diff --git a/src/manipulation.js b/src/manipulation.js
index 00e31201..325f303a 100644
--- a/src/manipulation.js
+++ b/src/manipulation.js
@@ -248,10 +248,8 @@ jQuery.fn.extend({
 
 		} else if ( jQuery.isFunction( value ) ) {
 			this.each(function(i){
-				var self = jQuery(this), old = self.html();
-				self.empty().append(function(){
-					return value.call( this, i, old );
-				});
+				var self = jQuery(this);
+				self.html( value.call(this, i, self.html()) );
 			});
 
 		} else {
diff --git a/test/unit/manipulation.js b/test/unit/manipulation.js
index 2fc6f188..7b4f4d15 100644
--- a/test/unit/manipulation.js
+++ b/test/unit/manipulation.js
@@ -955,6 +955,17 @@ test("html(String)", function() {
 
 test("html(Function)", function() {
 	testHtml(functionReturningObj);
+
+	expect(33);
+
+	QUnit.reset();
+
+	jQuery("#main").html(function(){
+		return jQuery(this).text();
+	});
+
+	ok( !/</.test( jQuery("#main").html() ), "Replace html with text." );
+	ok( jQuery("#main").html().length > 0, "Make sure text exists." );
 });
 
 test("html(Function) with incoming value", function() {