diff --git a/src/ng/compile.js b/src/ng/compile.js
index f5b0d450edea..74c14752a319 100644
--- a/src/ng/compile.js
+++ b/src/ng/compile.js
@@ -1842,12 +1842,22 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
     function compileNodes(nodeList, transcludeFn, $rootElement, maxPriority, ignoreDirective,
                             previousCompileContext) {
       var linkFns = [],
+          // `nodeList` can be either an element's `.childNodes` (live NodeList)
+          // or a jqLite/jQuery collection or an array
+          notLiveList = isArray(nodeList) || (nodeList instanceof jqLite),
           attrs, directives, nodeLinkFn, childNodes, childLinkFn, linkFnFound, nodeLinkFnFound;
 
+
       for (var i = 0; i < nodeList.length; i++) {
         attrs = new Attributes();
 
-        // we must always refer to nodeList[i] since the nodes can be replaced underneath us.
+        // Workaround for #11781 and #14924
+        if (msie === 11) {
+          mergeConsecutiveTextNodes(nodeList, i, notLiveList);
+        }
+
+        // We must always refer to `nodeList[i]` hereafter,
+        // since the nodes can be replaced underneath us.
         directives = collectDirectives(nodeList[i], [], attrs, i === 0 ? maxPriority : undefined,
                                         ignoreDirective);
 
@@ -1938,6 +1948,32 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
       }
     }
 
+    function mergeConsecutiveTextNodes(nodeList, idx, notLiveList) {
+      var node = nodeList[idx];
+      var parent = node.parentNode;
+      var sibling;
+
+      if (node.nodeType !== NODE_TYPE_TEXT) {
+        return;
+      }
+
+      while (true) {
+        sibling = parent ? node.nextSibling : nodeList[idx + 1];
+        if (!sibling || sibling.nodeType !== NODE_TYPE_TEXT) {
+          break;
+        }
+
+        node.nodeValue = node.nodeValue + sibling.nodeValue;
+
+        if (sibling.parentNode) {
+          sibling.parentNode.removeChild(sibling);
+        }
+        if (notLiveList && sibling === nodeList[idx + 1]) {
+          nodeList.splice(idx + 1, 1);
+        }
+      }
+    }
+
     function createBoundTranscludeFn(scope, transcludeFn, previousBoundTranscludeFn) {
       function boundTranscludeFn(transcludedScope, cloneFn, controllers, futureParentElement, containingScope) {
 
@@ -2046,13 +2082,6 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
           }
           break;
         case NODE_TYPE_TEXT: /* Text Node */
-          if (msie === 11) {
-            // Workaround for #11781
-            while (node.parentNode && node.nextSibling && node.nextSibling.nodeType === NODE_TYPE_TEXT) {
-              node.nodeValue = node.nodeValue + node.nextSibling.nodeValue;
-              node.parentNode.removeChild(node.nextSibling);
-            }
-          }
           addTextInterpolateDirective(directives, node.nodeValue);
           break;
         case NODE_TYPE_COMMENT: /* Comment */
@@ -2325,9 +2354,9 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
 
             var slots = createMap();
 
-            $template = jqLite(jqLiteClone(compileNode)).contents();
-
-            if (isObject(directiveValue)) {
+            if (!isObject(directiveValue)) {
+              $template = jqLite(jqLiteClone(compileNode)).contents();
+            } else {
 
               // We have transclusion slots,
               // collect them up, compile them and store their transclusion functions
diff --git a/test/ng/compileSpec.js b/test/ng/compileSpec.js
index bfed32aed046..77cfca8f8ff1 100755
--- a/test/ng/compileSpec.js
+++ b/test/ng/compileSpec.js
@@ -3260,6 +3260,26 @@ describe('$compile', function() {
     }));
 
 
+    it('should not process text nodes merged into their sibling', inject(function($compile, $rootScope) {
+      var div = document.createElement('div');
+      div.appendChild(document.createTextNode('1{{ value }}'));
+      div.appendChild(document.createTextNode('2{{ value }}'));
+      div.appendChild(document.createTextNode('3{{ value }}'));
+
+      element = jqLite(div.childNodes);
+
+      var initialWatcherCount = $rootScope.$countWatchers();
+      $compile(element)($rootScope);
+      $rootScope.$apply('value = 0');
+      var newWatcherCount = $rootScope.$countWatchers() - initialWatcherCount;
+
+      expect(element.text()).toBe('102030');
+      expect(newWatcherCount).toBe(3);
+
+      dealoc(div);
+    }));
+
+
     it('should support custom start/end interpolation symbols in template and directive template',
         function() {
       module(function($interpolateProvider, $compileProvider) {
@@ -8530,10 +8550,38 @@ describe('$compile', function() {
           element = $compile('<div transclude><div child></div></div>')($rootScope);
           expect(capturedChildCtrl).toBeTruthy();
         });
-
       });
 
 
+      // See issue https://github.com/angular/angular.js/issues/14924
+      it('should not process top-level transcluded text nodes merged into their sibling',
+        function() {
+          module(function() {
+            directive('transclude', valueFn({
+              template: '<ng-transclude></ng-transclude>',
+              transclude: true,
+              scope: {}
+            }));
+          });
+
+          inject(function($compile) {
+            element = jqLite('<div transclude></div>');
+            element[0].appendChild(document.createTextNode('1{{ value }}'));
+            element[0].appendChild(document.createTextNode('2{{ value }}'));
+            element[0].appendChild(document.createTextNode('3{{ value }}'));
+
+            var initialWatcherCount = $rootScope.$countWatchers();
+            $compile(element)($rootScope);
+            $rootScope.$apply('value = 0');
+            var newWatcherCount = $rootScope.$countWatchers() - initialWatcherCount;
+
+            expect(element.text()).toBe('102030');
+            expect(newWatcherCount).toBe(3);
+          });
+        }
+      );
+
+
       // see issue https://github.com/angular/angular.js/issues/9413
       describe('passing a parent bound transclude function to the link ' +
           'function returned from `$compile`', function() {
@@ -9996,6 +10044,39 @@ describe('$compile', function() {
         expect(element.children().eq(2).text()).toEqual('dorothy');
       });
     });
+
+
+    // See issue https://github.com/angular/angular.js/issues/14924
+    it('should not process top-level transcluded text nodes merged into their sibling',
+      function() {
+        module(function() {
+          directive('transclude', valueFn({
+            template: '<ng-transclude></ng-transclude>',
+            transclude: {},
+            scope: {}
+          }));
+        });
+
+        inject(function($compile) {
+          element = jqLite('<div transclude></div>');
+          element[0].appendChild(document.createTextNode('1{{ value }}'));
+          element[0].appendChild(document.createTextNode('2{{ value }}'));
+          element[0].appendChild(document.createTextNode('3{{ value }}'));
+
+          var initialWatcherCount = $rootScope.$countWatchers();
+          $compile(element)($rootScope);
+          $rootScope.$apply('value = 0');
+          var newWatcherCount = $rootScope.$countWatchers() - initialWatcherCount;
+
+          expect(element.text()).toBe('102030');
+          expect(newWatcherCount).toBe(3);
+
+          if (msie === 11) {
+            expect(element.find('ng-transclude').contents().length).toBe(1);
+          }
+        });
+      }
+    );
   });