diff --git a/src/ng/compile.js b/src/ng/compile.js
index 2d2bede440d..06b9bac5b41 100644
--- a/src/ng/compile.js
+++ b/src/ng/compile.js
@@ -2360,82 +2360,6 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
         }
       }
 
-
-      function getControllers(directiveName, require, $element, elementControllers) {
-        var value;
-
-        if (isString(require)) {
-          var match = require.match(REQUIRE_PREFIX_REGEXP);
-          var name = require.substring(match[0].length);
-          var inheritType = match[1] || match[3];
-          var optional = match[2] === '?';
-
-          //If only parents then start at the parent element
-          if (inheritType === '^^') {
-            $element = $element.parent();
-          //Otherwise attempt getting the controller from elementControllers in case
-          //the element is transcluded (and has no data) and to avoid .data if possible
-          } else {
-            value = elementControllers && elementControllers[name];
-            value = value && value.instance;
-          }
-
-          if (!value) {
-            var dataName = '$' + name + 'Controller';
-            value = inheritType ? $element.inheritedData(dataName) : $element.data(dataName);
-          }
-
-          if (!value && !optional) {
-            throw $compileMinErr('ctreq',
-                "Controller '{0}', required by directive '{1}', can't be found!",
-                name, directiveName);
-          }
-        } else if (isArray(require)) {
-          value = [];
-          for (var i = 0, ii = require.length; i < ii; i++) {
-            value[i] = getControllers(directiveName, require[i], $element, elementControllers);
-          }
-        } else if (isObject(require)) {
-          value = {};
-          forEach(require, function(controller, property) {
-            value[property] = getControllers(directiveName, controller, $element, elementControllers);
-          });
-        }
-
-        return value || null;
-      }
-
-      function setupControllers($element, attrs, transcludeFn, controllerDirectives, isolateScope, scope) {
-        var elementControllers = createMap();
-        for (var controllerKey in controllerDirectives) {
-          var directive = controllerDirectives[controllerKey];
-          var locals = {
-            $scope: directive === newIsolateScopeDirective || directive.$$isolateScope ? isolateScope : scope,
-            $element: $element,
-            $attrs: attrs,
-            $transclude: transcludeFn
-          };
-
-          var controller = directive.controller;
-          if (controller == '@') {
-            controller = attrs[directive.name];
-          }
-
-          var controllerInstance = $controller(controller, locals, true, directive.controllerAs);
-
-          // For directives with element transclusion the element is a comment,
-          // but jQuery .data doesn't support attaching data to comment nodes as it's hard to
-          // clean up (http://bugs.jquery.com/ticket/8335).
-          // Instead, we save the controllers for the element in a local hash and attach to .data
-          // later, once we have the actual element.
-          elementControllers[directive.name] = controllerInstance;
-          if (!hasElementTranscludeDirective) {
-            $element.data('$' + directive.name + 'Controller', controllerInstance.instance);
-          }
-        }
-        return elementControllers;
-      }
-
       function nodeLinkFn(childLinkFn, scope, linkNode, $rootElement, boundTranscludeFn) {
         var i, ii, linkFn, isolateScope, controllerScope, elementControllers, transcludeFn, $element,
             attrs, removeScopeBindingWatches, removeControllerBindingWatches;
@@ -2467,7 +2391,7 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
         }
 
         if (controllerDirectives) {
-          elementControllers = setupControllers($element, attrs, transcludeFn, controllerDirectives, isolateScope, scope);
+          elementControllers = setupControllers($element, attrs, transcludeFn, controllerDirectives, isolateScope, scope, newIsolateScopeDirective);
         }
 
         if (newIsolateScopeDirective) {
@@ -2595,6 +2519,78 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
       }
     }
 
+    function getControllers(directiveName, require, $element, elementControllers) {
+      var value;
+
+      if (isString(require)) {
+        var match = require.match(REQUIRE_PREFIX_REGEXP);
+        var name = require.substring(match[0].length);
+        var inheritType = match[1] || match[3];
+        var optional = match[2] === '?';
+
+        //If only parents then start at the parent element
+        if (inheritType === '^^') {
+          $element = $element.parent();
+        //Otherwise attempt getting the controller from elementControllers in case
+        //the element is transcluded (and has no data) and to avoid .data if possible
+        } else {
+          value = elementControllers && elementControllers[name];
+          value = value && value.instance;
+        }
+
+        if (!value) {
+          var dataName = '$' + name + 'Controller';
+          value = inheritType ? $element.inheritedData(dataName) : $element.data(dataName);
+        }
+
+        if (!value && !optional) {
+          throw $compileMinErr('ctreq',
+              "Controller '{0}', required by directive '{1}', can't be found!",
+              name, directiveName);
+        }
+      } else if (isArray(require)) {
+        value = [];
+        for (var i = 0, ii = require.length; i < ii; i++) {
+          value[i] = getControllers(directiveName, require[i], $element, elementControllers);
+        }
+      } else if (isObject(require)) {
+        value = {};
+        forEach(require, function(controller, property) {
+          value[property] = getControllers(directiveName, controller, $element, elementControllers);
+        });
+      }
+
+      return value || null;
+    }
+
+    function setupControllers($element, attrs, transcludeFn, controllerDirectives, isolateScope, scope, newIsolateScopeDirective) {
+      var elementControllers = createMap();
+      for (var controllerKey in controllerDirectives) {
+        var directive = controllerDirectives[controllerKey];
+        var locals = {
+          $scope: directive === newIsolateScopeDirective || directive.$$isolateScope ? isolateScope : scope,
+          $element: $element,
+          $attrs: attrs,
+          $transclude: transcludeFn
+        };
+
+        var controller = directive.controller;
+        if (controller == '@') {
+          controller = attrs[directive.name];
+        }
+
+        var controllerInstance = $controller(controller, locals, true, directive.controllerAs);
+
+        // For directives with element transclusion the element is a comment.
+        // In this case .data will not attach any data.
+        // Instead, we save the controllers for the element in a local hash and attach to .data
+        // later, once we have the actual element.
+        elementControllers[directive.name] = controllerInstance;
+        $element.data('$' + directive.name + 'Controller', controllerInstance.instance);
+      }
+      return elementControllers;
+    }
+
     // Depending upon the context in which a directive finds itself it might need to have a new isolated
     // or child scope created. For instance:
     // * if the directive has been pulled into a template because another directive with a higher priority