diff --git a/modules/@angular/compiler/src/template_parser.ts b/modules/@angular/compiler/src/template_parser.ts
index ca2817e8d5..92663ae8b6 100644
--- a/modules/@angular/compiler/src/template_parser.ts
+++ b/modules/@angular/compiler/src/template_parser.ts
@@ -414,7 +414,9 @@ class TemplateParseVisitor implements HtmlAstVisitor {
       templateBindingsSource = attr.value;
     } else if (attr.name.startsWith(TEMPLATE_ATTR_PREFIX)) {
       var key = attr.name.substring(TEMPLATE_ATTR_PREFIX.length);  // remove the star
-      templateBindingsSource = (attr.value.length == 0) ? key : key + ' ' + attr.value;
+      templateBindingsSource = (attr.value.length == 0) ?
+                                   key :
+                                   key + ' ' + StringWrapper.replaceAll(attr.value, /:/g, ' ');
     }
     if (isPresent(templateBindingsSource)) {
       var bindings = this._parseTemplateBindings(templateBindingsSource, attr.sourceSpan);
diff --git a/modules/@angular/compiler/test/template_parser_spec.ts b/modules/@angular/compiler/test/template_parser_spec.ts
index b0d5144b61..ee993a3e62 100644
--- a/modules/@angular/compiler/test/template_parser_spec.ts
+++ b/modules/@angular/compiler/test/template_parser_spec.ts
@@ -460,7 +460,7 @@ export function main() {
         it('should support optional directive properties', () => {
           var dirA = CompileDirectiveMetadata.create({
             selector: 'div',
-            type: new CompileTypeMetadata({moduleUrl: someModuleUrl, name: 'DirA'}),
+            type: new CompileTypeMetadata({moduleUrl: someModuleUrl, name: 'Dir'}),
             inputs: ['a']
           });
           expect(humanizeTplAst(parse('<div></div>', [dirA])))
@@ -1009,6 +1009,18 @@ There is no directive with "exportAs" set to "dirA" ("<div [ERROR ->]#a="dirA"><
                 [ElementAst, 'div']
               ]);
         });
+
+        it('should work with *... and :', () => {
+          var dirA = CompileDirectiveMetadata.create(
+              {selector: '[a]', type: new CompileTypeMetadata({name: 'DirA'}), inputs: ['a', 'b']});
+          expect(humanizeTplAst(parse('<div *a="b: foo">', [dirA])))
+              .toEqual([
+                [EmbeddedTemplateAst],
+                [DirectiveAst, dirA],
+                [BoundDirectivePropertyAst, 'a', 'b'],
+                [ElementAst, 'div']
+              ]);
+        });
       });
     });