diff --git a/src/ng/compile.js b/src/ng/compile.js
index bc1cae5bfca6..0887a7086b10 100644
--- a/src/ng/compile.js
+++ b/src/ng/compile.js
@@ -3522,7 +3522,7 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
               }
               recordChanges(scopeName, newValue, oldValue);
               destination[scopeName] = newValue;
-            }, deepWatch);
+            });
 
             removeWatchCollection.push(removeWatch);
             break;
diff --git a/src/ng/parse.js b/src/ng/parse.js
index 3e2661e16f6d..fc62eea2839a 100644
--- a/src/ng/parse.js
+++ b/src/ng/parse.js
@@ -1826,7 +1826,7 @@ function $ParseProvider() {
             oldInputValueOf = newInputValue && getValueOf(newInputValue);
           }
           return lastResult;
-        }, listener, objectEquality, prettyPrintExpression);
+        }, listener, objectEquality || parsedExpression.literal, prettyPrintExpression);
       }
 
       var oldInputValueOfValues = [];
@@ -1852,7 +1852,7 @@ function $ParseProvider() {
         }
 
         return lastResult;
-      }, listener, objectEquality, prettyPrintExpression);
+      }, listener, objectEquality || parsedExpression.literal, prettyPrintExpression);
     }
 
     function oneTimeWatchDelegate(scope, listener, objectEquality, parsedExpression, prettyPrintExpression) {
diff --git a/test/ng/parseSpec.js b/test/ng/parseSpec.js
index 6af4671b264f..58a3b7a56526 100644
--- a/test/ng/parseSpec.js
+++ b/test/ng/parseSpec.js
@@ -3117,6 +3117,29 @@ describe('parser', function() {
           scope.$digest();
           expect(objB.value).toBe(scope.input);
         }));
+
+        it('should support watching literals', inject(function($parse) {
+          var lastVal = NaN;
+          var callCount = 0;
+          var listener = function(val) { callCount++; lastVal = val; };
+
+          scope.$watch('{val: val}', listener);
+
+          scope.$apply('val = 1');
+          expect(callCount).toBe(1);
+          expect(lastVal).toEqual({val: 1});
+
+          scope.$apply('val = []');
+          expect(callCount).toBe(2);
+          expect(lastVal).toEqual({val: []});
+
+          scope.$apply('val = []');
+          expect(callCount).toBe(2);
+
+          scope.$apply('val.push(1)');
+          expect(callCount).toBe(3);
+          expect(lastVal).toEqual({val: [1]});
+        }));
       });
 
       describe('locals', function() {