diff --git a/modules/angular2/src/change_detection/parser/parser.js b/modules/angular2/src/change_detection/parser/parser.js
index 16953b00a6..a1e5e804d5 100644
--- a/modules/angular2/src/change_detection/parser/parser.js
+++ b/modules/angular2/src/change_detection/parser/parser.js
@@ -79,6 +79,10 @@ export class Parser {
     return new ASTWithSource(new Interpolation(strings, expressions), input, location);
   }
 
+  wrapLiteralPrimitive(input:string, location:any):ASTWithSource {
+    return new ASTWithSource(new LiteralPrimitive(input), input, location);
+  }
+
 }
 
 class _ParseAST {
diff --git a/modules/angular2/src/core/compiler/pipeline/default_steps.js b/modules/angular2/src/core/compiler/pipeline/default_steps.js
index 34594e7677..9b6c525f1d 100644
--- a/modules/angular2/src/core/compiler/pipeline/default_steps.js
+++ b/modules/angular2/src/core/compiler/pipeline/default_steps.js
@@ -35,6 +35,6 @@ export function createDefaultSteps(
     new ElementBindingMarker(),
     new ProtoViewBuilder(changeDetection, shadowDomStrategy),
     new ProtoElementInjectorBuilder(),
-    new ElementBinderBuilder()
+    new ElementBinderBuilder(parser, compilationUnit)
   ];
 }
diff --git a/modules/angular2/src/core/compiler/pipeline/directive_parser.js b/modules/angular2/src/core/compiler/pipeline/directive_parser.js
index b5491c5e47..6d8c79b10c 100644
--- a/modules/angular2/src/core/compiler/pipeline/directive_parser.js
+++ b/modules/angular2/src/core/compiler/pipeline/directive_parser.js
@@ -1,4 +1,4 @@
-import {isPresent, BaseException} from 'angular2/src/facade/lang';
+import {isPresent, isBlank, BaseException} from 'angular2/src/facade/lang';
 import {List, MapWrapper} from 'angular2/src/facade/collection';
 import {TemplateElement} from 'angular2/src/facade/dom';
 import {SelectorMatcher} from '../selector';
@@ -50,7 +50,10 @@ export class DirectiveParser extends CompileStep {
       cssSelector.addClassName(classList[i]);
     }
     MapWrapper.forEach(attrs, (attrValue, attrName) => {
-      cssSelector.addAttribute(attrName, attrValue);
+      if (isBlank(current.propertyBindings) ||
+        isPresent(current.propertyBindings) && !MapWrapper.contains(current.propertyBindings, attrName)) {
+        cssSelector.addAttribute(attrName, attrValue);
+      }
     });
     if (isPresent(current.propertyBindings)) {
       MapWrapper.forEach(current.propertyBindings, (expression, prop) => {
diff --git a/modules/angular2/src/core/compiler/pipeline/element_binder_builder.js b/modules/angular2/src/core/compiler/pipeline/element_binder_builder.js
index 848242fde9..0e8ed18971 100644
--- a/modules/angular2/src/core/compiler/pipeline/element_binder_builder.js
+++ b/modules/angular2/src/core/compiler/pipeline/element_binder_builder.js
@@ -86,6 +86,13 @@ function styleSetterFactory(styleName:string, stylesuffix:string) {
  * with the flag `isViewRoot`.
  */
 export class ElementBinderBuilder extends CompileStep {
+  _parser:Parser;
+  _compilationUnit:any;
+  constructor(parser:Parser, compilationUnit:any) {
+    this._parser = parser;
+    this._compilationUnit = compilationUnit;
+  }
+
   process(parent:CompileElement, current:CompileElement, control:CompileControl) {
     var elementBinder = null;
     if (current.hasBindings) {
@@ -149,13 +156,19 @@ export class ElementBinderBuilder extends CompileStep {
       var directive = ListWrapper.get(directives, directiveIndex);
       var annotation = directive.annotation;
       if (isBlank(annotation.bind)) continue;
+      var _this = this;
       StringMapWrapper.forEach(annotation.bind, function (dirProp, elProp) {
         var expression = isPresent(compileElement.propertyBindings) ?
           MapWrapper.get(compileElement.propertyBindings, elProp) :
             null;
         if (isBlank(expression)) {
-          throw new BaseException("No element binding found for property '" + elProp
+          var attributeValue = MapWrapper.get(compileElement.attrs(), elProp);
+          if (isPresent(attributeValue)) {
+            expression = _this._parser.wrapLiteralPrimitive(attributeValue, _this._compilationUnit);
+          } else {
+            throw new BaseException("No element binding found for property '" + elProp
             + "' which is required by directive '" + stringify(directive.type) + "'");
+          }
         }
         var len = dirProp.length;
         var dirBindingName = dirProp;
diff --git a/modules/angular2/test/change_detection/parser/parser_spec.js b/modules/angular2/test/change_detection/parser/parser_spec.js
index 4e702bd84e..3ddbe628cd 100644
--- a/modules/angular2/test/change_detection/parser/parser_spec.js
+++ b/modules/angular2/test/change_detection/parser/parser_spec.js
@@ -543,6 +543,12 @@ export function main() {
         expect(ast.expressions[1].name).toEqual('b');
       });
     });
+
+    describe('wrapLiteralPrimitive', () => {
+      it('should wrap a literal primitive', () => {
+        expect(createParser().wrapLiteralPrimitive("foo", null).eval(null)).toEqual("foo");
+      });
+    });
   });
 }
 
diff --git a/modules/angular2/test/core/compiler/integration_spec.js b/modules/angular2/test/core/compiler/integration_spec.js
index f6fd816463..9e687e8661 100644
--- a/modules/angular2/test/core/compiler/integration_spec.js
+++ b/modules/angular2/test/core/compiler/integration_spec.js
@@ -65,14 +65,23 @@ export function main() {
       });
 
       it('should consume directive watch expression change.', (done) => {
-        compiler.compile(MyComp, el('<div my-dir [elprop]="ctxProp"></div>')).then((pv) => {
+        var tpl = 
+          '<div>' +
+            '<div my-dir [elprop]="ctxProp"></div>' +
+            '<div my-dir elprop="Hi there!"></div>' +
+            '<div my-dir elprop="Hi {{\'there!\'}}"></div>' +
+            '<div my-dir elprop="One more {{ctxProp}}"></div>' +
+          '</div>'
+        compiler.compile(MyComp, el(tpl)).then((pv) => {
           createView(pv);
 
           ctx.ctxProp = 'Hello World!';
           cd.detectChanges();
 
-          var elInj = view.elementInjectors[0];
-          expect(elInj.get(MyDir).dirProp).toEqual('Hello World!');
+          expect(view.elementInjectors[0].get(MyDir).dirProp).toEqual('Hello World!');
+          expect(view.elementInjectors[1].get(MyDir).dirProp).toEqual('Hi there!');
+          expect(view.elementInjectors[2].get(MyDir).dirProp).toEqual('Hi there!');
+          expect(view.elementInjectors[3].get(MyDir).dirProp).toEqual('One more Hello World!');
           done();
         });
       });
diff --git a/modules/angular2/test/core/compiler/pipeline/directive_parser_spec.js b/modules/angular2/test/core/compiler/pipeline/directive_parser_spec.js
index 2a1b6bd6f9..91759f3df1 100644
--- a/modules/angular2/test/core/compiler/pipeline/directive_parser_spec.js
+++ b/modules/angular2/test/core/compiler/pipeline/directive_parser_spec.js
@@ -24,6 +24,7 @@ export function main() {
       directives = [
         SomeDecorator,
         SomeDecoratorIgnoringChildren,
+        SomeDecoratorWithBinding,
         SomeTemplate,
         SomeTemplate2,
         SomeComponent,
@@ -182,6 +183,15 @@ export function main() {
           );
         }).toThrowError('Only template directives are allowed on <template> elements!');
       });
+
+      it('should not instantiate decorator directive twice', () => {
+        var pipeline = createPipeline({propertyBindings: {
+          'some-decor-with-binding': 'someExpr'
+        }});
+        var results = pipeline.process(el('<div some-decor-with-binding="foo"></div>'));
+        expect(results[0].decoratorDirectives.length).toEqual(1);
+        expect(results[0].decoratorDirectives).toEqual([reader.read(SomeDecoratorWithBinding)]);
+      });
     });
   });
 }
@@ -208,6 +218,14 @@ class SomeDecorator {}
 class SomeDecoratorIgnoringChildren {
 }
 
+@Decorator({
+  selector: '[some-decor-with-binding]',
+  bind: {
+    'some-decor-with-binding': 'foo'
+  }
+})
+class SomeDecoratorWithBinding {}
+
 @Template({
   selector: '[some-templ]'
 })
diff --git a/modules/angular2/test/core/compiler/pipeline/element_binder_builder_spec.js b/modules/angular2/test/core/compiler/pipeline/element_binder_builder_spec.js
index f406bf2045..7c13104045 100644
--- a/modules/angular2/test/core/compiler/pipeline/element_binder_builder_spec.js
+++ b/modules/angular2/test/core/compiler/pipeline/element_binder_builder_spec.js
@@ -73,7 +73,7 @@ export function main() {
             } else if (isPresent(parent)) {
               current.inheritedProtoView = parent.inheritedProtoView;
             }
-          }), new ElementBinderBuilder()
+          }), new ElementBinderBuilder(parser, null)
       ]);
     }
 
@@ -312,6 +312,18 @@ export function main() {
       expect(view.elementInjectors[1].get(SomeDecoratorDirectiveWithBinding).decorProp).toBe('a');
     });
 
+    it('should bind to string literals', () => {
+      var directives = [SomeDecoratorDirectiveWithBinding];
+      var protoElementInjector = new ProtoElementInjector(null, 0, directives);
+      var pipeline = createPipeline({directives: directives, protoElementInjector: protoElementInjector});
+      var results = pipeline.process(el('<div viewroot directives boundprop1="foo"></div>'));
+      var pv = results[0].inheritedProtoView;
+      instantiateView(pv);
+      changeDetector.detectChanges();
+
+      expect(view.elementInjectors[0].get(SomeDecoratorDirectiveWithBinding).decorProp).toEqual('foo');
+    });
+
     describe('errors', () => {
 
       it('should throw if there is no element property bindings for a directive property binding', () => {