diff --git a/src/generators/dom/visitors/Component.js b/src/generators/dom/visitors/Component.js
index ab953188e4..6e033fbce9 100644
--- a/src/generators/dom/visitors/Component.js
+++ b/src/generators/dom/visitors/Component.js
@@ -32,6 +32,7 @@ export default {
 		// Component has children, put them in a separate {{yield}} block
 		if ( hasChildren ) {
 			const yieldName = generator.getUniqueName( `render${name}YieldFragment` );
+			const { params } = generator.current;
 
 			generator.generateBlock( node, yieldName );
 
@@ -40,7 +41,7 @@ export default {
 			);
 
 			generator.current.builders.update.addLine(
-				`${name}_yieldFragment.update( changed, root );`
+				`${name}_yieldFragment.update( changed, ${params} );`
 			);
 
 			componentInitProperties.push( `_yield: ${name}_yieldFragment`);
diff --git a/test/generator/component-yield-multiple-in-each/_config.js b/test/generator/component-yield-multiple-in-each/_config.js
index 6a4c62702b..92c29fdf71 100644
--- a/test/generator/component-yield-multiple-in-each/_config.js
+++ b/test/generator/component-yield-multiple-in-each/_config.js
@@ -1,3 +1,10 @@
 export default {
-	html: '<p>Hello Alice</p><p>Hello Bob</p><p>Hello Charles</p>'
+	html: '<p>Hello Alice</p><p>Hello Bob</p><p>Hello Charles</p>',
+
+	test ( assert, component, target ) {
+		component.set({
+			people: [ 'Alice', 'Charles', 'Bob' ]
+		});
+		assert.htmlEqual( target.innerHTML, `<p>Hello Alice</p><p>Hello Charles</p><p>Hello Bob</p>` );
+	}
 };