diff --git a/bower.json b/bower.json
index 65a383deb67b..666a081127a8 100644
--- a/bower.json
+++ b/bower.json
@@ -1,7 +1,7 @@
 {
   "name": "AngularJS",
   "devDependencies": {
-    "jquery": "git://github.com/components/jquery.git#v1.8.3",
+    "jquery": "1.10.2",
     "lunr.js": "0.4.0",
     "google-code-prettify": "1.0.0",
     "components-font-awesome": "3.1.0",
diff --git a/src/ng/compile.js b/src/ng/compile.js
index d97aeaf6e557..1b251044972a 100644
--- a/src/ng/compile.js
+++ b/src/ng/compile.js
@@ -925,7 +925,14 @@ function $CompileProvider($provide) {
             }
             optional = optional || value == '?';
           }
+
           value = $element[retrievalMethod]('$' + require + 'Controller');
+
+          if ($element[0].nodeType == 8 && $element[0].$$controller) { // Transclusion comment node
+            value = value || $element[0].$$controller;
+            $element[0].$$controller = null;
+          }
+
           if (!value && !optional) {
             throw $compileMinErr('ctreq', "Controller '{0}', required by directive '{1}', can't be found!", require, directiveName);
           }
@@ -1040,9 +1047,16 @@ function $CompileProvider($provide) {
             }
 
             controllerInstance = $controller(controller, locals);
-            $element.data(
-                '$' + directive.name + 'Controller',
-                controllerInstance);
+
+            // Directives with element transclusion and a controller need to attach controller
+            // to the comment node created by the compiler, but jQuery .data doesn't support
+            // attaching data to comment nodes so instead we set it directly on the element and
+            // remove it after we read it later.
+            if ($element[0].nodeType == 8) { // Transclusion comment node
+              $element[0].$$controller = controllerInstance;
+            } else {
+              $element.data('$' + directive.name + 'Controller', controllerInstance);
+            }
             if (directive.controllerAs) {
               locals.$scope[directive.controllerAs] = controllerInstance;
             }