diff --git a/lib/utils/createConfig.js b/lib/utils/createConfig.js
index e7f9bf799e..c16a95138b 100644
--- a/lib/utils/createConfig.js
+++ b/lib/utils/createConfig.js
@@ -50,6 +50,10 @@ function createConfig(config, argv, { port }) {
     options.progress = argv.progress;
   }
 
+  if (argv.overlay) {
+    options.overlay = argv.overlay;
+  }
+
   if (!options.publicPath) {
     // eslint-disable-next-line
     options.publicPath =
diff --git a/test/CreateConfig.test.js b/test/CreateConfig.test.js
index 3c00c90dd1..a0b99047e2 100644
--- a/test/CreateConfig.test.js
+++ b/test/CreateConfig.test.js
@@ -979,4 +979,16 @@ describe('createConfig', () => {
 
     expect(config).toMatchSnapshot();
   });
+
+  it('overlay', () => {
+    const config = createConfig(
+      Object.assign({}, webpackConfig, {
+        devServer: { overlay: true },
+      }),
+      argv,
+      { port: 8080 }
+    );
+
+    expect(config).toMatchSnapshot();
+  });
 });
diff --git a/test/__snapshots__/CreateConfig.test.js.snap b/test/__snapshots__/CreateConfig.test.js.snap
index 8cf61a8f6d..5549367189 100644
--- a/test/__snapshots__/CreateConfig.test.js.snap
+++ b/test/__snapshots__/CreateConfig.test.js.snap
@@ -835,6 +835,21 @@ Object {
 }
 `;
 
+exports[`createConfig overlay 1`] = `
+Object {
+  "hot": true,
+  "hotOnly": false,
+  "noInfo": true,
+  "overlay": true,
+  "port": 8080,
+  "publicPath": "/",
+  "stats": Object {
+    "cached": false,
+    "cachedAssets": false,
+  },
+}
+`;
+
 exports[`createConfig pfx option (in devServer config) 1`] = `
 Object {
   "hot": true,