diff --git a/packages/core/src/render3/i18n.ts b/packages/core/src/render3/i18n.ts
index a679190614..205433cf13 100644
--- a/packages/core/src/render3/i18n.ts
+++ b/packages/core/src/render3/i18n.ts
@@ -390,11 +390,19 @@ function i18nStartFirstPass(
   parentIndexStack[parentIndexPointer] = parentIndex;
   const createOpCodes: I18nMutateOpCodes = [];
   // If the previous node wasn't the direct parent then we have a translation without top level
-  // element and we need to keep a reference of the previous element if there is one
+  // element and we need to keep a reference of the previous element if there is one. We should also
+  // keep track whether an element was a parent node or not, so that the logic that consumes
+  // the generated `I18nMutateOpCode`s can leverage this information to properly set TNode state
+  // (whether it's a parent or sibling).
   if (index > 0 && previousOrParentTNode !== parentTNode) {
+    let previousTNodeIndex = previousOrParentTNode.index - HEADER_OFFSET;
+    // If current TNode is a sibling node, encode it using a negative index. This information is
+    // required when the `Select` action is processed (see the `readCreateOpCodes` function).
+    if (!getIsParent()) {
+      previousTNodeIndex = ~previousTNodeIndex;
+    }
     // Create an OpCode to select the previous TNode
-    createOpCodes.push(
-        previousOrParentTNode.index << I18nMutateOpCode.SHIFT_REF | I18nMutateOpCode.Select);
+    createOpCodes.push(previousTNodeIndex << I18nMutateOpCode.SHIFT_REF | I18nMutateOpCode.Select);
   }
   const updateOpCodes: I18nUpdateOpCodes = [];
   const icuExpressions: TIcu[] = [];
@@ -414,12 +422,16 @@ function i18nStartFirstPass(
         }
       } else {
         const phIndex = parseInt(value.substr(1), 10);
-        // The value represents a placeholder that we move to the designated index
+        const isElement = value.charAt(0) === TagType.ELEMENT;
+        // The value represents a placeholder that we move to the designated index.
+        // Note: positive indicies indicate that a TNode with a given index should also be marked as
+        // parent while executing `Select` instruction.
         createOpCodes.push(
-            phIndex << I18nMutateOpCode.SHIFT_REF | I18nMutateOpCode.Select,
+            (isElement ? phIndex : ~phIndex) << I18nMutateOpCode.SHIFT_REF |
+                I18nMutateOpCode.Select,
             parentIndex << I18nMutateOpCode.SHIFT_PARENT | I18nMutateOpCode.AppendChild);
 
-        if (value.charAt(0) === TagType.ELEMENT) {
+        if (isElement) {
           parentIndexStack[++parentIndexPointer] = parentIndex = phIndex;
         }
       }
@@ -757,12 +769,15 @@ function readCreateOpCodes(
               appendI18nNode(tView, currentTNode !, destinationTNode, previousTNode, lView);
           break;
         case I18nMutateOpCode.Select:
-          const nodeIndex = opCode >>> I18nMutateOpCode.SHIFT_REF;
+          // Negative indicies indicate that a given TNode is a sibling node, not a parent node
+          // (see `i18nStartFirstPass` for additional information).
+          const isParent = opCode >= 0;
+          const nodeIndex = (isParent ? opCode : ~opCode) >>> I18nMutateOpCode.SHIFT_REF;
           visitedNodes.push(nodeIndex);
           previousTNode = currentTNode;
           currentTNode = getTNode(tView, nodeIndex);
           if (currentTNode) {
-            setPreviousOrParentTNode(currentTNode, currentTNode.type === TNodeType.Element);
+            setPreviousOrParentTNode(currentTNode, isParent);
           }
           break;
         case I18nMutateOpCode.ElementEnd:
diff --git a/packages/core/src/render3/state.ts b/packages/core/src/render3/state.ts
index 8c1bfa479d..432f355173 100644
--- a/packages/core/src/render3/state.ts
+++ b/packages/core/src/render3/state.ts
@@ -270,9 +270,9 @@ export function getPreviousOrParentTNode(): TNode {
   return instructionState.lFrame.previousOrParentTNode;
 }
 
-export function setPreviousOrParentTNode(tNode: TNode, _isParent: boolean) {
+export function setPreviousOrParentTNode(tNode: TNode, isParent: boolean) {
   instructionState.lFrame.previousOrParentTNode = tNode;
-  instructionState.lFrame.isParent = _isParent;
+  instructionState.lFrame.isParent = isParent;
 }
 
 export function getIsParent(): boolean {
diff --git a/packages/core/test/acceptance/i18n_spec.ts b/packages/core/test/acceptance/i18n_spec.ts
index 8b5c83e323..7e52d460be 100644
--- a/packages/core/test/acceptance/i18n_spec.ts
+++ b/packages/core/test/acceptance/i18n_spec.ts
@@ -530,6 +530,36 @@ onlyInIvy('Ivy i18n logic').describe('runtime i18n', () => {
       expect(element).toHaveText('autre');
     });
 
+    it('with no root node and text surrounding ICU', () => {
+      loadTranslations({
+        [computeMsgId('{VAR_SELECT, select, 10 {Ten} 20 {Twenty} other {Other}}')]:
+            '{VAR_SELECT, select, 10 {Dix} 20 {Vingt} other {Autre}}'
+      });
+      const fixture = initWithTemplate(AppComp, `
+        ICU start -->
+        {count, select, 10 {Ten} 20 {Twenty} other {Other}}
+        <-- ICU end
+      `);
+
+      const element = fixture.nativeElement;
+      expect(element.textContent).toContain('ICU start --> Autre <-- ICU end');
+    });
+
+    it('with no root node and text and DOM nodes surrounding ICU', () => {
+      loadTranslations({
+        [computeMsgId('{VAR_SELECT, select, 10 {Ten} 20 {Twenty} other {Other}}')]:
+            '{VAR_SELECT, select, 10 {Dix} 20 {Vingt} other {Autre}}'
+      });
+      const fixture = initWithTemplate(AppComp, `
+        <span>ICU start --> </span>
+        {count, select, 10 {Ten} 20 {Twenty} other {Other}}
+        <-- ICU end
+      `);
+
+      const element = fixture.nativeElement;
+      expect(element.textContent).toContain('ICU start --> Autre <-- ICU end');
+    });
+
     it('with no i18n tag', () => {
       loadTranslations({
         [computeMsgId('{VAR_SELECT, select, 10 {ten} 20 {twenty} other {other}}')]:
@@ -2100,6 +2130,73 @@ onlyInIvy('Ivy i18n logic').describe('runtime i18n', () => {
   "ng-reflect-ng-if": "false"
 }--></div><button title="Close dialog">Button label</button>`);
   });
+
+  describe('ngTemplateOutlet', () => {
+    it('should work with i18n content that includes elements', () => {
+      loadTranslations({
+        [computeMsgId('{$START_TAG_SPAN}A{$CLOSE_TAG_SPAN} B ')]:
+            '{$START_TAG_SPAN}a{$CLOSE_TAG_SPAN} b',
+      });
+
+      const fixture = initWithTemplate(AppComp, `
+        <ng-container *ngTemplateOutlet="tmpl"></ng-container>
+        <ng-template #tmpl i18n>
+          <span>A</span> B
+        </ng-template>
+      `);
+      expect(fixture.nativeElement.textContent).toContain('a b');
+    });
+
+    it('should work with i18n content that includes other templates (*ngIf)', () => {
+      loadTranslations({
+        [computeMsgId('{$START_TAG_SPAN}A{$CLOSE_TAG_SPAN} B ')]:
+            '{$START_TAG_SPAN}a{$CLOSE_TAG_SPAN} b',
+      });
+
+      const fixture = initWithTemplate(AppComp, `
+        <ng-container *ngTemplateOutlet="tmpl"></ng-container>
+        <ng-template #tmpl i18n>
+          <span *ngIf="visible">A</span> B
+        </ng-template>
+      `);
+      expect(fixture.nativeElement.textContent).toContain('a b');
+    });
+
+    it('should work with i18n content that includes projection', () => {
+      loadTranslations({
+        [computeMsgId('{$START_TAG_NG_CONTENT}{$CLOSE_TAG_NG_CONTENT} B ')]:
+            '{$START_TAG_NG_CONTENT}{$CLOSE_TAG_NG_CONTENT} b',
+      });
+
+      @Component({
+        selector: 'projector',
+        template: `
+          <ng-container *ngTemplateOutlet="tmpl"></ng-container>
+          <ng-template #tmpl i18n>
+            <ng-content></ng-content> B
+          </ng-template>
+        `
+      })
+      class Projector {
+      }
+
+      @Component({
+        selector: 'app',
+        template: `
+          <projector>a</projector>
+        `
+      })
+      class AppComponent {
+      }
+
+      TestBed.configureTestingModule({declarations: [AppComponent, Projector]});
+
+      const fixture = TestBed.createComponent(AppComponent);
+      fixture.detectChanges();
+
+      expect(fixture.nativeElement.textContent).toContain('a b');
+    });
+  });
 });
 
 function initWithTemplate(compType: Type<any>, template: string) {
diff --git a/packages/core/test/render3/i18n_spec.ts b/packages/core/test/render3/i18n_spec.ts
index 0da67146a4..0535ce454b 100644
--- a/packages/core/test/render3/i18n_spec.ts
+++ b/packages/core/test/render3/i18n_spec.ts
@@ -194,6 +194,7 @@ describe('Runtime i18n', () => {
       let nbConsts = 3;
       let index = 1;
       const firstTextNode = 3;
+      const rootTemplate = 2;
       let opCodes = getOpCodes(() => { ɵɵi18nStart(index, MSG_DIV); }, null, nbConsts, index);
 
       expect(opCodes).toEqual({
@@ -202,7 +203,7 @@ describe('Runtime i18n', () => {
           '',
           nbConsts,
           index << I18nMutateOpCode.SHIFT_PARENT | I18nMutateOpCode.AppendChild,
-          2 << I18nMutateOpCode.SHIFT_REF | I18nMutateOpCode.Select,
+          ~rootTemplate << I18nMutateOpCode.SHIFT_REF | I18nMutateOpCode.Select,
           index << I18nMutateOpCode.SHIFT_PARENT | I18nMutateOpCode.AppendChild,
           '!',
           nbConsts + 1,
@@ -234,7 +235,7 @@ describe('Runtime i18n', () => {
           'before',
           nbConsts,
           spanElement << I18nMutateOpCode.SHIFT_PARENT | I18nMutateOpCode.AppendChild,
-          bElementSubTemplate << I18nMutateOpCode.SHIFT_REF | I18nMutateOpCode.Select,
+          ~bElementSubTemplate << I18nMutateOpCode.SHIFT_REF | I18nMutateOpCode.Select,
           spanElement << I18nMutateOpCode.SHIFT_PARENT | I18nMutateOpCode.AppendChild,
           'after',
           nbConsts + 1,