diff --git a/src/internal/ssr.js b/src/internal/ssr.js
index 762c01a3c5..e6ed110a86 100644
--- a/src/internal/ssr.js
+++ b/src/internal/ssr.js
@@ -65,28 +65,39 @@ export function debug(file, line, column, values) {
 	return '';
 }
 
-export function create_ssr_component($$render) {
+let on_destroy;
+
+export function create_ssr_component(fn) {
+	function $$render(result, props, bindings, slots) {
+		const parent_component = current_component;
+
+		const $$ = {
+			// these will be immediately discarded
+			on_mount: [],
+			before_render: [],
+			after_render: [],
+
+			on_destroy,
+			context: new Map(parent_component ? parent_component.$$.context : []),
+			callbacks: blankObject()
+		};
+
+		set_current_component({ $$ });
+
+		const html = fn(result, props, bindings, slots);
+
+		set_current_component(parent_component);
+		return html;
+	}
+
 	return {
 		render: (props = {}, options = {}) => {
-			const parent_component = current_component;
-
-			// TODO do we need on_ready, since on_mount,
-			// before_render and after_render don't run?
-			const $$ = {
-				on_mount: [],
-				on_destroy: [],
-				before_render: [],
-				after_render: [],
-				context: new Map(parent_component ? parent_component.$$.context : []),
-				callbacks: blankObject()
-			};
-
-			set_current_component({ $$ });
+			on_destroy = [];
 
 			const result = { head: '', css: new Set() };
 			const html = $$render(result, props, {}, options);
 
-			run_all($$.on_destroy);
+			run_all(on_destroy);
 
 			return {
 				html,
diff --git a/test/runtime/samples/context-api-b/Leaf.svelte b/test/runtime/samples/context-api-b/Leaf.svelte
new file mode 100644
index 0000000000..0e6e1f34a5
--- /dev/null
+++ b/test/runtime/samples/context-api-b/Leaf.svelte
@@ -0,0 +1,8 @@
+<script>
+	import { getContext } from 'svelte';
+	import { ID } from './Nested.svelte';
+
+	const name = getContext('test');
+</script>
+
+<div>{name}</div>
\ No newline at end of file
diff --git a/test/runtime/samples/context-api-b/Nested.svelte b/test/runtime/samples/context-api-b/Nested.svelte
new file mode 100644
index 0000000000..d7f709133f
--- /dev/null
+++ b/test/runtime/samples/context-api-b/Nested.svelte
@@ -0,0 +1,10 @@
+<script>
+	import { getContext, setContext } from 'svelte';
+
+	export let name = '';
+
+	const parentName = getContext('test');
+	setContext('test', parentName ? parentName + '/' + name : name);
+</script>
+
+<slot></slot>
\ No newline at end of file
diff --git a/test/runtime/samples/context-api-b/_config.js b/test/runtime/samples/context-api-b/_config.js
new file mode 100644
index 0000000000..70dff54c06
--- /dev/null
+++ b/test/runtime/samples/context-api-b/_config.js
@@ -0,0 +1,6 @@
+export default {
+	html: `
+		<div>foo/bar</div>
+		<div>foo/baz</div>
+	`
+};
\ No newline at end of file
diff --git a/test/runtime/samples/context-api-b/main.svelte b/test/runtime/samples/context-api-b/main.svelte
new file mode 100644
index 0000000000..ddad5267f7
--- /dev/null
+++ b/test/runtime/samples/context-api-b/main.svelte
@@ -0,0 +1,13 @@
+<script>
+	import Nested from './Nested.svelte';
+	import Leaf from './Leaf.svelte';
+</script>
+
+<Nested name='foo'>
+	<Nested name='bar'>
+		<Leaf/>
+	</Nested>
+	<Nested name='baz'>
+		<Leaf/>
+	</Nested>
+</Nested>
\ No newline at end of file