diff --git a/lib/index.js b/lib/index.js
index 55b880b2..6148bdbd 100644
--- a/lib/index.js
+++ b/lib/index.js
@@ -472,8 +472,19 @@ Base.prototype.run = function run(cb) {
  */
 
 Base.prototype.composeWith = function composeWith(namespace, options, settings) {
-  settings = settings || {};
   var generator;
+  settings = settings || {};
+  options = options || {};
+
+  // Pass down the default options so they're correclty mirrored down the chain.
+  options = _.extend({
+    options: _.extend({
+      skipInstall: this.options.skipInstall,
+      'skip-install': this.options.skipInstall,
+      skipCache: this.options.skipCache,
+      'skip-cache': this.options.skipCache
+    }, options.options)
+  }, options);
 
   if (settings.local) {
     var Generator = require(settings.local);
diff --git a/test/base.js b/test/base.js
index 20e04257..35ad0000 100644
--- a/test/base.js
+++ b/test/base.js
@@ -689,7 +689,7 @@ describe('Base', function () {
         resolved: 'unknown',
         namespace: 'dummy',
         env: this.env,
-        'skip-install': true
+        skipInstall: true
       });
 
       this.spy = sinon.spy();
@@ -706,6 +706,8 @@ describe('Base', function () {
       setTimeout(function () {
         this.dummy.run(function () {
           sinon.assert.callOrder(runSpy, this.spy);
+          assert.equal(this.spy.thisValues[0].options.skipInstall, true);
+          assert.equal(this.spy.thisValues[0].options['skip-install'], true);
           assert(this.spy.calledAfter(runSpy));
           done();
         }.bind(this));
diff --git a/test/install.js b/test/install.js
index fbf5454b..65e2ada9 100644
--- a/test/install.js
+++ b/test/install.js
@@ -152,6 +152,7 @@ describe('Base (actions/install mixin)', function () {
       this.dummy.run();
     });
   });
+
   describe('#yarnInstall()', function () {
     it('spawn an install process once per commands', function (done) {
       this.dummy.yarnInstall();