diff --git a/src/ng/compile.js b/src/ng/compile.js
index 7ae720f4..139801d8 100644
--- a/src/ng/compile.js
+++ b/src/ng/compile.js
@@ -1336,7 +1336,7 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
           }
 
           nodeLinkFn = compileTemplateUrl(directives.splice(i, directives.length - i), $compileNode,
-              templateAttrs, jqCollection, childTranscludeFn, preLinkFns, postLinkFns, {
+              templateAttrs, jqCollection, hasTranscludeDirective && childTranscludeFn, preLinkFns, postLinkFns, {
                 controllerDirectives: controllerDirectives,
                 newIsolateScopeDirective: newIsolateScopeDirective,
                 templateDirective: templateDirective,
diff --git a/test/ng/compileSpec.js b/test/ng/compileSpec.js
index cce526d1..ff44f100 100755
--- a/test/ng/compileSpec.js
+++ b/test/ng/compileSpec.js
@@ -4021,6 +4021,42 @@ describe('$compile', function() {
       });
 
 
+      it('should not pass transclusion into a templateUrl directive', function() {
+
+        module(function($compileProvider) {
+
+          $compileProvider.directive('transFoo', valueFn({
+            template: '<div>' +
+              '<div no-trans-bar></div>' +
+              '<div ng-transclude>this one should get replaced with content</div>' +
+              '<div class="foo" ng-transclude></div>' +
+            '</div>',
+            transclude: true
+
+          }));
+
+          $compileProvider.directive('noTransBar', valueFn({
+            templateUrl: 'noTransBar.html',
+            transclude: false
+
+          }));
+        });
+
+        inject(function($compile, $rootScope, $templateCache) {
+          $templateCache.put('noTransBar.html',
+            '<div>' +
+              // This ng-transclude is invalid. It should throw an error.
+              '<div class="bar" ng-transclude></div>' +
+            '</div>');
+
+          expect(function() {
+            element = $compile('<div trans-foo>content</div>')($rootScope);
+            $rootScope.$apply();
+          }).toThrowMinErr('ngTransclude', 'orphan',
+              'Illegal use of ngTransclude directive in the template! No parent directive that requires a transclusion found. Element: <div class="bar" ng-transclude="">');
+        });
+      });
+
       it('should make the result of a transclusion available to the parent directive in post-linking phase' +
           '(template)', function() {
         module(function() {