diff --git a/modules/core/src/annotations/annotations.js b/modules/core/src/annotations/annotations.js
index 40f292329e..6a89cea3e3 100644
--- a/modules/core/src/annotations/annotations.js
+++ b/modules/core/src/annotations/annotations.js
@@ -74,6 +74,7 @@ export class Component extends Directive {
 }
 
 export class Decorator extends Directive {
+  compileChildren: boolean;
   @CONST()
   constructor({
       selector,
diff --git a/modules/core/src/compiler/pipeline/compile_element.js b/modules/core/src/compiler/pipeline/compile_element.js
index 962a2a58c1..efe76fd9f9 100644
--- a/modules/core/src/compiler/pipeline/compile_element.js
+++ b/modules/core/src/compiler/pipeline/compile_element.js
@@ -32,6 +32,7 @@ export class CompileElement {
   inheritedProtoView:ProtoView;
   inheritedProtoElementInjector:ProtoElementInjector;
   inheritedElementBinder:ElementBinder;
+  compileChildren: boolean;
   constructor(element:Element) {
     this.element = element;
     this._attrs = null;
@@ -54,6 +55,7 @@ export class CompileElement {
     // inherited down to children if they don't have
     // an own elementBinder
     this.inheritedElementBinder = null;
+    this.compileChildren = true;
   }
 
   refreshAttrs() {
diff --git a/modules/core/src/compiler/pipeline/compile_pipeline.js b/modules/core/src/compiler/pipeline/compile_pipeline.js
index c2c1255ee1..3d74a2b28a 100644
--- a/modules/core/src/compiler/pipeline/compile_pipeline.js
+++ b/modules/core/src/compiler/pipeline/compile_pipeline.js
@@ -24,15 +24,18 @@ export class CompilePipeline {
 
   _process(results, parent:CompileElement, current:CompileElement) {
     var additionalChildren = this._control.internalProcess(results, 0, parent, current);
-    var node = DOM.templateAwareRoot(current.element).firstChild;
-    while (isPresent(node)) {
-      // compiliation can potentially move the node, so we need to store the
-      // next sibling before recursing.
-      var nextNode = DOM.nextSibling(node);
-      if (node.nodeType === Node.ELEMENT_NODE) {
-        this._process(results, current, new CompileElement(node));
+
+    if (current.compileChildren) {
+      var node = DOM.templateAwareRoot(current.element).firstChild;
+      while (isPresent(node)) {
+        // compiliation can potentially move the node, so we need to store the
+        // next sibling before recursing.
+        var nextNode = DOM.nextSibling(node);
+        if (node.nodeType === Node.ELEMENT_NODE) {
+          this._process(results, current, new CompileElement(node));
+        }
+        node = nextNode;
       }
-      node = nextNode;
     }
 
     if (isPresent(additionalChildren)) {
diff --git a/modules/core/test/compiler/pipeline/pipeline_spec.js b/modules/core/test/compiler/pipeline/pipeline_spec.js
index 9d3f7670eb..7cf6fa20e7 100644
--- a/modules/core/test/compiler/pipeline/pipeline_spec.js
+++ b/modules/core/test/compiler/pipeline/pipeline_spec.js
@@ -1,5 +1,5 @@
 import {describe, beforeEach, it, expect, iit, ddescribe} from 'test_lib/test_lib';
-import {ListWrapper, List} from 'facade/collection';
+import {ListWrapper, List, MapWrapper} from 'facade/collection';
 import {DOM} from 'facade/dom';
 import {isPresent, NumberWrapper, StringWrapper} from 'facade/lang';
 
@@ -10,14 +10,27 @@ import {CompileControl} from 'core/compiler/pipeline/compile_control';
 
 export function main() {
   describe('compile_pipeline', () => {
-    it('should walk the tree in depth first order including template contents', () => {
-      var element = createElement('<div id="1"><template id="2"><span id="3"></span></template></div>');
+    describe('children compilation', () => {
+      it('should walk the tree in depth first order including template contents', () => {
+        var element = createElement('<div id="1"><template id="2"><span id="3"></span></template></div>');
 
-      var step0Log = [];
-      var results = new CompilePipeline([createLoggerStep(step0Log)]).process(element);
+        var step0Log = [];
+        var results = new CompilePipeline([createLoggerStep(step0Log)]).process(element);
 
-      expect(step0Log).toEqual(['1', '1<2', '2<3']);
-      expect(resultIdLog(results)).toEqual(['1', '2', '3']);
+        expect(step0Log).toEqual(['1', '1<2', '2<3']);
+        expect(resultIdLog(results)).toEqual(['1', '2', '3']);
+      });
+
+      it('should stop walking the tree when compileChildren is false', () => {
+        var element = createElement('<div id="1"><template id="2" ignore-children><span id="3"></span></template></div>');
+
+        var step0Log = [];
+        var pipeline = new CompilePipeline([new IgnoreChildrenStep(), createLoggerStep(step0Log)]);
+        var results = pipeline.process(element);
+
+        expect(step0Log).toEqual(['1', '1<2']);
+        expect(resultIdLog(results)).toEqual(['1', '2']);
+      });
     });
 
     describe('control.addParent', () => {
@@ -118,6 +131,15 @@ class MockStep extends CompileStep {
   }
 }
 
+class IgnoreChildrenStep extends CompileStep {
+  process(parent:CompileElement, current:CompileElement, control:CompileControl) {
+    var attributeMap = DOM.attributeMap(current.element);
+    if (MapWrapper.contains(attributeMap, 'ignore-children')) {
+      current.compileChildren = false;
+    }
+  }
+}
+
 function logEntry(log, parent, current) {
   var parentId = '';
   if (isPresent(parent)) {