheck\": \)False/\1True/g" dist/packages-dist-ivy-aot/bazel/src/ng_module.bzl
-
-# The components repository updated to rules_nodejs#0.38.2 before Angular Bazel did. To do this,
-# the `@angular/bazel` v0.38.2 compatibility changes were patched on postinstall. This now
-# conflicts because we install a `@angular/bazel` version that already includes these compatibility
-# changes. This would result in the patch being a noop for which the `patch` command throws.
-# To work around this temporarily, we just ensure that the patch does not run on postinstall.
-# TODO: remove this once Angular components no longer needs the postinstall patch.
-sed -i -r "s/shelljs.cat.+angular_bazel_0\.38\.2\.patch.+;//g" ${MATERIAL_REPO_TMP_DIR}/tools/bazel/postinstall-patches.js
-
 # Switch into Material directory.
 cd ${MATERIAL_REPO_TMP_DIR}
 
-# Updates Material's package.json to refer to the packages-dist-ivy-aot directory.
+# Updates Material's package.json to refer to the packages-dist directory.
 # Note that it's not necessary to perform a yarn install, as Bazel performs its own yarn install.
-node ${angular_dir}/scripts/ci/update-deps-to-dist-packages.js ${MATERIAL_REPO_TMP_DIR}/package.json ${angular_dir}/dist/packages-dist-ivy-aot/
+node ${angular_dir}/scripts/ci/update-deps-to-dist-packages.js ${MATERIAL_REPO_TMP_DIR}/package.json ${angular_dir}/dist/packages-dist/
 
 # Copy the test blocklist into the "angular/components" repository. The components
 # repository automatically picks up the blocklist and disables the specified tests.
 cp ${angular_dir}/tools/material-ci/test-blocklist.ts ${MATERIAL_REPO_TMP_DIR}/test/
 
-# Ensure that the `@angular/localize` package is there. (It wasn't before v9.)
-yarn --cwd ${MATERIAL_REPO_TMP_DIR} add ${angular_dir}/dist/packages-dist-ivy-aot/localize
-
 # Create a symlink for the Bazel binary installed through NPM, as running through Yarn introduces OOM errors.
 ./scripts/circleci/setup_bazel_binary.sh