diff --git a/src/compile/nodes/Element.ts b/src/compile/nodes/Element.ts
index af2f8ec919..552e30f614 100644
--- a/src/compile/nodes/Element.ts
+++ b/src/compile/nodes/Element.ts
@@ -637,16 +637,6 @@ export default class Element extends Node {
 		return this.name === 'audio' || this.name === 'video';
 	}
 
-	remount(name: string) {
-		const slot = this.attributes.find(attribute => attribute.name === 'slot');
-		if (slot) {
-			const prop = quotePropIfNecessary(slot.chunks[0].data);
-			return `@append(${name}.$$.slotted${prop}, ${this.var});`;
-		}
-
-		return `@append(${name}.$$.slotted.default, ${this.var});`;
-	}
-
 	addCssClass(className = this.component.stylesheet.id) {
 		const classAttribute = this.attributes.find(a => a.name === 'class');
 		if (classAttribute && !classAttribute.isTrue) {
diff --git a/src/compile/nodes/shared/Node.ts b/src/compile/nodes/shared/Node.ts
index 893d4e25a5..5d8435965c 100644
--- a/src/compile/nodes/shared/Node.ts
+++ b/src/compile/nodes/shared/Node.ts
@@ -48,10 +48,6 @@ export default class Node {
 		if (this.parent) return this.parent.findNearest(selector);
 	}
 
-	remount(name: string) {
-		return `${this.var}.m(${name}.$$.slotted.default, null);`;
-	}
-
 	warnIfEmptyBlock() {
 		if (!this.component.options.dev) return;
 		if (!/Block$/.test(this.type) || !this.children) return;
diff --git a/src/compile/render-dom/Block.ts b/src/compile/render-dom/Block.ts
index 6d23fe9acb..299ba637c5 100644
--- a/src/compile/render-dom/Block.ts
+++ b/src/compile/render-dom/Block.ts
@@ -61,7 +61,7 @@ export default class Block {
 	variables: Map<string, string>;
 	getUniqueName: (name: string) => string;
 
-	hasUpdateMethod: boolean;
+	hasUpdateMethod = false;
 	autofocus: string;
 
 	constructor(options: BlockOptions) {
@@ -106,8 +106,6 @@ export default class Block {
 
 		this.aliases = new Map().set('ctx', this.getUniqueName('ctx'));
 		if (this.key) this.aliases.set('key', this.getUniqueName('key'));
-
-		this.hasUpdateMethod = false; // determined later
 	}
 
 	assignVariableNames() {
@@ -151,6 +149,8 @@ export default class Block {
 		dependencies.forEach(dependency => {
 			this.dependencies.add(dependency);
 		});
+
+		this.hasUpdateMethod = true;
 	}
 
 	addElement(
@@ -407,7 +407,7 @@ export default class Block {
 
 		return deindent`
 			${this.comment && `// ${this.comment}`}
-			function ${this.name}($$, ${this.key ? `${localKey}, ` : ''}ctx) {
+			function ${this.name}(${this.key ? `${localKey}, ` : ''}ctx) {
 				${this.getContents(localKey)}
 			}
 		`;
diff --git a/src/compile/render-dom/index.ts b/src/compile/render-dom/index.ts
index fc35e4f317..da6573e456 100644
--- a/src/compile/render-dom/index.ts
+++ b/src/compile/render-dom/index.ts
@@ -10,6 +10,7 @@ import addToSet from '../../utils/addToSet';
 import getObject from '../../utils/getObject';
 import { extractNames } from '../../utils/annotateWithScopes';
 import { nodes_match } from '../../utils/nodes_match';
+import sanitize from '../../utils/sanitize';
 
 export default function dom(
 	component: Component,
@@ -71,7 +72,7 @@ export default function dom(
 
 	const props = component.props.filter(x => component.writable_declarations.has(x.name));
 
-	const set = component.meta.props || props.length > 0
+	const set = (component.meta.props || props.length > 0 || renderer.slots.size > 0)
 		? deindent`
 			$$props => {
 				${component.meta.props && deindent`
@@ -81,6 +82,8 @@ export default function dom(
 				`}
 				${props.map(prop =>
 				`if ('${prop.as}' in $$props) $$invalidate('${prop.name}', ${prop.name} = $$props.${prop.as});`)}
+				${renderer.slots.size > 0 &&
+				`if ('$$scope' in $$props) $$invalidate('$$scope', $$scope = $$props.$$scope);`}
 			}
 		`
 		: null;
@@ -235,10 +238,12 @@ export default function dom(
 	}
 
 	const args = ['$$self'];
-	if (component.props.length > 0 || component.has_reactive_assignments) args.push('$$props', '$$invalidate');
+	if (component.props.length > 0 || component.has_reactive_assignments || renderer.slots.size > 0) {
+		args.push('$$props', '$$invalidate');
+	}
 
 	builder.addBlock(deindent`
-		function create_fragment($$, ctx) {
+		function create_fragment(ctx) {
 			${block.getContents()}
 		}
 
@@ -264,6 +269,11 @@ export default function dom(
 	const reactive_stores = Array.from(component.template_references).filter(n => n[0] === '$');
 	filtered_declarations.push(...reactive_stores);
 
+	if (renderer.slots.size > 0) {
+		const arr = Array.from(renderer.slots);
+		filtered_declarations.push(...arr.map(name => `$$slot_${sanitize(name)}`), '$$scope');
+	}
+
 	const has_definition = (
 		component.javascript ||
 		filtered_props.length > 0 ||
@@ -301,6 +311,8 @@ export default function dom(
 			function ${definition}(${args.join(', ')}) {
 				${user_code}
 
+				${renderer.slots.size && `let { ${[...renderer.slots].map(name => `$$slot_${sanitize(name)}`).join(', ')}, $$scope } = $$props;`}
+
 				${component.partly_hoisted.length > 0 && component.partly_hoisted.join('\n\n')}
 
 				${reactive_store_subscriptions}
diff --git a/src/compile/render-dom/wrappers/AwaitBlock.ts b/src/compile/render-dom/wrappers/AwaitBlock.ts
index c8ce02ab20..a5926fa8d7 100644
--- a/src/compile/render-dom/wrappers/AwaitBlock.ts
+++ b/src/compile/render-dom/wrappers/AwaitBlock.ts
@@ -135,7 +135,6 @@ export default class AwaitBlockWrapper extends Wrapper {
 		block.maintainContext = true;
 
 		const infoProps = [
-			'$$',
 			'ctx',
 			'current: null',
 			this.pending.block.name && `pending: ${this.pending.block.name}`,
diff --git a/src/compile/render-dom/wrappers/EachBlock.ts b/src/compile/render-dom/wrappers/EachBlock.ts
index c713ea5f19..490b0929a1 100644
--- a/src/compile/render-dom/wrappers/EachBlock.ts
+++ b/src/compile/render-dom/wrappers/EachBlock.ts
@@ -41,10 +41,6 @@ class ElseBlockWrapper extends Wrapper {
 		);
 
 		this.isDynamic = this.block.dependencies.size > 0;
-		if (this.isDynamic) {
-			// TODO this can't be right
-			this.block.hasUpdateMethod = true;
-		}
 	}
 }
 
@@ -149,7 +145,6 @@ export default class EachBlockWrapper extends Wrapper {
 		}
 
 		block.addDependencies(this.block.dependencies);
-		this.block.hasUpdateMethod = this.block.dependencies.size > 0; // TODO should this logic be in Block?
 
 		if (this.block.hasOutros || (this.else && this.else.block.hasOutros)) {
 			block.addOutro();
@@ -216,7 +211,7 @@ export default class EachBlockWrapper extends Wrapper {
 			// TODO neaten this up... will end up with an empty line in the block
 			block.builders.init.addBlock(deindent`
 				if (!${this.vars.each_block_value}.${this.vars.length}) {
-					${each_block_else} = ${this.else.block.name}($$, ctx);
+					${each_block_else} = ${this.else.block.name}(ctx);
 					${each_block_else}.c();
 				}
 			`);
@@ -234,7 +229,7 @@ export default class EachBlockWrapper extends Wrapper {
 					if (!${this.vars.each_block_value}.${this.vars.length} && ${each_block_else}) {
 						${each_block_else}.p(changed, ctx);
 					} else if (!${this.vars.each_block_value}.${this.vars.length}) {
-						${each_block_else} = ${this.else.block.name}($$, ctx);
+						${each_block_else} = ${this.else.block.name}(ctx);
 						${each_block_else}.c();
 						${each_block_else}.m(${initialMountNode}, ${this.vars.anchor});
 					} else if (${each_block_else}) {
@@ -250,7 +245,7 @@ export default class EachBlockWrapper extends Wrapper {
 							${each_block_else} = null;
 						}
 					} else if (!${each_block_else}) {
-						${each_block_else} = ${this.else.block.name}($$, ctx);
+						${each_block_else} = ${this.else.block.name}(ctx);
 						${each_block_else}.c();
 						${each_block_else}.m(${initialMountNode}, ${this.vars.anchor});
 					}
@@ -306,7 +301,7 @@ export default class EachBlockWrapper extends Wrapper {
 			for (var #i = 0; #i < ${this.vars.each_block_value}.${length}; #i += 1) {
 				let child_ctx = ${this.vars.get_each_context}(ctx, ${this.vars.each_block_value}, #i);
 				let key = ${get_key}(child_ctx);
-				${iterations}[#i] = ${lookup}[key] = ${create_each_block}($$, key, child_ctx);
+				${iterations}[#i] = ${lookup}[key] = ${create_each_block}(key, child_ctx);
 			}
 		`);
 
@@ -342,7 +337,7 @@ export default class EachBlockWrapper extends Wrapper {
 
 			${this.block.hasOutros && `@group_outros();`}
 			${this.node.hasAnimation && `for (let #i = 0; #i < ${iterations}.length; #i += 1) ${iterations}[#i].r();`}
-			${iterations} = @updateKeyedEach(${iterations}, $$, changed, ${get_key}, ${dynamic ? '1' : '0'}, ctx, ${this.vars.each_block_value}, ${lookup}, ${updateMountNode}, ${destroy}, ${create_each_block}, ${anchor}, ${this.vars.get_each_context});
+			${iterations} = @updateKeyedEach(${iterations}, changed, ${get_key}, ${dynamic ? '1' : '0'}, ctx, ${this.vars.each_block_value}, ${lookup}, ${updateMountNode}, ${destroy}, ${create_each_block}, ${anchor}, ${this.vars.get_each_context});
 			${this.node.hasAnimation && `for (let #i = 0; #i < ${iterations}.length; #i += 1) ${iterations}[#i].a();`}
 			${this.block.hasOutros && `@check_outros();`}
 		`);
@@ -375,7 +370,7 @@ export default class EachBlockWrapper extends Wrapper {
 			var ${iterations} = [];
 
 			for (var #i = 0; #i < ${this.vars.each_block_value}.${length}; #i += 1) {
-				${iterations}[#i] = ${create_each_block}($$, ${this.vars.get_each_context}(ctx, ${this.vars.each_block_value}, #i));
+				${iterations}[#i] = ${create_each_block}(${this.vars.get_each_context}(ctx, ${this.vars.each_block_value}, #i));
 			}
 		`);
 
@@ -439,14 +434,14 @@ export default class EachBlockWrapper extends Wrapper {
 					if (${iterations}[#i]) {
 						${iterations}[#i].p(changed, child_ctx);
 					} else {
-						${iterations}[#i] = ${create_each_block}($$, child_ctx);
+						${iterations}[#i] = ${create_each_block}(child_ctx);
 						${iterations}[#i].c();
 						${iterations}[#i].m(${updateMountNode}, ${anchor});
 					}
 					${has_transitions && `${iterations}[#i].i();`}
 				`
 				: deindent`
-					${iterations}[#i] = ${create_each_block}($$, child_ctx);
+					${iterations}[#i] = ${create_each_block}(child_ctx);
 					${iterations}[#i].c();
 					${iterations}[#i].m(${updateMountNode}, ${anchor});
 					${has_transitions && `${iterations}[#i].i();`}
@@ -499,9 +494,4 @@ export default class EachBlockWrapper extends Wrapper {
 
 		block.builders.destroy.addBlock(`@destroyEach(${iterations}, detach);`);
 	}
-
-	remount(name: string) {
-		// TODO consider keyed blocks
-		return `for (var #i = 0; #i < ${this.vars.iterations}.length; #i += 1) ${this.vars.iterations}[#i].m(${name}.$$.slotted.default, null);`;
-	}
 }
\ No newline at end of file
diff --git a/src/compile/render-dom/wrappers/Element/Binding.ts b/src/compile/render-dom/wrappers/Element/Binding.ts
index 8b34682f8c..a9fa106def 100644
--- a/src/compile/render-dom/wrappers/Element/Binding.ts
+++ b/src/compile/render-dom/wrappers/Element/Binding.ts
@@ -124,11 +124,11 @@ export default class BindingWrapper {
 				const bindingGroup = getBindingGroup(parent.renderer, this.node.expression.node);
 
 				block.builders.hydrate.addLine(
-					`($$.binding_groups[${bindingGroup}] || ($$.binding_groups[${bindingGroup}] = [])).push(${parent.var});`
+					`(ctx.$$binding_groups[${bindingGroup}] || (ctx.$$binding_groups[${bindingGroup}] = [])).push(${parent.var});`
 				);
 
 				block.builders.destroy.addLine(
-					`$$.binding_groups[${bindingGroup}].splice($$.binding_groups[${bindingGroup}].indexOf(${parent.var}), 1);`
+					`ctx.$$binding_groups[${bindingGroup}].splice(ctx.$$binding_groups[${bindingGroup}].indexOf(${parent.var}), 1);`
 				);
 				break;
 
@@ -278,7 +278,7 @@ function getValueFromDom(
 	if (name === 'group') {
 		const bindingGroup = getBindingGroup(renderer, binding.node.expression.node);
 		if (type === 'checkbox') {
-			return `@getBindingGroupValue($$self.$$.binding_groups[${bindingGroup}])`;
+			return `@getBindingGroupValue($$self.ctx.$$binding_groups[${bindingGroup}])`;
 		}
 
 		return `this.__value`;
diff --git a/src/compile/render-dom/wrappers/Element/index.ts b/src/compile/render-dom/wrappers/Element/index.ts
index 7d0288726e..2bd4d7f13d 100644
--- a/src/compile/render-dom/wrappers/Element/index.ts
+++ b/src/compile/render-dom/wrappers/Element/index.ts
@@ -19,6 +19,8 @@ import InlineComponentWrapper from '../InlineComponent';
 import addToSet from '../../../../utils/addToSet';
 import addEventHandlers from '../shared/addEventHandlers';
 import addActions from '../shared/addActions';
+import createDebuggingComment from '../../../../utils/createDebuggingComment';
+import sanitize from '../../../../utils/sanitize';
 
 const events = [
 	{
@@ -91,7 +93,7 @@ export default class ElementWrapper extends Wrapper {
 	bindings: Binding[];
 	classDependencies: string[];
 
-	slotOwner?: InlineComponentWrapper;
+	slot_block: Block;
 	selectBindingDependencies?: Set<string>;
 
 	var: string;
@@ -126,8 +128,17 @@ export default class ElementWrapper extends Wrapper {
 				}
 
 				if (owner && owner.node.type === 'InlineComponent') {
-					this.slotOwner = <InlineComponentWrapper>owner;
-					owner._slots.add(attribute.getStaticValue());
+					const name = attribute.getStaticValue();
+
+					this.slot_block = block.child({
+						comment: createDebuggingComment(node, this.renderer.component),
+						name: this.renderer.component.getUniqueName(`create_${sanitize(name)}_slot`)
+					});
+
+					(<InlineComponentWrapper>owner).slots.set(name, this.slot_block);
+					this.renderer.blocks.push(this.slot_block);
+
+					block = this.slot_block;
 				}
 			}
 			if (attribute.name === 'style') {
@@ -179,6 +190,10 @@ export default class ElementWrapper extends Wrapper {
 		}
 
 		this.fragment = new FragmentWrapper(renderer, block, node.children, this, stripWhitespace, nextSibling);
+
+		if (this.slot_block) {
+			block.parent.addDependencies(block.dependencies);
+		}
 	}
 
 	render(block: Block, parentNode: string, parentNodes: string) {
@@ -194,15 +209,8 @@ export default class ElementWrapper extends Wrapper {
 		const node = this.var;
 		const nodes = parentNodes && block.getUniqueName(`${this.var}_nodes`) // if we're in unclaimable territory, i.e. <head>, parentNodes is null
 
-		const slot = this.node.attributes.find((attribute: Node) => attribute.name === 'slot');
-		const prop = slot && quotePropIfNecessary(slot.chunks[0].data);
-
-		let initialMountNode;
-
-		if (this.slotOwner) {
-			initialMountNode = `${this.slotOwner.var}.$$.slotted${prop}`;
-		} else {
-			initialMountNode = parentNode;
+		if (this.slot_block) {
+			block = this.slot_block;
 		}
 
 		block.addVariable(node);
@@ -224,12 +232,12 @@ export default class ElementWrapper extends Wrapper {
 			}
 		}
 
-		if (initialMountNode) {
+		if (parentNode) {
 			block.builders.mount.addLine(
-				`@append(${initialMountNode}, ${node});`
+				`@append(${parentNode}, ${node});`
 			);
 
-			if (initialMountNode === 'document.head') {
+			if (parentNode === 'document.head') {
 				block.builders.destroy.addLine(`@detachNode(${node});`);
 			}
 		} else {
@@ -755,16 +763,6 @@ export default class ElementWrapper extends Wrapper {
 		return null;
 	}
 
-	remount(name: string) {
-		const slot = this.attributes.find(attribute => attribute.node.name === 'slot');
-		if (slot) {
-			const prop = quotePropIfNecessary(slot.node.chunks[0].data);
-			return `@append(${name}.$$.slotted${prop}, ${this.var});`;
-		}
-
-		return `@append(${name}.$$.slotted.default, ${this.var});`;
-	}
-
 	addCssClass(className = this.component.stylesheet.id) {
 		const classAttribute = this.attributes.find(a => a.name === 'class');
 		if (classAttribute && !classAttribute.isTrue) {
diff --git a/src/compile/render-dom/wrappers/IfBlock.ts b/src/compile/render-dom/wrappers/IfBlock.ts
index ab4c697881..026f668b28 100644
--- a/src/compile/render-dom/wrappers/IfBlock.ts
+++ b/src/compile/render-dom/wrappers/IfBlock.ts
@@ -222,7 +222,7 @@ export default class IfBlockWrapper extends Wrapper {
 
 		block.builders.init.addBlock(deindent`
 			var ${current_block_type} = ${select_block_type}(ctx);
-			var ${name} = ${current_block_type_and}${current_block_type}($$, ctx);
+			var ${name} = ${current_block_type_and}${current_block_type}(ctx);
 		`);
 
 		const initialMountNode = parentNode || '#target';
@@ -235,7 +235,7 @@ export default class IfBlockWrapper extends Wrapper {
 
 		const changeBlock = deindent`
 			${if_name}${name}.d(1);
-			${name} = ${current_block_type_and}${current_block_type}($$, ctx);
+			${name} = ${current_block_type_and}${current_block_type}(ctx);
 			if (${name}) {
 				${name}.c();
 				${name}.m(${updateMountNode}, ${anchor});
@@ -302,12 +302,12 @@ export default class IfBlockWrapper extends Wrapper {
 		if (hasElse) {
 			block.builders.init.addBlock(deindent`
 				${current_block_type_index} = ${select_block_type}(ctx);
-				${name} = ${if_blocks}[${current_block_type_index}] = ${if_block_creators}[${current_block_type_index}]($$, ctx);
+				${name} = ${if_blocks}[${current_block_type_index}] = ${if_block_creators}[${current_block_type_index}](ctx);
 			`);
 		} else {
 			block.builders.init.addBlock(deindent`
 				if (~(${current_block_type_index} = ${select_block_type}(ctx))) {
-					${name} = ${if_blocks}[${current_block_type_index}] = ${if_block_creators}[${current_block_type_index}]($$, ctx);
+					${name} = ${if_blocks}[${current_block_type_index}] = ${if_block_creators}[${current_block_type_index}](ctx);
 				}
 			`);
 		}
@@ -334,7 +334,7 @@ export default class IfBlockWrapper extends Wrapper {
 		const createNewBlock = deindent`
 			${name} = ${if_blocks}[${current_block_type_index}];
 			if (!${name}) {
-				${name} = ${if_blocks}[${current_block_type_index}] = ${if_block_creators}[${current_block_type_index}]($$, ctx);
+				${name} = ${if_blocks}[${current_block_type_index}] = ${if_block_creators}[${current_block_type_index}](ctx);
 				${name}.c();
 			}
 			${name}.m(${updateMountNode}, ${anchor});
@@ -394,7 +394,7 @@ export default class IfBlockWrapper extends Wrapper {
 		const branch = this.branches[0];
 
 		block.builders.init.addBlock(deindent`
-			var ${name} = (${branch.condition}) && ${branch.block.name}($$, ctx);
+			var ${name} = (${branch.condition}) && ${branch.block.name}(ctx);
 		`);
 
 		const initialMountNode = parentNode || '#target';
@@ -411,7 +411,7 @@ export default class IfBlockWrapper extends Wrapper {
 				if (${name}) {
 					${name}.p(changed, ctx);
 				} else {
-					${name} = ${branch.block.name}($$, ctx);
+					${name} = ${branch.block.name}(ctx);
 					${name}.c();
 					${name}.m(${updateMountNode}, ${anchor});
 				}
@@ -419,7 +419,7 @@ export default class IfBlockWrapper extends Wrapper {
 			`
 			: deindent`
 				if (!${name}) {
-					${name} = ${branch.block.name}($$, ctx);
+					${name} = ${branch.block.name}(ctx);
 					${name}.c();
 					${name}.m(${updateMountNode}, ${anchor});
 				}
diff --git a/src/compile/render-dom/wrappers/InlineComponent/index.ts b/src/compile/render-dom/wrappers/InlineComponent/index.ts
index 9669910d06..77b00fb9a8 100644
--- a/src/compile/render-dom/wrappers/InlineComponent/index.ts
+++ b/src/compile/render-dom/wrappers/InlineComponent/index.ts
@@ -10,12 +10,13 @@ import addToSet from '../../../../utils/addToSet';
 import deindent from '../../../../utils/deindent';
 import Attribute from '../../../nodes/Attribute';
 import getObject from '../../../../utils/getObject';
-import Binding from '../../../nodes/Binding';
 import flattenReference from '../../../../utils/flattenReference';
+import createDebuggingComment from '../../../../utils/createDebuggingComment';
+import sanitize from '../../../../utils/sanitize';
 
 export default class InlineComponentWrapper extends Wrapper {
 	var: string;
-	_slots: Set<string>; // TODO lose the underscore
+	slots: Map<string, Block> = new Map();
 	node: InlineComponent;
 	fragment: FragmentWrapper;
 
@@ -65,8 +66,15 @@ export default class InlineComponentWrapper extends Wrapper {
 		).toLowerCase();
 
 		if (this.node.children.length) {
-			this._slots = new Set(['default']);
-			this.fragment = new FragmentWrapper(renderer, block, node.children, this, stripWhitespace, nextSibling);
+			const default_slot = block.child({
+				comment: createDebuggingComment(node, renderer.component),
+				name: renderer.component.getUniqueName(`create_default_slot`)
+			});
+			this.renderer.blocks.push(default_slot);
+			this.slots.set('default', default_slot);
+			this.fragment = new FragmentWrapper(renderer, default_slot, node.children, this, stripWhitespace, nextSibling);
+
+			block.addDependencies(default_slot.dependencies);
 		}
 
 		block.addOutro();
@@ -84,15 +92,6 @@ export default class InlineComponentWrapper extends Wrapper {
 
 		const component_opts = [];
 
-		if (this.fragment) {
-			const slots = Array.from(this._slots).map(name => `${quoteNameIfNecessary(name)}: @createFragment()`);
-			component_opts.push(`slots: { ${slots.join(', ')} }`);
-
-			this.fragment.nodes.forEach((child: Wrapper) => {
-				child.render(block, `${this.var}.$$.slotted.default`, 'nodes');
-			});
-		}
-
 		const statements: string[] = [];
 		const updates: string[] = [];
 		const postupdates: string[] = [];
@@ -102,13 +101,16 @@ export default class InlineComponentWrapper extends Wrapper {
 
 		const usesSpread = !!this.node.attributes.find(a => a.isSpread);
 
+		const slot_props = Array.from(this.slots).map(([name, block]) => `$$slot_${sanitize(name)}: ${block.name}`);
+		if (slot_props.length > 0) slot_props.push(`$$scope: { ctx }`);
+
 		const attributeObject = usesSpread
-			? '{}'
+			? stringifyProps(slot_props)
 			: stringifyProps(
-				this.node.attributes.map(attr => `${quoteNameIfNecessary(attr.name)}: ${attr.getValue()}`)
+				this.node.attributes.map(attr => `${quoteNameIfNecessary(attr.name)}: ${attr.getValue()}`).concat(slot_props)
 			);
 
-		if (this.node.attributes.length || this.node.bindings.length) {
+		if (this.node.attributes.length || this.node.bindings.length || slot_props.length) {
 			if (!usesSpread && this.node.bindings.length === 0) {
 				component_opts.push(`props: ${attributeObject}`);
 			} else {
@@ -117,6 +119,14 @@ export default class InlineComponentWrapper extends Wrapper {
 			}
 		}
 
+		if (this.fragment) {
+			const default_slot = this.slots.get('default');
+
+			this.fragment.nodes.forEach((child: Wrapper) => {
+				child.render(default_slot, null, 'nodes');
+			});
+		}
+
 		if (component.options.dev) {
 			// TODO this is a terrible hack, but without it the component
 			// will complain that options.target is missing. This would
@@ -125,7 +135,16 @@ export default class InlineComponentWrapper extends Wrapper {
 			component_opts.push(`$$inline: true`);
 		}
 
-		if (!usesSpread && (this.node.attributes.filter(a => a.isDynamic).length || this.node.bindings.length)) {
+		const fragment_dependencies = new Set();
+		this.slots.forEach(block => {
+			block.dependencies.forEach(name => {
+				if (renderer.component.mutable_props.has(name)) {
+					fragment_dependencies.add(name);
+				}
+			});
+		});
+
+		if (!usesSpread && (this.node.attributes.filter(a => a.isDynamic).length || this.node.bindings.length || fragment_dependencies.size > 0)) {
 			updates.push(`var ${name_changes} = {};`);
 		}
 
@@ -196,6 +215,10 @@ export default class InlineComponentWrapper extends Wrapper {
 				}
 		}
 
+		if (fragment_dependencies.size > 0) {
+			updates.push(`if (${[...fragment_dependencies].map(n => `changed.${n}`).join(' || ')}) ${name_changes}.$$scope = { changed, ctx };`);
+		}
+
 		const munged_bindings = this.node.bindings.map(binding => {
 			component.has_reactive_assignments = true;
 
@@ -375,7 +398,6 @@ export default class InlineComponentWrapper extends Wrapper {
 						${munged_bindings}
 						${munged_handlers}
 
-						${this.fragment && this.fragment.nodes.map(child => child.remount(name))}
 						${name}.$$.fragment.c();
 						@mount_component(${name}, ${updateMountNode}, ${anchor});
 						${name}.$$.fragment.i();
@@ -448,10 +470,6 @@ export default class InlineComponentWrapper extends Wrapper {
 			`if (${name}) ${name}.$$.fragment.o();`
 		);
 	}
-
-	remount(name: string) {
-		return `${this.var}.$$.fragment.m(${name}.$$.slotted.default, null);`;
-	}
 }
 
 function isComputed(node: Node) {
diff --git a/src/compile/render-dom/wrappers/Slot.ts b/src/compile/render-dom/wrappers/Slot.ts
index 2788fc075b..aa9a3d5b20 100644
--- a/src/compile/render-dom/wrappers/Slot.ts
+++ b/src/compile/render-dom/wrappers/Slot.ts
@@ -41,42 +41,24 @@ export default class SlotWrapper extends Wrapper {
 	) {
 		const { renderer } = this;
 
-		const slotName = this.node.getStaticAttributeValue('name') || 'default';
-		renderer.slots.add(slotName);
+		const slot_name = this.node.getStaticAttributeValue('name') || 'default';
+		renderer.slots.add(slot_name);
 
-		const content_name = block.getUniqueName(`slot_content_${sanitize(slotName)}`);
-		const prop = quotePropIfNecessary(slotName);
-		block.addVariable(content_name, `$$.slotted${prop}`);
+		const slot = block.getUniqueName(`${sanitize(slot_name)}_slot`);
 
-		// TODO can we use isDomNode instead of type === 'Element'?
-		const needsAnchorBefore = this.prev ? this.prev.node.type !== 'Element' : !parentNode;
-		const needsAnchorAfter = this.next ? this.next.node.type !== 'Element' : !parentNode;
-
-		const anchorBefore = needsAnchorBefore
-			? block.getUniqueName(`${content_name}_before`)
-			: (this.prev && this.prev.var) || 'null';
-
-		const anchorAfter = needsAnchorAfter
-			? block.getUniqueName(`${content_name}_after`)
-			: (this.next && this.next.var) || 'null';
-
-		if (needsAnchorBefore) block.addVariable(anchorBefore);
-		if (needsAnchorAfter) block.addVariable(anchorAfter);
+		block.builders.init.addLine(
+			`const ${slot} = ctx.$$slot_${sanitize(slot_name)} && ctx.$$slot_${sanitize(slot_name)}(ctx.$$scope.ctx);`
+		);
 
 		let mountBefore = block.builders.mount.toString();
-		let destroyBefore = block.builders.destroy.toString();
 
-		block.builders.create.pushCondition(`!${content_name}`);
-		block.builders.hydrate.pushCondition(`!${content_name}`);
-		block.builders.mount.pushCondition(`!${content_name}`);
-		block.builders.update.pushCondition(`!${content_name}`);
-		block.builders.destroy.pushCondition(`!${content_name}`);
+		block.builders.create.pushCondition(`!${slot}`);
+		block.builders.hydrate.pushCondition(`!${slot}`);
+		block.builders.mount.pushCondition(`!${slot}`);
+		block.builders.update.pushCondition(`!${slot}`);
+		block.builders.destroy.pushCondition(`!${slot}`);
 
-		const listeners = block.event_listeners;
-		block.event_listeners = [];
 		this.fragment.render(block, parentNode, parentNodes);
-		block.renderListeners(`_${content_name}`);
-		block.event_listeners = listeners;
 
 		block.builders.create.popCondition();
 		block.builders.hydrate.popCondition();
@@ -84,62 +66,26 @@ export default class SlotWrapper extends Wrapper {
 		block.builders.update.popCondition();
 		block.builders.destroy.popCondition();
 
+		block.builders.create.addLine(
+			`if (${slot}) ${slot}.c();`
+		);
+
+		block.builders.claim.addLine(
+			`if (${slot}) ${slot}.l(${parentNodes});`
+		);
+
 		const mountLeadin = block.builders.mount.toString() !== mountBefore
 			? `else`
-			: `if (${content_name})`;
-
-		if (parentNode) {
-			block.builders.mount.addBlock(deindent`
-				${mountLeadin} {
-					${needsAnchorBefore && `@append(${parentNode}, ${anchorBefore} || (${anchorBefore} = @createComment()));`}
-					@append(${parentNode}, ${content_name});
-					${needsAnchorAfter && `@append(${parentNode}, ${anchorAfter} || (${anchorAfter} = @createComment()));`}
-				}
-			`);
-		} else {
-			block.builders.mount.addBlock(deindent`
-				${mountLeadin} {
-					${needsAnchorBefore && `@insert(#target, ${anchorBefore} || (${anchorBefore} = @createComment()), anchor);`}
-					@insert(#target, ${content_name}, anchor);
-					${needsAnchorAfter && `@insert(#target, ${anchorAfter} || (${anchorAfter} = @createComment()), anchor);`}
-				}
-			`);
-		}
-
-		// if the slot is unmounted, move nodes back into the document fragment,
-		// so that it can be reinserted later
-		// TODO so that this can work with public API, component.$$.slotted should
-		// be all fragments, derived from options.slots. Not === options.slots
-		const unmountLeadin = block.builders.destroy.toString() !== destroyBefore
-			? `else`
-			: `if (${content_name})`;
-
-		if (anchorBefore === 'null' && anchorAfter === 'null') {
-			block.builders.destroy.addBlock(deindent`
-				${unmountLeadin} {
-					@reinsertChildren(${parentNode}, ${content_name});
-				}
-			`);
-		} else if (anchorBefore === 'null') {
-			block.builders.destroy.addBlock(deindent`
-				${unmountLeadin} {
-					@reinsertBefore(${anchorAfter}, ${content_name});
-				}
-			`);
-		} else if (anchorAfter === 'null') {
-			block.builders.destroy.addBlock(deindent`
-				${unmountLeadin} {
-					@reinsertAfter(${anchorBefore}, ${content_name});
-				}
-			`);
-		} else {
-			block.builders.destroy.addBlock(deindent`
-				${unmountLeadin} {
-					@reinsertBetween(${anchorBefore}, ${anchorAfter}, ${content_name});
-					@detachNode(${anchorBefore});
-					@detachNode(${anchorAfter});
-				}
-			`);
-		}
+			: `if (${slot})`;
+
+		block.builders.mount.addBlock(deindent`
+			${mountLeadin} {
+				${slot}.m(${parentNode || '#target'}, anchor);
+			}
+		`);
+
+		block.builders.update.addLine(
+			`if (${slot} && changed.$$scope) ${slot}.p(ctx.$$scope.changed, ctx.$$scope.ctx);`
+		);
 	}
 }
\ No newline at end of file
diff --git a/src/compile/render-dom/wrappers/Text.ts b/src/compile/render-dom/wrappers/Text.ts
index fea357f1d5..00028df67c 100644
--- a/src/compile/render-dom/wrappers/Text.ts
+++ b/src/compile/render-dom/wrappers/Text.ts
@@ -60,8 +60,4 @@ export default class TextWrapper extends Wrapper {
 			parentNode
 		);
 	}
-
-	remount(name: string) {
-		return `@append(${name}.$$.slotted.default, ${this.var});`;
-	}
 }
\ No newline at end of file
diff --git a/src/compile/render-dom/wrappers/shared/Tag.ts b/src/compile/render-dom/wrappers/shared/Tag.ts
index d44a53ffde..475c0d8a70 100644
--- a/src/compile/render-dom/wrappers/shared/Tag.ts
+++ b/src/compile/render-dom/wrappers/shared/Tag.ts
@@ -51,8 +51,4 @@ export default class Tag extends Wrapper {
 
 		return { init: content };
 	}
-
-	remount(name: string) {
-		return `@append(${name}.$$.slotted.default, ${this.var});`;
-	}
 }
\ No newline at end of file
diff --git a/src/compile/render-dom/wrappers/shared/Wrapper.ts b/src/compile/render-dom/wrappers/shared/Wrapper.ts
index 3ee2bbbb9f..daa97f36fc 100644
--- a/src/compile/render-dom/wrappers/shared/Wrapper.ts
+++ b/src/compile/render-dom/wrappers/shared/Wrapper.ts
@@ -85,8 +85,4 @@ export default class Wrapper {
 	render(block: Block, parentNode: string, parentNodes: string) {
 		throw new Error(`render method not implemented by subclass ${this.node.type}`);
 	}
-
-	remount(name: string) {
-		return `${this.var}.m(${name}.$$.slotted.default, null);`;
-	}
 }
\ No newline at end of file
diff --git a/src/internal/Component.js b/src/internal/Component.js
index 894f80461b..63350bbd1c 100644
--- a/src/internal/Component.js
+++ b/src/internal/Component.js
@@ -57,9 +57,11 @@ export function init(component, options, instance, create_fragment, not_equal) {
 	const previous_component = current_component;
 	set_current_component(component);
 
+	const props = options.props || {};
+
 	const $$ = component.$$ = {
 		fragment: null,
-		ctx: options.props || {},
+		ctx: null,
 
 		// state
 		set: noop,
@@ -75,15 +77,13 @@ export function init(component, options, instance, create_fragment, not_equal) {
 
 		// everything else
 		callbacks: blankObject(),
-		slotted: options.slots || {},
-		dirty: null,
-		binding_groups: []
+		dirty: null
 	};
 
 	let ready = false;
 
-	if (instance) {
-		$$.ctx = instance(component, $$.ctx, (key, value) => {
+	$$.ctx = instance
+		? instance(component, props, (key, value) => {
 			if ($$.bound[key]) $$.bound[key](value);
 
 			if ($$.ctx) {
@@ -95,13 +95,15 @@ export function init(component, options, instance, create_fragment, not_equal) {
 				$$.ctx[key] = value;
 				return changed;
 			}
-		});
-	}
+		})
+		: props;
+
+	$$.ctx.$$binding_groups = []; // TODO this is awkward and usually unncessary
 
 	$$.update();
 	ready = true;
 	run_all($$.before_render);
-	$$.fragment = create_fragment($$, $$.ctx);
+	$$.fragment = create_fragment($$.ctx);
 
 	if (options.target) {
 		if (options.hydrate) {
diff --git a/src/internal/await-block.js b/src/internal/await-block.js
index 3d8be35edc..0ec254ee4b 100644
--- a/src/internal/await-block.js
+++ b/src/internal/await-block.js
@@ -11,7 +11,7 @@ export function handlePromise(promise, info) {
 		info.resolved = key && { [key]: value };
 
 		const child_ctx = assign(assign({}, info.ctx), info.resolved);
-		const block = type && (info.current = type)(info.$$, child_ctx);
+		const block = type && (info.current = type)(child_ctx);
 
 		if (info.block) {
 			if (info.blocks) {
diff --git a/src/internal/keyed-each.js b/src/internal/keyed-each.js
index ad5eb243d2..76e233f2ed 100644
--- a/src/internal/keyed-each.js
+++ b/src/internal/keyed-each.js
@@ -18,7 +18,7 @@ export function fixAndOutroAndDestroyBlock(block, lookup) {
 	outroAndDestroyBlock(block, lookup);
 }
 
-export function updateKeyedEach(old_blocks, component, changed, get_key, dynamic, ctx, list, lookup, node, destroy, create_each_block, next, get_context) {
+export function updateKeyedEach(old_blocks, changed, get_key, dynamic, ctx, list, lookup, node, destroy, create_each_block, next, get_context) {
 	var o = old_blocks.length;
 	var n = list.length;
 
@@ -37,7 +37,7 @@ export function updateKeyedEach(old_blocks, component, changed, get_key, dynamic
 		var block = lookup[key];
 
 		if (!block) {
-			block = create_each_block(component, key, child_ctx);
+			block = create_each_block(key, child_ctx);
 			block.c();
 		} else if (dynamic) {
 			block.p(changed, child_ctx);
diff --git a/src/utils/createDebuggingComment.ts b/src/utils/createDebuggingComment.ts
index 15b8b12267..37e27aab4a 100644
--- a/src/utils/createDebuggingComment.ts
+++ b/src/utils/createDebuggingComment.ts
@@ -10,12 +10,19 @@ export default function createDebuggingComment(
 	let c = node.start;
 	if (node.type === 'ElseBlock') {
 		while (source[c - 1] !== '{') c -= 1;
-		while (source[c - 1] === '{') c -= 1;
+		// while (source[c - 1] === '{') c -= 1;
 	}
 
-	let d = node.expression ? node.expression.node.end : c;
-	while (source[d] !== '}') d += 1;
-	while (source[d] === '}') d += 1;
+	let d;
+
+	if (node.type === 'InlineComponent' || node.type === 'Element') {
+		d = node.children[0].start;
+		while (source[d - 1] !== '>') d -= 1;
+	} else {
+		d = node.expression ? node.expression.node.end : c;
+		while (source[d] !== '}') d += 1;
+		// while (source[d] === '}') d += 1;
+	}
 
 	const start = locate(c);
 	const loc = `(${start.line + 1}:${start.column})`;