diff --git a/packages/core/src/render3/di.ts b/packages/core/src/render3/di.ts
index d967b48e20..48cb229e5c 100644
--- a/packages/core/src/render3/di.ts
+++ b/packages/core/src/render3/di.ts
@@ -21,7 +21,7 @@ import {AttributeMarker, TContainerNode, TElementContainerNode, TElementNode, TN
 import {DECLARATION_VIEW, HOST_NODE, INJECTOR, LViewData, TData, TVIEW, TView} from './interfaces/view';
 import {assertNodeOfPossibleTypes} from './node_assert';
 import {getPreviousOrParentTNode, getViewData, setTNodeAndViewData} from './state';
-import {getParentInjectorIndex, getParentInjectorView, getParentInjectorViewOffset, hasParentInjector, isComponent, stringify} from './util';
+import {getParentInjectorIndex, getParentInjectorView, hasParentInjector, isComponent, stringify} from './util';
 
 /**
  * Defines if the call to `inject` should include `viewProviders` in its resolution.
@@ -196,7 +196,7 @@ export function getInjectorIndex(tNode: TNode, hostView: LViewData): number {
  */
 export function getParentInjectorLocation(tNode: TNode, view: LViewData): RelativeInjectorLocation {
   if (tNode.parent && tNode.parent.injectorIndex !== -1) {
-    return tNode.parent.injectorIndex as any;  // view offset is 0
+    return tNode.parent.injectorIndex as any;  // ViewOffset is 0, AcrossHostBoundary is 0
   }
 
   // For most cases, the parent injector index can be found on the host node (e.g. for component
@@ -209,8 +209,13 @@ export function getParentInjectorLocation(tNode: TNode, view: LViewData): Relati
     hostTNode = view[HOST_NODE] !;
     viewOffset++;
   }
+  const acrossHostBoundary = hostTNode && hostTNode.type === TNodeType.Element ?
+      RelativeInjectorLocationFlags.AcrossHostBoundary :
+      0;
+
   return hostTNode ?
-      hostTNode.injectorIndex | (viewOffset << RelativeInjectorLocationFlags.ViewOffsetShift) :
+      hostTNode.injectorIndex | (viewOffset << RelativeInjectorLocationFlags.ViewOffsetShift) |
+          acrossHostBoundary :
       -1 as any;
 }
 
@@ -507,7 +512,8 @@ function shouldSearchParent(flags: InjectFlags, parentLocation: RelativeInjector
     number {
   return !(
       flags & InjectFlags.Self ||
-      (flags & InjectFlags.Host && getParentInjectorViewOffset(parentLocation) > 0));
+      (flags & InjectFlags.Host &&
+       ((parentLocation as any as number) & RelativeInjectorLocationFlags.AcrossHostBoundary)));
 }
 
 export function injectInjector() {
diff --git a/packages/core/src/render3/interfaces/injector.ts b/packages/core/src/render3/interfaces/injector.ts
index 0bf4301dad..b49f94cf69 100644
--- a/packages/core/src/render3/interfaces/injector.ts
+++ b/packages/core/src/render3/interfaces/injector.ts
@@ -26,7 +26,8 @@ export interface RelativeInjectorLocation { __brand__: 'RelativeInjectorLocation
 
 export const enum RelativeInjectorLocationFlags {
   InjectorIndexMask = 0b111111111111111,
-  ViewOffsetShift = 15,
+  AcrossHostBoundary = 0b1000000000000000,
+  ViewOffsetShift = 16,
   NO_PARENT = -1,
 }
 
diff --git a/packages/core/test/render3/di_spec.ts b/packages/core/test/render3/di_spec.ts
index 2675c8595c..d0fca9879a 100644
--- a/packages/core/test/render3/di_spec.ts
+++ b/packages/core/test/render3/di_spec.ts
@@ -1010,8 +1010,10 @@ describe('di', () => {
         }).toThrowError(/NodeInjector: NOT_FOUND \[DirB\]/);
       });
 
-      it('should not pass component boundary with @Host', () => {
-        let dirA: DirA;
+      describe('@Host', () => {
+        let dirA: DirA|null = null;
+
+        beforeEach(() => dirA = null);
 
         class DirA {
           constructor(@Host() public dirB: DirB) {}
@@ -1023,28 +1025,106 @@ describe('di', () => {
           });
         }
 
-        /** <div dirA></div> */
-        const Comp = createComponent('comp', function(rf: RenderFlags, ctx: any) {
-          if (rf & RenderFlags.Create) {
-            element(0, 'div', ['dirA', '']);
+        it('should not find providers across component boundaries', () => {
+          /** <div dirA></div> */
+          const Comp = createComponent('comp', function(rf: RenderFlags, ctx: any) {
+            if (rf & RenderFlags.Create) {
+              element(0, 'div', ['dirA', '']);
+            }
+          }, 1, 0, [DirA, DirB]);
+
+          /* <comp dirB></comp> */
+          const App = createComponent('app', function(rf: RenderFlags, ctx: any) {
+            if (rf & RenderFlags.Create) {
+              element(0, 'comp', ['dirB', '']);
+            }
+          }, 1, 0, [Comp, DirB]);
+
+          expect(() => {
+            new ComponentFixture(App);
+          }).toThrowError(/NodeInjector: NOT_FOUND \[DirB\]/);
+        });
+
+        it('should not find providers across component boundaries if in inline view', () => {
+          let comp !: any;
+
+          /**
+           * % if (showing) {
+           *   <div dirA></div>
+           * % }
+           */
+          const Comp = createComponent('comp', function(rf: RenderFlags, ctx: any) {
+            if (rf & RenderFlags.Create) {
+              container(0);
+            }
+            if (rf & RenderFlags.Update) {
+              containerRefreshStart(0);
+              {
+                if (ctx.showing) {
+                  let rf1 = embeddedViewStart(0, 1, 0);
+                  if (rf1 & RenderFlags.Create) {
+                    element(0, 'div', ['dirA', '']);
+                  }
+                  embeddedViewEnd();
+                }
+              }
+              containerRefreshEnd();
+            }
+          }, 1, 0, [DirA, DirB]);
+
+          /* <comp dirB></comp> */
+          const App = createComponent('app', function(rf: RenderFlags, ctx: any) {
+            if (rf & RenderFlags.Create) {
+              element(0, 'comp', ['dirB', '']);
+            }
+            if (rf & RenderFlags.Update) {
+              comp = getDirectiveOnNode(0);
+            }
+          }, 1, 0, [Comp, DirB]);
+
+          const fixture = new ComponentFixture(App);
+          expect(() => {
+            comp.showing = true;
+            fixture.update();
+          }).toThrowError(/NodeInjector: NOT_FOUND \[DirB\]/);
+        });
+
+        it('should find providers across embedded views if not passing component boundary', () => {
+          let dirB !: DirB;
+
+          function IfTemplate(rf: RenderFlags, ctx: any) {
+            if (rf & RenderFlags.Create) {
+              element(0, 'div', ['dirA', '']);
+            }
           }
-        }, 1, 0, [DirA, DirB]);
 
-        /* <comp dirB></comp> */
-        const App = createComponent('app', function(rf: RenderFlags, ctx: any) {
-          if (rf & RenderFlags.Create) {
-            element(0, 'comp', ['dirB', '']);
-          }
-        }, 1, 0, [Comp, DirB]);
+          /**
+           * <div dirB>
+           *   <div *ngIf="showing" dirA></div>
+           * </div>
+           */
+          const App = createComponent('app', function(rf: RenderFlags, ctx: any) {
+            if (rf & RenderFlags.Create) {
+              elementStart(0, 'div', ['dirB', '']);
+              { template(1, IfTemplate, 1, 0, '', ['ngIf', '']); }
+              elementEnd();
+            }
+            if (rf & RenderFlags.Update) {
+              elementProperty(1, 'ngIf', bind(ctx.showing));
 
-        expect(() => {
-          new ComponentFixture(App);
-        }).toThrowError(/NodeInjector: NOT_FOUND \[DirB\]/);
+              // testing only
+              dirB = getDirectiveOnNode(0);
+            }
+          }, 2, 1, [NgIf, DirA, DirB]);
 
+          const fixture = new ComponentFixture(App);
+          fixture.component.showing = true;
+          fixture.update();
+
+          expect(dirA !.dirB).toEqual(dirB);
+        });
       });
-
     });
-
   });
 
   describe('Special tokens', () => {