diff --git a/src/Angular.js b/src/Angular.js
index ad281504bf3c..29c9c762541b 100644
--- a/src/Angular.js
+++ b/src/Angular.js
@@ -1160,6 +1160,7 @@ function bindJQuery() {
     JQLitePatchJQueryRemove('remove', true, true, false);
     JQLitePatchJQueryRemove('empty', false, false, false);
     JQLitePatchJQueryRemove('html', false, false, true);
+    JQLitePatchJQueryRemove('replaceWith', true, false, false);
   } else {
     jqLite = JQLite;
   }
diff --git a/src/ng/compile.js b/src/ng/compile.js
index 2b70abfc2f67..f84e97a68452 100644
--- a/src/ng/compile.js
+++ b/src/ng/compile.js
@@ -1370,6 +1370,7 @@ function $CompileProvider($provide) {
       var firstElementToRemove = elementsToRemove[0],
           removeCount = elementsToRemove.length,
           parent = firstElementToRemove.parentNode,
+          scope = jQuery(firstElementToRemove).data('$scope'),
           i, ii;
 
       if ($rootElement) {
@@ -1404,6 +1405,10 @@ function $CompileProvider($provide) {
         delete elementsToRemove[k];
       }
 
+      if (scope) {
+        jQuery(newNode).data('$scope', scope);
+      }
+
       elementsToRemove[0] = newNode;
       elementsToRemove.length = 1
     }
diff --git a/test/ng/compileSpec.js b/test/ng/compileSpec.js
index 1e66b49fa924..4cfb6372d775 100755
--- a/test/ng/compileSpec.js
+++ b/test/ng/compileSpec.js
@@ -3256,7 +3256,7 @@ describe('$compile', function() {
       $rootScope.dataOnVar = 'data-on text';
       $rootScope.$apply();
       expect(element.attr('data-on')).toEqual('data-on text');
-      
+
       element = $compile('<button on="{{onVar}}"></script>')($rootScope);
       $rootScope.onVar = 'on text';
       $rootScope.$apply();