diff --git a/modules/angular2/src/core/compiler/dynamic_component_loader.ts b/modules/angular2/src/core/compiler/dynamic_component_loader.ts
index 25c798059f..e71119a064 100644
--- a/modules/angular2/src/core/compiler/dynamic_component_loader.ts
+++ b/modules/angular2/src/core/compiler/dynamic_component_loader.ts
@@ -43,7 +43,7 @@ export class DynamicComponentLoader {
           this._viewManager.createDynamicComponentView(location, componentProtoViewRef, binding,
                                                        injector);
           var component = this._viewManager.getComponent(location);
-          var dispose = () => { throw new BaseException("Not implemented"); };
+          var dispose = () => { this._viewManager.destroyDynamicComponent(location); };
           return new ComponentRef(location, component, dispose);
         });
   }
diff --git a/modules/angular2/src/core/compiler/element_injector.ts b/modules/angular2/src/core/compiler/element_injector.ts
index bc735e9656..1d9169c816 100644
--- a/modules/angular2/src/core/compiler/element_injector.ts
+++ b/modules/angular2/src/core/compiler/element_injector.ts
@@ -688,22 +688,20 @@ export class ElementInjector extends TreeNode<ElementInjector> {
     this._preBuiltObjects = null;
     this._lightDomAppInjector = null;
     this._shadowDomAppInjector = null;
-
     this._strategy.callOnDestroy();
-
-    if (isPresent(this._dynamicallyCreatedComponentBinding) &&
-        this._dynamicallyCreatedComponentBinding.callOnDestroy) {
-      this._dynamicallyCreatedComponent.onDestroy();
-    }
-
+    this.destroyDynamicComponent();
     this._strategy.clearInstances();
-
-    this._dynamicallyCreatedComponent = null;
-    this._dynamicallyCreatedComponentBinding = null;
-
     this._constructionCounter = 0;
   }
 
+  destroyDynamicComponent(): void {
+    if (isPresent(this._dynamicallyCreatedComponentBinding) &&
+        this._dynamicallyCreatedComponentBinding.callOnDestroy) {
+      this._dynamicallyCreatedComponent.onDestroy();
+      this._dynamicallyCreatedComponentBinding = null;
+      this._dynamicallyCreatedComponent = null;
+    }
+  }
 
   hydrate(injector: Injector, host: ElementInjector, preBuiltObjects: PreBuiltObjects): void {
     var p = this._proto;
diff --git a/modules/angular2/src/core/compiler/view_manager.ts b/modules/angular2/src/core/compiler/view_manager.ts
index a1e73d0d18..d4c28894fc 100644
--- a/modules/angular2/src/core/compiler/view_manager.ts
+++ b/modules/angular2/src/core/compiler/view_manager.ts
@@ -133,6 +133,14 @@ export class AppViewManager {
     this._destroyFreeEmbeddedView(parentView, boundElementIndex, internalView(viewRef));
   }
 
+  destroyDynamicComponent(location: ElementRef) {
+    var hostView = internalView(location.parentView);
+    var ei = hostView.elementInjectors[location.boundElementIndex];
+    var componentView = hostView.componentChildViews[location.boundElementIndex];
+    ei.destroyDynamicComponent();
+    this._destroyComponentView(hostView, location.boundElementIndex, componentView);
+  }
+
   createViewInContainer(viewContainerLocation: ElementRef, atIndex: number,
                         protoViewRef: ProtoViewRef, context: ElementRef = null,
                         injector: Injector = null): ViewRef {
diff --git a/modules/angular2/test/core/compiler/dynamic_component_loader_spec.ts b/modules/angular2/test/core/compiler/dynamic_component_loader_spec.ts
index 9c9305d81c..009ae3f944 100644
--- a/modules/angular2/test/core/compiler/dynamic_component_loader_spec.ts
+++ b/modules/angular2/test/core/compiler/dynamic_component_loader_spec.ts
@@ -17,7 +17,7 @@ import {
 
 import {TestBed, ViewProxy} from 'angular2/src/test_lib/test_bed';
 import {Injector} from 'angular2/di';
-import {Component, View} from 'angular2/annotations';
+import {Component, View, onDestroy} from 'angular2/annotations';
 import * as viewAnn from 'angular2/src/core/annotations_impl/view';
 import {DynamicComponentLoader} from 'angular2/src/core/compiler/dynamic_component_loader';
 import {ElementRef} from 'angular2/src/core/compiler/element_ref';
@@ -68,6 +68,28 @@ export function main() {
            });
          }));
 
+      it('should allow destroying dynamically-loaded components',
+         inject([TestBed, AsyncTestCompleter], (tb, async) => {
+           tb.overrideView(MyComp, new viewAnn.View({
+             template: '<dynamic-comp #dynamic></dynamic-comp>',
+             directives: [DynamicComp]
+           }));
+
+           tb.createView(MyComp).then((view) => {
+             var dynamicComponent = view.rawView.locals.get("dynamic");
+             dynamicComponent.done.then((ref) => {
+               view.detectChanges();
+               expect(view.rootNodes).toHaveText("hello");
+
+               ref.dispose();
+
+               expect(ref.instance.destroyed).toBe(true);
+               expect(view.rootNodes).toHaveText("");
+               async.done();
+             });
+           });
+         }));
+
       it('should allow to destroy and create them via viewcontainer directives',
          ijTestBed((tb: TestBed, async) => {
            tb.overrideView(MyComp, new viewAnn.View({
@@ -287,16 +309,23 @@ class DynamicComp {
   }
 }
 
-@Component({selector: 'hello-cmp', appInjector: [DynamicallyCreatedComponentService]})
+@Component({
+  selector: 'hello-cmp',
+  appInjector: [DynamicallyCreatedComponentService],
+  lifecycle: [onDestroy]
+})
 @View({template: "{{greeting}}"})
 class DynamicallyCreatedCmp {
   greeting: string;
   dynamicallyCreatedComponentService: DynamicallyCreatedComponentService;
+  destroyed: boolean = false;
 
   constructor(a: DynamicallyCreatedComponentService) {
     this.greeting = "hello";
     this.dynamicallyCreatedComponentService = a;
   }
+
+  onDestroy() { this.destroyed = true; }
 }
 
 @Component({selector: 'dummy'})