diff --git a/src/ng/directive/ngOptions.js b/src/ng/directive/ngOptions.js
index a8adfb0b2e1b..ad199406d694 100644
--- a/src/ng/directive/ngOptions.js
+++ b/src/ng/directive/ngOptions.js
@@ -429,6 +429,7 @@ var ngOptionsDirective = ['$compile', '$document', '$parse', function($compile,
       }
 
       var providedEmptyOption = !!emptyOption;
+      var emptyOptionRendered = false;
 
       var unknownOption = jqLite(optionTemplate.cloneNode(false));
       unknownOption.val('?');
@@ -445,14 +446,16 @@ var ngOptionsDirective = ['$compile', '$document', '$parse', function($compile,
           selectElement.prepend(emptyOption);
         }
         selectElement.val('');
-        emptyOption.prop('selected', true); // needed for IE
-        emptyOption.attr('selected', true);
+        if (emptyOptionRendered) {
+          emptyOption.prop('selected', true); // needed for IE
+          emptyOption.attr('selected', true);
+        }
       };
 
       var removeEmptyOption = function() {
         if (!providedEmptyOption) {
           emptyOption.remove();
-        } else {
+        } else if (emptyOptionRendered) {
           emptyOption.removeAttr('selected');
         }
       };
@@ -587,9 +590,35 @@ var ngOptionsDirective = ['$compile', '$document', '$parse', function($compile,
         // compile the element since there might be bindings in it
         $compile(emptyOption)(scope);
 
-        // remove the class, which is added automatically because we recompile the element and it
-        // becomes the compilation root
-        emptyOption.removeClass('ng-scope');
+        if (emptyOption[0].nodeType === NODE_TYPE_COMMENT) {
+          // This means the empty option has currently no actual DOM node, probably because
+          // it has been modified by a transclusion directive.
+
+          emptyOptionRendered = false;
+
+          // Redefine the registerOption function, which will catch
+          // options that are added by ngIf etc. (rendering of the node is async because of
+          // lazy transclusion)
+          selectCtrl.registerOption = function(optionScope, optionEl) {
+            if (optionEl.val() === '') {
+              emptyOptionRendered = true;
+              emptyOption = optionEl;
+              emptyOption.removeClass('ng-scope');
+              // This ensures the new empty option is selected if previously no option was selected
+              ngModelCtrl.$render();
+
+              optionEl.on('$destroy', function() {
+                emptyOption = undefined;
+                emptyOptionRendered = false;
+              });
+            }
+          };
+
+        } else {
+          emptyOption.removeClass('ng-scope');
+          emptyOptionRendered = true;
+        }
+
       } else {
         emptyOption = jqLite(optionTemplate.cloneNode(false));
       }
diff --git a/test/ng/directive/ngOptionsSpec.js b/test/ng/directive/ngOptionsSpec.js
index edfc0f98d108..f1f752bf352d 100644
--- a/test/ng/directive/ngOptionsSpec.js
+++ b/test/ng/directive/ngOptionsSpec.js
@@ -2558,6 +2558,95 @@ describe('ngOptions', function() {
     });
 
 
+    it('should select the correct option after linking when the ngIf expression is initially falsy', function() {
+      scope.values = [
+        {name:'black'},
+        {name:'white'},
+        {name:'red'}
+      ];
+      scope.selected = scope.values[2];
+
+      expect(function() {
+        createSingleSelect('<option ng-if="isBlank" value="">blank</option>');
+        scope.$apply();
+      }).not.toThrow();
+
+      expect(element.find('option')[2]).toBeMarkedAsSelected();
+      expect(linkLog).toEqual(['linkNgOptions']);
+    });
+
+
+    it('should add / remove the "selected" attribute on empty option which has an initially falsy ngIf expression', function() {
+      scope.values = [
+        {name:'black'},
+        {name:'white'},
+        {name:'red'}
+      ];
+      scope.selected = scope.values[2];
+
+      createSingleSelect('<option ng-if="isBlank" value="">blank</option>');
+      scope.$apply();
+
+      expect(element.find('option')[2]).toBeMarkedAsSelected();
+
+      scope.$apply('isBlank = true');
+      expect(element.find('option')[0].value).toBe('');
+      expect(element.find('option')[0]).not.toBeMarkedAsSelected();
+
+      scope.$apply('selected = null');
+      expect(element.find('option')[0].value).toBe('');
+      expect(element.find('option')[0]).toBeMarkedAsSelected();
+
+      scope.selected = scope.values[1];
+      scope.$apply();
+      expect(element.find('option')[0].value).toBe('');
+      expect(element.find('option')[0]).not.toBeMarkedAsSelected();
+      expect(element.find('option')[2]).toBeMarkedAsSelected();
+    });
+
+
+    it('should add / remove the "selected" attribute on empty option which has an initially truthy ngIf expression when no option is selected', function() {
+      scope.values = [
+        {name:'black'},
+        {name:'white'},
+        {name:'red'}
+      ];
+      scope.isBlank = true;
+
+      createSingleSelect('<option ng-if="isBlank" value="">blank</option>');
+      scope.$apply();
+
+      expect(element.find('option')[0].value).toBe('');
+      expect(element.find('option')[0]).toBeMarkedAsSelected();
+
+      scope.selected = scope.values[2];
+      scope.$apply();
+      expect(element.find('option')[0]).not.toBeMarkedAsSelected();
+      expect(element.find('option')[3]).toBeMarkedAsSelected();
+    });
+
+
+    it('should add the "selected" attribute on empty option which has an initially falsy ngIf expression when no option is selected', function() {
+      scope.values = [
+        {name:'black'},
+        {name:'white'},
+        {name:'red'}
+      ];
+
+      createSingleSelect('<option ng-if="isBlank" value="">blank</option>');
+      scope.$apply();
+
+      expect(element.find('option')[0]).not.toBeMarkedAsSelected();
+
+      scope.isBlank = true;
+      scope.$apply();
+
+      expect(element.find('option')[0].value).toBe('');
+      expect(element.find('option')[0]).toBeMarkedAsSelected();
+      expect(element.find('option')[1]).not.toBeMarkedAsSelected();
+    });
+
+
     it('should not throw with a directive that replaces', inject(function($templateCache, $httpBackend) {
       $templateCache.put('select_template.html', '<select ng-options="option as option for option in selectable_options"> <option value="">This is a test</option> </select>');