diff --git a/src/accordion/accordion.js b/src/accordion/accordion.js
index 586314c9c6..eaa5d4b279 100644
--- a/src/accordion/accordion.js
+++ b/src/accordion/accordion.js
@@ -58,7 +58,7 @@ angular.module('ui.bootstrap.accordion', ['ui.bootstrap.collapse'])
   return {
     require: '^uibAccordion',         // We need this directive to be inside an accordion
     transclude: true,              // It transcludes the contents of the directive into the template
-    replace: true,                // The element containing the directive will be replaced with the template
+    restrict: 'A',
     templateUrl: function(element, attrs) {
       return attrs.templateUrl || 'uib/template/accordion/accordion-group.html';
     },
@@ -74,6 +74,7 @@ angular.module('ui.bootstrap.accordion', ['ui.bootstrap.collapse'])
       };
     },
     link: function(scope, element, attrs, accordionCtrl) {
+      element.addClass('panel');
       accordionCtrl.addGroup(scope);
 
       scope.openClass = attrs.openClass || 'panel-open';
diff --git a/src/accordion/docs/demo.html b/src/accordion/docs/demo.html
index 83f643fff7..2b119b3e5e 100644
--- a/src/accordion/docs/demo.html
+++ b/src/accordion/docs/demo.html
@@ -1,18 +1,16 @@
 <div ng-controller="AccordionDemoCtrl">
   <script type="text/ng-template" id="group-template.html">
-    <div class="panel {{panelClass || 'panel-default'}}">
-      <div class="panel-heading">
-        <h4 class="panel-title" style="color:#fa39c3">
-          <a href tabindex="0" class="accordion-toggle" ng-click="toggleOpen()" uib-accordion-transclude="heading">
-            <span uib-accordion-header ng-class="{'text-muted': isDisabled}">
-              {{heading}}
-            </span>
-          </a>
-        </h4>
-      </div>
-      <div class="panel-collapse collapse" uib-collapse="!isOpen">
-        <div class="panel-body" style="text-align: right" ng-transclude></div>
-      </div>
+    <div class="panel-heading">
+      <h4 class="panel-title" style="color:#fa39c3">
+        <a href tabindex="0" class="accordion-toggle" ng-click="toggleOpen()" uib-accordion-transclude="heading">
+          <span uib-accordion-header ng-class="{'text-muted': isDisabled}">
+            {{heading}}
+          </span>
+        </a>
+      </h4>
+    </div>
+    <div class="panel-collapse collapse" uib-collapse="!isOpen">
+      <div class="panel-body" style="text-align: right" ng-transclude></div>
     </div>
   </script>
 
@@ -28,35 +26,35 @@ <h4 class="panel-title" style="color:#fa39c3">
     </label>
   </div>
   <uib-accordion close-others="oneAtATime">
-    <uib-accordion-group heading="Static Header, initially expanded" is-open="status.isFirstOpen" is-disabled="status.isFirstDisabled">
+    <div uib-accordion-group class="panel-default" heading="Static Header, initially expanded" is-open="status.isFirstOpen" is-disabled="status.isFirstDisabled">
       This content is straight in the template.
-    </uib-accordion-group>
-    <uib-accordion-group heading="{{group.title}}" ng-repeat="group in groups">
+    </div>
+    <div uib-accordion-group class="panel-default" heading="{{group.title}}" ng-repeat="group in groups">
       {{group.content}}
-    </uib-accordion-group>
-    <uib-accordion-group heading="Dynamic Body Content">
+    </div>
+    <div uib-accordion-group class="panel-default" heading="Dynamic Body Content">
       <p>The body of the uib-accordion group grows to fit the contents</p>
       <button type="button" class="btn btn-default btn-sm" ng-click="addItem()">Add Item</button>
       <div ng-repeat="item in items">{{item}}</div>
-    </uib-accordion-group>
-    <uib-accordion-group heading="Custom template" template-url="group-template.html">
+    </div>
+    <div uib-accordion-group class="panel-default" heading="Custom template" template-url="group-template.html">
       Hello
-    </uib-accordion-group>
-    <uib-accordion-group is-open="status.isCustomHeaderOpen" template-url="group-template.html">
+    </div>
+    <div uib-accordion-group class="panel-default" is-open="status.isCustomHeaderOpen" template-url="group-template.html">
       <uib-accordion-heading>
         Custom template with custom header template <i class="pull-right glyphicon" ng-class="{'glyphicon-chevron-down': status.isCustomHeaderOpen, 'glyphicon-chevron-right': !status.isCustomHeaderOpen}"></i>
       </uib-accordion-heading>
       World
-    </uib-accordion-group>
-    <uib-accordion-group heading="Delete account" panel-class="panel-danger">
+    </div>
+    <div uib-accordion-group class="panel-danger" heading="Delete account">
       <p>Please, to delete your account, click the button below</p>
       <button class="btn btn-danger">Delete</button>
-    </uib-accordion-group>
-    <uib-accordion-group is-open="status.open">
+    </div>
+    <div uib-accordion-group class="panel-default" is-open="status.open">
       <uib-accordion-heading>
         I can have markup, too! <i class="pull-right glyphicon" ng-class="{'glyphicon-chevron-down': status.open, 'glyphicon-chevron-right': !status.open}"></i>
       </uib-accordion-heading>
       This is just some content to illustrate fancy headings.
-    </uib-accordion-group>
+    </div>
   </uib-accordion>
 </div>
diff --git a/src/accordion/docs/readme.md b/src/accordion/docs/readme.md
index a20a951d6e..25f790c3fa 100644
--- a/src/accordion/docs/readme.md
+++ b/src/accordion/docs/readme.md
@@ -32,11 +32,6 @@ The body of each accordion group is transcluded into the body of the collapsible
   _(Default: `false`)_ -
   Whether accordion group is open or closed.
 
-* `panel-class`
-  <i class="glyphicon glyphicon-eye-open"></i>
-  _(Default: `panel-default`)_ -
-  Add ability to use Bootstrap's contextual panel classes (panel-primary, panel-success, panel-info, etc...) or your own.  This must be a string.
-
 * `template-url`
   _(Default: `uib/template/accordion/accordion-group.html`)_ -
   Add the ability to override the template used on the component.
diff --git a/src/accordion/test/accordion.spec.js b/src/accordion/test/accordion.spec.js
index 2cae4bd4da..1879d6f9c4 100644
--- a/src/accordion/test/accordion.spec.js
+++ b/src/accordion/test/accordion.spec.js
@@ -176,12 +176,12 @@ describe('uib-accordion', function() {
 
       var tpl =
         '<uib-accordion>' +
-          '<uib-accordion-group heading="title 1" template-url="foo/bar.html"></uib-accordion-group>' +
+          '<div uib-accordion-group heading="title 1" template-url="foo/bar.html"></div>' +
         '</uib-accordion>';
 
       element = $compile(tpl)(scope);
       scope.$digest();
-      expect(element.find('[template-url]').html()).toBe('baz');
+      expect(element.find('[template-url]').html()).toBe('<div>baz</div>');
     }));
 
     describe('with static panels', function() {
@@ -189,8 +189,8 @@ describe('uib-accordion', function() {
         spyOn(Math, 'random').and.returnValue(0.1);
         var tpl =
           '<uib-accordion>' +
-            '<uib-accordion-group heading="title 1">Content 1</uib-accordion-group>' +
-            '<uib-accordion-group heading="title 2">Content 2</uib-accordion-group>' +
+            '<div uib-accordion-group heading="title 1">Content 1</div>' +
+            '<div uib-accordion-group heading="title 2">Content 2</div>' +
           '</uib-accordion>';
         element = angular.element(tpl);
         $compile(element)(scope);
@@ -288,8 +288,8 @@ describe('uib-accordion', function() {
       beforeEach(function() {
         var tpl =
           '<uib-accordion>' +
-            '<uib-accordion-group heading="title 1" open-class="custom-open-class">Content 1</uib-accordion-group>' +
-            '<uib-accordion-group heading="title 2" open-class="custom-open-class">Content 2</uib-accordion-group>' +
+            '<div uib-accordion-group heading="title 1" open-class="custom-open-class">Content 1</div>' +
+            '<div uib-accordion-group heading="title 2" open-class="custom-open-class">Content 2</div>' +
           '</uib-accordion>';
         element = angular.element(tpl);
         $compile(element)(scope);
@@ -318,7 +318,7 @@ describe('uib-accordion', function() {
       beforeEach(function() {
         var tpl =
           '<uib-accordion>' +
-            '<uib-accordion-group ng-repeat="group in groups" heading="{{group.name}}">{{group.content}}</uib-accordion-group>' +
+            '<div uib-accordion-group ng-repeat="group in groups" heading="{{group.name}}">{{group.content}}</div>' +
           '</uib-accordion>';
         element = angular.element(tpl);
         model = [
@@ -363,8 +363,8 @@ describe('uib-accordion', function() {
       beforeEach(function() {
         var tpl =
           '<uib-accordion>' +
-            '<uib-accordion-group heading="title 1" is-open="open.first">Content 1</uib-accordion-group>' +
-            '<uib-accordion-group heading="title 2" is-open="open.second">Content 2</uib-accordion-group>' +
+            '<div uib-accordion-group heading="title 1" is-open="open.first">Content 1</div>' +
+            '<div uib-accordion-group heading="title 2" is-open="open.second">Content 2</div>' +
           '</uib-accordion>';
         element = angular.element(tpl);
         scope.open = { first: false, second: true };
@@ -393,8 +393,8 @@ describe('uib-accordion', function() {
       beforeEach(function() {
         var tpl =
           '<uib-accordion>' +
-            '<uib-accordion-group heading="title 1" is-open="open1"><div ng-repeat="item in items">{{item}}</div></uib-accordion-group>' +
-            '<uib-accordion-group heading="title 2" is-open="open2">Static content</uib-accordion-group>' +
+            '<div uib-accordion-group heading="title 1" is-open="open1"><div ng-repeat="item in items">{{item}}</div></div>' +
+            '<div uib-accordion-group heading="title 2" is-open="open2">Static content</div>' +
           '</uib-accordion>';
         element = angular.element(tpl);
         scope.items = ['Item 1', 'Item 2', 'Item 3'];
@@ -421,7 +421,7 @@ describe('uib-accordion', function() {
       beforeEach(function() {
         var tpl =
           '<uib-accordion>' +
-            '<uib-accordion-group ng-repeat="group in groups" heading="{{group.name}}" is-open="group.open">{{group.content}}</uib-accordion-group>' +
+            '<div uib-accordion-group ng-repeat="group in groups" heading="{{group.name}}" is-open="group.open">{{group.content}}</div>' +
           '</uib-accordion>';
         element = angular.element(tpl);
         scope.groups = [
@@ -456,7 +456,7 @@ describe('uib-accordion', function() {
       beforeEach(function() {
         var tpl =
           '<uib-accordion>' +
-            '<uib-accordion-group ng-repeat="group in groups" heading="{{group.name}}" is-open="group.open" class="testClass">{{group.content}}</uib-accordion-group>' +
+            '<div uib-accordion-group ng-repeat="group in groups" heading="{{group.name}}" is-open="group.open" class="testClass">{{group.content}}</div>' +
           '</uib-accordion>';
         element = angular.element(tpl);
         scope.groups = [
@@ -480,7 +480,7 @@ describe('uib-accordion', function() {
       beforeEach(function() {
         var tpl =
           '<uib-accordion>' +
-            '<uib-accordion-group heading="title 1" is-disabled="disabled">Content 1</uib-accordion-group>' +
+            '<div uib-accordion-group heading="title 1" is-disabled="disabled">Content 1</div>' +
           '</uib-accordion>';
         element = angular.element(tpl);
         scope.disabled = true;
@@ -519,10 +519,10 @@ describe('uib-accordion', function() {
     function isDisabledStyleCheck() {
       var tpl =
         '<uib-accordion ng-init="a = [1,2,3]">' +
-          '<uib-accordion-group heading="I get overridden" is-disabled="true">' +
+          '<div uib-accordion-group heading="I get overridden" is-disabled="true">' +
             '<uib-accordion-heading>Heading Element <span ng-repeat="x in a">{{x}}</span> </uib-accordion-heading>' +
             'Body' +
-          '</uib-accordion-group>' +
+          '</div>' +
         '</uib-accordion>';
       scope.disabled = true;
       element = $compile(tpl)(scope);
@@ -536,10 +536,10 @@ describe('uib-accordion', function() {
       beforeEach(function() {
         var tpl =
           '<uib-accordion ng-init="a = [1,2,3]">' +
-            '<uib-accordion-group heading="I get overridden">' +
+            '<div uib-accordion-group heading="I get overridden">' +
               '<uib-accordion-heading>Heading Element <span ng-repeat="x in a">{{x}}</span> </uib-accordion-heading>' +
               'Body' +
-            '</uib-accordion-group>' +
+            '</div>' +
           '</uib-accordion>';
         element = $compile(tpl)(scope);
         scope.$digest();
@@ -565,10 +565,10 @@ describe('uib-accordion', function() {
       beforeEach(function() {
         var tpl =
           '<uib-accordion ng-init="a = [1,2,3]">' +
-            '<uib-accordion-group heading="I get overridden">' +
+            '<div uib-accordion-group heading="I get overridden">' +
               '<div uib-accordion-heading>Heading Element <span ng-repeat="x in a">{{x}}</span> </div>' +
               'Body' +
-            '</uib-accordion-group>' +
+            '</div>' +
           '</uib-accordion>';
         element = $compile(tpl)(scope);
         scope.$digest();
@@ -588,7 +588,7 @@ describe('uib-accordion', function() {
 
     describe('uib-accordion-heading, with repeating uib-accordion-groups', function() {
       it('should clone the uib-accordion-heading for each group', function() {
-        element = $compile('<uib-accordion><uib-accordion-group ng-repeat="x in [1,2,3]"><uib-accordion-heading>{{x}}</uib-accordion-heading></uib-accordion-group></uib-accordion>')(scope);
+        element = $compile('<uib-accordion><div uib-accordion-group ng-repeat="x in [1,2,3]"><uib-accordion-heading>{{x}}</uib-accordion-heading></div></uib-accordion>')(scope);
         scope.$digest();
         groups = element.find('.panel');
         expect(groups.length).toBe(3);
@@ -600,7 +600,7 @@ describe('uib-accordion', function() {
 
     describe('uib-accordion-heading attribute, with repeating uib-accordion-groups', function() {
       it('should clone the uib-accordion-heading for each group', function() {
-        element = $compile('<uib-accordion><uib-accordion-group ng-repeat="x in [1,2,3]"><div uib-accordion-heading>{{x}}</div></uib-accordion-group></uib-accordion>')(scope);
+        element = $compile('<uib-accordion><div uib-accordion-group ng-repeat="x in [1,2,3]"><div uib-accordion-heading>{{x}}</div></div></uib-accordion>')(scope);
         scope.$digest();
         groups = element.find('.panel');
         expect(groups.length).toBe(3);
@@ -614,46 +614,11 @@ describe('uib-accordion', function() {
         it('should transclude heading to a template using data-uib-accordion-header', inject(function($templateCache) {
           $templateCache.put('foo/bar.html', '<div class="panel"><a uib-accordion-transclude="heading" class="accordion-toggle"><span data-uib-accordion-header></span></a><div ng-transclude></div></div>');
 
-          element = $compile('<uib-accordion><uib-accordion-group  template-url="foo/bar.html"><uib-accordion-heading>baz</uib-accordion-heading></uib-accordion-group></uib-accordion>')(scope);
+          element = $compile('<uib-accordion><div uib-accordion-group  template-url="foo/bar.html"><uib-accordion-heading>baz</uib-accordion-heading></div></uib-accordion>')(scope);
           scope.$digest();
           groups = element.find('.panel');
           expect(findGroupLink(0).text()).toBe('baz');
       }));
     });
-
-    describe('uib-accordion group panel class', function() {
-      it('should use the default value when panel class is falsy - #3968', function() {
-        element = $compile('<uib-accordion><uib-accordion-group heading="Heading">Content</uib-accordion-group></uib-accordion>')(scope);
-        scope.$digest();
-        groups = element.find('.panel');
-        expect(groups.eq(0)).toHaveClass('panel-default');
-
-        element = $compile('<uib-accordion><uib-accordion-group heading="Heading" panel-class="">Content</uib-accordion-group></uib-accordion>')(scope);
-        scope.$digest();
-        groups = element.find('.panel');
-        expect(groups.eq(0)).toHaveClass('panel-default');
-      });
-
-      it('should use the specified value when not falsy - #3968', function() {
-        element = $compile('<uib-accordion><uib-accordion-group heading="Heading" panel-class="custom-class">Content</uib-accordion-group></uib-accordion>')(scope);
-        scope.$digest();
-        groups = element.find('.panel');
-        expect(groups.eq(0)).toHaveClass('custom-class');
-        expect(groups.eq(0)).not.toHaveClass('panel-default');
-      });
-
-      it('should change class if panel-class is changed', function() {
-        element = $compile('<uib-accordion><uib-accordion-group heading="Heading" panel-class="{{panelClass}}">Content</uib-accordion-group></uib-accordion>')(scope);
-        scope.panelClass = 'custom-class';
-        scope.$digest();
-        groups = element.find('.panel');
-        expect(groups.eq(0)).toHaveClass('custom-class');
-
-        scope.panelClass = 'different-class';
-        scope.$digest();
-        expect(groups.eq(0)).toHaveClass('different-class');
-        expect(groups.eq(0)).not.toHaveClass('custom-class');
-      });
-    });
   });
 });
diff --git a/template/accordion/accordion-group.html b/template/accordion/accordion-group.html
index 728c674c1c..8375bd26b1 100644
--- a/template/accordion/accordion-group.html
+++ b/template/accordion/accordion-group.html
@@ -1,10 +1,8 @@
-<div class="panel" ng-class="panelClass || 'panel-default'">
-  <div role="tab" id="{{::headingId}}" aria-selected="{{isOpen}}" class="panel-heading" ng-keypress="toggleOpen($event)">
-    <h4 class="panel-title">
-      <a role="button" data-toggle="collapse" href aria-expanded="{{isOpen}}" aria-controls="{{::panelId}}" tabindex="0" class="accordion-toggle" ng-click="toggleOpen()" uib-accordion-transclude="heading"><span uib-accordion-header ng-class="{'text-muted': isDisabled}">{{heading}}</span></a>
-    </h4>
-  </div>
-  <div id="{{::panelId}}" aria-labelledby="{{::headingId}}" aria-hidden="{{!isOpen}}" role="tabpanel" class="panel-collapse collapse" uib-collapse="!isOpen">
-    <div class="panel-body" ng-transclude></div>
-  </div>
+<div role="tab" id="{{::headingId}}" aria-selected="{{isOpen}}" class="panel-heading" ng-keypress="toggleOpen($event)">
+  <h4 class="panel-title">
+    <a role="button" data-toggle="collapse" href aria-expanded="{{isOpen}}" aria-controls="{{::panelId}}" tabindex="0" class="accordion-toggle" ng-click="toggleOpen()" uib-accordion-transclude="heading"><span uib-accordion-header ng-class="{'text-muted': isDisabled}">{{heading}}</span></a>
+  </h4>
+</div>
+<div id="{{::panelId}}" aria-labelledby="{{::headingId}}" aria-hidden="{{!isOpen}}" role="tabpanel" class="panel-collapse collapse" uib-collapse="!isOpen">
+  <div class="panel-body" ng-transclude></div>
 </div>