diff --git a/packages/shared/compile-template.js b/packages/shared/compile-template.js
index b449bffbc..530a24dde 100644
--- a/packages/shared/compile-template.js
+++ b/packages/shared/compile-template.js
@@ -3,14 +3,13 @@
 import { compileToFunctions } from 'vue-template-compiler'
 
 export function compileTemplate (component: Component) {
-  if (component.components) {
-    Object.keys(component.components).forEach((c) => {
-      const cmp = component.components[c]
-      if (!cmp.render) {
-        compileTemplate(cmp)
-      }
-    })
-  }
+  Object.keys(component.components || {}).forEach((c) => {
+    const cmp = component.components[c]
+    if (!cmp.render) {
+      compileTemplate(cmp)
+    }
+  })
+
   if (component.extends) {
     compileTemplate(component.extends)
   }
diff --git a/packages/shared/stub-components-validate.js b/packages/shared/stub-components-validate.js
new file mode 100644
index 000000000..81d49b6de
--- /dev/null
+++ b/packages/shared/stub-components-validate.js
@@ -0,0 +1,44 @@
+// @flow
+
+import { throwError } from './util'
+import { compileToFunctions } from 'vue-template-compiler'
+
+export function validateStubOptions (stubOptions: Array<string> | Object) {
+  if (Array.isArray(stubOptions)) {
+    if (containsNonStringItem(stubOptions)) {
+      throwError('each item in an options.stubs array must be a string')
+    }
+  } else {
+    if (containsInvalidOptions(stubOptions)) {
+      throwError('options.stub values must be passed a string or component')
+    }
+
+    if (necessaryCompileToFunctionsMissed(stubOptions)) {
+      throwError('vueTemplateCompiler is undefined, you must pass components explicitly if vue-template-compiler is undefined')
+    }
+  }
+}
+
+function containsNonStringItem (array: Array<string>): boolean {
+  return array.some(name => typeof name !== 'string')
+}
+
+function necessaryCompileToFunctionsMissed (stubOptions: Object): boolean {
+  return Object.keys(stubOptions)
+    .map(key => stubOptions[key])
+    .some(stub => typeof stub === 'string') && !compileToFunctions
+}
+
+function containsInvalidOptions (stubOptions: Object): boolean {
+  return Object.keys(stubOptions)
+    .map(key => stubOptions[key])
+    .some(isInvalidStubOption)
+}
+
+function isInvalidStubOption (stub): boolean {
+  return !['string', 'boolean'].includes(typeof stub) && !isVueComponent(stub)
+}
+
+function isVueComponent (cmp) {
+  return cmp && (cmp.render || cmp.template || cmp.options)
+}
diff --git a/packages/shared/stub-components.js b/packages/shared/stub-components.js
index fda90dc37..ebf305f14 100644
--- a/packages/shared/stub-components.js
+++ b/packages/shared/stub-components.js
@@ -1,28 +1,12 @@
 // @flow
 
-import Vue from 'vue'
 import { compileToFunctions } from 'vue-template-compiler'
-import { throwError } from './util'
-import { componentNeedsCompiling } from './validators'
-import { compileTemplate } from './compile-template'
-import { capitalize, camelize, hyphenate } from './util'
-
-function isVueComponent (comp) {
-  return comp && (comp.render || comp.template || comp.options)
-}
-
-function isValidStub (stub: any) {
-  return !!stub &&
-      typeof stub === 'string' ||
-      (stub === true) ||
-      (isVueComponent(stub))
-}
-
-function isRequiredComponent (name) {
-  return name === 'KeepAlive' || name === 'Transition' || name === 'TransitionGroup'
-}
+import { validateStubOptions } from 'shared/stub-components-validate'
+import { componentNeedsCompiling } from 'shared/validators'
+import { compileTemplate } from 'shared/compile-template'
 
 function getCoreProperties (component: Component): Object {
+  if (!component) return {}
   return {
     attrs: component.attrs,
     name: component.name,
@@ -40,147 +24,68 @@ function getCoreProperties (component: Component): Object {
     functional: component.functional
   }
 }
-function createStubFromString (templateString: string, originalComponent: Component): Object {
-  if (!compileToFunctions) {
-    throwError('vueTemplateCompiler is undefined, you must pass components explicitly if vue-template-compiler is undefined')
-  }
-
-  if (templateString.indexOf(hyphenate(originalComponent.name)) !== -1 ||
-  templateString.indexOf(capitalize(originalComponent.name)) !== -1 ||
-  templateString.indexOf(camelize(originalComponent.name)) !== -1) {
-    throwError('options.stub cannot contain a circular reference')
-  }
 
+function createStubFromString (originalComponent: Component, template: string): Object {
   return {
     ...getCoreProperties(originalComponent),
-    ...compileToFunctions(templateString)
+    ...compileToFunctions(template)
   }
 }
 
-function createBlankStub (originalComponent: Component) {
+function createBlankStub (originalComponent: Component): Object {
   return {
     ...getCoreProperties(originalComponent),
     render: h => h('')
   }
 }
 
-export function createComponentStubs (originalComponents: Object = {}, stubs: Object): Object {
-  const components = {}
-  if (!stubs) {
-    return components
-  }
-  if (Array.isArray(stubs)) {
-    stubs.forEach(stub => {
-      if (stub === false) {
-        return
-      }
+function createStubFromComponent (component: Component, name: string): Object {
+  if (componentNeedsCompiling(component)) compileTemplate(component)
+  return name ? { ...component, name } : component
+}
 
-      if (typeof stub !== 'string') {
-        throwError('each item in an options.stubs array must be a string')
-      }
-      components[stub] = createBlankStub({})
-    })
+function createStub (originalComponent: Component, stubValue): Object {
+  if (stubValue === true) {
+    return createBlankStub(originalComponent)
+  } else if (typeof stubValue === 'string') {
+    return createStubFromString(originalComponent, stubValue)
   } else {
-    Object.keys(stubs).forEach(stub => {
-      if (stubs[stub] === false) {
-        return
-      }
-      if (!isValidStub(stubs[stub])) {
-        throwError('options.stub values must be passed a string or component')
-      }
-      if (stubs[stub] === true) {
-        components[stub] = createBlankStub({})
-        return
-      }
-
-      if (componentNeedsCompiling(stubs[stub])) {
-        compileTemplate(stubs[stub])
-      }
-
-      if (originalComponents[stub]) {
-        // Remove cached constructor
-        delete originalComponents[stub]._Ctor
-        if (typeof stubs[stub] === 'string') {
-          components[stub] = createStubFromString(stubs[stub], originalComponents[stub])
-        } else {
-          components[stub] = {
-            ...stubs[stub],
-            name: originalComponents[stub].name
-          }
-        }
-      } else {
-        if (typeof stubs[stub] === 'string') {
-          if (!compileToFunctions) {
-            throwError('vueTemplateCompiler is undefined, you must pass components explicitly if vue-template-compiler is undefined')
-          }
-          components[stub] = {
-            ...compileToFunctions(stubs[stub])
-          }
-        } else {
-          components[stub] = {
-            ...stubs[stub]
-          }
-        }
-      }
-      // ignoreElements does not exist in Vue 2.0.x
-      if (Vue.config.ignoredElements) {
-        Vue.config.ignoredElements.push(stub)
-      }
-    })
+    return createStubFromComponent(stubValue, originalComponent && originalComponent.name)
   }
-  return components
-}
-
-function stubComponents (components: Object, stubbedComponents: Object) {
-  Object.keys(components).forEach(component => {
-    // Remove cached constructor
-    delete components[component]._Ctor
-    if (!components[component].name) {
-      components[component].name = component
-    }
-    stubbedComponents[component] = createBlankStub(components[component])
-
-    // ignoreElements does not exist in Vue 2.0.x
-    if (Vue.config.ignoredElements) {
-      Vue.config.ignoredElements.push(component)
-    }
-  })
 }
 
-export function createComponentStubsForAll (component: Component): Object {
-  const stubbedComponents = {}
-
-  if (component.components) {
-    stubComponents(component.components, stubbedComponents)
+function normalizeStubOptions (components: ?Object, stubOptions: ?Object | Array<string>): Object {
+  if (!stubOptions) {
+    stubOptions = Object.keys(components || {})
   }
-
-  let extended = component.extends
-
-  // Loop through extended component chains to stub all child components
-  while (extended) {
-    if (extended.components) {
-      stubComponents(extended.components, stubbedComponents)
-    }
-    extended = extended.extends
+  if (Array.isArray(stubOptions)) {
+    stubOptions = stubOptions.reduce((object, name) => {
+      object[name] = true
+      return object
+    }, {})
   }
+  return stubOptions
+}
 
-  if (component.extendOptions && component.extendOptions.components) {
-    stubComponents(component.extendOptions.components, stubbedComponents)
-  }
+export function createComponentStubs (components: Object = {}, stubOptions: Object): Object {
+  validateStubOptions(stubOptions)
+  return createStubs(components, stubOptions)
+}
 
-  return stubbedComponents
+export function createComponentStubsForAll (component: Component, stubs: Object = {}): Object {
+  if (!component) return stubs
+  Object.assign(stubs, createStubs(component.components))
+  return createComponentStubsForAll(component.extends || component.extendOptions, stubs)
 }
 
-export function createComponentStubsForGlobals (instance: Component): Object {
-  const components = {}
-  Object.keys(instance.options.components).forEach((c) => {
-    if (isRequiredComponent(c)) {
-      return
-    }
+export function createStubs (components: Object, stubOptions: ?Object | Array<string>): Object {
+  const options: Object = normalizeStubOptions(components, stubOptions)
 
-    components[c] = createBlankStub(instance.options.components[c])
-    delete instance.options.components[c]._Ctor // eslint-disable-line no-param-reassign
-    delete components[c]._Ctor // eslint-disable-line no-param-reassign
-  })
-  return components
+  return Object.keys(options)
+    .filter(name => !['KeepAlive', 'Transition', 'TransitionGroup'].includes(name))
+    .filter(name => options[name] !== false)
+    .reduce((stubs, name) => {
+      stubs[name] = createStub(components[name], options[name])
+      return stubs
+    }, {})
 }
diff --git a/packages/test-utils/src/shallow.js b/packages/test-utils/src/shallow.js
index dbbd6cb95..706782d72 100644
--- a/packages/test-utils/src/shallow.js
+++ b/packages/test-utils/src/shallow.js
@@ -6,7 +6,7 @@ import mount from './mount'
 import type VueWrapper from './vue-wrapper'
 import {
   createComponentStubsForAll,
-  createComponentStubsForGlobals
+  createStubs
 } from 'shared/stub-components'
 import { camelize,
   capitalize,
@@ -26,15 +26,11 @@ export default function shallow (
     delete component.components[hyphenate(component.name)]
   }
 
-  const stubbedComponents = createComponentStubsForAll(component)
-  const stubbedGlobalComponents = createComponentStubsForGlobals(vue)
-
   return mount(component, {
     ...options,
     components: {
-      // stubbed components are used instead of original components components
-      ...stubbedGlobalComponents,
-      ...stubbedComponents
+      ...createStubs(vue.options.components),
+      ...createComponentStubsForAll(component)
     }
   })
 }