diff --git a/docs/content/error/$compile/badrestrict.ngdoc b/docs/content/error/$compile/badrestrict.ngdoc
new file mode 100644
index 000000000000..7c4eb41a1984
--- /dev/null
+++ b/docs/content/error/$compile/badrestrict.ngdoc
@@ -0,0 +1,18 @@
+@ngdoc error
+@name $compile:badrestrict
+@fullName Invalid Directive Restrict
+@description
+
+This error occurs when the restrict property of a directive is not valid.
+
+The directive restrict property must be a string including one of more of the following characters:
+* E (element)
+* A (attribute)
+* C (class)
+* M (comment)
+
+For example:
+```javascript
+restrict: 'E'
+restrict: 'EAC'
+```
\ No newline at end of file
diff --git a/src/ng/compile.js b/src/ng/compile.js
index 47fc44c2e053..e8a290c3771f 100644
--- a/src/ng/compile.js
+++ b/src/ng/compile.js
@@ -1071,6 +1071,17 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
     return require;
   }
 
+  function getDirectiveRestrict(restrict, name) {
+    if (restrict && !(isString(restrict) && /[EACM]/.test(restrict))) {
+      throw $compileMinErr('badrestrict',
+          'Restrict property \'{0}\' of directive \'{1}\' is invalid',
+          restrict,
+          name);
+    }
+
+    return restrict || 'EA';
+  }
+
   /**
    * @ngdoc method
    * @name $compileProvider#directive
@@ -1109,7 +1120,7 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
                 directive.index = index;
                 directive.name = directive.name || name;
                 directive.require = getDirectiveRequire(directive);
-                directive.restrict = directive.restrict || 'EA';
+                directive.restrict = getDirectiveRestrict(directive.restrict, name);
                 directive.$$moduleName = directiveFactory.$$moduleName;
                 directives.push(directive);
               } catch (e) {
@@ -2905,24 +2916,22 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
       if (hasDirectives.hasOwnProperty(name)) {
         for (var directive, directives = $injector.get(name + Suffix),
             i = 0, ii = directives.length; i < ii; i++) {
-          try {
-            directive = directives[i];
-            if ((isUndefined(maxPriority) || maxPriority > directive.priority) &&
-                 directive.restrict.indexOf(location) !== -1) {
-              if (startAttrName) {
-                directive = inherit(directive, {$$start: startAttrName, $$end: endAttrName});
-              }
-              if (!directive.$$bindings) {
-                var bindings = directive.$$bindings =
-                    parseDirectiveBindings(directive, directive.name);
-                if (isObject(bindings.isolateScope)) {
-                  directive.$$isolateBindings = bindings.isolateScope;
-                }
+          directive = directives[i];
+          if ((isUndefined(maxPriority) || maxPriority > directive.priority) &&
+               directive.restrict.indexOf(location) !== -1) {
+            if (startAttrName) {
+              directive = inherit(directive, {$$start: startAttrName, $$end: endAttrName});
+            }
+            if (!directive.$$bindings) {
+              var bindings = directive.$$bindings =
+                  parseDirectiveBindings(directive, directive.name);
+              if (isObject(bindings.isolateScope)) {
+                directive.$$isolateBindings = bindings.isolateScope;
               }
-              tDirectives.push(directive);
-              match = directive;
             }
-          } catch (e) { $exceptionHandler(e); }
+            tDirectives.push(directive);
+            match = directive;
+          }
         }
       }
       return match;
diff --git a/test/ng/compileSpec.js b/test/ng/compileSpec.js
index 4c57925ec5a1..2249afd65b4a 100755
--- a/test/ng/compileSpec.js
+++ b/test/ng/compileSpec.js
@@ -5869,6 +5869,38 @@ describe('$compile', function() {
     });
 
 
+    it('should throw badrestrict on first compilation when restrict is invalid', function() {
+      module(function($compileProvider, $exceptionHandlerProvider) {
+        $compileProvider.directive('invalidRestrictBadString', valueFn({restrict: '"'}));
+        $compileProvider.directive('invalidRestrictTrue', valueFn({restrict: true}));
+        $compileProvider.directive('invalidRestrictObject', valueFn({restrict: {}}));
+        $compileProvider.directive('invalidRestrictNumber', valueFn({restrict: 42}));
+
+        // We need to test with the exceptionHandler not rethrowing...
+        $exceptionHandlerProvider.mode('log');
+      });
+
+      inject(function($exceptionHandler, $compile, $rootScope) {
+        $compile('<div invalid-restrict-true>')($rootScope);
+        expect($exceptionHandler.errors.length).toBe(1);
+        expect($exceptionHandler.errors[0]).toMatch(/\$compile.*badrestrict.*'true'/);
+
+        $compile('<div invalid-restrict-bad-string>')($rootScope);
+        $compile('<div invalid-restrict-bad-string>')($rootScope);
+        expect($exceptionHandler.errors.length).toBe(2);
+        expect($exceptionHandler.errors[1]).toMatch(/\$compile.*badrestrict.*'"'/);
+
+        $compile('<div invalid-restrict-bad-string invalid-restrict-object>')($rootScope);
+        expect($exceptionHandler.errors.length).toBe(3);
+        expect($exceptionHandler.errors[2]).toMatch(/\$compile.*badrestrict.*'{}'/);
+
+        $compile('<div invalid-restrict-object invalid-restrict-number>')($rootScope);
+        expect($exceptionHandler.errors.length).toBe(4);
+        expect($exceptionHandler.errors[3]).toMatch(/\$compile.*badrestrict.*'42'/);
+      });
+    });
+
+
     it('should throw noident when missing controllerAs directive property', function() {
       module(function($compileProvider) {
         $compileProvider.directive('noIdent', valueFn({