diff --git a/modules/angular2/src/change_detection/change_detection_jit_generator.es6 b/modules/angular2/src/change_detection/change_detection_jit_generator.es6
index b612d5efa271..9ba4a302bee2 100644
--- a/modules/angular2/src/change_detection/change_detection_jit_generator.es6
+++ b/modules/angular2/src/change_detection/change_detection_jit_generator.es6
@@ -203,6 +203,17 @@ if (${TEMP_LOCAL} instanceof ContextWithVariableBindings) {
 `;
 }
 
+function invokeMethodTemplate(name:string, args:string, context:string, newValue:string) {
+  return `
+${TEMP_LOCAL} = ${UTIL}.findContext("${name}", ${context});
+if (${TEMP_LOCAL} instanceof ContextWithVariableBindings) {
+  ${newValue} = ${TEMP_LOCAL}.get('${name}').apply(null, [${args}]);
+} else {
+  ${newValue} = ${context}.${name}(${args});
+}
+`;
+}
+
 function localDefinitionsTemplate(names:List):string {
   return names.map((n) => `var ${n};`).join("\n");
 }
@@ -366,7 +377,11 @@ export class ChangeDetectorJITGenerator {
         }
 
       case RECORD_TYPE_INVOKE_METHOD:
-        return assignmentTemplate(newValue, `${context}.${r.name}(${args})`);
+        if (r.contextIndex == 0) { // only the first property read can be a local
+          return invokeMethodTemplate(r.name, args, context, newValue);
+        } else {
+          return assignmentTemplate(newValue, `${context}.${r.name}(${args})`);
+        }
 
       case RECORD_TYPE_INVOKE_CLOSURE:
         return assignmentTemplate(newValue, `${context}(${args})`);
diff --git a/modules/angular2/src/change_detection/dynamic_change_detector.js b/modules/angular2/src/change_detection/dynamic_change_detector.js
index 8dee6b5e631e..051fb027fbfa 100644
--- a/modules/angular2/src/change_detection/dynamic_change_detector.js
+++ b/modules/angular2/src/change_detection/dynamic_change_detector.js
@@ -132,8 +132,16 @@ export class DynamicChangeDetector extends AbstractChangeDetector {
         break;
 
       case RECORD_TYPE_INVOKE_METHOD:
-        var methodInvoker:Function = proto.funcOrValue;
-        return methodInvoker(this._readContext(proto), this._readArgs(proto));
+        var context = this._readContext(proto);
+        var args = this._readArgs(proto);
+        var c = ChangeDetectionUtil.findContext(proto.name, context);
+        if (c instanceof ContextWithVariableBindings) {
+          return FunctionWrapper.apply(c.get(proto.name), args);
+        } else {
+          var methodInvoker:Function = proto.funcOrValue;
+          return methodInvoker(c, args);
+        }
+        break;
 
       case RECORD_TYPE_KEYED_ACCESS:
         var arg = this._readArgs(proto)[0];
diff --git a/modules/angular2/test/change_detection/change_detection_spec.js b/modules/angular2/test/change_detection/change_detection_spec.js
index c6f1d76f03b5..f2bc3f0edd46 100644
--- a/modules/angular2/test/change_detection/change_detection_spec.js
+++ b/modules/angular2/test/change_detection/change_detection_spec.js
@@ -318,6 +318,14 @@ export function main() {
                 .toEqual(['key=value']);
             });
 
+            it('should invoke a function from ContextWithVariableBindings', () => {
+              var locals = new ContextWithVariableBindings(null,
+                MapWrapper.createFromPairs([["key", () => "value"]]));
+
+              expect(executeWatch('key', 'key()', locals))
+                .toEqual(['key=value']);
+            });
+
             it('should handle nested ContextWithVariableBindings', () => {
               var nested = new ContextWithVariableBindings(null,
                 MapWrapper.createFromPairs([["key", "value"]]));