diff --git a/modules/angular2/docs/cheatsheet/built-in-directives.md b/modules/angular2/docs/cheatsheet/built-in-directives.md
index a908f79c34..68b8941c4e 100644
--- a/modules/angular2/docs/cheatsheet/built-in-directives.md
+++ b/modules/angular2/docs/cheatsheet/built-in-directives.md
@@ -14,7 +14,7 @@ Removes or recreates a portion of the DOM tree based on the showSection expressi
 
 @cheatsheetItem
 syntax:
-`<li *ngFor="#item of list">`|`*ngFor`
+`<li *ngFor="let item of list">`|`*ngFor`
 description:
 Turns the li element and its contents into a template, and uses that to instantiate a view for each item in list.
 
diff --git a/modules/angular2/docs/core/01_templates.md b/modules/angular2/docs/core/01_templates.md
index c308419eab..121d62d155 100644
--- a/modules/angular2/docs/core/01_templates.md
+++ b/modules/angular2/docs/core/01_templates.md
@@ -433,7 +433,7 @@ Finally, we can move the `ngFor` keyword to the left hand side and prefix it wit
 
 ```
 <ul>
-  <li *ngFor="var person of people; var i=index">{{i}}. {{person}}<li>
+  <li *ngFor="let  person of people; var i=index">{{i}}. {{person}}<li>
 </ul>
 ```
 
diff --git a/modules/angular2/docs/core/10_view.md b/modules/angular2/docs/core/10_view.md
index 888a484287..613fa283eb 100644
--- a/modules/angular2/docs/core/10_view.md
+++ b/modules/angular2/docs/core/10_view.md
@@ -94,7 +94,7 @@ Let's start with a View such as:
 
 ```
 <ul>
-  <li template="ngFor: #person of people">{{person}}</li>
+  <li template="ngFor: let person of people">{{person}}</li>
 </ul>
 ```
 
diff --git a/modules/angular2/examples/core/pipes/ts/slice_pipe/slice_pipe_example.ts b/modules/angular2/examples/core/pipes/ts/slice_pipe/slice_pipe_example.ts
index 325cf6ab61..d796c3d89f 100644
--- a/modules/angular2/examples/core/pipes/ts/slice_pipe/slice_pipe_example.ts
+++ b/modules/angular2/examples/core/pipes/ts/slice_pipe/slice_pipe_example.ts
@@ -22,7 +22,7 @@ export class SlicePipeStringExample {
 @Component({
   selector: 'slice-list-example',
   template: `<div>
-    <li *ngFor="var i of collection | slice:1:3">{{i}}</li>
+    <li *ngFor="let  i of collection | slice:1:3">{{i}}</li>
   </div>`
 })
 export class SlicePipeListExample {
diff --git a/modules/angular2/examples/router/ts/on_deactivate/on_deactivate_example.ts b/modules/angular2/examples/router/ts/on_deactivate/on_deactivate_example.ts
index a3875b7879..bdf26a5b5c 100644
--- a/modules/angular2/examples/router/ts/on_deactivate/on_deactivate_example.ts
+++ b/modules/angular2/examples/router/ts/on_deactivate/on_deactivate_example.ts
@@ -36,7 +36,7 @@ class MyCmp implements OnDeactivate {
     <router-outlet></router-outlet>
     <div id="log">
       <h2>Log:</h2>
-      <p *ngFor="#logItem of logService.logs">{{ logItem }}</p>
+      <p *ngFor="let logItem of logService.logs">{{ logItem }}</p>
     </div>
   `,
   directives: [ROUTER_DIRECTIVES]
diff --git a/modules/angular2/http.ts b/modules/angular2/http.ts
index 9b003f2fca..1776a4a6d8 100644
--- a/modules/angular2/http.ts
+++ b/modules/angular2/http.ts
@@ -56,7 +56,7 @@ export {URLSearchParams} from './src/http/url_search_params';
  *     <div>
  *       <h1>People</h1>
  *       <ul>
- *         <li *ngFor="#person of people">
+ *         <li *ngFor="let person of people">
  *           {{person.name}}
  *         </li>
  *       </ul>
@@ -194,7 +194,7 @@ export const HTTP_BINDINGS = HTTP_PROVIDERS;
  *     <div>
  *       <h1>People</h1>
  *       <ul>
- *         <li *ngFor="#person of people">
+ *         <li *ngFor="let person of people">
  *           {{person.name}}
  *         </li>
  *       </ul>
diff --git a/modules/angular2/src/common/directives/ng_for.ts b/modules/angular2/src/common/directives/ng_for.ts
index 11694b584d..2212c57473 100644
--- a/modules/angular2/src/common/directives/ng_for.ts
+++ b/modules/angular2/src/common/directives/ng_for.ts
@@ -58,7 +58,7 @@ import {BaseException} from "../../facade/exceptions";
  *
  * ### Syntax
  *
- * - `<li *ngFor="#item of items; #i = index">...</li>`
+ * - `<li *ngFor="let item of items; #i = index">...</li>`
  * - `<li template="ngFor #item of items; #i = index">...</li>`
  * - `<template ngFor #item [ngForOf]="items" #i="index"><li>...</li></template>`
  *
diff --git a/modules/angular2/src/common/forms/directives/select_control_value_accessor.ts b/modules/angular2/src/common/forms/directives/select_control_value_accessor.ts
index 408b5a6be4..408b336454 100644
--- a/modules/angular2/src/common/forms/directives/select_control_value_accessor.ts
+++ b/modules/angular2/src/common/forms/directives/select_control_value_accessor.ts
@@ -96,7 +96,7 @@ export class SelectControlValueAccessor implements ControlValueAccessor {
  *
  * ```
  * <select ngControl="city">
- *   <option *ngFor="#c of cities" [value]="c"></option>
+ *   <option *ngFor="let c of cities" [value]="c"></option>
  * </select>
  * ```
  */
diff --git a/modules/angular2/src/compiler/expression_parser/lexer.ts b/modules/angular2/src/compiler/expression_parser/lexer.ts
index 790b48455e..a15dab113c 100644
--- a/modules/angular2/src/compiler/expression_parser/lexer.ts
+++ b/modules/angular2/src/compiler/expression_parser/lexer.ts
@@ -46,7 +46,11 @@ export class Token {
 
   isKeyword(): boolean { return (this.type == TokenType.Keyword); }
 
-  isKeywordVar(): boolean { return (this.type == TokenType.Keyword && this.strValue == "var"); }
+  isKeywordDeprecatedVar(): boolean {
+    return (this.type == TokenType.Keyword && this.strValue == "var");
+  }
+
+  isKeywordLet(): boolean { return (this.type == TokenType.Keyword && this.strValue == "let"); }
 
   isKeywordNull(): boolean { return (this.type == TokenType.Keyword && this.strValue == "null"); }
 
@@ -464,4 +468,4 @@ var OPERATORS = SetWrapper.createFromList([
 
 
 var KEYWORDS =
-    SetWrapper.createFromList(['var', 'null', 'undefined', 'true', 'false', 'if', 'else']);
+    SetWrapper.createFromList(['var', 'let', 'null', 'undefined', 'true', 'false', 'if', 'else']);
diff --git a/modules/angular2/src/compiler/expression_parser/parser.ts b/modules/angular2/src/compiler/expression_parser/parser.ts
index cff564e814..4ff6ff1f6f 100644
--- a/modules/angular2/src/compiler/expression_parser/parser.ts
+++ b/modules/angular2/src/compiler/expression_parser/parser.ts
@@ -62,6 +62,10 @@ export class SplitInterpolation {
   constructor(public strings: string[], public expressions: string[]) {}
 }
 
+export class TemplateBindingParseResult {
+  constructor(public templateBindings: TemplateBinding[], public warnings: string[]) {}
+}
+
 @Injectable()
 export class Parser {
   constructor(/** @internal */
@@ -112,7 +116,7 @@ export class Parser {
     return new Quote(prefix, uninterpretedExpression, location);
   }
 
-  parseTemplateBindings(input: string, location: any): TemplateBinding[] {
+  parseTemplateBindings(input: string, location: any): TemplateBindingParseResult {
     var tokens = this._lexer.tokenize(input);
     return new _ParseAST(input, location, tokens, false).parseTemplateBindings();
   }
@@ -228,16 +232,11 @@ export class _ParseAST {
     }
   }
 
-  optionalKeywordVar(): boolean {
-    if (this.peekKeywordVar()) {
-      this.advance();
-      return true;
-    } else {
-      return false;
-    }
-  }
+  peekKeywordLet(): boolean { return this.next.isKeywordLet(); }
 
-  peekKeywordVar(): boolean { return this.next.isKeywordVar() || this.next.isOperator('#'); }
+  peekDeprecatedKeywordVar(): boolean { return this.next.isKeywordDeprecatedVar(); }
+
+  peekDeprecatedOperatorHash(): boolean { return this.next.isOperator('#'); }
 
   expectCharacter(code: number) {
     if (this.optionalCharacter(code)) return;
@@ -617,11 +616,23 @@ export class _ParseAST {
     return result.toString();
   }
 
-  parseTemplateBindings(): any[] {
-    var bindings = [];
+  parseTemplateBindings(): TemplateBindingParseResult {
+    var bindings: TemplateBinding[] = [];
     var prefix = null;
+    var warnings: string[] = [];
     while (this.index < this.tokens.length) {
-      var keyIsVar: boolean = this.optionalKeywordVar();
+      var keyIsVar: boolean = this.peekKeywordLet();
+      if (!keyIsVar && this.peekDeprecatedKeywordVar()) {
+        keyIsVar = true;
+        warnings.push(`"var" inside of expressions is deprecated. Use "let" instead!`);
+      }
+      if (!keyIsVar && this.peekDeprecatedOperatorHash()) {
+        keyIsVar = true;
+        warnings.push(`"#" inside of expressions is deprecated. Use "let" instead!`);
+      }
+      if (keyIsVar) {
+        this.advance();
+      }
       var key = this.expectTemplateBindingKey();
       if (!keyIsVar) {
         if (prefix == null) {
@@ -639,7 +650,8 @@ export class _ParseAST {
         } else {
           name = '\$implicit';
         }
-      } else if (this.next !== EOF && !this.peekKeywordVar()) {
+      } else if (this.next !== EOF && !this.peekKeywordLet() && !this.peekDeprecatedKeywordVar() &&
+                 !this.peekDeprecatedOperatorHash()) {
         var start = this.inputIndex;
         var ast = this.parsePipe();
         var source = this.input.substring(start, this.inputIndex);
@@ -650,7 +662,7 @@ export class _ParseAST {
         this.optionalCharacter($COMMA);
       }
     }
-    return bindings;
+    return new TemplateBindingParseResult(bindings, warnings);
   }
 
   error(message: string, index: number = null) {
diff --git a/modules/angular2/src/compiler/parse_util.ts b/modules/angular2/src/compiler/parse_util.ts
index a1070f2e68..f842d3c36c 100644
--- a/modules/angular2/src/compiler/parse_util.ts
+++ b/modules/angular2/src/compiler/parse_util.ts
@@ -17,8 +17,14 @@ export class ParseSourceSpan {
   }
 }
 
+export enum ParseErrorLevel {
+  WARNING,
+  FATAL
+}
+
 export abstract class ParseError {
-  constructor(public span: ParseSourceSpan, public msg: string) {}
+  constructor(public span: ParseSourceSpan, public msg: string,
+              public level: ParseErrorLevel = ParseErrorLevel.FATAL) {}
 
   toString(): string {
     var source = this.span.start.file.content;
diff --git a/modules/angular2/src/compiler/provider_parser.ts b/modules/angular2/src/compiler/provider_parser.ts
index ff618cc07d..a32e1259f7 100644
--- a/modules/angular2/src/compiler/provider_parser.ts
+++ b/modules/angular2/src/compiler/provider_parser.ts
@@ -6,7 +6,7 @@ import {
   NgContentAst,
   EmbeddedTemplateAst,
   ElementAst,
-  VariableAst,
+  ReferenceAst,
   BoundEventAst,
   BoundElementPropertyAst,
   AttrAst,
@@ -69,7 +69,7 @@ export class ProviderElementContext {
 
   constructor(private _viewContext: ProviderViewContext, private _parent: ProviderElementContext,
               private _isViewRoot: boolean, private _directiveAsts: DirectiveAst[],
-              attrs: AttrAst[], vars: VariableAst[], private _sourceSpan: ParseSourceSpan) {
+              attrs: AttrAst[], refs: ReferenceAst[], private _sourceSpan: ParseSourceSpan) {
     this._attrs = {};
     attrs.forEach((attrAst) => this._attrs[attrAst.name] = attrAst.value);
     var directivesMeta = _directiveAsts.map(directiveAst => directiveAst.directive);
@@ -79,9 +79,8 @@ export class ProviderElementContext {
     var queriedTokens = new CompileTokenMap<boolean>();
     this._allProviders.values().forEach(
         (provider) => { this._addQueryReadsTo(provider.token, queriedTokens); });
-    vars.forEach((varAst) => {
-      var varToken = new CompileTokenMetadata({value: varAst.name});
-      this._addQueryReadsTo(varToken, queriedTokens);
+    refs.forEach((refAst) => {
+      this._addQueryReadsTo(new CompileTokenMetadata({value: refAst.name}), queriedTokens);
     });
     if (isPresent(queriedTokens.get(identifierToken(Identifiers.ViewContainerRef)))) {
       this._hasViewContainer = true;
diff --git a/modules/angular2/src/compiler/runtime_compiler.ts b/modules/angular2/src/compiler/runtime_compiler.ts
index d7c98f3060..706d961ab8 100644
--- a/modules/angular2/src/compiler/runtime_compiler.ts
+++ b/modules/angular2/src/compiler/runtime_compiler.ts
@@ -30,7 +30,6 @@ import {
   NgContentAst,
   EmbeddedTemplateAst,
   ElementAst,
-  VariableAst,
   BoundEventAst,
   BoundElementPropertyAst,
   AttrAst,
diff --git a/modules/angular2/src/compiler/template_ast.ts b/modules/angular2/src/compiler/template_ast.ts
index f328131649..a0c00ecf8e 100644
--- a/modules/angular2/src/compiler/template_ast.ts
+++ b/modules/angular2/src/compiler/template_ast.ts
@@ -82,7 +82,18 @@ export class BoundEventAst implements TemplateAst {
 }
 
 /**
- * A variable declaration on an element (e.g. `#var="expression"`).
+ * A reference declaration on an element (e.g. `let someName="expression"`).
+ */
+export class ReferenceAst implements TemplateAst {
+  constructor(public name: string, public value: CompileTokenMetadata,
+              public sourceSpan: ParseSourceSpan) {}
+  visit(visitor: TemplateAstVisitor, context: any): any {
+    return visitor.visitReference(this, context);
+  }
+}
+
+/**
+ * A variable declaration on a <template> (e.g. `var-someName="someLocalName"`).
  */
 export class VariableAst implements TemplateAst {
   constructor(public name: string, public value: string, public sourceSpan: ParseSourceSpan) {}
@@ -97,7 +108,7 @@ export class VariableAst implements TemplateAst {
 export class ElementAst implements TemplateAst {
   constructor(public name: string, public attrs: AttrAst[],
               public inputs: BoundElementPropertyAst[], public outputs: BoundEventAst[],
-              public exportAsVars: VariableAst[], public directives: DirectiveAst[],
+              public references: ReferenceAst[], public directives: DirectiveAst[],
               public providers: ProviderAst[], public hasViewContainer: boolean,
               public children: TemplateAst[], public ngContentIndex: number,
               public sourceSpan: ParseSourceSpan) {}
@@ -106,14 +117,6 @@ export class ElementAst implements TemplateAst {
     return visitor.visitElement(this, context);
   }
 
-  /**
-   * Whether the element has any active bindings (inputs, outputs, vars, or directives).
-   */
-  isBound(): boolean {
-    return (this.inputs.length > 0 || this.outputs.length > 0 || this.exportAsVars.length > 0 ||
-            this.directives.length > 0);
-  }
-
   /**
    * Get the component associated with this element, if any.
    */
@@ -132,7 +135,8 @@ export class ElementAst implements TemplateAst {
  * A `<template>` element included in an Angular template.
  */
 export class EmbeddedTemplateAst implements TemplateAst {
-  constructor(public attrs: AttrAst[], public outputs: BoundEventAst[], public vars: VariableAst[],
+  constructor(public attrs: AttrAst[], public outputs: BoundEventAst[],
+              public references: ReferenceAst[], public variables: VariableAst[],
               public directives: DirectiveAst[], public providers: ProviderAst[],
               public hasViewContainer: boolean, public children: TemplateAst[],
               public ngContentIndex: number, public sourceSpan: ParseSourceSpan) {}
@@ -160,7 +164,7 @@ export class DirectiveAst implements TemplateAst {
   constructor(public directive: CompileDirectiveMetadata,
               public inputs: BoundDirectivePropertyAst[],
               public hostProperties: BoundElementPropertyAst[], public hostEvents: BoundEventAst[],
-              public exportAsVars: VariableAst[], public sourceSpan: ParseSourceSpan) {}
+              public sourceSpan: ParseSourceSpan) {}
   visit(visitor: TemplateAstVisitor, context: any): any {
     return visitor.visitDirective(this, context);
   }
@@ -232,6 +236,7 @@ export interface TemplateAstVisitor {
   visitNgContent(ast: NgContentAst, context: any): any;
   visitEmbeddedTemplate(ast: EmbeddedTemplateAst, context: any): any;
   visitElement(ast: ElementAst, context: any): any;
+  visitReference(ast: ReferenceAst, context: any): any;
   visitVariable(ast: VariableAst, context: any): any;
   visitEvent(ast: BoundEventAst, context: any): any;
   visitElementProperty(ast: BoundElementPropertyAst, context: any): any;
diff --git a/modules/angular2/src/compiler/template_parser.ts b/modules/angular2/src/compiler/template_parser.ts
index acf8842cc8..69c9035c23 100644
--- a/modules/angular2/src/compiler/template_parser.ts
+++ b/modules/angular2/src/compiler/template_parser.ts
@@ -13,6 +13,7 @@ import {
   isArray
 } from 'angular2/src/facade/lang';
 import {Injectable, Inject, OpaqueToken, Optional} from 'angular2/core';
+import {Console} from 'angular2/src/core/console';
 import {BaseException} from 'angular2/src/facade/exceptions';
 import {
   AST,
@@ -34,14 +35,14 @@ import {
 } from './compile_metadata';
 import {HtmlParser} from './html_parser';
 import {splitNsName, mergeNsAndName} from './html_tags';
-import {ParseSourceSpan, ParseError, ParseLocation} from './parse_util';
+import {ParseSourceSpan, ParseError, ParseLocation, ParseErrorLevel} from './parse_util';
 import {MAX_INTERPOLATION_VALUES} from 'angular2/src/core/linker/view_utils';
 
 import {
   ElementAst,
   BoundElementPropertyAst,
   BoundEventAst,
-  VariableAst,
+  ReferenceAst,
   TemplateAst,
   TemplateAstVisitor,
   templateVisitAll,
@@ -54,7 +55,8 @@ import {
   DirectiveAst,
   BoundDirectivePropertyAst,
   ProviderAst,
-  ProviderAstType
+  ProviderAstType,
+  VariableAst
 } from './template_ast';
 import {CssSelector, SelectorMatcher} from 'angular2/src/compiler/selector';
 
@@ -76,19 +78,22 @@ import {
 } from './html_ast';
 
 import {splitAtColon} from './util';
+import {identifierToken, Identifiers} from './identifiers';
 
 import {ProviderElementContext, ProviderViewContext} from './provider_parser';
 
 // Group 1 = "bind-"
-// Group 2 = "var-" or "#"
-// Group 3 = "on-"
-// Group 4 = "bindon-"
-// Group 5 = the identifier after "bind-", "var-/#", or "on-"
-// Group 6 = identifier inside [()]
-// Group 7 = identifier inside []
-// Group 8 = identifier inside ()
+// Group 2 = "var-"
+// Group 3 = "let-"
+// Group 4 = "ref-/#"
+// Group 5 = "on-"
+// Group 6 = "bindon-"
+// Group 7 = the identifier after "bind-", "var-/#", or "on-"
+// Group 8 = identifier inside [()]
+// Group 9 = identifier inside []
+// Group 10 = identifier inside ()
 var BIND_NAME_REGEXP =
-    /^(?:(?:(?:(bind-)|(var-|#)|(on-)|(bindon-))(.+))|\[\(([^\)]+)\)\]|\[([^\]]+)\]|\(([^\)]+)\))$/g;
+    /^(?:(?:(?:(bind-)|(var-)|(let-)|(ref-|#)|(on-)|(bindon-))(.+))|\[\(([^\)]+)\)\]|\[([^\]]+)\]|\(([^\)]+)\))$/g;
 
 const TEMPLATE_ELEMENT = 'template';
 const TEMPLATE_ATTR = 'template';
@@ -112,7 +117,9 @@ var TEXT_CSS_SELECTOR = CssSelector.parse('*')[0];
 export const TEMPLATE_TRANSFORMS = CONST_EXPR(new OpaqueToken('TemplateTransforms'));
 
 export class TemplateParseError extends ParseError {
-  constructor(message: string, span: ParseSourceSpan) { super(span, message); }
+  constructor(message: string, span: ParseSourceSpan, level: ParseErrorLevel) {
+    super(span, message, level);
+  }
 }
 
 export class TemplateParseResult {
@@ -122,15 +129,20 @@ export class TemplateParseResult {
 @Injectable()
 export class TemplateParser {
   constructor(private _exprParser: Parser, private _schemaRegistry: ElementSchemaRegistry,
-              private _htmlParser: HtmlParser,
+              private _htmlParser: HtmlParser, private _console: Console,
               @Optional() @Inject(TEMPLATE_TRANSFORMS) public transforms: TemplateAstVisitor[]) {}
 
   parse(component: CompileDirectiveMetadata, template: string,
         directives: CompileDirectiveMetadata[], pipes: CompilePipeMetadata[],
         templateUrl: string): TemplateAst[] {
     var result = this.tryParse(component, template, directives, pipes, templateUrl);
-    if (isPresent(result.errors)) {
-      var errorString = result.errors.join('\n');
+    var warnings = result.errors.filter(error => error.level === ParseErrorLevel.WARNING);
+    var errors = result.errors.filter(error => error.level === ParseErrorLevel.FATAL);
+    if (warnings.length > 0) {
+      this._console.warn(`Template parse warnings:\n${warnings.join('\n')}`);
+    }
+    if (errors.length > 0) {
+      var errorString = errors.join('\n');
       throw new BaseException(`Template parse errors:\n${errorString}`);
     }
     return result.templateAst;
@@ -162,7 +174,7 @@ export class TemplateParser {
       this.transforms.forEach(
           (transform: TemplateAstVisitor) => { result = templateVisitAll(transform, result); });
     }
-    return new TemplateParseResult(result);
+    return new TemplateParseResult(result, errors);
   }
 }
 
@@ -187,8 +199,9 @@ class TemplateParseVisitor implements HtmlAstVisitor {
     pipes.forEach(pipe => this.pipesByName.set(pipe.name, pipe));
   }
 
-  private _reportError(message: string, sourceSpan: ParseSourceSpan) {
-    this.errors.push(new TemplateParseError(message, sourceSpan));
+  private _reportError(message: string, sourceSpan: ParseSourceSpan,
+                       level: ParseErrorLevel = ParseErrorLevel.FATAL) {
+    this.errors.push(new TemplateParseError(message, sourceSpan, level));
   }
 
   private _parseInterpolation(value: string, sourceSpan: ParseSourceSpan): ASTWithSource {
@@ -235,13 +248,15 @@ class TemplateParseVisitor implements HtmlAstVisitor {
   private _parseTemplateBindings(value: string, sourceSpan: ParseSourceSpan): TemplateBinding[] {
     var sourceInfo = sourceSpan.start.toString();
     try {
-      var bindings = this._exprParser.parseTemplateBindings(value, sourceInfo);
-      bindings.forEach((binding) => {
+      var bindingsResult = this._exprParser.parseTemplateBindings(value, sourceInfo);
+      bindingsResult.templateBindings.forEach((binding) => {
         if (isPresent(binding.expression)) {
           this._checkPipes(binding.expression, sourceSpan);
         }
       });
-      return bindings;
+      bindingsResult.warnings.forEach(
+          (warning) => { this._reportError(warning, sourceSpan, ParseErrorLevel.WARNING); });
+      return bindingsResult.templateBindings;
     } catch (e) {
       this._reportError(`${e}`, sourceSpan);
       return [];
@@ -299,19 +314,25 @@ class TemplateParseVisitor implements HtmlAstVisitor {
 
     var matchableAttrs: string[][] = [];
     var elementOrDirectiveProps: BoundElementOrDirectiveProperty[] = [];
-    var vars: VariableAst[] = [];
+    var elementOrDirectiveRefs: ElementOrDirectiveRef[] = [];
+    var elementVars: VariableAst[] = [];
     var events: BoundEventAst[] = [];
 
     var templateElementOrDirectiveProps: BoundElementOrDirectiveProperty[] = [];
-    var templateVars: VariableAst[] = [];
     var templateMatchableAttrs: string[][] = [];
+    var templateElementVars: VariableAst[] = [];
+
     var hasInlineTemplates = false;
     var attrs = [];
+    var lcElName = splitNsName(nodeName.toLowerCase())[1];
+    var isTemplateElement = lcElName == TEMPLATE_ELEMENT;
 
     element.attrs.forEach(attr => {
-      var hasBinding = this._parseAttr(attr, matchableAttrs, elementOrDirectiveProps, events, vars);
+      var hasBinding =
+          this._parseAttr(isTemplateElement, attr, matchableAttrs, elementOrDirectiveProps, events,
+                          elementOrDirectiveRefs, elementVars);
       var hasTemplateBinding = this._parseInlineTemplateBinding(
-          attr, templateMatchableAttrs, templateElementOrDirectiveProps, templateVars);
+          attr, templateMatchableAttrs, templateElementOrDirectiveProps, templateElementVars);
       if (!hasBinding && !hasTemplateBinding) {
         // don't include the bindings as attributes as well in the AST
         attrs.push(this.visitAttr(attr, null));
@@ -322,19 +343,18 @@ class TemplateParseVisitor implements HtmlAstVisitor {
       }
     });
 
-    var lcElName = splitNsName(nodeName.toLowerCase())[1];
-    var isTemplateElement = lcElName == TEMPLATE_ELEMENT;
     var elementCssSelector = createElementCssSelector(nodeName, matchableAttrs);
     var directiveMetas = this._parseDirectives(this.selectorMatcher, elementCssSelector);
-    var directiveAsts =
-        this._createDirectiveAsts(element.name, directiveMetas, elementOrDirectiveProps,
-                                  isTemplateElement ? [] : vars, element.sourceSpan);
+    var references: ReferenceAst[] = [];
+    var directiveAsts = this._createDirectiveAsts(isTemplateElement, element.name, directiveMetas,
+                                                  elementOrDirectiveProps, elementOrDirectiveRefs,
+                                                  element.sourceSpan, references);
     var elementProps: BoundElementPropertyAst[] =
         this._createElementPropertyAsts(element.name, elementOrDirectiveProps, directiveAsts);
     var isViewRoot = parent.isTemplateElement || hasInlineTemplates;
     var providerContext =
         new ProviderElementContext(this.providerViewContext, parent.providerContext, isViewRoot,
-                                   directiveAsts, attrs, vars, element.sourceSpan);
+                                   directiveAsts, attrs, references, element.sourceSpan);
     var children = htmlVisitAll(
         preparsedElement.nonBindable ? NON_BINDABLE_VISITOR : this, element.children,
         ElementContext.create(isTemplateElement, directiveAsts,
@@ -362,17 +382,15 @@ class TemplateParseVisitor implements HtmlAstVisitor {
                                                            element.sourceSpan);
 
       parsedElement = new EmbeddedTemplateAst(
-          attrs, events, vars, providerContext.transformedDirectiveAsts,
+          attrs, events, references, elementVars, providerContext.transformedDirectiveAsts,
           providerContext.transformProviders, providerContext.transformedHasViewContainer, children,
           hasInlineTemplates ? null : ngContentIndex, element.sourceSpan);
     } else {
       this._assertOnlyOneComponent(directiveAsts, element.sourceSpan);
-      var elementExportAsVars = vars.filter(varAst => varAst.value.length === 0);
       let ngContentIndex =
           hasInlineTemplates ? null : parent.findNgContentIndex(projectionSelector);
-
       parsedElement = new ElementAst(
-          nodeName, attrs, elementProps, events, elementExportAsVars,
+          nodeName, attrs, elementProps, events, references,
           providerContext.transformedDirectiveAsts, providerContext.transformProviders,
           providerContext.transformedHasViewContainer, children,
           hasInlineTemplates ? null : ngContentIndex, element.sourceSpan);
@@ -381,18 +399,18 @@ class TemplateParseVisitor implements HtmlAstVisitor {
       var templateCssSelector = createElementCssSelector(TEMPLATE_ELEMENT, templateMatchableAttrs);
       var templateDirectiveMetas = this._parseDirectives(this.selectorMatcher, templateCssSelector);
       var templateDirectiveAsts =
-          this._createDirectiveAsts(element.name, templateDirectiveMetas,
-                                    templateElementOrDirectiveProps, [], element.sourceSpan);
+          this._createDirectiveAsts(true, element.name, templateDirectiveMetas,
+                                    templateElementOrDirectiveProps, [], element.sourceSpan, []);
       var templateElementProps: BoundElementPropertyAst[] = this._createElementPropertyAsts(
           element.name, templateElementOrDirectiveProps, templateDirectiveAsts);
       this._assertNoComponentsNorElementBindingsOnTemplate(
           templateDirectiveAsts, templateElementProps, element.sourceSpan);
       var templateProviderContext = new ProviderElementContext(
           this.providerViewContext, parent.providerContext, parent.isTemplateElement,
-          templateDirectiveAsts, [], templateVars, element.sourceSpan);
+          templateDirectiveAsts, [], [], element.sourceSpan);
       templateProviderContext.afterElement();
 
-      parsedElement = new EmbeddedTemplateAst([], [], templateVars,
+      parsedElement = new EmbeddedTemplateAst([], [], [], templateElementVars,
                                               templateProviderContext.transformedDirectiveAsts,
                                               templateProviderContext.transformProviders,
                                               templateProviderContext.transformedHasViewContainer,
@@ -417,7 +435,6 @@ class TemplateParseVisitor implements HtmlAstVisitor {
         var binding = bindings[i];
         if (binding.keyIsVar) {
           targetVars.push(new VariableAst(binding.key, binding.name, attr.sourceSpan));
-          targetMatchableAttrs.push([binding.key, binding.name]);
         } else if (isPresent(binding.expression)) {
           this._parsePropertyAst(binding.key, binding.expression, attr.sourceSpan,
                                  targetMatchableAttrs, targetProps);
@@ -431,9 +448,10 @@ class TemplateParseVisitor implements HtmlAstVisitor {
     return false;
   }
 
-  private _parseAttr(attr: HtmlAttrAst, targetMatchableAttrs: string[][],
+  private _parseAttr(isTemplateElement: boolean, attr: HtmlAttrAst,
+                     targetMatchableAttrs: string[][],
                      targetProps: BoundElementOrDirectiveProperty[], targetEvents: BoundEventAst[],
-                     targetVars: VariableAst[]): boolean {
+                     targetRefs: ElementOrDirectiveRef[], targetVars: VariableAst[]): boolean {
     var attrName = this._normalizeAttributeName(attr.name);
     var attrValue = attr.value;
     var bindParts = RegExpWrapper.firstMatch(BIND_NAME_REGEXP, attrName);
@@ -441,36 +459,55 @@ class TemplateParseVisitor implements HtmlAstVisitor {
     if (isPresent(bindParts)) {
       hasBinding = true;
       if (isPresent(bindParts[1])) {  // match: bind-prop
-        this._parseProperty(bindParts[5], attrValue, attr.sourceSpan, targetMatchableAttrs,
-                            targetProps);
-
-      } else if (isPresent(
-                     bindParts[2])) {  // match: var-name / var-name="iden" / #name / #name="iden"
-        var identifier = bindParts[5];
-        this._parseVariable(identifier, attrValue, attr.sourceSpan, targetVars);
-
-      } else if (isPresent(bindParts[3])) {  // match: on-event
-        this._parseEvent(bindParts[5], attrValue, attr.sourceSpan, targetMatchableAttrs,
-                         targetEvents);
-
-      } else if (isPresent(bindParts[4])) {  // match: bindon-prop
-        this._parseProperty(bindParts[5], attrValue, attr.sourceSpan, targetMatchableAttrs,
-                            targetProps);
-        this._parseAssignmentEvent(bindParts[5], attrValue, attr.sourceSpan, targetMatchableAttrs,
-                                   targetEvents);
-
-      } else if (isPresent(bindParts[6])) {  // match: [(expr)]
-        this._parseProperty(bindParts[6], attrValue, attr.sourceSpan, targetMatchableAttrs,
-                            targetProps);
-        this._parseAssignmentEvent(bindParts[6], attrValue, attr.sourceSpan, targetMatchableAttrs,
-                                   targetEvents);
-
-      } else if (isPresent(bindParts[7])) {  // match: [expr]
         this._parseProperty(bindParts[7], attrValue, attr.sourceSpan, targetMatchableAttrs,
                             targetProps);
 
-      } else if (isPresent(bindParts[8])) {  // match: (event)
-        this._parseEvent(bindParts[8], attrValue, attr.sourceSpan, targetMatchableAttrs,
+      } else if (isPresent(bindParts[2])) {  // match: var-name / var-name="iden"
+        var identifier = bindParts[7];
+        if (isTemplateElement) {
+          this._reportError(`"var-" on <template> elements is deprecated. Use "let-" instead!`,
+                            attr.sourceSpan, ParseErrorLevel.WARNING);
+          this._parseVariable(identifier, attrValue, attr.sourceSpan, targetVars);
+        } else {
+          this._reportError(`"var-" on non <template> elements is deprecated. Use "ref-" instead!`,
+                            attr.sourceSpan, ParseErrorLevel.WARNING);
+          this._parseReference(identifier, attrValue, attr.sourceSpan, targetRefs);
+        }
+
+      } else if (isPresent(bindParts[3])) {  // match: let-name
+        if (isTemplateElement) {
+          var identifier = bindParts[7];
+          this._parseVariable(identifier, attrValue, attr.sourceSpan, targetVars);
+        } else {
+          this._reportError(`"let-" is only supported on template elements.`, attr.sourceSpan);
+        }
+
+      } else if (isPresent(bindParts[4])) {  // match: ref- / #iden
+        var identifier = bindParts[7];
+        this._parseReference(identifier, attrValue, attr.sourceSpan, targetRefs);
+
+      } else if (isPresent(bindParts[5])) {  // match: on-event
+        this._parseEvent(bindParts[7], attrValue, attr.sourceSpan, targetMatchableAttrs,
+                         targetEvents);
+
+      } else if (isPresent(bindParts[6])) {  // match: bindon-prop
+        this._parseProperty(bindParts[7], attrValue, attr.sourceSpan, targetMatchableAttrs,
+                            targetProps);
+        this._parseAssignmentEvent(bindParts[7], attrValue, attr.sourceSpan, targetMatchableAttrs,
+                                   targetEvents);
+
+      } else if (isPresent(bindParts[8])) {  // match: [(expr)]
+        this._parseProperty(bindParts[8], attrValue, attr.sourceSpan, targetMatchableAttrs,
+                            targetProps);
+        this._parseAssignmentEvent(bindParts[8], attrValue, attr.sourceSpan, targetMatchableAttrs,
+                                   targetEvents);
+
+      } else if (isPresent(bindParts[9])) {  // match: [expr]
+        this._parseProperty(bindParts[9], attrValue, attr.sourceSpan, targetMatchableAttrs,
+                            targetProps);
+
+      } else if (isPresent(bindParts[10])) {  // match: (event)
+        this._parseEvent(bindParts[10], attrValue, attr.sourceSpan, targetMatchableAttrs,
                          targetEvents);
       }
     } else {
@@ -495,6 +532,14 @@ class TemplateParseVisitor implements HtmlAstVisitor {
     targetVars.push(new VariableAst(identifier, value, sourceSpan));
   }
 
+  private _parseReference(identifier: string, value: string, sourceSpan: ParseSourceSpan,
+                          targetRefs: ElementOrDirectiveRef[]) {
+    if (identifier.indexOf('-') > -1) {
+      this._reportError(`"-" is not allowed in reference names`, sourceSpan);
+    }
+    targetRefs.push(new ElementOrDirectiveRef(identifier, value, sourceSpan));
+  }
+
   private _parseProperty(name: string, expression: string, sourceSpan: ParseSourceSpan,
                          targetMatchableAttrs: string[][],
                          targetProps: BoundElementOrDirectiveProperty[]) {
@@ -547,33 +592,28 @@ class TemplateParseVisitor implements HtmlAstVisitor {
 
   private _parseDirectives(selectorMatcher: SelectorMatcher,
                            elementCssSelector: CssSelector): CompileDirectiveMetadata[] {
-    var directives = [];
-    selectorMatcher.match(elementCssSelector,
-                          (selector, directive) => { directives.push(directive); });
     // Need to sort the directives so that we get consistent results throughout,
     // as selectorMatcher uses Maps inside.
-    // Also need to make components the first directive in the array
-    ListWrapper.sort(directives,
-                     (dir1: CompileDirectiveMetadata, dir2: CompileDirectiveMetadata) => {
-                       var dir1Comp = dir1.isComponent;
-                       var dir2Comp = dir2.isComponent;
-                       if (dir1Comp && !dir2Comp) {
-                         return -1;
-                       } else if (!dir1Comp && dir2Comp) {
-                         return 1;
-                       } else {
-                         return this.directivesIndex.get(dir1) - this.directivesIndex.get(dir2);
-                       }
-                     });
-    return directives;
+    // Also dedupe directives as they might match more than one time!
+    var directives = ListWrapper.createFixedSize(this.directivesIndex.size);
+    selectorMatcher.match(elementCssSelector, (selector, directive) => {
+      directives[this.directivesIndex.get(directive)] = directive;
+    });
+    return directives.filter(dir => isPresent(dir));
   }
 
-  private _createDirectiveAsts(elementName: string, directives: CompileDirectiveMetadata[],
+  private _createDirectiveAsts(isTemplateElement: boolean, elementName: string,
+                               directives: CompileDirectiveMetadata[],
                                props: BoundElementOrDirectiveProperty[],
-                               possibleExportAsVars: VariableAst[],
-                               sourceSpan: ParseSourceSpan): DirectiveAst[] {
-    var matchedVariables = new Set<string>();
+                               elementOrDirectiveRefs: ElementOrDirectiveRef[],
+                               sourceSpan: ParseSourceSpan,
+                               targetReferences: ReferenceAst[]): DirectiveAst[] {
+    var matchedReferences = new Set<string>();
+    var component: CompileDirectiveMetadata = null;
     var directiveAsts = directives.map((directive: CompileDirectiveMetadata) => {
+      if (directive.isComponent) {
+        component = directive;
+      }
       var hostProperties: BoundElementPropertyAst[] = [];
       var hostEvents: BoundEventAst[] = [];
       var directiveProperties: BoundDirectivePropertyAst[] = [];
@@ -581,21 +621,29 @@ class TemplateParseVisitor implements HtmlAstVisitor {
                                             hostProperties);
       this._createDirectiveHostEventAsts(directive.hostListeners, sourceSpan, hostEvents);
       this._createDirectivePropertyAsts(directive.inputs, props, directiveProperties);
-      var exportAsVars = [];
-      possibleExportAsVars.forEach((varAst) => {
-        if ((varAst.value.length === 0 && directive.isComponent) ||
-            (directive.exportAs == varAst.value)) {
-          exportAsVars.push(varAst);
-          matchedVariables.add(varAst.name);
+      elementOrDirectiveRefs.forEach((elOrDirRef) => {
+        if ((elOrDirRef.value.length === 0 && directive.isComponent) ||
+            (directive.exportAs == elOrDirRef.value)) {
+          targetReferences.push(new ReferenceAst(elOrDirRef.name, identifierToken(directive.type),
+                                                 elOrDirRef.sourceSpan));
+          matchedReferences.add(elOrDirRef.name);
         }
       });
       return new DirectiveAst(directive, directiveProperties, hostProperties, hostEvents,
-                              exportAsVars, sourceSpan);
+                              sourceSpan);
     });
-    possibleExportAsVars.forEach((varAst) => {
-      if (varAst.value.length > 0 && !SetWrapper.has(matchedVariables, varAst.name)) {
-        this._reportError(`There is no directive with "exportAs" set to "${varAst.value}"`,
-                          varAst.sourceSpan);
+    elementOrDirectiveRefs.forEach((elOrDirRef) => {
+      if (elOrDirRef.value.length > 0) {
+        if (!SetWrapper.has(matchedReferences, elOrDirRef.name)) {
+          this._reportError(`There is no directive with "exportAs" set to "${elOrDirRef.value}"`,
+                            elOrDirRef.sourceSpan);
+        };
+      } else if (isBlank(component)) {
+        var refToken = null;
+        if (isTemplateElement) {
+          refToken = identifierToken(Identifiers.TemplateRef);
+        }
+        targetReferences.push(new ReferenceAst(elOrDirRef.name, refToken, elOrDirRef.sourceSpan));
       }
     });
     return directiveAsts;
@@ -793,6 +841,10 @@ class BoundElementOrDirectiveProperty {
               public sourceSpan: ParseSourceSpan) {}
 }
 
+class ElementOrDirectiveRef {
+  constructor(public name: string, public value: string, public sourceSpan: ParseSourceSpan) {}
+}
+
 export function splitClasses(classAttrValue: string): string[] {
   return StringWrapper.split(classAttrValue.trim(), /\s+/g);
 }
diff --git a/modules/angular2/src/compiler/view_compiler/compile_element.ts b/modules/angular2/src/compiler/view_compiler/compile_element.ts
index 020226f17f..00035a97d1 100644
--- a/modules/angular2/src/compiler/view_compiler/compile_element.ts
+++ b/modules/angular2/src/compiler/view_compiler/compile_element.ts
@@ -4,7 +4,7 @@ import {InjectMethodVars} from './constants';
 import {CompileView} from './compile_view';
 import {isPresent, isBlank} from 'angular2/src/facade/lang';
 import {ListWrapper, StringMapWrapper} from 'angular2/src/facade/collection';
-import {TemplateAst, ProviderAst, ProviderAstType} from '../template_ast';
+import {TemplateAst, ProviderAst, ProviderAstType, ReferenceAst} from '../template_ast';
 import {
   CompileTokenMap,
   CompileDirectiveMetadata,
@@ -13,7 +13,7 @@ import {
   CompileProviderMetadata,
   CompileDiDependencyMetadata,
   CompileIdentifierMetadata,
-  CompileTypeMetadata
+  CompileTypeMetadata,
 } from '../compile_metadata';
 import {getPropertyInView, createDiTokenExpression, injectFromViewParentInjector} from './util';
 import {CompileQuery, createQueryList, addQueryToTokenMap} from './compile_query';
@@ -30,7 +30,7 @@ export class CompileNode {
 
 export class CompileElement extends CompileNode {
   static createNull(): CompileElement {
-    return new CompileElement(null, null, null, null, null, null, [], [], false, false, {});
+    return new CompileElement(null, null, null, null, null, null, [], [], false, false, []);
   }
 
   private _compViewExpr: o.Expression = null;
@@ -47,15 +47,18 @@ export class CompileElement extends CompileNode {
   public contentNodesByNgContentIndex: Array<o.Expression>[] = null;
   public embeddedView: CompileView;
   public directiveInstances: o.Expression[];
+  public referenceTokens: {[key: string]: CompileTokenMetadata};
 
   constructor(parent: CompileElement, view: CompileView, nodeIndex: number,
               renderNode: o.Expression, sourceAst: TemplateAst,
               public component: CompileDirectiveMetadata,
               private _directives: CompileDirectiveMetadata[],
               private _resolvedProvidersArray: ProviderAst[], public hasViewContainer: boolean,
-              public hasEmbeddedView: boolean,
-              public variableTokens: {[key: string]: CompileTokenMetadata}) {
+              public hasEmbeddedView: boolean, references: ReferenceAst[]) {
     super(parent, view, nodeIndex, renderNode, sourceAst);
+    this.referenceTokens = {};
+    references.forEach(ref => this.referenceTokens[ref.name] = ref.value);
+
     this.elementRef = o.importExpr(Identifiers.ElementRef).instantiate([this.renderNode]);
     this._instances.add(identifierToken(Identifiers.ElementRef), this.elementRef);
     this.injector = o.THIS_EXPR.callMethod('injector', [o.literal(this.nodeIndex)]);
@@ -167,15 +170,15 @@ export class CompileElement extends CompileNode {
           queriesWithReads,
           queriesForProvider.map(query => new _QueryWithRead(query, resolvedProvider.token)));
     });
-    StringMapWrapper.forEach(this.variableTokens, (_, varName) => {
-      var token = this.variableTokens[varName];
+    StringMapWrapper.forEach(this.referenceTokens, (_, varName) => {
+      var token = this.referenceTokens[varName];
       var varValue;
       if (isPresent(token)) {
         varValue = this._instances.get(token);
       } else {
         varValue = this.renderNode;
       }
-      this.view.variables.set(varName, varValue);
+      this.view.locals.set(varName, varValue);
       var varToken = new CompileTokenMetadata({value: varName});
       ListWrapper.addAll(queriesWithReads, this._getQueriesFor(varToken)
                                                .map(query => new _QueryWithRead(query, varToken)));
@@ -186,8 +189,8 @@ export class CompileElement extends CompileNode {
         // query for an identifier
         value = this._instances.get(queryWithRead.read);
       } else {
-        // query for a variable
-        var token = this.variableTokens[queryWithRead.read.value];
+        // query for a reference
+        var token = this.referenceTokens[queryWithRead.read.value];
         if (isPresent(token)) {
           value = this._instances.get(token);
         } else {
@@ -247,12 +250,6 @@ export class CompileElement extends CompileNode {
         (resolvedProvider) => createDiTokenExpression(resolvedProvider.token));
   }
 
-  getDeclaredVariablesNames(): string[] {
-    var res = [];
-    StringMapWrapper.forEach(this.variableTokens, (_, key) => { res.push(key); });
-    return res;
-  }
-
   private _getQueriesFor(token: CompileTokenMetadata): CompileQuery[] {
     var result: CompileQuery[] = [];
     var currentEl: CompileElement = this;
diff --git a/modules/angular2/src/compiler/view_compiler/compile_view.ts b/modules/angular2/src/compiler/view_compiler/compile_view.ts
index c0c414226e..32759d1f9c 100644
--- a/modules/angular2/src/compiler/view_compiler/compile_view.ts
+++ b/modules/angular2/src/compiler/view_compiler/compile_view.ts
@@ -56,7 +56,7 @@ export class CompileView implements NameResolver {
   public componentView: CompileView;
   public purePipes = new Map<string, CompilePipe>();
   public pipes: CompilePipe[] = [];
-  public variables = new Map<string, o.Expression>();
+  public locals = new Map<string, o.Expression>();
   public className: string;
   public classType: o.Type;
   public viewFactory: o.ReadVarExpr;
@@ -112,7 +112,7 @@ export class CompileView implements NameResolver {
     }
     this.viewQueries = viewQueries;
     templateVariableBindings.forEach((entry) => {
-      this.variables.set(entry[1], o.THIS_EXPR.prop('locals').key(o.literal(entry[0])));
+      this.locals.set(entry[1], o.THIS_EXPR.prop('locals').key(o.literal(entry[0])));
     });
 
     if (!this.declarationElement.isNull()) {
@@ -133,15 +133,15 @@ export class CompileView implements NameResolver {
     return pipe.call(this, [input].concat(args));
   }
 
-  getVariable(name: string): o.Expression {
+  getLocal(name: string): o.Expression {
     if (name == EventHandlerVars.event.name) {
       return EventHandlerVars.event;
     }
     var currView: CompileView = this;
-    var result = currView.variables.get(name);
+    var result = currView.locals.get(name);
     while (isBlank(result) && isPresent(currView.declarationElement.view)) {
       currView = currView.declarationElement.view;
-      result = currView.variables.get(name);
+      result = currView.locals.get(name);
     }
     if (isPresent(result)) {
       return getPropertyInView(result, this, currView);
diff --git a/modules/angular2/src/compiler/view_compiler/expression_converter.ts b/modules/angular2/src/compiler/view_compiler/expression_converter.ts
index b94d077ae5..2f915b485d 100644
--- a/modules/angular2/src/compiler/view_compiler/expression_converter.ts
+++ b/modules/angular2/src/compiler/view_compiler/expression_converter.ts
@@ -9,7 +9,7 @@ var IMPLICIT_RECEIVER = o.variable('#implicit');
 
 export interface NameResolver {
   callPipe(name: string, input: o.Expression, args: o.Expression[]): o.Expression;
-  getVariable(name: string): o.Expression;
+  getLocal(name: string): o.Expression;
   createLiteralArray(values: o.Expression[]): o.Expression;
   createLiteralMap(values: Array<Array<string | o.Expression>>): o.Expression;
 }
@@ -185,7 +185,7 @@ class _AstToIrVisitor implements cdAst.AstVisitor {
     var result = null;
     var receiver = ast.receiver.visit(this, _Mode.Expression);
     if (receiver === IMPLICIT_RECEIVER) {
-      var varExpr = this._nameResolver.getVariable(ast.name);
+      var varExpr = this._nameResolver.getLocal(ast.name);
       if (isPresent(varExpr)) {
         result = varExpr.callFn(args);
       } else {
@@ -204,7 +204,7 @@ class _AstToIrVisitor implements cdAst.AstVisitor {
     var result = null;
     var receiver = ast.receiver.visit(this, _Mode.Expression);
     if (receiver === IMPLICIT_RECEIVER) {
-      result = this._nameResolver.getVariable(ast.name);
+      result = this._nameResolver.getLocal(ast.name);
       if (isBlank(result)) {
         receiver = this._implicitReceiver;
       }
@@ -217,9 +217,9 @@ class _AstToIrVisitor implements cdAst.AstVisitor {
   visitPropertyWrite(ast: cdAst.PropertyWrite, mode: _Mode): any {
     var receiver: o.Expression = ast.receiver.visit(this, _Mode.Expression);
     if (receiver === IMPLICIT_RECEIVER) {
-      var varExpr = this._nameResolver.getVariable(ast.name);
+      var varExpr = this._nameResolver.getLocal(ast.name);
       if (isPresent(varExpr)) {
-        throw new BaseException('Cannot reassign a variable binding');
+        throw new BaseException('Cannot assign to a reference or variable!');
       }
       receiver = this._implicitReceiver;
     }
diff --git a/modules/angular2/src/compiler/view_compiler/view_binder.ts b/modules/angular2/src/compiler/view_compiler/view_binder.ts
index 1cd1136727..d9faf6f310 100644
--- a/modules/angular2/src/compiler/view_compiler/view_binder.ts
+++ b/modules/angular2/src/compiler/view_compiler/view_binder.ts
@@ -7,6 +7,7 @@ import {
   NgContentAst,
   EmbeddedTemplateAst,
   ElementAst,
+  ReferenceAst,
   VariableAst,
   BoundEventAst,
   BoundElementPropertyAst,
@@ -113,6 +114,7 @@ class ViewBinderVisitor implements TemplateAstVisitor {
     return null;
   }
 
+  visitReference(ast: ReferenceAst, ctx: any): any { return null; }
   visitVariable(ast: VariableAst, ctx: any): any { return null; }
   visitDirectiveProperty(ast: BoundDirectivePropertyAst, context: any): any { return null; }
   visitElementProperty(ast: BoundElementPropertyAst, context: any): any { return null; }
diff --git a/modules/angular2/src/compiler/view_compiler/view_builder.ts b/modules/angular2/src/compiler/view_compiler/view_builder.ts
index 7fc3d3aeee..bb4d5a7ba8 100644
--- a/modules/angular2/src/compiler/view_compiler/view_builder.ts
+++ b/modules/angular2/src/compiler/view_compiler/view_builder.ts
@@ -26,6 +26,7 @@ import {
   NgContentAst,
   EmbeddedTemplateAst,
   ElementAst,
+  ReferenceAst,
   VariableAst,
   BoundEventAst,
   BoundElementPropertyAst,
@@ -201,8 +202,6 @@ class ViewBuilderVisitor implements TemplateAstVisitor {
 
     var component = ast.getComponent();
     var directives = ast.directives.map(directiveAst => directiveAst.directive);
-    var variables =
-        _readHtmlAndDirectiveVariables(ast.exportAsVars, ast.directives, this.view.viewType);
     var htmlAttrs = _readHtmlAttrs(ast.attrs);
     var attrNameAndValues = _mergeHtmlAndDirectiveAttrs(htmlAttrs, directives);
     for (var i = 0; i < attrNameAndValues.length; i++) {
@@ -216,7 +215,7 @@ class ViewBuilderVisitor implements TemplateAstVisitor {
     }
     var compileElement =
         new CompileElement(parent, this.view, nodeIndex, renderNode, ast, component, directives,
-                           ast.providers, ast.hasViewContainer, false, variables);
+                           ast.providers, ast.hasViewContainer, false, ast.references);
     this.view.nodes.push(compileElement);
     var compViewExpr: o.ReadVarExpr = null;
     if (isPresent(component)) {
@@ -269,13 +268,13 @@ class ViewBuilderVisitor implements TemplateAstVisitor {
             .toStmt());
     var renderNode = o.THIS_EXPR.prop(fieldName);
 
-    var templateVariableBindings = ast.vars.map(
+    var templateVariableBindings = ast.variables.map(
         varAst => [varAst.value.length > 0 ? varAst.value : IMPLICIT_TEMPLATE_VAR, varAst.name]);
 
     var directives = ast.directives.map(directiveAst => directiveAst.directive);
     var compileElement =
         new CompileElement(parent, this.view, nodeIndex, renderNode, ast, null, directives,
-                           ast.providers, ast.hasViewContainer, true, {});
+                           ast.providers, ast.hasViewContainer, true, ast.references);
     this.view.nodes.push(compileElement);
 
     this.nestedViewCount++;
@@ -297,6 +296,7 @@ class ViewBuilderVisitor implements TemplateAstVisitor {
     return null;
   }
 
+  visitReference(ast: ReferenceAst, ctx: any): any { return null; }
   visitVariable(ast: VariableAst, ctx: any): any { return null; }
   visitDirectiveProperty(ast: BoundDirectivePropertyAst, context: any): any { return null; }
   visitElementProperty(ast: BoundElementPropertyAst, context: any): any { return null; }
@@ -321,24 +321,6 @@ function _readHtmlAttrs(attrs: AttrAst[]): {[key: string]: string} {
   return htmlAttrs;
 }
 
-function _readHtmlAndDirectiveVariables(elementExportAsVars: VariableAst[],
-                                        directives: DirectiveAst[],
-                                        viewType: ViewType): {[key: string]: CompileTokenMetadata} {
-  var variables: {[key: string]: CompileTokenMetadata} = {};
-  var component: CompileDirectiveMetadata = null;
-  directives.forEach((directive) => {
-    if (directive.directive.isComponent) {
-      component = directive.directive;
-    }
-    directive.exportAsVars.forEach(
-        varAst => { variables[varAst.name] = identifierToken(directive.directive.type); });
-  });
-  elementExportAsVars.forEach((varAst) => {
-    variables[varAst.name] = isPresent(component) ? identifierToken(component.type) : null;
-  });
-  return variables;
-}
-
 function mergeAttributeValue(attrName: string, attrValue1: string, attrValue2: string): string {
   if (attrName == CLASS_ATTR || attrName == STYLE_ATTR) {
     return `${attrValue1} ${attrValue2}`;
@@ -392,7 +374,7 @@ function createStaticNodeDebugInfo(node: CompileNode): o.Expression {
     if (isPresent(compileElement.component)) {
       componentToken = createDiTokenExpression(identifierToken(compileElement.component.type));
     }
-    StringMapWrapper.forEach(compileElement.variableTokens, (token, varName) => {
+    StringMapWrapper.forEach(compileElement.referenceTokens, (token, varName) => {
       varTokenEntries.push(
           [varName, isPresent(token) ? createDiTokenExpression(token) : o.NULL_EXPR]);
     });
diff --git a/modules/angular2/src/core/change_detection/change_detector_ref.ts b/modules/angular2/src/core/change_detection/change_detector_ref.ts
index eec6f0e834..c218719873 100644
--- a/modules/angular2/src/core/change_detection/change_detector_ref.ts
+++ b/modules/angular2/src/core/change_detection/change_detector_ref.ts
@@ -70,7 +70,7 @@ export abstract class ChangeDetectorRef {
    * @Component({
    *   selector: 'giant-list',
    *   template: `
-   *     <li *ngFor="#d of dataProvider.data">Data {{d}}</lig>
+   *     <li *ngFor="let d of dataProvider.data">Data {{d}}</lig>
    *   `,
    *   directives: [NgFor]
    * })
diff --git a/modules/angular2/src/core/console.ts b/modules/angular2/src/core/console.ts
index dcd96fcce0..3d92c988f6 100644
--- a/modules/angular2/src/core/console.ts
+++ b/modules/angular2/src/core/console.ts
@@ -1,7 +1,13 @@
 import {Injectable} from 'angular2/src/core/di';
-import {print} from 'angular2/src/facade/lang';
+import {print, warn} from 'angular2/src/facade/lang';
+
+// Note: Need to rename warn as in Dart
+// class members and imports can't use the same name.
+let _warnImpl = warn;
 
 @Injectable()
 export class Console {
   log(message: string): void { print(message); }
-}
\ No newline at end of file
+  // Note: for reporting errors use `DOM.logError()` as it is platform specific
+  warn(message: string): void { _warnImpl(message); }
+}
diff --git a/modules/angular2/src/core/linker/debug_context.ts b/modules/angular2/src/core/linker/debug_context.ts
index 4017d97a05..986a5c45a5 100644
--- a/modules/angular2/src/core/linker/debug_context.ts
+++ b/modules/angular2/src/core/linker/debug_context.ts
@@ -8,7 +8,7 @@ import {ViewType} from './view_type';
 @CONST()
 export class StaticNodeDebugInfo {
   constructor(public providerTokens: any[], public componentToken: any,
-              public varTokens: {[key: string]: any}) {}
+              public refTokens: {[key: string]: any}) {}
 }
 
 export class DebugContext implements RenderDebugInfo {
@@ -61,15 +61,15 @@ export class DebugContext implements RenderDebugInfo {
     ListWrapper.forEachWithIndex(
         this._view.staticNodeDebugInfos,
         (staticNodeInfo: StaticNodeDebugInfo, nodeIndex: number) => {
-          var vars = staticNodeInfo.varTokens;
-          StringMapWrapper.forEach(vars, (varToken, varName) => {
+          var refs = staticNodeInfo.refTokens;
+          StringMapWrapper.forEach(refs, (refToken, refName) => {
             var varValue;
-            if (isBlank(varToken)) {
+            if (isBlank(refToken)) {
               varValue = isPresent(this._view.allNodes) ? this._view.allNodes[nodeIndex] : null;
             } else {
-              varValue = this._view.injectorGet(varToken, nodeIndex, null);
+              varValue = this._view.injectorGet(refToken, nodeIndex, null);
             }
-            varValues[varName] = varValue;
+            varValues[refName] = varValue;
           });
         });
     StringMapWrapper.forEach(this._view.locals,
diff --git a/modules/angular2/src/core/linker/query_list.ts b/modules/angular2/src/core/linker/query_list.ts
index 92a6d6b737..3165121a62 100644
--- a/modules/angular2/src/core/linker/query_list.ts
+++ b/modules/angular2/src/core/linker/query_list.ts
@@ -11,7 +11,7 @@ import {Observable, EventEmitter} from 'angular2/src/facade/async';
  *
  * Implements an iterable interface, therefore it can be used in both ES6
  * javascript `for (var i of items)` loops as well as in Angular templates with
- * `*ngFor="#i of myList"`.
+ * `*ngFor="let i of myList"`.
  *
  * Changes can be observed by subscribing to the changes `Observable`.
  *
diff --git a/modules/angular2/src/core/linker/view_ref.ts b/modules/angular2/src/core/linker/view_ref.ts
index 8b848aa5c2..8f86cd45d4 100644
--- a/modules/angular2/src/core/linker/view_ref.ts
+++ b/modules/angular2/src/core/linker/view_ref.ts
@@ -34,7 +34,7 @@ export abstract class ViewRef extends ChangeDetectorRef {
  * ```
  * Count: {{items.length}}
  * <ul>
- *   <li *ngFor="var item of items">{{item}}</li>
+ *   <li *ngFor="let  item of items">{{item}}</li>
  * </ul>
  * ```
  *
@@ -44,7 +44,7 @@ export abstract class ViewRef extends ChangeDetectorRef {
  * ```
  * Count: {{items.length}}
  * <ul>
- *   <template ngFor var-item [ngForOf]="items"></template>
+ *   <template ngFor let-item [ngForOf]="items"></template>
  * </ul>
  * ```
  *
diff --git a/modules/angular2/src/core/metadata.ts b/modules/angular2/src/core/metadata.ts
index 8ae2184038..3528876be1 100644
--- a/modules/angular2/src/core/metadata.ts
+++ b/modules/angular2/src/core/metadata.ts
@@ -964,7 +964,7 @@ export var Attribute: AttributeMetadataFactory = makeParamDecorator(AttributeMet
  * ```html
  * <tabs>
  *   <pane title="Overview">...</pane>
- *   <pane *ngFor="#o of objects" [title]="o.title">{{o.text}}</pane>
+ *   <pane *ngFor="let o of objects" [title]="o.title">{{o.text}}</pane>
  * </tabs>
  * ```
  *
@@ -983,7 +983,7 @@ export var Attribute: AttributeMetadataFactory = makeParamDecorator(AttributeMet
  *  selector: 'tabs',
  *  template: `
  *    <ul>
- *      <li *ngFor="#pane of panes">{{pane.title}}</li>
+ *      <li *ngFor="let pane of panes">{{pane.title}}</li>
  *    </ul>
  *    <ng-content></ng-content>
  *  `
diff --git a/modules/angular2/src/core/metadata/di.ts b/modules/angular2/src/core/metadata/di.ts
index d502dcc05e..62484bddf4 100644
--- a/modules/angular2/src/core/metadata/di.ts
+++ b/modules/angular2/src/core/metadata/di.ts
@@ -46,7 +46,7 @@ export class AttributeMetadata extends DependencyMetadata {
  * ```html
  * <tabs>
  *   <pane title="Overview">...</pane>
- *   <pane *ngFor="#o of objects" [title]="o.title">{{o.text}}</pane>
+ *   <pane *ngFor="let o of objects" [title]="o.title">{{o.text}}</pane>
  * </tabs>
  * ```
  *
@@ -65,7 +65,7 @@ export class AttributeMetadata extends DependencyMetadata {
  *  selector: 'tabs',
  *  template: `
  *    <ul>
- *      <li *ngFor="#pane of panes">{{pane.title}}</li>
+ *      <li *ngFor="let pane of panes">{{pane.title}}</li>
  *    </ul>
  *    <ng-content></ng-content>
  *  `
diff --git a/modules/angular2/src/core/metadata/lifecycle_hooks.ts b/modules/angular2/src/core/metadata/lifecycle_hooks.ts
index b643c4957a..ff244a57d8 100644
--- a/modules/angular2/src/core/metadata/lifecycle_hooks.ts
+++ b/modules/angular2/src/core/metadata/lifecycle_hooks.ts
@@ -149,7 +149,7 @@ export interface OnInit { ngOnInit(); }
  *   template: `
  *     <p>Changes:</p>
  *     <ul>
- *       <li *ngFor="#line of logs">{{line}}</li>
+ *       <li *ngFor="let line of logs">{{line}}</li>
  *     </ul>`,
  *   directives: [NgFor]
  * })
diff --git a/modules/angular2/src/core/metadata/view.ts b/modules/angular2/src/core/metadata/view.ts
index a0b00722d1..efd2dc6fd3 100644
--- a/modules/angular2/src/core/metadata/view.ts
+++ b/modules/angular2/src/core/metadata/view.ts
@@ -104,7 +104,7 @@ export class ViewMetadata {
    *   directives: [NgFor]
    *   template: '
    *   <ul>
-   *     <li *ngFor="#item of items">{{item}}</li>
+   *     <li *ngFor="let item of items">{{item}}</li>
    *   </ul>'
    * })
    * class MyComponent {
diff --git a/modules/angular2/src/facade/lang.dart b/modules/angular2/src/facade/lang.dart
index 9d95b2f97a..313dc69d3b 100644
--- a/modules/angular2/src/facade/lang.dart
+++ b/modules/angular2/src/facade/lang.dart
@@ -298,6 +298,10 @@ bool isJsObject(o) {
   return false;
 }
 
+warn(o) {
+  print(o);
+}
+
 // Functions below are noop in Dart. Imperatively controlling dev mode kills
 // tree shaking. We should only rely on `assertionsEnabled`.
 @Deprecated('Do not use this function. It is for JS only. There is no alternative.')
diff --git a/modules/angular2/src/facade/lang.ts b/modules/angular2/src/facade/lang.ts
index a026d0fd26..02632bde11 100644
--- a/modules/angular2/src/facade/lang.ts
+++ b/modules/angular2/src/facade/lang.ts
@@ -408,6 +408,10 @@ export function print(obj: Error | Object) {
   console.log(obj);
 }
 
+export function warn(obj: Error | Object) {
+  console.warn(obj);
+}
+
 // Can't be all uppercase as our transpiler would think it is a special directive...
 export class Json {
   static parse(s: string): Object { return _global.JSON.parse(s); }
diff --git a/modules/angular2/src/router/directives/router_link_transform.ts b/modules/angular2/src/router/directives/router_link_transform.ts
index f6ea5a01f7..e2e89aa8e5 100644
--- a/modules/angular2/src/router/directives/router_link_transform.ts
+++ b/modules/angular2/src/router/directives/router_link_transform.ts
@@ -185,11 +185,13 @@ export class RouterLinkTransform implements TemplateAstVisitor {
     let updatedChildren = ast.children.map(c => c.visit(this, context));
     let updatedInputs = ast.inputs.map(c => c.visit(this, context));
     let updatedDirectives = ast.directives.map(c => c.visit(this, context));
-    return new ElementAst(ast.name, ast.attrs, updatedInputs, ast.outputs, ast.exportAsVars,
+    return new ElementAst(ast.name, ast.attrs, updatedInputs, ast.outputs, ast.references,
                           updatedDirectives, ast.providers, ast.hasViewContainer, updatedChildren,
                           ast.ngContentIndex, ast.sourceSpan);
   }
 
+  visitReference(ast: any, context: any): any { return ast; }
+
   visitVariable(ast: any, context: any): any { return ast; }
 
   visitEvent(ast: any, context: any): any { return ast; }
@@ -205,7 +207,7 @@ export class RouterLinkTransform implements TemplateAstVisitor {
   visitDirective(ast: DirectiveAst, context: any): any {
     let updatedInputs = ast.inputs.map(c => c.visit(this, context));
     return new DirectiveAst(ast.directive, updatedInputs, ast.hostProperties, ast.hostEvents,
-                            ast.exportAsVars, ast.sourceSpan);
+                            ast.sourceSpan);
   }
 
   visitDirectiveProperty(ast: BoundDirectivePropertyAst, context: any): any {
diff --git a/modules/angular2/test/common/directives/ng_class_spec.ts b/modules/angular2/test/common/directives/ng_class_spec.ts
index 7c7703a1d6..90c44321e1 100644
--- a/modules/angular2/test/common/directives/ng_class_spec.ts
+++ b/modules/angular2/test/common/directives/ng_class_spec.ts
@@ -29,7 +29,7 @@ export function main() {
 
     it('should clean up when the directive is destroyed',
        inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
-         var template = '<div *ngFor="var item of items" [ngClass]="item"></div>';
+         var template = '<div *ngFor="let item of items" [ngClass]="item"></div>';
          tcb.overrideTemplate(TestComponent, template)
              .createAsync(TestComponent)
              .then((fixture) => {
diff --git a/modules/angular2/test/common/directives/ng_for_spec.ts b/modules/angular2/test/common/directives/ng_for_spec.ts
index f89507ef43..2ce2ced7d9 100644
--- a/modules/angular2/test/common/directives/ng_for_spec.ts
+++ b/modules/angular2/test/common/directives/ng_for_spec.ts
@@ -23,7 +23,7 @@ import {By} from 'angular2/platform/common_dom';
 export function main() {
   describe('ngFor', () => {
     var TEMPLATE =
-        '<div><copy-me template="ngFor #item of items">{{item.toString()}};</copy-me></div>';
+        '<div><copy-me template="ngFor let item of items">{{item.toString()}};</copy-me></div>';
 
     it('should reflect initial elements',
        inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
@@ -100,7 +100,7 @@ export function main() {
 
     it('should iterate over an array of objects',
        inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
-         var template = '<ul><li template="ngFor #item of items">{{item["name"]}};</li></ul>';
+         var template = '<ul><li template="ngFor let item of items">{{item["name"]}};</li></ul>';
 
          tcb.overrideTemplate(TestComponent, template)
              .createAsync(TestComponent)
@@ -130,7 +130,7 @@ export function main() {
 
     it('should gracefully handle nulls',
        inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
-         var template = '<ul><li template="ngFor #item of null">{{item}};</li></ul>';
+         var template = '<ul><li template="ngFor let item of null">{{item}};</li></ul>';
          tcb.overrideTemplate(TestComponent, template)
              .createAsync(TestComponent)
              .then((fixture) => {
@@ -207,8 +207,8 @@ export function main() {
     it('should repeat over nested arrays',
        inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
          var template = '<div>' +
-                        '<div template="ngFor #item of items">' +
-                        '<div template="ngFor #subitem of item">' +
+                        '<div template="ngFor let item of items">' +
+                        '<div template="ngFor let subitem of item">' +
                         '{{subitem}}-{{item.length}};' +
                         '</div>|' +
                         '</div>' +
@@ -233,8 +233,8 @@ export function main() {
 
     it('should repeat over nested arrays with no intermediate element',
        inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
-         var template = '<div><template ngFor #item [ngForOf]="items">' +
-                        '<div template="ngFor #subitem of item">' +
+         var template = '<div><template ngFor let-item [ngForOf]="items">' +
+                        '<div template="ngFor let subitem of item">' +
                         '{{subitem}}-{{item.length}};' +
                         '</div></template></div>';
 
@@ -255,7 +255,7 @@ export function main() {
     it('should repeat over nested ngIf that are the last node in the ngFor temlate',
        inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
          var template =
-             `<div><template ngFor #item [ngForOf]="items" #i="index"><div>{{i}}|</div>` +
+             `<div><template ngFor let-item [ngForOf]="items" let-i="index"><div>{{i}}|</div>` +
              `<div *ngIf="i % 2 == 0">even|</div></template></div>`;
 
          tcb.overrideTemplate(TestComponent, template)
@@ -282,7 +282,7 @@ export function main() {
     it('should display indices correctly',
        inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
          var template =
-             '<div><copy-me template="ngFor: var item of items; var i=index">{{i.toString()}}</copy-me></div>';
+             '<div><copy-me template="ngFor: let item of items; let i=index">{{i.toString()}}</copy-me></div>';
 
          tcb.overrideTemplate(TestComponent, template)
              .createAsync(TestComponent)
@@ -301,7 +301,7 @@ export function main() {
     it('should display first item correctly',
        inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
          var template =
-             '<div><copy-me template="ngFor: var item of items; var isFirst=first">{{isFirst.toString()}}</copy-me></div>';
+             '<div><copy-me template="ngFor: let item of items; let isFirst=first">{{isFirst.toString()}}</copy-me></div>';
 
          tcb.overrideTemplate(TestComponent, template)
              .createAsync(TestComponent)
@@ -320,7 +320,7 @@ export function main() {
     it('should display last item correctly',
        inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
          var template =
-             '<div><copy-me template="ngFor: var item of items; var isLast=last">{{isLast.toString()}}</copy-me></div>';
+             '<div><copy-me template="ngFor: let item of items; let isLast=last">{{isLast.toString()}}</copy-me></div>';
 
          tcb.overrideTemplate(TestComponent, template)
              .createAsync(TestComponent)
@@ -339,7 +339,7 @@ export function main() {
     it('should display even items correctly',
        inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
          var template =
-             '<div><copy-me template="ngFor: var item of items; var isEven=even">{{isEven.toString()}}</copy-me></div>';
+             '<div><copy-me template="ngFor: let item of items; let isEven=even">{{isEven.toString()}}</copy-me></div>';
 
          tcb.overrideTemplate(TestComponent, template)
              .createAsync(TestComponent)
@@ -358,7 +358,7 @@ export function main() {
     it('should display odd items correctly',
        inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
          var template =
-             '<div><copy-me template="ngFor: var item of items; var isOdd=odd">{{isOdd.toString()}}</copy-me></div>';
+             '<div><copy-me template="ngFor: let item of items; let isOdd=odd">{{isOdd.toString()}}</copy-me></div>';
 
          tcb.overrideTemplate(TestComponent, template)
              .createAsync(TestComponent)
@@ -381,7 +381,7 @@ export function main() {
                 '<ul><template ngFor [ngForOf]="items" [ngForTemplate]="contentTpl"></template></ul>')
              .overrideTemplate(
                  ComponentUsingTestComponent,
-                 '<test-cmp><li template="#item #i=index">{{i}}: {{item}};</li></test-cmp>')
+                 '<test-cmp><li template="let item; let i=index">{{i}}: {{item}};</li></test-cmp>')
              .createAsync(ComponentUsingTestComponent)
              .then((fixture) => {
                var testComponent = fixture.debugElement.children[0];
@@ -395,8 +395,8 @@ export function main() {
 
     it('should use a default template if a custom one is null',
        inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
-         tcb.overrideTemplate(TestComponent, `<ul><template ngFor #item [ngForOf]="items"
-         [ngForTemplate]="contentTpl" #i="index">{{i}}: {{item}};</template></ul>`)
+         tcb.overrideTemplate(TestComponent, `<ul><template ngFor let-item [ngForOf]="items"
+         [ngForTemplate]="contentTpl" let-i="index">{{i}}: {{item}};</template></ul>`)
              .overrideTemplate(ComponentUsingTestComponent, '<test-cmp></test-cmp>')
              .createAsync(ComponentUsingTestComponent)
              .then((fixture) => {
@@ -411,11 +411,11 @@ export function main() {
 
     it('should use a custom template when both default and a custom one are present',
        inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
-         tcb.overrideTemplate(TestComponent, `<ul><template ngFor #item [ngForOf]="items"
-         [ngForTemplate]="contentTpl" #i="index">{{i}}=> {{item}};</template></ul>`)
+         tcb.overrideTemplate(TestComponent, `<ul><template ngFor let-item [ngForOf]="items"
+         [ngForTemplate]="contentTpl" let-i="index">{{i}}=> {{item}};</template></ul>`)
              .overrideTemplate(
                  ComponentUsingTestComponent,
-                 '<test-cmp><li template="#item #i=index">{{i}}: {{item}};</li></test-cmp>')
+                 '<test-cmp><li template="let item; let i=index">{{i}}: {{item}};</li></test-cmp>')
              .createAsync(ComponentUsingTestComponent)
              .then((fixture) => {
                var testComponent = fixture.debugElement.children[0];
@@ -431,7 +431,7 @@ export function main() {
       it('should not replace tracked items',
          inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
            var template =
-               `<template ngFor #item [ngForOf]="items" [ngForTrackBy]="trackById" #i="index">
+               `<template ngFor let-item [ngForOf]="items" [ngForTrackBy]="trackById" let-i="index">
                <p>{{items[i]}}</p>
               </template>`;
            tcb.overrideTemplate(TestComponent, template)
@@ -453,7 +453,7 @@ export function main() {
       it('should update implicit local variable on view',
          inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
            var template =
-               `<div><template ngFor #item [ngForOf]="items" [ngForTrackBy]="trackById">{{item['color']}}</template></div>`;
+               `<div><template ngFor let-item [ngForOf]="items" [ngForTrackBy]="trackById">{{item['color']}}</template></div>`;
            tcb.overrideTemplate(TestComponent, template)
                .createAsync(TestComponent)
                .then((fixture) => {
@@ -469,7 +469,7 @@ export function main() {
       it('should move items around and keep them updated ',
          inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
            var template =
-               `<div><template ngFor #item [ngForOf]="items" [ngForTrackBy]="trackById">{{item['color']}}</template></div>`;
+               `<div><template ngFor let-item [ngForOf]="items" [ngForTrackBy]="trackById">{{item['color']}}</template></div>`;
            tcb.overrideTemplate(TestComponent, template)
                .createAsync(TestComponent)
                .then((fixture) => {
@@ -488,7 +488,7 @@ export function main() {
       it('should handle added and removed items properly when tracking by index',
          inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
            var template =
-               `<div><template ngFor #item [ngForOf]="items" [ngForTrackBy]="trackByIndex">{{item}}</template></div>`;
+               `<div><template ngFor let-item [ngForOf]="items" [ngForTrackBy]="trackByIndex">{{item}}</template></div>`;
            tcb.overrideTemplate(TestComponent, template)
                .createAsync(TestComponent)
                .then((fixture) => {
diff --git a/modules/angular2/test/common/forms/integration_spec.ts b/modules/angular2/test/common/forms/integration_spec.ts
index cdc8997d3f..9efe99347e 100644
--- a/modules/angular2/test/common/forms/integration_spec.ts
+++ b/modules/angular2/test/common/forms/integration_spec.ts
@@ -448,7 +448,7 @@ export function main() {
            inject([TestComponentBuilder, AsyncTestCompleter],
                   (tcb: TestComponentBuilder, async) => {
                     var t = `<select>
-                      <option *ngFor="#city of list" [value]="city['id']">
+                      <option *ngFor="let city of list" [value]="city['id']">
                         {{ city['name'] }}
                       </option>
                     </select>`;
@@ -503,7 +503,7 @@ export function main() {
            fakeAsync(inject([TestComponentBuilder], (tcb: TestComponentBuilder) => {
              var t = `<div [ngFormModel]="form">
                       <select ngControl="city">
-                        <option *ngFor="#c of data" [value]="c"></option>
+                        <option *ngFor="let c of data" [value]="c"></option>
                       </select>
                   </div>`;
 
@@ -528,7 +528,7 @@ export function main() {
                   (tcb: TestComponentBuilder, async) => {
                     var t = `<div>
                       <select [(ngModel)]="selectedCity">
-                        <option *ngFor="#c of list" [ngValue]="c">{{c['name']}}</option>
+                        <option *ngFor="let c of list" [ngValue]="c">{{c['name']}}</option>
                       </select>
                   </div>`;
 
@@ -560,7 +560,7 @@ export function main() {
                   (tcb: TestComponentBuilder, async) => {
                     var t = `<div>
                       <select [(ngModel)]="selectedCity">
-                        <option *ngFor="#c of list" [ngValue]="c">{{c['name']}}</option>
+                        <option *ngFor="let c of list" [ngValue]="c">{{c['name']}}</option>
                       </select>
                   </div>`;
 
@@ -588,7 +588,7 @@ export function main() {
                   (tcb: TestComponentBuilder, async) => {
                     var t = `<div>
                       <select [(ngModel)]="selectedCity">
-                        <option *ngFor="#c of list" [ngValue]="c">{{c}}</option>
+                        <option *ngFor="let c of list" [ngValue]="c">{{c}}</option>
                       </select>
                   </div>`;
                     tcb.overrideTemplate(MyComp, t).createAsync(MyComp).then((fixture) => {
@@ -614,7 +614,7 @@ export function main() {
                   (tcb: TestComponentBuilder, async) => {
                     var t = `<div>
                       <select [(ngModel)]="selectedCity">
-                        <option *ngFor="#c of list; trackBy:customTrackBy" [ngValue]="c">{{c}}</option>
+                        <option *ngFor="let c of list; trackBy:customTrackBy" [ngValue]="c">{{c}}</option>
                       </select>
                   </div>`;
 
@@ -644,7 +644,7 @@ export function main() {
                   (tcb: TestComponentBuilder, async) => {
                     var t = `<div>
                       <select [(ngModel)]="selectedCity">
-                        <option *ngFor="#c of list" [ngValue]="c">{{c}}</option>
+                        <option *ngFor="let c of list" [ngValue]="c">{{c}}</option>
                       </select>
                   </div>`;
 
@@ -673,7 +673,7 @@ export function main() {
                   (tcb: TestComponentBuilder, async) => {
                     var t = `<div>
                       <select [(ngModel)]="selectedCity">
-                        <option *ngFor="#c of list" [ngValue]="c">{{c['name']}}</option>
+                        <option *ngFor="let c of list" [ngValue]="c">{{c['name']}}</option>
                       </select>
                   </div>`;
 
diff --git a/modules/angular2/test/compiler/expression_parser/parser_spec.ts b/modules/angular2/test/compiler/expression_parser/parser_spec.ts
index 703bfd18b6..2cfcab4025 100644
--- a/modules/angular2/test/compiler/expression_parser/parser_spec.ts
+++ b/modules/angular2/test/compiler/expression_parser/parser_spec.ts
@@ -17,7 +17,7 @@ export function main() {
   }
 
   function parseTemplateBindings(text, location = null): any {
-    return createParser().parseTemplateBindings(text, location);
+    return createParser().parseTemplateBindings(text, location).templateBindings;
   }
 
   function parseInterpolation(text, location = null): any {
@@ -293,7 +293,7 @@ export function main() {
       function keyValues(templateBindings: any[]) {
         return templateBindings.map(binding => {
           if (binding.keyIsVar) {
-            return '#' + binding.key + (isBlank(binding.name) ? '=null' : '=' + binding.name);
+            return 'let ' + binding.key + (isBlank(binding.name) ? '=null' : '=' + binding.name);
           } else {
             return binding.key + (isBlank(binding.expression) ? '' : `=${binding.expression}`)
           }
@@ -339,8 +339,8 @@ export function main() {
       });
 
       it('should detect names as value', () => {
-        var bindings = parseTemplateBindings("a:#b");
-        expect(keyValues(bindings)).toEqual(['a', '#b=\$implicit']);
+        var bindings = parseTemplateBindings("a:let b");
+        expect(keyValues(bindings)).toEqual(['a', 'let b=\$implicit']);
       });
 
       it('should allow space and colon as separators', () => {
@@ -370,31 +370,46 @@ export function main() {
         expect(bindings[0].expression.location).toEqual('location');
       });
 
-      it('should support var/# notation', () => {
-        var bindings = parseTemplateBindings("var i");
-        expect(keyValues(bindings)).toEqual(['#i=\$implicit']);
+      it('should support var notation with a deprecation warning', () => {
+        var bindings = createParser().parseTemplateBindings("var i", null);
+        expect(keyValues(bindings.templateBindings)).toEqual(['let i=\$implicit']);
+        expect(bindings.warnings)
+            .toEqual(['"var" inside of expressions is deprecated. Use "let" instead!']);
+      });
 
-        bindings = parseTemplateBindings("#i");
-        expect(keyValues(bindings)).toEqual(['#i=\$implicit']);
+      it('should support # notation with a deprecation warning', () => {
+        var bindings = createParser().parseTemplateBindings("#i", null);
+        expect(keyValues(bindings.templateBindings)).toEqual(['let i=\$implicit']);
+        expect(bindings.warnings)
+            .toEqual(['"#" inside of expressions is deprecated. Use "let" instead!']);
+      });
 
-        bindings = parseTemplateBindings("var a; var b");
-        expect(keyValues(bindings)).toEqual(['#a=\$implicit', '#b=\$implicit']);
+      it('should support let notation', () => {
+        var bindings = parseTemplateBindings("let i");
+        expect(keyValues(bindings)).toEqual(['let i=\$implicit']);
 
-        bindings = parseTemplateBindings("#a; #b;");
-        expect(keyValues(bindings)).toEqual(['#a=\$implicit', '#b=\$implicit']);
+        bindings = parseTemplateBindings("let i");
+        expect(keyValues(bindings)).toEqual(['let i=\$implicit']);
 
-        bindings = parseTemplateBindings("var i-a = k-a");
-        expect(keyValues(bindings)).toEqual(['#i-a=k-a']);
+        bindings = parseTemplateBindings("let a; let b");
+        expect(keyValues(bindings)).toEqual(['let a=\$implicit', 'let b=\$implicit']);
 
-        bindings = parseTemplateBindings("keyword var item; var i = k");
-        expect(keyValues(bindings)).toEqual(['keyword', '#item=\$implicit', '#i=k']);
+        bindings = parseTemplateBindings("let a; let b;");
+        expect(keyValues(bindings)).toEqual(['let a=\$implicit', 'let b=\$implicit']);
 
-        bindings = parseTemplateBindings("keyword: #item; #i = k");
-        expect(keyValues(bindings)).toEqual(['keyword', '#item=\$implicit', '#i=k']);
+        bindings = parseTemplateBindings("let i-a = k-a");
+        expect(keyValues(bindings)).toEqual(['let i-a=k-a']);
 
-        bindings = parseTemplateBindings("directive: var item in expr; var a = b", 'location');
+        bindings = parseTemplateBindings("keyword let item; let i = k");
+        expect(keyValues(bindings)).toEqual(['keyword', 'let item=\$implicit', 'let i=k']);
+
+        bindings = parseTemplateBindings("keyword: let item; let i = k");
+        expect(keyValues(bindings)).toEqual(['keyword', 'let item=\$implicit', 'let i=k']);
+
+        bindings = parseTemplateBindings("directive: let item in expr; let a = b", 'location');
         expect(keyValues(bindings))
-            .toEqual(['directive', '#item=\$implicit', 'directiveIn=expr in location', '#a=b']);
+            .toEqual(
+                ['directive', 'let item=\$implicit', 'directiveIn=expr in location', 'let a=b']);
       });
 
       it('should parse pipes', () => {
diff --git a/modules/angular2/test/compiler/offline_compiler_util.ts b/modules/angular2/test/compiler/offline_compiler_util.ts
index 2d2f5c5189..666258c354 100644
--- a/modules/angular2/test/compiler/offline_compiler_util.ts
+++ b/modules/angular2/test/compiler/offline_compiler_util.ts
@@ -1,5 +1,6 @@
 import {print, IS_DART} from 'angular2/src/facade/lang';
 import {OutputEmitter} from 'angular2/src/compiler/output/abstract_emitter';
+import {Console} from 'angular2/src/core/console';
 
 import {
   OfflineCompiler,
@@ -48,8 +49,8 @@ function _createOfflineCompiler(xhr: MockXHR, emitter: OutputEmitter): OfflineCo
   var htmlParser = new HtmlParser();
   var normalizer = new DirectiveNormalizer(xhr, urlResolver, htmlParser);
   return new OfflineCompiler(
-      normalizer,
-      new TemplateParser(new Parser(new Lexer()), new MockSchemaRegistry({}, {}), htmlParser, []),
+      normalizer, new TemplateParser(new Parser(new Lexer()), new MockSchemaRegistry({}, {}),
+                                     htmlParser, new Console(), []),
       new StyleCompiler(urlResolver), new ViewCompiler(new CompilerConfig(true, true, true)),
       emitter);
 }
diff --git a/modules/angular2/test/compiler/template_parser_spec.ts b/modules/angular2/test/compiler/template_parser_spec.ts
index 9e4ecd80dc..019c6ee6fd 100644
--- a/modules/angular2/test/compiler/template_parser_spec.ts
+++ b/modules/angular2/test/compiler/template_parser_spec.ts
@@ -11,6 +11,7 @@ import {
   beforeEachProviders
 } from 'angular2/testing_internal';
 import {provide} from 'angular2/src/core/di';
+import {Console} from 'angular2/src/core/console';
 
 import {TEST_PROVIDERS} from './test_bindings';
 import {isPresent, CONST_EXPR} from 'angular2/src/facade/lang';
@@ -36,6 +37,7 @@ import {
   NgContentAst,
   EmbeddedTemplateAst,
   ElementAst,
+  ReferenceAst,
   VariableAst,
   BoundEventAst,
   BoundElementPropertyAst,
@@ -47,6 +49,7 @@ import {
   DirectiveAst,
   ProviderAstType
 } from 'angular2/src/compiler/template_ast';
+import {identifierToken, Identifiers} from 'angular2/src/compiler/identifiers';
 
 import {ElementSchemaRegistry} from 'angular2/src/compiler/schema/element_schema_registry';
 import {MockSchemaRegistry} from './schema_registry_mock';
@@ -66,8 +69,13 @@ var MOCK_SCHEMA_REGISTRY = [
 export function main() {
   var ngIf;
   var parse;
+  var console: ArrayConsole;
 
   function commonBeforeEach() {
+    beforeEachProviders(() => {
+      console = new ArrayConsole();
+      return [provide(Console, {useValue: console})];
+    });
     beforeEach(inject([TemplateParser], (parser) => {
       var component = CompileDirectiveMetadata.create({
         selector: 'root',
@@ -310,7 +318,7 @@ export function main() {
       });
 
       describe('directives', () => {
-        it('should locate directives components first and ordered by the directives array in the View',
+        it('should order directives by the directives array in the View and match them only once',
            () => {
              var dirA = CompileDirectiveMetadata.create({
                selector: '[a]',
@@ -324,19 +332,14 @@ export function main() {
                selector: '[c]',
                type: new CompileTypeMetadata({moduleUrl: someModuleUrl, name: 'DirC'})
              });
-             var comp = CompileDirectiveMetadata.create({
-               selector: 'div',
-               isComponent: true,
-               type: new CompileTypeMetadata({moduleUrl: someModuleUrl, name: 'ZComp'}),
-               template: new CompileTemplateMetadata({ngContentSelectors: []})
-             });
-             expect(humanizeTplAst(parse('<div a c b>', [dirA, dirB, dirC, comp])))
+             expect(humanizeTplAst(parse('<div a c b a b>', [dirA, dirB, dirC])))
                  .toEqual([
                    [ElementAst, 'div'],
                    [AttrAst, 'a', ''],
                    [AttrAst, 'c', ''],
                    [AttrAst, 'b', ''],
-                   [DirectiveAst, comp],
+                   [AttrAst, 'a', ''],
+                   [AttrAst, 'b', ''],
                    [DirectiveAst, dirA],
                    [DirectiveAst, dirB],
                    [DirectiveAst, dirC]
@@ -747,29 +750,41 @@ export function main() {
         });
       });
 
-      describe('variables', () => {
+      describe('references', () => {
 
-        it('should parse variables via #... and not report them as attributes', () => {
+        it('should parse references via #... and not report them as attributes', () => {
           expect(humanizeTplAst(parse('<div #a>', [])))
-              .toEqual([[ElementAst, 'div'], [VariableAst, 'a', '']]);
+              .toEqual([[ElementAst, 'div'], [ReferenceAst, 'a', null]]);
         });
 
-        it('should parse variables via var-... and not report them as attributes', () => {
+        it('should parse references via ref-... and not report them as attributes', () => {
+          expect(humanizeTplAst(parse('<div ref-a>', [])))
+              .toEqual([[ElementAst, 'div'], [ReferenceAst, 'a', null]]);
+        });
+
+        it('should parse references via var-... and report them as deprecated', () => {
           expect(humanizeTplAst(parse('<div var-a>', [])))
-              .toEqual([[ElementAst, 'div'], [VariableAst, 'a', '']]);
+              .toEqual([[ElementAst, 'div'], [ReferenceAst, 'a', null]]);
+          expect(console.warnings)
+              .toEqual([
+                [
+                  'Template parse warnings:',
+                  '"var-" on non <template> elements is deprecated. Use "ref-" instead! ("<div [ERROR ->]var-a>"): TestComp@0:5'
+                ].join('\n')
+              ]);
         });
 
-        it('should parse camel case variables', () => {
-          expect(humanizeTplAst(parse('<div var-someA>', [])))
-              .toEqual([[ElementAst, 'div'], [VariableAst, 'someA', '']]);
+        it('should parse camel case references', () => {
+          expect(humanizeTplAst(parse('<div ref-someA>', [])))
+              .toEqual([[ElementAst, 'div'], [ReferenceAst, 'someA', null]]);
         });
 
-        it('should assign variables with empty value to the element', () => {
+        it('should assign references with empty value to the element', () => {
           expect(humanizeTplAst(parse('<div #a></div>', [])))
-              .toEqual([[ElementAst, 'div'], [VariableAst, 'a', '']]);
+              .toEqual([[ElementAst, 'div'], [ReferenceAst, 'a', null]]);
         });
 
-        it('should assign variables to directives via exportAs', () => {
+        it('should assign references to directives via exportAs', () => {
           var dirA = CompileDirectiveMetadata.create({
             selector: '[a]',
             type: new CompileTypeMetadata({moduleUrl: someModuleUrl, name: 'DirA'}),
@@ -779,28 +794,27 @@ export function main() {
               .toEqual([
                 [ElementAst, 'div'],
                 [AttrAst, 'a', ''],
+                [ReferenceAst, 'a', identifierToken(dirA.type)],
                 [DirectiveAst, dirA],
-                [VariableAst, 'a', 'dirA']
               ]);
         });
 
-        it('should report variables with values that dont match a directive as errors', () => {
+        it('should report references with values that dont match a directive as errors', () => {
           expect(() => parse('<div #a="dirA"></div>', [])).toThrowError(`Template parse errors:
 There is no directive with "exportAs" set to "dirA" ("<div [ERROR ->]#a="dirA"></div>"): TestComp@0:5`);
         });
 
-        it('should report invalid variable names', () => {
+        it('should report invalid reference names', () => {
           expect(() => parse('<div #a-b></div>', [])).toThrowError(`Template parse errors:
-"-" is not allowed in variable names ("<div [ERROR ->]#a-b></div>"): TestComp@0:5`);
+"-" is not allowed in reference names ("<div [ERROR ->]#a-b></div>"): TestComp@0:5`);
         });
 
-        it('should allow variables with values that dont match a directive on embedded template elements',
-           () => {
-             expect(humanizeTplAst(parse('<template #a="b"></template>', [])))
-                 .toEqual([[EmbeddedTemplateAst], [VariableAst, 'a', 'b']]);
-           });
+        it('should report variables as errors', () => {
+          expect(() => parse('<div let-a></div>', [])).toThrowError(`Template parse errors:
+"let-" is only supported on template elements. ("<div [ERROR ->]let-a></div>"): TestComp@0:5`);
+        });
 
-        it('should assign variables with empty value to components', () => {
+        it('should assign references with empty value to components', () => {
           var dirA = CompileDirectiveMetadata.create({
             selector: '[a]',
             isComponent: true,
@@ -812,12 +826,19 @@ There is no directive with "exportAs" set to "dirA" ("<div [ERROR ->]#a="dirA"><
               .toEqual([
                 [ElementAst, 'div'],
                 [AttrAst, 'a', ''],
-                [VariableAst, 'a', ''],
+                [ReferenceAst, 'a', identifierToken(dirA.type)],
                 [DirectiveAst, dirA],
-                [VariableAst, 'a', '']
               ]);
         });
 
+        it('should not locate directives in references', () => {
+          var dirA = CompileDirectiveMetadata.create({
+            selector: '[a]',
+            type: new CompileTypeMetadata({moduleUrl: someModuleUrl, name: 'DirA'})
+          });
+          expect(humanizeTplAst(parse('<div ref-a>', [dirA])))
+              .toEqual([[ElementAst, 'div'], [ReferenceAst, 'a', null]]);
+        });
       });
 
       describe('explicit templates', () => {
@@ -836,6 +857,49 @@ There is no directive with "exportAs" set to "dirA" ("<div [ERROR ->]#a="dirA"><
                    [EmbeddedTemplateAst],
                  ]);
            });
+
+        it('should support references via #...', () => {
+          expect(humanizeTplAst(parse('<template #a>', [])))
+              .toEqual([
+                [EmbeddedTemplateAst],
+                [ReferenceAst, 'a', identifierToken(Identifiers.TemplateRef)]
+              ]);
+        });
+
+        it('should support references via ref-...', () => {
+          expect(humanizeTplAst(parse('<template ref-a>', [])))
+              .toEqual([
+                [EmbeddedTemplateAst],
+                [ReferenceAst, 'a', identifierToken(Identifiers.TemplateRef)]
+              ]);
+        });
+
+        it('should parse variables via let-...', () => {
+          expect(humanizeTplAst(parse('<template let-a="b">', [])))
+              .toEqual([[EmbeddedTemplateAst], [VariableAst, 'a', 'b']]);
+        });
+
+        it('should parse variables via var-... and report them as deprecated', () => {
+          expect(humanizeTplAst(parse('<template var-a="b">', [])))
+              .toEqual([[EmbeddedTemplateAst], [VariableAst, 'a', 'b']]);
+          expect(console.warnings)
+              .toEqual([
+                [
+                  'Template parse warnings:',
+                  '"var-" on <template> elements is deprecated. Use "let-" instead! ("<template [ERROR ->]var-a="b">"): TestComp@0:10'
+                ].join('\n')
+              ]);
+        });
+
+        it('should not locate directives in variables', () => {
+          var dirA = CompileDirectiveMetadata.create({
+            selector: '[a]',
+            type: new CompileTypeMetadata({moduleUrl: someModuleUrl, name: 'DirA'})
+          });
+          expect(humanizeTplAst(parse('<template let-a="b"></template>', [dirA])))
+              .toEqual([[EmbeddedTemplateAst], [VariableAst, 'a', 'b']]);
+        });
+
       });
 
       describe('inline templates', () => {
@@ -854,13 +918,32 @@ There is no directive with "exportAs" set to "dirA" ("<div [ERROR ->]#a="dirA"><
               ]);
         });
 
-        it('should parse variables via #...', () => {
-          expect(humanizeTplAst(parse('<div template="ngIf #a=b">', [])))
+        it('should parse variables via #... and report them as deprecated', () => {
+          expect(humanizeTplAst(parse('<div *ngIf="#a=b">', [])))
               .toEqual([[EmbeddedTemplateAst], [VariableAst, 'a', 'b'], [ElementAst, 'div']]);
+          expect(console.warnings)
+              .toEqual([
+                [
+                  'Template parse warnings:',
+                  '"#" inside of expressions is deprecated. Use "let" instead! ("<div [ERROR ->]*ngIf="#a=b">"): TestComp@0:5'
+                ].join('\n')
+              ]);
         });
 
-        it('should parse variables via var ...', () => {
-          expect(humanizeTplAst(parse('<div template="ngIf var a=b">', [])))
+        it('should parse variables via var ... and report them as deprecated', () => {
+          expect(humanizeTplAst(parse('<div *ngIf="var a=b">', [])))
+              .toEqual([[EmbeddedTemplateAst], [VariableAst, 'a', 'b'], [ElementAst, 'div']]);
+          expect(console.warnings)
+              .toEqual([
+                [
+                  'Template parse warnings:',
+                  '"var" inside of expressions is deprecated. Use "let" instead! ("<div [ERROR ->]*ngIf="var a=b">"): TestComp@0:5'
+                ].join('\n')
+              ]);
+        });
+
+        it('should parse variables via let ...', () => {
+          expect(humanizeTplAst(parse('<div *ngIf="let a=b">', [])))
               .toEqual([[EmbeddedTemplateAst], [VariableAst, 'a', 'b'], [ElementAst, 'div']]);
         });
 
@@ -886,24 +969,22 @@ There is no directive with "exportAs" set to "dirA" ("<div [ERROR ->]#a="dirA"><
                 ]);
           });
 
-          it('should locate directives in variable bindings', () => {
+          it('should not locate directives in variables', () => {
             var dirA = CompileDirectiveMetadata.create({
-              selector: '[a=b]',
+              selector: '[a]',
               type: new CompileTypeMetadata({moduleUrl: someModuleUrl, name: 'DirA'})
             });
-            var dirB = CompileDirectiveMetadata.create({
-              selector: '[b]',
-              type: new CompileTypeMetadata({moduleUrl: someModuleUrl, name: 'DirB'})
+            expect(humanizeTplAst(parse('<div template="let a=b">', [dirA])))
+                .toEqual([[EmbeddedTemplateAst], [VariableAst, 'a', 'b'], [ElementAst, 'div']]);
+          });
+
+          it('should not locate directives in references', () => {
+            var dirA = CompileDirectiveMetadata.create({
+              selector: '[a]',
+              type: new CompileTypeMetadata({moduleUrl: someModuleUrl, name: 'DirA'})
             });
-            expect(humanizeTplAst(parse('<div template="#a=b" b>', [dirA, dirB])))
-                .toEqual([
-                  [EmbeddedTemplateAst],
-                  [VariableAst, 'a', 'b'],
-                  [DirectiveAst, dirA],
-                  [ElementAst, 'div'],
-                  [AttrAst, 'b', ''],
-                  [DirectiveAst, dirB]
-                ]);
+            expect(humanizeTplAst(parse('<div ref-a>', [dirA])))
+                .toEqual([[ElementAst, 'div'], [ReferenceAst, 'a', null]]);
           });
 
         });
@@ -1248,22 +1329,20 @@ Property binding a not used by any directive on an embedded template ("[ERROR ->
 
       });
 
+      it('should support references', () => {
+        expect(humanizeTplAstSourceSpans(parse('<div #a></div>', [])))
+            .toEqual([[ElementAst, 'div', '<div #a>'], [ReferenceAst, 'a', null, '#a']]);
+      });
+
       it('should support variables', () => {
-        var dirA = CompileDirectiveMetadata.create({
-          selector: '[a]',
-          type: new CompileTypeMetadata({moduleUrl: someModuleUrl, name: 'DirA'}),
-          exportAs: 'dirA'
-        });
-        expect(humanizeTplAstSourceSpans(parse('<div a #a="dirA"></div>', [dirA])))
+        expect(humanizeTplAstSourceSpans(parse('<template let-a="b"></template>', [])))
             .toEqual([
-              [ElementAst, 'div', '<div a #a="dirA">'],
-              [AttrAst, 'a', '', 'a'],
-              [DirectiveAst, dirA, '<div a #a="dirA">'],
-              [VariableAst, 'a', 'dirA', '#a="dirA"']
+              [EmbeddedTemplateAst, '<template let-a="b">'],
+              [VariableAst, 'a', 'b', 'let-a="b"']
             ]);
       });
 
-      it('should support event', () => {
+      it('should support events', () => {
         expect(humanizeTplAstSourceSpans(parse('<div (window:event)="v">', [])))
             .toEqual([
               [ElementAst, 'div', '<div (window:event)="v">'],
@@ -1311,8 +1390,8 @@ Property binding a not used by any directive on an embedded template ("[ERROR ->
             .toEqual([
               [ElementAst, 'div', '<div a>'],
               [AttrAst, 'a', '', 'a'],
-              [DirectiveAst, comp, '<div a>'],
               [DirectiveAst, dirA, '<div a>'],
+              [DirectiveAst, comp, '<div a>']
             ]);
       });
 
@@ -1399,7 +1478,8 @@ class TemplateHumanizer implements TemplateAstVisitor {
     this.result.push(this._appendContext(ast, res));
     templateVisitAll(this, ast.attrs);
     templateVisitAll(this, ast.outputs);
-    templateVisitAll(this, ast.vars);
+    templateVisitAll(this, ast.references);
+    templateVisitAll(this, ast.variables);
     templateVisitAll(this, ast.directives);
     templateVisitAll(this, ast.children);
     return null;
@@ -1410,11 +1490,16 @@ class TemplateHumanizer implements TemplateAstVisitor {
     templateVisitAll(this, ast.attrs);
     templateVisitAll(this, ast.inputs);
     templateVisitAll(this, ast.outputs);
-    templateVisitAll(this, ast.exportAsVars);
+    templateVisitAll(this, ast.references);
     templateVisitAll(this, ast.directives);
     templateVisitAll(this, ast.children);
     return null;
   }
+  visitReference(ast: ReferenceAst, context: any): any {
+    var res = [ReferenceAst, ast.name, ast.value];
+    this.result.push(this._appendContext(ast, res));
+    return null;
+  }
   visitVariable(ast: VariableAst, context: any): any {
     var res = [VariableAst, ast.name, ast.value];
     this.result.push(this._appendContext(ast, res));
@@ -1457,7 +1542,6 @@ class TemplateHumanizer implements TemplateAstVisitor {
     templateVisitAll(this, ast.inputs);
     templateVisitAll(this, ast.hostProperties);
     templateVisitAll(this, ast.hostEvents);
-    templateVisitAll(this, ast.exportAsVars);
     return null;
   }
   visitDirectiveProperty(ast: BoundDirectivePropertyAst, context: any): any {
@@ -1499,6 +1583,7 @@ class TemplateContentProjectionHumanizer implements TemplateAstVisitor {
     templateVisitAll(this, ast.children);
     return null;
   }
+  visitReference(ast: ReferenceAst, context: any): any { return null; }
   visitVariable(ast: VariableAst, context: any): any { return null; }
   visitEvent(ast: BoundEventAst, context: any): any { return null; }
   visitElementProperty(ast: BoundElementPropertyAst, context: any): any { return null; }
@@ -1523,6 +1608,7 @@ class FooAstTransformer implements TemplateAstVisitor {
     return new ElementAst('foo', [], [], [], [], [], [], false, [], ast.ngContentIndex,
                           ast.sourceSpan);
   }
+  visitReference(ast: ReferenceAst, context: any): any { throw 'not implemented'; }
   visitVariable(ast: VariableAst, context: any): any { throw 'not implemented'; }
   visitEvent(ast: BoundEventAst, context: any): any { throw 'not implemented'; }
   visitElementProperty(ast: BoundElementPropertyAst, context: any): any { throw 'not implemented'; }
@@ -1542,3 +1628,10 @@ class BarAstTransformer extends FooAstTransformer {
                           ast.sourceSpan);
   }
 }
+
+class ArrayConsole implements Console {
+  logs: string[] = [];
+  warnings: string[] = [];
+  log(msg: string) { this.logs.push(msg); }
+  warn(msg: string) { this.warnings.push(msg); }
+}
\ No newline at end of file
diff --git a/modules/angular2/test/core/application_ref_spec.ts b/modules/angular2/test/core/application_ref_spec.ts
index aea94a9bd3..107241c127 100644
--- a/modules/angular2/test/core/application_ref_spec.ts
+++ b/modules/angular2/test/core/application_ref_spec.ts
@@ -179,4 +179,5 @@ class _MockComponentRef extends ComponentRef_ {
 
 class _MockConsole implements Console {
   log(message) {}
+  warn(message) {}
 }
diff --git a/modules/angular2/test/core/debug/debug_node_spec.ts b/modules/angular2/test/core/debug/debug_node_spec.ts
index bf2a48a0a2..ffd5c27dd5 100644
--- a/modules/angular2/test/core/debug/debug_node_spec.ts
+++ b/modules/angular2/test/core/debug/debug_node_spec.ts
@@ -132,9 +132,9 @@ class ConditionalParentComp {
 @Component({
   selector: 'using-for',
   viewProviders: [Logger],
-  template: `<span *ngFor="#thing of stuff" [innerHtml]="thing"></span>
+  template: `<span *ngFor="let thing of stuff" [innerHtml]="thing"></span>
             <ul message="list">
-              <li *ngFor="#item of stuff" [innerHtml]="item"></li>
+              <li *ngFor="let item of stuff" [innerHtml]="item"></li>
             </ul>`,
   directives: [NgFor, MessageDir],
 })
diff --git a/modules/angular2/test/core/forward_ref_integration_spec.ts b/modules/angular2/test/core/forward_ref_integration_spec.ts
index a3900e5bde..79e990c03c 100644
--- a/modules/angular2/test/core/forward_ref_integration_spec.ts
+++ b/modules/angular2/test/core/forward_ref_integration_spec.ts
@@ -50,7 +50,7 @@ class App {
 @Component({
   selector: 'lock',
   directives: [NgFor],
-  template: `{{frame.name}}(<span *ngFor="var lock of locks">{{lock.name}}</span>)`,
+  template: `{{frame.name}}(<span *ngFor="let  lock of locks">{{lock.name}}</span>)`,
 })
 class Door {
   locks: QueryList<Lock>;
diff --git a/modules/angular2/test/core/linker/change_detection_integration_spec.ts b/modules/angular2/test/core/linker/change_detection_integration_spec.ts
index b493a8bddd..0bf51e4194 100644
--- a/modules/angular2/test/core/linker/change_detection_integration_spec.ts
+++ b/modules/angular2/test/core/linker/change_detection_integration_spec.ts
@@ -438,7 +438,7 @@ export function main() {
 
       it('should read locals', fakeAsync(() => {
            var ctx =
-               createCompFixture('<template testLocals var-local="someLocal">{{local}}</template>');
+               createCompFixture('<template testLocals let-local="someLocal">{{local}}</template>');
            ctx.detectChanges(false);
 
            expect(renderLog.log).toEqual(['{{someLocalValue}}']);
@@ -581,7 +581,7 @@ export function main() {
 
         it('should throw when trying to assign to a local', fakeAsync(() => {
              expect(() => {_bindSimpleProp('(event)="$event=1"')})
-                 .toThrowError(new RegExp("Cannot reassign a variable binding"));
+                 .toThrowError(new RegExp("Cannot assign to a reference or variable!"));
            }));
 
         it('should support short-circuiting', fakeAsync(() => {
@@ -609,7 +609,7 @@ export function main() {
         it('should read directive properties', fakeAsync(() => {
              var ctx =
                  createCompFixture(
-                     '<div testDirective [a]="42" var-dir="testDirective" [someProp]="dir.a"></div>')
+                     '<div testDirective [a]="42" ref-dir="testDirective" [someProp]="dir.a"></div>')
                      ctx.detectChanges(false);
              expect(renderLog.loggedValues).toEqual([42]);
            }));
diff --git a/modules/angular2/test/core/linker/integration_dart_spec.dart b/modules/angular2/test/core/linker/integration_dart_spec.dart
index aa1905a514..b5f778c349 100644
--- a/modules/angular2/test/core/linker/integration_dart_spec.dart
+++ b/modules/angular2/test/core/linker/integration_dart_spec.dart
@@ -259,7 +259,7 @@ class OnChangeComponent implements OnChanges {
     ])
 @View(
     template:
-        '<span *ngFor="#item of list">{{item}}</span><directive-logging-checks></directive-logging-checks>',
+        '<span *ngFor="let item of list">{{item}}</span><directive-logging-checks></directive-logging-checks>',
     directives: const [NgFor, DirectiveLoggingChecks])
 class ComponentWithObservableList {
   Iterable list;
diff --git a/modules/angular2/test/core/linker/integration_spec.ts b/modules/angular2/test/core/linker/integration_spec.ts
index 560ca2715f..6b671d86a5 100644
--- a/modules/angular2/test/core/linker/integration_spec.ts
+++ b/modules/angular2/test/core/linker/integration_spec.ts
@@ -89,7 +89,7 @@ import {EmbeddedViewRef} from 'angular2/src/core/linker/view_ref';
 
 import {ComponentResolver} from 'angular2/src/core/linker/component_resolver';
 import {ElementRef} from 'angular2/src/core/linker/element_ref';
-import {TemplateRef} from 'angular2/src/core/linker/template_ref';
+import {TemplateRef_, TemplateRef} from 'angular2/src/core/linker/template_ref';
 
 import {Renderer} from 'angular2/src/core/render';
 
@@ -473,7 +473,7 @@ function declareTests(isJit: boolean) {
            tcb.overrideView(
                   MyComp, new ViewMetadata({
                     template:
-                        '<template some-viewport var-greeting="some-tmpl"><copy-me>{{greeting}}</copy-me></template>',
+                        '<template some-viewport let-greeting="some-tmpl"><copy-me>{{greeting}}</copy-me></template>',
                     directives: [SomeViewport]
                   }))
 
@@ -509,7 +509,7 @@ function declareTests(isJit: boolean) {
            tcb.overrideView(
                   MyComp, new ViewMetadata({
                     template:
-                        '<copy-me template="some-viewport: var greeting=some-tmpl">{{greeting}}</copy-me>',
+                        '<copy-me template="some-viewport: let greeting=some-tmpl">{{greeting}}</copy-me>',
                     directives: [SomeViewport]
                   }))
 
@@ -531,7 +531,7 @@ function declareTests(isJit: boolean) {
            tcb.overrideView(
                   MyComp, new ViewMetadata({
                     template:
-                        '<some-directive><toolbar><template toolbarpart var-toolbarProp="toolbarProp">{{ctxProp}},{{toolbarProp}},<cmp-with-host></cmp-with-host></template></toolbar></some-directive>',
+                        '<some-directive><toolbar><template toolbarpart let-toolbarProp="toolbarProp">{{ctxProp}},{{toolbarProp}},<cmp-with-host></cmp-with-host></template></toolbar></some-directive>',
                     directives: [SomeDirective, CompWithHost, ToolbarComponent, ToolbarPart]
                   }))
                .createAsync(MyComp)
@@ -547,12 +547,12 @@ function declareTests(isJit: boolean) {
                });
          }));
 
-      describe("variable bindings", () => {
-        it('should assign a component to a var-',
+      describe("reference bindings", () => {
+        it('should assign a component to a ref-',
            inject([TestComponentBuilder, AsyncTestCompleter],
                   (tcb: TestComponentBuilder, async) => {
                       tcb.overrideView(MyComp, new ViewMetadata({
-                                         template: '<p><child-cmp var-alice></child-cmp></p>',
+                                         template: '<p><child-cmp ref-alice></child-cmp></p>',
                                          directives: [ChildComp]
                                        }))
 
@@ -564,7 +564,7 @@ function declareTests(isJit: boolean) {
                             async.done();
                           })}));
 
-        it('should assign a directive to a var-',
+        it('should assign a directive to a ref-',
            inject(
                [TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
                  tcb.overrideView(MyComp, new ViewMetadata({
@@ -588,7 +588,7 @@ function declareTests(isJit: boolean) {
                    tcb.overrideView(
                           MyComp, new ViewMetadata({
                             template:
-                                '<template [ngIf]="true">{{alice.ctxProp}}</template>|{{alice.ctxProp}}|<child-cmp var-alice></child-cmp>',
+                                '<template [ngIf]="true">{{alice.ctxProp}}</template>|{{alice.ctxProp}}|<child-cmp ref-alice></child-cmp>',
                             directives: [ChildComp, NgIf]
                           }))
 
@@ -600,14 +600,14 @@ function declareTests(isJit: boolean) {
                          async.done();
                        })}));
 
-        it('should assign two component instances each with a var-',
+        it('should assign two component instances each with a ref-',
            inject(
                [TestComponentBuilder, AsyncTestCompleter],
                (tcb: TestComponentBuilder, async) => {
                    tcb.overrideView(
                           MyComp, new ViewMetadata({
                             template:
-                                '<p><child-cmp var-alice></child-cmp><child-cmp var-bob></child-cmp></p>',
+                                '<p><child-cmp ref-alice></child-cmp><child-cmp ref-bob></child-cmp></p>',
                             directives: [ChildComp]
                           }))
 
@@ -622,7 +622,7 @@ function declareTests(isJit: boolean) {
                          async.done();
                        })}));
 
-        it('should assign the component instance to a var- with shorthand syntax',
+        it('should assign the component instance to a ref- with shorthand syntax',
            inject([TestComponentBuilder, AsyncTestCompleter],
                   (tcb: TestComponentBuilder,
                    async) => {tcb.overrideView(MyComp, new ViewMetadata({
@@ -643,7 +643,7 @@ function declareTests(isJit: boolean) {
            inject([TestComponentBuilder, AsyncTestCompleter],
                   (tcb: TestComponentBuilder, async) => {
                       tcb.overrideView(MyComp, new ViewMetadata({
-                                         template: '<div><div var-alice><i>Hello</i></div></div>'
+                                         template: '<div><div ref-alice><i>Hello</i></div></div>'
                                        }))
 
                           .createAsync(MyComp)
@@ -657,11 +657,26 @@ function declareTests(isJit: boolean) {
                             async.done();
                           })}));
 
+        it('should assign the TemplateRef to a user-defined variable',
+           inject([TestComponentBuilder, AsyncTestCompleter],
+                  (tcb: TestComponentBuilder, async) => {
+                      tcb.overrideView(MyComp, new ViewMetadata(
+                                                   {template: '<template ref-alice></template>'}))
+
+                          .createAsync(MyComp)
+                          .then((fixture) => {
+
+                            var value = fixture.debugElement.childNodes[0].getLocal('alice');
+                            expect(value).toBeAnInstanceOf(TemplateRef_);
+
+                            async.done();
+                          })}));
+
         it('should preserve case',
            inject(
                [TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
                  tcb.overrideView(MyComp, new ViewMetadata({
-                                    template: '<p><child-cmp var-superAlice></child-cmp></p>',
+                                    template: '<p><child-cmp ref-superAlice></child-cmp></p>',
                                     directives: [ChildComp]
                                   }))
 
@@ -673,14 +688,16 @@ function declareTests(isJit: boolean) {
                        async.done();
                      });
                }));
+      });
 
+      describe('variables', () => {
         it('should allow to use variables in a for loop',
            inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder,
                                                                async) => {
              tcb.overrideView(
                     MyComp, new ViewMetadata({
                       template:
-                          '<template ngFor [ngForOf]="[1]" var-i><child-cmp-no-template #cmp></child-cmp-no-template>{{i}}-{{cmp.ctxProp}}</template>',
+                          '<template ngFor [ngForOf]="[1]" let-i><child-cmp-no-template #cmp></child-cmp-no-template>{{i}}-{{cmp.ctxProp}}</template>',
                       directives: [ChildCompNoTemplate, NgFor]
                     }))
 
@@ -2281,7 +2298,7 @@ class ToolbarViewContainer {
 
 @Component({
   selector: 'toolbar',
-  template: 'TOOLBAR(<div *ngFor="var part of query" [toolbarVc]="part"></div>)',
+  template: 'TOOLBAR(<div *ngFor="let  part of query" [toolbarVc]="part"></div>)',
   directives: [ToolbarViewContainer, NgFor]
 })
 @Injectable()
@@ -2489,7 +2506,7 @@ class DirectiveThrowingAnError {
 @Component({
   selector: 'component-with-template',
   directives: [NgFor],
-  template: `No View Decorator: <div *ngFor="#item of items">{{item}}</div>`
+  template: `No View Decorator: <div *ngFor="let item of items">{{item}}</div>`
 })
 class ComponentWithTemplate {
   items = [1, 2, 3];
diff --git a/modules/angular2/test/core/linker/query_integration_spec.ts b/modules/angular2/test/core/linker/query_integration_spec.ts
index 9edf2dbafb..c11b7af6bd 100644
--- a/modules/angular2/test/core/linker/query_integration_spec.ts
+++ b/modules/angular2/test/core/linker/query_integration_spec.ts
@@ -246,7 +246,7 @@ export function main() {
          inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
            var template =
                '<div text="1"></div>' +
-               '<needs-query text="2"><div *ngFor="var i of list" [text]="i"></div></needs-query>' +
+               '<needs-query text="2"><div *ngFor="let  i of list" [text]="i"></div></needs-query>' +
                '<div text="4"></div>';
 
            tcb.overrideTemplate(MyComp, template)
@@ -268,7 +268,7 @@ export function main() {
     describe('query for TemplateRef', () => {
       it('should find TemplateRefs in the light and shadow dom',
          inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
-           var template = '<needs-tpl><template var-x="light"></template></needs-tpl>';
+           var template = '<needs-tpl><template let-x="light"></template></needs-tpl>';
            tcb.overrideTemplate(MyComp, template)
                .createAsync(MyComp)
                .then((view) => {
@@ -284,6 +284,23 @@ export function main() {
                });
          }));
 
+      it('should find named TemplateRefs',
+         inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
+           var template =
+               '<needs-named-tpl><template let-x="light" #tpl></template></needs-named-tpl>';
+           tcb.overrideTemplate(MyComp, template)
+               .createAsync(MyComp)
+               .then((view) => {
+                 view.detectChanges();
+                 var needsTpl: NeedsNamedTpl = view.debugElement.children[0].inject(NeedsNamedTpl);
+                 expect(needsTpl.vc.createEmbeddedView(needsTpl.contentTpl).hasLocal('light'))
+                     .toBe(true);
+                 expect(needsTpl.vc.createEmbeddedView(needsTpl.viewTpl).hasLocal('shadow'))
+                     .toBe(true);
+
+                 async.done();
+               });
+         }));
     });
 
     describe('read a different token', () => {
@@ -462,9 +479,10 @@ export function main() {
     describe("querying by var binding", () => {
       it('should contain all the child directives in the light dom with the given var binding',
          inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
-           var template = '<needs-query-by-var-binding #q>' +
-                          '<div *ngFor="#item of list" [text]="item" #textLabel="textDir"></div>' +
-                          '</needs-query-by-var-binding>';
+           var template =
+               '<needs-query-by-ref-binding #q>' +
+               '<div *ngFor="let item of list" [text]="item" #textLabel="textDir"></div>' +
+               '</needs-query-by-ref-binding>';
 
            tcb.overrideTemplate(MyComp, template)
                .createAsync(MyComp)
@@ -484,10 +502,10 @@ export function main() {
 
       it('should support querying by multiple var bindings',
          inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
-           var template = '<needs-query-by-var-bindings #q>' +
+           var template = '<needs-query-by-ref-bindings #q>' +
                           '<div text="one" #textLabel1="textDir"></div>' +
                           '<div text="two" #textLabel2="textDir"></div>' +
-                          '</needs-query-by-var-bindings>';
+                          '</needs-query-by-ref-bindings>';
 
            tcb.overrideTemplate(MyComp, template)
                .createAsync(MyComp)
@@ -504,9 +522,10 @@ export function main() {
 
       it('should support dynamically inserted directives',
          inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
-           var template = '<needs-query-by-var-binding #q>' +
-                          '<div *ngFor="#item of list" [text]="item" #textLabel="textDir"></div>' +
-                          '</needs-query-by-var-binding>';
+           var template =
+               '<needs-query-by-ref-binding #q>' +
+               '<div *ngFor="let item of list" [text]="item" #textLabel="textDir"></div>' +
+               '</needs-query-by-ref-binding>';
 
            tcb.overrideTemplate(MyComp, template)
                .createAsync(MyComp)
@@ -529,11 +548,11 @@ export function main() {
 
       it('should contain all the elements in the light dom with the given var binding',
          inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
-           var template = '<needs-query-by-var-binding #q>' +
-                          '<div template="ngFor: #item of list">' +
+           var template = '<needs-query-by-ref-binding #q>' +
+                          '<div template="ngFor: let item of list">' +
                           '<div #textLabel>{{item}}</div>' +
                           '</div>' +
-                          '</needs-query-by-var-binding>';
+                          '</needs-query-by-ref-binding>';
 
            tcb.overrideTemplate(MyComp, template)
                .createAsync(MyComp)
@@ -570,7 +589,7 @@ export function main() {
 
       it('should support querying the view by using a view query',
          inject([TestComponentBuilder, AsyncTestCompleter], (tcb: TestComponentBuilder, async) => {
-           var template = '<needs-view-query-by-var-binding #q></needs-view-query-by-var-binding>';
+           var template = '<needs-view-query-by-ref-binding #q></needs-view-query-by-ref-binding>';
 
            tcb.overrideTemplate(MyComp, template)
                .createAsync(MyComp)
@@ -859,7 +878,7 @@ class InertDirective {
 @Component({
   selector: 'needs-query',
   directives: [NgFor, TextDirective],
-  template: '<div text="ignoreme"></div><b *ngFor="var dir of query">{{dir.text}}|</b>'
+  template: '<div text="ignoreme"></div><b *ngFor="let  dir of query">{{dir.text}}|</b>'
 })
 @Injectable()
 class NeedsQuery {
@@ -878,7 +897,7 @@ class NeedsFourQueries {
 @Component({
   selector: 'needs-query-desc',
   directives: [NgFor],
-  template: '<div *ngFor="var dir of query">{{dir.text}}|</div>'
+  template: '<div *ngFor="let  dir of query">{{dir.text}}|</div>'
 })
 @Injectable()
 class NeedsQueryDesc {
@@ -888,7 +907,7 @@ class NeedsQueryDesc {
   }
 }
 
-@Component({selector: 'needs-query-by-var-binding', directives: [], template: '<ng-content>'})
+@Component({selector: 'needs-query-by-ref-binding', directives: [], template: '<ng-content>'})
 @Injectable()
 class NeedsQueryByLabel {
   query: QueryList<any>;
@@ -898,7 +917,7 @@ class NeedsQueryByLabel {
 }
 
 @Component({
-  selector: 'needs-view-query-by-var-binding',
+  selector: 'needs-view-query-by-ref-binding',
   directives: [],
   template: '<div #textLabel>text</div>'
 })
@@ -908,7 +927,7 @@ class NeedsViewQueryByLabel {
   constructor(@ViewQuery("textLabel") query: QueryList<any>) { this.query = query; }
 }
 
-@Component({selector: 'needs-query-by-var-bindings', directives: [], template: '<ng-content>'})
+@Component({selector: 'needs-query-by-ref-bindings', directives: [], template: '<ng-content>'})
 @Injectable()
 class NeedsQueryByTwoLabels {
   query: QueryList<any>;
@@ -920,7 +939,7 @@ class NeedsQueryByTwoLabels {
 @Component({
   selector: 'needs-query-and-project',
   directives: [NgFor],
-  template: '<div *ngFor="var dir of query">{{dir.text}}|</div><ng-content></ng-content>'
+  template: '<div *ngFor="let  dir of query">{{dir.text}}|</div><ng-content></ng-content>'
 })
 @Injectable()
 class NeedsQueryAndProject {
@@ -975,7 +994,7 @@ class NeedsViewQueryNestedIf {
   selector: 'needs-view-query-order',
   directives: [NgFor, TextDirective, InertDirective],
   template: '<div text="1"></div>' +
-                '<div *ngFor="var i of list" [text]="i"></div>' +
+                '<div *ngFor="let  i of list" [text]="i"></div>' +
                 '<div text="4"></div>'
 })
 @Injectable()
@@ -992,7 +1011,7 @@ class NeedsViewQueryOrder {
   selector: 'needs-view-query-order-with-p',
   directives: [NgFor, TextDirective, InertDirective],
   template: '<div dir><div text="1"></div>' +
-                '<div *ngFor="var i of list" [text]="i"></div>' +
+                '<div *ngFor="let  i of list" [text]="i"></div>' +
                 '<div text="4"></div></div>'
 })
 @Injectable()
@@ -1005,7 +1024,7 @@ class NeedsViewQueryOrderWithParent {
   }
 }
 
-@Component({selector: 'needs-tpl', template: '<template var-x="shadow"></template>'})
+@Component({selector: 'needs-tpl', template: '<template let-x="shadow"></template>'})
 class NeedsTpl {
   viewQuery: QueryList<TemplateRef>;
   query: QueryList<TemplateRef>;
@@ -1016,6 +1035,13 @@ class NeedsTpl {
   }
 }
 
+@Component({selector: 'needs-named-tpl', template: '<template #tpl let-x="shadow"></template>'})
+class NeedsNamedTpl {
+  @ViewChild('tpl') viewTpl: TemplateRef;
+  @ContentChild('tpl') contentTpl: TemplateRef;
+  constructor(public vc: ViewContainerRef) {}
+}
+
 @Component({selector: 'needs-content-children-read', template: ''})
 class NeedsContentChildrenWithRead {
   @ContentChildren('q', {read: TextDirective}) textDirChildren: QueryList<TextDirective>;
@@ -1076,6 +1102,7 @@ class NeedsViewContainerWithRead {
     NeedsViewChild,
     NeedsContentChild,
     NeedsTpl,
+    NeedsNamedTpl,
     TextDirective,
     InertDirective,
     NgIf,
@@ -1097,4 +1124,4 @@ class MyComp {
     this.shouldShow = false;
     this.list = ['1d', '2d', '3d'];
   }
-}
\ No newline at end of file
+}
diff --git a/modules/angular2/test/platform/browser/bootstrap_spec.ts b/modules/angular2/test/platform/browser/bootstrap_spec.ts
index fa7240e86f..f6c47f431a 100644
--- a/modules/angular2/test/platform/browser/bootstrap_spec.ts
+++ b/modules/angular2/test/platform/browser/bootstrap_spec.ts
@@ -92,6 +92,7 @@ class _ArrayLogger {
 
 class DummyConsole implements Console {
   log(message) {}
+  warn(message) {}
 }
 
 export function main() {
diff --git a/modules/angular2/test/public_api_spec.ts b/modules/angular2/test/public_api_spec.ts
index a7644bf57b..5ddf757ecb 100644
--- a/modules/angular2/test/public_api_spec.ts
+++ b/modules/angular2/test/public_api_spec.ts
@@ -116,6 +116,7 @@ var NG_COMPILER = [
   "TEMPLATE_TRANSFORMS",
   "TextAst",
   "VariableAst",
+  "ReferenceAst",
   "XHR",
   "templateVisitAll",
   "CompileDiDependencyMetadata",
diff --git a/modules/angular2/test/router/integration/bootstrap_spec.ts b/modules/angular2/test/router/integration/bootstrap_spec.ts
index 06bac9634d..dbdcf18877 100644
--- a/modules/angular2/test/router/integration/bootstrap_spec.ts
+++ b/modules/angular2/test/router/integration/bootstrap_spec.ts
@@ -43,6 +43,7 @@ import {MockApplicationRef} from 'angular2/src/mock/mock_application_ref';
 
 class DummyConsole implements Console {
   log(message) {}
+  warn(message) {}
 }
 
 export function main() {
diff --git a/modules/angular2/test/router/route_config/route_config_spec.ts b/modules/angular2/test/router/route_config/route_config_spec.ts
index 0321b2f8db..9d62c0522a 100644
--- a/modules/angular2/test/router/route_config/route_config_spec.ts
+++ b/modules/angular2/test/router/route_config/route_config_spec.ts
@@ -35,6 +35,7 @@ class _ArrayLogger {
 
 class DummyConsole implements Console {
   log(message) {}
+  warn(message) {}
 }
 
 export function main() {
diff --git a/modules/benchmarks/src/costs/index.ts b/modules/benchmarks/src/costs/index.ts
index 2576e4d7cc..b998f8ccec 100644
--- a/modules/benchmarks/src/costs/index.ts
+++ b/modules/benchmarks/src/costs/index.ts
@@ -63,15 +63,15 @@ class DynamicDummy {
   directives: [NgIf, NgFor, DummyComponent, DummyDirective, DynamicDummy],
   template: `
     <div *ngIf="testingPlainComponents">
-      <dummy *ngFor="#i of list"></dummy>
+      <dummy *ngFor="let i of list"></dummy>
     </div>
 
     <div *ngIf="testingWithDirectives">
-      <dummy dummy-decorator *ngFor="#i of list"></dummy>
+      <dummy dummy-decorator *ngFor="let i of list"></dummy>
     </div>
 
     <div *ngIf="testingDynamicComponents">
-      <dynamic-dummy *ngFor="#i of list"></dynamic-dummy>
+      <dynamic-dummy *ngFor="let i of list"></dynamic-dummy>
     </div>
   `
 })
diff --git a/modules/benchmarks/src/largetable/largetable_benchmark.ts b/modules/benchmarks/src/largetable/largetable_benchmark.ts
index 352b12e00c..b6e44cdd15 100644
--- a/modules/benchmarks/src/largetable/largetable_benchmark.ts
+++ b/modules/benchmarks/src/largetable/largetable_benchmark.ts
@@ -214,22 +214,22 @@ class CellData {
   template: `
       <table [ngSwitch]="benchmarkType">
         <tbody template="ngSwitchWhen 'interpolation'">
-          <tr template="ngFor #row of data">
-            <td template="ngFor #column of row">
+          <tr template="ngFor let row of data">
+            <td template="ngFor let column of row">
               {{column.i}}:{{column.j}}|
             </td>
           </tr>
         </tbody>
         <tbody template="ngSwitchWhen 'interpolationAttr'">
-          <tr template="ngFor #row of data">
-            <td template="ngFor #column of row" attr.i="{{column.i}}" attr.j="{{column.j}}">
+          <tr template="ngFor let row of data">
+            <td template="ngFor let column of row" attr.i="{{column.i}}" attr.j="{{column.j}}">
               i,j attrs
             </td>
           </tr>
         </tbody>
         <tbody template="ngSwitchWhen 'interpolationFn'">
-          <tr template="ngFor #row of data">
-            <td template="ngFor #column of row">
+          <tr template="ngFor let row of data">
+            <td template="ngFor let column of row">
               {{column.iFn()}}:{{column.jFn()}}|
             </td>
           </tr>
diff --git a/modules/benchmarks/src/naive_infinite_scroll/app.ts b/modules/benchmarks/src/naive_infinite_scroll/app.ts
index a6485a1e30..6aa15aa312 100644
--- a/modules/benchmarks/src/naive_infinite_scroll/app.ts
+++ b/modules/benchmarks/src/naive_infinite_scroll/app.ts
@@ -19,7 +19,7 @@ import {Component, Directive} from 'angular2/core';
     </div>
     <div template="ngIf scrollAreas.length > 0">
       <p>Following tables are only here to add weight to the UI:</p>
-      <scroll-area template="ngFor #scrollArea of scrollAreas"></scroll-area>
+      <scroll-area template="ngFor let scrollArea of scrollAreas"></scroll-area>
     </div>
   </div>`
 })
diff --git a/modules/benchmarks/src/naive_infinite_scroll/cells.ts b/modules/benchmarks/src/naive_infinite_scroll/cells.ts
index 8f0a8d4d90..96c608b964 100644
--- a/modules/benchmarks/src/naive_infinite_scroll/cells.ts
+++ b/modules/benchmarks/src/naive_infinite_scroll/cells.ts
@@ -55,7 +55,7 @@ export class Stage {
   directives: [NgFor],
   template: `
       <div [style.width.px]="cellWidth">
-          <button template="ngFor #stage of stages"
+          <button template="ngFor let stage of stages"
                   [disabled]="stage.isDisabled"
                   [style.background-color]="stage.backgroundColor"
                   on-click="setStage(stage)">
diff --git a/modules/benchmarks/src/naive_infinite_scroll/scroll_area.ts b/modules/benchmarks/src/naive_infinite_scroll/scroll_area.ts
index 364d8e8ca8..a08e7d7259 100644
--- a/modules/benchmarks/src/naive_infinite_scroll/scroll_area.ts
+++ b/modules/benchmarks/src/naive_infinite_scroll/scroll_area.ts
@@ -28,7 +28,7 @@ import {NgFor} from 'angular2/common';
             <div id="padding"></div>
             <div id="inner">
                 <scroll-item
-                    template="ngFor #item of visibleItems"
+                    template="ngFor let item of visibleItems"
                     [offering]="item">
                 </scroll-item>
             </div>
diff --git a/modules/playground/src/http/http_comp.ts b/modules/playground/src/http/http_comp.ts
index db5f148c47..8f9dbf906c 100644
--- a/modules/playground/src/http/http_comp.ts
+++ b/modules/playground/src/http/http_comp.ts
@@ -7,7 +7,7 @@ import 'rxjs/add/operator/map';
   template: `
     <h1>people</h1>
     <ul class="people">
-      <li *ngFor="#person of people">
+      <li *ngFor="let person of people">
         hello, {{person['name']}}
       </li>
     </ul>
diff --git a/modules/playground/src/jsonp/jsonp_comp.ts b/modules/playground/src/jsonp/jsonp_comp.ts
index 00b3f333bb..185dbf8bec 100644
--- a/modules/playground/src/jsonp/jsonp_comp.ts
+++ b/modules/playground/src/jsonp/jsonp_comp.ts
@@ -7,7 +7,7 @@ import {ObservableWrapper} from 'angular2/src/facade/async';
   template: `
     <h1>people</h1>
     <ul class="people">
-      <li *ngFor="#person of people">
+      <li *ngFor="let person of people">
         hello, {{person['name']}}
       </li>
     </ul>
diff --git a/modules/playground/src/model_driven_forms/index.ts b/modules/playground/src/model_driven_forms/index.ts
index 73a6a865dd..fecb2bde73 100644
--- a/modules/playground/src/model_driven_forms/index.ts
+++ b/modules/playground/src/model_driven_forms/index.ts
@@ -102,7 +102,7 @@ class ShowError {
       <p>
         <label for="country">Country</label>
         <select id="country" ngControl="country">
-          <option *ngFor="#c of countries" [value]="c">{{c}}</option>
+          <option *ngFor="let c of countries" [value]="c">{{c}}</option>
         </select>
       </p>
 
diff --git a/modules/playground/src/order_management/index.ts b/modules/playground/src/order_management/index.ts
index 96a344703f..611d7539bf 100644
--- a/modules/playground/src/order_management/index.ts
+++ b/modules/playground/src/order_management/index.ts
@@ -82,7 +82,7 @@ class DataService {
   selector: 'order-list-cmp',
   template: `
     <h1>Orders</h1>
-  	<div *ngFor="#order of orders" [class.warning]="order.total > order.limit">
+  	<div *ngFor="let order of orders" [class.warning]="order.total > order.limit">
       <div>
         <label>Customer name:</label>
         {{order.customerName}}
@@ -173,7 +173,7 @@ class OrderItemComponent {
 
       <h2>Items</h2>
       <button (click)="addItem()">Add Item</button>
-      <order-item-cmp *ngFor="#item of order.items" [item]="item" (delete)="deleteItem(item)"></order-item-cmp>
+      <order-item-cmp *ngFor="let item of order.items" [item]="item" (delete)="deleteItem(item)"></order-item-cmp>
     </div>
   `,
   directives: [FORM_DIRECTIVES, OrderItemComponent, NgFor, NgIf]
diff --git a/modules/playground/src/person_management/index.ts b/modules/playground/src/person_management/index.ts
index 81419a7244..821b4eaf41 100644
--- a/modules/playground/src/person_management/index.ts
+++ b/modules/playground/src/person_management/index.ts
@@ -161,7 +161,7 @@ class PersonsDetailComponent {
     <h1>FullName Demo</h1>
     <div>
       <ul>
-  		  <li *ngFor="#person of persons">
+  		  <li *ngFor="let person of persons">
   			  <label (click)="select(person)">{{person.fullName}}</label>
   			</li>
   	 </ul>
diff --git a/modules/playground/src/routing/drafts.html b/modules/playground/src/routing/drafts.html
index 8e5574d8ef..6cfee645bd 100644
--- a/modules/playground/src/routing/drafts.html
+++ b/modules/playground/src/routing/drafts.html
@@ -2,7 +2,7 @@
   <h2 class="page-title">Drafts</h2>
 
   <ol class="inbox-list">
-    <li *ngFor="#item of items" class="inbox-item-record">
+    <li *ngFor="let item of items" class="inbox-item-record">
       <a id="item-{{ item.id }}"
          [routerLink]="['/DetailPage', {'id':item.id}]">
         {{ item.subject }}</a>
diff --git a/modules/playground/src/routing/inbox.html b/modules/playground/src/routing/inbox.html
index 303a48ddbd..4568060601 100644
--- a/modules/playground/src/routing/inbox.html
+++ b/modules/playground/src/routing/inbox.html
@@ -2,7 +2,7 @@
   <h2 class="page-title">Inbox</h2>
 
   <ol class="inbox-list">
-    <li *ngFor="#item of items" class="inbox-item-record">
+    <li *ngFor="let item of items" class="inbox-item-record">
       <a id="item-{{ item.id }}"
          [routerLink]="['/DetailPage', {'id':item.id}]">{{ item.subject }}</a>
     </li>
diff --git a/modules/playground/src/template_driven_forms/index.ts b/modules/playground/src/template_driven_forms/index.ts
index adaef4ebe8..a7b75c7c1d 100644
--- a/modules/playground/src/template_driven_forms/index.ts
+++ b/modules/playground/src/template_driven_forms/index.ts
@@ -122,7 +122,7 @@ class ShowError {
       <p>
         <label for="country">Country</label>
         <select id="country" ngControl="country" [(ngModel)]="model.country">
-          <option *ngFor="#c of countries" [value]="c">{{c}}</option>
+          <option *ngFor="let c of countries" [value]="c">{{c}}</option>
         </select>
       </p>
 
diff --git a/modules/playground/src/todo/todo.html b/modules/playground/src/todo/todo.html
index 510e4aacd9..6799ec7569 100644
--- a/modules/playground/src/todo/todo.html
+++ b/modules/playground/src/todo/todo.html
@@ -18,7 +18,7 @@
 
     <ul id="todo-list">
 
-      <li *ngFor="#todo of todoStore.list">
+      <li *ngFor="let todo of todoStore.list">
 
         <div class="view"
             [class.hidden]="todoEdit == todo">
diff --git a/modules/playground/src/web_workers/images/image_demo.html b/modules/playground/src/web_workers/images/image_demo.html
index 9bed5cab1f..1c36732656 100644
--- a/modules/playground/src/web_workers/images/image_demo.html
+++ b/modules/playground/src/web_workers/images/image_demo.html
@@ -7,7 +7,7 @@
 </nav>
 <section id="main" class="container">
   <div class="row">
-    <div *ngFor="#image of images" class="col s12 m2">
+    <div *ngFor="let image of images" class="col s12 m2">
       <div class="card">
         <div class="card-image">
           <img [src]="image.src" [class.grey]="image.filtering"/>
diff --git a/modules/playground/src/web_workers/todo/todo.html b/modules/playground/src/web_workers/todo/todo.html
index a5f845e300..d65042c440 100644
--- a/modules/playground/src/web_workers/todo/todo.html
+++ b/modules/playground/src/web_workers/todo/todo.html
@@ -17,7 +17,7 @@
 
     <ul id="todo-list">
 
-      <li *ngFor="#todo of todoStore.list" [class.hidden]="hideActive && !todo.completed || hideCompleted && todo.completed">
+      <li *ngFor="let todo of todoStore.list" [class.hidden]="hideActive && !todo.completed || hideCompleted && todo.completed">
         <div class="view"
             [class.hidden]="todoEdit == todo">
 
diff --git a/modules/playground/src/zippy_component/index.ts b/modules/playground/src/zippy_component/index.ts
index 2f8c520d14..4394a53d79 100644
--- a/modules/playground/src/zippy_component/index.ts
+++ b/modules/playground/src/zippy_component/index.ts
@@ -9,7 +9,7 @@ import {Zippy} from './zippy';
       This is some content.
     </zippy>
     <ul>
-      <li *ngFor="var log of logs">{{log}}</li>
+      <li *ngFor="let  log of logs">{{log}}</li>
     </ul>
   `,
   directives: [Zippy]
diff --git a/modules_dart/angular2_testing/test/angular2_testing_test.dart b/modules_dart/angular2_testing/test/angular2_testing_test.dart
index e0bfd82e77..1d1c218f00 100644
--- a/modules_dart/angular2_testing/test/angular2_testing_test.dart
+++ b/modules_dart/angular2_testing/test/angular2_testing_test.dart
@@ -36,7 +36,7 @@ class ExternalTemplateComponent {
 class MyToken {}
 
 const TEMPLATE =
-    '<div><copy-me template=\'ngFor #item of items\'>{{item.toString()}};</copy-me></div>';
+    '<div><copy-me template=\'ngFor let item of items\'>{{item.toString()}};</copy-me></div>';
 
 void main() {
   initAngularTests();
diff --git a/modules_dart/transform/lib/src/transform/common/ng_compiler.dart b/modules_dart/transform/lib/src/transform/common/ng_compiler.dart
index 7e3246578b..ae5f76e7d3 100644
--- a/modules_dart/transform/lib/src/transform/common/ng_compiler.dart
+++ b/modules_dart/transform/lib/src/transform/common/ng_compiler.dart
@@ -2,6 +2,7 @@ library angular2.transform.template_compiler.ng_compiler;
 
 import 'package:angular2/src/compiler/config.dart';
 import 'package:angular2/src/compiler/view_compiler/view_compiler.dart';
+import 'package:angular2/src/core/console.dart';
 import 'package:angular2/src/compiler/html_parser.dart';
 import 'package:angular2/src/compiler/style_compiler.dart';
 import 'package:angular2/src/compiler/offline_compiler.dart';
@@ -31,6 +32,7 @@ OfflineCompiler createTemplateCompiler(AssetReader reader,
       parser,
       new DomElementSchemaRegistry(),
       _htmlParser,
+      new Console(),
       [new RouterLinkTransform(parser)]);
 
   return new OfflineCompiler(
diff --git a/tools/public_api_guard/public_api_spec.ts b/tools/public_api_guard/public_api_spec.ts
index d7b222314b..85fa2dbbfe 100644
--- a/tools/public_api_guard/public_api_spec.ts
+++ b/tools/public_api_guard/public_api_spec.ts
@@ -848,15 +848,14 @@ const COMPILER = [
   'BoundTextAst.constructor(value:AST, ngContentIndex:number, sourceSpan:ParseSourceSpan)',
   'BoundTextAst.visit(visitor:TemplateAstVisitor, context:any):any',
   'DirectiveAst',
-  'DirectiveAst.constructor(directive:CompileDirectiveMetadata, inputs:BoundDirectivePropertyAst[], hostProperties:BoundElementPropertyAst[], hostEvents:BoundEventAst[], exportAsVars:VariableAst[], sourceSpan:ParseSourceSpan)',
+  'DirectiveAst.constructor(directive:CompileDirectiveMetadata, inputs:BoundDirectivePropertyAst[], hostProperties:BoundElementPropertyAst[], hostEvents:BoundEventAst[], sourceSpan:ParseSourceSpan)',
   'DirectiveAst.visit(visitor:TemplateAstVisitor, context:any):any',
   'ElementAst',
-  'ElementAst.constructor(name:string, attrs:AttrAst[], inputs:BoundElementPropertyAst[], outputs:BoundEventAst[], exportAsVars:VariableAst[], directives:DirectiveAst[], providers:ProviderAst[], hasViewContainer:boolean, children:TemplateAst[], ngContentIndex:number, sourceSpan:ParseSourceSpan)',
+  'ElementAst.constructor(name:string, attrs:AttrAst[], inputs:BoundElementPropertyAst[], outputs:BoundEventAst[], references:ReferenceAst[], directives:DirectiveAst[], providers:ProviderAst[], hasViewContainer:boolean, children:TemplateAst[], ngContentIndex:number, sourceSpan:ParseSourceSpan)',
   'ElementAst.getComponent():CompileDirectiveMetadata',
-  'ElementAst.isBound():boolean',
   'ElementAst.visit(visitor:TemplateAstVisitor, context:any):any',
   'EmbeddedTemplateAst',
-  'EmbeddedTemplateAst.constructor(attrs:AttrAst[], outputs:BoundEventAst[], vars:VariableAst[], directives:DirectiveAst[], providers:ProviderAst[], hasViewContainer:boolean, children:TemplateAst[], ngContentIndex:number, sourceSpan:ParseSourceSpan)',
+  'EmbeddedTemplateAst.constructor(attrs:AttrAst[], outputs:BoundEventAst[], references:ReferenceAst[], variables:VariableAst[], directives:DirectiveAst[], providers:ProviderAst[], hasViewContainer:boolean, children:TemplateAst[], ngContentIndex:number, sourceSpan:ParseSourceSpan)',
   'EmbeddedTemplateAst.visit(visitor:TemplateAstVisitor, context:any):any',
   'NgContentAst',
   'NgContentAst.constructor(index:number, ngContentIndex:number, sourceSpan:ParseSourceSpan)',
@@ -890,6 +889,10 @@ const COMPILER = [
   'VariableAst',
   'VariableAst.constructor(name:string, value:string, sourceSpan:ParseSourceSpan)',
   'VariableAst.visit(visitor:TemplateAstVisitor, context:any):any',
+  'ReferenceAst',
+  'ReferenceAst.constructor(name:string, value:CompileTokenMetadata, sourceSpan:ParseSourceSpan)',
+  'ReferenceAst.visit(visitor:TemplateAstVisitor, context:any):any',
+  'TemplateAstVisitor.visitReference(ast:ReferenceAst, context:any):any',
   'XHR',
   'XHR.get(url:string):Promise<string>',
   'const COMPILER_PROVIDERS:Array<Type|Provider|any[]>',