diff --git a/modules/angular1_router/lib/facades.es5 b/modules/angular1_router/lib/facades.es5
index 2be12cde28..aa2153e313 100644
--- a/modules/angular1_router/lib/facades.es5
+++ b/modules/angular1_router/lib/facades.es5
@@ -316,3 +316,13 @@ Location.prototype.path = function () {
 Location.prototype.go = function (path, query) {
   return $location.url(path + query);
 };
+Location.prototype.prepareExternalUrl = function(url) {
+  if (url.length > 0 && !url.startsWith('/')) {
+    url = '/' + url;
+  }
+  if(!$location.$$html5) {
+    return '#' + url;
+  } else {
+    return '.' + url;
+  }
+};
diff --git a/modules/angular1_router/src/ng_outlet.ts b/modules/angular1_router/src/ng_outlet.ts
index 191bd61d0e..f348020287 100644
--- a/modules/angular1_router/src/ng_outlet.ts
+++ b/modules/angular1_router/src/ng_outlet.ts
@@ -207,13 +207,13 @@ function ngLinkDirective($rootRouter, $parse) {
       return;
     }
 
-    let instruction = null;
+    let navigationInstruction = null;
     let link = attrs.ngLink || '';
 
     function getLink(params) {
-      instruction = router.generate(params);
+      navigationInstruction = router.generate(params);
 
-      scope.$watch(function() { return router.isRouteActive(instruction); },
+      scope.$watch(function() { return router.isRouteActive(navigationInstruction); },
                    function(active) {
                      if (active) {
                        element.addClass('ng-link-active');
@@ -222,7 +222,8 @@ function ngLinkDirective($rootRouter, $parse) {
                      }
                    });
 
-      return './' + angular.stringifyInstruction(instruction);
+      const navigationHref = navigationInstruction.toLinkUrl();
+      return $rootRouter._location.prepareExternalUrl(navigationHref);
     }
 
     let routeParamsGetter = $parse(link);
@@ -236,11 +237,11 @@ function ngLinkDirective($rootRouter, $parse) {
     }
 
     element.on('click', event => {
-      if (event.which !== 1 || !instruction) {
+      if (event.which !== 1 || !navigationInstruction) {
         return;
       }
 
-      $rootRouter.navigateByInstruction(instruction);
+      $rootRouter.navigateByInstruction(navigationInstruction);
       event.preventDefault();
     });
   }
diff --git a/modules/angular1_router/test/ng_link_spec.js b/modules/angular1_router/test/ng_link_spec.js
index 22c59e63ac..4556230c2b 100644
--- a/modules/angular1_router/test/ng_link_spec.js
+++ b/modules/angular1_router/test/ng_link_spec.js
@@ -2,183 +2,173 @@
 
 describe('ngLink', function () {
 
-  var elt,
-    $compile,
-    $rootScope,
-    $rootRouter,
-    $compileProvider;
-
-  beforeEach(function () {
-    module('ng');
-    module('ngComponentRouter');
-    module(function (_$compileProvider_) {
-      $compileProvider = _$compileProvider_;
-    });
-
-    inject(function (_$compile_, _$rootScope_, _$rootRouter_) {
-      $compile = _$compile_;
-      $rootScope = _$rootScope_;
-      $rootRouter = _$rootRouter_;
-    });
-
-    registerComponent('userCmp', '<div>hello {{userCmp.$routeParams.name}}</div>', function () {});
-    registerComponent('oneCmp', '<div>{{oneCmp.number}}</div>', function () {this.number = 'one'});
-    registerComponent('twoCmp', '<div><a ng-link="[\'/Two\']">{{twoCmp.number}}</a></div>', function () {this.number = 'two'});
-  });
-
-
   it('should allow linking from the parent to the child', function () {
-    $rootRouter.config([
+    setup();
+    configureRouter([
       { path: '/a', component: 'oneCmp' },
       { path: '/b', component: 'twoCmp', name: 'Two' }
     ]);
-    compile('<a ng-link="[\'/Two\']">link</a> | outer { <div ng-outlet></div> }');
-
-    $rootRouter.navigateByUrl('/a');
-    $rootScope.$digest();
 
+    var elt = compile('<a ng-link="[\'/Two\']">link</a> | outer { <div ng-outlet></div> }');
+    navigateTo('/a');
     expect(elt.find('a').attr('href')).toBe('./b');
   });
 
   it('should allow linking from the child and the parent', function () {
-    $rootRouter.config([
+    setup();
+    configureRouter([
       { path: '/a', component: 'oneCmp' },
       { path: '/b', component: 'twoCmp', name: 'Two' }
     ]);
-    compile('outer { <div ng-outlet></div> }');
-
-    $rootRouter.navigateByUrl('/b');
-    $rootScope.$digest();
 
+    var elt = compile('outer { <div ng-outlet></div> }');
+    navigateTo('/b');
     expect(elt.find('a').attr('href')).toBe('./b');
   });
 
 
   it('should allow params in routerLink directive', function () {
+    setup();
     registerComponent('twoLinkCmp', '<div><a ng-link="[\'/Two\', {param: \'lol\'}]">{{twoLinkCmp.number}}</a></div>', function () {this.number = 'two'});
-
-    $rootRouter.config([
+    configureRouter([
       { path: '/a', component: 'twoLinkCmp' },
       { path: '/b/:param', component: 'twoCmp', name: 'Two' }
     ]);
-    compile('<div ng-outlet></div>');
-
-    $rootRouter.navigateByUrl('/a');
-    $rootScope.$digest();
 
+    var elt = compile('<div ng-outlet></div>');
+    navigateTo('/a');
     expect(elt.find('a').attr('href')).toBe('./b/lol');
   });
 
 
   it('should update the href of links with bound params', function () {
-    registerComponent('twoLinkCmp', '<div><a ng-link="[\'/Two\', {param: twoLinkCmp.number}]">{{twoLinkCmp.number}}</a></div>', function () {this.number = 'param'});
-    $rootRouter.config([
+    setup();
+    registerComponent('twoLinkCmp', '<div><a ng-link="[\'/Two\', {param: $ctrl.number}]">{{$ctrl.number}}</a></div>', function () {this.number = 43});
+    configureRouter([
       { path: '/a', component: 'twoLinkCmp' },
       { path: '/b/:param', component: 'twoCmp', name: 'Two' }
     ]);
-    compile('<div ng-outlet></div>');
 
-    $rootRouter.navigateByUrl('/a');
-    $rootScope.$digest();
-
-    expect(elt.find('a').attr('href')).toBe('./b/param');
+    var elt = compile('<div ng-outlet></div>');
+    navigateTo('/a');
+    expect(elt.find('a').text()).toBe('43');
+    expect(elt.find('a').attr('href')).toBe('./b/43');
   });
 
 
   it('should navigate on left-mouse click when a link url matches a route', function () {
-    $rootRouter.config([
+    setup();
+    configureRouter([
       { path: '/', component: 'oneCmp' },
       { path: '/two', component: 'twoCmp', name: 'Two'}
     ]);
 
-    compile('<a ng-link="[\'/Two\']">link</a> | <div ng-outlet></div>');
-    $rootScope.$digest();
+    var elt = compile('<a ng-link="[\'/Two\']">link</a> | <div ng-outlet></div>');
     expect(elt.text()).toBe('link | one');
-
     expect(elt.find('a').attr('href')).toBe('./two');
 
     elt.find('a')[0].click();
-
-    $rootScope.$digest();
+    inject(function($rootScope) { $rootScope.$digest(); });
     expect(elt.text()).toBe('link | two');
   });
 
 
-  it('should not navigate on non-left mouse click when a link url matches a route', inject(function ($rootRouter) {
-    $rootRouter.config([
+  it('should not navigate on non-left mouse click when a link url matches a route', function() {
+    setup();
+    configureRouter([
       { path: '/', component: 'oneCmp' },
       { path: '/two', component: 'twoCmp', name: 'Two'}
     ]);
 
-    compile('<a ng-link="[\'/Two\']">link</a> | <div ng-outlet></div>');
-    $rootScope.$digest();
+    var elt = compile('<a ng-link="[\'/Two\']">link</a> | <div ng-outlet></div>');
     expect(elt.text()).toBe('link | one');
     elt.find('a').triggerHandler({ type: 'click', which: 3 });
-
-    $rootScope.$digest();
+    inject(function($rootScope) { $rootScope.$digest(); });
     expect(elt.text()).toBe('link | one');
-  }));
+  });
 
 
   // See https://github.com/angular/router/issues/206
   it('should not navigate a link without an href', function () {
-    $rootRouter.config([
+    setup();
+    configureRouter([
       { path: '/', component: 'oneCmp' },
       { path: '/two', component: 'twoCmp', name: 'Two'}
     ]);
     expect(function () {
-      compile('<a>link</a>');
-      $rootScope.$digest();
+      var elt = compile('<a>link</a>');
       expect(elt.text()).toBe('link');
       elt.find('a')[0].click();
-      $rootScope.$digest();
+      inject(function($rootScope) { $rootScope.$digest(); });
     }).not.toThrow();
   });
 
-  it('should add an ng-link-active class on the current link', inject(function ($rootRouter) {
-    $rootRouter.config([
+  it('should add an ng-link-active class on the current link', function() {
+    setup();
+    configureRouter([
       { path: '/', component: 'oneCmp', name: 'One' }
     ]);
 
-    compile('<a ng-link="[\'/One\']">one</a> | <div ng-outlet></div>');
-    $rootScope.$digest();
-
-    $rootRouter.navigateByUrl('/');
-    $rootScope.$digest();
-
+    var elt = compile('<a ng-link="[\'/One\']">one</a> | <div ng-outlet></div>');
+    navigateTo('/');
     expect(elt.find('a').attr('class')).toBe('ng-link-active');
-  }));
+  });
 
 
-  function registerComponent(name, template, config) {
-    var controller = function () {};
+  describe('html5Mode disabled', function () {
+    it('should prepend href with a hash', function () {
+      setup({ html5Mode: false });
+      module(function($locationProvider) {
+        $locationProvider.html5Mode(false);
+      });
+      configureRouter([
+        { path: '/b', component: 'twoCmp', name: 'Two' }
+      ]);
+      var elt = compile('<a ng-link="[\'/Two\']">link</a>');
+      expect(elt.find('a').attr('href')).toBe('#/b');
+    });
+  });
 
-    function factory() {
-      return {
+
+  function registerComponent(name, template, controller) {
+    module(function($compileProvider) {
+      $compileProvider.component(name, {
         template: template,
-        controllerAs: name,
         controller: controller
-      };
-    }
+      });
+    });
+  }
 
-    if (!template) {
-      template = '';
-    }
-    if (angular.isArray(config)) {
-      factory.annotations = [new angular.annotations.RouteConfig(config)];
-    } else if (typeof config === 'function') {
-      controller = config;
-    } else if (typeof config === 'object') {
-      if (config.canActivate) {
-        controller.$canActivate = config.canActivate;
-      }
-    }
-    $compileProvider.directive(name, factory);
+  function setup(config) {
+    var html5Mode = !(config && config.html5Mode === false);
+    module('ngComponentRouter')
+    module(function($locationProvider) {
+      $locationProvider.html5Mode(html5Mode);
+    });
+    registerComponent('userCmp', '<div>hello {{$ctrl.$routeParams.name}}</div>', function () {});
+    registerComponent('oneCmp', '<div>{{$ctrl.number}}</div>', function () {this.number = 'one'});
+    registerComponent('twoCmp', '<div><a ng-link="[\'/Two\']">{{$ctrl.number}}</a></div>', function () {this.number = 'two'});
+  }
+
+  function configureRouter(routeConfig) {
+    inject(function($rootRouter) {
+      $rootRouter.config(routeConfig);
+    });
   }
 
   function compile(template) {
-    elt = $compile('<div>' + template + '</div>')($rootScope);
-    $rootScope.$digest();
+    var elt;
+    inject(function($compile, $rootScope) {
+      elt = $compile('<div>' + template + '</div>')($rootScope);
+      $rootScope.$digest();
+    });
     return elt;
   }
+
+  function navigateTo(url) {
+    inject(function($rootRouter, $rootScope) {
+      $rootRouter.navigateByUrl(url);
+      $rootScope.$digest();
+    });
+  }
 });