diff --git a/src/carousel/carousel.js b/src/carousel/carousel.js
index 9d91004da7..ba65882d27 100644
--- a/src/carousel/carousel.js
+++ b/src/carousel/carousel.js
@@ -17,7 +17,7 @@ angular.module('ui.bootstrap.carousel', ['ui.bootstrap.transition'])
   var destroyed = false;
   /* direction: "prev" or "next" */
   self.select = $scope.select = function(nextSlide, direction) {
-    var nextIndex = slides.indexOf(nextSlide);
+    var nextIndex = self.indexOfSlide(nextSlide);
     //Decide direction if it's not given
     if (direction === undefined) {
       direction = nextIndex > currentIndex ? 'next' : 'prev';
@@ -59,7 +59,7 @@ angular.module('ui.bootstrap.carousel', ['ui.bootstrap.transition'])
         transitionDone(nextSlide, self.currentSlide);
       }
       self.currentSlide = nextSlide;
-      currentIndex = nextIndex;
+      currentIndex = self.indexOfSlide(nextSlide);
       //every time you change slides, reset the timer
       restartTimer();
     }
@@ -72,27 +72,55 @@ angular.module('ui.bootstrap.carousel', ['ui.bootstrap.transition'])
   $scope.$on('$destroy', function () {
     destroyed = true;
   });
-
   /* Allow outside people to call indexOf on slides array */
   self.indexOfSlide = function(slide) {
-    return slides.indexOf(slide);
+    if(angular.isUndefined(slide.$element)) {
+      return slides.indexOf(slide);
+    }
+    var slideElements = slide.$element.parent().children();
+    for(var i = 0; i < slideElements.length; i++){
+      if(slideElements[i] === slide.$element[0]){
+        return i;
+      }
+    }
+    return false;
   };
 
-  $scope.next = function() {
-    var newIndex = (currentIndex + 1) % slides.length;
+  $scope.indexOfSlide = function (slide) {
+    return self.indexOfSlide(slide);
+  };
 
+  $scope.next = function() {
     //Prevent this user-triggered transition from occurring if there is already one in progress
     if (!$scope.$currentTransition) {
-      return self.select(slides[newIndex], 'next');
+      var nextSlide = null;
+      if(angular.isUndefined(self.currentSlide.$element)) {
+        return false;
+      }
+      var nextElement = self.currentSlide.$element.next();
+      if(nextElement.length === 1){
+        nextSlide = getSlideFromDomElement(nextElement);
+      } else {
+        nextSlide = getFirstSlide();
+      }
+      return self.select(nextSlide, 'next');
     }
   };
 
   $scope.prev = function() {
-    var newIndex = currentIndex - 1 < 0 ? slides.length - 1 : currentIndex - 1;
-
     //Prevent this user-triggered transition from occurring if there is already one in progress
     if (!$scope.$currentTransition) {
-      return self.select(slides[newIndex], 'prev');
+      var prevSlide = null;
+      if(angular.isUndefined(self.currentSlide.$element)) {
+        return false;
+      }
+      var prevElement = self.currentSlide.$element[0].previousElementSibling;
+      if(prevElement !== null){
+        prevSlide = getSlideFromDomElement(prevElement);
+      } else {
+        prevSlide = getLastSlide();
+      }
+      return self.select(prevSlide, 'prev');
     }
   };
 
@@ -140,6 +168,33 @@ angular.module('ui.bootstrap.carousel', ['ui.bootstrap.transition'])
     }
   };
 
+  function getSlideFromDomElement(element) {
+    if(element.length){
+      element = element[0];
+    }
+    for (var i = slides.length - 1; i >= 0; i--) {
+      if(slides[i].$element[0] === element){
+        return slides[i];
+      }
+    }
+    return false;
+  }
+
+  function getSlideElements() {
+    return self.currentSlide.$element.parent().children();
+  }
+
+  function getLastSlide() {
+    var slideElements = getSlideElements();
+    var lastSlideElement = slideElements[slideElements.length-1];
+    return getSlideFromDomElement(lastSlideElement);
+  }
+
+  function getFirstSlide(){
+    var firstSlideElement = getSlideElements()[0];
+    return getSlideFromDomElement(firstSlideElement);
+  }
+
   self.addSlide = function(slide, element) {
     slide.$element = element;
     slides.push(slide);
diff --git a/src/carousel/test/carousel.spec.js b/src/carousel/test/carousel.spec.js
index f8dac14457..f7e19646f0 100644
--- a/src/carousel/test/carousel.spec.js
+++ b/src/carousel/test/carousel.spec.js
@@ -266,7 +266,28 @@ describe('carousel', function() {
       scope.$destroy();
       expect($interval.cancel).toHaveBeenCalled();
     });
-
+    it('should respect changes in order', function() {
+      scope.slides[0].order = 1;
+      scope.slides[1].order = 2;
+      scope.slides[2].order = 3;
+      var elm = $compile(
+        '<carousel interval="interval">' +
+          '<slide ng-repeat="slide in slides | orderBy:\'order\'" active="slide.active">' +
+            '{{slide.content}}' +
+          '</slide>' +
+        '</carousel>'
+      )(scope);
+      $rootScope.$digest();
+      scope.slides[0].order = 3;
+      scope.slides[1].order = 2;
+      scope.slides[2].order = 1;
+      scope.slides[0].active = true;
+      $rootScope.$digest();
+      var navNext = elm.find('a.right');
+      testSlideActive(0);
+      navNext.click();
+      testSlideActive(2);
+    });
   });
 
   describe('controller', function() {
diff --git a/template/carousel/carousel.html b/template/carousel/carousel.html
index 9769b383a6..6577b73f45 100644
--- a/template/carousel/carousel.html
+++ b/template/carousel/carousel.html
@@ -1,6 +1,6 @@
 <div ng-mouseenter="pause()" ng-mouseleave="play()" class="carousel" ng-swipe-right="prev()" ng-swipe-left="next()">
     <ol class="carousel-indicators" ng-show="slides.length > 1">
-        <li ng-repeat="slide in slides track by $index" ng-class="{active: isActive(slide)}" ng-click="select(slide)"></li>
+        <li ng-repeat="slide in slides | orderBy:indexOfSlide track by $index" ng-class="{active: isActive(slide)}" ng-click="select(slide)"></li>
     </ol>
     <div class="carousel-inner" ng-transclude></div>
     <a class="left carousel-control" ng-click="prev()" ng-show="slides.length > 1"><span class="glyphicon glyphicon-chevron-left"></span></a>