diff --git a/src/ng/directive/ngSwitch.js b/src/ng/directive/ngSwitch.js
index 9abe61ca..05bfdd7a 100644
--- a/src/ng/directive/ngSwitch.js
+++ b/src/ng/directive/ngSwitch.js
@@ -166,9 +166,8 @@ var ngSwitchDirective = ['$animate', function($animate) {
         if ((selectedTranscludes = ngSwitchController.cases['!' + value] || ngSwitchController.cases['?'])) {
           scope.$eval(attr.change);
           forEach(selectedTranscludes, function(selectedTransclude) {
-            var selectedScope = scope.$new();
-            selectedScopes.push(selectedScope);
-            selectedTransclude.transclude(selectedScope, function(caseElement) {
+            selectedTransclude.transclude(function(caseElement, selectedScope) {
+              selectedScopes.push(selectedScope);
               var anchor = selectedTransclude.element;
 
               selectedElements.push(caseElement);
@@ -183,7 +182,7 @@ var ngSwitchDirective = ['$animate', function($animate) {
 
 var ngSwitchWhenDirective = ngDirective({
   transclude: 'element',
-  priority: 800,
+  priority: 1200,
   require: '^ngSwitch',
   multiElement: true,
   link: function(scope, element, attrs, ctrl, $transclude) {
@@ -194,7 +193,7 @@ var ngSwitchWhenDirective = ngDirective({
 
 var ngSwitchDefaultDirective = ngDirective({
   transclude: 'element',
-  priority: 800,
+  priority: 1200,
   require: '^ngSwitch',
   multiElement: true,
   link: function(scope, element, attr, ctrl, $transclude) {
diff --git a/test/ng/directive/ngSwitchSpec.js b/test/ng/directive/ngSwitchSpec.js
index 48e27ae9..1e7bf8fa 100644
--- a/test/ng/directive/ngSwitchSpec.js
+++ b/test/ng/directive/ngSwitchSpec.js
@@ -241,7 +241,7 @@ describe('ngSwitch', function() {
     $rootScope.url = 'x';
     $rootScope.$apply();
     expect(getChildScope()).toBeUndefined();
-    expect(child1.$destroy).toHaveBeenCalledOnce();
+    expect(child1.$destroy).toHaveBeenCalled();
 
     $rootScope.url = 'a';
     $rootScope.$apply();
@@ -251,6 +251,28 @@ describe('ngSwitch', function() {
   }));
 
 
+  it("should use the correct transclusion scope if there is a transclude directive on the ng-swith-when/ng-switch-default element", inject(function($rootScope, $compile) {
+    element = $compile(
+      '<div ng-switch="foo">' +
+          '<pre ng-switch-when="item1" ng-repeat="bar in bars">' +
+              'foo = {{foo}}' +
+              'bar = {{bar}}' +
+              '$index = {{$index}}' +
+          '</pre>' +
+      '</div>'
+    )($rootScope);
+    $rootScope.$apply('foo="item1";bars=["one", "two"]');
+    expect(element.text()).toEqual(
+      'foo = item1' +
+      'bar = one' +
+      '$index = 0' +
+      'foo = item1' +
+      'bar = two' +
+      '$index = 1'
+    );
+  }));
+
+
   it('should not leak jq data when compiled but not attached to parent when parent is destroyed',
       inject(function($rootScope, $compile) {
     element = $compile(