diff --git a/spec/defaultBindingsBehaviors.js b/spec/defaultBindingsBehaviors.js
index 5cf0e9ecc..89d4cd452 100755
--- a/spec/defaultBindingsBehaviors.js
+++ b/spec/defaultBindingsBehaviors.js
@@ -1418,5 +1418,15 @@ describe('Binding: Foreach', {
             // ... but IE < 8 doesn't add ones that immediately precede a <li>
             value_of(testNode).should_contain_html('<ul><li>header item</li><!-- ko foreach: someitems --><li data-bind="text: $data">alpha<li data-bind="text: $data">beta</li><!-- /ko --></ul>');
         }
+    },
+
+    'Should be able to output HTML5 elements (even on IE<9, as long as you reference either innershiv.js or jQuery1.7+Modernizr)': function() {
+        // Represents https://github.com/SteveSanderson/knockout/issues/194
+        ko.utils.setHtml(testNode, "<div data-bind='foreach:someitems'><section data-bind='text: $data'></section></div>");
+        var viewModel = {
+            someitems: [ 'Alpha', 'Beta' ]
+        };
+        ko.applyBindings(viewModel, testNode);
+        value_of(testNode).should_contain_html('<div data-bind="foreach:someitems"><section data-bind="text: $data">alpha</section><section data-bind="text: $data">beta</section></div>');
     }
 });
\ No newline at end of file
diff --git a/spec/lib/innershiv.js b/spec/lib/innershiv.js
new file mode 100644
index 000000000..f82830638
--- /dev/null
+++ b/spec/lib/innershiv.js
@@ -0,0 +1,2 @@
+// http://bit.ly/ishiv | WTFPL License
+window.innerShiv=function(){function h(c,e,b){return/^(?:area|br|col|embed|hr|img|input|link|meta|param)$/i.test(b)?c:e+"></"+b+">"}var c,e=document,j,g="abbr article aside audio canvas datalist details figcaption figure footer header hgroup mark meter nav output progress section summary time video".split(" ");return function(d,i){if(!c&&(c=e.createElement("div"),c.innerHTML="<nav></nav>",j=c.childNodes.length!==1)){for(var b=e.createDocumentFragment(),f=g.length;f--;)b.createElement(g[f]);b.appendChild(c)}d=d.replace(/^\s\s*/,"").replace(/\s\s*$/,"").replace(/<script\b[^<]*(?:(?!<\/script>)<[^<]*)*<\/script>/gi,"").replace(/(<([\w:]+)[^>]*?)\/>/g,h);c.innerHTML=(b=d.match(/^<(tbody|tr|td|col|colgroup|thead|tfoot)/i))?"<table>"+d+"</table>":d;b=b?c.getElementsByTagName(b[1])[0].parentNode:c;if(i===!1)return b.childNodes;for(var f=e.createDocumentFragment(),k=b.childNodes.length;k--;)f.appendChild(b.firstChild);return f}}();
\ No newline at end of file
diff --git a/spec/runner.html b/spec/runner.html
index 7b6a7cc1f..ee028f2b0 100755
--- a/spec/runner.html
+++ b/spec/runner.html
@@ -5,8 +5,9 @@
         <link rel="stylesheet" type="text/css" href="lib/JSSpec.css" />
 
         <!-- All specs should pass with or without jQuery being referenced -->
-        <!-- <script type="text/javascript" src="http://code.jquery.com/jquery-1.6.2.js"></script> -->
+        <!-- <script type="text/javascript" src="http://code.jquery.com/jquery-1.7.0.js"></script> -->
 
+        <script type="text/javascript" src="lib/innershiv.js"></script>
         <script type="text/javascript" src="lib/diff_match_patch.js"></script>
         <script type="text/javascript" src="lib/JSSpec.js"></script>        
         <script type="text/javascript">
diff --git a/src/utils.domManipulation.js b/src/utils.domManipulation.js
index 26dddddbe..3af557e5a 100644
--- a/src/utils.domManipulation.js
+++ b/src/utils.domManipulation.js
@@ -21,7 +21,12 @@
 
         // Go to html and back, then peel off extra wrappers
         // Note that we always prefix with some dummy text, because otherwise, IE<9 will strip out leading comment nodes in descendants. Total madness.
-        div.innerHTML = "ignored<div>" + wrap[1] + html + wrap[2] + "</div>";
+        var markup = "ignored<div>" + wrap[1] + html + wrap[2] + "</div>";
+        if (typeof window['innerShiv'] == "function") {
+            div.appendChild(window['innerShiv'](markup));
+        } else {
+            div.innerHTML = markup;
+        }
 
         // Move to the right depth
         while (wrap[0]--)
@@ -57,4 +62,5 @@
     };
 })();
 
-ko.exportSymbol('ko.utils.parseHtmlFragment', ko.utils.parseHtmlFragment);
\ No newline at end of file
+ko.exportSymbol('ko.utils.parseHtmlFragment', ko.utils.parseHtmlFragment);
+ko.exportSymbol('ko.utils.setHtml', ko.utils.setHtml);
\ No newline at end of file