diff --git a/packages/compiler/src/render3/r3_view_compiler.ts b/packages/compiler/src/render3/r3_view_compiler.ts
index 610cb3d31a..35357b0637 100644
--- a/packages/compiler/src/render3/r3_view_compiler.ts
+++ b/packages/compiler/src/render3/r3_view_compiler.ts
@@ -641,7 +641,7 @@ class TemplateDefinitionBuilder implements TemplateAstVisitor, LocalResolver {
     element.outputs.forEach((outputAst: BoundEventAst) => {
       const functionName = `${this.templateName}_${element.name}_${outputAst.name}_listener`;
       const bindingExpr = convertActionBinding(
-          this, implicit, outputAst.handler, 'b', () => error('Unexpected interpolation'));
+          this, o.variable('ctx'), outputAst.handler, 'b', () => error('Unexpected interpolation'));
       const handler = o.fn(
           [new o.FnParam('$event', o.DYNAMIC_TYPE)],
           [...bindingExpr.stmts, new o.ReturnStatement(bindingExpr.allowDefault)], o.INFERRED_TYPE,
diff --git a/packages/compiler/test/render3/r3_view_compiler_template_spec.ts b/packages/compiler/test/render3/r3_view_compiler_template_spec.ts
new file mode 100644
index 0000000000..6e38b1d6c0
--- /dev/null
+++ b/packages/compiler/test/render3/r3_view_compiler_template_spec.ts
@@ -0,0 +1,97 @@
+/**
+ * @license
+ * Copyright Google Inc. All Rights Reserved.
+ *
+ * Use of this source code is governed by an MIT-style license that can be
+ * found in the LICENSE file at https://angular.io/license
+ */
+
+import {MockDirectory, setup} from '../aot/test_util';
+import {compile, expectEmit} from './mock_compile';
+
+/* These tests are codified version of the tests in compiler_canonical_spec.ts. Every
+  * test in compiler_canonical_spec.ts should have a corresponding test here.
+  */
+describe('compiler compliance: listen()', () => {
+  const angularFiles = setup({
+    compileAngular: true,
+    compileAnimations: false,
+    compileCommon: true,
+  });
+
+  it('should create correctly bind to context in nested template', () => {
+    const files = {
+      app: {
+        'spec.ts': `
+              import {Component, NgModule} from '@angular/core';
+              import {CommonModule} from '@angular/common';
+
+              @Component({
+                selector: 'my-component',
+                template: \`
+                  <ul *ngFor="let outer of items">
+                    <li *ngFor="let middle of outer.items">
+                      <div *ngFor="let inner of middle.items" (click)="onClick(outer, middle, inner)">
+                        {{format(outer, middle, inner)}}
+                      </div>
+                    </li>
+                  </ul>\`
+              })
+              export class MyComponent {
+                format(outer: any, middle: any, inner: any) { }
+                onClick(outer: any, middle: any, inner: any) { }
+              }
+
+              @NgModule({declarations: [MyComponent], imports: [CommonModule]})
+              export class MyModule {}
+          `
+      }
+    };
+
+    // The template should look like this (where IDENT is a wild card for an identifier):
+    const template = `
+      template:function MyComponent_Template(ctx:any,cm:boolean){
+        if (cm) { 
+          i0.ɵC(0,MyComponent_NgForOf_Template_0,null,_c0); 
+        }
+        i0.ɵp(0,'ngForOf',i0.ɵb(ctx.items));
+        function MyComponent_NgForOf_Template_0(ctx0:any,cm:boolean) {
+          if (cm) {
+            i0.ɵE(0,'ul');
+            i0.ɵC(1,MyComponent_NgForOf_NgForOf_Template_1,null,_c0);
+            i0.ɵe();
+          }
+          const $_r0$ = ctx0.$implicit;
+          i0.ɵp(1,'ngForOf',i0.ɵb($_r0$.items));
+          function MyComponent_NgForOf_NgForOf_Template_1(ctx1:any,cm:boolean) {
+            if (cm) {
+              i0.ɵE(0,'li');
+              i0.ɵC(1,MyComponent_NgForOf_NgForOf_NgForOf_Template_1,null,_c0);
+              i0.ɵe();
+            }
+            const $_r1$ = ctx1.$implicit;
+            i0.ɵp(1,'ngForOf',i0.ɵb($_r1$.items));
+            function MyComponent_NgForOf_NgForOf_NgForOf_Template_1(ctx2:any,cm:boolean) {
+              if (cm) {
+                i0.ɵE(0,'div');
+                i0.ɵL('click',function MyComponent_NgForOf_NgForOf_NgForOf_Template_1_div_click_listener($event:any){
+                  const pd_b:any = ((<any>ctx.onClick($_r0$,$_r1$,$_r2$)) !== false);
+                  return pd_b;
+                });
+                i0.ɵT(1);
+                i0.ɵe();
+              }
+              const $_r2$ = ctx2.$implicit;
+              i0.ɵt(1,i0.ɵi1(' ',ctx.format($_r0$,$_r1$,$_r2$),' '));
+            }
+          }
+        }
+      }`;
+
+
+    const result = compile(files, angularFiles);
+
+    expectEmit(result.source, template, 'Incorrect template');
+  });
+
+});
\ No newline at end of file