diff --git a/modules/angular2/src/di/binding.ts b/modules/angular2/src/di/binding.ts
index cd622a1a2a..a3cbecce82 100644
--- a/modules/angular2/src/di/binding.ts
+++ b/modules/angular2/src/di/binding.ts
@@ -431,8 +431,7 @@ export class BindingBuilder {
 function _constructDependencies(factoryFunction: Function, dependencies: List<any>) {
   return isBlank(dependencies) ?
              _dependenciesFor(factoryFunction) :
-             ListWrapper.map(dependencies,
-                             (t) => Dependency.fromKey(Key.get(resolveForwardRef(t))));
+             ListWrapper.map(dependencies, (t) => _extractToken(factoryFunction, t));
 }
 
 function _dependenciesFor(typeOrFunc): List<any> {
@@ -451,6 +450,10 @@ function _extractToken(typeOrFunc, annotations) {
   var lazy = false;
   var asPromise = false;
 
+  if (!ListWrapper.isList(annotations)) {
+    return _createDependency(annotations, asPromise, lazy, optional, depProps);
+  }
+
   for (var i = 0; i < annotations.length; ++i) {
     var paramAnnotation = annotations[i];
 
diff --git a/modules/angular2/test/di/injector_spec.js b/modules/angular2/test/di/injector_spec.js
index 93daaacd95..6b26a21c90 100644
--- a/modules/angular2/test/di/injector_spec.js
+++ b/modules/angular2/test/di/injector_spec.js
@@ -1,8 +1,10 @@
 import {isBlank, BaseException} from 'angular2/src/facade/lang';
 import {describe, ddescribe, it, iit, expect, beforeEach} from 'angular2/test_lib';
-import {Injector, bind, ResolvedBinding, Key, forwardRef} from 'angular2/di';
+import {Injector, bind, ResolvedBinding, Key, forwardRef, DependencyAnnotation} from 'angular2/di';
 import {Optional, Inject, InjectLazy} from 'angular2/src/di/annotations_impl';
 
+class CustomDependencyAnnotation extends DependencyAnnotation {
+}
 
 class Engine {
 }
@@ -408,6 +410,16 @@ export function main() {
         expect(stringBinding.dependencies[0].key).toEqual(Key.get(Engine));
         expect(dashboardSoftwareBinding.dependencies[0].key).toEqual(Key.get(BrokenEngine));
       });
+
+      it('should support overriding factory dependencies with dependency annotations', function () {
+        var bindings = Injector.resolve([
+          bind("token").toFactory((e) => "result", [[new Inject("dep"), new CustomDependencyAnnotation()]])
+        ]);
+        var binding = bindings[Key.get("token").id];
+
+        expect(binding.dependencies[0].key).toEqual(Key.get("dep"));
+        expect(binding.dependencies[0].properties).toEqual([new CustomDependencyAnnotation()]);
+      });
     });
   });
 }