diff --git a/packages/ember-routing/lib/system/controller_for.js b/packages/ember-routing/lib/system/controller_for.js
index af8afe38783..3e267dd3f49 100644
--- a/packages/ember-routing/lib/system/controller_for.js
+++ b/packages/ember-routing/lib/system/controller_for.js
@@ -7,9 +7,13 @@ Ember.generateController = function(container, controllerName, context) {
   var controller;
 
   if (context && Ember.isArray(context)) {
-    controller = Ember.ArrayController.extend({content: context});
+    controller = Ember.ArrayController.extend({
+      content: context
+    });
   } else if (context) {
-    controller = Ember.ObjectController.extend({content: context});
+    controller = Ember.ObjectController.extend({
+      content: context
+    });
   } else {
     controller = Ember.Controller.extend();
   }
diff --git a/packages/ember-routing/lib/system/route.js b/packages/ember-routing/lib/system/route.js
index 3d9fa3e3510..8aff7e7bc4b 100644
--- a/packages/ember-routing/lib/system/route.js
+++ b/packages/ember-routing/lib/system/route.js
@@ -55,6 +55,10 @@ Ember.Route = Ember.Object.extend({
 
     var controller = this.controllerFor(this.templateName, context);
 
+    if (controller) {
+      set(controller, 'model', context);
+    }
+
     if (this.setupControllers) {
       Ember.deprecate("Ember.Route.setupControllers is deprecated. Please use Ember.Route.setupController(controller, model) instead.");
       this.setupControllers(controller, context);
@@ -208,11 +212,7 @@ Ember.Route = Ember.Object.extend({
 
     @method setupController
   */
-  setupController: function(controller, model) {
-    if (controller) {
-      controller.set('content', model);
-    }
-  },
+  setupController: Ember.K,
 
   /**
     Returns the controller for a particular route.
diff --git a/packages/ember/tests/routing/basic_test.js b/packages/ember/tests/routing/basic_test.js
index 2f3e8df5687..1fa9bf88a89 100644
--- a/packages/ember/tests/routing/basic_test.js
+++ b/packages/ember/tests/routing/basic_test.js
@@ -226,6 +226,35 @@ test("The Homepage with a `setupController` hook", function() {
   equal(Ember.$('ul li', '#qunit-fixture').eq(2).text(), "Sunday: Noon to 6pm", "The template was rendered with the hours context");
 });
 
+test("The default controller's model is still set when overriding the setupController hook", function() {
+  Router.map(function() {
+    this.route("home", { path: "/" });
+  });
+
+  App.HomeRoute = Ember.Route.extend({
+    model: function() {
+      return {
+        isModel: true
+      };
+    },
+
+    setupController: function(controller) {
+      // no-op
+      // importantly, we are not calling this._super here
+    }
+  });
+
+  Ember.TEMPLATES.home = Ember.Handlebars.compile(
+    "<ul>{{#each entry in hours}}<li>{{entry}}</li>{{/each}}</ul>"
+  );
+
+  container.register('controller', 'home', Ember.Controller.extend());
+
+  bootApplication();
+
+  deepEqual(container.lookup('controller:home').get('model'), { isModel: true }, "model is still set on controller");
+});
+
 test("The Homepage with a `setupController` hook modifying other controllers", function() {
   Router.map(function() {
     this.route("home", { path: "/" });