diff --git a/modules/core/src/compiler/element_injector.js b/modules/core/src/compiler/element_injector.js
index dc883c8625..cc990d915f 100644
--- a/modules/core/src/compiler/element_injector.js
+++ b/modules/core/src/compiler/element_injector.js
@@ -165,9 +165,11 @@ export class ProtoElementInjector  {
   parent:ProtoElementInjector;
   index:int;
   view:View;
-  constructor(parent:ProtoElementInjector, index:int, bindings:List, firstBindingIsComponent:boolean = false) {
+  distanceToParent:number;
+  constructor(parent:ProtoElementInjector, index:int, bindings:List, firstBindingIsComponent:boolean = false, distanceToParent:number = 0) {
     this.parent = parent;
     this.index = index;
+    this.distanceToParent = distanceToParent;
 
     this._binding0IsComponent = firstBindingIsComponent;
     this._binding0 = null; this._keyId0 = null;
@@ -331,6 +333,10 @@ export class ElementInjector extends TreeNode {
     }
   }
 
+  directParent(): ElementInjector {
+    return this._proto.distanceToParent < 2 ? this.parent : null;
+  }
+
   _isComponentKey(key:Key) {
     return this._proto._binding0IsComponent && key.id === this._proto._keyId0;
   }
@@ -396,11 +402,11 @@ export class ElementInjector extends TreeNode {
    *
    * Write benchmarks before doing this optimization.
    */
-  _getByKey(key:Key, depth:int, requestor:Key) {
+  _getByKey(key:Key, depth:number, requestor:Key) {
     var ei = this;
 
     if (! this._shouldIncludeSelf(depth)) {
-      depth -= 1;
+      depth -= ei._proto.distanceToParent;
       ei = ei._parent;
     }
 
@@ -411,8 +417,8 @@ export class ElementInjector extends TreeNode {
       var dir = ei._getDirectiveByKeyId(key.id);
       if (dir !== _undefined) return dir;
 
+      depth -= ei._proto.distanceToParent;
       ei = ei._parent;
-      depth -= 1;
     }
 
     if (isPresent(this._host) && this._host._isComponentKey(key)) {
@@ -440,7 +446,7 @@ export class ElementInjector extends TreeNode {
     if (keyId === staticKeys.ngElementId) return this._preBuiltObjects.element;
     if (keyId === staticKeys.viewPortId) return this._preBuiltObjects.viewPort;
     if (keyId === staticKeys.destinationLightDomId) {
-      var p:ElementInjector = this._parent;
+      var p:ElementInjector = this.directParent();
       return isPresent(p) ? p._preBuiltObjects.lightDom : null;
     }
     if (keyId === staticKeys.sourceLightDomId)   {
diff --git a/modules/core/src/compiler/pipeline/compile_element.js b/modules/core/src/compiler/pipeline/compile_element.js
index 46a9c70ca3..32e3319bfe 100644
--- a/modules/core/src/compiler/pipeline/compile_element.js
+++ b/modules/core/src/compiler/pipeline/compile_element.js
@@ -32,6 +32,7 @@ export class CompileElement {
   inheritedProtoView:ProtoView;
   inheritedProtoElementInjector:ProtoElementInjector;
   inheritedElementBinder:ElementBinder;
+  distanceToParentInjector:number;
   compileChildren: boolean;
   constructor(element:Element) {
     this.element = element;
@@ -55,6 +56,7 @@ export class CompileElement {
     // inherited down to children if they don't have
     // an own elementBinder
     this.inheritedElementBinder = null;
+    this.distanceToParentInjector = 0;
     this.compileChildren = true;
   }
 
diff --git a/modules/core/src/compiler/pipeline/proto_element_injector_builder.js b/modules/core/src/compiler/pipeline/proto_element_injector_builder.js
index 27dd7ffd21..aaecf5a9e5 100644
--- a/modules/core/src/compiler/pipeline/proto_element_injector_builder.js
+++ b/modules/core/src/compiler/pipeline/proto_element_injector_builder.js
@@ -24,14 +24,15 @@ import {CompileControl} from './compile_control';
  */
 export class ProtoElementInjectorBuilder extends CompileStep {
   // public so that we can overwrite it in tests
-  internalCreateProtoElementInjector(parent, index, directives, firstBindingIsComponent) {
-    return new ProtoElementInjector(parent, index, directives, firstBindingIsComponent);
+  internalCreateProtoElementInjector(parent, index, directives, firstBindingIsComponent, distance) {
+    return new ProtoElementInjector(parent, index, directives, firstBindingIsComponent, distance);
   }
 
   process(parent:CompileElement, current:CompileElement, control:CompileControl) {
-    var inheritedProtoElementInjector = null;
+    var distanceToParentInjector = this._getDistanceToParentInjector(parent, current);
     var parentProtoElementInjector = this._getParentProtoElementInjector(parent, current);
     var injectorBindings = this._collectDirectiveBindings(current);
+
     // TODO: add lightDomServices as well,
     // but after the directives as we rely on that order
     // in the element_binder_builder.
@@ -39,13 +40,21 @@ export class ProtoElementInjectorBuilder extends CompileStep {
     if (injectorBindings.length > 0) {
       var protoView = current.inheritedProtoView;
       var hasComponent = isPresent(current.componentDirective);
-      inheritedProtoElementInjector = this.internalCreateProtoElementInjector(
-        parentProtoElementInjector, protoView.elementBinders.length, injectorBindings, hasComponent
+
+      current.inheritedProtoElementInjector = this.internalCreateProtoElementInjector(
+        parentProtoElementInjector, protoView.elementBinders.length, injectorBindings,
+        hasComponent, distanceToParentInjector
       );
+      current.distanceToParentInjector = 0;
+
     } else {
-      inheritedProtoElementInjector = parentProtoElementInjector;
+      current.inheritedProtoElementInjector = parentProtoElementInjector;
+      current.distanceToParentInjector = distanceToParentInjector;
     }
-    current.inheritedProtoElementInjector = inheritedProtoElementInjector;
+  }
+
+  _getDistanceToParentInjector(parent, current) {
+    return isPresent(parent) ? parent.distanceToParentInjector + 1 : 0;
   }
 
   _getParentProtoElementInjector(parent, current) {
diff --git a/modules/core/test/compiler/element_injector_spec.js b/modules/core/test/compiler/element_injector_spec.js
index cfa8551482..5df327704a 100644
--- a/modules/core/test/compiler/element_injector_spec.js
+++ b/modules/core/test/compiler/element_injector_spec.js
@@ -103,7 +103,7 @@ export function main() {
 
     parent.instantiateDirectives(inj, null, parentPreBuildObjects);
 
-    var protoChild = new ProtoElementInjector(protoParent, 1, childBindings);
+    var protoChild = new ProtoElementInjector(protoParent, 1, childBindings, false, 1);
     var child = protoChild.instantiate(parent, null);
     child.instantiateDirectives(inj, null, defaultPreBuiltObjects);
 
@@ -120,7 +120,7 @@ export function main() {
     var host = protoParent.instantiate(null, null);
     host.instantiateDirectives(inj, shadowInj, hostPreBuildObjects);
 
-    var protoChild = new ProtoElementInjector(protoParent, 0, shadowBindings, false);
+    var protoChild = new ProtoElementInjector(protoParent, 0, shadowBindings, false, 1);
     var shadow = protoChild.instantiate(null, host);
     shadow.instantiateDirectives(shadowInj, null, null);
 
@@ -144,6 +144,30 @@ export function main() {
           [c2, 'child2']
         ])).toEqual(["parent", ["child1", "child2"]]);
       });
+
+      describe("direct parent", () => {
+        it("should return parent injector when distance is 1", () => {
+          var distance = 1;
+          var protoParent = new ProtoElementInjector(null, 0, []);
+          var protoChild = new ProtoElementInjector(protoParent, 1, [], false, distance);
+
+          var p = protoParent.instantiate(null, null);
+          var c = protoChild.instantiate(p, null);
+
+          expect(c.directParent()).toEqual(p);
+        });
+
+        it("should return null otherwise", () => {
+          var distance = 2;
+          var protoParent = new ProtoElementInjector(null, 0, []);
+          var protoChild = new ProtoElementInjector(protoParent, 1, [], false, distance);
+
+          var p = protoParent.instantiate(null, null);
+          var c = protoChild.instantiate(p, null);
+
+          expect(c.directParent()).toEqual(null);
+        });
+      });
     });
 
     describe("hasBindings", function () {
diff --git a/modules/core/test/compiler/integration_spec.js b/modules/core/test/compiler/integration_spec.js
index 74cbc2b023..032a639690 100644
--- a/modules/core/test/compiler/integration_spec.js
+++ b/modules/core/test/compiler/integration_spec.js
@@ -128,7 +128,6 @@ export function main() {
           expect(DOM.getText(view.nodes[0])).toEqual('Before LightDOM After');
           done();
         });
-
     });
   });
 }
diff --git a/modules/core/test/compiler/pipeline/proto_element_injector_builder_spec.js b/modules/core/test/compiler/pipeline/proto_element_injector_builder_spec.js
index 04cc9727c6..9ae2ef0a11 100644
--- a/modules/core/test/compiler/pipeline/proto_element_injector_builder_spec.js
+++ b/modules/core/test/compiler/pipeline/proto_element_injector_builder_spec.js
@@ -73,32 +73,57 @@ export function main() {
       expect(creationArgs['index']).toBe(protoView.elementBinders.length);
     });
 
-    it('should inherit the ProtoElementInjector down to children without directives', () => {
-      var directives = [SomeDecoratorDirective];
-      var results = createPipeline(directives).process(createElement('<div directives><span></span></div>'));
-      expect(results[1].inheritedProtoElementInjector).toBe(results[0].inheritedProtoElementInjector);
+    describe("inheritedProtoElementInjector", () => {
+      it('should inherit the ProtoElementInjector down to children without directives', () => {
+        var directives = [SomeDecoratorDirective];
+        var results = createPipeline(directives).process(createElement('<div directives><span></span></div>'));
+        expect(results[1].inheritedProtoElementInjector).toBe(results[0].inheritedProtoElementInjector);
+      });
+
+      it('should use the ProtoElementInjector of the parent element as parent', () => {
+        var el = createElement('<div directives><span><a directives></a></span></div>');
+        var directives = [SomeDecoratorDirective];
+        var results = createPipeline(directives).process(el);
+        expect(results[2].inheritedProtoElementInjector.parent).toBe(
+          results[0].inheritedProtoElementInjector);
+      });
+
+      it('should use a null parent for viewRoots', () => {
+        var el = createElement('<div directives><span viewroot directives></span></div>');
+        var directives = [SomeDecoratorDirective];
+        var results = createPipeline(directives).process(el);
+        expect(results[1].inheritedProtoElementInjector.parent).toBe(null);
+      });
+
+      it('should use a null parent if there is an intermediate viewRoot', () => {
+        var el = createElement('<div directives><span viewroot><a directives></a></span></div>');
+        var directives = [SomeDecoratorDirective];
+        var results = createPipeline(directives).process(el);
+        expect(results[2].inheritedProtoElementInjector.parent).toBe(null);
+      });
     });
 
-    it('should use the ProtoElementInjector of the parent element as parent', () => {
-      var el = createElement('<div directives><span><a directives></a></span></div>');
-      var directives = [SomeDecoratorDirective];
-      var results = createPipeline(directives).process(el);
-      expect(results[2].inheritedProtoElementInjector.parent).toBe(
-        results[0].inheritedProtoElementInjector);
-    });
+    describe("distanceToParentInjector", () => {
+      it("should be 0 for root elements", () => {
+        var el = createElement('<div directives></div>');
+        var directives = [SomeDecoratorDirective];
+        var results = createPipeline(directives).process(el);
+        expect(results[0].inheritedProtoElementInjector.distanceToParent).toBe(0);
+      });
 
-    it('should use a null parent for viewRoots', () => {
-      var el = createElement('<div directives><span viewroot directives></span></div>');
-      var directives = [SomeDecoratorDirective];
-      var results = createPipeline(directives).process(el);
-      expect(results[1].inheritedProtoElementInjector.parent).toBe(null);
-    });
+      it("should be 1 when a parent element has an injector", () => {
+        var el = createElement('<div directives><span directives></span></div>');
+        var directives = [SomeDecoratorDirective];
+        var results = createPipeline(directives).process(el);
+        expect(results[1].inheritedProtoElementInjector.distanceToParent).toBe(1);
+      });
 
-    it('should use a null parent if there is an intermediate viewRoot', () => {
-      var el = createElement('<div directives><span viewroot><a directives></a></span></div>');
-      var directives = [SomeDecoratorDirective];
-      var results = createPipeline(directives).process(el);
-      expect(results[2].inheritedProtoElementInjector.parent).toBe(null);
+      it("should add 1 for every element that does not have an injector", () => {
+        var el = createElement('<div directives><a><b><span directives></span></b></a></div>');
+        var directives = [SomeDecoratorDirective];
+        var results = createPipeline(directives).process(el);
+        expect(results[3].inheritedProtoElementInjector.distanceToParent).toBe(3);
+      });
     });
   });
 }
@@ -117,8 +142,8 @@ class TestableProtoElementInjectorBuilder extends ProtoElementInjectorBuilder {
     }
     return null;
   }
-  internalCreateProtoElementInjector(parent, index, bindings, firstBindingIsComponent) {
-    var result = new ProtoElementInjector(parent, index, bindings, firstBindingIsComponent);
+  internalCreateProtoElementInjector(parent, index, bindings, firstBindingIsComponent, distance) {
+    var result = new ProtoElementInjector(parent, index, bindings, firstBindingIsComponent, distance);
     ListWrapper.push(this.debugObjects, result);
     ListWrapper.push(this.debugObjects, {'parent': parent, 'index': index, 'bindings': bindings, 'firstBindingIsComponent': firstBindingIsComponent});
     return result;