diff --git a/src/lib/dom-api-shady.html b/src/lib/dom-api-shady.html
index e1f62ffe41..3e4a216e62 100644
--- a/src/lib/dom-api-shady.html
+++ b/src/lib/dom-api-shady.html
@@ -170,8 +170,8 @@
       if (!node) {
         return;
       }
-      if (node._ownerShadyRoot === undefined) {
-        var root;
+      var root = node._ownerShadyRoot;
+      if (root === undefined) {
         if (node._isShadyRoot) {
           root = node;
         } else {
@@ -183,9 +183,16 @@
            root = null;
           }
         }
-        node._ownerShadyRoot = root;
+        // memo-ize result for performance but only memo-ize a false-y
+        // result if node is in the document. This avoids a problem where a root
+        // can be cached while an element is inside a fragment. 
+        // If this happens and we cache the result, the value can become stale
+        // because for perf we avoid processing the subtree of added fragments.
+        if (root || document.contains(node)) {
+          node._ownerShadyRoot = root;
+        }
       }
-      return node._ownerShadyRoot;
+      return root;
     },
 
     _maybeDistribute: function(node) {
diff --git a/test/smoke/owner-root.html b/test/smoke/owner-root.html
new file mode 100644
index 0000000000..f4ef1120fa
--- /dev/null
+++ b/test/smoke/owner-root.html
@@ -0,0 +1,59 @@
+<!doctype html>
+<html>
+<head>
+
+  <title>early owner-root</title>
+
+  <meta charset="utf-8">
+  <meta name="viewport" content="width=device-width, initial-scale=1.0">
+
+  <script src="../../../webcomponentsjs/webcomponents-lite.js"></script>
+  <link rel="import" href="../../polymer.html">
+
+</head>
+<body>
+
+
+  <dom-module id="x-owner-root">
+    <template>where am I?</template>
+    <script>
+      Polymer({
+        is: 'x-owner-root',
+
+        properties: {
+          nug: {type: String, observer: '_nugChanged'}
+        },
+
+        _nugChanged: function() {
+          console.log(this.localName, Polymer.dom(this).getOwnerRoot());
+        }
+
+        
+      });
+    </script>
+  </dom-module>
+
+  <dom-module id="x-test">
+    <template>
+      <template is="dom-if" if="{{foo}}">
+        <x-owner-root nug="foo"></x-owner-root>
+      </template>
+    </template>
+    <script>
+      Polymer({
+        is: 'x-test',
+        attached: function() {
+          this.foo = true;
+          Polymer.dom.flush();
+          var e = Polymer.dom(this.root).querySelector('x-owner-root');
+          var r = e && Polymer.dom(e).getOwnerRoot();
+          console.log(e, r, r === this.root);
+        }
+      });
+    </script>
+  </dom-module>
+
+  <x-test></x-test>
+
+</body>
+</html>
diff --git a/test/unit/polymer-dom.js b/test/unit/polymer-dom.js
index ab9f735d7f..80a330775e 100644
--- a/test/unit/polymer-dom.js
+++ b/test/unit/polymer-dom.js
@@ -1207,6 +1207,24 @@ suite('Polymer.dom non-distributed elements', function() {
     assert.equal(Polymer.dom(test).getOwnerRoot(), c1.root, 'getOwnerRoot incorrect for child added to element in root');
   });
 
+  test('getOwnerRoot when out of tree and adding subtree', function() {
+    var container = document.createDocumentFragment();
+    var test = document.createElement('div');
+    container.appendChild(test);
+    assert.notOk(Polymer.dom(test).getOwnerRoot(), 'getOwnerRoot incorrect when not in root');
+    var c1 = document.createElement('x-compose');
+    var project = c1.$.project;
+    Polymer.dom(project).appendChild(container);
+    Polymer.dom.flush();
+    assert.equal(Polymer.dom(test).getOwnerRoot(), c1.root, 'getOwnerRoot incorrect for child added to element in root');
+    Polymer.dom(project).removeChild(test);
+    Polymer.dom.flush();
+    assert.notOk(Polymer.dom(test).getOwnerRoot(), 'getOwnerRoot incorrect for child moved from a root to no root');
+    Polymer.dom(project).appendChild(test);
+    Polymer.dom.flush();
+    assert.equal(Polymer.dom(test).getOwnerRoot(), c1.root, 'getOwnerRoot incorrect for child added to element in root');
+  });
+
   test('getOwnerRoot, subtree', function() {
     var test = document.createElement('div');
     var testChild = document.createElement('div');
