diff --git a/modules/@angular/compiler-cli/src/extract_i18n.ts b/modules/@angular/compiler-cli/src/extract_i18n.ts
index 4efcf1cbea..4e976706c1 100644
--- a/modules/@angular/compiler-cli/src/extract_i18n.ts
+++ b/modules/@angular/compiler-cli/src/extract_i18n.ts
@@ -51,9 +51,8 @@ function extract(
       case 'xliff':
       case 'xlf':
       default:
-        const htmlParser = new compiler.I18NHtmlParser(new compiler.HtmlParser());
         ext = 'xlf';
-        serializer = new compiler.Xliff(htmlParser, compiler.DEFAULT_INTERPOLATION_CONFIG);
+        serializer = new compiler.Xliff();
         break;
     }
 
diff --git a/modules/@angular/compiler/src/i18n/digest.ts b/modules/@angular/compiler/src/i18n/digest.ts
index 2b35e63b8b..895e7a167a 100644
--- a/modules/@angular/compiler/src/i18n/digest.ts
+++ b/modules/@angular/compiler/src/i18n/digest.ts
@@ -13,7 +13,9 @@ export function digest(message: i18n.Message): string {
 }
 
 export function decimalDigest(message: i18n.Message): string {
-  return fingerprint(serializeNodes(message.nodes).join('') + `[${message.meaning}]`);
+  const visitor = new _SerializerIgnoreIcuExpVisitor();
+  const parts = message.nodes.map(a => a.visit(visitor, null));
+  return fingerprint(parts.join('') + `[${message.meaning}]`);
 }
 
 /**
@@ -43,7 +45,7 @@ class _SerializerVisitor implements i18n.Visitor {
   }
 
   visitPlaceholder(ph: i18n.Placeholder, context: any): any {
-    return `<ph name="${ph.name}">${ph.value}</ph>`;
+    return ph.value ? `<ph name="${ph.name}">${ph.value}</ph>` : `<ph name="${ph.name}"/>`;
   }
 
   visitIcuPlaceholder(ph: i18n.IcuPlaceholder, context?: any): any {
@@ -57,6 +59,21 @@ export function serializeNodes(nodes: i18n.Node[]): string[] {
   return nodes.map(a => a.visit(serializerVisitor, null));
 }
 
+/**
+ * Serialize the i18n ast to something xml-like in order to generate an UID.
+ *
+ * Ignore the ICU expressions so that message IDs stays identical if only the expression changes.
+ *
+ * @internal
+ */
+class _SerializerIgnoreIcuExpVisitor extends _SerializerVisitor {
+  visitIcu(icu: i18n.Icu, context: any): any {
+    let strCases = Object.keys(icu.cases).map((k: string) => `${k} {${icu.cases[k].visit(this)}}`);
+    // Do not take the expression into account
+    return `{${icu.type}, ${strCases.join(', ')}}`;
+  }
+}
+
 /**
  * Compute the SHA1 of the given string
  *
diff --git a/modules/@angular/compiler/src/i18n/extractor_merger.ts b/modules/@angular/compiler/src/i18n/extractor_merger.ts
index 703dd2de1b..ab73961294 100644
--- a/modules/@angular/compiler/src/i18n/extractor_merger.ts
+++ b/modules/@angular/compiler/src/i18n/extractor_merger.ts
@@ -10,7 +10,6 @@ import * as html from '../ml_parser/ast';
 import {InterpolationConfig} from '../ml_parser/interpolation_config';
 import {ParseTreeResult} from '../ml_parser/parser';
 
-import {digest} from './digest';
 import * as i18n from './i18n_ast';
 import {createI18nMessageFactory} from './i18n_parser';
 import {I18nError} from './parse_util';
diff --git a/modules/@angular/compiler/src/i18n/i18n_ast.ts b/modules/@angular/compiler/src/i18n/i18n_ast.ts
index 664feec264..ee33098324 100644
--- a/modules/@angular/compiler/src/i18n/i18n_ast.ts
+++ b/modules/@angular/compiler/src/i18n/i18n_ast.ts
@@ -22,7 +22,10 @@ export class Message {
       public description: string) {}
 }
 
-export interface Node { visit(visitor: Visitor, context?: any): any; }
+export interface Node {
+  sourceSpan: ParseSourceSpan;
+  visit(visitor: Visitor, context?: any): any;
+}
 
 export class Text implements Node {
   constructor(public value: string, public sourceSpan: ParseSourceSpan) {}
@@ -30,6 +33,7 @@ export class Text implements Node {
   visit(visitor: Visitor, context?: any): any { return visitor.visitText(this, context); }
 }
 
+// TODO(vicb): do we really need this node (vs an array) ?
 export class Container implements Node {
   constructor(public children: Node[], public sourceSpan: ParseSourceSpan) {}
 
@@ -37,6 +41,7 @@ export class Container implements Node {
 }
 
 export class Icu implements Node {
+  public expressionPlaceholder: string;
   constructor(
       public expression: string, public type: string, public cases: {[k: string]: Node},
       public sourceSpan: ParseSourceSpan) {}
@@ -54,13 +59,13 @@ export class TagPlaceholder implements Node {
 }
 
 export class Placeholder implements Node {
-  constructor(public value: string, public name: string = '', public sourceSpan: ParseSourceSpan) {}
+  constructor(public value: string, public name: string, public sourceSpan: ParseSourceSpan) {}
 
   visit(visitor: Visitor, context?: any): any { return visitor.visitPlaceholder(this, context); }
 }
 
 export class IcuPlaceholder implements Node {
-  constructor(public value: Icu, public name: string = '', public sourceSpan: ParseSourceSpan) {}
+  constructor(public value: Icu, public name: string, public sourceSpan: ParseSourceSpan) {}
 
   visit(visitor: Visitor, context?: any): any { return visitor.visitIcuPlaceholder(this, context); }
 }
diff --git a/modules/@angular/compiler/src/i18n/i18n_html_parser.ts b/modules/@angular/compiler/src/i18n/i18n_html_parser.ts
index 16cfb06304..78317f944f 100644
--- a/modules/@angular/compiler/src/i18n/i18n_html_parser.ts
+++ b/modules/@angular/compiler/src/i18n/i18n_html_parser.ts
@@ -11,7 +11,6 @@ import {DEFAULT_INTERPOLATION_CONFIG, InterpolationConfig} from '../ml_parser/in
 import {ParseTreeResult} from '../ml_parser/parser';
 
 import {mergeTranslations} from './extractor_merger';
-import {MessageBundle} from './message_bundle';
 import {Serializer} from './serializers/serializer';
 import {Xliff} from './serializers/xliff';
 import {Xmb} from './serializers/xmb';
@@ -41,32 +40,29 @@ export class I18NHtmlParser implements HtmlParser {
     }
 
     // TODO(vicb): add support for implicit tags / attributes
-    const messageBundle = new MessageBundle(this._htmlParser, [], {});
-    const errors = messageBundle.updateFromTemplate(source, url, interpolationConfig);
 
-    if (errors && errors.length) {
-      return new ParseTreeResult(parseResult.rootNodes, parseResult.errors.concat(errors));
+    if (parseResult.errors.length) {
+      return new ParseTreeResult(parseResult.rootNodes, parseResult.errors);
     }
 
-    const serializer = this._createSerializer(interpolationConfig);
-    const translationBundle =
-        TranslationBundle.load(this._translations, url, messageBundle, serializer);
+    const serializer = this._createSerializer();
+    const translationBundle = TranslationBundle.load(this._translations, url, serializer);
 
     return mergeTranslations(parseResult.rootNodes, translationBundle, interpolationConfig, [], {});
   }
 
-  private _createSerializer(interpolationConfig: InterpolationConfig): Serializer {
+  private _createSerializer(): Serializer {
     const format = (this._translationsFormat || 'xlf').toLowerCase();
 
     switch (format) {
       case 'xmb':
         return new Xmb();
       case 'xtb':
-        return new Xtb(this._htmlParser, interpolationConfig);
+        return new Xtb();
       case 'xliff':
       case 'xlf':
       default:
-        return new Xliff(this._htmlParser, interpolationConfig);
+        return new Xliff();
     }
   }
 }
diff --git a/modules/@angular/compiler/src/i18n/i18n_parser.ts b/modules/@angular/compiler/src/i18n/i18n_parser.ts
index 41a6144b68..3f2856c32f 100644
--- a/modules/@angular/compiler/src/i18n/i18n_parser.ts
+++ b/modules/@angular/compiler/src/i18n/i18n_parser.ts
@@ -98,7 +98,13 @@ class _I18nVisitor implements html.Visitor {
     this._icuDepth--;
 
     if (this._isIcu || this._icuDepth > 0) {
-      // If the message (vs a part of the message) is an ICU message returns it
+      // Returns an ICU node when:
+      // - the message (vs a part of the message) is an ICU message, or
+      // - the ICU message is nested.
+      const expPh = this._placeholderRegistry.getUniquePlaceholder(`VAR_${icu.type}`);
+      i18nIcu.expressionPlaceholder = expPh;
+      this._placeholderToContent[expPh] = icu.switchValue;
+
       return i18nIcu;
     }
 
diff --git a/modules/@angular/compiler/src/i18n/serializers/placeholder.ts b/modules/@angular/compiler/src/i18n/serializers/placeholder.ts
index 4c418fbe52..6de2423069 100644
--- a/modules/@angular/compiler/src/i18n/serializers/placeholder.ts
+++ b/modules/@angular/compiler/src/i18n/serializers/placeholder.ts
@@ -95,6 +95,10 @@ export class PlaceholderRegistry {
     return uniqueName;
   }
 
+  getUniquePlaceholder(name: string): string {
+    return this._generateUniqueName(name.toUpperCase());
+  }
+
   // Generate a hash for a tag - does not take attribute order into account
   private _hashTag(tag: string, attrs: {[k: string]: string}, isVoid: boolean): string {
     const start = `<${tag}`;
diff --git a/modules/@angular/compiler/src/i18n/serializers/serializer.ts b/modules/@angular/compiler/src/i18n/serializers/serializer.ts
index 5ad5c6997c..e39d8221e9 100644
--- a/modules/@angular/compiler/src/i18n/serializers/serializer.ts
+++ b/modules/@angular/compiler/src/i18n/serializers/serializer.ts
@@ -6,14 +6,12 @@
  * found in the LICENSE file at https://angular.io/license
  */
 
-import * as html from '../../ml_parser/ast';
 import * as i18n from '../i18n_ast';
-import {MessageBundle} from '../message_bundle';
 
 export interface Serializer {
   write(messages: i18n.Message[]): string;
 
-  load(content: string, url: string, messageBundle: MessageBundle): {[id: string]: html.Node[]};
+  load(content: string, url: string): {[msgId: string]: i18n.Node[]};
 
   digest(message: i18n.Message): string;
 }
\ No newline at end of file
diff --git a/modules/@angular/compiler/src/i18n/serializers/xliff.ts b/modules/@angular/compiler/src/i18n/serializers/xliff.ts
index 0f5d1b004d..bbb066770e 100644
--- a/modules/@angular/compiler/src/i18n/serializers/xliff.ts
+++ b/modules/@angular/compiler/src/i18n/serializers/xliff.ts
@@ -7,13 +7,9 @@
  */
 
 import * as ml from '../../ml_parser/ast';
-import {HtmlParser} from '../../ml_parser/html_parser';
-import {InterpolationConfig} from '../../ml_parser/interpolation_config';
 import {XmlParser} from '../../ml_parser/xml_parser';
-import {ParseError} from '../../parse_util';
 import {digest} from '../digest';
 import * as i18n from '../i18n_ast';
-import {MessageBundle} from '../message_bundle';
 import {I18nError} from '../parse_util';
 
 import {Serializer} from './serializer';
@@ -24,6 +20,7 @@ const _XMLNS = 'urn:oasis:names:tc:xliff:document:1.2';
 // TODO(vicb): make this a param (s/_/-/)
 const _SOURCE_LANG = 'en';
 const _PLACEHOLDER_TAG = 'x';
+
 const _SOURCE_TAG = 'source';
 const _TARGET_TAG = 'target';
 const _UNIT_TAG = 'trans-unit';
@@ -31,8 +28,6 @@ const _UNIT_TAG = 'trans-unit';
 // http://docs.oasis-open.org/xliff/v1.2/os/xliff-core.html
 // http://docs.oasis-open.org/xliff/v1.2/xliff-profile-html/xliff-profile-html-1.2.html
 export class Xliff implements Serializer {
-  constructor(private _htmlParser: HtmlParser, private _interpolationConfig: InterpolationConfig) {}
-
   write(messages: i18n.Message[]): string {
     const visitor = new _WriteVisitor();
     const visited: {[id: string]: boolean} = {};
@@ -80,37 +75,25 @@ export class Xliff implements Serializer {
     ]);
   }
 
-  load(content: string, url: string, messageBundle: MessageBundle): {[id: string]: ml.Node[]} {
-    // Parse the xtb file into xml nodes
-    const result = new XmlParser().parse(content, url);
+  load(content: string, url: string): {[msgId: string]: i18n.Node[]} {
+    // xliff to xml nodes
+    const xliffParser = new XliffParser();
+    const {mlNodesByMsgId, errors} = xliffParser.parse(content, url);
 
-    if (result.errors.length) {
-      throw new Error(`xtb parse errors:\n${result.errors.join('\n')}`);
-    }
-
-    // Replace the placeholders, messages are now string
-    const {messages, errors} = new _LoadVisitor(this).parse(result.rootNodes, messageBundle);
-
-    if (errors.length) {
-      throw new Error(`xtb parse errors:\n${errors.join('\n')}`);
-    }
-
-    // Convert the string messages to html ast
-    // TODO(vicb): map error message back to the original message in xtb
-    const messageMap: {[id: string]: ml.Node[]} = {};
-    const parseErrors: ParseError[] = [];
-
-    Object.keys(messages).forEach((id) => {
-      const res = this._htmlParser.parse(messages[id], url, true, this._interpolationConfig);
-      parseErrors.push(...res.errors);
-      messageMap[id] = res.rootNodes;
+    // xml nodes to i18n nodes
+    const i18nNodesByMsgId: {[msgId: string]: i18n.Node[]} = {};
+    const converter = new XmlToI18n();
+    Object.keys(mlNodesByMsgId).forEach(msgId => {
+      const {i18nNodes, errors: e} = converter.convert(mlNodesByMsgId[msgId]);
+      errors.push(...e);
+      i18nNodesByMsgId[msgId] = i18nNodes;
     });
 
-    if (parseErrors.length) {
-      throw new Error(`xtb parse errors:\n${parseErrors.join('\n')}`);
+    if (errors.length) {
+      throw new Error(`xliff parse errors:\n${errors.join('\n')}`);
     }
 
-    return messageMap;
+    return i18nNodesByMsgId;
   }
 
   digest(message: i18n.Message): string { return digest(message); }
@@ -173,74 +156,42 @@ class _WriteVisitor implements i18n.Visitor {
 }
 
 // TODO(vicb): add error management (structure)
-// TODO(vicb): factorize (xtb) ?
-class _LoadVisitor implements ml.Visitor {
-  private _messageNodes: [string, ml.Node[]][];
-  private _translatedMessages: {[id: string]: string};
-  private _msgId: string;
-  private _target: ml.Node[];
+// Extract messages as xml nodes from the xliff file
+class XliffParser implements ml.Visitor {
+  private _unitMlNodes: ml.Node[];
   private _errors: I18nError[];
-  private _sourceMessage: i18n.Message;
+  private _mlNodesByMsgId: {[msgId: string]: ml.Node[]};
 
-  constructor(private _serializer: Serializer) {}
+  parse(xliff: string, url: string) {
+    this._unitMlNodes = [];
+    this._mlNodesByMsgId = {};
 
-  parse(nodes: ml.Node[], messageBundle: MessageBundle):
-      {messages: {[k: string]: string}, errors: I18nError[]} {
-    this._messageNodes = [];
-    this._translatedMessages = {};
-    this._msgId = '';
-    this._target = [];
-    this._errors = [];
+    const xml = new XmlParser().parse(xliff, url, false);
 
-    // Find all messages
-    ml.visitAll(this, nodes, null);
+    this._errors = xml.errors;
+    ml.visitAll(this, xml.rootNodes, null);
 
-    const messageMap: {[msgId: string]: i18n.Message} = {};
-    messageBundle.getMessages().forEach(m => messageMap[this._serializer.digest(m)] = m);
-
-    this._messageNodes
-        .filter(message => {
-          // Remove any messages that is not present in the source message bundle.
-          return messageMap.hasOwnProperty(message[0]);
-        })
-        .sort((a, b) => {
-          // Because there could be no ICU placeholdersByMsgId inside an ICU message,
-          // we do not need to take into account the `placeholderToMsgIds` of the referenced
-          // messages, those would always be empty
-          // TODO(vicb): overkill - create 2 buckets and [...woDeps, ...wDeps].process()
-          if (Object.keys(messageMap[a[0]].placeholderToMessage).length == 0) {
-            return -1;
-          }
-
-          if (Object.keys(messageMap[b[0]].placeholderToMessage).length == 0) {
-            return 1;
-          }
-
-          return 0;
-        })
-        .forEach(message => {
-          const msgId = message[0];
-          this._sourceMessage = messageMap[msgId];
-          // TODO(vicb): make sure there is no `_TRANSLATIONS_TAG` nor `_TRANSLATION_TAG`
-          this._translatedMessages[msgId] = ml.visitAll(this, message[1]).join('');
-        });
-
-    return {messages: this._translatedMessages, errors: this._errors};
+    return {
+      mlNodesByMsgId: this._mlNodesByMsgId,
+      errors: this._errors,
+    };
   }
 
   visitElement(element: ml.Element, context: any): any {
     switch (element.name) {
       case _UNIT_TAG:
-        this._target = null;
-        const msgId = element.attrs.find((attr) => attr.name === 'id');
-        if (!msgId) {
+        this._unitMlNodes = null;
+        const idAttr = element.attrs.find((attr) => attr.name === 'id');
+        if (!idAttr) {
           this._addError(element, `<${_UNIT_TAG}> misses the "id" attribute`);
         } else {
-          this._msgId = msgId.value;
-        }
-        ml.visitAll(this, element.children, null);
-        if (this._msgId !== null) {
-          this._messageNodes.push([this._msgId, this._target]);
+          const id = idAttr.value;
+          if (this._mlNodesByMsgId.hasOwnProperty(id)) {
+            this._addError(element, `Duplicated translations for msg ${id}`);
+          } else {
+            ml.visitAll(this, element.children, null);
+            this._mlNodesByMsgId[id] = this._unitMlNodes;
+          }
         }
         break;
 
@@ -249,52 +200,65 @@ class _LoadVisitor implements ml.Visitor {
         break;
 
       case _TARGET_TAG:
-        this._target = element.children;
-        break;
-
-      case _PLACEHOLDER_TAG:
-        const idAttr = element.attrs.find((attr) => attr.name === 'id');
-        if (!idAttr) {
-          this._addError(element, `<${_PLACEHOLDER_TAG}> misses the "id" attribute`);
-        } else {
-          const phName = idAttr.value;
-          if (this._sourceMessage.placeholders.hasOwnProperty(phName)) {
-            return this._sourceMessage.placeholders[phName];
-          }
-          if (this._sourceMessage.placeholderToMessage.hasOwnProperty(phName)) {
-            const refMsg = this._sourceMessage.placeholderToMessage[phName];
-            const refMsgId = this._serializer.digest(refMsg);
-            if (this._translatedMessages.hasOwnProperty(refMsgId)) {
-              return this._translatedMessages[refMsgId];
-            }
-          }
-          // TODO(vicb): better error message for when
-          // !this._translatedMessages.hasOwnProperty(this._placeholderToIds[id])
-          this._addError(
-              element, `The placeholder "${phName}" does not exists in the source message`);
-        }
+        this._unitMlNodes = element.children;
         break;
 
       default:
+        // TODO(vicb): assert file structure, xliff version
+        // For now only recurse on unhandled nodes
         ml.visitAll(this, element.children, null);
     }
   }
 
-  visitAttribute(attribute: ml.Attribute, context: any): any {
-    throw new Error('unreachable code');
+  visitAttribute(attribute: ml.Attribute, context: any): any {}
+
+  visitText(text: ml.Text, context: any): any {}
+
+  visitComment(comment: ml.Comment, context: any): any {}
+
+  visitExpansion(expansion: ml.Expansion, context: any): any {}
+
+  visitExpansionCase(expansionCase: ml.ExpansionCase, context: any): any {}
+
+  private _addError(node: ml.Node, message: string): void {
+    this._errors.push(new I18nError(node.sourceSpan, message));
+  }
+}
+
+// Convert ml nodes (xliff syntax) to i18n nodes
+class XmlToI18n implements ml.Visitor {
+  private _errors: I18nError[];
+
+  convert(nodes: ml.Node[]) {
+    this._errors = [];
+    return {
+      i18nNodes: ml.visitAll(this, nodes),
+      errors: this._errors,
+    };
   }
 
-  visitText(text: ml.Text, context: any): any { return text.value; }
+  visitText(text: ml.Text, context: any) { return new i18n.Text(text.value, text.sourceSpan); }
 
-  visitComment(comment: ml.Comment, context: any): any { return ''; }
+  visitElement(el: ml.Element, context: any): i18n.Placeholder {
+    if (el.name === _PLACEHOLDER_TAG) {
+      const nameAttr = el.attrs.find((attr) => attr.name === 'id');
+      if (nameAttr) {
+        return new i18n.Placeholder('', nameAttr.value, el.sourceSpan);
+      }
 
-  visitExpansion(expansion: ml.Expansion, context: any): any {
-    throw new Error('unreachable code');
+      this._addError(el, `<${_PLACEHOLDER_TAG}> misses the "id" attribute`);
+    } else {
+      this._addError(el, `Unexpected tag`);
+    }
   }
 
-  visitExpansionCase(expansionCase: ml.ExpansionCase, context: any): any {
-    throw new Error('unreachable code');
-  }
+  visitExpansion(icu: ml.Expansion, context: any) {}
+
+  visitExpansionCase(icuCase: ml.ExpansionCase, context: any): any {}
+
+  visitComment(comment: ml.Comment, context: any) {}
+
+  visitAttribute(attribute: ml.Attribute, context: any) {}
 
   private _addError(node: ml.Node, message: string): void {
     this._errors.push(new I18nError(node.sourceSpan, message));
diff --git a/modules/@angular/compiler/src/i18n/serializers/xmb.ts b/modules/@angular/compiler/src/i18n/serializers/xmb.ts
index 97b3934467..3834ee3938 100644
--- a/modules/@angular/compiler/src/i18n/serializers/xmb.ts
+++ b/modules/@angular/compiler/src/i18n/serializers/xmb.ts
@@ -6,10 +6,8 @@
  * found in the LICENSE file at https://angular.io/license
  */
 
-import * as html from '../../ml_parser/ast';
 import {decimalDigest} from '../digest';
 import * as i18n from '../i18n_ast';
-import {MessageBundle} from '../message_bundle';
 
 import {Serializer} from './serializer';
 import * as xml from './xml_helper';
@@ -78,7 +76,7 @@ export class Xmb implements Serializer {
     ]);
   }
 
-  load(content: string, url: string, messageBundle: MessageBundle): {[id: string]: html.Node[]} {
+  load(content: string, url: string): {[msgId: string]: i18n.Node[]} {
     throw new Error('Unsupported');
   }
 
@@ -95,7 +93,7 @@ class _Visitor implements i18n.Visitor {
   }
 
   visitIcu(icu: i18n.Icu, context?: any): xml.Node[] {
-    const nodes = [new xml.Text(`{${icu.expression}, ${icu.type}, `)];
+    const nodes = [new xml.Text(`{${icu.expressionPlaceholder}, ${icu.type}, `)];
 
     Object.keys(icu.cases).forEach((c: string) => {
       nodes.push(new xml.Text(`${c} {`), ...icu.cases[c].visit(this), new xml.Text(`} `));
diff --git a/modules/@angular/compiler/src/i18n/serializers/xtb.ts b/modules/@angular/compiler/src/i18n/serializers/xtb.ts
index a708fc9113..5fee8229b4 100644
--- a/modules/@angular/compiler/src/i18n/serializers/xtb.ts
+++ b/modules/@angular/compiler/src/i18n/serializers/xtb.ts
@@ -7,12 +7,8 @@
  */
 
 import * as ml from '../../ml_parser/ast';
-import {HtmlParser} from '../../ml_parser/html_parser';
-import {InterpolationConfig} from '../../ml_parser/interpolation_config';
 import {XmlParser} from '../../ml_parser/xml_parser';
-import {ParseError} from '../../parse_util';
 import * as i18n from '../i18n_ast';
-import {MessageBundle} from '../message_bundle';
 import {I18nError} from '../parse_util';
 
 import {Serializer} from './serializer';
@@ -23,102 +19,51 @@ const _TRANSLATION_TAG = 'translation';
 const _PLACEHOLDER_TAG = 'ph';
 
 export class Xtb implements Serializer {
-  constructor(private _htmlParser: HtmlParser, private _interpolationConfig: InterpolationConfig) {}
-
   write(messages: i18n.Message[]): string { throw new Error('Unsupported'); }
 
-  load(content: string, url: string, messageBundle: MessageBundle): {[id: string]: ml.Node[]} {
-    // Parse the xtb file into xml nodes
-    const result = new XmlParser().parse(content, url, true);
+  load(content: string, url: string): {[msgId: string]: i18n.Node[]} {
+    // xtb to xml nodes
+    const xtbParser = new XtbParser();
+    const {mlNodesByMsgId, errors} = xtbParser.parse(content, url);
 
-    if (result.errors.length) {
-      throw new Error(`xtb parse errors:\n${result.errors.join('\n')}`);
-    }
-
-    // Replace the placeholders, messages are now string
-    const {messages, errors} = new _Visitor(this).parse(result.rootNodes, messageBundle);
+    // xml nodes to i18n nodes
+    const i18nNodesByMsgId: {[msgId: string]: i18n.Node[]} = {};
+    const converter = new XmlToI18n();
+    Object.keys(mlNodesByMsgId).forEach(msgId => {
+      const {i18nNodes, errors: e} = converter.convert(mlNodesByMsgId[msgId]);
+      errors.push(...e);
+      i18nNodesByMsgId[msgId] = i18nNodes;
+    });
 
     if (errors.length) {
       throw new Error(`xtb parse errors:\n${errors.join('\n')}`);
     }
 
-    // Convert the string messages to html ast
-    // TODO(vicb): map error message back to the original message in xtb
-    const messageMap: {[id: string]: ml.Node[]} = {};
-    const parseErrors: ParseError[] = [];
-
-    Object.keys(messages).forEach((msgId) => {
-      const res = this._htmlParser.parse(messages[msgId], url, true, this._interpolationConfig);
-      parseErrors.push(...res.errors);
-      messageMap[msgId] = res.rootNodes;
-    });
-
-    if (parseErrors.length) {
-      throw new Error(`xtb parse errors:\n${parseErrors.join('\n')}`);
-    }
-
-    return messageMap;
+    return i18nNodesByMsgId;
   }
 
-  digest(message: i18n.Message): string {
-    // we must use the same digest as xmb
-    return digest(message);
-  }
+  digest(message: i18n.Message): string { return digest(message); }
 }
 
-class _Visitor implements ml.Visitor {
-  private _messageNodes: [string, ml.Node[]][];
-  private _translatedMessages: {[id: string]: string};
+// Extract messages as xml nodes from the xtb file
+class XtbParser implements ml.Visitor {
   private _bundleDepth: number;
-  private _translationDepth: number;
   private _errors: I18nError[];
-  private _sourceMessage: i18n.Message;
+  private _mlNodesByMsgId: {[msgId: string]: ml.Node[]};
 
-  constructor(private _serializer: Serializer) {}
-
-  parse(nodes: ml.Node[], messageBundle: MessageBundle):
-      {messages: {[k: string]: string}, errors: I18nError[]} {
-    // Tuple [<message id>, [ml nodes]]
-    this._messageNodes = [];
-    this._translatedMessages = {};
+  parse(xtb: string, url: string) {
     this._bundleDepth = 0;
-    this._translationDepth = 0;
-    this._errors = [];
+    this._mlNodesByMsgId = {};
 
-    // load all translations
-    ml.visitAll(this, nodes, null);
+    const xml = new XmlParser().parse(xtb, url, true);
 
-    const messageMap: {[msgId: string]: i18n.Message} = {};
-    messageBundle.getMessages().forEach(m => messageMap[this._serializer.digest(m)] = m);
+    this._errors = xml.errors;
+    ml.visitAll(this, xml.rootNodes);
 
-    this._messageNodes
-        .filter(message => {
-          // Remove any messages that is not present in the source message bundle.
-          return messageMap.hasOwnProperty(message[0]);
-        })
-        .sort((a, b) => {
-          // Because there could be no ICU placeholders inside an ICU message,
-          // we do not need to take into account the `placeholderToMsgIds` of the referenced
-          // messages, those would always be empty
-          // TODO(vicb): overkill - create 2 buckets and [...woDeps, ...wDeps].process()
-          if (Object.keys(messageMap[a[0]].placeholderToMessage).length == 0) {
-            return -1;
-          }
-
-          if (Object.keys(messageMap[b[0]].placeholderToMessage).length == 0) {
-            return 1;
-          }
-
-          return 0;
-        })
-        .forEach(message => {
-          const msgId = message[0];
-          this._sourceMessage = messageMap[msgId];
-          // TODO(vicb): make sure there is no `_TRANSLATIONS_TAG` nor `_TRANSLATION_TAG`
-          this._translatedMessages[msgId] = ml.visitAll(this, message[1]).join('');
-        });
-
-    return {messages: this._translatedMessages, errors: this._errors};
+    return {
+      mlNodesByMsgId: this._mlNodesByMsgId,
+      errors: this._errors,
+    };
   }
 
   visitElement(element: ml.Element, context: any): any {
@@ -133,43 +78,16 @@ class _Visitor implements ml.Visitor {
         break;
 
       case _TRANSLATION_TAG:
-        this._translationDepth++;
-        if (this._translationDepth > 1) {
-          this._addError(element, `<${_TRANSLATION_TAG}> elements can not be nested`);
-        }
         const idAttr = element.attrs.find((attr) => attr.name === 'id');
         if (!idAttr) {
           this._addError(element, `<${_TRANSLATION_TAG}> misses the "id" attribute`);
         } else {
-          // ICU placeholders are reference to other messages.
-          // The referenced message might not have been decoded yet.
-          // We need to have all messages available to make sure deps are decoded first.
-          // TODO(vicb): report an error on duplicate id
-          this._messageNodes.push([idAttr.value, element.children]);
-        }
-        this._translationDepth--;
-        break;
-
-      case _PLACEHOLDER_TAG:
-        const nameAttr = element.attrs.find((attr) => attr.name === 'name');
-        if (!nameAttr) {
-          this._addError(element, `<${_PLACEHOLDER_TAG}> misses the "name" attribute`);
-        } else {
-          const phName = nameAttr.value;
-          if (this._sourceMessage.placeholders.hasOwnProperty(phName)) {
-            return this._sourceMessage.placeholders[phName];
+          const id = idAttr.value;
+          if (this._mlNodesByMsgId.hasOwnProperty(id)) {
+            this._addError(element, `Duplicated translations for msg ${id}`);
+          } else {
+            this._mlNodesByMsgId[id] = element.children;
           }
-          if (this._sourceMessage.placeholderToMessage.hasOwnProperty(phName)) {
-            const refMsg = this._sourceMessage.placeholderToMessage[phName];
-            const refMsgId = this._serializer.digest(refMsg);
-            if (this._translatedMessages.hasOwnProperty(refMsgId)) {
-              return this._translatedMessages[refMsgId];
-            }
-          }
-          // TODO(vicb): better error message for when
-          // !this._translatedMessages.hasOwnProperty(refMessageId)
-          this._addError(
-              element, `The placeholder "${phName}" does not exists in the source message`);
         }
         break;
 
@@ -178,22 +96,68 @@ class _Visitor implements ml.Visitor {
     }
   }
 
-  visitAttribute(attribute: ml.Attribute, context: any): any {
-    throw new Error('unreachable code');
-  }
+  visitAttribute(attribute: ml.Attribute, context: any): any {}
 
-  visitText(text: ml.Text, context: any): any { return text.value; }
+  visitText(text: ml.Text, context: any): any {}
 
-  visitComment(comment: ml.Comment, context: any): any { return ''; }
+  visitComment(comment: ml.Comment, context: any): any {}
 
-  visitExpansion(expansion: ml.Expansion, context: any): any {
-    const strCases = expansion.cases.map(c => c.visit(this, null));
-    return `{${expansion.switchValue}, ${expansion.type}, ${strCases.join(' ')}}`;
-  }
+  visitExpansion(expansion: ml.Expansion, context: any): any {}
 
-  visitExpansionCase(expansionCase: ml.ExpansionCase, context: any): any {
-    return `${expansionCase.value} {${ml.visitAll(this, expansionCase.expression, null).join('')}}`;
-  }
+  visitExpansionCase(expansionCase: ml.ExpansionCase, context: any): any {}
+
+  private _addError(node: ml.Node, message: string): void {
+    this._errors.push(new I18nError(node.sourceSpan, message));
+  }
+}
+
+// Convert ml nodes (xtb syntax) to i18n nodes
+class XmlToI18n implements ml.Visitor {
+  private _errors: I18nError[];
+
+  convert(nodes: ml.Node[]) {
+    this._errors = [];
+    return {
+      i18nNodes: ml.visitAll(this, nodes),
+      errors: this._errors,
+    };
+  }
+
+  visitText(text: ml.Text, context: any) { return new i18n.Text(text.value, text.sourceSpan); }
+
+  visitExpansion(icu: ml.Expansion, context: any) {
+    const caseMap: {[value: string]: i18n.Node} = {};
+
+    ml.visitAll(this, icu.cases).forEach(c => {
+      caseMap[c.value] = new i18n.Container(c.nodes, icu.sourceSpan);
+    });
+
+    return new i18n.Icu(icu.switchValue, icu.type, caseMap, icu.sourceSpan);
+  }
+
+  visitExpansionCase(icuCase: ml.ExpansionCase, context: any): any {
+    return {
+      value: icuCase.value,
+      nodes: ml.visitAll(this, icuCase.expression),
+    };
+  }
+
+  visitElement(el: ml.Element, context: any): i18n.Placeholder {
+    if (el.name === _PLACEHOLDER_TAG) {
+      const nameAttr = el.attrs.find((attr) => attr.name === 'name');
+      if (nameAttr) {
+        return new i18n.Placeholder('', nameAttr.value, el.sourceSpan);
+      }
+
+      this._addError(el, `<${_PLACEHOLDER_TAG}> misses the "name" attribute`);
+    } else {
+      this._addError(el, `Unexpected tag`);
+    }
+  }
+
+  visitComment(comment: ml.Comment, context: any) {}
+
+  visitAttribute(attribute: ml.Attribute, context: any) {}
 
   private _addError(node: ml.Node, message: string): void {
     this._errors.push(new I18nError(node.sourceSpan, message));
diff --git a/modules/@angular/compiler/src/i18n/translation_bundle.ts b/modules/@angular/compiler/src/i18n/translation_bundle.ts
index b76934f166..c21cbbbb3e 100644
--- a/modules/@angular/compiler/src/i18n/translation_bundle.ts
+++ b/modules/@angular/compiler/src/i18n/translation_bundle.ts
@@ -7,27 +7,120 @@
  */
 
 import * as html from '../ml_parser/ast';
+import {HtmlParser} from '../ml_parser/html_parser';
 
-import {Message} from './i18n_ast';
-import {MessageBundle} from './message_bundle';
+import * as i18n from './i18n_ast';
+import {I18nError} from './parse_util';
 import {Serializer} from './serializers/serializer';
 
-
 /**
  * A container for translated messages
  */
 export class TranslationBundle {
-  constructor(
-      private _messageMap: {[id: string]: html.Node[]} = {},
-      public digest: (m: Message) => string) {}
+  private _i18nToHtml: I18nToHtmlVisitor;
 
-  static load(content: string, url: string, messageBundle: MessageBundle, serializer: Serializer):
-      TranslationBundle {
-    return new TranslationBundle(
-        serializer.load(content, url, messageBundle), (m: Message) => serializer.digest(m));
+  constructor(
+      private _i18nNodesByMsgId: {[msgId: string]: i18n.Node[]} = {},
+      public digest: (m: i18n.Message) => string) {
+    this._i18nToHtml = new I18nToHtmlVisitor(_i18nNodesByMsgId, digest);
   }
 
-  get(message: Message): html.Node[] { return this._messageMap[this.digest(message)]; }
+  static load(content: string, url: string, serializer: Serializer): TranslationBundle {
+    const i18nNodesByMsgId = serializer.load(content, url);
+    const digestFn = (m: i18n.Message) => serializer.digest(m);
+    return new TranslationBundle(i18nNodesByMsgId, digestFn);
+  }
 
-  has(message: Message): boolean { return this.digest(message) in this._messageMap; }
+  get(srcMsg: i18n.Message): html.Node[] {
+    const html = this._i18nToHtml.convert(srcMsg);
+
+    if (html.errors.length) {
+      throw new Error(html.errors.join('\n'));
+    }
+
+    return html.nodes;
+  }
+
+  has(srcMsg: i18n.Message): boolean { return this.digest(srcMsg) in this._i18nNodesByMsgId; }
+}
+
+class I18nToHtmlVisitor implements i18n.Visitor {
+  private _srcMsg: i18n.Message;
+  private _srcMsgStack: i18n.Message[] = [];
+  private _errors: I18nError[] = [];
+
+  constructor(
+      private _i18nNodesByMsgId: {[msgId: string]: i18n.Node[]} = {},
+      private _digest: (m: i18n.Message) => string) {}
+
+  convert(srcMsg: i18n.Message): {nodes: html.Node[], errors: I18nError[]} {
+    this._srcMsgStack.length = 0;
+    this._errors.length = 0;
+    // i18n to text
+    const text = this._convertToText(srcMsg);
+
+    // text to html
+    const url = srcMsg.nodes[0].sourceSpan.start.file.url;
+    const html = new HtmlParser().parse(text, url, true);
+
+    return {
+      nodes: html.rootNodes,
+      errors: [...this._errors, ...html.errors],
+    };
+  }
+
+  visitText(text: i18n.Text, context?: any): string { return text.value; }
+
+  visitContainer(container: i18n.Container, context?: any): any {
+    return container.children.map(n => n.visit(this)).join('');
+  }
+
+  visitIcu(icu: i18n.Icu, context?: any): any {
+    const cases = Object.keys(icu.cases).map(k => `${k} {${icu.cases[k].visit(this)}}`);
+
+    // TODO(vicb): Once all format switch to using expression placeholders
+    // we should throw when the placeholder is not in the source message
+    const exp = this._srcMsg.placeholders.hasOwnProperty(icu.expression) ?
+        this._srcMsg.placeholders[icu.expression] :
+        icu.expression;
+
+    return `{${exp}, ${icu.type}, ${cases.join(' ')}}`;
+  }
+
+  visitPlaceholder(ph: i18n.Placeholder, context?: any): string {
+    const phName = ph.name;
+    if (this._srcMsg.placeholders.hasOwnProperty(phName)) {
+      return this._srcMsg.placeholders[phName];
+    }
+
+    if (this._srcMsg.placeholderToMessage.hasOwnProperty(phName)) {
+      return this._convertToText(this._srcMsg.placeholderToMessage[phName]);
+    }
+
+    this._addError(ph, `Unknown placeholder`);
+    return '';
+  }
+
+  visitTagPlaceholder(ph: i18n.TagPlaceholder, context?: any): any { throw 'unreachable code'; }
+
+  visitIcuPlaceholder(ph: i18n.IcuPlaceholder, context?: any): any { throw 'unreachable code'; }
+
+  private _convertToText(srcMsg: i18n.Message): string {
+    const digest = this._digest(srcMsg);
+    if (this._i18nNodesByMsgId.hasOwnProperty(digest)) {
+      this._srcMsgStack.push(this._srcMsg);
+      this._srcMsg = srcMsg;
+      const nodes = this._i18nNodesByMsgId[digest];
+      const text = nodes.map(node => node.visit(this)).join('');
+      this._srcMsg = this._srcMsgStack.pop();
+      return text;
+    }
+
+    this._addError(srcMsg.nodes[0], `Missing translation for message ${digest}`);
+    return '';
+  }
+
+  private _addError(el: i18n.Node, msg: string) {
+    this._errors.push(new I18nError(el.sourceSpan, msg));
+  }
 }
\ No newline at end of file
diff --git a/modules/@angular/compiler/src/util.ts b/modules/@angular/compiler/src/util.ts
index 48fa10fb18..cfddfb1142 100644
--- a/modules/@angular/compiler/src/util.ts
+++ b/modules/@angular/compiler/src/util.ts
@@ -6,7 +6,7 @@
  * found in the LICENSE file at https://angular.io/license
  */
 
-import {isBlank, isPrimitive, isStrictStringMap} from './facade/lang';
+import {isPrimitive, isStrictStringMap} from './facade/lang';
 
 export const MODULE_SUFFIX = '';
 
@@ -48,7 +48,7 @@ export function visitValue(value: any, visitor: ValueVisitor, context: any): any
     return visitor.visitStringMap(<{[key: string]: any}>value, context);
   }
 
-  if (isBlank(value) || isPrimitive(value)) {
+  if (value == null || isPrimitive(value)) {
     return visitor.visitPrimitive(value, context);
   }
 
diff --git a/modules/@angular/compiler/test/i18n/digest_spec.ts b/modules/@angular/compiler/test/i18n/digest_spec.ts
index bd5e579632..3fdc817e59 100644
--- a/modules/@angular/compiler/test/i18n/digest_spec.ts
+++ b/modules/@angular/compiler/test/i18n/digest_spec.ts
@@ -6,8 +6,6 @@
  * found in the LICENSE file at https://angular.io/license
  */
 
-import {describe, expect, it} from '@angular/core/testing/testing_internal';
-
 import {fingerprint, sha1} from '../../src/i18n/digest';
 
 export function main(): void {
diff --git a/modules/@angular/compiler/test/i18n/extractor_merger_spec.ts b/modules/@angular/compiler/test/i18n/extractor_merger_spec.ts
index acda260f59..c175425507 100644
--- a/modules/@angular/compiler/test/i18n/extractor_merger_spec.ts
+++ b/modules/@angular/compiler/test/i18n/extractor_merger_spec.ts
@@ -7,7 +7,6 @@
  */
 
 import {DEFAULT_INTERPOLATION_CONFIG, HtmlParser} from '@angular/compiler';
-import {describe, expect, it} from '@angular/core/testing/testing_internal';
 
 import {digest, serializeNodes as serializeI18nNodes} from '../../src/i18n/digest';
 import {extractMessages, mergeTranslations} from '../../src/i18n/extractor_merger';
@@ -93,9 +92,10 @@ export function main() {
               ],
               [
                 [
-                  'text',
-                  '<ph tag name="START_PARAGRAPH">html, <ph tag name="START_BOLD_TEXT">nested</ph name="CLOSE_BOLD_TEXT"></ph name="CLOSE_PARAGRAPH">',
-                  '<ph icu name="ICU">{count, plural, =0 {[<ph tag name="START_TAG_SPAN">html</ph name="CLOSE_TAG_SPAN">]}}</ph>',
+                  'text', '<ph tag name="START_PARAGRAPH">html, <ph tag' +
+                      ' name="START_BOLD_TEXT">nested</ph name="CLOSE_BOLD_TEXT"></ph name="CLOSE_PARAGRAPH">',
+                  '<ph icu name="ICU">{count, plural, =0 {[<ph tag' +
+                      ' name="START_TAG_SPAN">html</ph name="CLOSE_TAG_SPAN">]}}</ph>',
                   '[<ph name="INTERPOLATION">interp</ph>]'
                 ],
                 '', ''
@@ -189,9 +189,8 @@ export function main() {
       it('should extract from attributes in translatable elements', () => {
         expect(extract('<div i18n><p><b i18n-title="m|d" title="msg"></b></p></div>')).toEqual([
           [
-            [
-              '<ph tag name="START_PARAGRAPH"><ph tag name="START_BOLD_TEXT"></ph name="CLOSE_BOLD_TEXT"></ph name="CLOSE_PARAGRAPH">'
-            ],
+            ['<ph tag name="START_PARAGRAPH"><ph tag name="START_BOLD_TEXT"></ph' +
+             ' name="CLOSE_BOLD_TEXT"></ph name="CLOSE_PARAGRAPH">'],
             '', ''
           ],
           [['msg'], 'm', 'd'],
@@ -203,9 +202,8 @@ export function main() {
             .toEqual([
               [['msg'], 'm', 'd'],
               [
-                [
-                  '<ph tag name="START_PARAGRAPH"><ph tag name="START_BOLD_TEXT"></ph name="CLOSE_BOLD_TEXT"></ph name="CLOSE_PARAGRAPH">'
-                ],
+                ['<ph tag name="START_PARAGRAPH"><ph tag name="START_BOLD_TEXT"></ph' +
+                 ' name="CLOSE_BOLD_TEXT"></ph name="CLOSE_PARAGRAPH">'],
                 '', ''
               ],
             ]);
@@ -219,7 +217,8 @@ export function main() {
               [['msg'], 'm', 'd'],
               [
                 [
-                  '{count, plural, =0 {[<ph tag name="START_PARAGRAPH"><ph tag name="START_BOLD_TEXT"></ph name="CLOSE_BOLD_TEXT"></ph name="CLOSE_PARAGRAPH">]}}'
+                  '{count, plural, =0 {[<ph tag name="START_PARAGRAPH"><ph tag' +
+                  ' name="START_BOLD_TEXT"></ph name="CLOSE_BOLD_TEXT"></ph name="CLOSE_PARAGRAPH">]}}'
                 ],
                 '', ''
               ],
@@ -350,7 +349,9 @@ export function main() {
         const HTML = `before<!-- i18n --><p>foo</p><span><i>bar</i></span><!-- /i18n -->after`;
         expect(fakeTranslate(HTML))
             .toEqual(
-                'before**<ph tag name="START_PARAGRAPH">foo</ph name="CLOSE_PARAGRAPH"><ph tag name="START_TAG_SPAN"><ph tag name="START_ITALIC_TEXT">bar</ph name="CLOSE_ITALIC_TEXT"></ph name="CLOSE_TAG_SPAN">**after');
+                'before**[ph tag name="START_PARAGRAPH">foo[/ph name="CLOSE_PARAGRAPH">[ph tag' +
+                ' name="START_TAG_SPAN">[ph tag name="START_ITALIC_TEXT">bar[/ph' +
+                ' name="CLOSE_ITALIC_TEXT">[/ph name="CLOSE_TAG_SPAN">**after');
       });
 
       it('should merge nested blocks', () => {
@@ -358,7 +359,9 @@ export function main() {
             `<div>before<!-- i18n --><p>foo</p><span><i>bar</i></span><!-- /i18n -->after</div>`;
         expect(fakeTranslate(HTML))
             .toEqual(
-                '<div>before**<ph tag name="START_PARAGRAPH">foo</ph name="CLOSE_PARAGRAPH"><ph tag name="START_TAG_SPAN"><ph tag name="START_ITALIC_TEXT">bar</ph name="CLOSE_ITALIC_TEXT"></ph name="CLOSE_TAG_SPAN">**after</div>');
+                '<div>before**[ph tag name="START_PARAGRAPH">foo[/ph name="CLOSE_PARAGRAPH">[ph' +
+                ' tag name="START_TAG_SPAN">[ph tag name="START_ITALIC_TEXT">bar[/ph' +
+                ' name="CLOSE_ITALIC_TEXT">[/ph name="CLOSE_TAG_SPAN">**after</div>');
       });
     });
 
@@ -399,12 +402,12 @@ function fakeTranslate(
       extractMessages(htmlNodes, DEFAULT_INTERPOLATION_CONFIG, implicitTags, implicitAttrs)
           .messages;
 
-  const i18nMsgMap: {[id: string]: html.Node[]} = {};
+  const i18nMsgMap: {[id: string]: i18n.Node[]} = {};
 
   messages.forEach(message => {
     const id = digest(message);
-    const text = serializeI18nNodes(message.nodes).join('');
-    i18nMsgMap[id] = [new html.Text(`**${text}**`, null)];
+    const text = serializeI18nNodes(message.nodes).join('').replace(/</g, '[');
+    i18nMsgMap[id] = [new i18n.Text(`**${text}**`, null)];
   });
 
   const translations = new TranslationBundle(i18nMsgMap, digest);
diff --git a/modules/@angular/compiler/test/i18n/i18n_parser_spec.ts b/modules/@angular/compiler/test/i18n/i18n_parser_spec.ts
index 245b34cf98..023b3b9a04 100644
--- a/modules/@angular/compiler/test/i18n/i18n_parser_spec.ts
+++ b/modules/@angular/compiler/test/i18n/i18n_parser_spec.ts
@@ -9,7 +9,6 @@
 import {digest} from '@angular/compiler/src/i18n/digest';
 import {extractMessages} from '@angular/compiler/src/i18n/extractor_merger';
 import {Message} from '@angular/compiler/src/i18n/i18n_ast';
-import {describe, expect, it} from '@angular/core/testing/testing_internal';
 
 import {serializeNodes} from '../../src/i18n/digest';
 import {HtmlParser} from '../../src/ml_parser/html_parser';
@@ -273,9 +272,12 @@ export function main() {
           [['{count, plural, =1 {[1]}}'], '', ''],
         ]);
 
-        // ICU message placeholders are reference to translations.
-        // As such they have no static content but refs to message ids.
-        expect(_humanizePlaceholders(html)).toEqual(['', '', '', '']);
+        expect(_humanizePlaceholders(html)).toEqual([
+          '',
+          'VAR_PLURAL=count',
+          'VAR_PLURAL=count',
+          'VAR_PLURAL=count',
+        ]);
 
         expect(_humanizePlaceholdersToMessage(html)).toEqual([
           'ICU=f0f76923009914f1b05f41042a5c7231b9496504, ICU_1=73693d1f78d0fc882f0bcbce4cb31a0aa1995cfe',
diff --git a/modules/@angular/compiler/test/i18n/integration_spec.ts b/modules/@angular/compiler/test/i18n/integration_spec.ts
index 7016e8d06d..27381a0efc 100644
--- a/modules/@angular/compiler/test/i18n/integration_spec.ts
+++ b/modules/@angular/compiler/test/i18n/integration_spec.ts
@@ -43,6 +43,9 @@ export function main() {
       expectHtml(el, '#i18n-2').toBe('<div id="i18n-2"><p>imbriqué</p></div>');
       expectHtml(el, '#i18n-3')
           .toBe('<div id="i18n-3"><p><i>avec des espaces réservés</i></p></div>');
+      expectHtml(el, '#i18n-3b')
+          .toBe(
+              '<div id="i18n-3b"><p><i class="preserved-on-placeholders">avec des espaces réservés</i></p></div>');
       expectHtml(el, '#i18n-4')
           .toBe('<p id="i18n-4" title="sur des balises non traductibles"></p>');
       expectHtml(el, '#i18n-5').toBe('<p id="i18n-5" title="sur des balises traductibles"></p>');
@@ -66,8 +69,10 @@ export function main() {
       expect(el.query(By.css('#i18n-14')).nativeElement).toHaveText('beaucoup');
 
       cmp.sex = 'm';
+      cmp.sexB = 'f';
       tb.detectChanges();
       expect(el.query(By.css('#i18n-8')).nativeElement).toHaveText('homme');
+      expect(el.query(By.css('#i18n-8b')).nativeElement).toHaveText('femme');
       cmp.sex = 'f';
       tb.detectChanges();
       expect(el.query(By.css('#i18n-8')).nativeElement).toHaveText('femme');
@@ -106,6 +111,7 @@ function expectHtml(el: DebugElement, cssSelector: string): any {
     <div id="i18n-2"><p i18n="different meaning|">nested</p></div>
     
     <div id="i18n-3"><p i18n><i>with placeholders</i></p></div>
+    <div id="i18n-3b"><p i18n><i class="preserved-on-placeholders">with placeholders</i></p></div>
     
     <div>
         <p id="i18n-4" i18n-title title="on not translatable node"></p>
@@ -119,6 +125,9 @@ function expectHtml(el: DebugElement, cssSelector: string): any {
     <div i18n id="i18n-8">
         {sex, select, m {male} f {female}}
     </div>
+    <div i18n id="i18n-8b">
+        {sexB, select, m {male} f {female}}
+    </div>
     
     <div i18n id="i18n-9">{{ "count = " + count }}</div>
     <div i18n id="i18n-10">sex = {{ sex }}</div>
@@ -135,8 +144,9 @@ function expectHtml(el: DebugElement, cssSelector: string): any {
 `
 })
 class I18nComponent {
-  count: number = 0;
-  sex: string = 'm';
+  count: number;
+  sex: string;
+  sexB: string;
 }
 
 class FrLocalization extends NgLocalization {
@@ -159,14 +169,14 @@ const XTB = `
   <translation id="7210334813789040330"><ph name="START_ITALIC_TEXT"/>avec des espaces réservés<ph name="CLOSE_ITALIC_TEXT"/></translation>
   <translation id="4769680004784140786">sur des balises non traductibles</translation>
   <translation id="4033143013932333681">sur des balises traductibles</translation>
-  <translation id="6304278477201429103">{count, plural, =0 {zero} =1 {un} =2 {deux} other {<ph name="START_BOLD_TEXT"/>beaucoup<ph name="CLOSE_BOLD_TEXT"/>}}</translation>
-  <translation id="7235359853951837339"><ph name="ICU"/></translation>
-  <translation id="3159329131322704158">{sex, select, m {homme} f {femme}}</translation>
+  <translation id="6162642997206060264">{VAR_PLURAL, plural, =0 {zero} =1 {un} =2 {deux} other {<ph name="START_BOLD_TEXT"/>beaucoup<ph name="CLOSE_BOLD_TEXT"/>}}</translation>
+  <translation id="1882489820012923152"><ph name="ICU"/></translation>
+  <translation id="4822972059757846302">{VAR_SELECT, select, m {homme} f {femme}}</translation>
   <translation id="5917557396782931034"><ph name="INTERPOLATION"/></translation>
   <translation id="4687596778889597732">sexe = <ph name="INTERPOLATION"/></translation>
   <translation id="2505882222003102347"><ph name="CUSTOM_NAME"/></translation>
   <translation id="5340176214595489533">dans une section traductible</translation>
-  <translation id="8173674801943621225">
+  <translation id="4120782520649528473">
     <ph name="START_HEADING_LEVEL1"/>Balises dans les commentaires html<ph name="CLOSE_HEADING_LEVEL1"/>   
     <ph name="START_TAG_DIV"/><ph name="CLOSE_TAG_DIV"/>
     <ph name="START_TAG_DIV_1"/><ph name="ICU"/><ph name="CLOSE_TAG_DIV"></ph>
@@ -185,16 +195,16 @@ const XMB = `
   <msg id="7210334813789040330"><ph name="START_ITALIC_TEXT"><ex>&lt;i&gt;</ex></ph>with placeholders<ph name="CLOSE_ITALIC_TEXT"><ex>&lt;/i&gt;</ex></ph></msg>
   <msg id="4769680004784140786">on not translatable node</msg>
   <msg id="4033143013932333681">on translatable node</msg>
-  <msg id="6304278477201429103">{count, plural, =0 {zero} =1 {one} =2 {two} other {<ph name="START_BOLD_TEXT"><ex>&lt;b&gt;</ex></ph>many<ph name="CLOSE_BOLD_TEXT"><ex>&lt;/b&gt;</ex></ph>} }</msg>
-  <msg id="7235359853951837339">
+  <msg id="6162642997206060264">{VAR_PLURAL, plural, =0 {zero} =1 {one} =2 {two} other {<ph name="START_BOLD_TEXT"><ex>&lt;b&gt;</ex></ph>many<ph name="CLOSE_BOLD_TEXT"><ex>&lt;/b&gt;</ex></ph>} }</msg>
+  <msg id="1882489820012923152">
         <ph name="ICU"/>
     </msg>
-  <msg id="3159329131322704158">{sex, select, m {male} f {female} }</msg>
+  <msg id="4822972059757846302">{VAR_SELECT, select, m {male} f {female} }</msg>
   <msg id="5917557396782931034"><ph name="INTERPOLATION"/></msg>
   <msg id="4687596778889597732">sex = <ph name="INTERPOLATION"/></msg>
   <msg id="2505882222003102347"><ph name="CUSTOM_NAME"/></msg>
   <msg id="5340176214595489533">in a translatable section</msg>
-  <msg id="8173674801943621225">
+  <msg id="4120782520649528473">
     <ph name="START_HEADING_LEVEL1"><ex>&lt;h1&gt;</ex></ph>Markers in html comments<ph name="CLOSE_HEADING_LEVEL1"><ex>&lt;/h1&gt;</ex></ph>   
     <ph name="START_TAG_DIV"><ex>&lt;div&gt;</ex></ph><ph name="CLOSE_TAG_DIV"><ex>&lt;/div&gt;</ex></ph>
     <ph name="START_TAG_DIV_1"><ex>&lt;div&gt;</ex></ph><ph name="ICU"/><ph name="CLOSE_TAG_DIV"><ex>&lt;/div&gt;</ex></ph>
diff --git a/modules/@angular/compiler/test/i18n/message_bundle_spec.ts b/modules/@angular/compiler/test/i18n/message_bundle_spec.ts
index ed1692094f..b82a30322b 100644
--- a/modules/@angular/compiler/test/i18n/message_bundle_spec.ts
+++ b/modules/@angular/compiler/test/i18n/message_bundle_spec.ts
@@ -6,12 +6,10 @@
  * found in the LICENSE file at https://angular.io/license
  */
 
-import * as i18n from '@angular/compiler/src/i18n/i18n_ast';
-import {Serializer} from '@angular/compiler/src/i18n/serializers/serializer';
-import {beforeEach, describe, expect, it} from '@angular/core/testing/testing_internal';
-
 import {serializeNodes} from '../../src/i18n/digest';
+import * as i18n from '../../src/i18n/i18n_ast';
 import {MessageBundle} from '../../src/i18n/message_bundle';
+import {Serializer} from '../../src/i18n/serializers/serializer';
 import {HtmlParser} from '../../src/ml_parser/html_parser';
 import {DEFAULT_INTERPOLATION_CONFIG} from '../../src/ml_parser/interpolation_config';
 
@@ -50,7 +48,7 @@ class _TestSerializer implements Serializer {
         .join('//');
   }
 
-  load(content: string, url: string, placeholders: {}): {} { return null; }
+  load(content: string, url: string): {} { return null; }
 
   digest(msg: i18n.Message): string { return 'unused'; }
 }
diff --git a/modules/@angular/compiler/test/i18n/serializers/placeholder_spec.ts b/modules/@angular/compiler/test/i18n/serializers/placeholder_spec.ts
index ce6e3b1811..eb068695c0 100644
--- a/modules/@angular/compiler/test/i18n/serializers/placeholder_spec.ts
+++ b/modules/@angular/compiler/test/i18n/serializers/placeholder_spec.ts
@@ -6,8 +6,6 @@
  * found in the LICENSE file at https://angular.io/license
  */
 
-import {beforeEach, describe, expect, it} from '@angular/core/testing/testing_internal';
-
 import {PlaceholderRegistry} from '../../../src/i18n/serializers/placeholder';
 
 export function main(): void {
diff --git a/modules/@angular/compiler/test/i18n/serializers/xliff_spec.ts b/modules/@angular/compiler/test/i18n/serializers/xliff_spec.ts
index 43639813c0..2dcadf090d 100644
--- a/modules/@angular/compiler/test/i18n/serializers/xliff_spec.ts
+++ b/modules/@angular/compiler/test/i18n/serializers/xliff_spec.ts
@@ -6,12 +6,13 @@
  * found in the LICENSE file at https://angular.io/license
  */
 
-import {Xliff} from '@angular/compiler/src/i18n/serializers/xliff';
-import {beforeEach, describe, expect, it} from '@angular/core/testing/testing_internal';
+import {escapeRegExp} from '@angular/core/src/facade/lang';
+
+import {serializeNodes} from '../../../src/i18n/digest';
 import {MessageBundle} from '../../../src/i18n/message_bundle';
+import {Xliff} from '../../../src/i18n/serializers/xliff';
 import {HtmlParser} from '../../../src/ml_parser/html_parser';
 import {DEFAULT_INTERPOLATION_CONFIG} from '../../../src/ml_parser/interpolation_config';
-import {serializeNodes} from '../../ml_parser/ast_serializer_spec';
 
 const HTML = `
 <p i18n-title title="translatable attribute">not translatable</p>
@@ -77,8 +78,7 @@ const LOAD_XLIFF = `<?xml version="1.0" encoding="UTF-8" ?>
 `;
 
 export function main(): void {
-  let serializer: Xliff;
-  let htmlParser: HtmlParser;
+  const serializer = new Xliff();
 
   function toXliff(html: string): string {
     const catalog = new MessageBundle(new HtmlParser, [], {});
@@ -86,37 +86,89 @@ export function main(): void {
     return catalog.write(serializer);
   }
 
-  function loadAsText(template: string, xliff: string): {[id: string]: string} {
-    const messageBundle = new MessageBundle(htmlParser, [], {});
-    messageBundle.updateFromTemplate(template, 'url', DEFAULT_INTERPOLATION_CONFIG);
+  function loadAsMap(xliff: string): {[id: string]: string} {
+    const i18nNodesByMsgId = serializer.load(xliff, 'url');
+    const msgMap: {[id: string]: string} = {};
+    Object.keys(i18nNodesByMsgId)
+        .forEach(id => msgMap[id] = serializeNodes(i18nNodesByMsgId[id]).join(''));
 
-    const asAst = serializer.load(xliff, 'url', messageBundle);
-    const asText: {[id: string]: string} = {};
-    Object.keys(asAst).forEach(id => { asText[id] = serializeNodes(asAst[id]).join(''); });
-
-    return asText;
+    return msgMap;
   }
 
   describe('XLIFF serializer', () => {
-
-    beforeEach(() => {
-      htmlParser = new HtmlParser();
-      serializer = new Xliff(htmlParser, DEFAULT_INTERPOLATION_CONFIG);
-    });
-
-
     describe('write', () => {
       it('should write a valid xliff file', () => { expect(toXliff(HTML)).toEqual(WRITE_XLIFF); });
     });
 
     describe('load', () => {
       it('should load XLIFF files', () => {
-        expect(loadAsText(HTML, LOAD_XLIFF)).toEqual({
+        expect(loadAsMap(LOAD_XLIFF)).toEqual({
           '983775b9a51ce14b036be72d4cfd65d68d64e231': 'etubirtta elbatalsnart',
           'ec1d033f2436133c14ab038286c4f5df4697484a':
-              '{{ interpolation}} footnemele elbatalsnart <b>sredlohecalp htiw</b>',
+              '<ph name="INTERPOLATION"/> footnemele elbatalsnart <ph name="START_BOLD_TEXT"/>sredlohecalp htiw<ph name="CLOSE_BOLD_TEXT"/>',
           'db3e0a6a5a96481f60aec61d98c3eecddef5ac23': 'oof',
-          'd7fa2d59aaedcaa5309f13028c59af8c85b8c49d': '<div></div><img/><br/>',
+          'd7fa2d59aaedcaa5309f13028c59af8c85b8c49d':
+              '<ph name="START_TAG_DIV"/><ph name="CLOSE_TAG_DIV"/><ph name="TAG_IMG"/><ph name="LINE_BREAK"/>',
+        });
+      });
+
+      describe('errors', () => {
+        it('should throw when a placeholder has no id attribute', () => {
+          const XLIFF = `<?xml version="1.0" encoding="UTF-8" ?>
+<xliff version="1.2" xmlns="urn:oasis:names:tc:xliff:document:1.2">
+  <file source-language="en" datatype="plaintext" original="ng2.template">
+    <body>
+      <trans-unit datatype="html">
+        <source/>
+        <target/>
+      </trans-unit>
+    </body>
+  </file>
+</xliff>`;
+
+          expect(() => {
+            loadAsMap(XLIFF);
+          }).toThrowError(/<trans-unit> misses the "id" attribute/);
+        });
+
+        it('should throw on unknown message tags', () => {
+          const XLIFF = `<?xml version="1.0" encoding="UTF-8" ?>
+<xliff version="1.2" xmlns="urn:oasis:names:tc:xliff:document:1.2">
+  <file source-language="en" datatype="plaintext" original="ng2.template">
+    <body>
+      <trans-unit id="deadbeef" datatype="html">
+        <source/>
+        <target><b>msg should contain only ph tags</b></target>
+      </trans-unit>
+    </body>
+  </file>
+</xliff>`;
+
+          expect(() => { loadAsMap(XLIFF); })
+              .toThrowError(
+                  new RegExp(escapeRegExp(`[ERROR ->]<b>msg should contain only ph tags</b>`)));
+        });
+
+        it('should throw when a placeholder has no name attribute', () => {
+          const XLIFF = `<?xml version="1.0" encoding="UTF-8" ?>
+<xliff version="1.2" xmlns="urn:oasis:names:tc:xliff:document:1.2">
+  <file source-language="en" datatype="plaintext" original="ng2.template">
+    <body>
+      <trans-unit id="deadbeef">
+        <source/>
+        <target/>
+      </trans-unit>
+      <trans-unit id="deadbeef">
+        <source/>
+        <target/>
+      </trans-unit>
+    </body>
+  </file>
+</xliff>`;
+
+          expect(() => {
+            loadAsMap(XLIFF);
+          }).toThrowError(/Duplicated translations for msg deadbeef/);
         });
       });
     });
diff --git a/modules/@angular/compiler/test/i18n/serializers/xmb_spec.ts b/modules/@angular/compiler/test/i18n/serializers/xmb_spec.ts
index 315a451c05..0b00577c0a 100644
--- a/modules/@angular/compiler/test/i18n/serializers/xmb_spec.ts
+++ b/modules/@angular/compiler/test/i18n/serializers/xmb_spec.ts
@@ -44,9 +44,9 @@ export function main(): void {
 ]>
 <messagebundle>
   <msg id="2348600990161399314">translatable element <ph name="START_BOLD_TEXT"><ex>&lt;b&gt;</ex></ph>with placeholders<ph name="CLOSE_BOLD_TEXT"><ex>&lt;/b&gt;</ex></ph> <ph name="INTERPOLATION"/></msg>
-  <msg id="8332678508949127113">{ count, plural, =0 {<ph name="START_PARAGRAPH"><ex>&lt;p&gt;</ex></ph>test<ph name="CLOSE_PARAGRAPH"><ex>&lt;/p&gt;</ex></ph>} }</msg>
+  <msg id="5525949440406338075">{VAR_PLURAL, plural, =0 {<ph name="START_PARAGRAPH"><ex>&lt;p&gt;</ex></ph>test<ph name="CLOSE_PARAGRAPH"><ex>&lt;/p&gt;</ex></ph>} }</msg>
   <msg id="130772889486467622" desc="d" meaning="m">foo</msg>
-  <msg id="5848862331224404557">{ count, plural, =0 {{ sex, gender, other {<ph name="START_PARAGRAPH"><ex>&lt;p&gt;</ex></ph>deeply nested<ph name="CLOSE_PARAGRAPH"><ex>&lt;/p&gt;</ex></ph>} } } }</msg>
+  <msg id="9095788995532341072">{VAR_PLURAL, plural, =0 {{VAR_GENDER, gender, other {<ph name="START_PARAGRAPH"><ex>&lt;p&gt;</ex></ph>deeply nested<ph name="CLOSE_PARAGRAPH"><ex>&lt;/p&gt;</ex></ph>} } } }</msg>
 </messagebundle>
 `;
 
@@ -55,7 +55,7 @@ export function main(): void {
     it('should throw when trying to load an xmb file', () => {
       expect(() => {
         const serializer = new Xmb();
-        serializer.load(XMB, 'url', null);
+        serializer.load(XMB, 'url');
       }).toThrowError(/Unsupported/);
     });
   });
diff --git a/modules/@angular/compiler/test/i18n/serializers/xml_helper_spec.ts b/modules/@angular/compiler/test/i18n/serializers/xml_helper_spec.ts
index 8bcd7e3d30..e1f9215b4d 100644
--- a/modules/@angular/compiler/test/i18n/serializers/xml_helper_spec.ts
+++ b/modules/@angular/compiler/test/i18n/serializers/xml_helper_spec.ts
@@ -6,8 +6,6 @@
  * found in the LICENSE file at https://angular.io/license
  */
 
-import {describe, expect, it} from '@angular/core/testing/testing_internal';
-
 import * as xml from '../../../src/i18n/serializers/xml_helper';
 
 export function main(): void {
diff --git a/modules/@angular/compiler/test/i18n/serializers/xtb_spec.ts b/modules/@angular/compiler/test/i18n/serializers/xtb_spec.ts
index 2b8d0828d4..57c9c52693 100644
--- a/modules/@angular/compiler/test/i18n/serializers/xtb_spec.ts
+++ b/modules/@angular/compiler/test/i18n/serializers/xtb_spec.ts
@@ -8,37 +8,24 @@
 
 import {escapeRegExp} from '@angular/core/src/facade/lang';
 
-import {MessageBundle} from '../../../src/i18n/message_bundle';
+import {serializeNodes} from '../../../src/i18n/digest';
 import {Xtb} from '../../../src/i18n/serializers/xtb';
-import {HtmlParser} from '../../../src/ml_parser/html_parser';
-import {DEFAULT_INTERPOLATION_CONFIG} from '../../../src/ml_parser/interpolation_config';
-import {serializeNodes} from '../../ml_parser/ast_serializer_spec';
 
 export function main(): void {
   describe('XTB serializer', () => {
-    let serializer: Xtb;
-    let htmlParser: HtmlParser;
+    const serializer = new Xtb();
 
-    function loadAsText(template: string, xtb: string): {[id: string]: string} {
-      const messageBundle = new MessageBundle(htmlParser, [], {});
-      messageBundle.updateFromTemplate(template, 'url', DEFAULT_INTERPOLATION_CONFIG);
-
-      const asAst = serializer.load(xtb, 'url', messageBundle);
-      const asText: {[id: string]: string} = {};
-      Object.keys(asAst).forEach(id => { asText[id] = serializeNodes(asAst[id]).join(''); });
-
-      return asText;
+    function loadAsMap(xtb: string): {[id: string]: string} {
+      const i18nNodesByMsgId = serializer.load(xtb, 'url');
+      const msgMap: {[id: string]: string} = {};
+      Object.keys(i18nNodesByMsgId).forEach(id => {
+        msgMap[id] = serializeNodes(i18nNodesByMsgId[id]).join('');
+      });
+      return msgMap;
     }
 
-    beforeEach(() => {
-      htmlParser = new HtmlParser();
-      serializer = new Xtb(htmlParser, DEFAULT_INTERPOLATION_CONFIG);
-    });
-
     describe('load', () => {
       it('should load XTB files with a doctype', () => {
-        const HTML = `<div i18n>bar</div>`;
-
         const XTB = `<?xml version="1.0" encoding="UTF-8"?>
 <!DOCTYPE translationbundle [<!ELEMENT translationbundle (translation)*>
 <!ATTLIST translationbundle lang CDATA #REQUIRED>
@@ -53,67 +40,61 @@ export function main(): void {
   <translation id="8841459487341224498">rab</translation>
 </translationbundle>`;
 
-        expect(loadAsText(HTML, XTB)).toEqual({'8841459487341224498': 'rab'});
+        expect(loadAsMap(XTB)).toEqual({'8841459487341224498': 'rab'});
       });
 
       it('should load XTB files without placeholders', () => {
-        const HTML = `<div i18n>bar</div>`;
-
         const XTB = `<?xml version="1.0" encoding="UTF-8"?>
 <translationbundle>
   <translation id="8841459487341224498">rab</translation>
 </translationbundle>`;
 
-        expect(loadAsText(HTML, XTB)).toEqual({'8841459487341224498': 'rab'});
+        expect(loadAsMap(XTB)).toEqual({'8841459487341224498': 'rab'});
       });
 
 
       it('should load XTB files with placeholders', () => {
-        const HTML = `<div i18n><p>bar</p></div>`;
-
         const XTB = `<?xml version="1.0" encoding="UTF-8"?>
 <translationbundle>
   <translation id="8877975308926375834"><ph name="START_PARAGRAPH"/>rab<ph name="CLOSE_PARAGRAPH"/></translation>
 </translationbundle>`;
 
-        expect(loadAsText(HTML, XTB)).toEqual({'8877975308926375834': '<p>rab</p>'});
+        expect(loadAsMap(XTB)).toEqual({
+          '8877975308926375834': '<ph name="START_PARAGRAPH"/>rab<ph name="CLOSE_PARAGRAPH"/>'
+        });
       });
 
       it('should replace ICU placeholders with their translations', () => {
-        const HTML = `<div i18n>-{ count, plural, =0 {<p>bar</p>}}-</div>`;
-
         const XTB = `<?xml version="1.0" encoding="UTF-8" ?>
 <translationbundle>
-  <translation id="1430521728694081603">*<ph name="ICU"/>*</translation>
-  <translation id="4004755025589356097">{ count, plural, =1 {<ph name="START_PARAGRAPH"/>rab<ph name="CLOSE_PARAGRAPH"/>}}</translation>
+  <translation id="7717087045075616176">*<ph name="ICU"/>*</translation>
+  <translation id="5115002811911870583">{VAR_PLURAL, plural, =1 {<ph name="START_PARAGRAPH"/>rab<ph name="CLOSE_PARAGRAPH"/>}}</translation>
 </translationbundle>`;
 
-        expect(loadAsText(HTML, XTB)).toEqual({
-          '1430521728694081603': `*{ count, plural, =1 {<p>rab</p>}}*`,
-          '4004755025589356097': `{ count, plural, =1 {<p>rab</p>}}`,
+        expect(loadAsMap(XTB)).toEqual({
+          '7717087045075616176': `*<ph name="ICU"/>*`,
+          '5115002811911870583':
+              `{VAR_PLURAL, plural, =1 {[<ph name="START_PARAGRAPH"/>, rab, <ph name="CLOSE_PARAGRAPH"/>]}}`,
         });
       });
 
       it('should load complex XTB files', () => {
-        const HTML = `
-<div i18n>foo <b>bar</b> {{ a + b }}</div>
-<div i18n>{ count, plural, =0 {<p>bar</p>}}</div>
-<div i18n="m|d">foo</div>
-<div i18n>{ count, plural, =0 {{ sex, select, other {<p>bar</p>}} }}</div>`;
-
         const XTB = `<?xml version="1.0" encoding="UTF-8" ?>
 <translationbundle>
   <translation id="8281795707202401639"><ph name="INTERPOLATION"/><ph name="START_BOLD_TEXT"/>rab<ph name="CLOSE_BOLD_TEXT"/> oof</translation>
-  <translation id="4004755025589356097">{ count, plural, =1 {<ph name="START_PARAGRAPH"/>rab<ph name="CLOSE_PARAGRAPH"/>}}</translation>
+  <translation id="5115002811911870583">{VAR_PLURAL, plural, =1 {<ph name="START_PARAGRAPH"/>rab<ph name="CLOSE_PARAGRAPH"/>}}</translation>
   <translation id="130772889486467622">oof</translation>
-  <translation id="4244993204427636474">{ count, plural, =1 {{ sex, gender, male {<ph name="START_PARAGRAPH"/>rab<ph name="CLOSE_PARAGRAPH"/>}} }}</translation>
+  <translation id="4739316421648347533">{VAR_PLURAL, plural, =1 {{VAR_GENDER, gender, male {<ph name="START_PARAGRAPH"/>rab<ph name="CLOSE_PARAGRAPH"/>}} }}</translation>
 </translationbundle>`;
 
-        expect(loadAsText(HTML, XTB)).toEqual({
-          '8281795707202401639': `{{ a + b }}<b>rab</b> oof`,
-          '4004755025589356097': `{ count, plural, =1 {<p>rab</p>}}`,
+        expect(loadAsMap(XTB)).toEqual({
+          '8281795707202401639':
+              `<ph name="INTERPOLATION"/><ph name="START_BOLD_TEXT"/>rab<ph name="CLOSE_BOLD_TEXT"/> oof`,
+          '5115002811911870583':
+              `{VAR_PLURAL, plural, =1 {[<ph name="START_PARAGRAPH"/>, rab, <ph name="CLOSE_PARAGRAPH"/>]}}`,
           '130772889486467622': `oof`,
-          '4244993204427636474': `{ count, plural, =1 {{ sex, gender, male {<p>rab</p>}} }}`,
+          '4739316421648347533':
+              `{VAR_PLURAL, plural, =1 {[{VAR_GENDER, gender, male {[<ph name="START_PARAGRAPH"/>, rab, <ph name="CLOSE_PARAGRAPH"/>]}},  ]}}`,
         });
       });
     });
@@ -124,7 +105,7 @@ export function main(): void {
             '<translationbundle><translationbundle></translationbundle></translationbundle>';
 
         expect(() => {
-          loadAsText('', XTB);
+          loadAsMap(XTB);
         }).toThrowError(/<translationbundle> elements can not be nested/);
       });
 
@@ -133,58 +114,49 @@ export function main(): void {
   <translation></translation>
 </translationbundle>`;
 
-        expect(() => {
-          loadAsText('', XTB);
-        }).toThrowError(/<translation> misses the "id" attribute/);
+        expect(() => { loadAsMap(XTB); }).toThrowError(/<translation> misses the "id" attribute/);
       });
 
       it('should throw when a placeholder has no name attribute', () => {
-        const HTML = '<div i18n>give me a message</div>';
-
         const XTB = `<translationbundle>
   <translation id="1186013544048295927"><ph /></translation>
 </translationbundle>`;
 
-        expect(() => { loadAsText(HTML, XTB); }).toThrowError(/<ph> misses the "name" attribute/);
+        expect(() => { loadAsMap(XTB); }).toThrowError(/<ph> misses the "name" attribute/);
       });
 
-      it('should throw when a placeholder is not present in the source message', () => {
-        const HTML = `<div i18n>bar</div>`;
+      it('should throw on unknown xtb tags', () => {
+        const XTB = `<what></what>`;
 
-        const XTB = `<?xml version="1.0" encoding="UTF-8"?>
-<translationbundle>
-  <translation id="8841459487341224498"><ph name="UNKNOWN"/></translation>
+        expect(() => {
+          loadAsMap(XTB);
+        }).toThrowError(new RegExp(escapeRegExp(`Unexpected tag ("[ERROR ->]<what></what>")`)));
+      });
+
+      it('should throw on unknown message tags', () => {
+        const XTB = `<translationbundle>
+  <translation id="1186013544048295927"><b>msg should contain only ph tags</b></translation>
+</translationbundle>`;
+
+        expect(() => { loadAsMap(XTB); })
+            .toThrowError(
+                new RegExp(escapeRegExp(`[ERROR ->]<b>msg should contain only ph tags</b>`)));
+      });
+
+      it('should throw on duplicate message id', () => {
+        const XTB = `<translationbundle>
+  <translation id="1186013544048295927">msg1</translation>
+  <translation id="1186013544048295927">msg2</translation>
 </translationbundle>`;
 
         expect(() => {
-          loadAsText(HTML, XTB);
-        }).toThrowError(/The placeholder "UNKNOWN" does not exists in the source message/);
+          loadAsMap(XTB);
+        }).toThrowError(/Duplicated translations for msg 1186013544048295927/);
       });
-    });
 
-    it('should throw when the translation results in invalid html', () => {
-      const HTML = `<div i18n><p>bar</p></div>`;
-
-      const XTB = `<?xml version="1.0" encoding="UTF-8"?>
-<translationbundle>
-  <translation id="8877975308926375834">rab<ph name="CLOSE_PARAGRAPH"/></translation>
-</translationbundle>`;
-
-      expect(() => {
-        loadAsText(HTML, XTB);
-      }).toThrowError(/xtb parse errors:\nUnexpected closing tag "p"/);
+      it('should throw when trying to save an xtb file',
+         () => { expect(() => { serializer.write([]); }).toThrowError(/Unsupported/); });
 
     });
-
-    it('should throw on unknown tags', () => {
-      const XTB = `<what></what>`;
-
-      expect(() => {
-        loadAsText('', XTB);
-      }).toThrowError(new RegExp(escapeRegExp(`Unexpected tag ("[ERROR ->]<what></what>")`)));
-    });
-
-    it('should throw when trying to save an xtb file',
-       () => { expect(() => { serializer.write([]); }).toThrowError(/Unsupported/); });
   });
 }
\ No newline at end of file
diff --git a/modules/@angular/compiler/test/i18n/translation_bundle_spec.ts b/modules/@angular/compiler/test/i18n/translation_bundle_spec.ts
new file mode 100644
index 0000000000..d6f51e331d
--- /dev/null
+++ b/modules/@angular/compiler/test/i18n/translation_bundle_spec.ts
@@ -0,0 +1,110 @@
+/**
+ * @license
+ * Copyright Google Inc. All Rights Reserved.
+ *
+ * Use of this source code is governed by an MIT-style license that can be
+ * found in the LICENSE file at https://angular.io/license
+ */
+
+import * as i18n from '../../src/i18n/i18n_ast';
+import {TranslationBundle} from '../../src/i18n/translation_bundle';
+import {ParseLocation, ParseSourceFile, ParseSourceSpan} from '../../src/parse_util';
+import {serializeNodes} from '../ml_parser/ast_serializer_spec';
+
+export function main(): void {
+  describe('TranslationBundle', () => {
+    const file = new ParseSourceFile('content', 'url');
+    const location = new ParseLocation(file, 0, 0, 0);
+    const span = new ParseSourceSpan(location, null);
+    const srcNode = new i18n.Text('src', span);
+
+    it('should translate a plain message', () => {
+      const msgMap = {foo: [new i18n.Text('bar', null)]};
+      const tb = new TranslationBundle(msgMap, (_) => 'foo');
+      const msg = new i18n.Message([srcNode], {}, {}, 'm', 'd');
+      expect(serializeNodes(tb.get(msg))).toEqual(['bar']);
+    });
+
+    it('should translate a message with placeholder', () => {
+      const msgMap = {
+        foo: [
+          new i18n.Text('bar', null),
+          new i18n.Placeholder('', 'ph1', null),
+        ]
+      };
+      const phMap = {
+        ph1: '*phContent*',
+      };
+      const tb = new TranslationBundle(msgMap, (_) => 'foo');
+      const msg = new i18n.Message([srcNode], phMap, {}, 'm', 'd');
+      expect(serializeNodes(tb.get(msg))).toEqual(['bar*phContent*']);
+    });
+
+    it('should translate a message with placeholder referencing messages', () => {
+      const msgMap = {
+        foo: [
+          new i18n.Text('--', null),
+          new i18n.Placeholder('', 'ph1', null),
+          new i18n.Text('++', null),
+        ],
+        ref: [
+          new i18n.Text('*refMsg*', null),
+        ],
+      };
+      const refMsg = new i18n.Message([srcNode], {}, {}, 'm', 'd');
+      const msg = new i18n.Message([srcNode], {}, {ph1: refMsg}, 'm', 'd');
+      let count = 0;
+      const digest = (_: any) => count++ ? 'ref' : 'foo';
+      const tb = new TranslationBundle(msgMap, digest);
+
+      expect(serializeNodes(tb.get(msg))).toEqual(['--*refMsg*++']);
+    });
+
+    describe('errors', () => {
+      it('should report unknown placeholders', () => {
+        const msgMap = {
+          foo: [
+            new i18n.Text('bar', null),
+            new i18n.Placeholder('', 'ph1', span),
+          ]
+        };
+        const tb = new TranslationBundle(msgMap, (_) => 'foo');
+        const msg = new i18n.Message([srcNode], {}, {}, 'm', 'd');
+        expect(() => tb.get(msg)).toThrowError(/Unknown placeholder/);
+      });
+
+      it('should report missing translation', () => {
+        const tb = new TranslationBundle({}, (_) => 'foo');
+        const msg = new i18n.Message([srcNode], {}, {}, 'm', 'd');
+        expect(() => tb.get(msg)).toThrowError(/Missing translation for message foo/);
+      });
+
+      it('should report missing referenced message', () => {
+        const msgMap = {
+          foo: [new i18n.Placeholder('', 'ph1', span)],
+        };
+        const refMsg = new i18n.Message([srcNode], {}, {}, 'm', 'd');
+        const msg = new i18n.Message([srcNode], {}, {ph1: refMsg}, 'm', 'd');
+        let count = 0;
+        const digest = (_: any) => count++ ? 'ref' : 'foo';
+        const tb = new TranslationBundle(msgMap, digest);
+        expect(() => tb.get(msg)).toThrowError(/Missing translation for message ref/);
+      });
+
+      it('should report invalid translated html', () => {
+        const msgMap = {
+          foo: [
+            new i18n.Text('text', null),
+            new i18n.Placeholder('', 'ph1', null),
+          ]
+        };
+        const phMap = {
+          ph1: '</b>',
+        };
+        const tb = new TranslationBundle(msgMap, (_) => 'foo');
+        const msg = new i18n.Message([srcNode], phMap, {}, 'm', 'd');
+        expect(() => tb.get(msg)).toThrowError(/Unexpected closing tag "b"/);
+      });
+    });
+  });
+}
diff --git a/modules/@angular/compiler/test/ml_parser/ast_serializer_spec.ts b/modules/@angular/compiler/test/ml_parser/ast_serializer_spec.ts
index 5e33a302d5..9452c3c9fb 100644
--- a/modules/@angular/compiler/test/ml_parser/ast_serializer_spec.ts
+++ b/modules/@angular/compiler/test/ml_parser/ast_serializer_spec.ts
@@ -97,4 +97,4 @@ const serializerVisitor = new _SerializerVisitor();
 
 export function serializeNodes(nodes: html.Node[]): string[] {
   return nodes.map(node => node.visit(serializerVisitor, null));
-}
+}
\ No newline at end of file