diff --git a/modules/core/src/compiler/view.js b/modules/core/src/compiler/view.js
index 8f1c1d7728..2fb8163447 100644
--- a/modules/core/src/compiler/view.js
+++ b/modules/core/src/compiler/view.js
@@ -71,8 +71,7 @@ export class View {
   setLocal(contextName: string, value) {
     if (!this.hydrated()) throw new BaseException('Cannot set locals on dehydrated view.');
     if (!MapWrapper.contains(this.proto.variableBindings, contextName)) {
-      throw new BaseException(
-          `Local binding ${contextName} not defined in the view template.`);
+      return;
     }
     var templateName = MapWrapper.get(this.proto.variableBindings, contextName);
     this.context.set(templateName, value);
diff --git a/modules/core/test/compiler/view_spec.js b/modules/core/test/compiler/view_spec.js
index 1a4e269bc5..fcceaebaaa 100644
--- a/modules/core/test/compiler/view_spec.js
+++ b/modules/core/test/compiler/view_spec.js
@@ -84,8 +84,8 @@ export function main() {
         expect(view.context.get('template-foo')).toBe('bar');
       });
 
-      it('should throw on undeclared locals', () => {
-        expect(() => view.setLocal('setMePlease', 'bar')).toThrowError();
+      it('should not throw on undeclared locals', () => {
+        expect(() => view.setLocal('setMePlease', 'bar')).not.toThrow();
       });
 
       it('when dehydrated should set locals to null', () => {
diff --git a/modules/directives/src/ng_repeat.js b/modules/directives/src/ng_repeat.js
index 3710e8d32a..d50fb25afe 100644
--- a/modules/directives/src/ng_repeat.js
+++ b/modules/directives/src/ng_repeat.js
@@ -50,8 +50,7 @@ export class NgRepeat extends OnChange {
 
   perViewChange(view, record) {
     view.setLocal('ng-repeat', record.item);
-    // Uncomment when binding is ready.
-    // view.setLocal('index', record.item);
+    view.setLocal('index', record.currentIndex);
   }
 
   static bulkRemove(tuples, viewPort) {
diff --git a/modules/directives/test/ng_repeat_spec.js b/modules/directives/test/ng_repeat_spec.js
index 0e9a69509d..19ac6c521c 100644
--- a/modules/directives/test/ng_repeat_spec.js
+++ b/modules/directives/test/ng_repeat_spec.js
@@ -191,10 +191,9 @@ export function main() {
     });
   });
 
-/*
-TODO(rado): enable after compiler is fixed.
+
   it('should display indices correctly', (done) => {
-    var INDEX_TEMPLATE = '<div><copy-me template="ng-repeat #item in items index #i">{{index.toString()}};</copy-me></div>';
+    var INDEX_TEMPLATE = '<div><copy-me template="ng-repeat #item in items index #i">{{i.toString()}}</copy-me></div>';
     compileWithTemplate(INDEX_TEMPLATE).then((pv) => {
       createView(pv);
       component.items = [0, 1, 2, 3, 4, 5, 6, 7, 8, 9];
@@ -207,7 +206,7 @@ TODO(rado): enable after compiler is fixed.
       done();
     });
   });
-*/
+
   });
 }