diff --git a/src/modal/docs/readme.md b/src/modal/docs/readme.md
index 1100c95611..1a0be3f066 100644
--- a/src/modal/docs/readme.md
+++ b/src/modal/docs/readme.md
@@ -8,7 +8,7 @@ The `$modal` service has only one method: `open(options)` where available option
 * `scope` - a scope instance to be used for the modal's content (actually the `$modal` service is going to create a child scope of a provided scope). Defaults to `$rootScope`
 * `controller` - a controller for a modal instance - it can initialize scope used by modal. Accepts the "controller-as" syntax in the form 'SomeCtrl as myctrl'; can be injected with `$modalInstance`
 * `controllerAs` - an alternative to the controller-as syntax, matching the API of directive definitions. Requires the `controller` option to be provided as well
-* `bindToController` - when used with `controllerAs` & set to `true`, it will bind the controller properties onto the `$scope` directly
+* `bindToController` - when used with `controllerAs` & set to `true`, it will bind the $scope properties onto the controller directly
 * `resolve` - members that will be resolved and passed to the controller as locals; it is equivalent of the `resolve` property for AngularJS routes
 * `animation` - set to false to disable animations on new modal/backdrop. Does not toggle animations for modals/backdrops that are already displayed.
 * `backdrop` - controls presence of a backdrop. Allowed values: true (default), false (no backdrop), `'static'` - backdrop is present but modal window is not closed when clicking outside of the modal window.
diff --git a/src/modal/modal.js b/src/modal/modal.js
index 0c0405f0d7..eadc44e777 100644
--- a/src/modal/modal.js
+++ b/src/modal/modal.js
@@ -538,10 +538,10 @@ angular.module('ui.bootstrap.modal', [])
                 ctrlInstance = $controller(modalOptions.controller, ctrlLocals);
                 if (modalOptions.controllerAs) {
                   if (modalOptions.bindToController) {
-                    angular.extend(modalScope, ctrlInstance);
-                  } else {
-                    modalScope[modalOptions.controllerAs] = ctrlInstance;
+                    angular.extend(ctrlInstance, modalScope);
                   }
+
+                  modalScope[modalOptions.controllerAs] = ctrlInstance;
                 }
               }
 
diff --git a/src/modal/test/modal.spec.js b/src/modal/test/modal.spec.js
index 15459a820d..f70ae6ee00 100644
--- a/src/modal/test/modal.spec.js
+++ b/src/modal/test/modal.spec.js
@@ -480,7 +480,7 @@ describe('$modal', function () {
       });
 
       it('should allow usage of bindToController', function () {
-        open({template: '<div>{{fromCtrl}} {{isModalInstance}}</div>', controller: function($modalInstance) {
+        open({template: '<div>{{test.fromCtrl}} {{test.isModalInstance}}</div>', controller: function($modalInstance) {
           this.fromCtrl = 'Content from ctrl';
           this.isModalInstance = angular.isObject($modalInstance) && angular.isFunction($modalInstance.close);
         }, controllerAs: 'test', bindToController: true});