diff --git a/src/ng/compile.js b/src/ng/compile.js
index cff8fb38516c..e5e430d76c0a 100644
--- a/src/ng/compile.js
+++ b/src/ng/compile.js
@@ -1177,7 +1177,7 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
 
         var clone = transcludeFn(transcludedScope, cloneFn, controllers, previousBoundTranscludeFn, futureParentElement);
         if (scopeCreated && !elementTransclusion) {
-          clone.on('$destroy', function() { transcludedScope.$destroy(); });
+          futureParentElement.on('$destroy', function() { transcludedScope.$destroy(); });
         }
         return clone;
       };
diff --git a/test/ng/compileSpec.js b/test/ng/compileSpec.js
index 2a0d84d04150..7c3f8397db1f 100755
--- a/test/ng/compileSpec.js
+++ b/test/ng/compileSpec.js
@@ -5551,6 +5551,64 @@ describe('$compile', function() {
       });
 
     });
+
+    it('should not leak memory when a directive removes the element containing the transclude directive', function() {
+
+      module(function() {
+        directive('toggle', function() {
+          return {
+            transclude: true,
+            template:
+              '<section class="toggle">' +
+                '<div ng:if="t">' +
+                  '<div ng:transclude></div>' +
+                '</div>' +
+              '</section>'
+          };
+        });
+      });
+
+      inject(function($compile, $rootScope) {
+
+        function getAllScopes() {
+          return [$rootScope].concat(
+            getChildScopes($rootScope)
+          );
+
+          function getChildScopes(scope) {
+            var children = [];
+            if (!scope.$$childHead) { return children; }
+            var childScope = scope.$$childHead;
+            do {
+              children.push(childScope);
+              children = children.concat(getChildScopes(childScope));
+            } while ((childScope = childScope.$$nextSibling));
+            return children;
+          }
+        }
+
+        $rootScope.messages = ['message 0'];
+
+        element = $compile(
+          '<div toggle>' +
+          '  <div ng:repeat="message in messages">{{ message }}</div>' +
+          '</div>'
+        )($rootScope);
+
+        $rootScope.$apply('t = true');
+        expect(element.text()).toContain('message 0');
+        expect(getAllScopes().length).toEqual(4);
+        $rootScope.$apply('t = false');
+        expect(element.text()).not.toContain('message 0');
+        expect(getAllScopes().length).toEqual(1);
+        $rootScope.$apply('t = true');
+        expect(element.text()).toContain('message 0');
+        expect(getAllScopes().length).toEqual(4);
+        $rootScope.$apply('t = false');
+        expect(element.text()).not.toContain('message 0');
+        expect(getAllScopes().length).toEqual(1);
+      });
+    });
   });