diff --git a/src/ng/compile.js b/src/ng/compile.js
index 393ab6375a27..cf60862b029b 100644
--- a/src/ng/compile.js
+++ b/src/ng/compile.js
@@ -2027,8 +2027,8 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
 
       function nodeLinkFn(childLinkFn, scope, linkNode, $rootElement, boundTranscludeFn,
                           thisLinkFn) {
-        var i, ii, linkFn, controller, isolateScope, elementControllers, transcludeFn, $element,
-            attrs;
+        var i, ii, linkFn, controller, isolateScope, parentScope, elementControllers, transcludeFn,
+            $element, attrs;
 
         if (compileNode === linkNode) {
           attrs = templateAttrs;
@@ -2042,6 +2042,8 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
           isolateScope = scope.$new(true);
         }
 
+        parentScope = (newScopeDirective && !newIsolateScopeDirective) ? scope.$parent : scope;
+
         if (boundTranscludeFn) {
           // track `boundTranscludeFn` so it can be unwrapped if `transcludeFn`
           // is later passed as `parentBoundTranscludeFn` to `publicLinkFn`
@@ -2060,7 +2062,7 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
           compile.$$addScopeClass($element, true);
           isolateScope.$$isolateBindings =
               newIsolateScopeDirective.$$isolateBindings;
-          initializeDirectiveBindings(scope, attrs, isolateScope,
+          initializeDirectiveBindings(parentScope, attrs, isolateScope,
                                       isolateScope.$$isolateBindings,
                                       newIsolateScopeDirective, isolateScope);
         }
@@ -2076,7 +2078,7 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
             if (controller && controller.identifier && bindings) {
               controllerForBindings = controller;
               thisLinkFn.$$destroyBindings =
-                  initializeDirectiveBindings(scope, attrs, controller.instance,
+                  initializeDirectiveBindings(parentScope, attrs, controller.instance,
                                               bindings, scopeDirective);
             }
           }
@@ -2093,7 +2095,7 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
                 // Remove and re-install bindToController bindings
                 thisLinkFn.$$destroyBindings();
                 thisLinkFn.$$destroyBindings =
-                  initializeDirectiveBindings(scope, attrs, controllerResult, bindings, scopeDirective);
+                  initializeDirectiveBindings(parentScope, attrs, controllerResult, bindings, scopeDirective);
               }
             }
           }
diff --git a/test/ng/compileSpec.js b/test/ng/compileSpec.js
index 767600571601..a09832a7d1cf 100755
--- a/test/ng/compileSpec.js
+++ b/test/ng/compileSpec.js
@@ -4406,6 +4406,66 @@ describe('$compile', function() {
     });
 
 
+    it('should evaluate against the correct scope, when using `bindToController` (new scope)',
+      function() {
+        module(function($compileProvider, $controllerProvider) {
+          $controllerProvider.register({
+            'ParentCtrl': function() {
+              this.value1 = 'parent1';
+              this.value2 = 'parent2';
+              this.value3 = function() { return 'parent3'; };
+            },
+            'ChildCtrl': function() {
+              this.value1 = 'child1';
+              this.value2 = 'child2';
+              this.value3 = function() { return 'child3'; };
+            }
+          });
+
+          $compileProvider.directive('child', valueFn({
+            scope: true,
+            controller: 'ChildCtrl',
+            controllerAs: 'ctrl',
+            bindToController: {
+              fromView1: '@',
+              fromView2: '=',
+              fromView3: '&'
+            },
+            template: ''
+          }));
+        });
+
+        inject(function($compile, $rootScope) {
+          element = $compile(
+              '<div ng-controller="ParentCtrl as ctrl">' +
+                '<child ' +
+                    'from-view-1="{{ ctrl.value1 }}" ' +
+                    'from-view-2="ctrl.value2" ' +
+                    'from-view-3="ctrl.value3">' +
+                '</child>' +
+              '</div>')($rootScope);
+          $rootScope.$digest();
+
+          var parentCtrl = element.controller('ngController');
+          var childCtrl = element.find('child').controller('child');
+
+          expect(childCtrl.fromView1).toBe(parentCtrl.value1);
+          expect(childCtrl.fromView1).not.toBe(childCtrl.value1);
+          expect(childCtrl.fromView2).toBe(parentCtrl.value2);
+          expect(childCtrl.fromView2).not.toBe(childCtrl.value2);
+          expect(childCtrl.fromView3()()).toBe(parentCtrl.value3());
+          expect(childCtrl.fromView3()()).not.toBe(childCtrl.value3());
+
+          childCtrl.fromView2 = 'modified';
+          $rootScope.$digest();
+
+          expect(parentCtrl.value2).toBe('modified');
+          expect(childCtrl.value2).toBe('child2');
+        });
+      }
+    );
+
+
     it('should put controller in scope when controller identifier present but not using controllerAs', function() {
       var controllerCalled = false;
       var myCtrl;