diff --git a/src/ng/compile.js b/src/ng/compile.js
index 13f8ae7ef62b..88eff03eaf4b 100644
--- a/src/ng/compile.js
+++ b/src/ng/compile.js
@@ -380,7 +380,7 @@ function $CompileProvider($provide) {
             ? applyDirectivesToNode(directives, nodeList[i], attrs, transcludeFn, $rootElement)
             : null;
 
-        childLinkFn = (nodeLinkFn && nodeLinkFn.terminal || !nodeList[i].childNodes.length)
+        childLinkFn = (nodeLinkFn && nodeLinkFn.terminal || !nodeList[i].childNodes || !nodeList[i].childNodes.length)
             ? null
             : compileNodes(nodeList[i].childNodes,
                  nodeLinkFn ? nodeLinkFn.transclude : transcludeFn);