diff --git a/src/platforms/web/runtime/directives/show.js b/src/platforms/web/runtime/directives/show.js
index 57ac3ed3..0dd9ec77 100644
--- a/src/platforms/web/runtime/directives/show.js
+++ b/src/platforms/web/runtime/directives/show.js
@@ -3,16 +3,25 @@
 import { isIE9 } from 'web/util/index'
 import { enter, leave } from '../modules/transition'
 
+// recursively search for possible transition defined inside the component root
+function locateNode (vnode: VNode): VNodeWithData {
+  return vnode.child && (!vnode.data || !vnode.data.transition)
+    ? locateNode(vnode.child._vnode)
+    : vnode
+}
+
 export default {
   bind (el: HTMLElement, { value }: VNodeDirective, vnode: VNodeWithData) {
-    const transition = vnode.data.transition
+    vnode = locateNode(vnode)
+    const transition = vnode.data && vnode.data.transition
     if (value && transition && transition.appear && !isIE9) {
       enter(vnode)
     }
     el.style.display = value ? '' : 'none'
   },
   update (el: HTMLElement, { value }: VNodeDirective, vnode: VNodeWithData) {
-    const transition = vnode.data.transition
+    vnode = locateNode(vnode)
+    const transition = vnode.data && vnode.data.transition
     if (transition && !isIE9) {
       if (value) {
         enter(vnode)
diff --git a/test/unit/features/transition/transition.spec.js b/test/unit/features/transition/transition.spec.js
index 8d406138..b47ac04d 100644
--- a/test/unit/features/transition/transition.spec.js
+++ b/test/unit/features/transition/transition.spec.js
@@ -449,6 +449,42 @@ if (!isIE9) {
       }).then(done)
     })
 
+    it('transition with v-show, inside child component', done => {
+      const vm = new Vue({
+        template: `
+          <div>
+            <test v-show="ok"></test>
+          </div>
+        `,
+        data: { ok: true },
+        components: {
+          test: {
+            template: `<transition name="test"><div class="test">foo</div></transition>`
+          }
+        }
+      }).$mount(el)
+
+      // should not apply transition on initial render by default
+      expect(vm.$el.textContent).toBe('foo')
+      expect(vm.$el.children[0].style.display).toBe('')
+      vm.ok = false
+      waitForUpdate(() => {
+        expect(vm.$el.children[0].className).toBe('test test-leave test-leave-active')
+      }).thenWaitFor(nextFrame).then(() => {
+        expect(vm.$el.children[0].className).toBe('test test-leave-active')
+      }).thenWaitFor(duration + 10).then(() => {
+        expect(vm.$el.children[0].style.display).toBe('none')
+        vm.ok = true
+      }).then(() => {
+        expect(vm.$el.children[0].style.display).toBe('')
+        expect(vm.$el.children[0].className).toBe('test test-enter test-enter-active')
+      }).thenWaitFor(nextFrame).then(() => {
+        expect(vm.$el.children[0].className).toBe('test test-enter-active')
+      }).thenWaitFor(duration + 10).then(() => {
+        expect(vm.$el.children[0].className).toBe('test')
+      }).then(done)
+    })
+
     it('leaveCancelled (v-show only)', done => {
       const spy = jasmine.createSpy('leaveCancelled')
       const vm = new Vue({
@@ -668,6 +704,44 @@ if (!isIE9) {
       }).then(done)
     })
 
+    it('transition inside child component', done => {
+      const vm = new Vue({
+        template: `
+          <div>
+            <test v-if="ok" class="test"></test>
+          </div>
+        `,
+        data: { ok: true },
+        components: {
+          test: {
+            template: `
+              <transition>
+                <div>foo</div>
+              </transition>
+            `
+          }
+        }
+      }).$mount(el)
+
+      // should not apply transition on initial render by default
+      expect(vm.$el.innerHTML).toBe('<div class="test">foo</div>')
+      vm.ok = false
+      waitForUpdate(() => {
+        expect(vm.$el.children[0].className).toBe('test v-leave v-leave-active')
+      }).thenWaitFor(nextFrame).then(() => {
+        expect(vm.$el.children[0].className).toBe('test v-leave-active')
+      }).thenWaitFor(duration + 10).then(() => {
+        expect(vm.$el.children.length).toBe(0)
+        vm.ok = true
+      }).then(() => {
+        expect(vm.$el.children[0].className).toBe('test v-enter v-enter-active')
+      }).thenWaitFor(nextFrame).then(() => {
+        expect(vm.$el.children[0].className).toBe('test v-enter-active')
+      }).thenWaitFor(duration + 10).then(() => {
+        expect(vm.$el.children[0].className).toBe('test')
+      }).then(done)
+    })
+
     it('custom transition higher-order component', done => {
       const vm = new Vue({
         template: '<div><my-transition><div v-if="ok" class="test">foo</div></my-transition></div>',