diff --git a/components/script/dom/element.rs b/components/script/dom/element.rs
index 83574e7b6fa..df3ba6b4ece 100644
--- a/components/script/dom/element.rs
+++ b/components/script/dom/element.rs
@@ -13,19 +13,18 @@ use dom::bindings::codegen::Bindings::ElementBinding;
 use dom::bindings::codegen::Bindings::ElementBinding::ElementMethods;
 use dom::bindings::codegen::Bindings::EventBinding::EventMethods;
 use dom::bindings::codegen::Bindings::HTMLInputElementBinding::HTMLInputElementMethods;
+use dom::bindings::codegen::Bindings::HTMLTemplateElementBinding::HTMLTemplateElementMethods;
 use dom::bindings::codegen::Bindings::NamedNodeMapBinding::NamedNodeMapMethods;
 use dom::bindings::codegen::Bindings::NodeBinding::NodeMethods;
-use dom::bindings::codegen::InheritTypes::CharacterDataCast;
-use dom::bindings::codegen::InheritTypes::DocumentDerived;
-use dom::bindings::codegen::InheritTypes::HTMLAnchorElementCast;
-use dom::bindings::codegen::InheritTypes::TextCast;
-use dom::bindings::codegen::InheritTypes::{ElementCast, ElementDerived, EventTargetCast};
+use dom::bindings::codegen::InheritTypes::{CharacterDataCast, DocumentDerived, ElementCast};
+use dom::bindings::codegen::InheritTypes::{ElementDerived, EventTargetCast, HTMLAnchorElementCast};
 use dom::bindings::codegen::InheritTypes::{HTMLBodyElementDerived, HTMLFontElementDerived};
 use dom::bindings::codegen::InheritTypes::{HTMLIFrameElementDerived, HTMLInputElementCast};
 use dom::bindings::codegen::InheritTypes::{HTMLInputElementDerived, HTMLTableElementCast};
 use dom::bindings::codegen::InheritTypes::{HTMLTableElementDerived, HTMLTableCellElementDerived};
-use dom::bindings::codegen::InheritTypes::{HTMLTableRowElementDerived, HTMLTextAreaElementDerived};
-use dom::bindings::codegen::InheritTypes::{HTMLTableSectionElementDerived, NodeCast};
+use dom::bindings::codegen::InheritTypes::{HTMLTableRowElementDerived, HTMLTableSectionElementDerived};
+use dom::bindings::codegen::InheritTypes::{HTMLTemplateElementCast, HTMLTextAreaElementDerived};
+use dom::bindings::codegen::InheritTypes::{NodeCast, TextCast};
 use dom::bindings::codegen::UnionTypes::NodeOrString;
 use dom::bindings::error::Error::NoModificationAllowed;
 use dom::bindings::error::Error::{InvalidCharacter, Syntax};
@@ -1280,19 +1279,25 @@ impl ElementMethods for Element {
         node.get_client_rect().size.height
     }
 
-    // https://dvcs.w3.org/hg/innerhtml/raw-file/tip/index.html#widl-Element-innerHTML
+    /// https://w3c.github.io/DOM-Parsing/#widl-Element-innerHTML
     fn GetInnerHTML(&self) -> Fallible<DOMString> {
         //XXX TODO: XML case
         self.serialize(ChildrenOnly)
     }
 
-    // https://dvcs.w3.org/hg/innerhtml/raw-file/tip/index.html#widl-Element-innerHTML
+    /// https://w3c.github.io/DOM-Parsing/#widl-Element-innerHTML
     fn SetInnerHTML(&self, value: DOMString) -> Fallible<()> {
         let context_node = NodeCast::from_ref(self);
         // Step 1.
         let frag = try!(context_node.parse_fragment(value));
         // Step 2.
-        Node::replace_all(Some(NodeCast::from_ref(frag.r())), context_node);
+        // https://github.com/w3c/DOM-Parsing/issues/1
+        let target = if let Some(template) = HTMLTemplateElementCast::to_ref(self) {
+            NodeCast::from_root(template.Content())
+        } else {
+            Root::from_ref(context_node)
+        };
+        Node::replace_all(Some(NodeCast::from_ref(&*frag)), &target);
         Ok(())
     }
 
diff --git a/components/script/parse/html.rs b/components/script/parse/html.rs
index d7e1535e487..7a0ae327008 100644
--- a/components/script/parse/html.rs
+++ b/components/script/parse/html.rs
@@ -203,7 +203,14 @@ impl<'a> Serializable for &'a Node {
                     try!(serializer.start_elem(name.clone(), attr_refs));
                 }
 
-                for handle in node.children() {
+                let children = if let Some(tpl) = HTMLTemplateElementCast::to_ref(node) {
+                    // https://github.com/w3c/DOM-Parsing/issues/1
+                    NodeCast::from_ref(&*tpl.Content()).children()
+                } else {
+                    node.children()
+                };
+
+                for handle in children {
                     try!(handle.r().serialize(serializer, IncludeNode));
                 }
 
diff --git a/tests/wpt/metadata/html/semantics/scripting-1/the-template-element/innerhtml-on-templates/innerhtml.html.ini b/tests/wpt/metadata/html/semantics/scripting-1/the-template-element/innerhtml-on-templates/innerhtml.html.ini
index 493cbae40ef..450eda06a9e 100644
--- a/tests/wpt/metadata/html/semantics/scripting-1/the-template-element/innerhtml-on-templates/innerhtml.html.ini
+++ b/tests/wpt/metadata/html/semantics/scripting-1/the-template-element/innerhtml-on-templates/innerhtml.html.ini
@@ -1,11 +1,5 @@
 [innerhtml.html]
   type: testharness
-  [innerHTML of template element replaces all referenced by the content attribute]
-    expected: FAIL
-
-  [innerHTML of template element replaces all referenced by the content attribute. Test nested template]
-    expected: FAIL
-
   [innerHTML of template element replaces all referenced by the content attribute. Test loading of HTML document from a file]
     expected: FAIL
 
diff --git a/tests/wpt/metadata/html/semantics/scripting-1/the-template-element/serializing-html-templates/outerhtml.html.ini b/tests/wpt/metadata/html/semantics/scripting-1/the-template-element/serializing-html-templates/outerhtml.html.ini
deleted file mode 100644
index 6fff7134d8f..00000000000
--- a/tests/wpt/metadata/html/semantics/scripting-1/the-template-element/serializing-html-templates/outerhtml.html.ini
+++ /dev/null
@@ -1,11 +0,0 @@
-[outerhtml.html]
-  type: testharness
-  [Template contents should be serialized instead of template element if serializing template element]
-    expected: FAIL
-
-  [Template contents should be serialized instead of template element if serializing template element. Test nested template]
-    expected: FAIL
-
-  [Template contents should be serialized instead of template element if serializing template element. Test serializing whole document]
-    expected: FAIL
-