diff --git a/src/ng/compile.js b/src/ng/compile.js
index 18adc2c9..2ed34f73 100644
--- a/src/ng/compile.js
+++ b/src/ng/compile.js
@@ -330,7 +330,14 @@ function $CompileProvider($provide) {
         var $linkNode = cloneConnectFn
           ? JQLitePrototype.clone.call($compileNodes) // IMPORTANT!!!
           : $compileNodes;
-        $linkNode.data('$scope', scope);
+
+        // Attach scope only to non-text nodes.
+        for(var i = 0, ii = $linkNode.length; i<ii; i++) {
+          var node = $linkNode[i];
+          if (node.nodeType == 1 /* element */ || node.nodeType == 9 /* document */) {
+            $linkNode.eq(i).data('$scope', scope);
+          }
+        }
         safeAddClass($linkNode, 'ng-scope');
         if (cloneConnectFn) cloneConnectFn($linkNode, scope);
         if (compositeLinkFn) compositeLinkFn(scope, $linkNode, $linkNode);
diff --git a/src/ng/directive/ngView.js b/src/ng/directive/ngView.js
index 2fd3a600..6e92c2d8 100644
--- a/src/ng/directive/ngView.js
+++ b/src/ng/directive/ngView.js
@@ -147,7 +147,7 @@ var ngViewDirective = ['$http', '$templateCache', '$route', '$anchorScroll', '$c
           if (current.controller) {
             locals.$scope = lastScope;
             controller = $controller(current.controller, locals);
-            element.contents().data('$ngControllerController', controller);
+            element.children().data('$ngControllerController', controller);
           }
 
           link(lastScope);
diff --git a/test/ng/compileSpec.js b/test/ng/compileSpec.js
index a7707cf9..3937f0e7 100644
--- a/test/ng/compileSpec.js
+++ b/test/ng/compileSpec.js
@@ -116,12 +116,17 @@ describe('$compile', function() {
 
   describe('compile phase', function() {
 
+    it('should attach scope to the document node when it is compiled explicitly', inject(function($document){
+      $compile($document)($rootScope);
+      expect($document.scope()).toBe($rootScope);
+    }));
+
     it('should wrap root text nodes in spans', inject(function($compile, $rootScope) {
       element = jqLite('<div>A&lt;a&gt;B&lt;/a&gt;C</div>');
       var text = element.contents();
       expect(text[0].nodeName).toEqual('#text');
       text = $compile(text)($rootScope);
-      expect(lowercase(text[0].nodeName)).toEqual('span');
+      expect(text[0].nodeName).toEqual('SPAN');
       expect(element.find('span').text()).toEqual('A<a>B</a>C');
     }));
 
@@ -137,6 +142,41 @@ describe('$compile', function() {
       expect(spans.text().indexOf('C')).toEqual(0);
     });
 
+    it('should not leak memory when there are top level empty text nodes', function() {
+      var calcCacheSize = function() {
+        var size = 0;
+        forEach(jqLite.cache, function(item, key) { size++; });
+        return size;
+      };
+
+      // We compile the contents of element (i.e. not element itself)
+      // Then delete these contents and check the cache has been reset to zero
+
+      // First with only elements at the top level
+      element = jqLite('<div><div></div></div>');
+      $compile(element.contents())($rootScope);
+      element.html('');
+      expect(calcCacheSize()).toEqual(0);
+
+      // Next with non-empty text nodes at the top level
+      // (in this case the compiler will wrap them in a <span>)
+      element = jqLite('<div>xxx</div>');
+      $compile(element.contents())($rootScope);
+      element.html('');
+      expect(calcCacheSize()).toEqual(0);
+
+      // Next with comment nodes at the top level
+      element = jqLite('<div><!-- comment --></div>');
+      $compile(element.contents())($rootScope);
+      element.html('');
+      expect(calcCacheSize()).toEqual(0);
+
+      // Finally with empty text nodes at the top level
+      element = jqLite('<div>   \n<div></div>   </div>');
+      $compile(element.contents())($rootScope);
+      element.html('');
+      expect(calcCacheSize()).toEqual(0);
+    });
 
     describe('multiple directives per element', function() {
       it('should allow multiple directives per element', inject(function($compile, $rootScope, log){
diff --git a/test/ng/directive/ngViewSpec.js b/test/ng/directive/ngViewSpec.js
index e90bb3bd..e781b98b 100644
--- a/test/ng/directive/ngViewSpec.js
+++ b/test/ng/directive/ngViewSpec.js
@@ -429,7 +429,7 @@ describe('ngView', function() {
       $rootScope.$digest();
       expect($rootScope.load).toHaveBeenCalledOnce();
     });
-  })
+  });
 
 
   it('should set $scope and $controllerController on the view', function() {
@@ -459,4 +459,28 @@ describe('ngView', function() {
       expect(div.controller()).toBe($route.current.scope.ctrl);
     });
   });
+
+  it('should not set $scope or $controllerController on top level text elements in the view', function() {
+    function MyCtrl($scope) {}
+
+    module(function($routeProvider) {
+      $routeProvider.when('/foo', {templateUrl: 'tpl.html', controller: MyCtrl});
+    });
+
+    inject(function($templateCache, $location, $rootScope, $route) {
+      $templateCache.put('tpl.html', '<div></div>  ');
+      $location.url('/foo');
+      $rootScope.$digest();
+
+      forEach(element.contents(), function(node) {
+        if ( node.nodeType == 3 ) {
+          expect(jqLite(node).scope()).not.toBe($route.current.scope);
+          expect(jqLite(node).controller()).not.toBeDefined();
+        } else {
+          expect(jqLite(node).scope()).toBe($route.current.scope);
+          expect(jqLite(node).controller()).toBeDefined();
+        }
+      });
+    });
+  });
 });