diff --git a/spec/defaultBindings/withBehaviors.js b/spec/defaultBindings/withBehaviors.js
index cf80eef57..a9df2293b 100644
--- a/spec/defaultBindings/withBehaviors.js
+++ b/spec/defaultBindings/withBehaviors.js
@@ -224,7 +224,6 @@ describe('Binding: With', function() {
         model.items()[0].x(10);
         expect(testNode).toContainText("Total: 25");
     });
-});
 
     it('Should call an afterRender callback function and not cause updates if an observable accessed in the callback is changed', function () {
         testNode.innerHTML = "<div data-bind='with: someItem, afterRender: callback'><span data-bind='text: childprop'></span></div>";
@@ -240,12 +239,31 @@ describe('Binding: With', function() {
         // Update callback observable and check that the binding wasn't updated
         callbackObservable(2);
         expect(testNode.childNodes[0]).toContainText('child');
-        // Update the observableArray and verify that the binding is now updated
+        // Update the observable and verify that the binding is now updated
         someItem({ childprop: 'new child' });
         expect(testNode.childNodes[0]).toContainText('new child');
         expect(callbacks).toEqual(2);
     });
 
+    it('Should call an afterRender callback function when bound to a virtual element', function () {
+        testNode.innerHTML = "<!-- ko with: someItem, afterRender: callback --><span data-bind='text: childprop'></span><!-- /ko -->";
+        var someItem = ko.observable({ childprop: 'child' }),
+            callbacks = 0;
+        var callback = function (nodes, data) {
+            expect(nodes.length).toEqual(1);
+            expect(nodes[0]).toEqual(testNode.childNodes[1]);
+            expect(data.childprop).toEqual(someItem().childprop);
+            callbacks++;
+        };
+        ko.applyBindings({ someItem: someItem, callback: callback }, testNode);
+        expect(callbacks).toEqual(1);
+
+        // Update the observable and verify that the binding is now updated
+        someItem({ childprop: 'new child' });
+        expect(testNode.childNodes[1]).toContainText('new child');
+        expect(callbacks).toEqual(2);
+    });
+
     it('Should not call an afterRender callback function when data gets cleared', function () {
         testNode.innerHTML = "<div data-bind='with: someItem, afterRender: callback'><span data-bind='text: childprop'></span></div>";
         var someItem = ko.observable({ childprop: 'child' }),
diff --git a/src/binding/defaultBindings/ifIfnotWith.js b/src/binding/defaultBindings/ifIfnotWith.js
index f68e747dc..3d1a39aff 100755
--- a/src/binding/defaultBindings/ifIfnotWith.js
+++ b/src/binding/defaultBindings/ifIfnotWith.js
@@ -10,16 +10,17 @@ function makeWithIfBinding(bindingKey, isWith, isNot) {
             ko.computed(function() {
                 var rawWithValue = isWith && ko.utils.unwrapObservable(valueAccessor()),
                     shouldDisplay = isWith ? !!rawWithValue : ifCondition(),
-                    isFirstRender = !savedNodes;
+                    isFirstRender = !savedNodes,
+                    renderNodes;
 
                 // Save a copy of the inner nodes on the initial update, but only if we have dependencies.
                 if (isFirstRender && ko.computedContext.getDependenciesCount()) {
-                    savedNodes = ko.utils.cloneNodes(ko.virtualElements.childNodes(element), true /* shouldCleanNodes */);
+                    savedNodes = ko.utils.cloneNodes(renderNodes = ko.virtualElements.childNodes(element), true /* shouldCleanNodes */);
                 }
 
                 if (shouldDisplay) {
                     if (!isFirstRender) {
-                        ko.virtualElements.setDomNodeChildren(element, ko.utils.cloneNodes(savedNodes));
+                        ko.virtualElements.setDomNodeChildren(element, renderNodes = ko.utils.cloneNodes(savedNodes));
                     }
                     var newContext = isWith ?
                             bindingContext['createChildContext'](typeof rawWithValue == "function" ? rawWithValue : valueAccessor) :
@@ -27,8 +28,8 @@ function makeWithIfBinding(bindingKey, isWith, isNot) {
                                 bindingContext['extend'](function() { ifCondition(); return null; }) :
                                 bindingContext;
                     ko.applyBindingsToDescendants(newContext, element);
-                    if (element.childNodes.length && allBindings.has('afterRender')) {
-                        ko.dependencyDetection.ignore(allBindings.get('afterRender'), null, [element.childNodes, newContext['$data']]);
+                    if (allBindings.has('afterRender')) {
+                        ko.dependencyDetection.ignore(allBindings.get('afterRender'), null, [renderNodes || ko.virtualElements.childNodes(element), newContext['$data']]);
                     }
                 } else {
                     ko.virtualElements.emptyNode(element);