diff --git a/src/ng/compile.js b/src/ng/compile.js
index e8bd8ca01668..a257c0b5f096 100644
--- a/src/ng/compile.js
+++ b/src/ng/compile.js
@@ -2575,7 +2575,7 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
 
               // We have transclusion slots,
               // collect them up, compile them and store their transclusion functions
-              $template = [];
+              $template = window.document.createDocumentFragment();
 
               var slotMap = createMap();
               var filledSlots = createMap();
@@ -2603,10 +2603,10 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
                 var slotName = slotMap[directiveNormalize(nodeName_(node))];
                 if (slotName) {
                   filledSlots[slotName] = true;
-                  slots[slotName] = slots[slotName] || [];
-                  slots[slotName].push(node);
+                  slots[slotName] = slots[slotName] || window.document.createDocumentFragment();
+                  slots[slotName].appendChild(node);
                 } else {
-                  $template.push(node);
+                  $template.appendChild(node);
                 }
               });
 
@@ -2620,9 +2620,11 @@ function $CompileProvider($provide, $$sanitizeUriProvider) {
               for (var slotName in slots) {
                 if (slots[slotName]) {
                   // Only define a transclusion function if the slot was filled
-                  slots[slotName] = compilationGenerator(mightHaveMultipleTransclusionError, slots[slotName], transcludeFn);
+                  slots[slotName] = compilationGenerator(mightHaveMultipleTransclusionError, slots[slotName].childNodes, transcludeFn);
                 }
               }
+
+              $template = $template.childNodes;
             }
 
             $compileNode.empty(); // clear contents
diff --git a/test/ng/compileSpec.js b/test/ng/compileSpec.js
index d24a90f9744c..a0b8b7204439 100644
--- a/test/ng/compileSpec.js
+++ b/test/ng/compileSpec.js
@@ -8843,6 +8843,50 @@ describe('$compile', function() {
         });
       });
 
+
+      it('should correctly handle multi-element directives', function() {
+        module(function() {
+          directive('foo', valueFn({
+            template: '[<div ng-transclude></div>]',
+            transclude: true
+          }));
+          directive('bar', valueFn({
+            template: '[<div ng-transclude="header"></div>|<div ng-transclude="footer"></div>]',
+            transclude: {
+              header: 'header',
+              footer: 'footer'
+            }
+          }));
+        });
+
+        inject(function($compile, $rootScope) {
+          var tmplWithFoo =
+              '<foo>' +
+                '<div ng-if-start="true">Hello, </div>' +
+                '<div ng-if-end>world!</div>' +
+              '</foo>';
+          var tmplWithBar =
+              '<bar>' +
+                '<header ng-if-start="true">This is a </header>' +
+                '<header ng-if-end>header!</header>' +
+                '<footer ng-if-start="true">This is a </footer>' +
+                '<footer ng-if-end>footer!</footer>' +
+              '</bar>';
+
+          var elem1 = $compile(tmplWithFoo)($rootScope);
+          var elem2 = $compile(tmplWithBar)($rootScope);
+
+          $rootScope.$digest();
+
+          expect(elem1.text()).toBe('[Hello, world!]');
+          expect(elem2.text()).toBe('[This is a header!|This is a footer!]');
+
+          dealoc(elem1);
+          dealoc(elem2);
+        });
+      });
+
+
       //see issue https://github.com/angular/angular.js/issues/12936
       it('should use the proper scope when it is on the root element of a replaced directive template', function() {
         module(function() {