diff --git a/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_bindings/property_bindings/GOLDEN_PARTIAL.js b/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_bindings/property_bindings/GOLDEN_PARTIAL.js
index 1b28823b5ccc..cda5293915f4 100644
--- a/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_bindings/property_bindings/GOLDEN_PARTIAL.js
+++ b/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_bindings/property_bindings/GOLDEN_PARTIAL.js
@@ -721,3 +721,68 @@ export declare class MyComponent {
     static ɵcmp: i0.ɵɵComponentDeclaration<MyComponent, "my-component", never, {}, {}, never, never, true, never>;
 }
 
+/****************************************************************************************************
+ * PARTIAL FILE: mixed_one_way_two_way_property_order.js
+ ****************************************************************************************************/
+import { Component, Directive, Input, Output } from '@angular/core';
+import * as i0 from "@angular/core";
+export class Dir {
+}
+Dir.ɵfac = i0.ɵɵngDeclareFactory({ minVersion: "12.0.0", version: "0.0.0-PLACEHOLDER", ngImport: i0, type: Dir, deps: [], target: i0.ɵɵFactoryTarget.Directive });
+Dir.ɵdir = i0.ɵɵngDeclareDirective({ minVersion: "14.0.0", version: "0.0.0-PLACEHOLDER", type: Dir, isStandalone: true, selector: "[dir]", inputs: { a: "a", b: "b", c: "c", d: "d" }, outputs: { aChange: "aChange", cChange: "cChange" }, ngImport: i0 });
+i0.ɵɵngDeclareClassMetadata({ minVersion: "12.0.0", version: "0.0.0-PLACEHOLDER", ngImport: i0, type: Dir, decorators: [{
+            type: Directive,
+            args: [{ standalone: true, selector: '[dir]' }]
+        }], propDecorators: { a: [{
+                type: Input
+            }], aChange: [{
+                type: Output
+            }], b: [{
+                type: Input
+            }], c: [{
+                type: Input
+            }], cChange: [{
+                type: Output
+            }], d: [{
+                type: Input
+            }] } });
+export class App {
+    constructor() {
+        this.value = 'hi';
+    }
+}
+App.ɵfac = i0.ɵɵngDeclareFactory({ minVersion: "12.0.0", version: "0.0.0-PLACEHOLDER", ngImport: i0, type: App, deps: [], target: i0.ɵɵFactoryTarget.Component });
+App.ɵcmp = i0.ɵɵngDeclareComponent({ minVersion: "14.0.0", version: "0.0.0-PLACEHOLDER", type: App, isStandalone: true, selector: "ng-component", ngImport: i0, template: `
+    <div dir [(a)]="value" [b]="value" [(c)]="value" [d]="value"></div>
+  `, isInline: true, dependencies: [{ kind: "directive", type: Dir, selector: "[dir]", inputs: ["a", "b", "c", "d"], outputs: ["aChange", "cChange"] }] });
+i0.ɵɵngDeclareClassMetadata({ minVersion: "12.0.0", version: "0.0.0-PLACEHOLDER", ngImport: i0, type: App, decorators: [{
+            type: Component,
+            args: [{
+                    standalone: true,
+                    imports: [Dir],
+                    template: `
+    <div dir [(a)]="value" [b]="value" [(c)]="value" [d]="value"></div>
+  `,
+                }]
+        }] });
+
+/****************************************************************************************************
+ * PARTIAL FILE: mixed_one_way_two_way_property_order.d.ts
+ ****************************************************************************************************/
+import * as i0 from "@angular/core";
+export declare class Dir {
+    a: unknown;
+    aChange: unknown;
+    b: unknown;
+    c: unknown;
+    cChange: unknown;
+    d: unknown;
+    static ɵfac: i0.ɵɵFactoryDeclaration<Dir, never>;
+    static ɵdir: i0.ɵɵDirectiveDeclaration<Dir, "[dir]", never, { "a": { "alias": "a"; "required": false; }; "b": { "alias": "b"; "required": false; }; "c": { "alias": "c"; "required": false; }; "d": { "alias": "d"; "required": false; }; }, { "aChange": "aChange"; "cChange": "cChange"; }, never, never, true, never>;
+}
+export declare class App {
+    value: string;
+    static ɵfac: i0.ɵɵFactoryDeclaration<App, never>;
+    static ɵcmp: i0.ɵɵComponentDeclaration<App, "ng-component", never, {}, {}, never, never, true, never>;
+}
+
diff --git a/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_bindings/property_bindings/TEST_CASES.json b/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_bindings/property_bindings/TEST_CASES.json
index a0412d19096a..027c58e0991b 100644
--- a/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_bindings/property_bindings/TEST_CASES.json
+++ b/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_bindings/property_bindings/TEST_CASES.json
@@ -196,6 +196,20 @@
           ]
         }
       ]
+    },
+    {
+      "description": "should maintain the binding order between one-way and two-way properties",
+      "inputFiles": [
+        "mixed_one_way_two_way_property_order.ts"
+      ],
+      "expectations": [
+        {
+          "failureMessage": "Incorrect template",
+          "files": [
+            "mixed_one_way_two_way_property_order.js"
+          ]
+        }
+      ]
     }
   ]
 }
diff --git a/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_bindings/property_bindings/mixed_one_way_two_way_property_order.js b/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_bindings/property_bindings/mixed_one_way_two_way_property_order.js
new file mode 100644
index 000000000000..ed5c26a1f51f
--- /dev/null
+++ b/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_bindings/property_bindings/mixed_one_way_two_way_property_order.js
@@ -0,0 +1,6 @@
+if (rf & 2) {
+  $r3$.ɵɵtwoWayProperty("a", ctx.value);
+  $r3$.ɵɵproperty("b", ctx.value);
+  $r3$.ɵɵtwoWayProperty("c", ctx.value);
+  $r3$.ɵɵproperty("d", ctx.value);
+}
diff --git a/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_bindings/property_bindings/mixed_one_way_two_way_property_order.ts b/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_bindings/property_bindings/mixed_one_way_two_way_property_order.ts
new file mode 100644
index 000000000000..3327b09186b6
--- /dev/null
+++ b/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_bindings/property_bindings/mixed_one_way_two_way_property_order.ts
@@ -0,0 +1,25 @@
+import {Component, Directive, Input, Output} from '@angular/core';
+
+@Directive({standalone: true, selector: '[dir]'})
+export class Dir {
+  @Input() a: unknown;
+  @Output() aChange: unknown;
+
+  @Input() b: unknown;
+
+  @Input() c: unknown;
+  @Output() cChange: unknown;
+
+  @Input() d: unknown;
+}
+
+@Component({
+  standalone: true,
+  imports: [Dir],
+  template: `
+    <div dir [(a)]="value" [b]="value" [(c)]="value" [d]="value"></div>
+  `,
+})
+export class App {
+  value = 'hi';
+}
diff --git a/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_listener/GOLDEN_PARTIAL.js b/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_listener/GOLDEN_PARTIAL.js
index e3c96ad6f59c..1d298f51ea49 100644
--- a/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_listener/GOLDEN_PARTIAL.js
+++ b/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_listener/GOLDEN_PARTIAL.js
@@ -850,3 +850,70 @@ export declare class MyComponent {
     static ɵcmp: i0.ɵɵComponentDeclaration<MyComponent, "my-component", never, {}, {}, never, never, true, never>;
 }
 
+/****************************************************************************************************
+ * PARTIAL FILE: mixed_one_way_two_way_listener_order.js
+ ****************************************************************************************************/
+import { Component, Directive, Input, Output } from '@angular/core';
+import * as i0 from "@angular/core";
+export class Dir {
+}
+Dir.ɵfac = i0.ɵɵngDeclareFactory({ minVersion: "12.0.0", version: "0.0.0-PLACEHOLDER", ngImport: i0, type: Dir, deps: [], target: i0.ɵɵFactoryTarget.Directive });
+Dir.ɵdir = i0.ɵɵngDeclareDirective({ minVersion: "14.0.0", version: "0.0.0-PLACEHOLDER", type: Dir, isStandalone: true, selector: "[dir]", inputs: { a: "a", c: "c" }, outputs: { aChange: "aChange", b: "b", cChange: "cChange", d: "d" }, ngImport: i0 });
+i0.ɵɵngDeclareClassMetadata({ minVersion: "12.0.0", version: "0.0.0-PLACEHOLDER", ngImport: i0, type: Dir, decorators: [{
+            type: Directive,
+            args: [{ standalone: true, selector: '[dir]' }]
+        }], propDecorators: { a: [{
+                type: Input
+            }], aChange: [{
+                type: Output
+            }], b: [{
+                type: Output
+            }], c: [{
+                type: Input
+            }], cChange: [{
+                type: Output
+            }], d: [{
+                type: Output
+            }] } });
+export class App {
+    constructor() {
+        this.value = 'hi';
+        this.noop = () => { };
+    }
+}
+App.ɵfac = i0.ɵɵngDeclareFactory({ minVersion: "12.0.0", version: "0.0.0-PLACEHOLDER", ngImport: i0, type: App, deps: [], target: i0.ɵɵFactoryTarget.Component });
+App.ɵcmp = i0.ɵɵngDeclareComponent({ minVersion: "14.0.0", version: "0.0.0-PLACEHOLDER", type: App, isStandalone: true, selector: "ng-component", ngImport: i0, template: `
+    <div dir [(a)]="value" (b)="noop()" [(c)]="value" (d)="noop()"></div>
+  `, isInline: true, dependencies: [{ kind: "directive", type: Dir, selector: "[dir]", inputs: ["a", "c"], outputs: ["aChange", "b", "cChange", "d"] }] });
+i0.ɵɵngDeclareClassMetadata({ minVersion: "12.0.0", version: "0.0.0-PLACEHOLDER", ngImport: i0, type: App, decorators: [{
+            type: Component,
+            args: [{
+                    standalone: true,
+                    imports: [Dir],
+                    template: `
+    <div dir [(a)]="value" (b)="noop()" [(c)]="value" (d)="noop()"></div>
+  `,
+                }]
+        }] });
+
+/****************************************************************************************************
+ * PARTIAL FILE: mixed_one_way_two_way_listener_order.d.ts
+ ****************************************************************************************************/
+import * as i0 from "@angular/core";
+export declare class Dir {
+    a: unknown;
+    aChange: unknown;
+    b: unknown;
+    c: unknown;
+    cChange: unknown;
+    d: unknown;
+    static ɵfac: i0.ɵɵFactoryDeclaration<Dir, never>;
+    static ɵdir: i0.ɵɵDirectiveDeclaration<Dir, "[dir]", never, { "a": { "alias": "a"; "required": false; }; "c": { "alias": "c"; "required": false; }; }, { "aChange": "aChange"; "b": "b"; "cChange": "cChange"; "d": "d"; }, never, never, true, never>;
+}
+export declare class App {
+    value: string;
+    noop: () => void;
+    static ɵfac: i0.ɵɵFactoryDeclaration<App, never>;
+    static ɵcmp: i0.ɵɵComponentDeclaration<App, "ng-component", never, {}, {}, never, never, true, never>;
+}
+
diff --git a/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_listener/TEST_CASES.json b/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_listener/TEST_CASES.json
index 0abfef1b2145..645c2d29400d 100644
--- a/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_listener/TEST_CASES.json
+++ b/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_listener/TEST_CASES.json
@@ -344,6 +344,17 @@
           "failureMessage": "Incorrect template"
         }
       ]
+    },
+    {
+      "description": "should maintain the binding order between plain listeners and listeners part of a two-way binding",
+      "inputFiles": [
+        "mixed_one_way_two_way_listener_order.ts"
+      ],
+      "expectations": [
+        {
+          "failureMessage": "Incorrect template"
+        }
+      ]
     }
   ]
 }
diff --git a/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_listener/mixed_one_way_two_way_listener_order.js b/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_listener/mixed_one_way_two_way_listener_order.js
new file mode 100644
index 000000000000..990dc8b83b23
--- /dev/null
+++ b/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_listener/mixed_one_way_two_way_listener_order.js
@@ -0,0 +1,18 @@
+if (rf & 1) {
+  $r3$.ɵɵelementStart(0, "div", 0);
+  $r3$.ɵɵtwoWayListener("aChange", function App_Template_div_aChange_0_listener($event) {
+    $r3$.ɵɵtwoWayBindingSet(ctx.value, $event) || (ctx.value = $event);
+    return $event;
+  });
+  $r3$.ɵɵlistener("b", function App_Template_div_b_0_listener() {
+    return ctx.noop();
+  });
+  $r3$.ɵɵtwoWayListener("cChange", function App_Template_div_cChange_0_listener($event) {
+    $r3$.ɵɵtwoWayBindingSet(ctx.value, $event) || (ctx.value = $event);
+    return $event;
+  });
+  $r3$.ɵɵlistener("d", function App_Template_div_d_0_listener() {
+    return ctx.noop();
+  });
+  $r3$.ɵɵelementEnd();
+}
diff --git a/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_listener/mixed_one_way_two_way_listener_order.ts b/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_listener/mixed_one_way_two_way_listener_order.ts
new file mode 100644
index 000000000000..5aca003e6094
--- /dev/null
+++ b/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_listener/mixed_one_way_two_way_listener_order.ts
@@ -0,0 +1,26 @@
+import {Component, Directive, Input, Output} from '@angular/core';
+
+@Directive({standalone: true, selector: '[dir]'})
+export class Dir {
+  @Input() a: unknown;
+  @Output() aChange: unknown;
+
+  @Output() b: unknown;
+
+  @Input() c: unknown;
+  @Output() cChange: unknown;
+
+  @Output() d: unknown;
+}
+
+@Component({
+  standalone: true,
+  imports: [Dir],
+  template: `
+    <div dir [(a)]="value" (b)="noop()" [(c)]="value" (d)="noop()"></div>
+  `,
+})
+export class App {
+  value = 'hi';
+  noop = () => {};
+}
diff --git a/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_listener/nested_two_way_template.js b/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_listener/nested_two_way_template.js
index 82ec112c3c30..1566be1ea290 100644
--- a/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_listener/nested_two_way_template.js
+++ b/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_listener/nested_two_way_template.js
@@ -1,15 +1,16 @@
 function TestCmp_ng_template_1_Template(rf, ctx) {
   if (rf & 1) {
-    const $_r2$ = i0.ɵɵgetCurrentView();
-    i0.ɵɵelementStart(0, "input", 0);
-    i0.ɵɵlistener("ngModelChange", function TestCmp_ng_template_1_Template_input_ngModelChange_0_listener($event) {
-      i0.ɵɵrestoreView($_r2$);
-      const $ctx_r1$ = i0.ɵɵnextContext();
-      return i0.ɵɵresetView($ctx_r1$.name = $event);
+    const $_r2$ = $r3$.ɵɵgetCurrentView();
+    $r3$.ɵɵelementStart(0, "input", 0);
+    $r3$.ɵɵtwoWayListener("ngModelChange", function TestCmp_ng_template_1_Template_input_ngModelChange_0_listener($event) {
+      $r3$.ɵɵrestoreView($_r2$);
+      const $ctx_r1$ = $r3$.ɵɵnextContext();
+      $r3$.ɵɵtwoWayBindingSet($ctx_r1$.name, $event) || ($ctx_r1$.name = $event);
+      return $r3$.ɵɵresetView($event);
     });
-    i0.ɵɵelementEnd();
+    $r3$.ɵɵelementEnd();
   } if (rf & 2) {
-    const $ctx_r0$ = i0.ɵɵnextContext();
-    i0.ɵɵproperty("ngModel", $ctx_r0$.name);
+    const $ctx_r0$ = $r3$.ɵɵnextContext();
+    $r3$.ɵɵtwoWayProperty("ngModel", $ctx_r0$.name);
   }
 }
\ No newline at end of file
diff --git a/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_listener/simple_two_way_template.js b/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_listener/simple_two_way_template.js
index 6dd409247ba1..6b4ecd0b4f33 100644
--- a/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_listener/simple_two_way_template.js
+++ b/packages/compiler-cli/test/compliance/test_cases/r3_view_compiler_listener/simple_two_way_template.js
@@ -1,13 +1,14 @@
 function TestCmp_Template(rf, ctx) {
   if (rf & 1) {
-    i0.ɵɵtext(0, "Name: ");
-    i0.ɵɵelementStart(1, "input", 0);
-    i0.ɵɵlistener("ngModelChange", function TestCmp_Template_input_ngModelChange_1_listener($event) {
-      return ctx.name = $event;
+    $r3$.ɵɵtext(0, "Name: ");
+    $r3$.ɵɵelementStart(1, "input", 0);
+    $r3$.ɵɵtwoWayListener("ngModelChange", function TestCmp_Template_input_ngModelChange_1_listener($event) {
+      $r3$.ɵɵtwoWayBindingSet(ctx.name, $event) || (ctx.name = $event);
+      return $event;
     });
-    i0.ɵɵelementEnd();
+    $r3$.ɵɵelementEnd();
   } if (rf & 2) {
-    i0.ɵɵadvance();
-    i0.ɵɵproperty("ngModel", ctx.name);
+    $r3$.ɵɵadvance();
+    $r3$.ɵɵtwoWayProperty("ngModel", ctx.name);
   }
 }
diff --git a/packages/compiler-cli/test/compliance/test_cases/source_mapping/inline_templates/two_way_binding_longhand.js b/packages/compiler-cli/test/compliance/test_cases/source_mapping/inline_templates/two_way_binding_longhand.js
index d5bea639d4ee..11cf9b5b150b 100644
--- a/packages/compiler-cli/test/compliance/test_cases/source_mapping/inline_templates/two_way_binding_longhand.js
+++ b/packages/compiler-cli/test/compliance/test_cases/source_mapping/inline_templates/two_way_binding_longhand.js
@@ -1,6 +1,6 @@
 i0.ɵɵelementStart(1, "input", 0) // SOURCE: "/two_way_binding_longhand.ts" "<input "
 …
 // TODO: improve mappings here
-i0.ɵɵlistener("ngModelChange", function TestCmp_Template_input_ngModelChange_1_listener($event) { return ctx.name = $event; }) // SOURCE: "/two_way_binding_longhand.ts" "bindon-ngModel=\"name\""
+i0.ɵɵtwoWayListener("ngModelChange", function TestCmp_Template_input_ngModelChange_1_listener($event) { i0.ɵɵtwoWayBindingSet(ctx.name, $event) || (ctx.name = $event); return $event; }) // SOURCE: "/two_way_binding_longhand.ts" "bindon-ngModel=\"name\""
 …
 i0.ɵɵelementEnd() // SOURCE: "/two_way_binding_longhand.ts" "<input "
diff --git a/packages/compiler-cli/test/compliance/test_cases/source_mapping/inline_templates/two_way_binding_longhand_partial.js b/packages/compiler-cli/test/compliance/test_cases/source_mapping/inline_templates/two_way_binding_longhand_partial.js
index a3183d2928b6..3dfcc9f61f98 100644
--- a/packages/compiler-cli/test/compliance/test_cases/source_mapping/inline_templates/two_way_binding_longhand_partial.js
+++ b/packages/compiler-cli/test/compliance/test_cases/source_mapping/inline_templates/two_way_binding_longhand_partial.js
@@ -1,7 +1,7 @@
 .ɵɵelementStart(1, "input", 0) // SOURCE: "/two_way_binding_longhand.ts" "<input "
 …
 // TODO: improve mappings here
-.ɵɵlistener("ngModelChange", function TestCmp_Template_input_ngModelChange_1_listener($event) {\n         // SOURCE: "/two_way_binding_longhand.ts" "bindon-ngModel=\"name\">'"
+.ɵɵtwoWayListener("ngModelChange", function TestCmp_Template_input_ngModelChange_1_listener($event) {\n         // SOURCE: "/two_way_binding_longhand.ts" "bindon-ngModel=\"name\">'"
 …
 // TODO: Work out how to fix the broken segment for the last item in a template
 .ɵɵelementEnd() // SOURCE: "/two_way_binding_longhand.ts" "<input "
diff --git a/packages/compiler-cli/test/compliance/test_cases/source_mapping/inline_templates/two_way_binding_simple.js b/packages/compiler-cli/test/compliance/test_cases/source_mapping/inline_templates/two_way_binding_simple.js
index 6707386d1db0..5f00024d047f 100644
--- a/packages/compiler-cli/test/compliance/test_cases/source_mapping/inline_templates/two_way_binding_simple.js
+++ b/packages/compiler-cli/test/compliance/test_cases/source_mapping/inline_templates/two_way_binding_simple.js
@@ -2,6 +2,6 @@
 i0.ɵɵelementStart(1, "input", 0) // SOURCE: "/two_way_binding_simple.ts" "<input "
 …
 // TODO: improve mappings here
-i0.ɵɵlistener("ngModelChange", function TestCmp_Template_input_ngModelChange_1_listener($event) { return ctx.name = $event; }) // SOURCE: "/two_way_binding_simple.ts" "[(ngModel)]=\"name\""
+i0.ɵɵtwoWayListener("ngModelChange", function TestCmp_Template_input_ngModelChange_1_listener($event) { i0.ɵɵtwoWayBindingSet(ctx.name, $event) || (ctx.name = $event); return $event; }) // SOURCE: "/two_way_binding_simple.ts" "[(ngModel)]=\"name\""
 …
 i0.ɵɵelementEnd() // SOURCE: "/two_way_binding_simple.ts" "<input "
diff --git a/packages/compiler-cli/test/compliance/test_cases/source_mapping/inline_templates/two_way_binding_simple_partial.js b/packages/compiler-cli/test/compliance/test_cases/source_mapping/inline_templates/two_way_binding_simple_partial.js
index b8c1aed62a58..caf3b64a534f 100644
--- a/packages/compiler-cli/test/compliance/test_cases/source_mapping/inline_templates/two_way_binding_simple_partial.js
+++ b/packages/compiler-cli/test/compliance/test_cases/source_mapping/inline_templates/two_way_binding_simple_partial.js
@@ -2,6 +2,6 @@
 .ɵɵelementStart(1, "input", 0) // SOURCE: "/two_way_binding_simple.ts" "<input "
 …
 // TODO: improve mappings here
-.ɵɵlistener("ngModelChange", function TestCmp_Template_input_ngModelChange_1_listener($event) {\n         // SOURCE: "/two_way_binding_simple.ts" "[(ngModel)]=\"name\">'"
+.ɵɵtwoWayListener("ngModelChange", function TestCmp_Template_input_ngModelChange_1_listener($event) {\n         // SOURCE: "/two_way_binding_simple.ts" "[(ngModel)]=\"name\">'"
 …
 .ɵɵelementEnd() // SOURCE: "/two_way_binding_simple.ts" "<input "
diff --git a/packages/compiler-cli/test/ngtsc/ngtsc_spec.ts b/packages/compiler-cli/test/ngtsc/ngtsc_spec.ts
index edbf759b544f..1075d9b23463 100644
--- a/packages/compiler-cli/test/ngtsc/ngtsc_spec.ts
+++ b/packages/compiler-cli/test/ngtsc/ngtsc_spec.ts
@@ -10185,6 +10185,169 @@ function allTests(os: string) {
            expect(jsContents).not.toMatch('forbidOrphanRendering:');
          });
     });
+
+    describe('two-way binding backwards compatibility', () => {
+      it('should allow an && expression in a two-way binding', () => {
+        env.write(`test.ts`, `
+          import {Component, Directive, Input, Output, EventEmitter} from '@angular/core';
+
+          @Directive({standalone: true, selector: '[dir]'})
+          class Dir {
+            @Input() value: any;
+            @Output() valueChange = new EventEmitter<any>();
+          }
+
+          @Component({
+            standalone: true,
+            imports: [Dir],
+            template: \`<div dir [(value)]="a && !b && c"></div>\`
+          })
+          class App {
+            a = true;
+            b = false;
+            c = 'hello';
+          }
+        `);
+
+        env.driveMain();
+        const jsContents = env.getContents('test.js');
+
+        expect(jsContents).toContain('ɵɵtwoWayProperty("value", ctx.a && !ctx.b && ctx.c);');
+        expect(jsContents)
+            .toContain(
+                '{ ctx.a && !ctx.b && (i0.ɵɵtwoWayBindingSet(ctx.c, $event) || (ctx.c = $event)); return $event; }');
+      });
+
+      it('should allow an || expression in a two-way binding', () => {
+        env.write(`test.ts`, `
+          import {Component, Directive, Input, Output, EventEmitter} from '@angular/core';
+
+          @Directive({standalone: true, selector: '[dir]'})
+          class Dir {
+            @Input() value: any;
+            @Output() valueChange = new EventEmitter<any>();
+          }
+
+          @Component({
+            standalone: true,
+            imports: [Dir],
+            template: \`<div dir [(value)]="a || !b || c"></div>\`
+          })
+          class App {
+            a = true;
+            b = false;
+            c = 'hello';
+          }
+        `);
+
+        env.driveMain();
+        const jsContents = env.getContents('test.js');
+
+        expect(jsContents).toContain('ɵɵtwoWayProperty("value", ctx.a || !ctx.b || ctx.c);');
+        expect(jsContents)
+            .toContain(
+                '{ ctx.a || !ctx.b || (i0.ɵɵtwoWayBindingSet(ctx.c, $event) || (ctx.c = $event)); return $event; }');
+      });
+
+      it('should allow an ?? expression in a two-way binding', () => {
+        env.write(`test.ts`, `
+          import {Component, Directive, Input, Output, EventEmitter} from '@angular/core';
+
+          @Directive({standalone: true, selector: '[dir]'})
+          class Dir {
+            @Input() value: any;
+            @Output() valueChange = new EventEmitter<any>();
+          }
+
+          @Component({
+            standalone: true,
+            imports: [Dir],
+            template: \`<div dir [(value)]="a ?? !b ?? c"></div>\`
+          })
+          class App {
+            a = true;
+            b = false;
+            c = 'hello';
+          }
+        `);
+
+        env.driveMain();
+        const jsContents = env.getContents('test.js');
+
+        expect(jsContents).toContain('let tmp_0_0;');
+        expect(jsContents)
+            .toContain(
+                'ɵɵtwoWayProperty("value", (tmp_0_0 = (tmp_0_0 = ctx.a) !== null && ' +
+                'tmp_0_0 !== undefined ? tmp_0_0 : !ctx.b) !== null && tmp_0_0 !== undefined ? tmp_0_0 : ctx.c);');
+
+        expect(jsContents).toContain('let tmp_b_0;');
+        expect(jsContents)
+            .toContain(
+                '(tmp_b_0 = (tmp_b_0 = ctx.a) !== null && tmp_b_0 !== undefined ? ' +
+                'tmp_b_0 : !ctx.b) !== null && tmp_b_0 !== undefined ? tmp_b_0 : ' +
+                'i0.ɵɵtwoWayBindingSet(ctx.c, $event) || (ctx.c = $event); return $event;');
+      });
+
+      it('should allow a ternary expression in a two-way binding', () => {
+        env.write(`test.ts`, `
+          import {Component, Directive, Input, Output, EventEmitter} from '@angular/core';
+
+          @Directive({standalone: true, selector: '[dir]'})
+          class Dir {
+            @Input() value: any;
+            @Output() valueChange = new EventEmitter<any>();
+          }
+
+          @Component({
+            standalone: true,
+            imports: [Dir],
+            template: \`<div dir [(value)]="a ? b : c"></div>\`
+          })
+          class App {
+            a = true;
+            b = false;
+            c = 'hello';
+          }
+        `);
+
+        env.driveMain();
+        const jsContents = env.getContents('test.js');
+
+        expect(jsContents).toContain('ɵɵtwoWayProperty("value", ctx.a ? ctx.b : ctx.c);');
+        expect(jsContents)
+            .toContain(
+                '{ ctx.a ? ctx.b : i0.ɵɵtwoWayBindingSet(ctx.c, $event) || (ctx.c = $event); return $event; }');
+      });
+
+      it('should allow a prefixed unary expression in a two-way binding', () => {
+        env.write(`test.ts`, `
+          import {Component, Directive, Input, Output, EventEmitter} from '@angular/core';
+
+          @Directive({standalone: true, selector: '[dir]'})
+          class Dir {
+            @Input() value: any;
+            @Output() valueChange = new EventEmitter<any>();
+          }
+
+          @Component({
+            standalone: true,
+            imports: [Dir],
+            template: \`<div dir [(value)]="!!!a"></div>\`
+          })
+          class App {
+            a = true;
+          }
+        `);
+
+        env.driveMain();
+        const jsContents = env.getContents('test.js');
+
+        expect(jsContents).toContain('ɵɵtwoWayProperty("value", !!!ctx.a);');
+        expect(jsContents)
+            .toContain(
+                '{ i0.ɵɵtwoWayBindingSet(ctx.a, $event) || (ctx.a = $event); return $event; }');
+      });
+    });
   });
 
   function expectTokenAtPosition<T extends ts.Node>(
diff --git a/packages/compiler-cli/test/ngtsc/template_mapping_spec.ts b/packages/compiler-cli/test/ngtsc/template_mapping_spec.ts
index 596d30964ec1..230be4e1ccbe 100644
--- a/packages/compiler-cli/test/ngtsc/template_mapping_spec.ts
+++ b/packages/compiler-cli/test/ngtsc/template_mapping_spec.ts
@@ -225,7 +225,7 @@ runInEachFileSystem((os) => {
           expectMapping(mappings, {
             source: '[(ngModel)]="name"',
             generated:
-                'i0.ɵɵlistener("ngModelChange", function TestCmp_Template_input_ngModelChange_1_listener($event) { return ctx.name = $event; })',
+                'i0.ɵɵtwoWayListener("ngModelChange", function TestCmp_Template_input_ngModelChange_1_listener($event) { i0.ɵɵtwoWayBindingSet(ctx.name, $event) || (ctx.name = $event); return $event; })',
             sourceUrl: '../test.ts'
           });
           expectMapping(mappings, {
@@ -246,7 +246,7 @@ runInEachFileSystem((os) => {
           expectMapping(mappings, {
             source: 'bindon-ngModel="name"',
             generated:
-                'i0.ɵɵlistener("ngModelChange", function TestCmp_Template_input_ngModelChange_1_listener($event) { return ctx.name = $event; })',
+                'i0.ɵɵtwoWayListener("ngModelChange", function TestCmp_Template_input_ngModelChange_1_listener($event) { i0.ɵɵtwoWayBindingSet(ctx.name, $event) || (ctx.name = $event); return $event; })',
             sourceUrl: '../test.ts'
           });
           expectMapping(mappings, {
diff --git a/packages/compiler/src/compiler_util/expression_converter.ts b/packages/compiler/src/compiler_util/expression_converter.ts
index bd88e8385c7f..65ff3e544610 100644
--- a/packages/compiler/src/compiler_util/expression_converter.ts
+++ b/packages/compiler/src/compiler_util/expression_converter.ts
@@ -9,6 +9,7 @@
 import * as cdAst from '../expression_parser/ast';
 import * as o from '../output/output_ast';
 import {ParseSourceSpan} from '../parse_util';
+import {Identifiers as R3} from '../render3/r3_identifiers';
 
 export class EventHandlerVars {
   static event = o.variable('$event');
@@ -29,37 +30,12 @@ export function convertActionBinding(
     localResolver: LocalResolver|null, implicitReceiver: o.Expression, action: cdAst.AST,
     bindingId: string, baseSourceSpan?: ParseSourceSpan, implicitReceiverAccesses?: Set<string>,
     globals?: Set<string>): o.Statement[] {
-  if (!localResolver) {
-    localResolver = new DefaultLocalResolver(globals);
-  }
-  const actionWithoutBuiltins = convertPropertyBindingBuiltins(
-      {
-        createLiteralArrayConverter: (argCount: number) => {
-          // Note: no caching for literal arrays in actions.
-          return (args: o.Expression[]) => o.literalArr(args);
-        },
-        createLiteralMapConverter: (keys: {key: string, quoted: boolean}[]) => {
-          // Note: no caching for literal maps in actions.
-          return (values: o.Expression[]) => {
-            const entries = keys.map((k, i) => ({
-                                       key: k.key,
-                                       value: values[i],
-                                       quoted: k.quoted,
-                                     }));
-            return o.literalMap(entries);
-          };
-        },
-        createPipeConverter: (name: string) => {
-          throw new Error(`Illegal State: Actions are not allowed to contain pipes. Pipe: ${name}`);
-        }
-      },
-      action);
-
+  localResolver ??= new DefaultLocalResolver(globals);
   const visitor = new _AstToIrVisitor(
       localResolver, implicitReceiver, bindingId, /* supportsInterpolation */ false, baseSourceSpan,
       implicitReceiverAccesses);
   const actionStmts: o.Statement[] = [];
-  flattenStatements(actionWithoutBuiltins.visit(visitor, _Mode.Statement), actionStmts);
+  flattenStatements(convertActionBuiltins(action).visit(visitor, _Mode.Statement), actionStmts);
   prependTemporaryDecls(visitor.temporaryCount, bindingId, actionStmts);
 
   if (visitor.usesImplicitReceiver) {
@@ -77,6 +53,95 @@ export function convertActionBinding(
   return actionStmts;
 }
 
+export function convertAssignmentActionBinding(
+    localResolver: LocalResolver|null, implicitReceiver: o.Expression, action: cdAst.AST,
+    bindingId: string, baseSourceSpan?: ParseSourceSpan, implicitReceiverAccesses?: Set<string>,
+    globals?: Set<string>): o.Statement[] {
+  localResolver ??= new DefaultLocalResolver(globals);
+  const visitor = new _AstToIrVisitor(
+      localResolver, implicitReceiver, bindingId, /* supportsInterpolation */ false, baseSourceSpan,
+      implicitReceiverAccesses);
+  let convertedAction = convertActionBuiltins(action).visit(visitor, _Mode.Statement);
+
+  // This should already have been asserted in the parser, but we verify it here just in case.
+  if (!(convertedAction instanceof o.ExpressionStatement)) {
+    throw new Error(`Illegal state: unsupported expression in two-way action binding.`);
+  }
+
+  // Converts `[(ngModel)]="name"` to `twoWayBindingSet(ctx.name, $event) || (ctx.name = $event)`.
+  convertedAction = wrapAssignmentAction(convertedAction.expr).toStmt();
+  const actionStmts: o.Statement[] = [];
+  flattenStatements(convertedAction, actionStmts);
+  prependTemporaryDecls(visitor.temporaryCount, bindingId, actionStmts);
+
+  // Assignment events always return `$event`.
+  actionStmts.push(new o.ReturnStatement(EventHandlerVars.event));
+  implicitReceiverAccesses?.add(EventHandlerVars.event.name);
+
+  if (visitor.usesImplicitReceiver) {
+    localResolver.notifyImplicitReceiverUse();
+  }
+  return actionStmts;
+}
+
+function wrapAssignmentReadExpression(ast: o.ReadPropExpr|o.ReadKeyExpr): o.Expression {
+  return new o.ExternalExpr(R3.twoWayBindingSet)
+      .callFn([ast, EventHandlerVars.event])
+      .or(ast.set(EventHandlerVars.event));
+}
+
+function isReadExpression(value: unknown): value is o.ReadPropExpr|o.ReadKeyExpr {
+  return value instanceof o.ReadPropExpr || value instanceof o.ReadKeyExpr;
+}
+
+function wrapAssignmentAction(ast: o.Expression): o.Expression {
+  // The only officially supported expressions inside of a two-way binding are read expressions.
+  if (isReadExpression(ast)) {
+    return wrapAssignmentReadExpression(ast);
+  }
+
+  // However, historically the expression parser was handling two-way events by appending `=$event`
+  // to the raw string before attempting to parse it. This has led to bugs over the years (see
+  // #37809) and to unintentionally supporting unassignable events in the two-way binding. The
+  // logic below aims to emulate the old behavior while still supporting the new output format
+  // which uses `twoWayBindingSet`. Note that the generated code doesn't necessarily make sense
+  // based on what the user wrote, for example the event binding for `[(value)]="a ? b : c"`
+  // would produce `ctx.a ? ctx.b : ctx.c = $event`. We aim to reproduce what the parser used
+  // to generate before #54154.
+  if (ast instanceof o.BinaryOperatorExpr && isReadExpression(ast.rhs)) {
+    // `a && b` -> `ctx.a && twoWayBindingSet(ctx.b, $event) || (ctx.b = $event)`
+    return new o.BinaryOperatorExpr(ast.operator, ast.lhs, wrapAssignmentReadExpression(ast.rhs));
+  }
+
+  // Note: this also supports nullish coalescing expressions which
+  // would've been downleveled to ternary expressions by this point.
+  if (ast instanceof o.ConditionalExpr && isReadExpression(ast.falseCase)) {
+    // `a ? b : c` -> `ctx.a ? ctx.b : twoWayBindingSet(ctx.c, $event) || (ctx.c = $event)`
+    return new o.ConditionalExpr(
+        ast.condition, ast.trueCase, wrapAssignmentReadExpression(ast.falseCase));
+  }
+
+  // `!!a` -> `twoWayBindingSet(ctx.a, $event) || (ctx.a = $event)`
+  // Note: previously we'd actually produce `!!(ctx.a = $event)`, but the wrapping
+  // node doesn't affect the result so we don't need to carry it over.
+  if (ast instanceof o.NotExpr) {
+    let expr = ast.condition;
+
+    while (true) {
+      if (expr instanceof o.NotExpr) {
+        expr = expr.condition;
+      } else {
+        if (isReadExpression(expr)) {
+          return wrapAssignmentReadExpression(expr);
+        }
+        break;
+      }
+    }
+  }
+
+  throw new Error(`Illegal state: unsupported expression in two-way action binding.`);
+}
+
 export interface BuiltinConverter {
   (args: o.Expression[]): o.Expression;
 }
@@ -190,6 +255,31 @@ function convertBuiltins(converterFactory: BuiltinConverterFactory, ast: cdAst.A
   return ast.visit(visitor);
 }
 
+function convertActionBuiltins(action: cdAst.AST) {
+  const converterFactory: BuiltinConverterFactory = {
+    createLiteralArrayConverter: () => {
+      // Note: no caching for literal arrays in actions.
+      return (args: o.Expression[]) => o.literalArr(args);
+    },
+    createLiteralMapConverter: (keys: {key: string, quoted: boolean}[]) => {
+      // Note: no caching for literal maps in actions.
+      return (values: o.Expression[]) => {
+        const entries = keys.map((k, i) => ({
+                                   key: k.key,
+                                   value: values[i],
+                                   quoted: k.quoted,
+                                 }));
+        return o.literalMap(entries);
+      };
+    },
+    createPipeConverter: (name: string) => {
+      throw new Error(`Illegal State: Actions are not allowed to contain pipes. Pipe: ${name}`);
+    }
+  };
+
+  return convertPropertyBindingBuiltins(converterFactory, action);
+}
+
 function temporaryName(bindingId: string, temporaryNumber: number): string {
   return `tmp_${bindingId}_${temporaryNumber}`;
 }
diff --git a/packages/compiler/src/expression_parser/ast.ts b/packages/compiler/src/expression_parser/ast.ts
index 8e0dec404b35..03eec0ed6b93 100644
--- a/packages/compiler/src/expression_parser/ast.ts
+++ b/packages/compiler/src/expression_parser/ast.ts
@@ -320,9 +320,9 @@ export class AbsoluteSourceSpan {
   constructor(public readonly start: number, public readonly end: number) {}
 }
 
-export class ASTWithSource extends AST {
+export class ASTWithSource<T extends AST = AST> extends AST {
   constructor(
-      public ast: AST, public source: string|null, public location: string, absoluteOffset: number,
+      public ast: T, public source: string|null, public location: string, absoluteOffset: number,
       public errors: ParserError[]) {
     super(
         new ParseSpan(0, source === null ? 0 : source.length),
@@ -858,6 +858,15 @@ export const enum ParsedEventType {
 export class ParsedEvent {
   // Regular events have a target
   // Animation events have a phase
+  constructor(
+      name: string, targetOrPhase: string, type: ParsedEventType.TwoWay,
+      handler: ASTWithSource<NonNullAssert|PropertyRead|KeyedRead>, sourceSpan: ParseSourceSpan,
+      handlerSpan: ParseSourceSpan, keySpan: ParseSourceSpan);
+
+  constructor(
+      name: string, targetOrPhase: string, type: ParsedEventType, handler: ASTWithSource,
+      sourceSpan: ParseSourceSpan, handlerSpan: ParseSourceSpan, keySpan: ParseSourceSpan);
+
   constructor(
       public name: string, public targetOrPhase: string, public type: ParsedEventType,
       public handler: ASTWithSource, public sourceSpan: ParseSourceSpan,
diff --git a/packages/compiler/src/expression_parser/parser.ts b/packages/compiler/src/expression_parser/parser.ts
index a60c08efd84c..a7ce8d53fae8 100644
--- a/packages/compiler/src/expression_parser/parser.ts
+++ b/packages/compiler/src/expression_parser/parser.ts
@@ -40,12 +40,6 @@ export const enum ParseFlags {
    * Whether an output binding is being parsed.
    */
   Action = 1 << 0,
-
-  /**
-   * Whether an assignment event is being parsed, i.e. an expression originating from
-   * two-way-binding aka banana-in-a-box syntax.
-   */
-  AssignmentEvent = 1 << 1,
 }
 
 export class Parser {
@@ -54,17 +48,15 @@ export class Parser {
   constructor(private _lexer: Lexer) {}
 
   parseAction(
-      input: string, isAssignmentEvent: boolean, location: string, absoluteOffset: number,
+      input: string, location: string, absoluteOffset: number,
       interpolationConfig: InterpolationConfig = DEFAULT_INTERPOLATION_CONFIG): ASTWithSource {
     this._checkNoInterpolation(input, location, interpolationConfig);
     const sourceToLex = this._stripComments(input);
     const tokens = this._lexer.tokenize(sourceToLex);
-    let flags = ParseFlags.Action;
-    if (isAssignmentEvent) {
-      flags |= ParseFlags.AssignmentEvent;
-    }
     const ast =
-        new _ParseAST(input, location, absoluteOffset, tokens, flags, this.errors, 0).parseChain();
+        new _ParseAST(input, location, absoluteOffset, tokens, ParseFlags.Action, this.errors, 0)
+            .parseChain();
+
     return new ASTWithSource(ast, input, location, absoluteOffset, this.errors);
   }
 
@@ -382,7 +374,7 @@ enum ParseContextFlags {
   Writable = 1,
 }
 
-export class _ParseAST {
+class _ParseAST {
   private rparensExpected = 0;
   private rbracketsExpected = 0;
   private rbracesExpected = 0;
@@ -394,24 +386,24 @@ export class _ParseAST {
   // and may change for subsequent expressions visited by the parser.
   private sourceSpanCache = new Map<string, AbsoluteSourceSpan>();
 
-  index: number = 0;
+  private index: number = 0;
 
   constructor(
-      public input: string, public location: string, public absoluteOffset: number,
-      public tokens: Token[], public parseFlags: ParseFlags, private errors: ParserError[],
+      private input: string, private location: string, private absoluteOffset: number,
+      private tokens: Token[], private parseFlags: ParseFlags, private errors: ParserError[],
       private offset: number) {}
 
-  peek(offset: number): Token {
+  private peek(offset: number): Token {
     const i = this.index + offset;
     return i < this.tokens.length ? this.tokens[i] : EOF;
   }
 
-  get next(): Token {
+  private get next(): Token {
     return this.peek(0);
   }
 
   /** Whether all the parser input has been processed. */
-  get atEOF(): boolean {
+  private get atEOF(): boolean {
     return this.index >= this.tokens.length;
   }
 
@@ -419,7 +411,7 @@ export class _ParseAST {
    * Index of the next token to be processed, or the end of the last token if all have been
    * processed.
    */
-  get inputIndex(): number {
+  private get inputIndex(): number {
     return this.atEOF ? this.currentEndIndex : this.next.index + this.offset;
   }
 
@@ -427,7 +419,7 @@ export class _ParseAST {
    * End index of the last processed token, or the start of the first token if none have been
    * processed.
    */
-  get currentEndIndex(): number {
+  private get currentEndIndex(): number {
     if (this.index > 0) {
       const curToken = this.peek(-1);
       return curToken.end + this.offset;
@@ -443,7 +435,7 @@ export class _ParseAST {
   /**
    * Returns the absolute offset of the start of the current token.
    */
-  get currentAbsoluteOffset(): number {
+  private get currentAbsoluteOffset(): number {
     return this.absoluteOffset + this.inputIndex;
   }
 
@@ -455,7 +447,7 @@ export class _ParseAST {
    * @param artificialEndIndex Optional ending index to be used if provided (and if greater than the
    *     natural ending index)
    */
-  span(start: number, artificialEndIndex?: number): ParseSpan {
+  private span(start: number, artificialEndIndex?: number): ParseSpan {
     let endIndex = this.currentEndIndex;
     if (artificialEndIndex !== undefined && artificialEndIndex > this.currentEndIndex) {
       endIndex = artificialEndIndex;
@@ -476,7 +468,7 @@ export class _ParseAST {
     return new ParseSpan(start, endIndex);
   }
 
-  sourceSpan(start: number, artificialEndIndex?: number): AbsoluteSourceSpan {
+  private sourceSpan(start: number, artificialEndIndex?: number): AbsoluteSourceSpan {
     const serial = `${start}@${this.inputIndex}:${artificialEndIndex}`;
     if (!this.sourceSpanCache.has(serial)) {
       this.sourceSpanCache.set(
@@ -485,7 +477,7 @@ export class _ParseAST {
     return this.sourceSpanCache.get(serial)!;
   }
 
-  advance() {
+  private advance() {
     this.index++;
   }
 
@@ -499,7 +491,7 @@ export class _ParseAST {
     return ret;
   }
 
-  consumeOptionalCharacter(code: number): boolean {
+  private consumeOptionalCharacter(code: number): boolean {
     if (this.next.isCharacter(code)) {
       this.advance();
       return true;
@@ -508,10 +500,11 @@ export class _ParseAST {
     }
   }
 
-  peekKeywordLet(): boolean {
+  private peekKeywordLet(): boolean {
     return this.next.isKeywordLet();
   }
-  peekKeywordAs(): boolean {
+
+  private peekKeywordAs(): boolean {
     return this.next.isKeywordAs();
   }
 
@@ -521,12 +514,12 @@ export class _ParseAST {
    *
    * See `this.error` and `this.skip` for more details.
    */
-  expectCharacter(code: number) {
+  private expectCharacter(code: number) {
     if (this.consumeOptionalCharacter(code)) return;
     this.error(`Missing expected ${String.fromCharCode(code)}`);
   }
 
-  consumeOptionalOperator(op: string): boolean {
+  private consumeOptionalOperator(op: string): boolean {
     if (this.next.isOperator(op)) {
       this.advance();
       return true;
@@ -535,16 +528,16 @@ export class _ParseAST {
     }
   }
 
-  expectOperator(operator: string) {
+  private expectOperator(operator: string) {
     if (this.consumeOptionalOperator(operator)) return;
     this.error(`Missing expected operator ${operator}`);
   }
 
-  prettyPrintToken(tok: Token): string {
+  private prettyPrintToken(tok: Token): string {
     return tok === EOF ? 'end of input' : `token ${tok}`;
   }
 
-  expectIdentifierOrKeyword(): string|null {
+  private expectIdentifierOrKeyword(): string|null {
     const n = this.next;
     if (!n.isIdentifier() && !n.isKeyword()) {
       if (n.isPrivateIdentifier()) {
@@ -558,7 +551,7 @@ export class _ParseAST {
     return n.toString() as string;
   }
 
-  expectIdentifierOrKeywordOrString(): string {
+  private expectIdentifierOrKeywordOrString(): string {
     const n = this.next;
     if (!n.isIdentifier() && !n.isKeyword() && !n.isString()) {
       if (n.isPrivateIdentifier()) {
@@ -610,12 +603,12 @@ export class _ParseAST {
     return new Chain(this.span(start), this.sourceSpan(start), exprs);
   }
 
-  parsePipe(): AST {
+  private parsePipe(): AST {
     const start = this.inputIndex;
     let result = this.parseExpression();
     if (this.consumeOptionalOperator('|')) {
       if (this.parseFlags & ParseFlags.Action) {
-        this.error('Cannot have a pipe in an action expression');
+        this.error(`Cannot have a pipe in an action expression`);
       }
 
       do {
@@ -659,11 +652,11 @@ export class _ParseAST {
     return result;
   }
 
-  parseExpression(): AST {
+  private parseExpression(): AST {
     return this.parseConditional();
   }
 
-  parseConditional(): AST {
+  private parseConditional(): AST {
     const start = this.inputIndex;
     const result = this.parseLogicalOr();
 
@@ -684,7 +677,7 @@ export class _ParseAST {
     }
   }
 
-  parseLogicalOr(): AST {
+  private parseLogicalOr(): AST {
     // '||'
     const start = this.inputIndex;
     let result = this.parseLogicalAnd();
@@ -695,7 +688,7 @@ export class _ParseAST {
     return result;
   }
 
-  parseLogicalAnd(): AST {
+  private parseLogicalAnd(): AST {
     // '&&'
     const start = this.inputIndex;
     let result = this.parseNullishCoalescing();
@@ -706,7 +699,7 @@ export class _ParseAST {
     return result;
   }
 
-  parseNullishCoalescing(): AST {
+  private parseNullishCoalescing(): AST {
     // '??'
     const start = this.inputIndex;
     let result = this.parseEquality();
@@ -717,7 +710,7 @@ export class _ParseAST {
     return result;
   }
 
-  parseEquality(): AST {
+  private parseEquality(): AST {
     // '==','!=','===','!=='
     const start = this.inputIndex;
     let result = this.parseRelational();
@@ -738,7 +731,7 @@ export class _ParseAST {
     return result;
   }
 
-  parseRelational(): AST {
+  private parseRelational(): AST {
     // '<', '>', '<=', '>='
     const start = this.inputIndex;
     let result = this.parseAdditive();
@@ -759,7 +752,7 @@ export class _ParseAST {
     return result;
   }
 
-  parseAdditive(): AST {
+  private parseAdditive(): AST {
     // '+', '-'
     const start = this.inputIndex;
     let result = this.parseMultiplicative();
@@ -778,7 +771,7 @@ export class _ParseAST {
     return result;
   }
 
-  parseMultiplicative(): AST {
+  private parseMultiplicative(): AST {
     // '*', '%', '/'
     const start = this.inputIndex;
     let result = this.parsePrefix();
@@ -798,7 +791,7 @@ export class _ParseAST {
     return result;
   }
 
-  parsePrefix(): AST {
+  private parsePrefix(): AST {
     if (this.next.type == TokenType.Operator) {
       const start = this.inputIndex;
       const operator = this.next.strValue;
@@ -821,7 +814,7 @@ export class _ParseAST {
     return this.parseCallChain();
   }
 
-  parseCallChain(): AST {
+  private parseCallChain(): AST {
     const start = this.inputIndex;
     let result = this.parsePrimary();
     while (true) {
@@ -848,7 +841,7 @@ export class _ParseAST {
     }
   }
 
-  parsePrimary(): AST {
+  private parsePrimary(): AST {
     const start = this.inputIndex;
     if (this.consumeOptionalCharacter(chars.$LPAREN)) {
       this.rparensExpected++;
@@ -912,7 +905,7 @@ export class _ParseAST {
     }
   }
 
-  parseExpressionList(terminator: number): AST[] {
+  private parseExpressionList(terminator: number): AST[] {
     const result: AST[] = [];
 
     do {
@@ -925,7 +918,7 @@ export class _ParseAST {
     return result;
   }
 
-  parseLiteralMap(): LiteralMap {
+  private parseLiteralMap(): LiteralMap {
     const keys: LiteralMapKey[] = [];
     const values: AST[] = [];
     const start = this.inputIndex;
@@ -958,7 +951,7 @@ export class _ParseAST {
     return new LiteralMap(this.span(start), this.sourceSpan(start), keys, values);
   }
 
-  parseAccessMember(readReceiver: AST, start: number, isSafe: boolean): AST {
+  private parseAccessMember(readReceiver: AST, start: number, isSafe: boolean): AST {
     const nameStart = this.inputIndex;
     const id = this.withContext(ParseContextFlags.Writable, () => {
       const id = this.expectIdentifierOrKeyword() ?? '';
@@ -971,7 +964,7 @@ export class _ParseAST {
     let receiver: AST;
 
     if (isSafe) {
-      if (this.consumeOptionalAssignment()) {
+      if (this.consumeOptionalOperator('=')) {
         this.error('The \'?.\' operator cannot be used in the assignment');
         receiver = new EmptyExpr(this.span(start), this.sourceSpan(start));
       } else {
@@ -979,7 +972,7 @@ export class _ParseAST {
             this.span(start), this.sourceSpan(start), nameSpan, readReceiver, id);
       }
     } else {
-      if (this.consumeOptionalAssignment()) {
+      if (this.consumeOptionalOperator('=')) {
         if (!(this.parseFlags & ParseFlags.Action)) {
           this.error('Bindings cannot contain assignments');
           return new EmptyExpr(this.span(start), this.sourceSpan(start));
@@ -997,7 +990,7 @@ export class _ParseAST {
     return receiver;
   }
 
-  parseCall(receiver: AST, start: number, isSafe: boolean): AST {
+  private parseCall(receiver: AST, start: number, isSafe: boolean): AST {
     const argumentStart = this.inputIndex;
     this.rparensExpected++;
     const args = this.parseCallArguments();
@@ -1010,25 +1003,7 @@ export class _ParseAST {
                     new Call(span, sourceSpan, receiver, args, argumentSpan);
   }
 
-  private consumeOptionalAssignment(): boolean {
-    // When parsing assignment events (originating from two-way-binding aka banana-in-a-box syntax),
-    // it is valid for the primary expression to be terminated by the non-null operator. This
-    // primary expression is substituted as LHS of the assignment operator to achieve
-    // two-way-binding, such that the LHS could be the non-null operator. The grammar doesn't
-    // naturally allow for this syntax, so assignment events are parsed specially.
-    if ((this.parseFlags & ParseFlags.AssignmentEvent) && this.next.isOperator('!') &&
-        this.peek(1).isOperator('=')) {
-      // First skip over the ! operator.
-      this.advance();
-      // Then skip over the = operator, to fully consume the optional assignment operator.
-      this.advance();
-      return true;
-    }
-
-    return this.consumeOptionalOperator('=');
-  }
-
-  parseCallArguments(): BindingPipe[] {
+  private parseCallArguments(): BindingPipe[] {
     if (this.next.isCharacter(chars.$RPAREN)) return [];
     const positionals: AST[] = [];
     do {
@@ -1041,7 +1016,7 @@ export class _ParseAST {
    * Parses an identifier, a keyword, a string with an optional `-` in between,
    * and returns the string along with its absolute source span.
    */
-  expectTemplateBindingKey(): TemplateBindingIdentifier {
+  private expectTemplateBindingKey(): TemplateBindingIdentifier {
     let result = '';
     let operatorFound = false;
     const start = this.currentAbsoluteOffset;
@@ -1117,7 +1092,7 @@ export class _ParseAST {
     return new TemplateBindingParseResult(bindings, [] /* warnings */, this.errors);
   }
 
-  parseKeyedReadOrWrite(receiver: AST, start: number, isSafe: boolean): AST {
+  private parseKeyedReadOrWrite(receiver: AST, start: number, isSafe: boolean): AST {
     return this.withContext(ParseContextFlags.Writable, () => {
       this.rbracketsExpected++;
       const key = this.parsePipe();
@@ -1258,7 +1233,7 @@ export class _ParseAST {
    * Records an error and skips over the token stream until reaching a recoverable point. See
    * `this.skip` for more details on token skipping.
    */
-  error(message: string, index: number|null = null) {
+  private error(message: string, index: number|null = null) {
     this.errors.push(new ParserError(message, this.input, this.locationText(index), this.location));
     this.skip();
   }
diff --git a/packages/compiler/src/render3/r3_identifiers.ts b/packages/compiler/src/render3/r3_identifiers.ts
index db066b4117fa..c46d8eca4724 100644
--- a/packages/compiler/src/render3/r3_identifiers.ts
+++ b/packages/compiler/src/render3/r3_identifiers.ts
@@ -355,6 +355,11 @@ export class Identifiers {
   static contentQuerySignal: o.ExternalReference = {name: 'ɵɵcontentQuerySignal', moduleName: CORE};
   static queryAdvance: o.ExternalReference = {name: 'ɵɵqueryAdvance', moduleName: CORE};
 
+  // Two-way bindings
+  static twoWayProperty: o.ExternalReference = {name: 'ɵɵtwoWayProperty', moduleName: CORE};
+  static twoWayBindingSet: o.ExternalReference = {name: 'ɵɵtwoWayBindingSet', moduleName: CORE};
+  static twoWayListener: o.ExternalReference = {name: 'ɵɵtwoWayListener', moduleName: CORE};
+
   static NgOnChangesFeature: o.ExternalReference = {name: 'ɵɵNgOnChangesFeature', moduleName: CORE};
 
   static InheritDefinitionFeature:
diff --git a/packages/compiler/src/render3/r3_template_transform.ts b/packages/compiler/src/render3/r3_template_transform.ts
index 7cc85aefc2e0..2207a55d51b1 100644
--- a/packages/compiler/src/render3/r3_template_transform.ts
+++ b/packages/compiler/src/render3/r3_template_transform.ts
@@ -605,7 +605,7 @@ class HtmlAstToIvyAst implements html.Visitor {
       boundEvents: t.BoundEvent[], keySpan: ParseSourceSpan) {
     const events: ParsedEvent[] = [];
     this.bindingParser.parseEvent(
-        `${name}Change`, `${expression} =$event`, /* isAssignmentEvent */ true, sourceSpan,
+        `${name}Change`, expression, /* isAssignmentEvent */ true, sourceSpan,
         valueSpan || sourceSpan, targetMatchableAttrs, events, keySpan);
     addEvents(events, boundEvents);
   }
diff --git a/packages/compiler/src/render3/view/template.ts b/packages/compiler/src/render3/view/template.ts
index 38d4986b3a54..005a215095d6 100644
--- a/packages/compiler/src/render3/view/template.ts
+++ b/packages/compiler/src/render3/view/template.ts
@@ -6,7 +6,7 @@
  * found in the LICENSE file at https://angular.io/license
  */
 
-import {BuiltinFunctionCall, convertActionBinding, convertPropertyBinding, convertPureComponentScopeFunction, convertUpdateArguments, LocalResolver} from '../../compiler_util/expression_converter';
+import {BuiltinFunctionCall, convertActionBinding, convertAssignmentActionBinding, convertPropertyBinding, convertPureComponentScopeFunction, convertUpdateArguments, LocalResolver} from '../../compiler_util/expression_converter';
 import {ConstantPool} from '../../constant_pool';
 import * as core from '../../core';
 import {AST, AstMemoryEfficientTransformer, BindingPipe, BindingType, Call, ImplicitReceiver, Interpolation, LiteralArray, LiteralMap, LiteralPrimitive, ParsedEventType, PropertyRead} from '../../expression_parser/ast';
@@ -82,9 +82,13 @@ export function prepareEventListenerParameters(
   const implicitReceiverExpr = (scope === null || scope.bindingLevel === 0) ?
       o.variable(CONTEXT_NAME) :
       scope.getOrCreateSharedContextVar(0);
-  const bindingStatements = convertActionBinding(
-      scope, implicitReceiverExpr, handler, 'b', eventAst.handlerSpan, implicitReceiverAccesses,
-      EVENT_BINDING_SCOPE_GLOBALS);
+  const bindingStatements = eventAst.type === ParsedEventType.TwoWay ?
+      convertAssignmentActionBinding(
+          scope, implicitReceiverExpr, handler, 'b', eventAst.handlerSpan, implicitReceiverAccesses,
+          EVENT_BINDING_SCOPE_GLOBALS) :
+      convertActionBinding(
+          scope, implicitReceiverExpr, handler, 'b', eventAst.handlerSpan, implicitReceiverAccesses,
+          EVENT_BINDING_SCOPE_GLOBALS);
   const statements = [];
   const variableDeclarations = scope?.variableDeclarations();
   const restoreViewStatement = scope?.restoreViewStatement();
@@ -777,7 +781,8 @@ export class TemplateDefinitionBuilder implements t.Visitor<void>, LocalResolver
       if (element.outputs.length > 0) {
         for (const outputAst of element.outputs) {
           this.creationInstruction(
-              outputAst.sourceSpan, R3.listener,
+              outputAst.sourceSpan,
+              outputAst.type === ParsedEventType.TwoWay ? R3.twoWayListener : R3.listener,
               this.prepareListenerParameter(element.name, outputAst, elementIndex));
         }
       }
@@ -804,7 +809,7 @@ export class TemplateDefinitionBuilder implements t.Visitor<void>, LocalResolver
     // special value to symbolize that there is no RHS to this binding
     // TODO (matsko): revisit this once FW-959 is approached
     const emptyValueBindInstruction = o.literal(undefined);
-    const propertyBindings: Omit<Instruction, 'reference'>[] = [];
+    const propertyBindings: Instruction[] = [];
     const attributeBindings: Omit<Instruction, 'reference'>[] = [];
 
     // Generate element input bindings
@@ -826,6 +831,7 @@ export class TemplateDefinitionBuilder implements t.Visitor<void>, LocalResolver
 
         propertyBindings.push({
           span: input.sourceSpan,
+          reference: R3.property,
           paramsOrFn: getBindingFunctionParams(
               () => hasValue ? this.convertPropertyBinding(value) : emptyValueBindInstruction,
               prepareSyntheticPropertyName(input.name))
@@ -866,6 +872,8 @@ export class TemplateDefinitionBuilder implements t.Visitor<void>, LocalResolver
           }
           this.allocateBindingSlots(value);
 
+          // Note: we don't separate two-way property bindings and regular ones,
+          // because their assignment order needs to be maintained.
           if (inputType === BindingType.Property || inputType === BindingType.TwoWay) {
             if (value instanceof Interpolation) {
               // prop="{{value}}" and friends
@@ -877,6 +885,7 @@ export class TemplateDefinitionBuilder implements t.Visitor<void>, LocalResolver
               // Collect all the properties so that we can chain into a single function at the end.
               propertyBindings.push({
                 span: input.sourceSpan,
+                reference: inputType === BindingType.TwoWay ? R3.twoWayProperty : R3.property,
                 paramsOrFn: getBindingFunctionParams(
                     () => this.convertPropertyBinding(value), attrName, params)
               });
@@ -912,7 +921,8 @@ export class TemplateDefinitionBuilder implements t.Visitor<void>, LocalResolver
 
     for (const propertyBinding of propertyBindings) {
       this.updateInstructionWithAdvance(
-          elementIndex, propertyBinding.span, R3.property, propertyBinding.paramsOrFn);
+          elementIndex, propertyBinding.span, propertyBinding.reference,
+          propertyBinding.paramsOrFn);
     }
 
     for (const attributeBinding of attributeBindings) {
@@ -1048,7 +1058,8 @@ export class TemplateDefinitionBuilder implements t.Visitor<void>, LocalResolver
       // Generate listeners for directive output
       for (const outputAst of template.outputs) {
         this.creationInstruction(
-            outputAst.sourceSpan, R3.listener,
+            outputAst.sourceSpan,
+            outputAst.type === ParsedEventType.TwoWay ? R3.twoWayListener : R3.listener,
             this.prepareListenerParameter('ng_template', outputAst, templateIndex));
       }
     }
diff --git a/packages/compiler/src/render3/view/util.ts b/packages/compiler/src/render3/view/util.ts
index 4d80e1e9ede6..476f2f59d87f 100644
--- a/packages/compiler/src/render3/view/util.ts
+++ b/packages/compiler/src/render3/view/util.ts
@@ -114,6 +114,8 @@ const CHAINABLE_INSTRUCTIONS = new Set([
   R3.textInterpolate8,
   R3.textInterpolateV,
   R3.templateCreate,
+  R3.twoWayProperty,
+  R3.twoWayListener,
 ]);
 
 /**
diff --git a/packages/compiler/src/template/pipeline/ir/src/enums.ts b/packages/compiler/src/template/pipeline/ir/src/enums.ts
index 05416543b8d9..c3016425295b 100644
--- a/packages/compiler/src/template/pipeline/ir/src/enums.ts
+++ b/packages/compiler/src/template/pipeline/ir/src/enums.ts
@@ -195,6 +195,16 @@ export enum OpKind {
    */
   Repeater,
 
+  /**
+   * An operation to bind an expression to the property side of a two-way binding.
+   */
+  TwoWayProperty,
+
+  /**
+   * An operation declaring the event side of a two-way binding.
+   */
+  TwoWayListener,
+
   /**
    * The start of an i18n block.
    */
@@ -380,6 +390,11 @@ export enum ExpressionKind {
    * An expression that will be automatically extracted to the component const array.
    */
   ConstCollected,
+
+  /**
+   * Operation that sets the value of a two-way binding.
+   */
+  TwoWayBindingSet,
 }
 
 export enum VariableFlags {
@@ -474,6 +489,11 @@ export enum BindingKind {
    * Animation property bindings.
    */
   Animation,
+
+  /**
+   * Property side of a two-way binding.
+   */
+  TwoWayProperty,
 }
 
 /**
diff --git a/packages/compiler/src/template/pipeline/ir/src/expression.ts b/packages/compiler/src/template/pipeline/ir/src/expression.ts
index 09d4f253d046..9d7dd39a7e52 100644
--- a/packages/compiler/src/template/pipeline/ir/src/expression.ts
+++ b/packages/compiler/src/template/pipeline/ir/src/expression.ts
@@ -20,11 +20,11 @@ import {ConsumesVarsTrait, UsesVarOffset, UsesVarOffsetTrait} from './traits';
 /**
  * An `o.Expression` subtype representing a logical expression in the intermediate representation.
  */
-export type Expression =
-    LexicalReadExpr|ReferenceExpr|ContextExpr|NextContextExpr|GetCurrentViewExpr|RestoreViewExpr|
-    ResetViewExpr|ReadVariableExpr|PureFunctionExpr|PureFunctionParameterExpr|PipeBindingExpr|
-    PipeBindingVariadicExpr|SafePropertyReadExpr|SafeKeyedReadExpr|SafeInvokeFunctionExpr|EmptyExpr|
-    AssignTemporaryExpr|ReadTemporaryExpr|SlotLiteralExpr|ConditionalCaseExpr|ConstCollectedExpr;
+export type Expression = LexicalReadExpr|ReferenceExpr|ContextExpr|NextContextExpr|
+    GetCurrentViewExpr|RestoreViewExpr|ResetViewExpr|ReadVariableExpr|PureFunctionExpr|
+    PureFunctionParameterExpr|PipeBindingExpr|PipeBindingVariadicExpr|SafePropertyReadExpr|
+    SafeKeyedReadExpr|SafeInvokeFunctionExpr|EmptyExpr|AssignTemporaryExpr|ReadTemporaryExpr|
+    SlotLiteralExpr|ConditionalCaseExpr|ConstCollectedExpr|TwoWayBindingSetExpr;
 
 /**
  * Transformer type which converts expressions into general `o.Expression`s (which may be an
@@ -69,7 +69,7 @@ export class LexicalReadExpr extends ExpressionBase {
 
   override visitExpression(visitor: o.ExpressionVisitor, context: any): void {}
 
-  override isEquivalent(other: LexicalReadExpr): boolean {
+  override isEquivalent(other: LexicalReadExpr): boolean {
     // We assume that the lexical reads are in the same context, which must be true for parent
     // expressions to be equivalent.
     // TODO: is this generally safe?
@@ -305,6 +305,36 @@ export class ResetViewExpr extends ExpressionBase {
   }
 }
 
+export class TwoWayBindingSetExpr extends ExpressionBase {
+  override readonly kind = ExpressionKind.TwoWayBindingSet;
+
+  constructor(public target: o.Expression, public value: o.Expression) {
+    super();
+  }
+
+  override visitExpression(visitor: o.ExpressionVisitor, context: any): void {
+    this.target.visitExpression(visitor, context);
+    this.value.visitExpression(visitor, context);
+  }
+
+  override isEquivalent(other: TwoWayBindingSetExpr): boolean {
+    return this.target.isEquivalent(other.target) && this.value.isEquivalent(other.value);
+  }
+
+  override isConstant(): boolean {
+    return false;
+  }
+
+  override transformInternalExpressions(transform: ExpressionTransform, flags: VisitorContextFlag) {
+    this.target = transformExpressionsInExpression(this.target, transform, flags);
+    this.value = transformExpressionsInExpression(this.value, transform, flags);
+  }
+
+  override clone(): TwoWayBindingSetExpr {
+    return new TwoWayBindingSetExpr(this.target, this.value);
+  }
+}
+
 /**
  * Read of a variable declared as an `ir.VariableOp` and referenced through its `ir.XrefId`.
  */
@@ -534,7 +564,7 @@ export class SafePropertyReadExpr extends ExpressionBase {
     this.receiver.visitExpression(visitor, context);
   }
 
-  override isEquivalent(): boolean {
+  override isEquivalent(): boolean {
     return false;
   }
 
@@ -565,7 +595,7 @@ export class SafeKeyedReadExpr extends ExpressionBase {
     this.index.visitExpression(visitor, context);
   }
 
-  override isEquivalent(): boolean {
+  override isEquivalent(): boolean {
     return false;
   }
 
@@ -598,7 +628,7 @@ export class SafeInvokeFunctionExpr extends ExpressionBase {
     }
   }
 
-  override isEquivalent(): boolean {
+  override isEquivalent(): boolean {
     return false;
   }
 
@@ -631,7 +661,7 @@ export class SafeTernaryExpr extends ExpressionBase {
     this.expr.visitExpression(visitor, context);
   }
 
-  override isEquivalent(): boolean {
+  override isEquivalent(): boolean {
     return false;
   }
 
@@ -683,7 +713,7 @@ export class AssignTemporaryExpr extends ExpressionBase {
     this.expr.visitExpression(visitor, context);
   }
 
-  override isEquivalent(): boolean {
+  override isEquivalent(): boolean {
     return false;
   }
 
@@ -714,7 +744,7 @@ export class ReadTemporaryExpr extends ExpressionBase {
 
   override visitExpression(visitor: o.ExpressionVisitor, context: any): any {}
 
-  override isEquivalent(): boolean {
+  override isEquivalent(): boolean {
     return this.xref === this.xref;
   }
 
@@ -884,6 +914,11 @@ export function transformExpressionsInOp(
       op.sanitizer =
           op.sanitizer && transformExpressionsInExpression(op.sanitizer, transform, flags);
       break;
+    case OpKind.TwoWayProperty:
+      op.expression = transformExpressionsInExpression(op.expression, transform, flags);
+      op.sanitizer =
+          op.sanitizer && transformExpressionsInExpression(op.sanitizer, transform, flags);
+      break;
     case OpKind.I18nExpression:
       op.expression = transformExpressionsInExpression(op.expression, transform, flags);
       break;
@@ -912,6 +947,7 @@ export function transformExpressionsInOp(
       }
       break;
     case OpKind.Listener:
+    case OpKind.TwoWayListener:
       for (const innerOp of op.handlerOps) {
         transformExpressionsInOp(innerOp, transform, flags | VisitorContextFlag.InChildOperation);
       }
diff --git a/packages/compiler/src/template/pipeline/ir/src/ops/create.ts b/packages/compiler/src/template/pipeline/ir/src/ops/create.ts
index ef411fe277f8..54d7aaa43f44 100644
--- a/packages/compiler/src/template/pipeline/ir/src/ops/create.ts
+++ b/packages/compiler/src/template/pipeline/ir/src/ops/create.ts
@@ -23,11 +23,12 @@ import type {UpdateOp} from './update';
 /**
  * An operation usable on the creation side of the IR.
  */
-export type CreateOp = ListEndOp<CreateOp>|StatementOp<CreateOp>|ElementOp|ElementStartOp|
-    ElementEndOp|ContainerOp|ContainerStartOp|ContainerEndOp|TemplateOp|EnableBindingsOp|
-    DisableBindingsOp|TextOp|ListenerOp|PipeOp|VariableOp<CreateOp>|NamespaceOp|ProjectionDefOp|
-    ProjectionOp|ExtractedAttributeOp|DeferOp|DeferOnOp|RepeaterCreateOp|I18nMessageOp|I18nOp|
-    I18nStartOp|I18nEndOp|IcuStartOp|IcuEndOp|IcuPlaceholderOp|I18nContextOp|I18nAttributesOp;
+export type CreateOp =
+    ListEndOp<CreateOp>|StatementOp<CreateOp>|ElementOp|ElementStartOp|ElementEndOp|ContainerOp|
+    ContainerStartOp|ContainerEndOp|TemplateOp|EnableBindingsOp|DisableBindingsOp|TextOp|ListenerOp|
+    TwoWayListenerOp|PipeOp|VariableOp<CreateOp>|NamespaceOp|ProjectionDefOp|ProjectionOp|
+    ExtractedAttributeOp|DeferOp|DeferOnOp|RepeaterCreateOp|I18nMessageOp|I18nOp|I18nStartOp|
+    I18nEndOp|IcuStartOp|IcuEndOp|IcuPlaceholderOp|I18nContextOp|I18nAttributesOp;
 
 /**
  * An operation representing the creation of an element or container.
@@ -577,6 +578,60 @@ export function createListenerOp(
   };
 }
 
+/**
+ * Logical operation representing the event side of a two-way binding on an element
+ * in the creation IR.
+ */
+export interface TwoWayListenerOp extends Op<CreateOp> {
+  kind: OpKind.TwoWayListener;
+
+  target: XrefId;
+  targetSlot: SlotHandle;
+
+  /**
+   * Name of the event which is being listened to.
+   */
+  name: string;
+
+  /**
+   * Tag name of the element on which this listener is placed.
+   */
+  tag: string|null;
+
+  /**
+   * A list of `UpdateOp`s representing the body of the event listener.
+   */
+  handlerOps: OpList<UpdateOp>;
+
+  /**
+   * Name of the function
+   */
+  handlerFnName: string|null;
+
+  sourceSpan: ParseSourceSpan;
+}
+
+/**
+ * Create a `TwoWayListenerOp`.
+ */
+export function createTwoWayListenerOp(
+    target: XrefId, targetSlot: SlotHandle, name: string, tag: string|null,
+    handlerOps: Array<UpdateOp>, sourceSpan: ParseSourceSpan): TwoWayListenerOp {
+  const handlerList = new OpList<UpdateOp>();
+  handlerList.push(handlerOps);
+  return {
+    kind: OpKind.TwoWayListener,
+    target,
+    targetSlot,
+    tag,
+    name,
+    handlerOps: handlerList,
+    handlerFnName: null,
+    sourceSpan,
+    ...NEW_OP,
+  };
+}
+
 export interface PipeOp extends Op<CreateOp>, ConsumesSlotOpTrait {
   kind: OpKind.Pipe;
   xref: XrefId;
diff --git a/packages/compiler/src/template/pipeline/ir/src/ops/update.ts b/packages/compiler/src/template/pipeline/ir/src/ops/update.ts
index 4e06a2cf5cd9..a777f732b3c3 100644
--- a/packages/compiler/src/template/pipeline/ir/src/ops/update.ts
+++ b/packages/compiler/src/template/pipeline/ir/src/ops/update.ts
@@ -22,7 +22,8 @@ import {ListEndOp, NEW_OP, StatementOp, VariableOp} from './shared';
 /**
  * An operation usable on the update side of the IR.
  */
-export type UpdateOp = ListEndOp<UpdateOp>|StatementOp<UpdateOp>|PropertyOp|AttributeOp|StylePropOp|
+export type UpdateOp =
+    ListEndOp<UpdateOp>|StatementOp<UpdateOp>|PropertyOp|TwoWayPropertyOp|AttributeOp|StylePropOp|
     ClassPropOp|StyleMapOp|ClassMapOp|InterpolateTextOp|AdvanceOp|VariableOp<UpdateOp>|BindingOp|
     HostPropertyOp|ConditionalOp|I18nExpressionOp|I18nApplyOp|RepeaterOp|DeferWhenOp;
 
@@ -239,6 +240,78 @@ export function createPropertyOp(
   };
 }
 
+/**
+ * A logical operation representing the property binding side of a two-way binding in the update IR.
+ */
+export interface TwoWayPropertyOp extends Op<UpdateOp>, ConsumesVarsTrait,
+                                          DependsOnSlotContextOpTrait {
+  kind: OpKind.TwoWayProperty;
+
+  /**
+   * Reference to the element on which the property is bound.
+   */
+  target: XrefId;
+
+  /**
+   * Name of the property.
+   */
+  name: string;
+
+  /**
+   * Expression which is bound to the property.
+   */
+  expression: o.Expression;
+
+  /**
+   * The security context of the binding.
+   */
+  securityContext: SecurityContext|SecurityContext[];
+
+  /**
+   * The sanitizer for this property.
+   */
+  sanitizer: o.Expression|null;
+
+  isStructuralTemplateAttribute: boolean;
+
+  /**
+   * The kind of template targeted by the binding, or null if this binding does not target a
+   * template.
+   */
+  templateKind: TemplateKind|null;
+
+  i18nContext: XrefId|null;
+  i18nMessage: i18n.Message|null;
+
+  sourceSpan: ParseSourceSpan;
+}
+
+/**
+ * Create a `TwoWayPropertyOp`.
+ */
+export function createTwoWayPropertyOp(
+    target: XrefId, name: string, expression: o.Expression,
+    securityContext: SecurityContext|SecurityContext[], isStructuralTemplateAttribute: boolean,
+    templateKind: TemplateKind|null, i18nContext: XrefId|null, i18nMessage: i18n.Message|null,
+    sourceSpan: ParseSourceSpan): TwoWayPropertyOp {
+  return {
+    kind: OpKind.TwoWayProperty,
+    target,
+    name,
+    expression,
+    securityContext,
+    sanitizer: null,
+    isStructuralTemplateAttribute,
+    templateKind,
+    i18nContext,
+    i18nMessage,
+    sourceSpan,
+    ...TRAIT_DEPENDS_ON_SLOT_CONTEXT,
+    ...TRAIT_CONSUMES_VARS,
+    ...NEW_OP,
+  };
+}
+
 /**
  * A logical operation representing binding to a style property in the update IR.
  */
diff --git a/packages/compiler/src/template/pipeline/src/compilation.ts b/packages/compiler/src/template/pipeline/src/compilation.ts
index aa932d7319d1..ab76bfe9b5e9 100644
--- a/packages/compiler/src/template/pipeline/src/compilation.ts
+++ b/packages/compiler/src/template/pipeline/src/compilation.ts
@@ -179,7 +179,7 @@ export abstract class CompilationUnit {
   * ops(): Generator<ir.CreateOp|ir.UpdateOp> {
     for (const op of this.create) {
       yield op;
-      if (op.kind === ir.OpKind.Listener) {
+      if (op.kind === ir.OpKind.Listener || op.kind === ir.OpKind.TwoWayListener) {
         for (const listenerOp of op.handlerOps) {
           yield listenerOp;
         }
diff --git a/packages/compiler/src/template/pipeline/src/emit.ts b/packages/compiler/src/template/pipeline/src/emit.ts
index 59a2f2518041..6dcb863864d2 100644
--- a/packages/compiler/src/template/pipeline/src/emit.ts
+++ b/packages/compiler/src/template/pipeline/src/emit.ts
@@ -63,6 +63,7 @@ import {resolveI18nElementPlaceholders} from './phases/resolve_i18n_element_plac
 import {resolveI18nExpressionPlaceholders} from './phases/resolve_i18n_expression_placeholders';
 import {resolveNames} from './phases/resolve_names';
 import {resolveSanitizers} from './phases/resolve_sanitizers';
+import {transformTwoWayBindingSet} from './phases/transform_two_way_binding_set';
 import {saveAndRestoreView} from './phases/save_restore_view';
 import {allocateSlots} from './phases/slot_allocation';
 import {specializeStyleBindings} from './phases/style_binding_specialization';
@@ -118,6 +119,7 @@ const phases: Phase[] = [
   {kind: Kind.Tmpl, fn: generateTrackVariables},
   {kind: Kind.Both, fn: resolveNames},
   {kind: Kind.Tmpl, fn: resolveDeferTargetNames},
+  {kind: Kind.Tmpl, fn: transformTwoWayBindingSet},
   {kind: Kind.Tmpl, fn: optimizeTrackFns},
   {kind: Kind.Both, fn: resolveContexts},
   {kind: Kind.Both, fn: resolveSanitizers},
diff --git a/packages/compiler/src/template/pipeline/src/ingest.ts b/packages/compiler/src/template/pipeline/src/ingest.ts
index d92b1aef90d7..634cac7e3f1a 100644
--- a/packages/compiler/src/template/pipeline/src/ingest.ts
+++ b/packages/compiler/src/template/pipeline/src/ingest.ts
@@ -846,8 +846,7 @@ function convertAstWithInterpolation(
 // TODO: Can we populate Template binding kinds in ingest?
 const BINDING_KINDS = new Map<e.BindingType, ir.BindingKind>([
   [e.BindingType.Property, ir.BindingKind.Property],
-  // TODO(crisbeto): we'll need a different BindingKind for two-way bindings.
-  [e.BindingType.TwoWay, ir.BindingKind.Property],
+  [e.BindingType.TwoWay, ir.BindingKind.TwoWayProperty],
   [e.BindingType.Attribute, ir.BindingKind.Attribute],
   [e.BindingType.Class, ir.BindingKind.ClassName],
   [e.BindingType.Style, ir.BindingKind.StyleProperty],
@@ -923,10 +922,17 @@ function ingestElementBindings(
       throw Error('Animation listener should have a phase');
     }
 
-    unit.create.push(ir.createListenerOp(
-        op.xref, op.handle, output.name, op.tag,
-        makeListenerHandlerOps(unit, output.handler, output.handlerSpan), output.phase,
-        output.target, false, output.sourceSpan));
+    if (output.type === e.ParsedEventType.TwoWay) {
+      unit.create.push(ir.createTwoWayListenerOp(
+          op.xref, op.handle, output.name, op.tag,
+          makeTwoWayListenerHandlerOps(unit, output.handler, output.handlerSpan),
+          output.sourceSpan));
+    } else {
+      unit.create.push(ir.createListenerOp(
+          op.xref, op.handle, output.name, op.tag,
+          makeListenerHandlerOps(unit, output.handler, output.handlerSpan), output.phase,
+          output.target, false, output.sourceSpan));
+    }
   }
 
   // If any of the bindings on this element have an i18n message, then an i18n attrs configuration
@@ -984,10 +990,17 @@ function ingestTemplateBindings(
     }
 
     if (templateKind === ir.TemplateKind.NgTemplate) {
-      unit.create.push(ir.createListenerOp(
-          op.xref, op.handle, output.name, op.tag,
-          makeListenerHandlerOps(unit, output.handler, output.handlerSpan), output.phase,
-          output.target, false, output.sourceSpan));
+      if (output.type === e.ParsedEventType.TwoWay) {
+        unit.create.push(ir.createTwoWayListenerOp(
+            op.xref, op.handle, output.name, op.tag,
+            makeTwoWayListenerHandlerOps(unit, output.handler, output.handlerSpan),
+            output.sourceSpan));
+      } else {
+        unit.create.push(ir.createListenerOp(
+            op.xref, op.handle, output.name, op.tag,
+            makeListenerHandlerOps(unit, output.handler, output.handlerSpan), output.phase,
+            output.target, false, output.sourceSpan));
+      }
     }
     if (templateKind === ir.TemplateKind.Structural &&
         output.type !== e.ParsedEventType.Animation) {
@@ -1043,15 +1056,22 @@ function createTemplateBinding(
   // If this is a structural template, then several kinds of bindings should not result in an
   // update instruction.
   if (templateKind === ir.TemplateKind.Structural) {
-    if (!isStructuralTemplateAttribute &&
-        (type === e.BindingType.Property || type === e.BindingType.TwoWay ||
-         type === e.BindingType.Class || type === e.BindingType.Style)) {
-      // Because this binding doesn't really target the ng-template, it must be a binding on an
-      // inner node of a structural template. We can't skip it entirely, because we still need it on
-      // the ng-template's consts (e.g. for the purposes of directive matching). However, we should
-      // not generate an update instruction for it.
-      return ir.createExtractedAttributeOp(
-          xref, ir.BindingKind.Property, null, name, null, null, i18nMessage, securityContext);
+    if (!isStructuralTemplateAttribute) {
+      switch (type) {
+        case e.BindingType.Property:
+        case e.BindingType.Class:
+        case e.BindingType.Style:
+          // Because this binding doesn't really target the ng-template, it must be a binding on an
+          // inner node of a structural template. We can't skip it entirely, because we still need
+          // it on the ng-template's consts (e.g. for the purposes of directive matching). However,
+          // we should not generate an update instruction for it.
+          return ir.createExtractedAttributeOp(
+              xref, ir.BindingKind.Property, null, name, null, null, i18nMessage, securityContext);
+        case e.BindingType.TwoWay:
+          return ir.createExtractedAttributeOp(
+              xref, ir.BindingKind.TwoWayProperty, null, name, null, null, i18nMessage,
+              securityContext);
+      }
     }
 
     if (!isTextBinding && (type === e.BindingType.Attribute || type === e.BindingType.Animation)) {
@@ -1110,6 +1130,29 @@ function makeListenerHandlerOps(
   return handlerOps;
 }
 
+function makeTwoWayListenerHandlerOps(
+    unit: CompilationUnit, handler: e.AST, handlerSpan: ParseSourceSpan): ir.UpdateOp[] {
+  handler = astOf(handler);
+  const handlerOps = new Array<ir.UpdateOp>();
+
+  if (handler instanceof e.Chain) {
+    if (handler.expressions.length === 1) {
+      handler = handler.expressions[0];
+    } else {
+      // This is validated during parsing already, but we do it here just in case.
+      throw new Error('Expected two-way listener to have a single expression.');
+    }
+  }
+
+  const handlerExpr = convertAst(handler, unit.job, handlerSpan);
+  const eventReference = new ir.LexicalReadExpr('$event');
+  const twoWaySetExpr = new ir.TwoWayBindingSetExpr(handlerExpr, eventReference);
+
+  handlerOps.push(ir.createStatementOp<ir.UpdateOp>(new o.ExpressionStatement(twoWaySetExpr)));
+  handlerOps.push(ir.createStatementOp(new o.ReturnStatement(eventReference)));
+  return handlerOps;
+}
+
 function astOf(ast: e.AST|e.ASTWithSource): e.AST {
   return ast instanceof e.ASTWithSource ? ast.ast : ast;
 }
diff --git a/packages/compiler/src/template/pipeline/src/instruction.ts b/packages/compiler/src/template/pipeline/src/instruction.ts
index 5026a6e0fd63..311b41eedb6e 100644
--- a/packages/compiler/src/template/pipeline/src/instruction.ts
+++ b/packages/compiler/src/template/pipeline/src/instruction.ts
@@ -112,6 +112,15 @@ export function listener(
       syntheticHost ? Identifiers.syntheticHostListener : Identifiers.listener, args, sourceSpan);
 }
 
+export function twoWayBindingSet(target: o.Expression, value: o.Expression): o.Expression {
+  return o.importExpr(Identifiers.twoWayBindingSet).callFn([target, value]);
+}
+
+export function twoWayListener(
+    name: string, handlerFn: o.Expression, sourceSpan: ParseSourceSpan): ir.CreateOp {
+  return call(Identifiers.twoWayListener, [o.literal(name), handlerFn], sourceSpan);
+}
+
 export function pipe(slot: number, name: string): ir.CreateOp {
   return call(
       Identifiers.pipe,
@@ -325,6 +334,16 @@ export function property(
   return call(Identifiers.property, args, sourceSpan);
 }
 
+export function twoWayProperty(
+    name: string, expression: o.Expression, sanitizer: o.Expression|null,
+    sourceSpan: ParseSourceSpan): ir.UpdateOp {
+  const args = [o.literal(name), expression];
+  if (sanitizer !== null) {
+    args.push(sanitizer);
+  }
+  return call(Identifiers.twoWayProperty, args, sourceSpan);
+}
+
 export function attribute(
     name: string, expression: o.Expression, sanitizer: o.Expression|null,
     namespace: string|null): ir.UpdateOp {
diff --git a/packages/compiler/src/template/pipeline/src/phases/attribute_extraction.ts b/packages/compiler/src/template/pipeline/src/phases/attribute_extraction.ts
index b7ad93ac3172..987e53cc2d98 100644
--- a/packages/compiler/src/template/pipeline/src/phases/attribute_extraction.ts
+++ b/packages/compiler/src/template/pipeline/src/phases/attribute_extraction.ts
@@ -46,6 +46,14 @@ export function extractAttributes(job: CompilationJob): void {
                 lookupElement(elements, op.target));
           }
           break;
+        case ir.OpKind.TwoWayProperty:
+          ir.OpList.insertBefore<ir.CreateOp>(
+              ir.createExtractedAttributeOp(
+                  op.target, ir.BindingKind.TwoWayProperty, null, op.name, /* expression */ null,
+                  /* i18nContext */ null,
+                  /* i18nMessage */ null, op.securityContext),
+              lookupElement(elements, op.target));
+          break;
         case ir.OpKind.StyleProp:
         case ir.OpKind.ClassProp:
           // TODO: Can style or class bindings be i18n attributes?
@@ -84,6 +92,17 @@ export function extractAttributes(job: CompilationJob): void {
             }
           }
           break;
+        case ir.OpKind.TwoWayListener:
+          // Two-way listeners aren't supported in host bindings.
+          if (job.kind !== CompilationJobKind.Host) {
+            const extractedAttributeOp = ir.createExtractedAttributeOp(
+                op.target, ir.BindingKind.Property, null, op.name, /* expression */ null,
+                /* i18nContext */ null,
+                /* i18nMessage */ null, SecurityContext.NONE);
+            ir.OpList.insertBefore<ir.CreateOp>(
+                extractedAttributeOp, lookupElement(elements, op.target));
+          }
+          break;
       }
     }
   }
diff --git a/packages/compiler/src/template/pipeline/src/phases/binding_specialization.ts b/packages/compiler/src/template/pipeline/src/phases/binding_specialization.ts
index 1f8358e23a7e..18df18f6e621 100644
--- a/packages/compiler/src/template/pipeline/src/phases/binding_specialization.ts
+++ b/packages/compiler/src/template/pipeline/src/phases/binding_specialization.ts
@@ -7,6 +7,7 @@
  */
 
 import {splitNsName} from '../../../../ml_parser/tags';
+import * as o from '../../../../output/output_ast';
 import * as ir from '../../ir';
 import {CompilationJob, CompilationJobKind} from '../compilation';
 
@@ -72,6 +73,22 @@ export function specializeBindings(job: CompilationJob): void {
           }
 
           break;
+        case ir.BindingKind.TwoWayProperty:
+          if (!(op.expression instanceof o.Expression)) {
+            // We shouldn't be able to hit this code path since interpolations in two-way bindings
+            // result in a parser error. We assert here so that downstream we can assume that
+            // the value is always an expression.
+            throw new Error(
+                `Expected value of two-way property binding "${op.name}" to be an expression`);
+          }
+
+          ir.OpList.replace<ir.UpdateOp>(
+              op,
+              ir.createTwoWayPropertyOp(
+                  op.target, op.name, op.expression, op.securityContext,
+                  op.isStructuralTemplateAttribute, op.templateKind, op.i18nContext, op.i18nMessage,
+                  op.sourceSpan));
+          break;
         case ir.BindingKind.I18n:
         case ir.BindingKind.ClassName:
         case ir.BindingKind.StyleProperty:
diff --git a/packages/compiler/src/template/pipeline/src/phases/chaining.ts b/packages/compiler/src/template/pipeline/src/phases/chaining.ts
index b5c32261f376..f2ba770aec83 100644
--- a/packages/compiler/src/template/pipeline/src/phases/chaining.ts
+++ b/packages/compiler/src/template/pipeline/src/phases/chaining.ts
@@ -38,6 +38,8 @@ const CHAINABLE = new Set([
   R3.syntheticHostListener,
   R3.syntheticHostProperty,
   R3.templateCreate,
+  R3.twoWayProperty,
+  R3.twoWayListener,
 ]);
 
 /**
diff --git a/packages/compiler/src/template/pipeline/src/phases/const_collection.ts b/packages/compiler/src/template/pipeline/src/phases/const_collection.ts
index b07758243142..f8b3055ce115 100644
--- a/packages/compiler/src/template/pipeline/src/phases/const_collection.ts
+++ b/packages/compiler/src/template/pipeline/src/phases/const_collection.ts
@@ -98,7 +98,12 @@ const FLYWEIGHT_ARRAY: ReadonlyArray<o.Expression> = Object.freeze<o.Expression[
  */
 class ElementAttributes {
   private known = new Map<ir.BindingKind, Set<string>>();
-  private byKind = new Map<ir.BindingKind, o.Expression[]>;
+  private byKind = new Map<
+      // Property bindings are excluded here, because they need to be tracked in the same
+      // array to maintain their order. They're tracked in the `propertyBindings` array.
+      Exclude<ir.BindingKind, ir.BindingKind.Property|ir.BindingKind.TwoWayProperty>,
+      o.Expression[]>;
+  private propertyBindings: o.Expression[]|null = null;
 
   projectAs: string|null = null;
 
@@ -115,7 +120,7 @@ class ElementAttributes {
   }
 
   get bindings(): ReadonlyArray<o.Expression> {
-    return this.byKind.get(ir.BindingKind.Property) ?? FLYWEIGHT_ARRAY;
+    return this.propertyBindings ?? FLYWEIGHT_ARRAY;
   }
 
   get template(): ReadonlyArray<o.Expression> {
@@ -128,7 +133,7 @@ class ElementAttributes {
 
   constructor(private compatibility: ir.CompatibilityMode) {}
 
-  isKnown(kind: ir.BindingKind, name: string, value: o.Expression|null) {
+  private isKnown(kind: ir.BindingKind, name: string, value: o.Expression|null) {
     const nameToValue = this.known.get(kind) ?? new Set<string>();
     this.known.set(kind, nameToValue);
     if (nameToValue.has(name)) {
@@ -182,10 +187,15 @@ class ElementAttributes {
   }
 
   private arrayFor(kind: ir.BindingKind): o.Expression[] {
-    if (!this.byKind.has(kind)) {
-      this.byKind.set(kind, []);
+    if (kind === ir.BindingKind.Property || kind === ir.BindingKind.TwoWayProperty) {
+      this.propertyBindings ??= [];
+      return this.propertyBindings;
+    } else {
+      if (!this.byKind.has(kind)) {
+        this.byKind.set(kind, []);
+      }
+      return this.byKind.get(kind)!;
     }
-    return this.byKind.get(kind)!;
   }
 }
 
diff --git a/packages/compiler/src/template/pipeline/src/phases/generate_variables.ts b/packages/compiler/src/template/pipeline/src/phases/generate_variables.ts
index ee795f73e32f..86b87a696f4b 100644
--- a/packages/compiler/src/template/pipeline/src/phases/generate_variables.ts
+++ b/packages/compiler/src/template/pipeline/src/phases/generate_variables.ts
@@ -54,6 +54,7 @@ function recursivelyProcessView(view: ViewCompilationUnit, parentScope: Scope|nu
         }
         break;
       case ir.OpKind.Listener:
+      case ir.OpKind.TwoWayListener:
         // Prepend variables to listener handler functions.
         op.handlerOps.prepend(generateVariablesInScopeForView(view, scope));
         break;
diff --git a/packages/compiler/src/template/pipeline/src/phases/naming.ts b/packages/compiler/src/template/pipeline/src/phases/naming.ts
index 6b06b3c0a3bc..0cedd032fa1e 100644
--- a/packages/compiler/src/template/pipeline/src/phases/naming.ts
+++ b/packages/compiler/src/template/pipeline/src/phases/naming.ts
@@ -61,6 +61,16 @@ function addNamesToView(
         }
         op.handlerFnName = sanitizeIdentifier(op.handlerFnName);
         break;
+      case ir.OpKind.TwoWayListener:
+        if (op.handlerFnName !== null) {
+          break;
+        }
+        if (op.targetSlot.slot === null) {
+          throw new Error(`Expected a slot to be assigned`);
+        }
+        op.handlerFnName = sanitizeIdentifier(`${unit.fnName}_${op.tag!.replace('-', '_')}_${
+            op.name}_${op.targetSlot.slot}_listener`);
+        break;
       case ir.OpKind.Variable:
         varNames.set(op.xref, getVariableName(unit, op.variable, state));
         break;
diff --git a/packages/compiler/src/template/pipeline/src/phases/next_context_merging.ts b/packages/compiler/src/template/pipeline/src/phases/next_context_merging.ts
index fc8614104fc6..91d3fd6a260e 100644
--- a/packages/compiler/src/template/pipeline/src/phases/next_context_merging.ts
+++ b/packages/compiler/src/template/pipeline/src/phases/next_context_merging.ts
@@ -26,7 +26,7 @@ import type {CompilationJob} from '../compilation';
 export function mergeNextContextExpressions(job: CompilationJob): void {
   for (const unit of job.units) {
     for (const op of unit.create) {
-      if (op.kind === ir.OpKind.Listener) {
+      if (op.kind === ir.OpKind.Listener || op.kind === ir.OpKind.TwoWayListener) {
         mergeNextContextsInOps(op.handlerOps);
       }
     }
diff --git a/packages/compiler/src/template/pipeline/src/phases/ordering.ts b/packages/compiler/src/template/pipeline/src/phases/ordering.ts
index 5dac24695059..fe669df8b642 100644
--- a/packages/compiler/src/template/pipeline/src/phases/ordering.ts
+++ b/packages/compiler/src/template/pipeline/src/phases/ordering.ts
@@ -21,6 +21,16 @@ function kindWithInterpolationTest(
   };
 }
 
+function basicListenerKindTest(op: ir.CreateOp): boolean {
+  return (op.kind === ir.OpKind.Listener && !(op.hostListener && op.isAnimationListener)) ||
+      op.kind === ir.OpKind.TwoWayListener;
+}
+
+function nonInterpolationPropertyKindTest(op: ir.UpdateOp): boolean {
+  return (op.kind === ir.OpKind.Property || op.kind === ir.OpKind.TwoWayProperty) &&
+      !(op.expression instanceof ir.Interpolation);
+}
+
 interface Rule<T extends ir.CreateOp|ir.UpdateOp> {
   test: (op: T) => boolean;
   transform?: (ops: Array<T>) => Array<T>;
@@ -33,7 +43,7 @@ interface Rule<T extends ir.CreateOp|ir.UpdateOp> {
  */
 const CREATE_ORDERING: Array<Rule<ir.CreateOp>> = [
   {test: op => op.kind === ir.OpKind.Listener && op.hostListener && op.isAnimationListener},
-  {test: op => op.kind === ir.OpKind.Listener && !(op.hostListener && op.isAnimationListener)},
+  {test: basicListenerKindTest},
 ];
 
 /**
@@ -47,7 +57,7 @@ const UPDATE_ORDERING: Array<Rule<ir.UpdateOp>> = [
   {test: kindTest(ir.OpKind.ClassProp)},
   {test: kindWithInterpolationTest(ir.OpKind.Attribute, true)},
   {test: kindWithInterpolationTest(ir.OpKind.Property, true)},
-  {test: kindWithInterpolationTest(ir.OpKind.Property, false)},
+  {test: nonInterpolationPropertyKindTest},
   {test: kindWithInterpolationTest(ir.OpKind.Attribute, false)},
 ];
 
@@ -68,8 +78,9 @@ const UPDATE_HOST_ORDERING: Array<Rule<ir.UpdateOp>> = [
  * The set of all op kinds we handle in the reordering phase.
  */
 const handledOpKinds = new Set([
-  ir.OpKind.Listener, ir.OpKind.StyleMap, ir.OpKind.ClassMap, ir.OpKind.StyleProp,
-  ir.OpKind.ClassProp, ir.OpKind.Property, ir.OpKind.HostProperty, ir.OpKind.Attribute
+  ir.OpKind.Listener, ir.OpKind.TwoWayListener, ir.OpKind.StyleMap, ir.OpKind.ClassMap,
+  ir.OpKind.StyleProp, ir.OpKind.ClassProp, ir.OpKind.Property, ir.OpKind.TwoWayProperty,
+  ir.OpKind.HostProperty, ir.OpKind.Attribute
 ]);
 
 /**
diff --git a/packages/compiler/src/template/pipeline/src/phases/reify.ts b/packages/compiler/src/template/pipeline/src/phases/reify.ts
index 0d556b084d38..a3fc16353dd0 100644
--- a/packages/compiler/src/template/pipeline/src/phases/reify.ts
+++ b/packages/compiler/src/template/pipeline/src/phases/reify.ts
@@ -164,6 +164,13 @@ function reifyCreateOperations(unit: CompilationUnit, ops: ir.OpList<ir.CreateOp
                 op.name, listenerFn, eventTargetResolver, op.hostListener && op.isAnimationListener,
                 op.sourceSpan));
         break;
+      case ir.OpKind.TwoWayListener:
+        ir.OpList.replace(
+            op,
+            ng.twoWayListener(
+                op.name, reifyListenerHandler(unit, op.handlerFnName!, op.handlerOps, true),
+                op.sourceSpan));
+        break;
       case ir.OpKind.Variable:
         if (op.variable.name === null) {
           throw new Error(`AssertionError: unnamed variable ${op.xref}`);
@@ -300,6 +307,10 @@ function reifyUpdateOperations(_unit: CompilationUnit, ops: ir.OpList<ir.UpdateO
           ir.OpList.replace(op, ng.property(op.name, op.expression, op.sanitizer, op.sourceSpan));
         }
         break;
+      case ir.OpKind.TwoWayProperty:
+        ir.OpList.replace(
+            op, ng.twoWayProperty(op.name, op.expression, op.sanitizer, op.sourceSpan));
+        break;
       case ir.OpKind.StyleProp:
         if (op.expression instanceof ir.Interpolation) {
           ir.OpList.replace(
@@ -416,6 +427,8 @@ function reifyIrExpression(expr: o.Expression): o.Expression {
       return ng.reference(expr.targetSlot.slot! + 1 + expr.offset);
     case ir.ExpressionKind.LexicalRead:
       throw new Error(`AssertionError: unresolved LexicalRead of ${expr.name}`);
+    case ir.ExpressionKind.TwoWayBindingSet:
+      throw new Error(`AssertionError: unresolved TwoWayBindingSet`);
     case ir.ExpressionKind.RestoreView:
       if (typeof expr.view === 'number') {
         throw new Error(`AssertionError: unresolved RestoreView`);
diff --git a/packages/compiler/src/template/pipeline/src/phases/resolve_contexts.ts b/packages/compiler/src/template/pipeline/src/phases/resolve_contexts.ts
index d0a6470fcb64..46499e015c67 100644
--- a/packages/compiler/src/template/pipeline/src/phases/resolve_contexts.ts
+++ b/packages/compiler/src/template/pipeline/src/phases/resolve_contexts.ts
@@ -40,6 +40,7 @@ function processLexicalScope(view: CompilationUnit, ops: ir.OpList<ir.CreateOp|i
         }
         break;
       case ir.OpKind.Listener:
+      case ir.OpKind.TwoWayListener:
         processLexicalScope(view, op.handlerOps);
         break;
     }
diff --git a/packages/compiler/src/template/pipeline/src/phases/resolve_dollar_event.ts b/packages/compiler/src/template/pipeline/src/phases/resolve_dollar_event.ts
index 497e6697a7ef..d400788ebaac 100644
--- a/packages/compiler/src/template/pipeline/src/phases/resolve_dollar_event.ts
+++ b/packages/compiler/src/template/pipeline/src/phases/resolve_dollar_event.ts
@@ -24,10 +24,13 @@ export function resolveDollarEvent(job: CompilationJob): void {
 function transformDollarEvent(
     unit: CompilationUnit, ops: ir.OpList<ir.CreateOp>|ir.OpList<ir.UpdateOp>): void {
   for (const op of ops) {
-    if (op.kind === ir.OpKind.Listener) {
+    if (op.kind === ir.OpKind.Listener || op.kind === ir.OpKind.TwoWayListener) {
       ir.transformExpressionsInOp(op, (expr) => {
         if (expr instanceof ir.LexicalReadExpr && expr.name === '$event') {
-          op.consumesDollarEvent = true;
+          // Two-way listeners always consume `$event` so they omit this field.
+          if (op.kind === ir.OpKind.Listener) {
+            op.consumesDollarEvent = true;
+          }
           return new o.ReadVarExpr(expr.name);
         }
         return expr;
diff --git a/packages/compiler/src/template/pipeline/src/phases/resolve_names.ts b/packages/compiler/src/template/pipeline/src/phases/resolve_names.ts
index c1efb510c436..6d988c205321 100644
--- a/packages/compiler/src/template/pipeline/src/phases/resolve_names.ts
+++ b/packages/compiler/src/template/pipeline/src/phases/resolve_names.ts
@@ -60,6 +60,7 @@ function processLexicalScope(
         }
         break;
       case ir.OpKind.Listener:
+      case ir.OpKind.TwoWayListener:
         // Listener functions have separate variable declarations, so process them as a separate
         // lexical scope.
         processLexicalScope(unit, op.handlerOps, savedView);
@@ -71,7 +72,7 @@ function processLexicalScope(
   // scope. Also, look for `ir.RestoreViewExpr`s and match them with the snapshotted view context
   // variable.
   for (const op of ops) {
-    if (op.kind == ir.OpKind.Listener) {
+    if (op.kind == ir.OpKind.Listener || op.kind === ir.OpKind.TwoWayListener) {
       // Listeners were already processed above with their own scopes.
       continue;
     }
diff --git a/packages/compiler/src/template/pipeline/src/phases/save_restore_view.ts b/packages/compiler/src/template/pipeline/src/phases/save_restore_view.ts
index 9c67f1abef76..55f378544e5e 100644
--- a/packages/compiler/src/template/pipeline/src/phases/save_restore_view.ts
+++ b/packages/compiler/src/template/pipeline/src/phases/save_restore_view.ts
@@ -28,7 +28,7 @@ export function saveAndRestoreView(job: ComponentCompilationJob): void {
     ]);
 
     for (const op of unit.create) {
-      if (op.kind !== ir.OpKind.Listener) {
+      if (op.kind !== ir.OpKind.Listener && op.kind !== ir.OpKind.TwoWayListener) {
         continue;
       }
 
@@ -53,7 +53,8 @@ export function saveAndRestoreView(job: ComponentCompilationJob): void {
   }
 }
 
-function addSaveRestoreViewOperationToListener(unit: ViewCompilationUnit, op: ir.ListenerOp) {
+function addSaveRestoreViewOperationToListener(
+    unit: ViewCompilationUnit, op: ir.ListenerOp|ir.TwoWayListenerOp) {
   op.handlerOps.prepend([
     ir.createVariableOp<ir.UpdateOp>(
         unit.job.allocateXrefId(), {
diff --git a/packages/compiler/src/template/pipeline/src/phases/temporary_variables.ts b/packages/compiler/src/template/pipeline/src/phases/temporary_variables.ts
index e581c97a960b..a0605f62510b 100644
--- a/packages/compiler/src/template/pipeline/src/phases/temporary_variables.ts
+++ b/packages/compiler/src/template/pipeline/src/phases/temporary_variables.ts
@@ -78,7 +78,7 @@ function generateTemporaries(ops: ir.OpList<ir.CreateOp|ir.UpdateOp>):
             .map(name => ir.createStatementOp<ir.UpdateOp>(new o.DeclareVarStmt(name))));
     opCount++;
 
-    if (op.kind === ir.OpKind.Listener) {
+    if (op.kind === ir.OpKind.Listener || op.kind === ir.OpKind.TwoWayListener) {
       op.handlerOps.prepend(generateTemporaries(op.handlerOps) as ir.UpdateOp[]);
     }
   }
diff --git a/packages/compiler/src/template/pipeline/src/phases/transform_two_way_binding_set.ts b/packages/compiler/src/template/pipeline/src/phases/transform_two_way_binding_set.ts
new file mode 100644
index 000000000000..f94dbbe8642f
--- /dev/null
+++ b/packages/compiler/src/template/pipeline/src/phases/transform_two_way_binding_set.ts
@@ -0,0 +1,90 @@
+/**
+ * @license
+ * Copyright Google LLC All Rights Reserved.
+ *
+ * Use of this source code is governed by an MIT-style license that can be
+ * found in the LICENSE file at https://angular.io/license
+ */
+
+import * as o from '../../../../output/output_ast';
+import * as ir from '../../ir';
+import * as ng from '../instruction';
+import type {CompilationJob} from '../compilation';
+
+/**
+ * Transforms a `TwoWayBindingSet` expression into an expression that either
+ * sets a value through the `twoWayBindingSet` instruction or falls back to setting
+ * the value directly. E.g. the expression `TwoWayBindingSet(target, value)` becomes:
+ * `ng.twoWayBindingSet(target, value) || (target = value)`.
+ */
+export function transformTwoWayBindingSet(job: CompilationJob): void {
+  for (const unit of job.units) {
+    for (const op of unit.create) {
+      if (op.kind === ir.OpKind.TwoWayListener) {
+        ir.transformExpressionsInOp(op, (expr) => {
+          if (expr instanceof ir.TwoWayBindingSetExpr) {
+            return wrapAction(expr.target, expr.value);
+          }
+          return expr;
+        }, ir.VisitorContextFlag.InChildOperation);
+      }
+    }
+  }
+}
+
+function wrapSetOperation(target: o.ReadPropExpr|o.ReadKeyExpr, value: o.Expression): o.Expression {
+  return ng.twoWayBindingSet(target, value).or(target.set(value));
+}
+
+function isReadExpression(value: unknown): value is o.ReadPropExpr|o.ReadKeyExpr {
+  return value instanceof o.ReadPropExpr || value instanceof o.ReadKeyExpr;
+}
+
+function wrapAction(target: o.Expression, value: o.Expression): o.Expression {
+  // The only officially supported expressions inside of a two-way binding are read expressions.
+  if (isReadExpression(target)) {
+    return wrapSetOperation(target, value);
+  }
+
+  // However, historically the expression parser was handling two-way events by appending `=$event`
+  // to the raw string before attempting to parse it. This has led to bugs over the years (see
+  // #37809) and to unintentionally supporting unassignable events in the two-way binding. The
+  // logic below aims to emulate the old behavior while still supporting the new output format
+  // which uses `twoWayBindingSet`. Note that the generated code doesn't necessarily make sense
+  // based on what the user wrote, for example the event binding for `[(value)]="a ? b : c"`
+  // would produce `ctx.a ? ctx.b : ctx.c = $event`. We aim to reproduce what the parser used
+  // to generate before #54154.
+  if (target instanceof o.BinaryOperatorExpr && isReadExpression(target.rhs)) {
+    // `a && b` -> `ctx.a && twoWayBindingSet(ctx.b, $event) || (ctx.b = $event)`
+    return new o.BinaryOperatorExpr(
+        target.operator, target.lhs, wrapSetOperation(target.rhs, value));
+  }
+
+  // Note: this also supports nullish coalescing expressions which
+  // would've been downleveled to ternary expressions by this point.
+  if (target instanceof o.ConditionalExpr && isReadExpression(target.falseCase)) {
+    // `a ? b : c` -> `ctx.a ? ctx.b : twoWayBindingSet(ctx.c, $event) || (ctx.c = $event)`
+    return new o.ConditionalExpr(
+        target.condition, target.trueCase, wrapSetOperation(target.falseCase, value));
+  }
+
+  // `!!a` -> `twoWayBindingSet(ctx.a, $event) || (ctx.a = $event)`
+  // Note: previously we'd actually produce `!!(ctx.a = $event)`, but the wrapping
+  // node doesn't affect the result so we don't need to carry it over.
+  if (target instanceof o.NotExpr) {
+    let expr = target.condition;
+
+    while (true) {
+      if (expr instanceof o.NotExpr) {
+        expr = expr.condition;
+      } else {
+        if (isReadExpression(expr)) {
+          return wrapSetOperation(expr, value);
+        }
+        break;
+      }
+    }
+  }
+
+  throw new Error(`Unsupported expression in two-way action binding.`);
+}
diff --git a/packages/compiler/src/template/pipeline/src/phases/var_counting.ts b/packages/compiler/src/template/pipeline/src/phases/var_counting.ts
index 0487580216b3..09b06b33c8d6 100644
--- a/packages/compiler/src/template/pipeline/src/phases/var_counting.ts
+++ b/packages/compiler/src/template/pipeline/src/phases/var_counting.ts
@@ -112,6 +112,9 @@ function varsUsedByOp(op: (ir.CreateOp|ir.UpdateOp)&ir.ConsumesVarsTrait): numbe
         slots += op.expression.expressions.length;
       }
       return slots;
+    case ir.OpKind.TwoWayProperty:
+      // Two-way properties can only have expressions so they only need one variable slot.
+      return 1;
     case ir.OpKind.StyleProp:
     case ir.OpKind.ClassProp:
     case ir.OpKind.StyleMap:
diff --git a/packages/compiler/src/template/pipeline/src/phases/variable_optimization.ts b/packages/compiler/src/template/pipeline/src/phases/variable_optimization.ts
index 48e9b622d325..9255ef708759 100644
--- a/packages/compiler/src/template/pipeline/src/phases/variable_optimization.ts
+++ b/packages/compiler/src/template/pipeline/src/phases/variable_optimization.ts
@@ -34,7 +34,7 @@ export function optimizeVariables(job: CompilationJob): void {
     inlineAlwaysInlineVariables(unit.update);
 
     for (const op of unit.create) {
-      if (op.kind === ir.OpKind.Listener) {
+      if (op.kind === ir.OpKind.Listener || op.kind === ir.OpKind.TwoWayListener) {
         inlineAlwaysInlineVariables(op.handlerOps);
       }
     }
@@ -43,7 +43,7 @@ export function optimizeVariables(job: CompilationJob): void {
     optimizeVariablesInOpList(unit.update, job.compatibility);
 
     for (const op of unit.create) {
-      if (op.kind === ir.OpKind.Listener) {
+      if (op.kind === ir.OpKind.Listener || op.kind === ir.OpKind.TwoWayListener) {
         optimizeVariablesInOpList(op.handlerOps, job.compatibility);
       }
     }
diff --git a/packages/compiler/src/template_parser/binding_parser.ts b/packages/compiler/src/template_parser/binding_parser.ts
index 3ad4782ea111..6d11c640ffd7 100644
--- a/packages/compiler/src/template_parser/binding_parser.ts
+++ b/packages/compiler/src/template_parser/binding_parser.ts
@@ -7,7 +7,7 @@
  */
 
 import {SecurityContext} from '../core';
-import {AbsoluteSourceSpan, ASTWithSource, BindingPipe, BindingType, BoundElementProperty, EmptyExpr, ParsedEvent, ParsedEventType, ParsedProperty, ParsedPropertyType, ParsedVariable, ParserError, RecursiveAstVisitor, TemplateBinding, VariableBinding} from '../expression_parser/ast';
+import {AbsoluteSourceSpan, AST, ASTWithSource, Binary, BindingPipe, BindingType, BoundElementProperty, Conditional, EmptyExpr, KeyedRead, NonNullAssert, ParsedEvent, ParsedEventType, ParsedProperty, ParsedPropertyType, ParsedVariable, ParserError, PrefixNot, PropertyRead, RecursiveAstVisitor, TemplateBinding, VariableBinding} from '../expression_parser/ast';
 import {Parser} from '../expression_parser/parser';
 import {InterpolationConfig} from '../ml_parser/defaults';
 import {mergeNsAndName} from '../ml_parser/tags';
@@ -418,8 +418,7 @@ export class BindingParser {
         keySpan = moveParseSourceSpan(
             keySpan, new AbsoluteSourceSpan(keySpan.start.offset + 1, keySpan.end.offset));
       }
-      this._parseAnimationEvent(
-          name, expression, isAssignmentEvent, sourceSpan, handlerSpan, targetEvents, keySpan);
+      this._parseAnimationEvent(name, expression, sourceSpan, handlerSpan, targetEvents, keySpan);
     } else {
       this._parseRegularEvent(
           name, expression, isAssignmentEvent, sourceSpan, handlerSpan, targetMatchableAttrs,
@@ -434,12 +433,12 @@ export class BindingParser {
   }
 
   private _parseAnimationEvent(
-      name: string, expression: string, isAssignmentEvent: boolean, sourceSpan: ParseSourceSpan,
-      handlerSpan: ParseSourceSpan, targetEvents: ParsedEvent[], keySpan: ParseSourceSpan) {
+      name: string, expression: string, sourceSpan: ParseSourceSpan, handlerSpan: ParseSourceSpan,
+      targetEvents: ParsedEvent[], keySpan: ParseSourceSpan) {
     const matches = splitAtPeriod(name, [name, '']);
     const eventName = matches[0];
     const phase = matches[1].toLowerCase();
-    const ast = this._parseAction(expression, isAssignmentEvent, handlerSpan);
+    const ast = this._parseAction(expression, handlerSpan);
     targetEvents.push(new ParsedEvent(
         eventName, phase, ParsedEventType.Animation, ast, sourceSpan, handlerSpan, keySpan));
 
@@ -464,11 +463,20 @@ export class BindingParser {
   private _parseRegularEvent(
       name: string, expression: string, isAssignmentEvent: boolean, sourceSpan: ParseSourceSpan,
       handlerSpan: ParseSourceSpan, targetMatchableAttrs: string[][], targetEvents: ParsedEvent[],
-      keySpan: ParseSourceSpan) {
+      keySpan: ParseSourceSpan): void {
     // long format: 'target: eventName'
     const [target, eventName] = splitAtColon(name, [null!, name]);
-    const ast = this._parseAction(expression, isAssignmentEvent, handlerSpan);
+    const prevErrorCount = this.errors.length;
+    const ast = this._parseAction(expression, handlerSpan);
+    const isValid = this.errors.length === prevErrorCount;
     targetMatchableAttrs.push([name!, ast.source!]);
+
+    // Don't try to validate assignment events if there were other
+    // parsing errors to avoid adding more noise to the error logs.
+    if (isAssignmentEvent && isValid && !this._isAllowedAssignmentEvent(ast)) {
+      this._reportError('Unsupported expression in a two-way binding', sourceSpan);
+    }
+
     targetEvents.push(new ParsedEvent(
         eventName, target, isAssignmentEvent ? ParsedEventType.TwoWay : ParsedEventType.Regular,
         ast, sourceSpan, handlerSpan, keySpan));
@@ -476,14 +484,13 @@ export class BindingParser {
     // so don't add the event name to the matchableAttrs
   }
 
-  private _parseAction(value: string, isAssignmentEvent: boolean, sourceSpan: ParseSourceSpan):
-      ASTWithSource {
+  private _parseAction(value: string, sourceSpan: ParseSourceSpan): ASTWithSource {
     const sourceInfo = (sourceSpan && sourceSpan.start || '(unknown').toString();
     const absoluteOffset = (sourceSpan && sourceSpan.start) ? sourceSpan.start.offset : 0;
 
     try {
       const ast = this._exprParser.parseAction(
-          value, isAssignmentEvent, sourceInfo, absoluteOffset, this._interpolationConfig);
+          value, sourceInfo, absoluteOffset, this._interpolationConfig);
       if (ast) {
         this._reportExpressionParserErrors(ast.errors, sourceSpan);
       }
@@ -523,6 +530,31 @@ export class BindingParser {
       this._reportError(report.msg!, sourceSpan, ParseErrorLevel.ERROR);
     }
   }
+
+  /**
+   * Returns whether a parsed AST is allowed to be used within the event side of a two-way binding.
+   * @param ast Parsed AST to be checked.
+   */
+  private _isAllowedAssignmentEvent(ast: AST): boolean {
+    if (ast instanceof ASTWithSource) {
+      return this._isAllowedAssignmentEvent(ast.ast);
+    }
+
+    if (ast instanceof NonNullAssert) {
+      return this._isAllowedAssignmentEvent(ast.expression);
+    }
+
+    if (ast instanceof PropertyRead || ast instanceof KeyedRead) {
+      return true;
+    }
+
+    if (ast instanceof Binary) {
+      return (ast.operation === '&&' || ast.operation === '||' || ast.operation === '??') &&
+          (ast.right instanceof PropertyRead || ast.right instanceof KeyedRead);
+    }
+
+    return ast instanceof Conditional || ast instanceof PrefixNot;
+  }
 }
 
 export class PipeCollector extends RecursiveAstVisitor {
diff --git a/packages/compiler/test/expression_parser/parser_spec.ts b/packages/compiler/test/expression_parser/parser_spec.ts
index cfc59cda3d30..8e399fecad03 100644
--- a/packages/compiler/test/expression_parser/parser_spec.ts
+++ b/packages/compiler/test/expression_parser/parser_spec.ts
@@ -1174,7 +1174,7 @@ function createParser() {
 }
 
 function parseAction(text: string, location: any = null, offset: number = 0): ASTWithSource {
-  return createParser().parseAction(text, /* isAssignmentEvent */ false, location, offset);
+  return createParser().parseAction(text, location, offset);
 }
 
 function parseBinding(text: string, location: any = null, offset: number = 0): ASTWithSource {
diff --git a/packages/compiler/test/render3/r3_template_transform_spec.ts b/packages/compiler/test/render3/r3_template_transform_spec.ts
index 5ce14e9145d6..702187e1b64d 100644
--- a/packages/compiler/test/render3/r3_template_transform_spec.ts
+++ b/packages/compiler/test/render3/r3_template_transform_spec.ts
@@ -496,7 +496,7 @@ describe('R3 template transform', () => {
       expectFromHtml('<div [(prop)]="v"></div>').toEqual([
         ['Element', 'div'],
         ['BoundAttribute', BindingType.TwoWay, 'prop', 'v'],
-        ['BoundEvent', ParsedEventType.TwoWay, 'propChange', null, 'v = $event'],
+        ['BoundEvent', ParsedEventType.TwoWay, 'propChange', null, 'v'],
       ]);
     });
 
@@ -504,7 +504,7 @@ describe('R3 template transform', () => {
       expectFromHtml('<div bindon-prop="v"></div>').toEqual([
         ['Element', 'div'],
         ['BoundAttribute', BindingType.TwoWay, 'prop', 'v'],
-        ['BoundEvent', ParsedEventType.TwoWay, 'propChange', null, 'v = $event'],
+        ['BoundEvent', ParsedEventType.TwoWay, 'propChange', null, 'v'],
       ]);
     });
 
@@ -512,10 +512,77 @@ describe('R3 template transform', () => {
       expectFromHtml('<div [(prop)]="v!"></div>').toEqual([
         ['Element', 'div'],
         ['BoundAttribute', BindingType.TwoWay, 'prop', 'v!'],
-        ['BoundEvent', ParsedEventType.TwoWay, 'propChange', null, 'v = $event'],
+        ['BoundEvent', ParsedEventType.TwoWay, 'propChange', null, 'v!'],
       ]);
     });
 
+    it('should parse property reads bound via [(...)]', () => {
+      expectFromHtml('<div [(prop)]="a.b.c"></div>').toEqual([
+        ['Element', 'div'],
+        ['BoundAttribute', BindingType.TwoWay, 'prop', 'a.b.c'],
+        ['BoundEvent', ParsedEventType.TwoWay, 'propChange', null, 'a.b.c'],
+      ]);
+    });
+
+    it('should parse keyed reads bound via [(...)]', () => {
+      expectFromHtml(`<div [(prop)]="a['b']['c']"></div>`).toEqual([
+        ['Element', 'div'],
+        ['BoundAttribute', BindingType.TwoWay, 'prop', `a["b"]["c"]`],
+        ['BoundEvent', ParsedEventType.TwoWay, 'propChange', null, `a["b"]["c"]`],
+      ]);
+    });
+
+    it('should report assignments in two-way bindings', () => {
+      expect(() => parse(`<div [(prop)]="v = 1"></div>`))
+          .toThrowError(/Bindings cannot contain assignments/);
+    });
+
+    it('should report pipes in two-way bindings', () => {
+      expect(() => parse(`<div [(prop)]="v | pipe"></div>`))
+          .toThrowError(/Cannot have a pipe in an action expression/);
+    });
+
+    it('should report unsupported expressions in two-way bindings', () => {
+      const unsupportedExpressions = [
+        'v + 1',
+        'foo.bar?.baz',
+        `foo.bar?.['baz']`,
+        'true',
+        '123',
+        'a.b()',
+        'v()',
+        '[1, 2, 3]',
+        '{a: 1, b: 2, c: 3}',
+        'v === 1',
+      ];
+
+      for (const expression of unsupportedExpressions) {
+        expect(() => parse(`<div [(prop)]="${expression}"></div>`))
+            .withContext(expression)
+            .toThrowError(/Unsupported expression in a two-way binding/);
+      }
+    });
+
+    it('should allow some unassignable expressions in two-way bindings for backwards compatibility',
+       () => {
+         const expressions = [
+           'a || b',
+           'a && b',
+           'a ?? b',
+           '!a',
+           '!!a',
+           'a ? b : c',
+         ];
+
+         for (const expression of expressions) {
+           expectFromHtml(`<div [(prop)]="${expression}"></div>`).toEqual([
+             ['Element', 'div'],
+             ['BoundAttribute', BindingType.TwoWay, 'prop', expression],
+             ['BoundEvent', ParsedEventType.TwoWay, 'propChange', null, expression],
+           ]);
+         }
+       });
+
     it('should report an error for assignments into non-null asserted expressions', () => {
       // TODO(joost): this syntax is allowed in TypeScript. Consider changing the grammar to
       //  allow this syntax, or improve the error message.
diff --git a/packages/core/src/core_render3_private_export.ts b/packages/core/src/core_render3_private_export.ts
index fe26d431efe6..2e681434c8c9 100644
--- a/packages/core/src/core_render3_private_export.ts
+++ b/packages/core/src/core_render3_private_export.ts
@@ -241,6 +241,9 @@ export {
   ɵɵtextInterpolateV,
   ɵɵviewQuery,
   ɵɵviewQuerySignal,
+  ɵɵtwoWayProperty,
+  ɵɵtwoWayBindingSet,
+  ɵɵtwoWayListener,
   ɵgetUnknownElementStrictMode,
   ɵsetUnknownElementStrictMode,
   ɵgetUnknownPropertyStrictMode,
diff --git a/packages/core/src/render3/index.ts b/packages/core/src/render3/index.ts
index 259f3aa5c793..0844c65855f0 100644
--- a/packages/core/src/render3/index.ts
+++ b/packages/core/src/render3/index.ts
@@ -164,6 +164,11 @@ export {
   ɵɵtextInterpolate7,
   ɵɵtextInterpolate8,
   ɵɵtextInterpolateV,
+
+  ɵɵtwoWayProperty,
+  ɵɵtwoWayBindingSet,
+  ɵɵtwoWayListener,
+
   ɵgetUnknownElementStrictMode,
   ɵsetUnknownElementStrictMode,
   ɵgetUnknownPropertyStrictMode,
diff --git a/packages/core/src/render3/instructions/all.ts b/packages/core/src/render3/instructions/all.ts
index ffdbef60fe9b..8eee3b76de8b 100644
--- a/packages/core/src/render3/instructions/all.ts
+++ b/packages/core/src/render3/instructions/all.ts
@@ -56,3 +56,4 @@ export * from './styling';
 export * from './template';
 export * from './text';
 export * from './text_interpolation';
+export * from './two_way';
diff --git a/packages/core/src/render3/instructions/two_way.ts b/packages/core/src/render3/instructions/two_way.ts
new file mode 100644
index 000000000000..d644b8548bf6
--- /dev/null
+++ b/packages/core/src/render3/instructions/two_way.ts
@@ -0,0 +1,60 @@
+/*!
+ * @license
+ * Copyright Google LLC All Rights Reserved.
+ *
+ * Use of this source code is governed by an MIT-style license that can be
+ * found in the LICENSE file at https://angular.io/license
+ */
+
+import {SanitizerFn} from '../interfaces/sanitization';
+
+import {ɵɵlistener} from './listener';
+import {ɵɵproperty} from './property';
+
+
+/**
+ * Update a two-way bound property on a selected element.
+ *
+ * Operates on the element selected by index via the {@link select} instruction.
+ *
+ * @param propName Name of property.
+ * @param value New value to write.
+ * @param sanitizer An optional function used to sanitize the value.
+ * @returns This function returns itself so that it may be chained
+ * (e.g. `twoWayProperty('name', ctx.name)('title', ctx.title)`)
+ *
+ * @codeGenApi
+ */
+export function ɵɵtwoWayProperty<T>(
+    propName: string, value: T, sanitizer?: SanitizerFn|null): typeof ɵɵtwoWayProperty {
+  // TODO(crisbeto): implement two-way specific logic.
+  ɵɵproperty(propName, value, sanitizer);
+  return ɵɵtwoWayProperty;
+}
+
+/**
+ * Function used inside two-way listeners to conditionally set the value of the bound expression.
+ *
+ * @param target Field on which to set the value.
+ * @param value Value to be set to the field.
+ *
+ * @codeGenApi
+ */
+export function ɵɵtwoWayBindingSet<T>(target: unknown, value: T): boolean {
+  // TODO(crisbeto): implement this fully.
+  return false;
+}
+
+/**
+ * Adds an event listener that updates a two-way binding to the current node.
+ *
+ * @param eventName Name of the event.
+ * @param listenerFn The function to be called when event emits.
+ *
+ * @codeGenApi
+ */
+export function ɵɵtwoWayListener(
+    eventName: string, listenerFn: (e?: any) => any): typeof ɵɵtwoWayListener {
+  ɵɵlistener(eventName, listenerFn);
+  return ɵɵtwoWayListener;
+}
diff --git a/packages/core/src/render3/jit/environment.ts b/packages/core/src/render3/jit/environment.ts
index 2163616bd12c..a38119d58701 100644
--- a/packages/core/src/render3/jit/environment.ts
+++ b/packages/core/src/render3/jit/environment.ts
@@ -204,5 +204,9 @@ export const angularCoreEnv: {[name: string]: unknown} =
        'forwardRef': forwardRef,
        'resolveForwardRef': resolveForwardRef,
 
+       'ɵɵtwoWayProperty': r3.ɵɵtwoWayProperty,
+       'ɵɵtwoWayBindingSet': r3.ɵɵtwoWayBindingSet,
+       'ɵɵtwoWayListener': r3.ɵɵtwoWayListener,
+
        'ɵɵInputFlags': InputFlags,
      }))();
diff --git a/packages/core/test/bundling/defer/bundle.golden_symbols.json b/packages/core/test/bundling/defer/bundle.golden_symbols.json
index b160de89ecac..012970877cb7 100644
--- a/packages/core/test/bundling/defer/bundle.golden_symbols.json
+++ b/packages/core/test/bundling/defer/bundle.golden_symbols.json
@@ -1856,6 +1856,9 @@
   {
     "name": "init_trusted_types_bypass"
   },
+  {
+    "name": "init_two_way"
+  },
   {
     "name": "init_type"
   },
diff --git a/packages/core/test/bundling/forms_template_driven/bundle.golden_symbols.json b/packages/core/test/bundling/forms_template_driven/bundle.golden_symbols.json
index 56fe1b61ef68..933db17aef06 100644
--- a/packages/core/test/bundling/forms_template_driven/bundle.golden_symbols.json
+++ b/packages/core/test/bundling/forms_template_driven/bundle.golden_symbols.json
@@ -1777,5 +1777,11 @@
   },
   {
     "name": "ɵɵtext"
+  },
+  {
+    "name": "ɵɵtwoWayListener"
+  },
+  {
+    "name": "ɵɵtwoWayProperty"
   }
 ]
\ No newline at end of file