diff --git a/src/ng/compile.js b/src/ng/compile.js
index 2376257b5331..b333b079aa82 100644
--- a/src/ng/compile.js
+++ b/src/ng/compile.js
@@ -2084,7 +2084,7 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
       }
 
       function nodeLinkFn(childLinkFn, scope, linkNode, $rootElement, boundTranscludeFn) {
-        var linkFn, isolateScope, elementControllers, transcludeFn, $element,
+        var linkFn, isolateScope, controllerScope, elementControllers, transcludeFn, $element,
             attrs, removeScopeBindingWatches, removeControllerBindingWatches;
 
         if (compileNode === linkNode) {
@@ -2095,8 +2095,11 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
           attrs = new Attributes($element, templateAttrs);
         }
 
+        controllerScope = scope;
         if (newIsolateScopeDirective) {
           isolateScope = scope.$new(true);
+        } else if (newScopeDirective) {
+          controllerScope = scope.$parent;
         }
 
         if (boundTranscludeFn) {
@@ -2133,7 +2136,7 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
 
           if (controller.identifier && bindings) {
             removeControllerBindingWatches =
-              initializeDirectiveBindings(scope, attrs, controller.instance, bindings, controllerDirective);
+              initializeDirectiveBindings(controllerScope, attrs, controller.instance, bindings, controllerDirective);
           }
 
           var controllerResult = controller();
@@ -2144,7 +2147,7 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
             $element.data('$' + controllerDirective.name + 'Controller', controllerResult);
             removeControllerBindingWatches && removeControllerBindingWatches();
             removeControllerBindingWatches =
-              initializeDirectiveBindings(scope, attrs, controller.instance, bindings, controllerDirective);
+              initializeDirectiveBindings(controllerScope, attrs, controller.instance, bindings, controllerDirective);
           }
         }
 
diff --git a/test/ng/compileSpec.js b/test/ng/compileSpec.js
index 136bec90a25b..db48aa665770 100755
--- a/test/ng/compileSpec.js
+++ b/test/ng/compileSpec.js
@@ -4591,6 +4591,124 @@ 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'; };
+            }
+          });
+
+          $compileProvider.directive('child', valueFn({
+            scope: true,
+            controller: 'ChildCtrl as ctrl',
+            bindToController: {
+              fromParent1: '@',
+              fromParent2: '=',
+              fromParent3: '&'
+            },
+            template: ''
+          }));
+        });
+
+        inject(function($compile, $rootScope) {
+          element = $compile(
+              '<div ng-controller="ParentCtrl as ctrl">' +
+                '<child ' +
+                    'from-parent-1="{{ ctrl.value1 }}" ' +
+                    'from-parent-2="ctrl.value2" ' +
+                    'from-parent-3="ctrl.value3">' +
+                '</child>' +
+              '</div>')($rootScope);
+          $rootScope.$digest();
+
+          var parentCtrl = element.controller('ngController');
+          var childCtrl = element.find('child').controller('child');
+
+          expect(childCtrl.fromParent1).toBe(parentCtrl.value1);
+          expect(childCtrl.fromParent1).not.toBe(childCtrl.value1);
+          expect(childCtrl.fromParent2).toBe(parentCtrl.value2);
+          expect(childCtrl.fromParent2).not.toBe(childCtrl.value2);
+          expect(childCtrl.fromParent3()()).toBe(parentCtrl.value3());
+          expect(childCtrl.fromParent3()()).not.toBe(childCtrl.value3());
+
+          childCtrl.fromParent2 = 'modified';
+          $rootScope.$digest();
+
+          expect(parentCtrl.value2).toBe('modified');
+          expect(childCtrl.value2).toBe('child2');
+        });
+      }
+    );
+
+
+    it('should evaluate against the correct scope, when using `bindToController` (new iso 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'; };
+            }
+          });
+
+          $compileProvider.directive('child', valueFn({
+            scope: {},
+            controller: 'ChildCtrl as ctrl',
+            bindToController: {
+              fromParent1: '@',
+              fromParent2: '=',
+              fromParent3: '&'
+            },
+            template: ''
+          }));
+        });
+
+        inject(function($compile, $rootScope) {
+          element = $compile(
+              '<div ng-controller="ParentCtrl as ctrl">' +
+                '<child ' +
+                    'from-parent-1="{{ ctrl.value1 }}" ' +
+                    'from-parent-2="ctrl.value2" ' +
+                    'from-parent-3="ctrl.value3">' +
+                '</child>' +
+              '</div>')($rootScope);
+          $rootScope.$digest();
+
+          var parentCtrl = element.controller('ngController');
+          var childCtrl = element.find('child').controller('child');
+
+          expect(childCtrl.fromParent1).toBe(parentCtrl.value1);
+          expect(childCtrl.fromParent1).not.toBe(childCtrl.value1);
+          expect(childCtrl.fromParent2).toBe(parentCtrl.value2);
+          expect(childCtrl.fromParent2).not.toBe(childCtrl.value2);
+          expect(childCtrl.fromParent3()()).toBe(parentCtrl.value3());
+          expect(childCtrl.fromParent3()()).not.toBe(childCtrl.value3());
+
+          childCtrl.fromParent2 = '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;