diff --git a/src/ng/location.js b/src/ng/location.js
index 730d2433b155..7b0c6ec07bd7 100644
--- a/src/ng/location.js
+++ b/src/ng/location.js
@@ -84,6 +84,7 @@ function serverBase(url) {
  * @param {string} basePrefix url path prefix
  */
 function LocationHtml5Url(appBase, basePrefix) {
+  this.$$html5 = true;
   basePrefix = basePrefix || '';
   var appBaseNoFile = stripFile(appBase);
   /**
@@ -140,7 +141,8 @@ function LocationHtml5Url(appBase, basePrefix) {
 
 /**
  * LocationHashbangUrl represents url
- * This object is exposed as $location service when html5 history api is disabled or not supported
+ * This object is exposed as $location service when developer doesn't opt into html5 mode.
+ * It also serves as the base class for html5 mode fallback on legacy browsers.
  *
  * @constructor
  * @param {string} appBase application base URL
@@ -149,18 +151,25 @@ function LocationHtml5Url(appBase, basePrefix) {
 function LocationHashbangUrl(appBase, hashPrefix) {
   var appBaseNoFile = stripFile(appBase);
 
+  matchUrl(appBase, this);
+
+
   /**
    * Parse given hashbang url into properties
    * @param {string} url Hashbang url
    * @private
    */
   this.$$parse = function(url) {
-    matchUrl(url, this);
     var withoutBaseUrl = beginsWith(appBase, url) || beginsWith(appBaseNoFile, url);
     if (!isString(withoutBaseUrl)) {
       throw $locationMinErr('istart', 'Invalid url "{0}", does not start with "{1}".', url, appBase);
     }
-    var withoutHashUrl = withoutBaseUrl.charAt(0) == '#' ? beginsWith(hashPrefix, withoutBaseUrl) : withoutBaseUrl;
+    var withoutHashUrl = withoutBaseUrl.charAt(0) == '#'
+        ? beginsWith(hashPrefix, withoutBaseUrl)
+        : (this.$$html5)
+          ? withoutBaseUrl
+          : '';
+
     if (!isString(withoutHashUrl)) {
       throw $locationMinErr('nohash', 'Invalid url "{0}", missing hash prefix "{1}".', url, hashPrefix);
     }
@@ -198,6 +207,7 @@ function LocationHashbangUrl(appBase, hashPrefix) {
  * @param {string} hashPrefix hashbang prefix
  */
 function LocationHashbangInHtml5Url(appBase, hashPrefix) {
+  this.$$html5 = true;
   LocationHashbangUrl.apply(this, arguments);
 
   var appBaseNoFile = stripFile(appBase);
@@ -220,6 +230,12 @@ LocationHashbangInHtml5Url.prototype =
   LocationHashbangUrl.prototype =
   LocationHtml5Url.prototype = {
 
+  /**
+   * Are we in html5 mode?
+   * @private
+   */
+  $$html5: false,
+
   /**
    * Has any change been replacing ?
    * @private
diff --git a/test/ng/locationSpec.js b/test/ng/locationSpec.js
index 708b4a136bcf..757ec16e7416 100644
--- a/test/ng/locationSpec.js
+++ b/test/ng/locationSpec.js
@@ -627,7 +627,7 @@ describe('$location', function() {
       );
     });
 
-   it('should correctly convert html5 url with path matching basepath to hashbang url', function () {
+    it('should correctly convert html5 url with path matching basepath to hashbang url', function () {
       initService(true, '!', false);
       inject(
         initBrowser('http://domain.com/base/index.html', '/base/index.html'),
@@ -1422,16 +1422,39 @@ describe('$location', function() {
   describe('LocationHashbangUrl', function() {
     var location;
 
-    beforeEach(function() {
-      location = new LocationHashbangUrl('http://server/pre/', 'http://server/pre/#/path');
-    });
-
     it('should rewrite URL', function() {
+      location = new LocationHashbangUrl('http://server/pre/', '#');
+
       expect(location.$$rewrite('http://other')).toEqual(undefined);
       expect(location.$$rewrite('http://server/pre/')).toEqual('http://server/pre/');
       expect(location.$$rewrite('http://server/pre/#otherPath')).toEqual('http://server/pre/#otherPath');
       expect(location.$$rewrite('javascript:void(0)')).toEqual(undefined);
     });
+
+    it("should not set hash if one was not originally specified", function() {
+      location = new LocationHashbangUrl('http://server/pre/index.html', '#');
+
+      location.$$parse('http://server/pre/index.html')
+      expect(location.url()).toBe('');
+      expect(location.absUrl()).toBe('http://server/pre/index.html');
+    });
+
+    it("should parse hash if one was specified", function() {
+      location = new LocationHashbangUrl('http://server/pre/index.html', '#');
+
+      location.$$parse('http://server/pre/index.html#/foo/bar')
+      expect(location.url()).toBe('/foo/bar');
+      expect(location.absUrl()).toBe('http://server/pre/index.html#/foo/bar');
+    });
+
+
+    it("should prefix hash url with / if one was originally missing", function() {
+      location = new LocationHashbangUrl('http://server/pre/index.html', '#');
+
+      location.$$parse('http://server/pre/index.html#not-starting-with-slash')
+      expect(location.url()).toBe('/not-starting-with-slash');
+      expect(location.absUrl()).toBe('http://server/pre/index.html#/not-starting-with-slash');
+    });
   });