diff --git a/src/tooltip/test/tooltip2.spec.js b/src/tooltip/test/tooltip2.spec.js
index bb7e6ebba5..586f9060dd 100644
--- a/src/tooltip/test/tooltip2.spec.js
+++ b/src/tooltip/test/tooltip2.spec.js
@@ -1,14 +1,15 @@
 describe('tooltip directive', function () {
 
-  var $rootScope, $compile, $document, $timeout;
+  var $rootScope, $compile, $document, $timeout, $position;
 
   beforeEach(module('ui.bootstrap.tooltip'));
   beforeEach(module('template/tooltip/tooltip-popup.html'));
-  beforeEach(inject(function (_$rootScope_, _$compile_, _$document_, _$timeout_) {
+  beforeEach(inject(function (_$rootScope_, _$compile_, _$document_, _$timeout_, _$position_) {
     $rootScope = _$rootScope_;
     $compile = _$compile_;
     $document = _$document_;
     $timeout = _$timeout_;
+    $position = _$position_;
   }));
 
   beforeEach(function(){
@@ -102,4 +103,37 @@ describe('tooltip directive', function () {
     });
 
   });
+  
+  describe('position', function() {
+    
+    beforeEach(function() {
+      spyOn($position, 'position').andCallThrough();
+    });
+    
+    it('is called once on mouse enter and leave', function () {
+      var fragment = compileTooltip('<span tooltip="tooltip text">Trigger here</span>');
+
+      expect($position.position).not.toHaveBeenCalled();
+    
+      fragment.find('span').trigger( 'mouseenter' );
+      expect($position.position.calls.length).toEqual(1);
+
+      closeTooltip(fragment.find('span'));
+      expect($position.position.calls.length).toEqual(1);
+    });
+    
+    it('is called once for content updates when is open', function () {
+      $rootScope.content = 'some text';
+      var fragment = compileTooltip('<span tooltip="{{ content }}">Trigger here</span>');
+
+      expect($position.position).not.toHaveBeenCalled();
+    
+      fragment.find('span').trigger( 'mouseenter' );
+      expect($position.position.calls.length).toEqual(1);
+      
+      $rootScope.content = 'some new text';
+      $rootScope.$digest();
+      expect($position.position.calls.length).toEqual(1);
+    });
+  });
 });
\ No newline at end of file
diff --git a/src/tooltip/tooltip.js b/src/tooltip/tooltip.js
index f6d116647f..5adb707a8a 100644
--- a/src/tooltip/tooltip.js
+++ b/src/tooltip/tooltip.js
@@ -64,7 +64,7 @@ angular.module( 'ui.bootstrap.tooltip', [ 'ui.bootstrap.position', 'ui.bootstrap
    * Returns the actual instance of the $tooltip service.
    * TODO support multiple triggers
    */
-  this.$get = [ '$window', '$compile', '$timeout', '$parse', '$document', '$position', '$interpolate', function ( $window, $compile, $timeout, $parse, $document, $position, $interpolate ) {
+  this.$get = [ '$compile', '$timeout', '$parse', '$document', '$position', '$interpolate', function ( $compile, $timeout, $parse, $document, $position, $interpolate ) {
     return function $tooltip ( type, prefix, defaultTriggerShow ) {
       var options = angular.extend( {}, defaultOptions, globalOptions );
 
@@ -116,14 +116,12 @@ angular.module( 'ui.bootstrap.tooltip', [ 'ui.bootstrap.position', 'ui.bootstrap
           var triggers = getTriggers( undefined );
           var hasRegisteredTriggers = false;
           var hasEnableExp = angular.isDefined(attrs[prefix+'Enable']);
+          var position;
 
           var positionTooltip = function (){
-            var position,
-              ttWidth,
+            var ttWidth,
               ttHeight,
               ttPosition;
-            // Get the position of the directive element.
-            position = appendToBody ? $position.offset( element ) : $position.position( element );
 
             // Get the height and width of the tooltip so we can center it.
             ttWidth = tooltip.prop( 'offsetWidth' );
@@ -222,7 +220,11 @@ angular.module( 'ui.bootstrap.tooltip', [ 'ui.bootstrap.position', 'ui.bootstrap
             } else {
               element.after( tooltip );
             }
+            
+            // Get the position of the directive element.
+            position = appendToBody ? $position.offset( element ) : $position.position( element );
 
+            // Place tooltip
             positionTooltip();
 
             // And show the tooltip.
@@ -259,8 +261,14 @@ angular.module( 'ui.bootstrap.tooltip', [ 'ui.bootstrap.position', 'ui.bootstrap
           attrs.$observe( type, function ( val ) {
             scope.tt_content = val;
 
-            if (!val && scope.tt_isOpen ) {
-              hide();
+            if (scope.tt_isOpen) {
+              if (!val) {
+                hide();
+              } else {
+                // Wait DOM to be updated and adjust position based on the new tooltip dimensions
+                // and the last known position of the directive element.
+                scope.$evalAsync(positionTooltip);
+              }
             }
           });