diff --git a/src/ng/location.js b/src/ng/location.js
index 12f6c14cc0cb..0a47445f6f87 100644
--- a/src/ng/location.js
+++ b/src/ng/location.js
@@ -659,16 +659,17 @@ function $LocationProvider(){
     // update $location when $browser url changes
     $browser.onUrlChange(function(newUrl) {
       if ($location.absUrl() != newUrl) {
-        if ($rootScope.$broadcast('$locationChangeStart', newUrl,
-                                  $location.absUrl()).defaultPrevented) {
-          $browser.url($location.absUrl());
-          return;
-        }
         $rootScope.$evalAsync(function() {
           var oldUrl = $location.absUrl();
 
           $location.$$parse(newUrl);
-          afterLocationChange(oldUrl);
+          if ($rootScope.$broadcast('$locationChangeStart', newUrl,
+                                    oldUrl).defaultPrevented) {
+            $location.$$parse(oldUrl);
+            $browser.url(oldUrl);
+          } else {
+            afterLocationChange(oldUrl);
+          }
         });
         if (!$rootScope.$$phase) $rootScope.$digest();
       }
diff --git a/test/ng/locationSpec.js b/test/ng/locationSpec.js
index f23965f80ee5..ff823d306efd 100644
--- a/test/ng/locationSpec.js
+++ b/test/ng/locationSpec.js
@@ -4,6 +4,8 @@
 describe('$location', function() {
   var url;
 
+  beforeEach(module(provideLog));
+
   afterEach(function() {
     // link rewriting used in html5 mode on legacy browsers binds to document.onClick, so we need
     // to clean this up after each test.
@@ -1401,6 +1403,32 @@ describe('$location', function() {
         dealoc($rootElement);
       });
     });
+
+    it('should always return the new url value via path() when $locationChangeStart event occurs regardless of cause',
+      inject(function($location, $rootScope, $browser, log) {
+        var base = $browser.url();
+
+        $rootScope.$on('$locationChangeStart', function() {
+          log($location.path());
+        });
+
+        // change through $location service
+        $rootScope.$apply(function() {
+          $location.path('/myNewPath');
+        });
+
+        // reset location
+        $rootScope.$apply(function() {
+          $location.path('');
+        });
+
+        // change through $browser
+        $browser.url(base + '#/myNewPath');
+        $browser.poll();
+
+        expect(log).toEqual(['/myNewPath', '/', '/myNewPath']);
+      })
+    );
   });
 
   describe('LocationHtml5Url', function() {