diff --git a/packages/core/src/render3/di.ts b/packages/core/src/render3/di.ts
index 24860481ea..d5a9b3a84f 100644
--- a/packages/core/src/render3/di.ts
+++ b/packages/core/src/render3/di.ts
@@ -590,6 +590,7 @@ export function getOrCreateContainerRef(di: LInjector): viewEngine_ViewContainer
 
     lContainerNode.tNode = hostTNode.dynamicContainerNode;
     vcRefHost.dynamicLContainerNode = lContainerNode;
+    lContainerNode.dynamicParent = vcRefHost;
 
     addToViewTree(vcRefHost.view, hostTNode.index as number, lContainer);
 
@@ -649,6 +650,7 @@ class ViewContainerRef implements viewEngine_ViewContainerRef {
     (viewRef as EmbeddedViewRef<any>).attachToViewContainerRef(this);
 
     insertView(this._lContainerNode, lViewNode, adjustedIdx);
+    lViewNode.dynamicParent = this._lContainerNode;
 
     this._viewRefs.splice(adjustedIdx, 0, viewRef);
 
@@ -672,7 +674,8 @@ class ViewContainerRef implements viewEngine_ViewContainerRef {
 
   detach(index?: number): viewEngine_ViewRef|null {
     const adjustedIdx = this._adjustIndex(index, -1);
-    detachView(this._lContainerNode, adjustedIdx);
+    const lViewNode = detachView(this._lContainerNode, adjustedIdx);
+    lViewNode.dynamicParent = null;
     return this._viewRefs.splice(adjustedIdx, 1)[0] || null;
   }
 
diff --git a/packages/core/src/render3/instructions.ts b/packages/core/src/render3/instructions.ts
index 774ecc245d..d687622f35 100644
--- a/packages/core/src/render3/instructions.ts
+++ b/packages/core/src/render3/instructions.ts
@@ -318,7 +318,8 @@ export function createLNodeObject(
     queries: queries,
     tNode: null !,
     pNextOrParent: null,
-    dynamicLContainerNode: null
+    dynamicLContainerNode: null,
+    dynamicParent: null
   };
 }
 
diff --git a/packages/core/src/render3/interfaces/node.ts b/packages/core/src/render3/interfaces/node.ts
index f4c1af3080..9097c82195 100644
--- a/packages/core/src/render3/interfaces/node.ts
+++ b/packages/core/src/render3/interfaces/node.ts
@@ -111,6 +111,12 @@ export interface LNode {
    */
   // TODO(kara): Remove when removing LNodes
   dynamicLContainerNode: LContainerNode|null;
+
+  /**
+   * A pointer to a parent LNode created dynamically and virtually by directives requesting
+   * ViewContainerRef. Applicable only to LContainerNode and LViewNode.
+   */
+  dynamicParent: LElementNode|LContainerNode|LViewNode|null;
 }
 
 
@@ -129,6 +135,7 @@ export interface LTextNode extends LNode {
   native: RText;
   readonly data: null;
   dynamicLContainerNode: null;
+  dynamicParent: null;
 }
 
 /** Abstract node which contains root nodes of a view. */
diff --git a/packages/core/src/render3/node_manipulation.ts b/packages/core/src/render3/node_manipulation.ts
index 743a453f5c..962f0724e2 100644
--- a/packages/core/src/render3/node_manipulation.ts
+++ b/packages/core/src/render3/node_manipulation.ts
@@ -42,7 +42,10 @@ export function getParentLNode(node: LContainerNode | LElementNode | LTextNode |
 export function getParentLNode(node: LViewNode): LContainerNode|null;
 export function getParentLNode(node: LNode): LElementNode|LContainerNode|LViewNode|null;
 export function getParentLNode(node: LNode): LElementNode|LContainerNode|LViewNode|null {
-  if (node.tNode.index === -1) return null;
+  if (node.tNode.index === -1) {
+    // This is a dynamic container or an embedded view inside a dynamic container.
+    return node.dynamicParent;
+  }
   const parent = node.tNode.parent;
   return parent ? node.view[parent.index] : node.view[HOST_NODE];
 }
diff --git a/packages/core/test/render3/common_integration_spec.ts b/packages/core/test/render3/common_integration_spec.ts
index c78872fa1d..7111562ce9 100644
--- a/packages/core/test/render3/common_integration_spec.ts
+++ b/packages/core/test/render3/common_integration_spec.ts
@@ -199,6 +199,83 @@ describe('@angular/common integration', () => {
       expect(fixture.html)
           .toEqual('<button>Toggle List</button><ul><li>1</li><li>2</li><li>3</li></ul>');
     });
+
+    it('should support multiple levels of embedded templates', () => {
+      /**
+       * <ul *ngFor="let outterItem of items.">
+       *   <li *ngFor="let item of items">
+       *      <span>{{item}}</span>
+       *   </li>
+       * </ul>
+       */
+      class MyApp {
+        items: string[] = ['1', '2'];
+
+        static ngComponentDef = defineComponent({
+          type: MyApp,
+          factory: () => new MyApp(),
+          selectors: [['my-app']],
+          template: (rf: RenderFlags, myApp: MyApp) => {
+            if (rf & RenderFlags.Create) {
+              elementStart(0, 'ul');
+              { container(1, liTemplate, null, ['ngForOf', '']); }
+              elementEnd();
+            }
+            if (rf & RenderFlags.Update) {
+              elementProperty(1, 'ngForOf', bind(myApp.items));
+            }
+
+            function liTemplate(rf1: RenderFlags, row: NgForOfContext<string>) {
+              if (rf1 & RenderFlags.Create) {
+                elementStart(0, 'li');
+                { container(1, spanTemplate, null, ['ngForOf', '']); }
+                elementEnd();
+              }
+              if (rf1 & RenderFlags.Update) {
+                elementProperty(1, 'ngForOf', bind(myApp.items));
+              }
+            }
+
+            function spanTemplate(rf1: RenderFlags, row: NgForOfContext<string>) {
+              if (rf1 & RenderFlags.Create) {
+                elementStart(0, 'span');
+                { text(1); }
+                elementEnd();
+              }
+              if (rf1 & RenderFlags.Update) {
+                textBinding(1, bind(row.$implicit));
+              }
+            }
+          },
+          directives: () => [NgForOf]
+        });
+      }
+
+      const fixture = new ComponentFixture(MyApp);
+
+      // Change detection cycle, no model changes
+      fixture.update();
+      expect(fixture.html)
+          .toEqual(
+              '<ul><li><span>1</span><span>2</span></li><li><span>1</span><span>2</span></li></ul>');
+
+      // Remove the last item
+      fixture.component.items.length = 1;
+      fixture.update();
+      expect(fixture.html).toEqual('<ul><li><span>1</span></li></ul>');
+
+      // Change an item
+      fixture.component.items[0] = 'one';
+      fixture.update();
+      expect(fixture.html).toEqual('<ul><li><span>one</span></li></ul>');
+
+      // Add an item
+      fixture.component.items.push('two');
+      fixture.update();
+      expect(fixture.html)
+          .toEqual(
+              '<ul><li><span>one</span><span>two</span></li><li><span>one</span><span>two</span></li></ul>');
+    });
   });
 
   describe('ngIf', () => {