diff --git a/modules/angular2/src/core/compiler/view_container.js b/modules/angular2/src/core/compiler/view_container.js
index c92fd8f2dc..785f787e1a 100644
--- a/modules/angular2/src/core/compiler/view_container.js
+++ b/modules/angular2/src/core/compiler/view_container.js
@@ -74,8 +74,10 @@ export class ViewContainer {
         'Cannot create views on a dehydrated ViewContainer');
     // TODO(rado): replace with viewFactory.
     var newView = this.defaultProtoView.instantiate(this.hostElementInjector, this._eventManager);
+    // insertion must come before hydration so that element injector trees are attached.
+    this.insert(newView, atIndex);
     newView.hydrate(this.appInjector, this.hostElementInjector, this.parentView.context);
-    return this.insert(newView, atIndex);
+    return newView;
   }
 
   insert(view, atIndex=-1): viewModule.View {
diff --git a/modules/angular2/test/core/compiler/integration_spec.js b/modules/angular2/test/core/compiler/integration_spec.js
index f38ce164af..e18c46326e 100644
--- a/modules/angular2/test/core/compiler/integration_spec.js
+++ b/modules/angular2/test/core/compiler/integration_spec.js
@@ -19,6 +19,8 @@ import {Decorator, Component, Viewport} from 'angular2/src/core/annotations/anno
 import {Template} from 'angular2/src/core/annotations/template';
 import {Parent, Ancestor} from 'angular2/src/core/annotations/visibility';
 
+import {If} from 'angular2/src/directives/if';
+
 import {ViewContainer} from 'angular2/src/core/compiler/view_container';
 
 export function main() {
@@ -365,6 +367,29 @@ export function main() {
           done();
         })
       });
+
+      it('should create a component that injects an @Ancestor through viewport directive', (done) => {
+        tplResolver.setTemplate(MyComp, new Template({
+          inline: `
+            <some-directive>
+              <p *if="true">
+                <cmp-with-ancestor #child></cmp-with-ancestor>
+              </p>
+            </some-directive>`,
+          directives: [SomeDirective, CompWithAncestor, If]
+        }));
+
+        compiler.compile(MyComp).then((pv) => {
+          createView(pv);
+          cd.detectChanges();
+
+          var subview = view.viewContainers[0].get(0);
+          var childComponent = subview.contextWithLocals.get('child');
+          expect(childComponent.myAncestor).toBeAnInstanceOf(SomeDirective);
+
+          done();
+        })
+      });
     });
 
     // TODO support these tests with DART e.g. with Promise.catch (JS) transpiled to Future.catchError (DART)