diff --git a/modules/angular2/src/core/render/view_factory.ts b/modules/angular2/src/core/render/view_factory.ts
index da3017e9fe..d8f7ed59d4 100644
--- a/modules/angular2/src/core/render/view_factory.ts
+++ b/modules/angular2/src/core/render/view_factory.ts
@@ -128,13 +128,13 @@ class RenderViewBuilder<N> implements RenderCommandVisitor {
       root = this.factory.createShadowRoot(el);
       this.nativeShadowRoots.push(root);
     }
-    this.parentStack.push(new Component(el, root, cmd, this.factory));
+    var component = new Component(el, root, cmd, this.factory, this.allBuilders);
+    this.parentStack.push(component);
     return null;
   }
   visitEndComponent(context: any): any {
     var c = <Component<N>>this.parent;
-    var template = this.factory.resolveComponentTemplate(c.cmd.templateId);
-    this._visitChildTemplate(template, c, c.shadowRoot);
+    c.build();
     this._endElement();
     return null;
   }
@@ -143,7 +143,9 @@ class RenderViewBuilder<N> implements RenderCommandVisitor {
     this._addChild(el, cmd.ngContentIndex);
     this.boundElements.push(el);
     if (cmd.isMerged) {
-      this._visitChildTemplate(cmd.children, this.parentComponent, null);
+      visitAll(
+          new RenderViewBuilder(this.parentComponent, null, null, this.allBuilders, this.factory),
+          cmd.children);
     }
     return null;
   }
@@ -172,11 +174,6 @@ class RenderViewBuilder<N> implements RenderCommandVisitor {
 
   private _endElement() { this.parentStack.pop(); }
 
-  private _visitChildTemplate(cmds: RenderTemplateCmd[], parent: Component<N>, rootNodesParent: N) {
-    visitAll(new RenderViewBuilder(parent, rootNodesParent, null, this.allBuilders, this.factory),
-             cmds);
-  }
-
   private _addChild(node: N, ngContentIndex: number) {
     var parent = this.parent;
     if (isPresent(parent)) {
@@ -194,9 +191,12 @@ class RenderViewBuilder<N> implements RenderCommandVisitor {
 class Component<N> {
   private contentNodesByNgContentIndex: N[][] = [];
   private projectingNgContentIndex: number = 0;
+  private viewBuilder: RenderViewBuilder<N>;
 
-  constructor(public hostElement: N, public shadowRoot: N, public cmd: RenderBeginComponentCmd,
-              public factory: NodeFactory<N>) {}
+  constructor(public hostElement: N, shadowRoot: N, public cmd: RenderBeginComponentCmd,
+              public factory: NodeFactory<N>, allBuilders: RenderViewBuilder<N>[]) {
+    this.viewBuilder = new RenderViewBuilder(this, shadowRoot, null, allBuilders, factory);
+  }
   addContentNode(ngContentIndex: number, node: N) {
     if (isBlank(ngContentIndex)) {
       if (this.cmd.nativeShadow) {
@@ -215,6 +215,9 @@ class Component<N> {
                this.contentNodesByNgContentIndex[ngContentIndex] :
                [];
   }
+  build() {
+    visitAll(this.viewBuilder, this.factory.resolveComponentTemplate(this.cmd.templateId));
+  }
 }
 
 function addAll(source: any[], target: any[]) {
diff --git a/modules/angular2/test/core/linker/projection_integration_spec.ts b/modules/angular2/test/core/linker/projection_integration_spec.ts
index 9955c589be..e1a443d348 100644
--- a/modules/angular2/test/core/linker/projection_integration_spec.ts
+++ b/modules/angular2/test/core/linker/projection_integration_spec.ts
@@ -112,6 +112,26 @@ export function main() {
              });
        }));
 
+    it('should project content components',
+       inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
+         tcb.overrideView(
+                Simple,
+                new ViewMetadata(
+                    {template: 'SIMPLE({{0}}|<ng-content></ng-content>|{{2}})', directives: []}))
+             .overrideView(OtherComp, new ViewMetadata({template: '{{1}}', directives: []}))
+             .overrideView(MainComp, new ViewMetadata({
+                             template: '<simple><other></other></simple>',
+                             directives: [Simple, OtherComp]
+                           }))
+             .createAsync(MainComp)
+             .then((main) => {
+
+               main.detectChanges();
+               expect(main.debugElement.nativeElement).toHaveText('SIMPLE(0|1|2)');
+               async.done();
+             });
+       }));
+
     it('should not show the light dom even if there is no content tag',
        inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
          tcb.overrideView(MainComp,
@@ -453,6 +473,12 @@ class MainComp {
   text: string = '';
 }
 
+@Component({selector: 'other'})
+@View({template: '', directives: []})
+class OtherComp {
+  text: string = '';
+}
+
 @Component({selector: 'simple', inputs: ['stringProp']})
 @View({template: 'SIMPLE(<ng-content></ng-content>)', directives: []})
 class Simple {
diff --git a/modules/angular2/test/core/render/view_factory_spec.ts b/modules/angular2/test/core/render/view_factory_spec.ts
index 7fbfd0c658..6de5731d9e 100644
--- a/modules/angular2/test/core/render/view_factory_spec.ts
+++ b/modules/angular2/test/core/render/view_factory_spec.ts
@@ -347,6 +347,28 @@ export function main() {
             .toEqual(['1.1', '1.2', '1.3', '1.4', '2.1', '2.2', '3.1', '3.1']);
       });
 
+      it('should store bound elements from the view before bound elements from content components',
+         () => {
+           componentTemplates.set(0, [
+             beginElement('a', ['id', '2.1'], [], true, null),
+             endElement(),
+           ]);
+           componentTemplates.set(1, [
+             beginElement('a', ['id', '3.1'], [], true, null),
+             endElement(),
+           ]);
+           var view = createRenderView(
+               [
+                 beginComponent('a-comp', ['id', '1.1'], [], false, null, 0),
+                 beginComponent('b-comp', ['id', '1.2'], [], false, null, 1),
+                 endComponent(),
+                 endComponent(),
+               ],
+               null, nodeFactory);
+
+           expect(mapAttrs(view.boundElements, 'id')).toEqual(['1.1', '1.2', '2.1', '3.1']);
+         });
+
       it('should store bound text nodes after the bound text nodes of the main template', () => {
         componentTemplates.set(0, [
           text('2.1', true, null),
@@ -374,6 +396,22 @@ export function main() {
       });
     });
 
+    it('should store bound text nodes from the view before bound text nodes from content components',
+       () => {
+         componentTemplates.set(0, [text('2.1', true, null)]);
+         componentTemplates.set(1, [text('3.1', true, null)]);
+         var view = createRenderView(
+             [
+               beginComponent('a-comp', [], [], false, null, 0),
+               beginComponent('b-comp', [], [], false, null, 1),
+               endComponent(),
+               endComponent(),
+             ],
+             null, nodeFactory);
+
+         expect(mapText(view.boundTextNodes)).toEqual(['2.1', '3.1']);
+       });
+
     describe('content projection', () => {
       it('should remove non projected nodes', () => {
         componentTemplates.set(0, []);