diff --git a/modules/angular2/src/core/compiler/compiler.js b/modules/angular2/src/core/compiler/compiler.js
index e3f20449a2..320a652e92 100644
--- a/modules/angular2/src/core/compiler/compiler.js
+++ b/modules/angular2/src/core/compiler/compiler.js
@@ -120,7 +120,6 @@ export class Compiler {
   }
 
   _compileTemplate(template: Element, cmpMetadata): Promise<ProtoView> {
-    this._shadowDomStrategy.processTemplate(template, cmpMetadata);
     var pipeline = new CompilePipeline(this.createSteps(cmpMetadata));
     var compileElements = pipeline.process(template);
     var protoView = compileElements[0].inheritedProtoView;
diff --git a/modules/angular2/src/core/compiler/pipeline/compile_element.js b/modules/angular2/src/core/compiler/pipeline/compile_element.js
index c8d6352c2b..8da921fce9 100644
--- a/modules/angular2/src/core/compiler/pipeline/compile_element.js
+++ b/modules/angular2/src/core/compiler/pipeline/compile_element.js
@@ -39,6 +39,8 @@ export class CompileElement {
   inheritedElementBinder:ElementBinder;
   distanceToParentInjector:number;
   compileChildren: boolean;
+  ignoreBindings: boolean;
+
   constructor(element:Element) {
     this.element = element;
     this._attrs = null;
@@ -64,6 +66,8 @@ export class CompileElement {
     this.inheritedElementBinder = null;
     this.distanceToParentInjector = 0;
     this.compileChildren = true;
+    // set to true to ignore all the bindings on the element
+    this.ignoreBindings = false;
   }
 
   refreshAttrs() {
diff --git a/modules/angular2/src/core/compiler/pipeline/default_steps.js b/modules/angular2/src/core/compiler/pipeline/default_steps.js
index 9b6c525f1d..e841c1a38c 100644
--- a/modules/angular2/src/core/compiler/pipeline/default_steps.js
+++ b/modules/angular2/src/core/compiler/pipeline/default_steps.js
@@ -1,5 +1,5 @@
 import {ChangeDetection, Parser} from 'angular2/change_detection';
-import {List} from 'angular2/src/facade/collection';
+import {List, ListWrapper} from 'angular2/src/facade/collection';
 
 import {PropertyBindingParser} from './property_binding_parser';
 import {TextInterpolationParser} from './text_interpolation_parser';
@@ -9,9 +9,11 @@ import {ElementBindingMarker} from './element_binding_marker';
 import {ProtoViewBuilder} from './proto_view_builder';
 import {ProtoElementInjectorBuilder} from './proto_element_injector_builder';
 import {ElementBinderBuilder} from './element_binder_builder';
+import {ShadowDomTransformer} from './shadow_dom_transformer';
 import {DirectiveMetadata} from 'angular2/src/core/compiler/directive_metadata';
-import {ShadowDomStrategy} from 'angular2/src/core/compiler/shadow_dom_strategy';
+import {ShadowDomStrategy, NativeShadowDomStrategy} from 'angular2/src/core/compiler/shadow_dom_strategy';
 import {stringify} from 'angular2/src/facade/lang';
+import {DOM} from 'angular2/src/facade/dom';
 
 /**
  * Default steps used for compiling a template.
@@ -27,8 +29,14 @@ export function createDefaultSteps(
 
   var compilationUnit = stringify(compiledComponent.type);
 
-  return [
-    new ViewSplitter(parser, compilationUnit),
+  var steps = [new ViewSplitter(parser, compilationUnit)];
+
+  if (!(shadowDomStrategy instanceof NativeShadowDomStrategy)) {
+    var step = new ShadowDomTransformer(compiledComponent, shadowDomStrategy, DOM.defaultDoc().head);
+    ListWrapper.push(steps, step);
+  }
+
+  steps = ListWrapper.concat(steps,[
     new PropertyBindingParser(parser, compilationUnit),
     new DirectiveParser(directives),
     new TextInterpolationParser(parser, compilationUnit),
@@ -36,5 +44,7 @@ export function createDefaultSteps(
     new ProtoViewBuilder(changeDetection, shadowDomStrategy),
     new ProtoElementInjectorBuilder(),
     new ElementBinderBuilder(parser, compilationUnit)
-  ];
+  ]);
+
+  return steps;
 }
diff --git a/modules/angular2/src/core/compiler/pipeline/element_binding_marker.js b/modules/angular2/src/core/compiler/pipeline/element_binding_marker.js
index a5ad8844fa..686d3a47b3 100644
--- a/modules/angular2/src/core/compiler/pipeline/element_binding_marker.js
+++ b/modules/angular2/src/core/compiler/pipeline/element_binding_marker.js
@@ -26,6 +26,10 @@ const NG_BINDING_CLASS = 'ng-binding';
  */
 export class ElementBindingMarker extends CompileStep {
   process(parent:CompileElement, current:CompileElement, control:CompileControl) {
+    if (current.ignoreBindings) {
+      return;
+    }
+
     var hasBindings =
       (isPresent(current.textNodeBindings) && MapWrapper.size(current.textNodeBindings)>0) ||
       (isPresent(current.propertyBindings) && MapWrapper.size(current.propertyBindings)>0) ||
diff --git a/modules/angular2/src/core/compiler/pipeline/property_binding_parser.js b/modules/angular2/src/core/compiler/pipeline/property_binding_parser.js
index 28c22b23c1..f93a47e667 100644
--- a/modules/angular2/src/core/compiler/pipeline/property_binding_parser.js
+++ b/modules/angular2/src/core/compiler/pipeline/property_binding_parser.js
@@ -38,6 +38,10 @@ export class PropertyBindingParser extends CompileStep {
   }
 
   process(parent:CompileElement, current:CompileElement, control:CompileControl) {
+    if (current.ignoreBindings) {
+      return;
+    }
+
     var attrs = current.attrs();
     MapWrapper.forEach(attrs, (attrValue, attrName) => {
       var bindParts = RegExpWrapper.firstMatch(BIND_NAME_REGEXP, attrName);
diff --git a/modules/angular2/src/core/compiler/pipeline/shadow_dom_transformer.js b/modules/angular2/src/core/compiler/pipeline/shadow_dom_transformer.js
new file mode 100644
index 0000000000..7d90dd0d51
--- /dev/null
+++ b/modules/angular2/src/core/compiler/pipeline/shadow_dom_transformer.js
@@ -0,0 +1,79 @@
+import {CompileStep} from './compile_step';
+import {CompileElement} from './compile_element';
+import {CompileControl} from './compile_control';
+
+import {DirectiveMetadata} from 'angular2/src/core/compiler/directive_metadata';
+import {ShadowDomStrategy} from 'angular2/src/core/compiler/shadow_dom_strategy';
+import {shimCssText} from 'angular2/src/core/compiler/shadow_dom_emulation/shim_css';
+
+import {DOM, Element} from 'angular2/src/facade/dom';
+import {isPresent, isBlank} from 'angular2/src/facade/lang';
+import {StringMapWrapper} from 'angular2/src/facade/collection';
+
+var _cssCache = StringMapWrapper.create();
+
+export class ShadowDomTransformer extends CompileStep {
+  _selector: string;
+  _strategy: ShadowDomStrategy;
+  _styleHost: Element;
+  _lastInsertedStyle: Element;
+
+  constructor(cmpMetadata: DirectiveMetadata, strategy: ShadowDomStrategy, styleHost: Element) {
+    super();
+    this._strategy = strategy;
+    this._selector = cmpMetadata.annotation.selector;
+    this._styleHost = styleHost;
+    this._lastInsertedStyle = null;
+  }
+
+  process(parent:CompileElement, current:CompileElement, control:CompileControl) {
+    // May be remove the styles
+    if (DOM.tagName(current.element) == 'STYLE') {
+      current.ignoreBindings = true;
+      if (this._strategy.extractStyles()) {
+        DOM.remove(current.element);
+        var css = DOM.getText(current.element);
+        if (this._strategy.shim()) {
+          // The css generated here is unique for the component (because of the shim).
+          // Then we do not need to cache it.
+          css = shimCssText(css, this._selector);
+          this._insertStyle(this._styleHost, css);
+        } else {
+          var seen = isPresent(StringMapWrapper.get(_cssCache, css));
+          if (!seen) {
+            StringMapWrapper.set(_cssCache, css, true);
+            this._insertStyle(this._styleHost, css);
+          }
+        }
+      }
+    } else {
+      if (this._strategy.shim()) {
+        try {
+          DOM.setAttribute(current.element, this._selector, '');
+        } catch(e) {
+          // TODO(vicb): for now only simple selector (tag name) are supported
+        }
+      }
+    }
+  }
+
+  clearCache() {
+    _cssCache = StringMapWrapper.create();
+  }
+
+  _insertStyle(el: Element, css: string) {
+    var style = DOM.createStyleElement(css);
+    if (isBlank(this._lastInsertedStyle)) {
+      var firstChild = DOM.firstChild(el);
+      if (isPresent(firstChild)) {
+        DOM.insertBefore(firstChild, style);
+      } else {
+        DOM.appendChild(el, style);
+      }
+    } else {
+      DOM.insertAfter(this._lastInsertedStyle, style);
+    }
+    this._lastInsertedStyle = style;
+  }
+}
+
diff --git a/modules/angular2/src/core/compiler/pipeline/text_interpolation_parser.js b/modules/angular2/src/core/compiler/pipeline/text_interpolation_parser.js
index b412e69f6e..ec3474a9ae 100644
--- a/modules/angular2/src/core/compiler/pipeline/text_interpolation_parser.js
+++ b/modules/angular2/src/core/compiler/pipeline/text_interpolation_parser.js
@@ -23,7 +23,7 @@ export class TextInterpolationParser extends CompileStep {
   }
 
   process(parent:CompileElement, current:CompileElement, control:CompileControl) {
-    if (!current.compileChildren) {
+    if (!current.compileChildren || current.ignoreBindings) {
       return;
     }
     var element = current.element;
diff --git a/modules/angular2/src/core/compiler/shadow_dom_strategy.js b/modules/angular2/src/core/compiler/shadow_dom_strategy.js
index 232df53858..2cf6c9d89e 100644
--- a/modules/angular2/src/core/compiler/shadow_dom_strategy.js
+++ b/modules/angular2/src/core/compiler/shadow_dom_strategy.js
@@ -1,28 +1,22 @@
 import {Type, isBlank, isPresent} from 'angular2/src/facade/lang';
-import {DOM, Element, StyleElement} from 'angular2/src/facade/dom';
+import {DOM, Element} from 'angular2/src/facade/dom';
 import {List, ListWrapper} from 'angular2/src/facade/collection';
 import {View} from './view';
 import {Content} from './shadow_dom_emulation/content_tag';
 import {LightDom} from './shadow_dom_emulation/light_dom';
 import {DirectiveMetadata} from './directive_metadata';
-import {shimCssText} from './shadow_dom_emulation/shim_css';
 
 export class ShadowDomStrategy {
   attachTemplate(el:Element, view:View){}
   constructLightDom(lightDomView:View, shadowDomView:View, el:Element){}
   polyfillDirectives():List<Type>{ return null; }
-  processTemplate(template: Element, cmpMetadata: DirectiveMetadata) { return null; }
+  shim(): boolean { return false; }
+  extractStyles(): boolean { return false; }
 }
 
 export class EmulatedShadowDomStrategy extends ShadowDomStrategy {
-  _styleHost: Element;
-
-  constructor(styleHost: Element = null) {
+  constructor() {
     super();
-    if (isBlank(styleHost)) {
-      styleHost = DOM.defaultDoc().head;
-    }
-    this._styleHost = styleHost;
   }
 
   attachTemplate(el:Element, view:View){
@@ -38,25 +32,20 @@ export class EmulatedShadowDomStrategy extends ShadowDomStrategy {
     return [Content];
   }
 
-  processTemplate(template: Element, cmpMetadata: DirectiveMetadata) {
-    var templateRoot = DOM.templateAwareRoot(template);
-    var attrName = cmpMetadata.annotation.selector;
+  shim(): boolean {
+    return true;
+  }
 
-    // Shim CSS for emulated shadow DOM and attach the styles do the document head
-    var styles = _detachStyles(templateRoot);
-    for (var i = 0; i < styles.length; i++) {
-      var style = styles[i];
-      var processedCss = shimCssText(DOM.getText(style), attrName);
-      DOM.setText(style, processedCss);
-    }
-    _attachStyles(this._styleHost, styles);
-
-    // Update the DOM to trigger the CSS
-    _addAttributeToChildren(templateRoot, attrName);
+  extractStyles(): boolean {
+    return true;
   }
 }
 
 export class NativeShadowDomStrategy extends ShadowDomStrategy {
+  constructor() {
+    super();
+  }
+
   attachTemplate(el:Element, view:View){
     moveViewNodesIntoParent(el.createShadowRoot(), view);
   }
@@ -69,8 +58,12 @@ export class NativeShadowDomStrategy extends ShadowDomStrategy {
     return [];
   }
 
-  processTemplate(template: Element, cmpMetadata: DirectiveMetadata) {
-    return template;
+  shim(): boolean {
+    return false;
+  }
+
+  extractStyles(): boolean {
+    return false;
   }
 }
 
@@ -79,38 +72,3 @@ function moveViewNodesIntoParent(parent, view) {
     DOM.appendChild(parent, view.nodes[i]);
   }
 }
-
-// TODO(vicb): union types: el is an Element or a Document Fragment
-function _detachStyles(el): List<StyleElement> {
-  var nodeList = DOM.querySelectorAll(el, 'style');
-  var styles = [];
-  for (var i = 0; i < nodeList.length; i++) {
-    var style = DOM.remove(nodeList[i]);
-    ListWrapper.push(styles, style);
-  }
-  return styles;
-}
-
-// Move the styles as the first children of the template
-function _attachStyles(el: Element, styles: List<StyleElement>) {
-  var firstChild = DOM.firstChild(el);
-  for (var i = styles.length - 1; i >= 0; i--) {
-    var style = styles[i];
-    if (isPresent(firstChild)) {
-      DOM.insertBefore(firstChild, style);
-    } else {
-      DOM.appendChild(el, style);
-    }
-    firstChild = style;
-  }
-}
-
-// TODO(vicb): union types: el is an Element or a Document Fragment
-function _addAttributeToChildren(el, attrName:string) {
-  // TODO(vicb): currently the code crashes when the attrName is not an el selector
-  var children = DOM.querySelectorAll(el, "*");
-  for (var i = 0; i < children.length; i++) {
-    var child = children[i];
-    DOM.setAttribute(child, attrName, '');
-  }
-}
diff --git a/modules/angular2/src/facade/dom.dart b/modules/angular2/src/facade/dom.dart
index c250ec5017..47f8e3b48c 100644
--- a/modules/angular2/src/facade/dom.dart
+++ b/modules/angular2/src/facade/dom.dart
@@ -103,6 +103,12 @@ class DOM {
     el.setAttribute(attrName, attrValue);
     return el;
   }
+  static StyleElement createStyleElement(String css, [HtmlDocument doc = null]) {
+    if (doc == null) doc = document;
+    var el = doc.createElement("STYLE");
+    el.text = css;
+    return el;
+  }
   static clone(Node node) => node.clone(true);
   static bool hasProperty(Element element, String name) =>
       new JsObject.fromBrowserObject(element).hasProperty(name);
diff --git a/modules/angular2/test/core/compiler/compiler_spec.js b/modules/angular2/test/core/compiler/compiler_spec.js
index 4ddc9a7b57..0850a4064a 100644
--- a/modules/angular2/test/core/compiler/compiler_spec.js
+++ b/modules/angular2/test/core/compiler/compiler_spec.js
@@ -70,23 +70,6 @@ export function main() {
       });
     });
 
-    it('should use the shadow dom strategy to process the template', (done) => {
-      // TODO(vicb) test in Dart when the bug is fixed
-      // https://code.google.com/p/dart/issues/detail?id=18249
-      if (IS_DARTIUM) {
-        done();
-        return;
-      }
-      var templateHtml = 'processed template';
-      var compiler = createCompiler((parent, current, control) => {
-        current.inheritedProtoView = new ProtoView(current.element, null, null);
-      }, new FakeShadowDomStrategy(templateHtml));
-      compiler.compile(MainComponent, null).then( (protoView) => {
-        expect(DOM.getInnerHTML(protoView.element)).toEqual('processed template');
-        done();
-      });
-    });
-
     it('should load nested components', (done) => {
       var mainEl = el('<div></div>');
       var compiler = createCompiler( (parent, current, control) => {
@@ -244,15 +227,3 @@ class MockStep extends CompileStep {
     this.processClosure(parent, current, control);
   }
 }
-
-class FakeShadowDomStrategy extends NativeShadowDomStrategy {
-  templateHtml: string;
-  constructor(templateHtml: string) {
-    super();
-    this.templateHtml = templateHtml;
-  }
-
-  processTemplate(template: Element, cmpMetadata: DirectiveMetadata) {
-    DOM.setInnerHTML(template, this.templateHtml);
-  }
-}
diff --git a/modules/angular2/test/core/compiler/pipeline/element_binding_marker_spec.js b/modules/angular2/test/core/compiler/pipeline/element_binding_marker_spec.js
index 89213dc7ff..4af2707b80 100644
--- a/modules/angular2/test/core/compiler/pipeline/element_binding_marker_spec.js
+++ b/modules/angular2/test/core/compiler/pipeline/element_binding_marker_spec.js
@@ -14,7 +14,8 @@ import {Template, Decorator, Component} from 'angular2/src/core/annotations/anno
 export function main() {
   describe('ElementBindingMarker', () => {
 
-    function createPipeline({textNodeBindings, propertyBindings, variableBindings, eventBindings, directives}={}) {
+    function createPipeline({textNodeBindings, propertyBindings, variableBindings, eventBindings,
+      directives, ignoreBindings}={}) {
       var reader = new DirectiveMetadataReader();
       return new CompilePipeline([
         new MockStep((parent, current, control) => {
@@ -30,6 +31,9 @@ export function main() {
             if (isPresent(eventBindings)) {
               current.eventBindings = eventBindings;
             }
+            if (isPresent(ignoreBindings)) {
+              current.ignoreBindings = ignoreBindings;
+            }
             if (isPresent(directives)) {
               for (var i=0; i<directives.length; i++) {
                 current.addDirective(reader.read(directives[i]));
@@ -44,6 +48,14 @@ export function main() {
       assertBinding(results[0], false);
     });
 
+    it('should not mark elements when ignoreBindings is true', () => {
+      var textNodeBindings = MapWrapper.create();
+      MapWrapper.set(textNodeBindings, 0, 'expr');
+      var results = createPipeline({textNodeBindings: textNodeBindings,
+        ignoreBindings: true}).process(el('<div></div>'));
+      assertBinding(results[0], false);
+    });
+
     it('should mark elements with text node bindings', () => {
       var textNodeBindings = MapWrapper.create();
       MapWrapper.set(textNodeBindings, 0, 'expr');
diff --git a/modules/angular2/test/core/compiler/pipeline/property_binding_parser_spec.js b/modules/angular2/test/core/compiler/pipeline/property_binding_parser_spec.js
index f51a0396b6..c57e72eb30 100644
--- a/modules/angular2/test/core/compiler/pipeline/property_binding_parser_spec.js
+++ b/modules/angular2/test/core/compiler/pipeline/property_binding_parser_spec.js
@@ -3,15 +3,24 @@ import {PropertyBindingParser} from 'angular2/src/core/compiler/pipeline/propert
 import {CompilePipeline} from 'angular2/src/core/compiler/pipeline/compile_pipeline';
 import {DOM} from 'angular2/src/facade/dom';
 import {MapWrapper} from 'angular2/src/facade/collection';
-
+import {CompileElement} from 'angular2/src/core/compiler/pipeline/compile_element';
+import {CompileStep} from 'angular2/src/core/compiler/pipeline/compile_step'
+import {CompileControl} from 'angular2/src/core/compiler/pipeline/compile_control';
 import {Lexer, Parser} from 'angular2/change_detection';
 
 export function main() {
   describe('PropertyBindingParser', () => {
-    function createPipeline() {
-      return new CompilePipeline([new PropertyBindingParser(new Parser(new Lexer()), null)]);
+    function createPipeline(ignoreBindings = false) {
+      return new CompilePipeline([
+        new MockStep((parent, current, control) => { current.ignoreBindings = ignoreBindings; }),
+        new PropertyBindingParser(new Parser(new Lexer()), null)]);
     }
 
+    it('should not parse bindings when ignoreBindings is true', () => {
+      var results = createPipeline(true).process(el('<div [a]="b"></div>'));
+      expect(results[0].propertyBindings).toBe(null);
+    });
+
     it('should detect [] syntax', () => {
       var results = createPipeline().process(el('<div [a]="b"></div>'));
       expect(MapWrapper.get(results[0].propertyBindings, 'a').source).toEqual('b');
@@ -69,3 +78,14 @@ export function main() {
     });
   });
 }
+
+class MockStep extends CompileStep {
+  processClosure:Function;
+  constructor(process) {
+    super();
+    this.processClosure = process;
+  }
+  process(parent:CompileElement, current:CompileElement, control:CompileControl) {
+    this.processClosure(parent, current, control);
+  }
+}
diff --git a/modules/angular2/test/core/compiler/pipeline/shadow_dom_transformer_spec.js b/modules/angular2/test/core/compiler/pipeline/shadow_dom_transformer_spec.js
new file mode 100644
index 0000000000..8eabb5ad93
--- /dev/null
+++ b/modules/angular2/test/core/compiler/pipeline/shadow_dom_transformer_spec.js
@@ -0,0 +1,128 @@
+import {describe, beforeEach, expect, it, iit, ddescribe, el} from 'angular2/test_lib';
+
+import {CompilePipeline} from 'angular2/src/core/compiler/pipeline/compile_pipeline';
+import {ShadowDomTransformer} from 'angular2/src/core/compiler/pipeline/shadow_dom_transformer';
+import {Component} from 'angular2/src/core/annotations/annotations';
+import {DirectiveMetadata} from 'angular2/src/core/compiler/directive_metadata';
+import {ShadowDomStrategy} from 'angular2/src/core/compiler/shadow_dom_strategy';
+import {shimCssText} from 'angular2/src/core/compiler/shadow_dom_emulation/shim_css';
+
+import {DOM} from 'angular2/src/facade/dom';
+import {MapWrapper} from 'angular2/src/facade/collection';
+
+export function main() {
+  describe('ShadowDomTransformer', () => {
+    function createPipeline(selector, strategy:ShadowDomStrategy, styleHost) {
+      var component = new Component({selector: selector});
+      var meta = new DirectiveMetadata(null, component, null);
+      var transformer = new ShadowDomTransformer(meta, strategy, styleHost);
+      transformer.clearCache();
+      return new CompilePipeline([transformer]);
+    }
+
+    it('it should set ignoreBindings to true for style elements', () => {
+      var host = DOM.createElement('div');
+      var pipeline = createPipeline('foo', new FakeStrategy(false, false), host);
+      var results = pipeline.process(el('<div><style></style></div>'));
+      expect(results[0].ignoreBindings).toBe(false);
+      expect(results[1].ignoreBindings).toBe(true);
+    });
+
+    describe('css', () => {
+      it('should not extract the styles when extractStyles() is false', () => {
+        var host = DOM.createElement('div');
+        var pipeline = createPipeline('foo', new FakeStrategy(false, false), host);
+        var template = el('<style>.s{}</style>');
+        pipeline.process(template);
+        expect(template).toHaveText('.s{}');
+      });
+
+      it('should move the styles to the host when extractStyles() is true', () => {
+        var host = DOM.createElement('div');
+        var pipeline = createPipeline('foo', new FakeStrategy(true, false), host);
+        var template = el('<div><style>.s{}</style></div>');
+        pipeline.process(template);
+        expect(template).toHaveText('');
+        expect(host).toHaveText('.s{}');
+      });
+
+      it('should preserve original content when moving styles', () => {
+        var host = el('<div>original content</div>');
+        var pipeline = createPipeline('foo', new FakeStrategy(true, false), host);
+        var template = el('<div><style>.s{}</style></div>');
+        pipeline.process(template);
+        expect(template).toHaveText('');
+        expect(host).toHaveText('.s{}original content');
+      });
+
+      it('should move the styles to the host in the original order', () => {
+        var host = DOM.createElement('div');
+        var pipeline = createPipeline('foo', new FakeStrategy(true, false), host);
+        var template = el('<div><style>.s1{}</style><style>.s2{}</style></div>');
+        pipeline.process(template);
+        expect(host).toHaveText('.s1{}.s2{}');
+      });
+
+      it('should shim the styles when shim() and extractStyles() are true', () => {
+        var host = DOM.createElement('div');
+        var pipeline = createPipeline('foo', new FakeStrategy(true, true), host);
+        var template = el('<div><style>.s1{}</style></div>');
+        pipeline.process(template);
+        expect(host).toHaveText(shimCssText('.s1{}', 'foo'));
+      });
+
+      it('should deduplicate styles before moving them when shim() is false', () => {
+        var host = DOM.createElement('div');
+        var pipeline = createPipeline('foo', new FakeStrategy(true, false), host);
+        var template = el('<div><style>.s1{}</style><style>.s1{}</style><style>.s1{}</style></div>');
+        pipeline.process(template);
+        expect(host).toHaveText('.s1{}');
+      });
+    });
+
+    describe('html', () => {
+      it('should add an attribute to all children when shim() is true', () => {
+        var host = DOM.createElement('div');
+        var pipeline = createPipeline('foo', new FakeStrategy(false, true), host);
+        var template = el('<div><span></span></div>');
+        pipeline.process(template);
+        expect(DOM.getOuterHTML(template)).toEqual('<div foo=""><span foo=""></span></div>')
+      });
+
+      it('should not modify the template when shim() is false', () => {
+        var host = DOM.createElement('div');
+        var pipeline = createPipeline('foo', new FakeStrategy(false, false), host);
+        var template = el('<div><span></span></div>');
+        pipeline.process(template);
+        expect(DOM.getOuterHTML(template)).toEqual('<div><span></span></div>')
+      });
+
+      it('should not throw with complex selectors', () => {
+        var host = DOM.createElement('div');
+        var pipeline = createPipeline('foo[bar]', new FakeStrategy(false, true), host);
+        var template = el('<div><span></span></div>');
+        expect(() => pipeline.process(template)).not.toThrow();
+      });
+
+    });
+  });
+}
+
+class FakeStrategy extends ShadowDomStrategy {
+  _extractStyles: boolean;
+  _shim: boolean;
+
+  constructor(extractStyles: boolean, shim: boolean) {
+    super();
+    this._extractStyles = extractStyles;
+    this._shim = shim;
+  }
+
+  extractStyles(): boolean {
+    return this._extractStyles;
+  }
+
+  shim(): boolean {
+    return this._shim;
+  }
+}
diff --git a/modules/angular2/test/core/compiler/pipeline/text_interpolation_parser_spec.js b/modules/angular2/test/core/compiler/pipeline/text_interpolation_parser_spec.js
index 7053f0cbdc..e460dc8a9d 100644
--- a/modules/angular2/test/core/compiler/pipeline/text_interpolation_parser_spec.js
+++ b/modules/angular2/test/core/compiler/pipeline/text_interpolation_parser_spec.js
@@ -3,19 +3,27 @@ import {TextInterpolationParser} from 'angular2/src/core/compiler/pipeline/text_
 import {CompilePipeline} from 'angular2/src/core/compiler/pipeline/compile_pipeline';
 import {DOM} from 'angular2/src/facade/dom';
 import {MapWrapper} from 'angular2/src/facade/collection';
-
 import {Lexer, Parser} from 'angular2/change_detection';
+import {CompileElement} from 'angular2/src/core/compiler/pipeline/compile_element';
+import {CompileStep} from 'angular2/src/core/compiler/pipeline/compile_step'
+import {CompileControl} from 'angular2/src/core/compiler/pipeline/compile_control';
 import {IgnoreChildrenStep} from './pipeline_spec';
 
 export function main() {
   describe('TextInterpolationParser', () => {
-    function createPipeline() {
+    function createPipeline(ignoreBindings = false) {
       return new CompilePipeline([
+        new MockStep((parent, current, control) => { current.ignoreBindings = ignoreBindings; }),
         new IgnoreChildrenStep(),
         new TextInterpolationParser(new Parser(new Lexer()), null)
       ]);
     }
 
+    it('should not look for text interpolation when ignoreBindings is true', () => {
+      var results = createPipeline(true).process(el('<div>{{expr1}}<span></span>{{expr2}}</div>'));
+      expect(results[0].textNodeBindings).toBe(null);
+    });
+
     it('should find text interpolation in normal elements', () => {
       var results = createPipeline().process(el('<div>{{expr1}}<span></span>{{expr2}}</div>'));
       var bindings = results[0].textNodeBindings;
@@ -55,3 +63,14 @@ export function main() {
     });
   });
 }
+
+class MockStep extends CompileStep {
+  processClosure:Function;
+  constructor(process) {
+    super();
+    this.processClosure = process;
+  }
+  process(parent:CompileElement, current:CompileElement, control:CompileControl) {
+    this.processClosure(parent, current, control);
+  }
+}
diff --git a/modules/angular2/test/core/compiler/shadow_dom_strategy_spec.js b/modules/angular2/test/core/compiler/shadow_dom_strategy_spec.js
deleted file mode 100644
index f6116a8afb..0000000000
--- a/modules/angular2/test/core/compiler/shadow_dom_strategy_spec.js
+++ /dev/null
@@ -1,62 +0,0 @@
-import {describe, xit, it, expect, beforeEach, ddescribe, iit, el} from 'angular2/test_lib';
-import {NativeShadowDomStrategy, EmulatedShadowDomStrategy} from 'angular2/src/core/compiler/shadow_dom_strategy';
-import {DOM} from 'angular2/src/facade/dom';
-import {Component} from 'angular2/src/core/annotations/annotations';
-import {DirectiveMetadata} from 'angular2/src/core/compiler/directive_metadata';
-
-export function main() {
-  describe('Shadow DOM strategy', () => {
-    var strategy,
-        component = new Component({selector: 'mycmp'}),
-        metadata = new DirectiveMetadata(null, component, null);
-
-    describe('Native', () => {
-      beforeEach(() => {
-        strategy = new NativeShadowDomStrategy();
-      });
-
-      it('should leave the styles in the template', () => {
-        var tpl = DOM.createTemplate('<style>.s1{}</style><div>content</div>');
-        strategy.processTemplate(tpl, metadata);
-        expect(tpl.content).toHaveText('.s1{}content');
-      });
-
-      it('should not modify the content of the template', () => {
-        var html = '<p>content<span></span></p>';
-        var tpl = DOM.createTemplate(html);
-        strategy.processTemplate(tpl, metadata);
-        expect(DOM.getInnerHTML(tpl)).toEqual(html);
-      });
-    });
-
-    describe('Emulated', () => {
-      var root;
-      beforeEach(() => {
-        root = el('<div>');
-        strategy = new EmulatedShadowDomStrategy(root);
-      });
-
-      it('should move the styles from the template to the root', () => {
-        var tpl = DOM.createTemplate('<style>.s1{}</style><div>content</div><style>.s2{}</style>');
-        strategy.processTemplate(tpl, metadata);
-        expect(root).toHaveText('.s1[mycmp] {}.s2[mycmp] {}');
-        expect(tpl.content).toHaveText('content');
-      });
-
-      it('should insert the styles as the first children of the host', () => {
-        DOM.setInnerHTML(root, '<p>root content</p>')
-        var tpl = DOM.createTemplate('<style>.s1{}</style><style>.s2{}</style>');
-        strategy.processTemplate(tpl, metadata);
-        expect(root).toHaveText('.s1[mycmp] {}.s2[mycmp] {}root content');
-      });
-
-      it('should add the component selector to all template children', () => {
-        var html = '<p>content<span></span></p>';
-        var processedHtml = '<p mycmp="">content<span mycmp=""></span></p>';
-        var tpl = DOM.createTemplate(html);
-        strategy.processTemplate(tpl, metadata);
-        expect(DOM.getInnerHTML(tpl)).toEqual(processedHtml);
-      });
-    });
-  });
-}