fix(autocomlete): Gets rid of uncompiled content flicker.

src/components/autocomplete/autocomplete.spec.js

@@ -298,6 +298,54 @@ describe('<md-autocomplete>', function() {
       element.remove();
     }));
 
+    it('should ensure the parent scope digests along with the current scope', inject(function($timeout, $material) {
+      var scope = createScope(null, {bang: 'boom'});
+      var template =
+        '<md-autocomplete' +
+        '   md-selected-item="selectedItem"' +
+        '   md-search-text="searchText"' +
+        '   md-items="item in match(searchText)"' +
+        '   md-item-text="item.display"' +
+        '   placeholder="placeholder">' +
+        ' <md-item-template>' +
+        '   <span class="find-parent-scope">{{bang}}</span>' +
+        '   <span class="find-index">{{$index}}</span>' +
+        '   <span class="find-item">{{item.display}}</span>' +
+        ' </md-item-template>' +
+        '</md-autocomplete>';
+      var element = compile(template, scope);
+      var ctrl = element.controller('mdAutocomplete');
+      var ul = element.find('ul');
+
+      $material.flushOutstandingAnimations();
+
+      // Focus the input
+      ctrl.focus();
+
+      element.scope().searchText = 'fo';
+
+      // Run our initial flush
+      $timeout.flush();
+      waitForVirtualRepeat(element);
+
+      // Wait for the next tick when the values will be updated
+      $timeout.flush();
+
+      var li = ul.find('li')[0];
+      var parentScope = angular.element(li.querySelector('.find-parent-scope')).scope();
+
+      // When the autocomplete item's scope digests, ensure that the parent
+      // scope does too.
+      parentScope.bang = 'big';
+      scope.$digest();
+
+      expect(li.querySelector('.find-parent-scope').innerHTML).toBe('big');
+
+      // Make sure we wrap up anything and remove the element
+      $timeout.flush();
+      element.remove();
+    }));
+
     it('is hidden when no matches are found without an md-not-found template', inject(function($timeout, $material) {
       var scope = createScope();
       var template =

src/components/autocomplete/js/autocompleteParentScopeDirective.js

@@ -5,41 +5,71 @@ angular
 function MdAutocompleteItemScopeDirective($compile, $mdUtil) {
   return {
     restrict: 'AE',
-    link: postLink,
-    terminal: true
+    compile: compile,
+    terminal: true,
+    transclude: 'element'
   };
 
-  function postLink(scope, element, attr) {
-    var ctrl = scope.$mdAutocompleteCtrl;
-    var newScope = ctrl.parent.$new();
-    var itemName = ctrl.itemName;
-
-    // Watch for changes to our scope's variables and copy them to the new scope
-    watchVariable('$index', '$index');
-    watchVariable('item', itemName);
-
-    // Recompile the contents with the new/modified scope
-    $compile(element.contents())(newScope);
-
-    // Replace it if required
-    if (attr.hasOwnProperty('mdAutocompleteReplace')) {
-      element.after(element.contents());
-      element.remove();
-    }
-
-    /**
-     * Creates a watcher for variables that are copied from the parent scope
-     * @param variable
-     * @param alias
-     */
-    function watchVariable(variable, alias) {
-      newScope[alias] = scope[variable];
-
-      scope.$watch(variable, function(value) {
-        $mdUtil.nextTick(function() {
-          newScope[alias] = value;
-        });
+  function compile(tElement, tAttr, transclude) {
+    return function postLink(scope, element, attr) {
+      var ctrl = scope.$mdAutocompleteCtrl;
+      var newScope = ctrl.parent.$new();
+      var itemName = ctrl.itemName;
+
+      // Watch for changes to our scope's variables and copy them to the new scope
+      watchVariable('$index', '$index');
+      watchVariable('item', itemName);
+
+      // Ensure that $digest calls on our scope trigger $digest on newScope.
+      connectScopes();
+
+      // Link the element against newScope.
+      transclude(newScope, function(clone) {
+        element.after(clone);
       });
-    }
+
+      /**
+       * Creates a watcher for variables that are copied from the parent scope
+       * @param variable
+       * @param alias
+       */
+      function watchVariable(variable, alias) {
+        newScope[alias] = scope[variable];
+
+        scope.$watch(variable, function(value) {
+          $mdUtil.nextTick(function() {
+            newScope[alias] = value;
+          });
+        });
+      }
+
+      /**
+       * Creates watchers on scope and newScope that ensure that for any
+       * $digest of scope, newScope is also $digested.
+       */
+      function connectScopes() {
+        var scopeDigesting = false;
+        var newScopeDigesting = false;
+
+        scope.$watch(function() {
+          if (newScopeDigesting || scopeDigesting) {
+            return;
+          }
+
+          scopeDigesting = true;
+          scope.$$postDigest(function() {
+            if (!newScopeDigesting) {
+              newScope.$digest();
+            }
+
+            scopeDigesting = newScopeDigesting = false;
+          });
+        });
+
+        newScope.$watch(function() {
+          newScopeDigesting = true;
+        });
+      }
+    };
   }
 }

src/components/autocomplete/js/highlightController.js

@@ -24,7 +24,7 @@ function MdHighlightCtrl ($scope, $element, $attrs) {
 
           $element.html(text.replace(regex, '<span class="highlight">$&</span>'));
         }, true);
-    $element.on('$destroy', function () { watcher(); });
+    $element.on('$destroy', watcher);
   }
 
   function sanitize (term) {