diff --git a/README.md b/README.md
index 2ba3f84b..ce2e906b 100644
--- a/README.md
+++ b/README.md
@@ -147,10 +147,18 @@ describe('Counter', () => {
 ## Installation
 
 This module is distributed via [npm][npm] which is bundled with [node][node] and
-should be installed as one of your project's `devDependencies`:
+should be installed as one of your project's `devDependencies`.
+Starting from ATL version 17, you also need to install `@testing-library/dom`:
 
 ```bash
-npm install @testing-library/angular --save-dev
+npm install --save-dev @testing-library/angular @testing-library/dom
+```
+
+Or, you can use the `ng add` command.
+This sets up your project to use Angular Testing Library, which also includes the installation of `@testing-library/dom`.
+
+```bash
+ng add @testing-library/angular
 ```
 
 You may also be interested in installing `jest-dom` so you can use
@@ -160,14 +168,14 @@ You may also be interested in installing `jest-dom` so you can use
 
 ## Version compatibility
 
-| Angular | Angular Testing Library |
-| ------- | ----------------------- |
-| 18.x    | 16.x, 15.x, 14.x, 13.x  |
-| 17.x    | 16.x, 15.x, 14.x, 13.x  |
-| 16.x    | 14.x, 13.x              |
-| >= 15.1 | 14.x, 13.x              |
-| < 15.1  | 12.x, 11.x              |
-| 14.x    | 12.x, 11.x              |
+| Angular | Angular Testing Library      |
+| ------- | ---------------------------- |
+| 18.x    | 17.x, 16.x, 15.x, 14.x, 13.x |
+| 17.x    | 17.x, 16.x, 15.x, 14.x, 13.x |
+| 16.x    | 14.x, 13.x                   |
+| >= 15.1 | 14.x, 13.x                   |
+| < 15.1  | 12.x, 11.x                   |
+| 14.x    | 12.x, 11.x                   |
 
 ## Guiding Principles
 
diff --git a/projects/testing-library/package.json b/projects/testing-library/package.json
index fd3cfac9..2852d027 100644
--- a/projects/testing-library/package.json
+++ b/projects/testing-library/package.json
@@ -26,16 +26,16 @@
     "save": "devDependencies"
   },
   "ng-update": {
-    "migrations": "./schematics/migrations/migration.json"
+    "migrations": "./schematics/migrations/migrations.json"
   },
   "peerDependencies": {
     "@angular/common": ">= 17.0.0",
     "@angular/platform-browser": ">= 17.0.0",
     "@angular/router": ">= 17.0.0",
-    "@angular/core": ">= 17.0.0"
+    "@angular/core": ">= 17.0.0",
+    "@testing-library/dom": "^10.0.0"
   },
   "dependencies": {
-    "@testing-library/dom": "^10.0.0",
     "tslib": "^2.3.1"
   },
   "publishConfig": {
diff --git a/projects/testing-library/schematics/migrations/dtl-as-dev-dependency/index.spec.ts b/projects/testing-library/schematics/migrations/dtl-as-dev-dependency/index.spec.ts
new file mode 100644
index 00000000..a3c0fd1e
--- /dev/null
+++ b/projects/testing-library/schematics/migrations/dtl-as-dev-dependency/index.spec.ts
@@ -0,0 +1,44 @@
+import { SchematicTestRunner, UnitTestTree } from '@angular-devkit/schematics/testing';
+import * as path from 'path';
+import { EmptyTree } from '@angular-devkit/schematics';
+
+test('adds DTL to devDependencies', async () => {
+  const tree = await setup({});
+  const pkg = tree.readContent('package.json');
+
+  expect(pkg).toMatchInlineSnapshot(`
+    "{
+      \\"devDependencies\\": {
+        \\"@testing-library/dom\\": \\"^10.0.0\\"
+      }
+    }"
+  `);
+});
+
+test('ignores if DTL is already listed as a dev dependency', async () => {
+  // eslint-disable-next-line @typescript-eslint/naming-convention
+  const tree = await setup({ devDependencies: { '@testing-library/dom': '^9.0.0' } });
+  const pkg = tree.readContent('package.json');
+
+  expect(pkg).toMatchInlineSnapshot(`"{\\"devDependencies\\":{\\"@testing-library/dom\\":\\"^9.0.0\\"}}"`);
+});
+
+test('ignores if DTL is already listed as a dependency', async () => {
+  // eslint-disable-next-line @typescript-eslint/naming-convention
+  const tree = await setup({ dependencies: { '@testing-library/dom': '^11.0.0' } });
+  const pkg = tree.readContent('package.json');
+
+  expect(pkg).toMatchInlineSnapshot(`"{\\"dependencies\\":{\\"@testing-library/dom\\":\\"^11.0.0\\"}}"`);
+});
+
+async function setup(packageJson: object) {
+  const collectionPath = path.join(__dirname, '../migrations.json');
+  const schematicRunner = new SchematicTestRunner('schematics', collectionPath);
+
+  const tree = new UnitTestTree(new EmptyTree());
+  tree.create('package.json', JSON.stringify(packageJson));
+
+  await schematicRunner.runSchematic(`atl-add-dtl-as-dev-dependency`, {}, tree);
+
+  return tree;
+}
diff --git a/projects/testing-library/schematics/migrations/dtl-as-dev-dependency/index.ts b/projects/testing-library/schematics/migrations/dtl-as-dev-dependency/index.ts
new file mode 100644
index 00000000..1c06e2f6
--- /dev/null
+++ b/projects/testing-library/schematics/migrations/dtl-as-dev-dependency/index.ts
@@ -0,0 +1,20 @@
+import { Rule, SchematicContext, Tree } from '@angular-devkit/schematics';
+import {
+  addPackageJsonDependency,
+  getPackageJsonDependency,
+  NodeDependencyType,
+} from '@schematics/angular/utility/dependencies';
+
+const dtl = '@testing-library/dom';
+
+export default function (): Rule {
+  return async (tree: Tree, context: SchematicContext) => {
+    const dtlDep = getPackageJsonDependency(tree, dtl);
+    if (dtlDep) {
+      context.logger.info(`Skipping installation of '@testing-library/dom' because it's already installed.`);
+    } else {
+      context.logger.info(`Adding '@testing-library/dom' as a peer dependency.`);
+      addPackageJsonDependency(tree, { name: dtl, type: NodeDependencyType.Dev, overwrite: false, version: '^10.0.0' });
+    }
+  };
+}
diff --git a/projects/testing-library/schematics/migrations/migration.json b/projects/testing-library/schematics/migrations/migration.json
deleted file mode 100644
index 63001b44..00000000
--- a/projects/testing-library/schematics/migrations/migration.json
+++ /dev/null
@@ -1,3 +0,0 @@
-{
-  "schematics": {}
-}
diff --git a/projects/testing-library/schematics/migrations/migrations.json b/projects/testing-library/schematics/migrations/migrations.json
new file mode 100644
index 00000000..711b7ae0
--- /dev/null
+++ b/projects/testing-library/schematics/migrations/migrations.json
@@ -0,0 +1,10 @@
+{
+  "$schema": "../../../../node_modules/@angular-devkit/schematics/collection-schema.json",
+  "schematics": {
+    "atl-add-dtl-as-dev-dependency": {
+      "description": "Add @testing-library/dom as a dev dependency",
+      "version": "17.0.0-beta.3",
+      "factory": "./dtl-as-dev-dependency/index"
+    }
+  }
+}
diff --git a/projects/testing-library/schematics/ng-add/index.ts b/projects/testing-library/schematics/ng-add/index.ts
index 68b9dfa2..24a0a3dc 100644
--- a/projects/testing-library/schematics/ng-add/index.ts
+++ b/projects/testing-library/schematics/ng-add/index.ts
@@ -1,11 +1,27 @@
 import { Rule, SchematicContext, Tree } from '@angular-devkit/schematics';
+import {
+  addPackageJsonDependency,
+  getPackageJsonDependency,
+  NodeDependencyType,
+} from '@schematics/angular/utility/dependencies';
+
+const dtl = '@testing-library/dom';
 
 export default function (): Rule {
-  return (host: Tree, context: SchematicContext) => {
+  return (tree: Tree, context: SchematicContext) => {
+    const dtlDep = getPackageJsonDependency(tree, dtl);
+    if (dtlDep) {
+      context.logger.info(`Skipping installation of '@testing-library/dom' because it's already installed.`);
+    } else {
+      context.logger.info(`Adding '@testing-library/dom' as a dev dependency.`);
+      addPackageJsonDependency(tree, { name: dtl, type: NodeDependencyType.Dev, overwrite: false, version: '^10.0.0' });
+    }
+
     context.logger.info(
       `Correctly installed @testing-library/angular.
 See our docs at https://testing-library.com/docs/angular-testing-library/intro/ to get started.`,
     );
-    return host;
+
+    return tree;
   };
 }
diff --git a/projects/testing-library/test-setup.ts b/projects/testing-library/test-setup.ts
index 0da94a0a..600d0857 100644
--- a/projects/testing-library/test-setup.ts
+++ b/projects/testing-library/test-setup.ts
@@ -1,2 +1,6 @@
 import 'jest-preset-angular/setup-jest';
 import '@testing-library/jest-dom';
+import { TextEncoder, TextDecoder } from 'util';
+
+// eslint-disable-next-line @typescript-eslint/naming-convention
+Object.assign(global, { TextDecoder, TextEncoder });
diff --git a/projects/testing-library/tsconfig.lib.prod.json b/projects/testing-library/tsconfig.lib.prod.json
index 1f041c94..752ed5ea 100644
--- a/projects/testing-library/tsconfig.lib.prod.json
+++ b/projects/testing-library/tsconfig.lib.prod.json
@@ -8,5 +8,5 @@
   "angularCompilerOptions": {
     "compilationMode": "partial"
   },
-  "exclude": ["jest.config.ts"]
+  "exclude": ["src/test-setup.ts", "**/*.spec.ts", "**/*.test.ts", "jest.config.ts"]
 }
diff --git a/projects/testing-library/tsconfig.schematics.json b/projects/testing-library/tsconfig.schematics.json
index 481a34bc..c0118513 100644
--- a/projects/testing-library/tsconfig.schematics.json
+++ b/projects/testing-library/tsconfig.schematics.json
@@ -8,10 +8,11 @@
     "esModuleInterop": true,
     "resolveJsonModule": true,
     "forceConsistentCasingInFileNames": true,
-    "outDir": "../../dist/@testing-library/angular/schematics/ng-add",
+    "outDir": "../../dist/@testing-library/angular/schematics",
     "removeComments": true,
     "skipLibCheck": true,
     "sourceMap": false
   },
-  "include": ["schematics/**/*.ts"]
+  "include": ["schematics/**/*.ts"],
+  "exclude": ["src/test-setup.ts", "**/*.spec.ts", "**/*.test.ts", "jest.config.ts"]
 }