diff --git a/modules/angular2/src/core/compiler/proto_view_factory.ts b/modules/angular2/src/core/compiler/proto_view_factory.ts
index 38d7f0d795..6d7ddaa95b 100644
--- a/modules/angular2/src/core/compiler/proto_view_factory.ts
+++ b/modules/angular2/src/core/compiler/proto_view_factory.ts
@@ -143,8 +143,8 @@ export class ProtoViewFactory {
         ListWrapper.map(allDirectives, directiveBinding => directiveBinding.metadata);
     var nestedPvsWithIndex = _collectNestedProtoViews(rootRenderProtoView);
     var nestedPvVariableBindings = _collectNestedProtoViewsVariableBindings(nestedPvsWithIndex);
-    var nestedPvVariableNames =
-        _collectNestedProtoViewsVariableNames(nestedPvsWithIndex, nestedPvVariableBindings);
+    var nestedPvVariableNames = _collectNestedProtoViewsVariableNames(nestedPvsWithIndex);
+
     var changeDetectorDefs =
         _getChangeDetectorDefinitions(hostComponentBinding.metadata, nestedPvsWithIndex,
                                       nestedPvVariableNames, allRenderDirectiveMetadata);
@@ -174,10 +174,7 @@ export function getChangeDetectorDefinitions(
     hostComponentMetadata: renderApi.DirectiveMetadata, rootRenderProtoView: renderApi.ProtoViewDto,
     allRenderDirectiveMetadata: List<renderApi.DirectiveMetadata>): List<ChangeDetectorDefinition> {
   var nestedPvsWithIndex = _collectNestedProtoViews(rootRenderProtoView);
-  var nestedPvVariableBindings = _collectNestedProtoViewsVariableBindings(nestedPvsWithIndex);
-  var nestedPvVariableNames =
-      _collectNestedProtoViewsVariableNames(nestedPvsWithIndex, nestedPvVariableBindings);
-
+  var nestedPvVariableNames = _collectNestedProtoViewsVariableNames(nestedPvsWithIndex);
   return _getChangeDetectorDefinitions(hostComponentMetadata, nestedPvsWithIndex,
                                        nestedPvVariableNames, allRenderDirectiveMetadata);
 }
@@ -235,8 +232,6 @@ function _createAppProtoView(
     variableBindings: Map<string, string>, allDirectives: List<DirectiveBinding>): AppProtoView {
   var elementBinders = renderProtoView.elementBinders;
   var protoView = new AppProtoView(renderProtoView.render, protoChangeDetector, variableBindings);
-
-  // TODO: vsavkin refactor to pass element binders into proto view
   _createElementBinders(protoView, elementBinders, allDirectives);
   _bindDirectiveEvents(protoView, elementBinders);
 
@@ -255,31 +250,30 @@ function _createVariableBindings(renderProtoView): Map<string, string> {
   MapWrapper.forEach(renderProtoView.variableBindings, (mappedName, varName) => {
     MapWrapper.set(variableBindings, varName, mappedName);
   });
-  ListWrapper.forEach(renderProtoView.elementBinders, binder => {
-    MapWrapper.forEach(binder.variableBindings, (mappedName, varName) => {
-      MapWrapper.set(variableBindings, varName, mappedName);
-    });
-  });
   return variableBindings;
 }
 
 function _collectNestedProtoViewsVariableNames(
-    nestedPvsWithIndex: List<RenderProtoViewWithIndex>,
-    nestedPvVariableBindings: List<Map<string, string>>): List<List<string>> {
+    nestedPvsWithIndex: List<RenderProtoViewWithIndex>): List<List<string>> {
   var nestedPvVariableNames = ListWrapper.createFixedSize(nestedPvsWithIndex.length);
   ListWrapper.forEach(nestedPvsWithIndex, (pvWithIndex) => {
     var parentVariableNames =
         isPresent(pvWithIndex.parentIndex) ? nestedPvVariableNames[pvWithIndex.parentIndex] : null;
     nestedPvVariableNames[pvWithIndex.index] =
-        _createVariableNames(parentVariableNames, nestedPvVariableBindings[pvWithIndex.index]);
+        _createVariableNames(parentVariableNames, pvWithIndex.renderProtoView);
   });
   return nestedPvVariableNames;
 }
 
-function _createVariableNames(parentVariableNames, variableBindings): List<string> {
-  var variableNames = isPresent(parentVariableNames) ? ListWrapper.clone(parentVariableNames) : [];
-  MapWrapper.forEach(variableBindings, (local, v) => { ListWrapper.push(variableNames, local); });
-  return variableNames;
+
+function _createVariableNames(parentVariableNames, renderProtoView): List<string> {
+  var res = isBlank(parentVariableNames) ? [] : ListWrapper.clone(parentVariableNames);
+  MapWrapper.forEach(renderProtoView.variableBindings,
+                     (mappedName, varName) => { res.push(mappedName); });
+  ListWrapper.forEach(renderProtoView.elementBinders, binder => {
+    MapWrapper.forEach(binder.variableBindings, (mappedName, varName) => { res.push(mappedName); });
+  });
+  return res;
 }
 
 function _createElementBinders(protoView, elementBinders, allDirectiveBindings) {
diff --git a/modules/angular2/test/core/compiler/integration_spec.ts b/modules/angular2/test/core/compiler/integration_spec.ts
index 6ad5b18911..c61dc956a6 100644
--- a/modules/angular2/test/core/compiler/integration_spec.ts
+++ b/modules/angular2/test/core/compiler/integration_spec.ts
@@ -541,6 +541,24 @@ export function main() {
                    expect(view.rawView.locals).not.toBe(null);
                    expect(view.rawView.locals.get('superAlice')).toBeAnInstanceOf(ChildComp);
 
+                   async.done();
+                 });
+           }));
+
+        it('should allow to use variables in a for loop',
+           inject([TestBed, AsyncTestCompleter], (tb: TestBed, async) => {
+             tb.overrideView(MyComp, new viewAnn.View({
+               template:
+                   '<div><div *ng-for="var i of [1]"><child-cmp-no-template #cmp></child-cmp-no-template>{{i}}-{{cmp.ctxProp}}</div></div>',
+               directives: [ChildCompNoTemplate, NgFor]
+             }));
+
+             tb.createView(MyComp, {context: ctx})
+                 .then((view) => {
+                   view.detectChanges();
+
+                   expect(view.rootNodes).toHaveText("1-hello");
+
                    async.done();
                  });
            }));
@@ -1343,6 +1361,13 @@ class ChildComp {
   }
 }
 
+@Component({selector: 'child-cmp-no-template'})
+@View({directives: [], template: ''})
+@Injectable()
+class ChildCompNoTemplate {
+  ctxProp: string = 'hello';
+}
+
 @Component({selector: 'child-cmp-svc'})
 @View({template: '{{ctxProp}}'})
 @Injectable()