diff --git a/src/FirebaseObject.js b/src/FirebaseObject.js
index 85152e8b..8b0d3d86 100644
--- a/src/FirebaseObject.js
+++ b/src/FirebaseObject.js
@@ -188,17 +188,19 @@
          * Called by $firebase whenever an item is changed at the server.
          * This method must exist on any objectFactory passed into $firebase.
          *
-         * @param snap
+         * It should return true if any changes were made, otherwise `$$notify` will
+         * not be invoked.
+         *
+         * @param {object} snap a Firebase snapshot
+         * @return {boolean} true if any changes were made.
          */
         $$updated: function (snap) {
           // applies new data to this object
           var changed = $firebaseUtils.updateRec(this, snap);
+          // applies any defaults set using $$defaults
           $firebaseUtils.applyDefaults(this, this.$$defaults);
-          if( changed ) {
-            // notifies $watch listeners and
-            // updates $scope if bound to a variable
-            this.$$notify();
-          }
+          // returning true here causes $$notify to be triggered
+          return changed;
         },
 
         /**
@@ -225,8 +227,8 @@
         },
 
         /**
-         * Updates any bound scope variables and notifies listeners registered
-         * with $watch any time there is a change to data
+         * Updates any bound scope variables and
+         * notifies listeners registered with $watch
          */
         $$notify: function() {
           var self = this, list = this.$$conf.listeners.slice();
diff --git a/src/firebase.js b/src/firebase.js
index 7a66d129..c04b2160 100644
--- a/src/firebase.js
+++ b/src/firebase.js
@@ -261,7 +261,14 @@
           var obj = new ObjectFactory($inst, destroy, def.promise);
           var ref = $inst.$ref();
           var batch = $firebaseUtils.batch();
-          var applyUpdate = batch(obj.$$updated, obj);
+          var applyUpdate = batch(function(snap) {
+            var changed = obj.$$updated(snap);
+            if( changed ) {
+              // notifies $watch listeners and
+              // updates $scope if bound to a variable
+              obj.$$notify();
+            }
+          });
           var error = batch(obj.$$error, obj);
           var resolve = batch(_resolveFn);
 
diff --git a/tests/unit/FirebaseObject.spec.js b/tests/unit/FirebaseObject.spec.js
index 65827952..b9ec0be9 100644
--- a/tests/unit/FirebaseObject.spec.js
+++ b/tests/unit/FirebaseObject.spec.js
@@ -248,6 +248,7 @@ describe('$FirebaseObject', function() {
       $timeout.flush();
       $fb.$set.calls.reset();
       obj.$$updated(fakeSnap({foo: 'bar'}));
+      obj.$$notify();
       flushAll();
       expect($scope.test).toEqual({foo: 'bar', $id: obj.$id, $priority: obj.$priority});
     });