diff --git a/src/fragment/factory.js b/src/fragment/factory.js
index b4aff212802..c11b2dcc77d 100644
--- a/src/fragment/factory.js
+++ b/src/fragment/factory.js
@@ -18,7 +18,7 @@ export default function FragmentFactory (vm, el) {
   this.vm = vm
   var template
   var isString = typeof el === 'string'
-  if (isString || isTemplate(el)) {
+  if (isString || isTemplate(el) && !el.hasAttribute('v-if')) {
     template = parseTemplate(el, true)
   } else {
     template = document.createDocumentFragment()
diff --git a/test/unit/specs/misc_spec.js b/test/unit/specs/misc_spec.js
index acdd1cedbf4..45c86daef5f 100644
--- a/test/unit/specs/misc_spec.js
+++ b/test/unit/specs/misc_spec.js
@@ -537,4 +537,13 @@ describe('Misc', function () {
     })
     expect(vm.$el.querySelector('image-field').namespaceURI).not.toMatch(/svg/)
   })
+
+  // #2657
+  it('template v-for with v-if', function () {
+    var vm = new Vue({
+      el: document.createElement('div'),
+      template: '<div><template v-for="n in 6" v-if="n % 2">{{ n }}</template></div>'
+    })
+    expect(vm.$el.textContent).toBe('135')
+  })
 })