diff --git a/packages/ember-htmlbars/lib/hooks/component.js b/packages/ember-htmlbars/lib/hooks/component.js
index 927052f1656..fe589b35b5f 100644
--- a/packages/ember-htmlbars/lib/hooks/component.js
+++ b/packages/ember-htmlbars/lib/hooks/component.js
@@ -12,6 +12,7 @@ import {
   COMPONENT_HASH,
   isComponentCell,
   mergeInNewHash,
+  processPositionalParamsFromCell,
 } from 'ember-htmlbars/keywords/closure-component';
 
 var IS_ANGLE_CACHE = new Cache(1000, function(key) {
@@ -33,6 +34,21 @@ export default function componentHook(renderNode, env, scope, _tagName, params,
     let componentCell = stream.value();
     if (isComponentCell(componentCell)) {
       tagName = componentCell[COMPONENT_PATH];
+
+      /*
+       * Processing positional params before merging into a hash must be done
+       * here to avoid problems with rest positional parameters rendered using
+       * the dot notation.
+       *
+       * Closure components (for the contextual component feature) do not
+       * actually keep the positional params, but process them at each level.
+       * Therefore, when rendering a closure component with the component
+       * helper we process the parameters and attributes and then merge those
+       * on top of the closure component attributes.
+       *
+       */
+      processPositionalParamsFromCell(componentCell, params, attrs);
+      params = [];
       attrs = mergeInNewHash(componentCell[COMPONENT_HASH], attrs);
     }
   }
diff --git a/packages/ember-htmlbars/lib/keywords/closure-component.js b/packages/ember-htmlbars/lib/keywords/closure-component.js
index 79a76687f1f..3c53d273435 100644
--- a/packages/ember-htmlbars/lib/keywords/closure-component.js
+++ b/packages/ember-htmlbars/lib/keywords/closure-component.js
@@ -74,19 +74,23 @@ export function isComponentCell(component) {
 }
 
 function createNestedClosureComponentCell(componentCell, params, hash) {
-  let positionalParams = componentCell[COMPONENT_POSITIONAL_PARAMS];
-
   // This needs to be done in each nesting level to avoid raising assertions
-  processPositionalParams(null, positionalParams, params, hash);
+  processPositionalParamsFromCell(componentCell, params, hash);
 
   return {
     [COMPONENT_PATH]: componentCell[COMPONENT_PATH],
     [COMPONENT_HASH]: mergeInNewHash(componentCell[COMPONENT_HASH], hash),
-    [COMPONENT_POSITIONAL_PARAMS]: positionalParams,
+    [COMPONENT_POSITIONAL_PARAMS]: componentCell[COMPONENT_POSITIONAL_PARAMS],
     [COMPONENT_CELL]: true
   };
 }
 
+export function processPositionalParamsFromCell(componentCell, params, hash) {
+  let positionalParams = componentCell[COMPONENT_POSITIONAL_PARAMS];
+
+  processPositionalParams(null, positionalParams, params, hash);
+}
+
 function createNewClosureComponentCell(env, componentPath, params, hash) {
   let positionalParams = getPositionalParams(env.owner, componentPath);
 
diff --git a/packages/ember-htmlbars/lib/keywords/element-component.js b/packages/ember-htmlbars/lib/keywords/element-component.js
index 8878e4c61b6..84b9556cec6 100644
--- a/packages/ember-htmlbars/lib/keywords/element-component.js
+++ b/packages/ember-htmlbars/lib/keywords/element-component.js
@@ -1,12 +1,11 @@
 import assign from 'ember-metal/assign';
 import {
   COMPONENT_PATH,
-  COMPONENT_POSITIONAL_PARAMS,
   COMPONENT_HASH,
   isComponentCell,
   mergeInNewHash,
+  processPositionalParamsFromCell,
 } from  './closure-component';
-import { processPositionalParams } from 'ember-htmlbars/utils/extract-positional-params';
 
 export default {
   setupState(lastState, env, scope, params, hash) {
@@ -58,10 +57,9 @@ function render(morph, env, scope, [path, ...params], hash, template, inverse, v
 
   if (isComponentCell(path)) {
     let closureComponent = env.hooks.getValue(path);
-    let positionalParams = closureComponent[COMPONENT_POSITIONAL_PARAMS];
 
     // This needs to be done in each nesting level to avoid raising assertions
-    processPositionalParams(null, positionalParams, params, hash);
+    processPositionalParamsFromCell(closureComponent, params, hash);
     params = [];
     hash = mergeInNewHash(closureComponent[COMPONENT_HASH], hash);
   }
diff --git a/packages/ember-htmlbars/lib/utils/extract-positional-params.js b/packages/ember-htmlbars/lib/utils/extract-positional-params.js
index bc412c6adb4..8747920396b 100644
--- a/packages/ember-htmlbars/lib/utils/extract-positional-params.js
+++ b/packages/ember-htmlbars/lib/utils/extract-positional-params.js
@@ -11,9 +11,9 @@ export default function extractPositionalParams(renderNode, component, params, a
 }
 
 export function processPositionalParams(renderNode, positionalParams, params, attrs) {
-  let isNamed = typeof positionalParams === 'string';
+  let isRest = typeof positionalParams === 'string';
 
-  if (isNamed) {
+  if (isRest) {
     processRestPositionalParameters(renderNode, positionalParams, params, attrs);
   } else {
     processNamedPositionalParameters(renderNode, positionalParams, params, attrs);
diff --git a/packages/ember-htmlbars/tests/helpers/closure_component_test.js b/packages/ember-htmlbars/tests/helpers/closure_component_test.js
index 5b3c37ef7e9..dde15a187f1 100644
--- a/packages/ember-htmlbars/tests/helpers/closure_component_test.js
+++ b/packages/ember-htmlbars/tests/helpers/closure_component_test.js
@@ -429,6 +429,33 @@ if (isEnabled('ember-contextual-components')) {
     equal(component.$().text(), expectedText, '-looked-up component rendered');
   });
 
+  QUnit.test('renders with dot path and with rest positional parameters', function() {
+    let LookedUp = Component.extend();
+    LookedUp.reopenClass({
+      positionalParams: 'params'
+    });
+    owner.register(
+      'component:-looked-up',
+      LookedUp
+    );
+    let expectedText = 'Hodi';
+    owner.register(
+      'template:components/-looked-up',
+      compile('{{params}}')
+    );
+
+    let template = compile('{{#with (hash lookedup=(component "-looked-up")) as |object|}}{{object.lookedup expectedText "Hola"}}{{/with}}');
+    component = Component.extend({
+      [OWNER]: owner,
+      template
+    }).create({
+      expectedText
+    });
+
+    runAppend(component);
+    equal(component.$().text(), `${expectedText},Hola`, '-looked-up component rendered with rest params');
+  });
+
   QUnit.test('adding parameters to a closure component\'s instance does not add it to other instances', function(assert) {
     owner.register(
       'template:components/select-box',