diff --git a/src/ng/compile.js b/src/ng/compile.js
index bac53537..203733c6 100644
--- a/src/ng/compile.js
+++ b/src/ng/compile.js
@@ -255,8 +255,13 @@
  * scope. This makes it possible for the widget to have private state, and the transclusion to
  * be bound to the parent (pre-`isolate`) scope.
  *
- * * `true` - transclude the content of the directive.
- * * `'element'` - transclude the whole element including any directives defined at lower priority.
+ * There are two kinds of transclusion depending upon whether you want to transclude just the contents of the
+ * directive's element or the entire element:
+ *
+ * * `true` - transclude the content (i.e. the child nodes) of the directive's element.
+ * * `'element'` - transclude the whole of the directive's element including any directives on this
+ *   element that defined at a lower priority than this directive. When used, the `template`
+ *   property is ignored.
  *
  * <div class="alert alert-warning">
  * **Note:** When testing an element transclude directive you must not place the directive at the root of the