diff --git a/packages/animations/browser/src/dsl/animation_timeline_builder.ts b/packages/animations/browser/src/dsl/animation_timeline_builder.ts
index 2c29d9e071..dbcc078895 100644
--- a/packages/animations/browser/src/dsl/animation_timeline_builder.ts
+++ b/packages/animations/browser/src/dsl/animation_timeline_builder.ts
@@ -199,34 +199,35 @@ export class AnimationTimelineBuilderVisitor implements AstVisitor {
 
   visitSequence(ast: SequenceAst, context: AnimationTimelineContext) {
     const subContextCount = context.subContextCount;
+    let ctx = context;
     const options = ast.options;
 
     if (options && (options.params || options.delay)) {
-      context.createSubContext(options);
-      context.transformIntoNewTimeline();
+      ctx = context.createSubContext(options);
+      ctx.transformIntoNewTimeline();
 
       if (options.delay != null) {
-        if (context.previousNode instanceof StyleAst) {
-          context.currentTimeline.snapshotCurrentStyles();
-          context.previousNode = DEFAULT_NOOP_PREVIOUS_NODE;
+        if (ctx.previousNode instanceof StyleAst) {
+          ctx.currentTimeline.snapshotCurrentStyles();
+          ctx.previousNode = DEFAULT_NOOP_PREVIOUS_NODE;
         }
 
         const delay = resolveTimingValue(options.delay);
-        context.delayNextStep(delay);
+        ctx.delayNextStep(delay);
       }
     }
 
     if (ast.steps.length) {
-      ast.steps.forEach(s => s.visit(this, context));
+      ast.steps.forEach(s => s.visit(this, ctx));
 
       // this is here just incase the inner steps only contain or end with a style() call
-      context.currentTimeline.applyStylesToKeyframe();
+      ctx.currentTimeline.applyStylesToKeyframe();
 
       // this means that some animation function within the sequence
       // ended up creating a sub timeline (which means the current
       // timeline cannot overlap with the contents of the sequence)
-      if (context.subContextCount > subContextCount) {
-        context.transformIntoNewTimeline();
+      if (ctx.subContextCount > subContextCount) {
+        ctx.transformIntoNewTimeline();
       }
     }
 
@@ -475,7 +476,7 @@ export class AnimationTimelineContext {
 
       Object.keys(newParams).forEach(name => {
         if (!skipIfExists || !paramsToUpdate.hasOwnProperty(name)) {
-          paramsToUpdate[name] = newParams[name];
+          paramsToUpdate[name] = interpolateParams(newParams[name], paramsToUpdate, this.errors);
         }
       });
     }
diff --git a/packages/animations/browser/test/dsl/animation_spec.ts b/packages/animations/browser/test/dsl/animation_spec.ts
index 4387bb3e89..dc40da85a8 100644
--- a/packages/animations/browser/test/dsl/animation_spec.ts
+++ b/packages/animations/browser/test/dsl/animation_spec.ts
@@ -358,6 +358,56 @@ export function main() {
           ]);
         });
 
+        it('should substitute in values that are defined as parameters for inner areas of a sequence',
+           () => {
+             const steps = sequence(
+                 [
+                   sequence(
+                       [
+                         sequence(
+                             [
+                               style({height: '{{ x0 }}px'}),
+                               animate(1000, style({height: '{{ x2 }}px'})),
+                             ],
+                             buildParams({x2: '{{ x1 }}3'})),
+                       ],
+                       buildParams({x1: '{{ x0 }}2'})),
+                 ],
+                 buildParams({x0: '1'}));
+
+             const players = invokeAnimationSequence(rootElement, steps);
+             expect(players.length).toEqual(1);
+             const [player] = players;
+             expect(player.keyframes).toEqual([
+               {offset: 0, height: '1px'}, {offset: 1, height: '123px'}
+             ]);
+           });
+
+        it('should substitute in values that are defined as parameters for reusable animations',
+           () => {
+             const anim = animation([
+               style({height: '{{ start }}'}),
+               animate(1000, style({height: '{{ end }}'})),
+             ]);
+
+             const steps = sequence(
+                 [
+                   sequence(
+                       [
+                         useAnimation(anim, buildParams({start: '{{ a }}', end: '{{ b }}'})),
+                       ],
+                       buildParams({a: '100px', b: '200px'})),
+                 ],
+                 buildParams({a: '0px'}));
+
+             const players = invokeAnimationSequence(rootElement, steps);
+             expect(players.length).toEqual(1);
+             const [player] = players;
+             expect(player.keyframes).toEqual([
+               {offset: 0, height: '100px'}, {offset: 1, height: '200px'}
+             ]);
+           });
+
         it('should throw an error when an input variable is not provided when invoked and is not a default value',
            () => {
              expect(() => {invokeAnimationSequence(rootElement, [style({color: '{{ color }}'})])})