diff --git a/src/ng/compile.js b/src/ng/compile.js
index fd3c228e3de7..80006e5cec7b 100644
--- a/src/ng/compile.js
+++ b/src/ng/compile.js
@@ -1047,27 +1047,28 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
                            maxPriority, ignoreDirective, previousCompileContext);
       compile.$$addScopeClass($compileNodes);
       var namespace = null;
-      var namespaceAdaptedCompileNodes = $compileNodes;
-      var lastCompileNode;
       return function publicLinkFn(scope, cloneConnectFn, transcludeControllers, parentBoundTranscludeFn, futureParentElement){
         assertArg(scope, 'scope');
         if (!namespace) {
           namespace = detectNamespaceForChildElements(futureParentElement);
         }
-        if (namespace !== 'html' && $compileNodes[0] !== lastCompileNode) {
-          namespaceAdaptedCompileNodes = jqLite(
+        var $linkNode;
+        if (namespace !== 'html') {
+          // When using a directive with replace:true and templateUrl the $compileNodes
+          // (or a child element inside of them)
+          // might change, so we need to recreate the namespace adapted compileNodes
+          // for call to the link function.
+          // Note: This will already clone the nodes...
+          $linkNode = jqLite(
             wrapTemplate(namespace, jqLite('<div>').append($compileNodes).html())
           );
+        } else if (cloneConnectFn) {
+          // important!!: we must call our jqLite.clone() since the jQuery one is trying to be smart
+          // and sometimes changes the structure of the DOM.
+          $linkNode = JQLitePrototype.clone.call($compileNodes);
+        } else {
+          $linkNode = $compileNodes;
         }
-        // When using a directive with replace:true and templateUrl the $compileNodes
-        // might change, so we need to recreate the namespace adapted compileNodes.
-        lastCompileNode = $compileNodes[0];
-
-        // important!!: we must call our jqLite.clone() since the jQuery one is trying to be smart
-        // and sometimes changes the structure of the DOM.
-        var $linkNode = cloneConnectFn
-          ? JQLitePrototype.clone.call(namespaceAdaptedCompileNodes) // IMPORTANT!!!
-          : namespaceAdaptedCompileNodes;
 
         if (transcludeControllers) {
           for (var controllerName in transcludeControllers) {
diff --git a/test/ng/compileSpec.js b/test/ng/compileSpec.js
index 816aa4a7b503..5f44fa3ddc7f 100755
--- a/test/ng/compileSpec.js
+++ b/test/ng/compileSpec.js
@@ -300,7 +300,7 @@ describe('$compile', function() {
       });
       inject(function($compile, $rootScope, $httpBackend) {
         $httpBackend.expect('GET', 'template.html').respond('<circle></circle>');
-        element = $compile('<svg><svg-circle-url ng-repeat="l in list"/></svg>')($rootScope);
+        element = $compile('<svg><g ng-repeat="l in list"><svg-circle-url></svg-circle-url></g></svg>')($rootScope);
 
         // initially the template is not yet loaded
         $rootScope.$apply(function() {