diff --git a/compiler/generate/index.js b/compiler/generate/index.js
index 5e405566f2..22b37ee52c 100644
--- a/compiler/generate/index.js
+++ b/compiler/generate/index.js
@@ -235,17 +235,29 @@ export default function generate ( parsed, template ) {
 						}
 
 						else if ( attribute.type === 'Binding' ) {
-							if ( attribute.value in current.contexts ) {
-								throw new Error( `Can only bind top-level properties` );
-							}
+							const parts = attribute.value.split( '.' );
+							const contextual = parts[0] in current.contexts;
 
 							const handler = current.counter( `${name}ChangeHandler` );
+							let setter;
+
+							if ( contextual ) {
+								allUsedContexts.add( parts[0] );
+								setter = deindent`
+									var context = this.__context.${parts[0]};
+									context.${parts.slice( 1 ).join( '.' )} = this.value;
+									component.set({ ${current.contextChain[0]}: component.get( '${current.contextChain[0]}' ) });
+								`;
+							} else {
+								setter = `component.set({ ${attribute.value}: ${name}.value });`;
+							}
 
 							initStatements.push( deindent`
 								var ${name}_updating = false;
+
 								function ${handler} () {
 									${name}_updating = true;
-									component.set({ ${attribute.value}: ${name}.value });
+									${setter}
 									${name}_updating = false;
 								}
 
@@ -253,7 +265,7 @@ export default function generate ( parsed, template ) {
 							` );
 
 							updateStatements.push( deindent`
-								if ( !${name}_updating ) ${name}.value = root.${attribute.value};
+								if ( !${name}_updating ) ${name}.value = ${contextual ? attribute.value : `root.${attribute.value}`}
 							` );
 
 							teardownStatements.push( deindent`
diff --git a/compiler/parse/read/directives.js b/compiler/parse/read/directives.js
index 3573a5ded3..e1bd3f6c30 100644
--- a/compiler/parse/read/directives.js
+++ b/compiler/parse/read/directives.js
@@ -49,7 +49,7 @@ export function readBindingDirective ( parser, start, name ) {
 		null
 	);
 
-	const value = parser.read( /[a-zA-Z_$][a-zA-Z0-9_$]*/ ); // TODO – keypaths? /([a-zA-Z_$][a-zA-Z0-9_$]*)(\.[a-zA-Z_$][a-zA-Z0-9_$]*)*/
+	const value = parser.read( /([a-zA-Z_$][a-zA-Z0-9_$]*)(\.[a-zA-Z_$][a-zA-Z0-9_$]*)*/ );
 	if ( !value ) parser.error( `Expected valid property name` );
 
 	if ( quoteMark ) {
diff --git a/test/compiler/binding-input-text-deep/_config.js b/test/compiler/binding-input-text-deep/_config.js
new file mode 100644
index 0000000000..ada981c7a5
--- /dev/null
+++ b/test/compiler/binding-input-text-deep/_config.js
@@ -0,0 +1,31 @@
+import * as assert from 'assert';
+
+export default {
+	data: {
+		items: [
+			{ description: 'one' },
+			{ description: 'two' },
+			{ description: 'three' }
+		]
+	},
+	html: `<div><input><p>one</p></div><div><input><p>two</p></div><div><input><p>three</p></div><!--#each items-->`,
+	test ( component, target, window ) {
+		const inputs = [ ...target.querySelectorAll( 'input' ) ];
+
+		assert.equal( inputs[0].value, 'one' );
+
+		const event = new window.Event( 'input' );
+
+		inputs[1].value = 'four';
+		inputs[1].dispatchEvent( event );
+
+		assert.equal( target.innerHTML, `<div><input><p>one</p></div><div><input><p>four</p></div><div><input><p>three</p></div><!--#each items-->` );
+
+		const items = component.get( 'items' );
+		items[2].description = 'five';
+
+		component.set({ items });
+		assert.equal( inputs[2].value, 'five' );
+		assert.equal( target.innerHTML, `<div><input><p>one</p></div><div><input><p>four</p></div><div><input><p>five</p></div><!--#each items-->` );
+	}
+};
diff --git a/test/compiler/binding-input-text-deep/main.svelte b/test/compiler/binding-input-text-deep/main.svelte
new file mode 100644
index 0000000000..210e4e4fea
--- /dev/null
+++ b/test/compiler/binding-input-text-deep/main.svelte
@@ -0,0 +1,3 @@
+{{#each items as item}}
+	<div><input bind:value='item.description'><p>{{item.description}}</p></div>
+{{/each}}