diff --git a/hsp/rt/$root.js b/hsp/rt/$root.js
index fa5faea..6da52e5 100644
--- a/hsp/rt/$root.js
+++ b/hsp/rt/$root.js
@@ -33,8 +33,8 @@ var CPT_TYPES={
 var DOCUMENT_FRAGMENT_NODE = 11;
 
 /**
- * Root node - created at the root of each template 
- * Contains the listeners requested by the child nodes 
+ * Root node - created at the root of each template
+ * Contains the listeners requested by the child nodes
  * Is replaced by the $CptNode (child class) when the template is inserted in another template
  */
 var $RootNode = klass({
@@ -51,7 +51,7 @@ var $RootNode = klass({
      * @param {Map} ctlInitAtts the init value of the controller attributes (optional) - e.g.
      * {value:'123',mandatory:true}
      */
-    $constructor : function (vscope, nodedefs, argnames, ctlWrapper, ctlInitAtts) {
+    $constructor : function(vscope, nodedefs, argnames, ctlWrapper, ctlInitAtts) {
         if (this.isInsertNode) {
             TNode.$constructor.call(this, this.exps);
         } else {
@@ -125,12 +125,16 @@ var $RootNode = klass({
             o.$dispose();
         }
         this.propObs=null;
+        this.$disposeCtlWrapper();
+        TNode.$dispose.call(this);
+    },
+
+    $disposeCtlWrapper: function() {
         if (this.ctlWrapper) {
             this.ctlWrapper.$dispose();
             this.ctlWrapper = null;
             this.controller = null;
         }
-        TNode.$dispose.call(this);
     },
 
     /**
@@ -318,6 +322,7 @@ var getObject = exports.getObject = function (path, scope) {
             o = o[path[i]];
         }
     }
+
     return o;
 };
 
@@ -338,7 +343,7 @@ var $CptNode = klass({
      * expression index associated to the event hanlder callback
      * @param {Array} children list of child node generators - correponding to pseudo components and attribute content
      */
-    $constructor : function (tplPath, exps, attcfg, ehcfg, children) {
+    $constructor : function(tplPath, exps, attcfg, ehcfg, children) {
         this.pathInfo=tplPath.slice(1).join("."); // debugging info
         this.info="[Component: #"+this.pathInfo+"]"; // debug info
         this.isCptNode = true;
@@ -411,7 +416,7 @@ var $CptNode = klass({
             ni.node2=node2;
 
             if (p.cptType==="$CptAttInsert") {
-                // this cpt is used to an insert another component passed as attribute 
+                // this cpt is used to an insert another component passed as attribute
                 ni.initCpt(po);
             } else {
                 // we are in a template or component cpt
@@ -425,7 +430,7 @@ var $CptNode = klass({
             // create an element to avoid generating other errors
             ni=this.createCptInstance("$CptAttInsert",parent);
         }
-        
+
         return ni;
     },
 
@@ -433,12 +438,12 @@ var $CptNode = klass({
      * Calculates the object referenced by the path and the component type
      * @return {Object} object with the following properties:
      *        pathObject: {Object} the object referenced by the path
-     *        cptType: {String} one of the following option: "$CptComponent", 
+     *        cptType: {String} one of the following option: "$CptComponent",
      *                 "$CptTemplate", "$CptAttInsert" or "InvalidComponent"
      */
     getPathData:function(path, vscope) {
-        // determine the type of this component: 
-        // - either a template - e.g. <#mytemplate foo="bar"/> 
+        // determine the type of this component:
+        // - either a template - e.g. <#mytemplate foo="bar"/>
         //   -> instance will extend $CptTemplate
         // - a component with controller - e.g. <#mycpt foo="bar"/>
         //   -> instance will extend $CptComponent
@@ -513,7 +518,7 @@ var $CptNode = klass({
             nd.appendChild(this.node2);
         }
     },
-    
+
     /**
      * Callback called when a controller attribute or a template attribute has changed
      */
@@ -599,12 +604,21 @@ var $CptNode = klass({
 
             if (tplChanged) {
                 // check if component nature changed from template to component or opposite
+
+                // Change might also be a different component ref, ie cpt1 -> cpt2
+                // let's dispose anything related to previous template
+                if (this.template.$dispose) {
+                    this.template.$dispose(true);
+                } else {
+                    // this.template might be only a reference to template closure function, not what it returns
+                    this.$disposeCtlWrapper();
+                }
                 this.template=tpl;
                 this.createChildNodeInstances();
             } else {
                 if (this.refreshAttributes) {
                     this.refreshAttributes();
-                    // for component and sub-templates the original vscope is substituted 
+                    // for component and sub-templates the original vscope is substituted
                     // to the one of the component- or sub-template
                     // so we need to revert to the parent scope to observe the correct objects
                     var vs=this.vscope;
@@ -668,7 +682,7 @@ var $CptNode = klass({
         var sz=pos.length;
 
         this._pathChgeCb = this.onPathChange.bind(this);
-    
+
         for (var i=0;sz>i;i++) {
             json.observe(pos[i], this._pathChgeCb);
         }
@@ -747,9 +761,9 @@ var $CptAttElement = klass({
     isCptAttElement : true,
 
     /**
-     * $CptAttElement generator 
+     * $CptAttElement generator
      */
-    $constructor : function (name, exps, attcfg, ehcfg, children) {
+    $constructor : function(name, exps, attcfg, ehcfg, children) {
         this.name = name;
         this.info = "[Component attribute element: @"+this.name+"]";
         this.tagName = "@"+name;
@@ -789,7 +803,7 @@ var $CptAttElement = klass({
                 if (p.ctlAttributes) {
                     attDef=p.ctlAttributes[this.name];
                 }
-                
+
                 if (!eltDef && !attDef) {
                     // invalid elt
                     log.error(this.info+" Element not supported by its parent component");
@@ -846,4 +860,3 @@ cptComponent.setDependency("$CptAttElement",$CptAttElement);
 exports.$RootNode = $RootNode;
 exports.$CptNode = $CptNode;
 exports.$CptAttElement = $CptAttElement;
-
diff --git a/hsp/rt/cptcomponent.js b/hsp/rt/cptcomponent.js
index 992babf..90cffee 100644
--- a/hsp/rt/cptcomponent.js
+++ b/hsp/rt/cptcomponent.js
@@ -138,11 +138,7 @@ exports.$CptComponent = {
    *        must be used when a new instance is created to adapt to a path change
    */
   $dispose:function(localPropOnly) {
-    if (this.ctlWrapper) {
-      this.ctlWrapper.$dispose();
-      this.ctlWrapper=null;
-      this.controller=null;
-    }
+    this.$disposeCtlWrapper();
     this.ctlAttributes=null;
     this.cleanObjectProperties(localPropOnly);
     this.ctlConstuctor=null;
@@ -219,7 +215,7 @@ exports.$CptComponent = {
           // nm is a template attribute passed as text attribute
           if (this.tplAttributes && this.tplAttributes[nm]) {
             // already defined: raise an error
-            
+
             log.error(this+" Component attribute '" + nm + "' is defined multiple times - please check");
           } else {
             // create new tpl Attribute Text Node and add it to the tplAttributes collection
diff --git a/test/rt/cptlifecyle.spec.hsp b/test/rt/cptlifecyle.spec.hsp
new file mode 100644
index 0000000..d18aa6d
--- /dev/null
+++ b/test/rt/cptlifecyle.spec.hsp
@@ -0,0 +1,99 @@
+<script>
+/*
+ * Copyright 2013 Amadeus s.a.s.
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *    http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+var klass=require("hsp/klass"),
+    ht=require("hsp/utils/hashtester");
+
+var constructor_counter = 0;
+var dispose_counter = 0;
+
+var LifeCycleController = klass({
+  $constructor: function() {
+    constructor_counter++;
+  },
+  $dispose: function() {
+    dispose_counter++;
+  }
+});
+</script>
+
+<template lifecycle1 using ctrl:LifeCycleController>
+  <div class="content">I am component 1</div>
+</template>
+
+<template lifecycle2 using ctrl:LifeCycleController>
+  <div class="content">I am component 2</div>
+</template>
+
+<template wrapper(data)>
+  {if data.visible}
+    <#lifecycle1 />
+  {/if}
+</template>
+
+<template dynamicWrapper(data)>
+  <#data.cpt />
+</template>
+
+<script>
+var data = {
+  visible: true,
+  cpt: lifecycle1
+};
+</script>
+
+<script>
+describe("Component lifecycle", function () {
+
+  it("should invoke $contructor and $dispose anytime a new instance is needed", function() {
+    var h=ht.newTestContext();
+    constructor_counter = dispose_counter = 0;
+
+    wrapper(data).render(h.container);
+    expect(h(".content").text()).to.equal('I am component 1');
+    expect(constructor_counter).to.equal(1);
+    h.$set(data, "visible", false);
+    h.$set(data, "visible", true);
+    expect(constructor_counter).to.equal(2);
+
+    expect(dispose_counter).to.equal(1);
+
+    h.$dispose();
+  });
+});
+
+describe("Component used as dynamic <#ref >", function() {
+
+  it("should invoke $constructor at instance creation and $dispose when not needed anymore", function() {
+    var h=ht.newTestContext();
+    constructor_counter = dispose_counter = 0;
+
+    dynamicWrapper(data).render(h.container);
+    expect(h(".content").text()).to.equal('I am component 1');
+    expect(constructor_counter).to.equal(1);
+
+    h.$set(data, "cpt", lifecycle2);
+    expect(h(".content").text()).to.equal('I am component 2');
+    expect(constructor_counter).to.equal(2);
+
+    h.$set(data, "cpt", lifecycle1);
+    expect(dispose_counter).to.equal(2);
+
+    h.$dispose();
+  });
+
+});
+</script>