diff --git a/src/ng/browser.js b/src/ng/browser.js
index 768720e76a89..7a0e3fec29aa 100644
--- a/src/ng/browser.js
+++ b/src/ng/browser.js
@@ -125,7 +125,7 @@ function Browser(window, document, $log, $sniffer) {
 
   var lastBrowserUrl = location.href,
       baseElement = document.find('base'),
-      replacedUrl = null;
+      newLocation = null;
 
   /**
    * @name ng.$browser#url
@@ -163,21 +163,20 @@ function Browser(window, document, $log, $sniffer) {
           baseElement.attr('href', baseElement.attr('href'));
         }
       } else {
+        newLocation = url;
         if (replace) {
           location.replace(url);
-          replacedUrl = url;
         } else {
           location.href = url;
-          replacedUrl = null;
         }
       }
       return self;
     // getter
     } else {
-      // - the replacedUrl is a workaround for an IE8-9 issue with location.replace method that doesn't update
-      //   location.href synchronously
+      // - newLocation is a workaround for an IE7-9 issue with location.replace and location.href
+      //   methods not updating location.href synchronously.
       // - the replacement is a workaround for https://bugzilla.mozilla.org/show_bug.cgi?id=407172
-      return replacedUrl || location.href.replace(/%27/g,"'");
+      return newLocation || location.href.replace(/%27/g,"'");
     }
   };
 
@@ -185,6 +184,7 @@ function Browser(window, document, $log, $sniffer) {
       urlChangeInit = false;
 
   function fireUrlChange() {
+    newLocation = null;
     if (lastBrowserUrl == self.url()) return;
 
     lastBrowserUrl = self.url();
diff --git a/test/ng/browserSpecs.js b/test/ng/browserSpecs.js
index 3ec78e615341..6c6ac30e2195 100755
--- a/test/ng/browserSpecs.js
+++ b/test/ng/browserSpecs.js
@@ -287,7 +287,7 @@ describe('browser', function() {
       it('should default path in cookie to "" (empty string)', function () {
         browser.cookies('cookie', 'bender');
         // This only fails in Safari and IE when cookiePath returns undefined
-        // Where it now succeeds since baseHref return '' instead of undefined         
+        // Where it now succeeds since baseHref return '' instead of undefined
         expect(document.cookie).toEqual('cookie=bender');
       });
     });
@@ -535,9 +535,32 @@ describe('browser', function() {
       fakeWindow.setTimeout.flush();
       expect(callback).toHaveBeenCalledWith('http://server.new');
 
+      callback.reset();
+
       fakeWindow.fire('popstate');
       fakeWindow.fire('hashchange');
-      expect(callback).toHaveBeenCalledOnce();
+      expect(callback).not.toHaveBeenCalled();
+    });
+
+    describe('after an initial location change by browser.url method when neither history nor hashchange supported', function() {
+      beforeEach(function() {
+        sniffer.history = false;
+        sniffer.hashchange = false;
+        browser.url("http://server.current");
+      });
+
+      it('should fire callback with the correct URL on location change outside of angular', function() {
+        browser.onUrlChange(callback);
+
+        fakeWindow.location.href = 'http://server.new';
+        fakeWindow.setTimeout.flush();
+        expect(callback).toHaveBeenCalledWith('http://server.new');
+
+        fakeWindow.fire('popstate');
+        fakeWindow.fire('hashchange');
+        expect(callback).toHaveBeenCalledOnce();
+      });
+
     });
 
     it('should not fire urlChange if changed by browser.url method (polling)', function() {