diff --git a/src/ng/directive/select.js b/src/ng/directive/select.js
index 0b562cca686c..628d21776b85 100644
--- a/src/ng/directive/select.js
+++ b/src/ng/directive/select.js
@@ -394,6 +394,12 @@ var selectDirective = ['$compile', '$parse', function($compile,   $parse) {
                   value = valueFn(scope, locals);
                 }
               }
+              // Update the null option's selected property here so $render cleans it up correctly
+              if (optionGroupsCache[0].length > 1) {
+                if (optionGroupsCache[0][1].id !== key) {
+                  optionGroupsCache[0][1].selected = false;
+                }
+              }
             }
             ctrl.$setViewValue(value);
           });
@@ -531,7 +537,7 @@ var selectDirective = ['$compile', '$parse', function($compile,   $parse) {
                   lastElement.val(existingOption.id = option.id);
                 }
                 // lastElement.prop('selected') provided by jQuery has side-effects
-                if (lastElement[0].selected !== option.selected) {
+                if (existingOption.selected !== option.selected) {
                   lastElement.prop('selected', (existingOption.selected = option.selected));
                 }
               } else {
diff --git a/test/ng/directive/selectSpec.js b/test/ng/directive/selectSpec.js
index 6fcd1fe05f82..d270f438704f 100644
--- a/test/ng/directive/selectSpec.js
+++ b/test/ng/directive/selectSpec.js
@@ -733,6 +733,27 @@ describe('select', function() {
       expect(sortedHtml(options[2])).toEqual('<option value="1">3</option>');
     });
 
+    it('should not update selected property of an option element on digest with no change event',
+        function() {
+      createSingleSelect();
+
+      scope.$apply(function() {
+        scope.values = [{name: 'A'}, {name: 'B'}, {name: 'C'}];
+        scope.selected = scope.values[0];
+      });
+
+      var options = element.find('option');
+      var optionToSelect = options.eq(1);
+
+      expect(optionToSelect.text()).toBe('B');
+
+      optionToSelect.prop('selected', true);
+      scope.$digest();
+
+      expect(optionToSelect.prop('selected')).toBe(true);
+      expect(scope.selected).toBe(scope.values[0]);
+    });
+
     describe('binding', function() {
 
       it('should bind to scope value', function() {