diff --git a/modules/angular1_router/src/ng_outlet.ts b/modules/angular1_router/src/ng_outlet.ts
index 6184f7655a..7c450bb40d 100644
--- a/modules/angular1_router/src/ng_outlet.ts
+++ b/modules/angular1_router/src/ng_outlet.ts
@@ -155,7 +155,8 @@ function ngOutletDirective($animate, $q: ng.IQService, $router) {
         }
 
         this.controller.$$routeParams = instruction.params;
-        this.controller.$$template = '<div ' + dashCase(componentName) + '></div>';
+        this.controller.$$template =
+            '<' + dashCase(componentName) + '></' + dashCase(componentName) + '>';
         this.controller.$$router = this.router.childRouter(instruction.componentType);
 
         let newScope = scope.$new();
diff --git a/modules/angular1_router/test/integration/navigation_spec.js b/modules/angular1_router/test/integration/navigation_spec.js
index 3d230c4b12..51be632a72 100644
--- a/modules/angular1_router/test/integration/navigation_spec.js
+++ b/modules/angular1_router/test/integration/navigation_spec.js
@@ -21,17 +21,21 @@ describe('navigation', function () {
       $router = _$router_;
     });
 
-    registerComponent('userCmp', {
+    registerDirective('userCmp', {
       template: '<div>hello {{userCmp.$routeParams.name}}</div>'
     });
-    registerComponent('oneCmp', {
+    registerDirective('oneCmp', {
       template: '<div>{{oneCmp.number}}</div>',
       controller: function () {this.number = 'one'}
     });
-    registerComponent('twoCmp', {
+    registerDirective('twoCmp', {
       template: '<div>{{twoCmp.number}}</div>',
       controller: function () {this.number = 'two'}
     });
+    registerComponent('threeCmp', {
+      template: '<div>{{$ctrl.number}}</div>',
+      controller: function () {this.number = 'three'}
+    });
   });
 
   it('should work in a simple case', function () {
@@ -47,6 +51,21 @@ describe('navigation', function () {
     expect(elt.text()).toBe('one');
   });
 
+
+  it('should work with components created by the `mod.component()` helper', function () {
+    compile('<ng-outlet></ng-outlet>');
+
+    $router.config([
+      { path: '/', component: 'threeCmp' }
+    ]);
+
+    $router.navigateByUrl('/');
+    $rootScope.$digest();
+
+    expect(elt.text()).toBe('three');
+  });
+
+
   it('should navigate between components with different parameters', function () {
     $router.config([
       { path: '/user/:name', component: 'userCmp' }
@@ -68,7 +87,7 @@ describe('navigation', function () {
     function ParentController() {
       instanceCount += 1;
     }
-    registerComponent('parentCmp', {
+    registerDirective('parentCmp', {
       template: 'parent { <ng-outlet></ng-outlet> }',
       $routeConfig: [
         { path: '/user/:name', component: 'userCmp' }
@@ -94,7 +113,7 @@ describe('navigation', function () {
 
 
   it('should work with nested outlets', function () {
-    registerComponent('childCmp', {
+    registerDirective('childCmp', {
       template: '<div>inner { <div ng-outlet></div> }</div>',
       $routeConfig: [
         { path: '/b', component: 'oneCmp' }
@@ -114,7 +133,7 @@ describe('navigation', function () {
 
 
   it('should work with recursive nested outlets', function () {
-    registerComponent('recurCmp', {
+    registerDirective('recurCmp', {
       template: '<div>recur { <div ng-outlet></div> }</div>',
       $routeConfig: [
         { path: '/recur', component: 'recurCmp' },
@@ -163,7 +182,7 @@ describe('navigation', function () {
 
 
   it('should change location to the canonical route with nested components', inject(function ($location) {
-    registerComponent('childRouter', {
+    registerDirective('childRouter', {
       template: '<div>inner { <div ng-outlet></div> }</div>',
       $routeConfig: [
         { path: '/new-child', component: 'oneCmp', name: 'NewChild'},
@@ -208,7 +227,7 @@ describe('navigation', function () {
 
   it('should expose a "navigating" property on $router', inject(function ($q) {
     var defer;
-    registerComponent('pendingActivate', {
+    registerDirective('pendingActivate', {
       $canActivate: function () {
         defer = $q.defer();
         return defer.promise;
@@ -227,36 +246,54 @@ describe('navigation', function () {
     expect($router.navigating).toBe(false);
   }));
 
-  function registerComponent(name, options) {
-    var controller = options.controller || function () {};
-
-    ['$routerOnActivate', '$routerOnDeactivate', '$routerOnReuse', '$routerCanReuse', '$routerCanDeactivate'].forEach(function (hookName) {
-      if (options[hookName]) {
-        controller.prototype[hookName] = options[hookName];
-      }
-    });
-
+  function registerDirective(name, options) {
     function factory() {
       return {
         template: options.template || '',
         controllerAs: name,
-        controller: controller
+        controller: getController(options)
       };
     }
-
-    if (options.$canActivate) {
-      factory.$canActivate = options.$canActivate;
-    }
-    if (options.$routeConfig) {
-      factory.$routeConfig = options.$routeConfig;
-    }
-
+    applyStaticProperties(factory, options);
     $compileProvider.directive(name, factory);
   }
 
+  function registerComponent(name, options) {
+
+    var definition = {
+      template: options.template || '',
+      controller: getController(options),
+    }
+    applyStaticProperties(definition, options);
+    $compileProvider.component(name, definition);
+  }
+
   function compile(template) {
     elt = $compile('<div>' + template + '</div>')($rootScope);
     $rootScope.$digest();
     return elt;
   }
+
+  function getController(options) {
+    var controller = options.controller || function () {};
+    [
+      '$routerOnActivate', '$routerOnDeactivate',
+      '$routerOnReuse', '$routerCanReuse',
+      '$routerCanDeactivate'
+    ].forEach(function (hookName) {
+      if (options[hookName]) {
+        controller.prototype[hookName] = options[hookName];
+      }
+    });
+    return controller;
+  }
+
+  function applyStaticProperties(target, options) {
+    ['$canActivate', '$routeConfig'].forEach(function(property) {
+      if (options[property]) {
+        target[property] = options[property];
+      }
+    });
+  }
 });
+
diff --git a/npm-shrinkwrap.clean.json b/npm-shrinkwrap.clean.json
index 2e81c55712..fccea7ba8b 100644
--- a/npm-shrinkwrap.clean.json
+++ b/npm-shrinkwrap.clean.json
@@ -46,13 +46,13 @@
       "version": "1.0.0"
     },
     "angular": {
-      "version": "1.4.8"
+      "version": "1.5.0"
     },
     "angular-animate": {
-      "version": "1.4.8"
+      "version": "1.5.0"
     },
     "angular-mocks": {
-      "version": "1.4.8"
+      "version": "1.5.0"
     },
     "ansi": {
       "version": "0.3.0"
@@ -5828,5 +5828,5 @@
     }
   },
   "name": "angular-srcs",
-  "version": "2.0.0-beta.2"
+  "version": "2.0.0-beta.3"
 }
diff --git a/npm-shrinkwrap.json b/npm-shrinkwrap.json
index dbcceace50..def5bc54f3 100644
--- a/npm-shrinkwrap.json
+++ b/npm-shrinkwrap.json
@@ -1,6 +1,6 @@
 {
   "name": "angular-srcs",
-  "version": "2.0.0-beta.2",
+  "version": "2.0.0-beta.3",
   "dependencies": {
     "abbrev": {
       "version": "1.0.7",
@@ -74,19 +74,19 @@
       "resolved": "https://registry.npmjs.org/amdefine/-/amdefine-1.0.0.tgz"
     },
     "angular": {
-      "version": "1.4.8",
-      "from": "angular@>=1.4.7 <2.0.0",
-      "resolved": "https://registry.npmjs.org/angular/-/angular-1.4.8.tgz"
+      "version": "1.5.0",
+      "from": "angular@1.5.0",
+      "resolved": "https://registry.npmjs.org/angular/-/angular-1.5.0.tgz"
     },
     "angular-animate": {
-      "version": "1.4.8",
-      "from": "angular-animate@>=1.4.7 <2.0.0",
-      "resolved": "https://registry.npmjs.org/angular-animate/-/angular-animate-1.4.8.tgz"
+      "version": "1.5.0",
+      "from": "angular-animate@1.5.0",
+      "resolved": "https://registry.npmjs.org/angular-animate/-/angular-animate-1.5.0.tgz"
     },
     "angular-mocks": {
-      "version": "1.4.8",
-      "from": "angular-mocks@>=1.4.7 <2.0.0",
-      "resolved": "https://registry.npmjs.org/angular-mocks/-/angular-mocks-1.4.8.tgz"
+      "version": "1.5.0",
+      "from": "angular-mocks@1.5.0",
+      "resolved": "https://registry.npmjs.org/angular-mocks/-/angular-mocks-1.5.0.tgz"
     },
     "ansi": {
       "version": "0.3.0",
@@ -7668,7 +7668,7 @@
     },
     "rxjs": {
       "version": "5.0.0-beta.0",
-      "from": "rxjs@5.0.0-beta.0",
+      "from": "https://registry.npmjs.org/rxjs/-/rxjs-5.0.0-beta.0.tgz",
       "resolved": "https://registry.npmjs.org/rxjs/-/rxjs-5.0.0-beta.0.tgz"
     },
     "sass-graph": {
@@ -8519,29 +8519,29 @@
     },
     "ts2dart": {
       "version": "0.7.22",
-      "from": "ts2dart@>=0.7.22 <0.8.0",
+      "from": "https://registry.npmjs.org/ts2dart/-/ts2dart-0.7.22.tgz",
       "resolved": "https://registry.npmjs.org/ts2dart/-/ts2dart-0.7.22.tgz",
       "dependencies": {
         "source-map": {
           "version": "0.4.4",
-          "from": "source-map@>=0.4.2 <0.5.0",
+          "from": "https://registry.npmjs.org/source-map/-/source-map-0.4.4.tgz",
           "resolved": "https://registry.npmjs.org/source-map/-/source-map-0.4.4.tgz"
         },
         "source-map-support": {
           "version": "0.3.3",
-          "from": "source-map-support@>=0.3.1 <0.4.0",
+          "from": "https://registry.npmjs.org/source-map-support/-/source-map-support-0.3.3.tgz",
           "resolved": "https://registry.npmjs.org/source-map-support/-/source-map-support-0.3.3.tgz",
           "dependencies": {
             "source-map": {
               "version": "0.1.32",
-              "from": "source-map@0.1.32",
+              "from": "https://registry.npmjs.org/source-map/-/source-map-0.1.32.tgz",
               "resolved": "https://registry.npmjs.org/source-map/-/source-map-0.1.32.tgz"
             }
           }
         },
         "typescript": {
           "version": "1.7.3",
-          "from": "typescript@1.7.3",
+          "from": "https://registry.npmjs.org/typescript/-/typescript-1.7.3.tgz",
           "resolved": "https://registry.npmjs.org/typescript/-/typescript-1.7.3.tgz"
         }
       }
@@ -9292,7 +9292,7 @@
     },
     "zone.js": {
       "version": "0.5.13",
-      "from": "zone.js@0.5.13",
+      "from": "https://registry.npmjs.org/zone.js/-/zone.js-0.5.13.tgz",
       "resolved": "https://registry.npmjs.org/zone.js/-/zone.js-0.5.13.tgz"
     }
   }
diff --git a/package.json b/package.json
index 93c8e91f18..e659aa9136 100644
--- a/package.json
+++ b/package.json
@@ -39,9 +39,9 @@
     "zone.js": "0.5.13"
   },
   "devDependencies": {
-    "angular": "^1.4.7",
-    "angular-animate": "^1.4.7",
-    "angular-mocks": "^1.4.7",
+    "angular": "^1.5.0",
+    "angular-animate": "^1.5.0",
+    "angular-mocks": "^1.5.0",
     "base64-js": "^0.0.8",
     "bower": "^1.3.12",
     "broccoli": "^0.16.9",