diff --git a/lib/core_dom/tagging_compiler.dart b/lib/core_dom/tagging_compiler.dart
index fbc564139..522cbd24b 100644
--- a/lib/core_dom/tagging_compiler.dart
+++ b/lib/core_dom/tagging_compiler.dart
@@ -21,6 +21,7 @@ class TaggingCompiler implements Compiler {
       TaggedElementBinder directParentElementBinder,
       List<TaggedElementBinder> elementBinders) {
     assert(parentElementBinderOffset != null);
+    assert(parentElementBinderOffset < elementBinders.length);
     if (domCursor.current == null) return null;
 
     do {
@@ -41,8 +42,7 @@ class TaggingCompiler implements Compiler {
         if (elementBinder.hasTemplate) {
           elementBinder.templateViewFactory = _compileTransclusion(
               elementBinders, domCursor, templateCursor, elementBinder.template,
-              elementBinder.templateBinder, directives,
-              parentElementBinderOffset);
+              elementBinder.templateBinder, directives);
         }
       }
 
@@ -110,8 +110,7 @@ class TaggingCompiler implements Compiler {
       NodeCursor domCursor, NodeCursor templateCursor,
       DirectiveRef directiveRef,
       ElementBinder transcludedElementBinder,
-      DirectiveMap directives,
-      int parentElementBinderOffset) {
+      DirectiveMap directives) {
     var anchorName = directiveRef.annotation.selector +
         (directiveRef.value != null ? '=' + directiveRef.value : '');
     var viewFactory;
@@ -121,7 +120,7 @@ class TaggingCompiler implements Compiler {
     var domCursorIndex = domCursor.index;
     var elementBinders = [];
     _compileView(domCursor, transcludeCursor, transcludedElementBinder,
-        directives, parentElementBinderOffset, null, elementBinders);
+        directives, -1, null, elementBinders);
 
     viewFactory = new TaggingViewFactory(transcludeCursor.elements,
         elementBinders, _perf, _expando);
diff --git a/test/core_dom/compiler_spec.dart b/test/core_dom/compiler_spec.dart
index de282f120..80bc34c05 100644
--- a/test/core_dom/compiler_spec.dart
+++ b/test/core_dom/compiler_spec.dart
@@ -92,7 +92,7 @@ void main() {
       expect(element.html()).toEqual('<!--ANCHOR: [ng-repeat]=item in items-->');
     }));
 
-    it('should compile a repeater as a child', () {
+    it('should compile a text child of a basic repeater', () {
       var element = $(_.compile(
                 '<div ng-show="true">' +
                   '<span ng-repeat="r in [1, 2]">{{r}}</span>' +
@@ -101,6 +101,13 @@ void main() {
       expect(element.text()).toEqual('12');
     });
 
+    it('should compile a text child of a repeat with a directive', () {
+      _.compile(
+            '<div ng-show="true">'
+              '<span ng-show=true" ng-repeat="r in robots">{{r}}</span>'
+            '</div>');
+    });
+
     it('should compile repeater with children', inject((Compiler $compile) {
       var element = $(_.compile('<div><div ng-repeat="item in items"><div ng-bind="item"></div></div></div>'));