diff --git a/src/ng1/directives/viewDirective.ts b/src/ng1/directives/viewDirective.ts
index 66f59a2a7..9d98af550 100644
--- a/src/ng1/directives/viewDirective.ts
+++ b/src/ng1/directives/viewDirective.ts
@@ -326,10 +326,15 @@ function $ViewDirectiveFill ($compile: ICompileService, $controller: IController
     priority: -400,
     compile: function (tElement: JQuery) {
       let initial = tElement.html();
+      tElement.empty();
 
       return function (scope: IScope, $element: JQuery) {
         let data: UIViewData = $element.data('$uiView');
-        if (!data) return;
+        if (!data) {
+            $element.html(initial);
+            $compile($element.contents())(scope);
+            return;
+        }
 
         let cfg: Ng1ViewConfig = data.$cfg || <any> { viewDecl: {} };
         $element.html(cfg.template || initial);
diff --git a/test/viewDirectiveSpec.js b/test/viewDirectiveSpec.js
index d896fb3ea..8fa1bf036 100644
--- a/test/viewDirectiveSpec.js
+++ b/test/viewDirectiveSpec.js
@@ -88,7 +88,7 @@ describe('uiView', function () {
     controller: function() {
       this.someProperty = "value"
     },
-    template: "hi",
+    template: "{{vm.someProperty}}",
     controllerAs: "vm"
   },
   lState = {
@@ -324,7 +324,7 @@ describe('uiView', function () {
   });
 
   it('should instantiate a controller with controllerAs', inject(function($state, $q) {
-    elem.append($compile('<div><ui-view>{{vm.someProperty}}</ui-view></div>')(scope));
+    elem.append($compile('<div><ui-view></ui-view></div>')(scope));
     $state.transitionTo(kState);
     $q.flush();
 
@@ -726,6 +726,54 @@ describe("UiView", function() {
   }));
 });
 
+describe('uiView transclusion', function() {
+  var scope, $compile, elem;
+
+  beforeEach(function() {
+    app = angular.module('foo', []);
+
+    app.directive('scopeObserver', function() {
+      return {
+        restrict: 'E',
+        link: function(scope) {
+          scope.$emit('directiveCreated');
+          scope.$on('$destroy', function() {
+            scope.$emit('directiveDestroyed');
+          });
+        }
+      };
+    });
+  });
+
+  beforeEach(module('ui.router', 'foo'));
+
+  beforeEach(module(function($stateProvider) {
+    $stateProvider
+      .state('a', { template: '<ui-view><scope-observer></scope-observer></ui-view>' })
+      .state('a.b', { template: 'anything' });
+  }));
+
+  beforeEach(inject(function ($rootScope, _$compile_) {
+    scope = $rootScope.$new();
+    $compile = _$compile_;
+    elem = angular.element('<div>');
+  }));
+
+  it('should not link the initial view and leave its scope undestroyed when a subview is activated', inject(function($state, $q) {
+    var aliveCount = 0;
+    scope.$on('directiveCreated', function() {
+      aliveCount++;
+    });
+    scope.$on('directiveDestroyed', function() {
+      aliveCount--;
+    });
+    elem.append($compile('<div><ui-view></ui-view></div>')(scope));
+    $state.transitionTo('a.b');
+    $q.flush();
+    expect(aliveCount).toBe(0);
+  }));
+});
+
 describe('uiView controllers or onEnter handlers', function() {
   var el, template, scope, document, count;