diff --git a/src/ng/directive/ngTransclude.js b/src/ng/directive/ngTransclude.js
index 0b9b919da80a..71d0635aab7f 100644
--- a/src/ng/directive/ngTransclude.js
+++ b/src/ng/directive/ngTransclude.js
@@ -5,7 +5,9 @@
  * @name ng.directive:ngTransclude
  *
  * @description
- * Insert the transcluded DOM here.
+ * Directive that marks the insertion point for the transcluded DOM of the nearest parent directive that uses transclusion.
+ *
+ * Any existing content of the element that this directive is placed on will be removed before the transcluded content is inserted.
  *
  * @element ANY
  *
@@ -58,6 +60,7 @@ var ngTranscludeDirective = ngDirective({
 
   link: function($scope, $element, $attrs, controller) {
     controller.$transclude(function(clone) {
+      $element.html('');
       $element.append(clone);
     });
   }
diff --git a/test/ng/compileSpec.js b/test/ng/compileSpec.js
index 7c24e1d98feb..844511a3bb3d 100755
--- a/test/ng/compileSpec.js
+++ b/test/ng/compileSpec.js
@@ -2450,7 +2450,7 @@ describe('$compile', function() {
         element = $compile('<div parent-directive><div child-directive></div>childContentText;</div>')($rootScope);
         $rootScope.$apply();
         expect(log).toEqual('parentController; childController');
-        expect(element.text()).toBe('parentTemplateText;childTemplateText;childContentText;')
+        expect(element.text()).toBe('childTemplateText;childContentText;')
       });
     });
 
@@ -2554,7 +2554,7 @@ describe('$compile', function() {
                             '</div>')($rootScope);
         $rootScope.$apply();
         expect(log).toEqual('parentController; childController; babyController');
-        expect(element.text()).toBe('parentTemplateText;childTemplateText;childContentText;babyTemplateText;')
+        expect(element.text()).toBe('childContentText;babyTemplateText;')
       });
     });
 
@@ -2825,6 +2825,24 @@ describe('$compile', function() {
     });
 
 
+    it('should clear contents of the ng-translude element before appending transcluded content',
+        function() {
+      module(function() {
+        directive('trans', function() {
+          return {
+            transclude: true,
+            template: '<div ng-transclude>old stuff! </div>'
+          };
+        });
+      });
+      inject(function(log, $rootScope, $compile) {
+        element = $compile('<div trans>unicorn!</div>')($rootScope);
+        $rootScope.$apply();
+        expect(sortedHtml(element.html())).toEqual('<div ng-transclude=""><span>unicorn!</span></div>');
+      });
+    });
+
+
     it('should make the result of a transclusion available to the parent directive in post-linking phase (template)',
         function() {
       module(function() {