diff --git a/packages/ember-htmlbars/lib/node-managers/component-node-manager.js b/packages/ember-htmlbars/lib/node-managers/component-node-manager.js
index e59a876a0eb..49421a8c8ff 100644
--- a/packages/ember-htmlbars/lib/node-managers/component-node-manager.js
+++ b/packages/ember-htmlbars/lib/node-managers/component-node-manager.js
@@ -65,6 +65,14 @@ ComponentNodeManager.create = function(renderNode, env, options) {
     createOptions._controller = getValue(parentScope.locals.controller);
   }
 
+  // this flag is set when a block was provided so that components can see if
+  // `this.get('template')` is truthy.  this is added for backwards compat only
+  // and accessing `template` prop on a component will trigger a deprecation
+  // 2.0TODO: remove
+  if (templates.default) {
+    createOptions._deprecatedFlagForBlockProvided = true;
+  }
+
   // Instantiate the component
   component = createComponent(component, isAngleBracket, createOptions, renderNode, env, attrs);
 
@@ -103,7 +111,8 @@ function extractComponentTemplates(component, _templates) {
   // The component may also provide a `template` property we should
   // respect (though this behavior is deprecated).
   let componentLayout = get(component, 'layout');
-  let componentTemplate = get(component, 'template');
+  let hasBlock = _templates && _templates.default;
+  let componentTemplate = hasBlock ? null : get(component, '_template');
   let layout, templates;
 
   if (componentLayout) {
@@ -126,7 +135,7 @@ function extractLegacyTemplate(_templates, componentTemplate) {
 
   // There is no block template provided but the component has a
   // `template` property.
-  if ((!templates || !templates.default) && componentTemplate) {
+  if ((!_templates || !_templates.default) && componentTemplate) {
     Ember.deprecate("Using deprecated `template` property on a Component.");
     templates = { default: componentTemplate.raw };
   } else {
diff --git a/packages/ember-htmlbars/lib/node-managers/view-node-manager.js b/packages/ember-htmlbars/lib/node-managers/view-node-manager.js
index 76d1d2b0bbb..b4dd7899112 100644
--- a/packages/ember-htmlbars/lib/node-managers/view-node-manager.js
+++ b/packages/ember-htmlbars/lib/node-managers/view-node-manager.js
@@ -60,14 +60,15 @@ ViewNodeManager.create = function(renderNode, env, attrs, found, parentView, pat
     if (layout) {
       componentInfo.layout = layout;
       if (!contentTemplate) {
-        let template = get(component, 'template');
+        let template = getTemplate(component);
+
         if (template) {
           Ember.deprecate("Using deprecated `template` property on a " + (component.isView ? 'View' : 'Component') + ".");
           contentTemplate = template.raw;
         }
       }
     } else {
-      componentInfo.layout = get(component, 'template') || componentInfo.layout;
+      componentInfo.layout = getTemplate(component) || componentInfo.layout;
     }
 
     renderNode.emberView = component;
@@ -148,6 +149,10 @@ ViewNodeManager.prototype.rerender = function(env, attrs, visitor) {
   }, this);
 };
 
+function getTemplate(componentOrView) {
+  return componentOrView.isComponent ? get(componentOrView, '_template') : get(componentOrView, 'template');
+}
+
 export function createOrUpdateComponent(component, options, createOptions, renderNode, env, attrs = {}) {
   let snapshot = takeSnapshot(attrs);
   let props = merge({}, options);
diff --git a/packages/ember-htmlbars/tests/helpers/-html-safe-test.js b/packages/ember-htmlbars/tests/helpers/-html-safe-test.js
index e09d3ab34ee..0b14717174d 100644
--- a/packages/ember-htmlbars/tests/helpers/-html-safe-test.js
+++ b/packages/ember-htmlbars/tests/helpers/-html-safe-test.js
@@ -33,7 +33,7 @@ QUnit.test('adds the attribute to the element', function() {
   component = Component.create({
     container,
 
-    template: compile(`<div style={{-html-safe "display: none;"}}></div>`)
+    layout: compile(`<div style={{-html-safe "display: none;"}}></div>`)
   });
 
   runAppend(component);
@@ -43,11 +43,11 @@ QUnit.test('adds the attribute to the element', function() {
 
 if (!EmberDev.runningProdBuild) {
 
-  QUnit.test('adds the attribute to the element', function() {
+  QUnit.test('no warnings are triggered from setting style attribute', function() {
     component = Component.create({
       container,
 
-      template: compile(`<div style={{-html-safe "display: none;"}}></div>`)
+      layout: compile(`<div style={{-html-safe "display: none;"}}></div>`)
     });
 
     runAppend(component);
diff --git a/packages/ember-htmlbars/tests/integration/component_invocation_test.js b/packages/ember-htmlbars/tests/integration/component_invocation_test.js
index 0c3900d955b..64e949c50b6 100644
--- a/packages/ember-htmlbars/tests/integration/component_invocation_test.js
+++ b/packages/ember-htmlbars/tests/integration/component_invocation_test.js
@@ -248,6 +248,79 @@ QUnit.test('with ariaRole specified', function() {
   equal(view.$('#aria-test').attr('role'), 'main', 'role attribute is applied');
 });
 
+QUnit.test('`template` is true when block supplied', function() {
+  expect(3);
+
+  let innerComponent;
+  registry.register('component:with-block', Component.extend({
+    init() {
+      this._super(...arguments);
+      innerComponent = this;
+    }
+  }));
+
+  view = EmberView.extend({
+    template: compile('{{#with-block}}In template{{/with-block}}'),
+    container: container
+  }).create();
+
+  runAppend(view);
+
+  equal(jQuery('#qunit-fixture').text(), 'In template');
+
+  let template;
+  expectDeprecation(function() {
+    template = get(innerComponent, 'template');
+  }, /Accessing 'template' in .+ is deprecated. To determine if a block was specified to .+ please use '{{#if hasBlock}}' in the components layout./);
+
+
+  ok(template, 'template property is truthy when a block was provided');
+});
+
+QUnit.test('`template` is false when no block supplied', function() {
+  expect(2);
+
+  let innerComponent;
+  registry.register('component:without-block', Component.extend({
+    init() {
+      this._super(...arguments);
+      innerComponent = this;
+    }
+  }));
+
+  view = EmberView.extend({
+    template: compile('{{without-block}}'),
+    container: container
+  }).create();
+
+  runAppend(view);
+
+  let template;
+  expectDeprecation(function() {
+    template = get(innerComponent, 'template');
+  }, /Accessing 'template' in .+ is deprecated. To determine if a block was specified to .+ please use '{{#if hasBlock}}' in the components layout./);
+
+  ok(!template, 'template property is falsey when a block was not provided');
+});
+
+QUnit.test('`template` specified in a component is overridden by block', function() {
+  expect(1);
+
+  registry.register('component:with-block', Component.extend({
+    layout: compile('{{yield}}'),
+    template: compile('Oh, noes!')
+  }));
+
+  view = EmberView.extend({
+    template: compile('{{#with-block}}Whoop, whoop!{{/with-block}}'),
+    container: container
+  }).create();
+
+  runAppend(view);
+
+  equal(view.$().text(), 'Whoop, whoop!', 'block provided always overrides template property');
+});
+
 if (Ember.FEATURES.isEnabled('ember-views-component-block-info')) {
   QUnit.test('hasBlock is true when block supplied', function() {
     expect(1);
diff --git a/packages/ember-metal-views/lib/renderer.js b/packages/ember-metal-views/lib/renderer.js
index d5098f89131..bfa37b29b3a 100755
--- a/packages/ember-metal-views/lib/renderer.js
+++ b/packages/ember-metal-views/lib/renderer.js
@@ -20,7 +20,7 @@ Renderer.prototype.prerenderTopLevelView =
     view._renderNode = renderNode;
 
     var layout = get(view, 'layout');
-    var template = get(view, 'template');
+    var template = view.isComponent ? get(view, '_template') : get(view, 'template');
 
     var componentInfo = { component: view, layout: layout };
 
diff --git a/packages/ember-views/lib/views/component.js b/packages/ember-views/lib/views/component.js
index 39c1707f351..118379a764d 100644
--- a/packages/ember-views/lib/views/component.js
+++ b/packages/ember-views/lib/views/component.js
@@ -114,7 +114,6 @@ function validateAction(component, actionName) {
 */
 var Component = View.extend(TargetActionSupport, ComponentTemplateDeprecation, {
   isComponent: true,
-
   /*
     This is set so that the proto inspection in appendTemplatedView does not
     think that it should set the components `context` to that of the parent view.
@@ -154,8 +153,23 @@ var Component = View.extend(TargetActionSupport, ComponentTemplateDeprecation, {
   @deprecated
   @property template
   */
-  template: computed('templateName', {
+  template: computed('_template', {
+    get() {
+      Ember.deprecate(`Accessing 'template' in ${this} is deprecated. To determine if a block was specified to ${this} please use '{{#if hasBlock}}' in the components layout.`);
+
+      return get(this, '_template');
+    },
+
+    set(key, value) {
+      return set(this, '_template', value);
+    }
+  }),
+
+  _template: computed('templateName', {
     get() {
+      if (get(this, '_deprecatedFlagForBlockProvided')) {
+        return true;
+      }
       var templateName = get(this, 'templateName');
       var template = this.templateForName(templateName, 'template');