diff --git a/modules/@angular/router/src/create_url_tree.ts b/modules/@angular/router/src/create_url_tree.ts
index fae0b91e42..b30b2591cc 100644
--- a/modules/@angular/router/src/create_url_tree.ts
+++ b/modules/@angular/router/src/create_url_tree.ts
@@ -96,8 +96,7 @@ function findStartingNode(normalizedChange: NormalizedNavigationCommands, urlTre
 }
 
 function findUrlSegment(route: ActivatedRoute, urlTree: UrlTree, numberOfDoubleDots: number): UrlSegment {
-  const segments = (<any>route.urlSegments).value;
-  const urlSegment = segments[segments.length - 1];
+  const urlSegment = route.snapshot._lastUrlSegment;
   const path = urlTree.pathFromRoot(urlSegment);
   if (path.length <= numberOfDoubleDots) {
     throw new Error("Invalid number of '../'");
diff --git a/modules/@angular/router/src/recognize.ts b/modules/@angular/router/src/recognize.ts
index d8c9196acb..8a8eff4b06 100644
--- a/modules/@angular/router/src/recognize.ts
+++ b/modules/@angular/router/src/recognize.ts
@@ -9,7 +9,7 @@ import { Observable } from 'rxjs/Observable';
 
 export function recognize(rootComponentType: Type, config: RouterConfig, url: UrlTree): Observable<RouterStateSnapshot> {
   try {
-    const match = new MatchResult(rootComponentType, config, [url.root], {}, url._root.children, [], PRIMARY_OUTLET, null);
+    const match = new MatchResult(rootComponentType, config, [url.root], {}, url._root.children, [], PRIMARY_OUTLET, null, url.root);
     const roots = constructActivatedRoute(match);
     const res = new RouterStateSnapshot(roots[0], url.queryParameters, url.fragment);
     return new Observable<RouterStateSnapshot>(obs => {
@@ -23,18 +23,21 @@ export function recognize(rootComponentType: Type, config: RouterConfig, url: Ur
 
 function constructActivatedRoute(match: MatchResult): TreeNode<ActivatedRouteSnapshot>[] {
   const activatedRoute = createActivatedRouteSnapshot(match);
-  if (match.leftOverUrl.length > 0) {
-    const children = recognizeMany(match.children, match.leftOverUrl);
-    checkOutletNameUniqueness(children);
-    children.sort((a, b) => {
-      if (a.value.outlet === PRIMARY_OUTLET) return -1;
-      if (b.value.outlet === PRIMARY_OUTLET) return 1;
-      return a.value.outlet.localeCompare(b.value.outlet)
-    });
-    return [new TreeNode<ActivatedRouteSnapshot>(activatedRoute, children)];
-  } else {
-    return [new TreeNode<ActivatedRouteSnapshot>(activatedRoute, [])];
-  }
+  const children = match.leftOverUrl.length > 0 ?
+    recognizeMany(match.children, match.leftOverUrl) : recognizeLeftOvers(match.children, match.lastUrlSegment);
+  checkOutletNameUniqueness(children);
+  children.sort((a, b) => {
+    if (a.value.outlet === PRIMARY_OUTLET) return -1;
+    if (b.value.outlet === PRIMARY_OUTLET) return 1;
+    return a.value.outlet.localeCompare(b.value.outlet)
+  });
+  return [new TreeNode<ActivatedRouteSnapshot>(activatedRoute, children)];
+}
+
+function recognizeLeftOvers(config: Route[], lastUrlSegment: UrlSegment): TreeNode<ActivatedRouteSnapshot>[] {
+  if (!config) return [];
+  const mIndex = matchIndex(config, [], lastUrlSegment);
+  return mIndex ? constructActivatedRoute(mIndex) : [];
 }
 
 function recognizeMany(config: Route[], urls: TreeNode<UrlSegment>[]): TreeNode<ActivatedRouteSnapshot>[] {
@@ -42,7 +45,7 @@ function recognizeMany(config: Route[], urls: TreeNode<UrlSegment>[]): TreeNode<
 }
 
 function createActivatedRouteSnapshot(match: MatchResult): ActivatedRouteSnapshot {
-  return new ActivatedRouteSnapshot(match.consumedUrlSegments, match.parameters, match.outlet, match.component, match.route);
+  return new ActivatedRouteSnapshot(match.consumedUrlSegments, match.parameters, match.outlet, match.component, match.route, match.lastUrlSegment);
 }
 
 function recognizeOne(config: Route[], url: TreeNode<UrlSegment>): TreeNode<ActivatedRouteSnapshot>[] {
@@ -72,7 +75,7 @@ function match(config: Route[], url: TreeNode<UrlSegment>): MatchResult {
   const m = matchNonIndex(config, url);
   if (m) return m;
 
-  const mIndex = matchIndex(config, url);
+  const mIndex = matchIndex(config, [url], url.value);
   if (mIndex) return mIndex;
 
   const availableRoutes = config.map(r => {
@@ -91,12 +94,12 @@ function matchNonIndex(config: Route[], url: TreeNode<UrlSegment>): MatchResult
   return null;
 }
 
-function matchIndex(config: Route[], url: TreeNode<UrlSegment>): MatchResult | null {
+function matchIndex(config: Route[], leftOverUrls: TreeNode<UrlSegment>[], lastUrlSegment: UrlSegment): MatchResult | null {
   for (let r of config) {
     if (r.index) {
       const outlet = r.outlet ? r.outlet : PRIMARY_OUTLET;
       const children = r.children ? r.children : [];
-      return new MatchResult(r.component, children, [], {}, [url], [], outlet, r);
+      return new MatchResult(r.component, children, [], lastUrlSegment.parameters, leftOverUrls, [], outlet, r, lastUrlSegment);
     }
   }
   return null;
@@ -115,7 +118,7 @@ function matchWithParts(route: Route, url: TreeNode<UrlSegment>): MatchResult |
       u = first(u.children);
     }
     const last = consumedUrl[consumedUrl.length - 1];
-    return new MatchResult(route.component, [], consumedUrl, last.parameters, [], [], PRIMARY_OUTLET, route);
+    return new MatchResult(route.component, [], consumedUrl, last.parameters, [], [], PRIMARY_OUTLET, route, last);
   }
 
   const parts = path.split("/");
@@ -160,7 +163,7 @@ function matchWithParts(route: Route, url: TreeNode<UrlSegment>): MatchResult |
   const outlet = route.outlet ? route.outlet : PRIMARY_OUTLET;
 
   return new MatchResult(route.component, children, consumedUrlSegments, parameters, lastSegment.children,
-    secondarySubtrees, outlet, route);
+    secondarySubtrees, outlet, route, lastSegment.value);
 }
 
 class MatchResult {
@@ -171,6 +174,7 @@ class MatchResult {
               public leftOverUrl: TreeNode<UrlSegment>[],
               public secondary: TreeNode<UrlSegment>[],
               public outlet: string,
-              public route: Route
+              public route: Route,
+              public lastUrlSegment: UrlSegment
   ) {}
 }
\ No newline at end of file
diff --git a/modules/@angular/router/src/router_state.ts b/modules/@angular/router/src/router_state.ts
index c8355e4329..84e04e7468 100644
--- a/modules/@angular/router/src/router_state.ts
+++ b/modules/@angular/router/src/router_state.ts
@@ -38,11 +38,12 @@ export function createEmptyState(rootComponent: Type): RouterState {
 }
 
 function createEmptyStateSnapshot(rootComponent: Type): RouterStateSnapshot {
-  const emptyUrl = [new UrlSegment("", {}, PRIMARY_OUTLET)];
+  const rootUrlSegment = new UrlSegment("", {}, PRIMARY_OUTLET);
+  const emptyUrl = [rootUrlSegment];
   const emptyParams = {};
   const emptyQueryParams = {};
   const fragment = "";
-  const activated = new ActivatedRouteSnapshot(emptyUrl, emptyParams, PRIMARY_OUTLET, rootComponent, null);
+  const activated = new ActivatedRouteSnapshot(emptyUrl, emptyParams, PRIMARY_OUTLET, rootComponent, null, rootUrlSegment);
   return new RouterStateSnapshot(new TreeNode<ActivatedRouteSnapshot>(activated, []), emptyQueryParams, fragment);
 }
 
@@ -91,12 +92,17 @@ export class ActivatedRouteSnapshot {
   /** @internal **/
   _routeConfig: Route;
 
+  /** @internal **/
+  _lastUrlSegment: UrlSegment;
+
   constructor(public urlSegments: UrlSegment[],
               public params: Params,
               public outlet: string,
               public component: Type | string, 
-              routeConfig: Route) {
+              routeConfig: Route,
+              lastUrlSegment: UrlSegment) {
     this._routeConfig = routeConfig;
+    this._lastUrlSegment = lastUrlSegment;
   }
 }
 
diff --git a/modules/@angular/router/test/create_url_tree.spec.ts b/modules/@angular/router/test/create_url_tree.spec.ts
index a680e53c4b..c468ae3e7e 100644
--- a/modules/@angular/router/test/create_url_tree.spec.ts
+++ b/modules/@angular/router/test/create_url_tree.spec.ts
@@ -1,9 +1,8 @@
 import {DefaultUrlSerializer} from '../src/url_serializer';
 import {UrlTree, UrlSegment} from '../src/url_tree';
-import {ActivatedRoute} from '../src/router_state';
+import {ActivatedRoute, ActivatedRouteSnapshot} from '../src/router_state';
 import {PRIMARY_OUTLET, Params} from '../src/shared';
 import {createUrlTree} from '../src/create_url_tree';
-import {BehaviorSubject} from 'rxjs/BehaviorSubject';
 
 describe('createUrlTree', () => {
   const serializer = new DefaultUrlSerializer();
@@ -175,6 +174,7 @@ function create(start: UrlSegment | null, tree: UrlTree, commands: any[], queryP
   if (!start) {
     expect(start).toBeDefined();
   }
-  const a = new ActivatedRoute(new BehaviorSubject([start]), <any>null, PRIMARY_OUTLET, "someComponent", null);
+  const s = new ActivatedRouteSnapshot([], <any>null, PRIMARY_OUTLET, "someComponent", null, start);
+  const a = new ActivatedRoute(<any>null, <any>null, PRIMARY_OUTLET, "someComponent", s);
   return createUrlTree(a, tree, commands, queryParameters, fragment);
 }
\ No newline at end of file
diff --git a/modules/@angular/router/test/recognize.spec.ts b/modules/@angular/router/test/recognize.spec.ts
index ed88ec4af1..f4a2b5fe4e 100644
--- a/modules/@angular/router/test/recognize.spec.ts
+++ b/modules/@angular/router/test/recognize.spec.ts
@@ -112,11 +112,31 @@ describe('recognize', () => {
   });
   
   describe("index", () => {
-    it("should support index routes", () => {
+    it("should support root index routes", () => {
       recognize(RootComponent, [
         {index: true, component: ComponentA}
       ], tree("")).forEach(s => {
+        checkActivatedRoute(s.firstChild(s.root), "", {}, ComponentA);
+      });
+    });
+
+    it("should support nested root index routes", () => {
+      recognize(RootComponent, [
+        {index: true, component: ComponentA, children: [{index: true, component: ComponentB}]}
+      ], tree("")).forEach(s => {
+        checkActivatedRoute(s.firstChild(s.root), "", {}, ComponentA);
+        checkActivatedRoute(s.firstChild(<any>s.firstChild(s.root)), "", {}, ComponentB);
+      });
+    });
+
+    it("should support index routes", () => {
+      recognize(RootComponent, [
+        {path: 'a', component: ComponentA, children: [
+          {index: true, component: ComponentB}
+        ]}
+      ], tree("a")).forEach(s => {
         checkActivatedRoute(s.firstChild(s.root), "a", {}, ComponentA);
+        checkActivatedRoute(s.firstChild(<any>s.firstChild(s.root)), "", {}, ComponentB);
       });
     });
 
@@ -137,6 +157,15 @@ describe('recognize', () => {
           s.firstChild(<any>s.firstChild(<any>s.firstChild(s.root))), "c/10", {id: '10'}, ComponentC);
       });
     });
+
+    it("should pass parameters to every nested index route (case with non-index route)", () => {
+      recognize(RootComponent, [
+        {path: 'a', component: ComponentA, children: [{index: true, component: ComponentB}]}
+      ], tree("/a;a=1")).forEach(s => {
+        checkActivatedRoute(s.firstChild(s.root), "a", {a: '1'}, ComponentA);
+        checkActivatedRoute(s.firstChild(<any>s.firstChild(s.root)), "", {a: '1'}, ComponentB);
+      });
+    });
   });
   
   describe("wildcards", () => {
@@ -198,7 +227,7 @@ describe('recognize', () => {
 
 function checkActivatedRoute(actual: ActivatedRouteSnapshot | null, url: string, params: Params, cmp: Function, outlet: string = PRIMARY_OUTLET):void {
   if (actual === null) {
-    expect(actual).toBeDefined();
+    expect(actual).not.toBeNull();
   } else {
     expect(actual.urlSegments.map(s => s.path).join("/")).toEqual(url);
     expect(actual.params).toEqual(params);
diff --git a/modules/@angular/router/test/router.spec.ts b/modules/@angular/router/test/router.spec.ts
index 76a63c97e4..d26c394d0f 100644
--- a/modules/@angular/router/test/router.spec.ts
+++ b/modules/@angular/router/test/router.spec.ts
@@ -1,6 +1,7 @@
 import {Component, Injector} from '@angular/core';
 import {
   describe,
+  ddescribe,
   it,
   iit,
   xit,
@@ -199,6 +200,26 @@ describe("Integration", () => {
       expect(user.recordedParams).toEqual([{name: 'victor'}, {name: 'fedor'}]);
     })));
 
+  it('should work when navigating to /',
+    fakeAsync(inject([Router, TestComponentBuilder], (router, tcb:TestComponentBuilder) => {
+      router.resetConfig([
+        { index: true, component: SimpleCmp },
+        { path: '/user/:name', component: UserCmp }
+      ]);
+
+      const fixture = tcb.createFakeAsync(RootCmp);
+
+      router.navigateByUrl('/user/victor');
+      advance(fixture);
+
+      expect(fixture.debugElement.nativeElement).toHaveText('user victor');
+
+      router.navigateByUrl('/');
+      advance(fixture);
+
+      expect(fixture.debugElement.nativeElement).toHaveText('simple');
+    })));
+
   describe("router links", () => {
     it("should support string router links",
       fakeAsync(inject([Router, TestComponentBuilder], (router, tcb) => {