diff --git a/spec/rivets/functional.js b/spec/rivets/functional.js
index 0e52fefd1..19603acc3 100644
--- a/spec/rivets/functional.js
+++ b/spec/rivets/functional.js
@@ -63,7 +63,6 @@ describe('Functional', function() {
       it('should set the text content of the element', function() {
         el.setAttribute('data-text', 'data:foo');
         rivets.bind(el, bindData);
-        debugger
         expect(el.textContent || el.innerText).toBe(data.get('foo'));
       });
 
@@ -99,7 +98,7 @@ describe('Functional', function() {
         expect(input.value).toBe(data.get('foo'));
       });
     });
-
+    
     describe('Multiple', function() {
       it('should bind a list of multiple elements', function() {
         el.setAttribute('data-html', 'data:foo');
@@ -178,13 +177,118 @@ describe('Functional', function() {
         expect(el.getElementsByTagName('li')[3]).toHaveTheTextContent('last');
       });
 
-      it('should allow binding to the iterated element index', function() {
-        listItem.setAttribute('data-index', 'index');
+      it('should unbind and remove elements bound to items removed from the beginning of the collection', function () {
+        listItem.setAttribute('data-text', 'item.name');
+        rivets.bind(el, bindData);
+        expect(el.getElementsByTagName('li').length).toBe(2);
+        var collection = data.get('items').slice();
+        collection.shift();
+        data.set({items: collection});
+        // 2 -> 1
+        expect(el.getElementsByTagName('li').length).toBe(collection.length);
+        expect(el.getElementsByTagName('li')[0]).toHaveTheTextContent('b');
+
+        collection = collection.slice();
+        collection.push({name: 'c'}, {name: 'd'}, {name: 'e'});
+        data.set({items: collection});
+        expect(el.getElementsByTagName('li').length).toBe(collection.length);
+        expect(el.textContent).toBe('bcde');
+        collection = collection.slice();
+        collection.shift();
+        data.set({items: collection});
+        // 4 -> 3
+        expect(el.getElementsByTagName('li').length).toBe(collection.length);
+        expect(el.textContent).toBe('cde');
+      });
+
+      it('should unbind and remove elements bound to items removed from the end of the collection', function () {
+        listItem.setAttribute('data-text', 'item.name');
         rivets.bind(el, bindData);
-        expect(el.getElementsByTagName('li')[0].getAttribute('index')).toBe('0')
-        expect(el.getElementsByTagName('li')[1].getAttribute('index')).toBe('1')
+        expect(el.getElementsByTagName('li').length).toBe(2);
+        var collection = data.get('items').slice();
+        collection.pop();
+        data.set({items: collection});
+        // 2 -> 1
+        expect(el.getElementsByTagName('li').length).toBe(collection.length);
+        expect(el.getElementsByTagName('li')[0]).toHaveTheTextContent('a');
+
+        collection = collection.slice();
+        collection.push({name: 'b'}, {name: 'c'}, {name: 'd'});
+        data.set({items: collection});
+        expect(el.getElementsByTagName('li').length).toBe(collection.length);
+        expect(el.textContent).toBe('abcd');
+        collection = collection.slice();
+        collection.pop();
+        data.set({items: collection});
+        // 4 -> 3
+        expect(el.getElementsByTagName('li').length).toBe(collection.length);
+        expect(el.textContent).toBe('abc');
       });
 
+      it('should create a new element at the beginning of the container element when a new item is prepended to the collection', function () {
+          listItem.setAttribute('data-text', 'item.name');
+          rivets.bind(el, bindData);
+          expect(el.getElementsByTagName('li')[0]).toHaveTheTextContent('a');
+          var collection = data.get('items').slice();
+          collection.unshift({name: 'start'});
+          data.set({items: collection});
+          expect(el.getElementsByTagName('li')[0]).toHaveTheTextContent('start');
+      });
+
+      it('should create a new element at the end of the container element when a new item is appended to the collection', function () {
+          listItem.setAttribute('data-text', 'item.name');
+          rivets.bind(el, bindData);
+          var collection = data.get('items').slice();
+          collection.push({name: 'end'});
+          data.set({items: collection});
+          expect(el.getElementsByTagName('li').length).toBe(3);
+          expect(el.getElementsByTagName('li')[0]).toHaveTheTextContent('a');
+          expect(el.getElementsByTagName('li')[1]).toHaveTheTextContent('b');
+          expect(el.getElementsByTagName('li')[2]).toHaveTheTextContent('end');
+      });
+
+      it('should sort the bound elements according to order of items in the collection', function () {
+        listItem.setAttribute('data-text', 'item.name');
+        var collection = data.get('items').slice();
+        collection.push({name: 'e'}, {name: 'c'}, {name: 'd'});
+        data.set({items: collection});
+        rivets.bind(el, bindData);
+        expect(el.getElementsByTagName('li').length).toBe(collection.length);
+        expect(el.textContent).toBe('abecd');
+
+        // sort alphabetically
+        collection = collection.slice().sort(function (a, b) {
+            return a.name < b.name ? -1 : 1;
+        });
+        data.set({items: collection});
+        expect(el.textContent).toBe('abcde');
+
+        // reverse order
+        collection = collection.slice().reverse();
+        data.set({items: collection});
+        expect(el.textContent).toBe('edcba');
+
+        // move start to end
+        collection = collection.slice();
+        collection.push(collection.shift());
+        data.set({items: collection});
+        expect(el.textContent).toBe('dcbae');
+
+        // move end to start
+        collection = collection.slice();
+        collection.unshift(collection.pop());
+        data.set({items: collection});
+        expect(el.textContent).toBe('edcba');
+      });
+
+      it('should replace all bound elements to match the new collection and sort them according to order of items in the collection', function () {
+        listItem.setAttribute('data-text', 'item.name');
+        rivets.bind(el, bindData);
+        expect(el.textContent).toBe('ab');
+        data.set({items: [{name: 'e'}, {name: 'p'}, {name: 'r'}]});
+        expect(el.getElementsByTagName('li').length).toBe(3);
+        expect(el.textContent).toBe('epr');
+      });
     });
   });
 
diff --git a/src/binders.coffee b/src/binders.coffee
index 55929ffc5..8bd78b182 100644
--- a/src/binders.coffee
+++ b/src/binders.coffee
@@ -164,25 +164,51 @@ Rivets.binders['each-*'] =
   routine: (el, collection) ->
     modelName = @args[0]
     collection = collection or []
-
-    if @iterated.length > collection.length
-      for i in Array @iterated.length - collection.length
-        view = @iterated.pop()
-        view.unbind()
-        @marker.parentNode.removeChild view.els[0]
+    # mirror is a live copy of the list of all `modelName` models bound to this view
+    iterated_mirror = (iter.models[modelName] for iter in @iterated)
+    element_list = []
 
     for model, index in collection
-      data = {index}
-      data[modelName] = model
+      iter_model = iterated_mirror[index]
+      # optimize the quickest check
+      if model is iter_model
+        continue
+
+      # see if we can find this model
+      iter_index = iterated_mirror.indexOf model
+      if ~ iter_index
+        # found it
+        # we already know that iter_index isnt index
+        # check if this item in @iterated was removed
+        if !~ collection.indexOf iter_model
+          # this item was removed
+          view = @iterated.splice(index, 1)[0]
+          view.unbind()
+          @marker.parentNode.removeChild view.els[0]
+          # reflect in the mirror
+          iterated_mirror.splice index, 1
+          # correct iter_index if needed
+          if index < iter_index
+            iter_index -= 1
+
+        # check that this index was not corrected by last removal
+        # or was removed itself from the views list
+        if iter_index isnt index and iterated_mirror[iter_index]
+          # move the view to the right index
+          view = @iterated.splice(iter_index, 1)[0]
+          @iterated.splice index, 0, view
+          # remove the view's element and queue it for inserting later
+          element_list.push { el: @marker.parentNode.removeChild(view.els[0]), idx: index }
+          # also fix the mirror's order
+          iterated_mirror.splice(index, 0, iterated_mirror.splice(iter_index, 1)[0])
 
-      if not @iterated[index]?
-        for key, model of @view.models
-          data[key] ?= model
+      else
+        # it's a new model in the collection, so bind it
+        data = {}
+        data[modelName] = model
 
-        previous = if @iterated.length
-          @iterated[@iterated.length - 1].els[0]
-        else
-          @marker
+        for key, view_model of @view.models
+          data[key] ?= view_model
 
         options =
           binders: @view.options.binders
@@ -196,24 +222,79 @@ Rivets.binders['each-*'] =
         template = el.cloneNode true
         view = new Rivets.View(template, data, options)
         view.bind()
-        @iterated.push view
-
-        @marker.parentNode.insertBefore template, previous.nextSibling
-      else if @iterated[index].models[modelName] isnt model
-        @iterated[index].update data
+        @iterated.splice index, 0, view
+
+        # also add it to the mirror list so it mirrors indices properly
+        iterated_mirror.splice index, 0, model
+
+        element_list.push { el: template, idx: index }
+
+    # unbind views that no longer exist in collection
+    while @iterated.length > collection.length
+      view = @iterated.pop()
+      view.unbind()
+      @marker.parentNode.removeChild view.els[0]
+
+    # if we have elements in queue, put them back into the DOM
+    if element_list.length
+      element_list.sort (a, b) ->
+        if a.idx < b.idx then -1 else 1
+
+      buffers = []
+      last_buffer = null
+      # create buffers
+      for element in element_list
+        if not buffers.length
+          last_buffer = new ElementBuffer(element.el, element.idx)
+          buffers.push last_buffer
+        else
+          if not last_buffer.add element.el, element.idx
+            last_buffer = new ElementBuffer(element.el, element.idx)
+            buffers.push last_buffer
+
+      # insert buffers into DOM
+      for buffer in buffers
+        index = buffer.first_index
+        previous = if index and @iterated[index - 1]
+            @iterated[index - 1].els[0]
+          else
+            @marker
+        @marker.parentNode.insertBefore buffer.fragment, previous.nextSibling
 
     if el.nodeName is 'OPTION'
       for binding in @view.bindings
         if binding.el is @marker.parentNode and binding.type is 'value'
           binding.sync()
 
-  update: (models) ->
-    data = {}
-
-    for key, model of models
-      data[key] = model unless key is @args[0]
-
-    view.update data for view in @iterated
+class ElementBuffer
+  constructor: (element, @last_index) ->
+    @fragment = element
+    @first_index = @last_index
+    @length = 1
+
+  add: (element, index) ->
+    if index is @first_index - 1
+      @insert element, true
+      @first_index = index
+      true
+    else if index is @last_index + 1
+      @insert element
+      @last_index = index
+      true
+    else
+      false
+
+  insert: (element, preppend) ->
+    if not @wrapped
+      fragment = document.createDocumentFragment()
+      fragment.appendChild @fragment
+      @fragment = fragment
+      @wrapped = true
+    if preppend
+      @fragment.insertBefore element, @fragment.firstChild
+    else
+      @fragment.appendChild element
+    @length += 1
 
 # Adds or removes the class from the element when value is true or false.
 Rivets.binders['class-*'] = (el, value) ->