diff --git a/bower.json b/bower.json
index f6ebb2c..37f1fd1 100644
--- a/bower.json
+++ b/bower.json
@@ -1,6 +1,6 @@
 {
   "name": "angular-ui-sortable",
-  "version": "0.12.5",
+  "version": "0.12.6",
   "description": "This directive allows you to jQueryUI Sortable.",
   "author": "https://github.com/angular-ui/ui-sortable/graphs/contributors",
   "license": "MIT",
diff --git a/package.json b/package.json
index 95b3993..f5e4c51 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "angular-ui-sortable",
-  "version": "0.12.5",
+  "version": "0.12.6",
   "description": "This directive allows you to jQueryUI Sortable.",
   "author": "https://github.com/angular-ui/ui-sortable/graphs/contributors",
   "license": "MIT",
diff --git a/src/sortable.js b/src/sortable.js
index 15c27d8..2687640 100644
--- a/src/sortable.js
+++ b/src/sortable.js
@@ -23,6 +23,11 @@ angular.module('ui.sortable', [])
             return first;
           }
 
+          function hasSortingHelper (element) {
+            var helperOption = element.sortable('option','helper');
+            return helperOption === 'clone' || typeof helperOption === 'function';
+          }
+
           var opts = {};
 
           var callbacks = {
@@ -120,7 +125,7 @@ angular.module('ui.sortable', [])
               // the start and stop of repeat sections and sortable doesn't
               // respect their order (even if we cancel, the order of the
               // comments are still messed up).
-              if (element.sortable('option','helper') === 'clone') {
+              if (hasSortingHelper(element)) {
                 // restore all the savedNodes except .ui-sortable-helper element
                 // (which is placed last). That way it will be garbage collected.
                 savedNodes = savedNodes.not(savedNodes.last());
@@ -155,7 +160,8 @@ angular.module('ui.sortable', [])
               } else {
                 // if the item was not moved, then restore the elements
                 // so that the ngRepeat's comment are correct.
-                if((!('dropindex' in ui.item.sortable) || ui.item.sortable.isCanceled()) && element.sortable('option','helper') !== 'clone') {
+                if ((!('dropindex' in ui.item.sortable) || ui.item.sortable.isCanceled()) &&
+                    !hasSortingHelper(element)) {
                   savedNodes.appendTo(element);
                 }
               }
diff --git a/test/sortable.e2e.multi.spec.js b/test/sortable.e2e.multi.spec.js
index 43eb2ba..3a16df7 100644
--- a/test/sortable.e2e.multi.spec.js
+++ b/test/sortable.e2e.multi.spec.js
@@ -263,6 +263,89 @@ describe('uiSortable', function() {
       });
     });
 
+    it('should work when "helper: function" option is used', function() {
+      inject(function($compile, $rootScope) {
+        var elementTop, elementBottom;
+        elementTop = $compile('<ul ui-sortable="opts" class="cross-sortable" ng-model="itemsTop"><li ng-repeat="item in itemsTop" id="s-top-{{$index}}" class="sortable-item">{{ item }}</li></ul>')($rootScope);
+        elementBottom = $compile('<ul ui-sortable="opts" class="cross-sortable" ng-model="itemsBottom"><li ng-repeat="item in itemsBottom" id="s-bottom-{{$index}}" class="sortable-item">{{ item }}</li></ul>')($rootScope);
+        $rootScope.$apply(function() {
+          $rootScope.itemsTop = ['Top One', 'Top Two', 'Top Three'];
+          $rootScope.itemsBottom = ['Bottom One', 'Bottom Two', 'Bottom Three'];
+          $rootScope.opts = {
+            helper: function (e, item) {
+              return item.clone().text('helper');
+            },
+            connectWith: '.cross-sortable'
+          };
+        });
+
+        host.append(elementTop).append(elementBottom);
+
+        var li1 = elementTop.find(':eq(0)');
+        var li2 = elementBottom.find(':eq(0)');
+        var dy = EXTRA_DY_PERCENTAGE * li1.outerHeight() + (li2.position().top - li1.position().top);
+        li1.simulate('drag', { dy: dy });
+        expect($rootScope.itemsTop).toEqual(['Top Two', 'Top Three']);
+        expect($rootScope.itemsBottom).toEqual(['Bottom One', 'Top One', 'Bottom Two', 'Bottom Three']);
+        expect($rootScope.itemsTop).toEqual(listContent(elementTop));
+        expect($rootScope.itemsBottom).toEqual(listContent(elementBottom));
+
+        li1 = elementBottom.find(':eq(1)');
+        li2 = elementTop.find(':eq(1)');
+        dy = -EXTRA_DY_PERCENTAGE * li1.outerHeight() - (li1.position().top - li2.position().top);
+        li1.simulate('drag', { dy: dy });
+        expect($rootScope.itemsTop).toEqual(['Top Two', 'Top One', 'Top Three']);
+        expect($rootScope.itemsBottom).toEqual(['Bottom One', 'Bottom Two', 'Bottom Three']);
+        expect($rootScope.itemsTop).toEqual(listContent(elementTop));
+        expect($rootScope.itemsBottom).toEqual(listContent(elementBottom));
+
+        $(elementTop).remove();
+        $(elementBottom).remove();
+      });
+    });
+
+    it('should work when "placeholder" and "helper: function" options are used', function() {
+      inject(function($compile, $rootScope) {
+        var elementTop, elementBottom;
+        elementTop = $compile('<ul ui-sortable="opts" class="cross-sortable" ng-model="itemsTop"><li ng-repeat="item in itemsTop" id="s-top-{{$index}}" class="sortable-item">{{ item }}</li></ul>')($rootScope);
+        elementBottom = $compile('<ul ui-sortable="opts" class="cross-sortable" ng-model="itemsBottom"><li ng-repeat="item in itemsBottom" id="s-bottom-{{$index}}" class="sortable-item">{{ item }}</li></ul>')($rootScope);
+        $rootScope.$apply(function() {
+          $rootScope.itemsTop = ['Top One', 'Top Two', 'Top Three'];
+          $rootScope.itemsBottom = ['Bottom One', 'Bottom Two', 'Bottom Three'];
+          $rootScope.opts = {
+            helper: function (e, item) {
+              return item.clone().text('helper');
+            },
+            placeholder: 'sortable-item-placeholder',
+            connectWith: '.cross-sortable'
+          };
+        });
+
+        host.append(elementTop).append(elementBottom);
+
+        var li1 = elementTop.find(':eq(0)');
+        var li2 = elementBottom.find(':eq(0)');
+        var dy = EXTRA_DY_PERCENTAGE * li1.outerHeight() + (li2.position().top - li1.position().top);
+        li1.simulate('drag', { dy: dy });
+        expect($rootScope.itemsTop).toEqual(['Top Two', 'Top Three']);
+        expect($rootScope.itemsBottom).toEqual(['Bottom One', 'Top One', 'Bottom Two', 'Bottom Three']);
+        expect($rootScope.itemsTop).toEqual(listContent(elementTop));
+        expect($rootScope.itemsBottom).toEqual(listContent(elementBottom));
+
+        li1 = elementBottom.find(':eq(1)');
+        li2 = elementTop.find(':eq(1)');
+        dy = -EXTRA_DY_PERCENTAGE * li1.outerHeight() - (li1.position().top - li2.position().top);
+        li1.simulate('drag', { dy: dy });
+        expect($rootScope.itemsTop).toEqual(['Top Two', 'Top One', 'Top Three']);
+        expect($rootScope.itemsBottom).toEqual(['Bottom One', 'Bottom Two', 'Bottom Three']);
+        expect($rootScope.itemsTop).toEqual(listContent(elementTop));
+        expect($rootScope.itemsBottom).toEqual(listContent(elementBottom));
+
+        $(elementTop).remove();
+        $(elementBottom).remove();
+      });
+    });
+
   });
 
 });
\ No newline at end of file
diff --git a/test/sortable.e2e.spec.js b/test/sortable.e2e.spec.js
index f6dc6bb..77c463a 100644
--- a/test/sortable.e2e.spec.js
+++ b/test/sortable.e2e.spec.js
@@ -429,6 +429,130 @@ describe('uiSortable', function() {
       });
     });
 
+    it('should work when "helper: function" option is used', function() {
+      inject(function($compile, $rootScope) {
+        var element;
+        element = $compile('<ul ui-sortable="opts" ng-model="items"><li ng-repeat="item in items" id="s-{{$index}}" class="sortable-item">{{ item }}</li></ul>')($rootScope);
+        $rootScope.$apply(function() {
+          $rootScope.opts = {
+            helper: function (e, item) {
+              return item.clone().text('helper');
+            }
+          };
+          $rootScope.items = ['One', 'Two', 'Three'];
+        });
+
+        host.append(element);
+
+        var li = element.find(':eq(1)');
+        var dy = (1 + EXTRA_DY_PERCENTAGE) * li.outerHeight();
+        li.simulate('drag', { dy: dy });
+        expect($rootScope.items).toEqual(['One', 'Three', 'Two']);
+        expect($rootScope.items).toEqual(listContent(element));
+
+        li = element.find(':eq(1)');
+        dy = -(1 + EXTRA_DY_PERCENTAGE) * li.outerHeight();
+        li.simulate('drag', { dy: dy });
+        expect($rootScope.items).toEqual(['Three', 'One', 'Two']);
+        expect($rootScope.items).toEqual(listContent(element));
+
+        $(element).remove();
+      });
+    });
+
+    it('should work when "helper: function" option is used and a drag is reverted', function() {
+      inject(function($compile, $rootScope) {
+        var element;
+        element = $compile('<ul ui-sortable="opts" ng-model="items"><li ng-repeat="item in items" id="s-{{$index}}" class="sortable-item">{{ item }}</li></ul>')($rootScope);
+        $rootScope.$apply(function() {
+          $rootScope.opts = {
+            helper: function (e, item) {
+              return item.clone().text('helper');
+            }
+          };
+          $rootScope.items = ['One', 'Two', 'Three'];
+        });
+
+        host.append(element);
+
+        var li = element.find(':eq(0)');
+        var dy = (2 + EXTRA_DY_PERCENTAGE) * li.outerHeight();
+        li.simulate('dragAndRevert', { dy: dy });
+        expect($rootScope.items).toEqual(['One', 'Two', 'Three']);
+        expect($rootScope.items).toEqual(listContent(element));
+
+        li = element.find(':eq(0)');
+        dy = (1 + EXTRA_DY_PERCENTAGE) * li.outerHeight();
+        li.simulate('drag', { dy: dy });
+        expect($rootScope.items).toEqual(['Two', 'One', 'Three']);
+        expect($rootScope.items).toEqual(listContent(element));
+
+        li = element.find(':eq(1)');
+        dy = (1 + EXTRA_DY_PERCENTAGE) * li.outerHeight();
+        li.simulate('drag', { dy: dy });
+        expect($rootScope.items).toEqual(['Two', 'Three', 'One']);
+        expect($rootScope.items).toEqual(listContent(element));
+
+        li = element.find(':eq(1)');
+        dy = (1 + EXTRA_DY_PERCENTAGE) * li.outerHeight();
+        li.simulate('drag', { dy: dy });
+        expect($rootScope.items).toEqual(['Two', 'One', 'Three']);
+        expect($rootScope.items).toEqual(listContent(element));
+
+        $(element).remove();
+      });
+    });
+
+    it('should work when "helper: function" and "placeholder" options are used together.', function() {
+      inject(function($compile, $rootScope) {
+        var element;
+        element = $compile('<ul ui-sortable="opts" ng-model="items"><li ng-repeat="item in items" id="s-{{$index}}" class="sortable-item">{{ item }}</li></ul>')($rootScope);
+        $rootScope.$apply(function() {
+          $rootScope.opts = {
+            helper: function (e, item) {
+              return item.clone().text('helper');
+            },
+            placeholder: 'sortable-item'
+          };
+          $rootScope.items = ['One', 'Two', 'Three'];
+        });
+
+        host.append(element);
+
+        var li = element.find(':eq(0)');
+        var dy = (2 + EXTRA_DY_PERCENTAGE) * li.outerHeight();
+        li.simulate('dragAndRevert', { dy: dy });
+        expect($rootScope.items).toEqual(['One', 'Two', 'Three']);
+        expect($rootScope.items).toEqual(listContent(element));
+
+        li = element.find(':eq(0)');
+        dy = (1 + EXTRA_DY_PERCENTAGE) * li.outerHeight();
+        li.simulate('drag', { dy: dy });
+        expect($rootScope.items).toEqual(['Two', 'One', 'Three']);
+        expect($rootScope.items).toEqual(listContent(element));
+
+        li = element.find(':eq(1)');
+        dy = (1 + EXTRA_DY_PERCENTAGE) * li.outerHeight();
+        li.simulate('drag', { dy: dy });
+        expect($rootScope.items).toEqual(['Two', 'Three', 'One']);
+        expect($rootScope.items).toEqual(listContent(element));
+
+        li = element.find(':eq(1)');
+        dy = (1 + EXTRA_DY_PERCENTAGE) * li.outerHeight();
+        li.simulate('dragAndRevert', { dy: dy });
+        expect($rootScope.items).toEqual(['Two', 'Three', 'One']);
+        expect($rootScope.items).toEqual(listContent(element));
+
+        li = element.find(':eq(1)');
+        dy = (1 + EXTRA_DY_PERCENTAGE) * li.outerHeight();
+        li.simulate('drag', { dy: dy });
+        expect($rootScope.items).toEqual(['Two', 'One', 'Three']);
+        expect($rootScope.items).toEqual(listContent(element));
+
+        $(element).remove();
+      });
+    });
+
   });
 
 });
\ No newline at end of file