diff --git a/src/datepickerPopup/popup.js b/src/datepickerPopup/popup.js
index 12ef4545a8..b04311b269 100644
--- a/src/datepickerPopup/popup.js
+++ b/src/datepickerPopup/popup.js
@@ -434,7 +434,7 @@ function($scope, $element, $attrs, $compile, $log, $parse, $window, $document, $
 
 .directive('uibDatepickerPopupWrap', function() {
   return {
-    replace: true,
+    restrict: 'A',
     transclude: true,
     templateUrl: function(element, attrs) {
       return attrs.templateUrl || 'uib/template/datepickerPopup/popup.html';
diff --git a/src/datepickerPopup/test/popup.spec.js b/src/datepickerPopup/test/popup.spec.js
index 6376960f9a..ca7ae82f8f 100644
--- a/src/datepickerPopup/test/popup.spec.js
+++ b/src/datepickerPopup/test/popup.spec.js
@@ -1344,7 +1344,7 @@ describe('datepicker popup', function() {
       $compile(elm)($rootScope);
       $rootScope.$digest();
 
-      expect(elm.children().eq(1).html()).toBe('baz');
+      expect(elm.children().eq(1).html()).toBe('<div>baz</div>');
     });
   });
 
diff --git a/template/datepickerPopup/popup.html b/template/datepickerPopup/popup.html
index 0a9b73d706..0af206a4a7 100644
--- a/template/datepickerPopup/popup.html
+++ b/template/datepickerPopup/popup.html
@@ -1,12 +1,10 @@
-<div>
-  <ul class="uib-datepicker-popup dropdown-menu uib-position-measure" dropdown-nested ng-if="isOpen" ng-keydown="keydown($event)" ng-click="$event.stopPropagation()">
-    <li ng-transclude></li>
-    <li ng-if="showButtonBar" class="uib-button-bar">
-      <span class="btn-group pull-left">
-        <button type="button" class="btn btn-sm btn-info uib-datepicker-current" ng-click="select('today', $event)" ng-disabled="isDisabled('today')">{{ getText('current') }}</button>
-        <button type="button" class="btn btn-sm btn-danger uib-clear" ng-click="select(null, $event)">{{ getText('clear') }}</button>
-      </span>
-      <button type="button" class="btn btn-sm btn-success pull-right uib-close" ng-click="close($event)">{{ getText('close') }}</button>
-    </li>
-  </ul>
-</div>
+<ul class="uib-datepicker-popup dropdown-menu uib-position-measure" dropdown-nested ng-if="isOpen" ng-keydown="keydown($event)" ng-click="$event.stopPropagation()">
+  <li ng-transclude></li>
+  <li ng-if="showButtonBar" class="uib-button-bar">
+    <span class="btn-group pull-left">
+      <button type="button" class="btn btn-sm btn-info uib-datepicker-current" ng-click="select('today', $event)" ng-disabled="isDisabled('today')">{{ getText('current') }}</button>
+      <button type="button" class="btn btn-sm btn-danger uib-clear" ng-click="select(null, $event)">{{ getText('clear') }}</button>
+    </span>
+    <button type="button" class="btn btn-sm btn-success pull-right uib-close" ng-click="close($event)">{{ getText('close') }}</button>
+  </li>
+</ul>