diff --git a/src/tooltip/test/tooltipSpec.js b/src/tooltip/test/tooltipSpec.js
index f52a34d79f..9ebfddb0c1 100644
--- a/src/tooltip/test/tooltipSpec.js
+++ b/src/tooltip/test/tooltipSpec.js
@@ -23,7 +23,7 @@ describe('tooltip', function() {
   }));
 
   it('should not be open initially', inject(function() {
-    expect( elmScope.isOpen ).toBe( false );
+    expect( elmScope.tt_isOpen ).toBe( false );
     
     // We can only test *that* the tooltip-popup element wasn't created as the
     // implementation is templated and replaced.
@@ -32,7 +32,7 @@ describe('tooltip', function() {
 
   it('should open on mouseenter', inject(function() {
     elm.trigger( 'mouseenter' );
-    expect( elmScope.isOpen ).toBe( true );
+    expect( elmScope.tt_isOpen ).toBe( true );
 
     // We can only test *that* the tooltip-popup element was created as the
     // implementation is templated and replaced.
@@ -42,12 +42,12 @@ describe('tooltip', function() {
   it('should close on mouseleave', inject(function() {
     elm.trigger( 'mouseenter' );
     elm.trigger( 'mouseleave' );
-    expect( elmScope.isOpen ).toBe( false );
+    expect( elmScope.tt_isOpen ).toBe( false );
   }));
 
   it('should have default placement of "top"', inject(function() {
     elm.trigger( 'mouseenter' );
-    expect( elmScope.placement ).toBe( "top" );
+    expect( elmScope.tt_placement ).toBe( "top" );
   }));
 
   it('should allow specification of placement', inject( function( $compile ) {
@@ -57,7 +57,7 @@ describe('tooltip', function() {
     elmScope = elm.scope();
 
     elm.trigger( 'mouseenter' );
-    expect( elmScope.placement ).toBe( "bottom" );
+    expect( elmScope.tt_placement ).toBe( "bottom" );
   }));
 
   it('should work inside an ngRepeat', inject( function( $compile ) {
@@ -65,7 +65,7 @@ describe('tooltip', function() {
     elm = $compile( angular.element( 
       '<ul>'+
         '<li ng-repeat="item in items">'+
-          '<span id="selector" tooltip="{{item.tooltip}}">{{item.name}}</span>'+
+          '<span tooltip="{{item.tooltip}}">{{item.name}}</span>'+
         '</li>'+
       '</ul>'
     ) )( scope );
@@ -80,15 +80,37 @@ describe('tooltip', function() {
     
     tt.trigger( 'mouseenter' );
 
-    // Due to the transclusion, the contents of the element are in a span, so
-    // we select the tooltip's child and ensure its content matches.
-    expect( tt.children().text() ).toBe( scope.items[0].name );
-
-    // And the tooltip text should still match.
-    expect( tt.scope().tooltipTitle ).toBe( scope.items[0].tooltip );
+    expect( tt.text() ).toBe( scope.items[0].name );
+    expect( tt.scope().tt_tooltip ).toBe( scope.items[0].tooltip );
 
     tt.trigger( 'mouseleave' );
   }));
+
+  it('should only have an isolate scope on the popup', inject( function ( $compile ) {
+    var ttScope;
+
+    scope.tooltipMsg = "Tooltip Text";
+    scope.alt = "Alt Message";
+
+    elmBody = $compile( angular.element( 
+      '<div><span alt={{alt}} tooltip="{{tooltipMsg}}">Selector Text</span></div>' 
+    ) )( scope );
+
+    $compile( elmBody )( scope );
+    scope.$digest();
+    elm = elmBody.find( 'span' );
+    elmScope = elm.scope();
+    
+    elm.trigger( 'mouseenter' );
+    expect( elm.attr( 'alt' ) ).toBe( scope.alt );
+
+    ttScope = angular.element( elmBody.children()[1] ).scope();
+    expect( ttScope.placement ).toBe( 'top' );
+    expect( ttScope.tooltipTitle ).toBe( scope.tooltipMsg );
+
+    elm.trigger( 'mouseleave' );
+  }));
+
 });
 
     
diff --git a/src/tooltip/tooltip.js b/src/tooltip/tooltip.js
index 65050bfcc3..27d70542bd 100644
--- a/src/tooltip/tooltip.js
+++ b/src/tooltip/tooltip.js
@@ -8,28 +8,42 @@ angular.module( 'ui.bootstrap.tooltip', [] )
   return {
     restrict: 'E',
     replace: true,
+    scope: { tooltipTitle: '@', placement: '@', animation: '&', isOpen: '&' },
     templateUrl: 'template/tooltip/tooltip-popup.html'
   };
 })
-.directive( 'tooltip', [ '$compile', '$timeout', function ( $compile, $timeout ) {
+.directive( 'tooltip', [ '$compile', '$timeout', '$parse', function ( $compile, $timeout, $parse ) {
   
   var template = 
-    '<tooltip-popup></tooltip-popup>';
+    '<tooltip-popup '+
+      'tooltip-title="{{tt_tooltip}}" '+
+      'placement="{{tt_placement}}" '+
+      'animation="tt_animation()" '+
+      'is-open="tt_isOpen"'+
+      '>'+
+    '</tooltip-popup>';
   
   return {
-    transclude: true,
-    scope: { tooltipTitle: '@tooltip', placement: '@tooltipPlacement', animation: '&tooltipAnimation' },
-    controller: ['$transclude', '$element', function($transclude, $element) {
-      $transclude(function(clone) {
-        $element.append(clone);
-      });
-    }],
+    scope: true,
     link: function ( scope, element, attr ) {
       var tooltip = $compile( template )( scope ), 
           transitionTimeout;
 
+      attr.$observe( 'tooltip', function ( val ) {
+        scope.tt_tooltip = val;
+      });
+
+      attr.$observe( 'tooltipPlacement', function ( val ) {
+        // If no placement was provided, default to 'top'.
+        scope.tt_placement = val || 'top';
+      });
+
+      attr.$observe( 'tooltipAnimation', function ( val ) {
+        scope.tt_animation = $parse( val );
+      });
+
       // By default, the tooltip is not open.
-      scope.isOpen = false;
+      scope.tt_isOpen = false;
       
       // Calculate the current position and size of the directive element.
       function getPosition() {
@@ -48,9 +62,6 @@ angular.module( 'ui.bootstrap.tooltip', [] )
             ttHeight,
             ttPosition;
           
-        // If no placement was provided, default to 'top'.
-        scope.placement = scope.placement || 'top';
-        
         // If there is a pending remove transition, we must cancel it, lest the
         // toolip be mysteriously removed.
         if ( transitionTimeout ) {
@@ -73,7 +84,7 @@ angular.module( 'ui.bootstrap.tooltip', [] )
         
         // Calculate the tooltip's top and left coordinates to center it with
         // this directive.
-        switch ( scope.placement ) {
+        switch ( scope.tt_placement ) {
           case 'right':
             ttPosition = {
               top: (position.top + position.height / 2 - ttHeight / 2) + 'px',
@@ -104,19 +115,19 @@ angular.module( 'ui.bootstrap.tooltip', [] )
         tooltip.css( ttPosition );
           
         // And show the tooltip.
-        scope.isOpen = true;
+        scope.tt_isOpen = true;
       }
       
       // Hide the tooltip popup element.
       function hide() {
         // First things first: we don't show it anymore.
         //tooltip.removeClass( 'in' );
-        scope.isOpen = false;
+        scope.tt_isOpen = false;
         
         // And now we remove it from the DOM. However, if we have animation, we 
         // need to wait for it to expire beforehand.
         // FIXME: this is a placeholder for a port of the transitions library.
-        if ( angular.isDefined( scope.animation ) && scope.animation() ) {
+        if ( angular.isDefined( scope.tt_animation ) && scope.tt_animation() ) {
           transitionTimeout = $timeout( function () { tooltip.remove(); }, 500 );
         } else {
           tooltip.remove();
diff --git a/template/tooltip/tooltip-popup.html b/template/tooltip/tooltip-popup.html
index caa0c9d34d..77d35de8e2 100644
--- a/template/tooltip/tooltip-popup.html
+++ b/template/tooltip/tooltip-popup.html
@@ -1,4 +1,4 @@
-<div class="tooltip {{placement}}" ng-class="{ in: isOpen, fade: animation() }">
+<div class="tooltip {{placement}}" ng-class="{ in: isOpen(), fade: animation() }">
   <div class="tooltip-arrow"></div>
   <div class="tooltip-inner" ng-bind="tooltipTitle"></div>
 </div>