diff --git a/src/ng/location.js b/src/ng/location.js
index 99474ee7..337681fa 100644
--- a/src/ng/location.js
+++ b/src/ng/location.js
@@ -183,16 +183,25 @@ function LocationHashbangUrl(appBase, hashPrefix) {
    */
   this.$$parse = function(url) {
     var withoutBaseUrl = beginsWith(appBase, url) || beginsWith(appBaseNoFile, url);
-    var withoutHashUrl = withoutBaseUrl.charAt(0) == '#'
-        ? beginsWith(hashPrefix, withoutBaseUrl)
-        : (this.$$html5)
-          ? withoutBaseUrl
-          : '';
+    var withoutHashUrl;
 
-    if (!isString(withoutHashUrl)) {
-      throw $locationMinErr('ihshprfx', 'Invalid url "{0}", missing hash prefix "{1}".', url,
-          hashPrefix);
+    if (withoutBaseUrl.charAt(0) === '#') {
+
+      // The rest of the url starts with a hash so we have
+      // got either a hashbang path or a plain hash fragment
+      withoutHashUrl = beginsWith(hashPrefix, withoutBaseUrl);
+      if (isUndefined(withoutHashUrl)) {
+        // There was no hashbang prefix so we just have a hash fragment
+        withoutHashUrl = withoutBaseUrl;
+      }
+
+    } else {
+      // There was no hashbang path nor hash fragment:
+      // If we are in HTML5 mode we use what is left as the path;
+      // Otherwise we ignore what is left
+      withoutHashUrl = this.$$html5 ? withoutBaseUrl : '';
     }
+
     parseAppUrl(withoutHashUrl, this);
 
     this.$$path = removeWindowsDriveName(this.$$path, withoutHashUrl, appBase);
diff --git a/test/ng/locationSpec.js b/test/ng/locationSpec.js
index f99dd399..1ba12190 100644
--- a/test/ng/locationSpec.js
+++ b/test/ng/locationSpec.js
@@ -554,10 +554,24 @@ describe('$location', function() {
     });
 
 
-    it('should throw error when invalid hashbang prefix given', function() {
-      expect(function() {
-        url.$$parse('http://www.server.org:1234/base#/path');
-      }).toThrowMinErr('$location', 'ihshprfx', 'Invalid url "http://www.server.org:1234/base#/path", missing hash prefix "#!".');
+    it('should insert default hashbang if a hash is given with no hashbang prefix', function() {
+
+      url.$$parse('http://www.server.org:1234/base#/path');
+      expect(url.absUrl()).toBe('http://www.server.org:1234/base#!#%2Fpath');
+      expect(url.hash()).toBe('/path');
+      expect(url.path()).toBe('');
+
+      url.$$parse('http://www.server.org:1234/base#');
+      expect(url.absUrl()).toBe('http://www.server.org:1234/base');
+      expect(url.hash()).toBe('');
+      expect(url.path()).toBe('');
+    });
+
+    it('should ignore extra path segments if no hashbang is given', function() {
+      url.$$parse('http://www.server.org:1234/base/extra/path');
+      expect(url.absUrl()).toBe('http://www.server.org:1234/base');
+      expect(url.path()).toBe('');
+      expect(url.hash()).toBe('');
     });