diff --git a/src/ng/directive/ngModel.js b/src/ng/directive/ngModel.js
index 1db2283586c4..7257b5a08dd6 100644
--- a/src/ng/directive/ngModel.js
+++ b/src/ng/directive/ngModel.js
@@ -233,6 +233,7 @@ var NgModelController = ['$scope', '$exceptionHandler', '$attrs', '$element', '$
   this.$dirty = false;
   this.$valid = true;
   this.$invalid = false;
+  this.$$parseError = false;
   this.$error = {}; // keep invalid keys here
   this.$$success = {}; // keep valid keys here
   this.$pending = undefined; // keep pending keys here
@@ -518,7 +519,7 @@ var NgModelController = ['$scope', '$exceptionHandler', '$attrs', '$element', '$
 
     // Check if the there's a parse error, so we don't unset it accidentially
     var parserName = ctrl.$$parserName || 'parse';
-    var parserValid = ctrl.$error[parserName] ? false : undefined;
+    var parserValid = ctrl.$$parseError ? false : undefined;
 
     var prevValid = ctrl.$valid;
     var prevModelValue = ctrl.$modelValue;
@@ -563,7 +564,6 @@ var NgModelController = ['$scope', '$exceptionHandler', '$attrs', '$element', '$
       if (parseValid === undefined) {
         setValidity(errorKey, null);
       } else {
-        setValidity(errorKey, parseValid);
         if (!parseValid) {
           forEach(ctrl.$validators, function(v, name) {
             setValidity(name, null);
@@ -571,9 +571,14 @@ var NgModelController = ['$scope', '$exceptionHandler', '$attrs', '$element', '$
           forEach(ctrl.$asyncValidators, function(v, name) {
             setValidity(name, null);
           });
-          return false;
+          ctrl.$$parseError = true;
         }
+        // Set the parse error last, to prevent unsetting it, should a $validators key == parserName
+        setValidity(errorKey, parseValid);
+        return parseValid;
       }
+
+      ctrl.$$parseError = false;
       return true;
     }
 
@@ -814,6 +819,7 @@ var NgModelController = ['$scope', '$exceptionHandler', '$attrs', '$element', '$
     // TODO(perf): why not move this to the action fn?
     if (modelValue !== ctrl.$modelValue) {
       ctrl.$modelValue = ctrl.$$rawModelValue = modelValue;
+      ctrl.$$parseError = false;
 
       var formatters = ctrl.$formatters,
           idx = formatters.length;
diff --git a/test/ng/directive/ngModelSpec.js b/test/ng/directive/ngModelSpec.js
index 583414deaa9c..b7857ad3dc0a 100644
--- a/test/ng/directive/ngModelSpec.js
+++ b/test/ng/directive/ngModelSpec.js
@@ -1221,6 +1221,96 @@ describe('ngModel', function() {
         expect(ctrl.$validators.mock).toHaveBeenCalledWith('a', 'ab');
         expect(ctrl.$validators.mock.calls.length).toEqual(2);
       });
+
+      iit('should validate correctly when $parser name equals $validator key', function() {
+
+        ctrl.$validators.parserOrValidator = function(value) {
+          switch (value) {
+            case 'allInvalid':
+            case 'parseValid-validatorsInvalid':
+            case 'stillParseValid-validatorsInvalid':
+              return false;
+            default:
+              return true;
+          }
+        };
+
+        ctrl.$validators.validator = function(value) {
+          switch (value) {
+            case 'allInvalid':
+            case 'parseValid-validatorsInvalid':
+            case 'stillParseValid-validatorsInvalid':
+              return false;
+            default:
+              return true;
+          }
+        };
+
+        ctrl.$$parserName = 'parserOrValidator';
+        ctrl.$parsers.push(function(value) {
+          switch (value) {
+            case 'allInvalid':
+            case 'stillAllInvalid':
+            case 'parseInvalid-validatorsValid':
+            case 'stillParseInvalid-validatorsValid':
+              return undefined;
+            default:
+              return value;
+          }
+        });
+
+        //Parser and validators are invalid
+        scope.$apply('value = "allInvalid"');
+        expect(scope.value).toBe('allInvalid');
+        expect(ctrl.$error).toEqual({parserOrValidator: true, validator: true});
+
+        ctrl.$validate();
+        expect(scope.value).toEqual('allInvalid');
+        expect(ctrl.$error).toEqual({parserOrValidator: true, validator: true});
+
+        ctrl.$setViewValue('stillAllInvalid');
+        expect(scope.value).toBeUndefined();
+        expect(ctrl.$error).toEqual({parserOrValidator: true});
+
+        ctrl.$validate();
+        expect(scope.value).toBeUndefined();
+        expect(ctrl.$error).toEqual({parserOrValidator: true});
+
+        //Parser is valid, validators are invalid
+        scope.$apply('value = "parseValid-validatorsInvalid"');
+        expect(scope.value).toBe('parseValid-validatorsInvalid');
+        expect(ctrl.$error).toEqual({parserOrValidator: true, validator: true});
+
+        ctrl.$validate();
+        expect(scope.value).toBe('parseValid-validatorsInvalid');
+        expect(ctrl.$error).toEqual({parserOrValidator: true, validator: true});
+
+        ctrl.$setViewValue('stillParseValid-validatorsInvalid');
+        expect(scope.value).toBeUndefined();
+        expect(ctrl.$error).toEqual({parserOrValidator: true, validator: true});
+
+        ctrl.$validate();
+        expect(scope.value).toBeUndefined();
+        expect(ctrl.$error).toEqual({parserOrValidator: true, validator: true});
+
+        //Parser is invalid, validators are valid
+        scope.$apply('value = "parseInvalid-validatorsValid"');
+        expect(scope.value).toBe('parseInvalid-validatorsValid');
+        expect(ctrl.$error).toEqual({});
+
+        ctrl.$validate();
+        expect(scope.value).toBe('parseInvalid-validatorsValid');
+        expect(ctrl.$error).toEqual({});
+
+        ctrl.$setViewValue('stillParseInvalid-validatorsValid');
+        expect(scope.value).toBeUndefined();
+        expect(ctrl.$error).toEqual({parserOrValidator: true});
+
+        ctrl.$validate();
+        expect(scope.value).toBeUndefined();
+        expect(ctrl.$error).toEqual({parserOrValidator: true});
+      });
+
     });
   });