diff --git a/packages/upgrade/src/common/downgrade_component.ts b/packages/upgrade/src/common/downgrade_component.ts
index 7f34c5d2a2..e1539f06f9 100644
--- a/packages/upgrade/src/common/downgrade_component.ts
+++ b/packages/upgrade/src/common/downgrade_component.ts
@@ -86,8 +86,9 @@ export function downgradeComponent(info: {
     //   NOTE: This is not needed, when using `UpgradeModule`, because `$digest()` will be run
     //         inside the Angular zone (except if explicitly escaped, in which case we shouldn't
     //         force it back in).
-    let isNgUpgradeLite = false;
-    let wrapCallback = <T>(cb: () => T) => cb;
+    const isNgUpgradeLite = getUpgradeAppType($injector) === UpgradeAppType.Lite;
+    const wrapCallback: <T>(cb: () => T) => typeof cb =
+        !isNgUpgradeLite ? cb => cb : cb => () => NgZone.isInAngularZone() ? cb() : ngZone.run(cb);
     let ngZone: NgZone;
 
     return {
@@ -112,7 +113,6 @@ export function downgradeComponent(info: {
           validateInjectionKey($injector, downgradedModule, lazyModuleRefKey, attemptedAction);
 
           const lazyModuleRef = $injector.get(lazyModuleRefKey) as LazyModuleRef;
-          isNgUpgradeLite = getUpgradeAppType($injector) === UpgradeAppType.Lite;
           parentInjector = lazyModuleRef.injector || lazyModuleRef.promise as Promise<Injector>;
         }
 
@@ -149,8 +149,6 @@ export function downgradeComponent(info: {
         const downgradeFn = !isNgUpgradeLite ? doDowngrade : (injector: Injector) => {
           if (!ngZone) {
             ngZone = injector.get(NgZone);
-            wrapCallback = <T>(cb: () => T) => () =>
-                NgZone.isInAngularZone() ? cb() : ngZone.run(cb);
           }
 
           wrapCallback(() => doDowngrade(injector))();
diff --git a/packages/upgrade/test/static/integration/downgrade_module_spec.ts b/packages/upgrade/test/static/integration/downgrade_module_spec.ts
index a1b0455aaf..2c206c4e5e 100644
--- a/packages/upgrade/test/static/integration/downgrade_module_spec.ts
+++ b/packages/upgrade/test/static/integration/downgrade_module_spec.ts
@@ -322,6 +322,69 @@ withEachNg1Version(() => {
                 });
               }));
 
+      fixmeIvy('FW-714: ng1 projected content is not being rendered')
+          .it('should create and destroy nested, asynchronously instantiated components inside the Angular zone',
+              async(() => {
+                let createdInTheZone = false;
+                let destroyedInTheZone = false;
+
+                @Component({
+                  selector: 'test',
+                  template: '',
+                })
+                class TestComponent implements OnDestroy {
+                  constructor() { createdInTheZone = NgZone.isInAngularZone(); }
+                  ngOnDestroy() { destroyedInTheZone = NgZone.isInAngularZone(); }
+                }
+
+                @Component({
+                  selector: 'wrapper',
+                  template: '<ng-content></ng-content>',
+                })
+                class WrapperComponent {
+                }
+
+                @NgModule({
+                  declarations: [TestComponent, WrapperComponent],
+                  entryComponents: [TestComponent, WrapperComponent],
+                  imports: [BrowserModule],
+                })
+                class Ng2Module {
+                  ngDoBootstrap() {}
+                }
+
+                const bootstrapFn = (extraProviders: StaticProvider[]) =>
+                    platformBrowserDynamic(extraProviders).bootstrapModule(Ng2Module);
+                const lazyModuleName = downgradeModule<Ng2Module>(bootstrapFn);
+                const ng1Module =
+                    angular.module('ng1', [lazyModuleName])
+                        .directive(
+                            'test', downgradeComponent({component: TestComponent, propagateDigest}))
+                        .directive(
+                            'wrapper',
+                            downgradeComponent({component: WrapperComponent, propagateDigest}));
+
+                // Important: `ng-if` makes `<test>` render asynchronously.
+                const element = html('<wrapper><test ng-if="showNg2"></test></wrapper>');
+                const $injector = angular.bootstrap(element, [ng1Module.name]);
+                const $rootScope = $injector.get($ROOT_SCOPE) as angular.IRootScopeService;
+
+                // Wait for the module to be bootstrapped.
+                setTimeout(() => {
+                  // Create nested component asynchronously.
+                  expect(createdInTheZone).toBe(false);
+
+                  $rootScope.$apply('showNg2 = true');
+                  expect(createdInTheZone).toBe(true);
+
+                  // Destroy nested component asynchronously.
+                  expect(destroyedInTheZone).toBe(false);
+
+                  $rootScope.$apply('showNg2 = false');
+                  expect(destroyedInTheZone).toBe(true);
+                });
+              }));
+
       it('should wire up the component for change detection', async(() => {
            @Component(
                {selector: 'ng2', template: '{{ count }}<button (click)="increment()"></button>'})
@@ -364,6 +427,66 @@ withEachNg1Version(() => {
            });
          }));
 
+      fixmeIvy('FW-714: ng1 projected content is not being rendered')
+          .it('should wire up nested, asynchronously instantiated components for change detection',
+              async(() => {
+                @Component({
+                  selector: 'test',
+                  template: '{{ count }}<button (click)="increment()"></button>'
+                })
+                class TestComponent {
+                  count = 0;
+                  increment() { ++this.count; }
+                }
+
+                @Component({
+                  selector: 'wrapper',
+                  template: '<ng-content></ng-content>',
+                })
+                class WrapperComponent {
+                }
+
+                @NgModule({
+                  declarations: [TestComponent, WrapperComponent],
+                  entryComponents: [TestComponent, WrapperComponent],
+                  imports: [BrowserModule],
+                })
+                class Ng2Module {
+                  ngDoBootstrap() {}
+                }
+
+                const bootstrapFn = (extraProviders: StaticProvider[]) =>
+                    platformBrowserDynamic(extraProviders).bootstrapModule(Ng2Module);
+                const lazyModuleName = downgradeModule<Ng2Module>(bootstrapFn);
+                const ng1Module =
+                    angular.module('ng1', [lazyModuleName])
+                        .directive(
+                            'test', downgradeComponent({component: TestComponent, propagateDigest}))
+                        .directive(
+                            'wrapper',
+                            downgradeComponent({component: WrapperComponent, propagateDigest}));
+
+                // Important: `ng-if` makes `<test>` render asynchronously.
+                const element = html('<wrapper><test ng-if="showNg2"></test></wrapper>');
+                const $injector = angular.bootstrap(element, [ng1Module.name]);
+                const $rootScope = $injector.get($ROOT_SCOPE) as angular.IRootScopeService;
+
+                // Wait for the module to be bootstrapped.
+                setTimeout(() => {
+                  // Create nested component asynchronously.
+                  $rootScope.$apply('showNg2 = true');
+                  const button = element.querySelector('button') !;
+
+                  expect(element.textContent).toBe('0');
+
+                  button.click();
+                  expect(element.textContent).toBe('1');
+
+                  button.click();
+                  expect(element.textContent).toBe('2');
+                });
+              }));
+
       fixmeIvy('FW-715: ngOnChanges being called a second time unexpectedly')
           .fixmeIvy('FW-714: ng1 projected content is not being rendered')
           .it('should run the lifecycle hooks in the correct order', async(() => {