diff --git a/src/ng/compile.js b/src/ng/compile.js
index 4d83f379d22f..2bb85f66e8e7 100644
--- a/src/ng/compile.js
+++ b/src/ng/compile.js
@@ -1157,7 +1157,8 @@ function $CompileProvider($provide) {
           replaceDirective = originalReplaceDirective,
           childTranscludeFn = transcludeFn,
           linkFn,
-          directiveValue;
+          directiveValue,
+          directiveValueTrimmed;
 
       // executes all directives on the current element
       for(var i = 0, ii = directives.length; i < ii; i++) {
@@ -1250,11 +1251,25 @@ function $CompileProvider($provide) {
 
           if (directive.replace) {
             replaceDirective = directive;
-            $template = jqLite('<div>' +
-                                 trim(directiveValue) +
-                               '</div>').contents();
-            compileNode = $template[0];
 
+            directiveValueTrimmed = trim(directiveValue);
+
+            // Special case for table elements that cannot be wrapped in a div
+            if (directiveValueTrimmed.indexOf('<tr') === 0) {
+                $template = jqLite('<table><tbody>' + directiveValueTrimmed + '</tbody></table>').children().contents();
+            }
+            else if (['<tbody', '<thead', '<tfoot'].indexOf(directiveValueTrimmed.substr(0, 6)) !== -1 ||
+                     directiveValueTrimmed.substr(0, 8) == '<caption') {
+                $template = jqLite('<table>' + directiveValueTrimmed + '</table>').contents();
+            }
+            else if (['<td', '<th'].indexOf(directiveValueTrimmed.substr(0, 3)) !== -1) {
+                $template = jqLite('<table><tbody><tr>' + directiveValueTrimmed + '</tr></tbody></table>').children().children().contents();
+            }
+            else {
+                $template = jqLite('<div>' + directiveValueTrimmed + '</div>').contents();
+            }
+
+            compileNode = $template[0];
             if ($template.length != 1 || compileNode.nodeType !== 1) {
               throw $compileMinErr('tplrt',
                   "Template for directive '{0}' must have exactly one root element. {1}",
diff --git a/test/ng/compileSpec.js b/test/ng/compileSpec.js
index 85ee17d2ae6e..c8e1ea5b3c80 100755
--- a/test/ng/compileSpec.js
+++ b/test/ng/compileSpec.js
@@ -504,6 +504,16 @@ describe('$compile', function() {
               expect(element).toBe(attr.$$element);
             }
           }));
+
+          directive('replaceTr', valueFn({
+            replace: true,
+            template: '<tr class="replaced"><td>Replace!</td></tr>',
+            compile: function(element, attr) {
+              attr.$set('compiled', 'COMPILED');
+              expect(element).toBe(attr.$$element);
+            }
+          }));
+
           directive('replaceWithInterpolatedStyle', valueFn({
             replace: true,
             template: '<div style="width:{{1+1}}px">Replace with interpolated style!</div>',
@@ -512,8 +522,104 @@ describe('$compile', function() {
               expect(element).toBe(attr.$$element);
             }
           }));
+
+          directive('replaceTd', valueFn({
+            replace: true,
+            template: '<td>Replace!</td>',
+            compile: function(element, attr) {
+              attr.$set('compiled', 'COMPILED');
+              expect(element).toBe(attr.$$element);
+            }
+          }));
+
+          directive('replaceTh', valueFn({
+            replace: true,
+            template: '<th>Replace!</th>',
+            compile: function(element, attr) {
+              attr.$set('compiled', 'COMPILED');
+              expect(element).toBe(attr.$$element);
+            }
+          }));
+
+          directive('replaceThead', valueFn({
+            replace: true,
+            template: '<thead><tr><td>Replace!</td></tr></thead>',
+            compile: function(element, attr) {
+              attr.$set('compiled', 'COMPILED');
+              expect(element).toBe(attr.$$element);
+            }
+          }));
+
+          directive('replaceTbody', valueFn({
+            replace: true,
+            template: '<tbody><tr><td>Replace!</td></tr></tbody>',
+            compile: function(element, attr) {
+              attr.$set('compiled', 'COMPILED');
+              expect(element).toBe(attr.$$element);
+            }
+          }));
+
+          directive('replaceTfoot', valueFn({
+            replace: true,
+            template: '<tfoot><tr><td>Replace!</td></tr></tfoot>',
+            compile: function(element, attr) {
+              attr.$set('compiled', 'COMPILED');
+              expect(element).toBe(attr.$$element);
+            }
+          }));
+
+          directive('replaceCaption', valueFn({
+            replace: true,
+            template: '<caption>Replace!</caption>',
+            compile: function(element, attr) {
+              attr.$set('compiled', 'COMPILED');
+              expect(element).toBe(attr.$$element);
+            }
+          }));
+
         }));
 
+        it('should replace tr element with template', inject(function($compile, $rootScope) {
+          element = $compile('<table><tr replace-tr></tr></table>')($rootScope);
+          expect(element.text()).toEqual('Replace!');
+          expect(element.find('tr').attr('compiled')).toEqual('COMPILED');
+        }));
+
+        it('should replace td element with template', inject(function($compile, $rootScope) {
+          element = $compile('<table><tr><td replace-td></td></tr></table>')($rootScope);
+          expect(element.text()).toEqual('Replace!');
+          expect(element.find('td').attr('compiled')).toEqual('COMPILED');
+        }));
+
+        it('should replace th element with template', inject(function($compile, $rootScope) {
+          element = $compile('<table><tr><th replace-th></th></tr></table>')($rootScope);
+          expect(element.text()).toEqual('Replace!');
+          expect(element.find('th').attr('compiled')).toEqual('COMPILED');
+        }));
+
+        it('should replace thead element with template', inject(function($compile, $rootScope) {
+          element = $compile('<table><thead replace-thead></thead></table>')($rootScope);
+          expect(element.find('td').text()).toEqual('Replace!');
+          expect(element.find('thead').attr('compiled')).toEqual('COMPILED');
+        }));
+
+        it('should replace tbody element with template', inject(function($compile, $rootScope) {
+          element = $compile('<table><tbody replace-tbody></tbody></table>')($rootScope);
+          expect(element.find('td').text()).toEqual('Replace!');
+          expect(element.find('tbody').attr('compiled')).toEqual('COMPILED');
+        }));
+
+        it('should replace tfoot element with template', inject(function($compile, $rootScope) {
+          element = $compile('<table><tfoot replace-tfoot></tfoot></table>')($rootScope);
+          expect(element.find('td').text()).toEqual('Replace!');
+          expect(element.find('tfoot').attr('compiled')).toEqual('COMPILED');
+        }));
+
+        it('should replace caption element with template', inject(function($compile, $rootScope) {
+          element = $compile('<table><caption replace-caption></caption></table>')($rootScope);
+          expect(element.find('caption').text()).toEqual('Replace!');
+          expect(element.find('caption').attr('compiled')).toEqual('COMPILED');
+        }));
 
         it('should replace element with template', inject(function($compile, $rootScope) {
           element = $compile('<div><div replace>ignore</div><div>')($rootScope);