diff --git a/packages/compiler-core/__tests__/transforms/__snapshots__/vIf.spec.ts.snap b/packages/compiler-core/__tests__/transforms/__snapshots__/vIf.spec.ts.snap
index 498c03d35c6..427c0795cc4 100644
--- a/packages/compiler-core/__tests__/transforms/__snapshots__/vIf.spec.ts.snap
+++ b/packages/compiler-core/__tests__/transforms/__snapshots__/vIf.spec.ts.snap
@@ -14,6 +14,25 @@ return function render() {
 }"
 `;
 
+exports[`compiler: v-if codegen parent is element with fragment root 1`] = `
+"const _Vue = Vue
+
+return function render() {
+  with (this) {
+    const { createVNode: _createVNode, openBlock: _openBlock, createBlock: _createBlock, createCommentVNode: _createCommentVNode, Fragment: _Fragment } = _Vue
+    
+    return (_openBlock(), _createBlock(_Fragment, null, [
+      _createVNode(\\"span\\"),
+      (_openBlock(), _createBlock(\\"div\\", null, [
+        (_openBlock(), ok
+          ? _createBlock(\\"div\\", { key: 0 })
+          : _createCommentVNode(\\"v-if\\", true))
+      ]))
+    ], 64 /* STABLE_FRAGMENT */))
+  }
+}"
+`;
+
 exports[`compiler: v-if codegen template v-if 1`] = `
 "const _Vue = Vue
 
diff --git a/packages/compiler-core/__tests__/transforms/vIf.spec.ts b/packages/compiler-core/__tests__/transforms/vIf.spec.ts
index f50ad66297d..a62654b77f1 100644
--- a/packages/compiler-core/__tests__/transforms/vIf.spec.ts
+++ b/packages/compiler-core/__tests__/transforms/vIf.spec.ts
@@ -4,26 +4,26 @@ import { transformIf } from '../../src/transforms/vIf'
 import { transformElement } from '../../src/transforms/transformElement'
 import { transformSlotOutlet } from '../../src/transforms/transformSlotOutlet'
 import {
+  CallExpression,
+  CommentNode,
+  ConditionalExpression,
+  ElementNode,
   IfNode,
   NodeTypes,
-  ElementNode,
-  TextNode,
-  CommentNode,
-  SimpleExpressionNode,
   SequenceExpression,
-  ConditionalExpression,
-  CallExpression
+  SimpleExpressionNode,
+  TextNode
 } from '../../src/ast'
 import { ErrorCodes } from '../../src/errors'
 import { CompilerOptions, generate } from '../../src'
 import {
-  OPEN_BLOCK,
   CREATE_BLOCK,
+  CREATE_COMMENT,
   FRAGMENT,
   MERGE_PROPS,
-  WITH_DIRECTIVES,
+  OPEN_BLOCK,
   RENDER_SLOT,
-  CREATE_COMMENT
+  WITH_DIRECTIVES
 } from '../../src/runtimeHelpers'
 import { createObjectMatcher } from '../testUtils'
 
@@ -530,6 +530,15 @@ describe('compiler: v-if', () => {
       )
     })
 
+    // #604
+    test('parent is element with fragment root', () => {
+      const { root } = parseWithIfTransform(
+        `<span></span><div><div v-if="ok"/></div>`,
+        { onError: jest.fn() }
+      )
+      expect(generate(root).code).toMatchSnapshot()
+    })
+
     test.todo('with comments')
   })
 })
diff --git a/packages/compiler-core/src/ast.ts b/packages/compiler-core/src/ast.ts
index 4261e738345..959b1e8b5cc 100644
--- a/packages/compiler-core/src/ast.ts
+++ b/packages/compiler-core/src/ast.ts
@@ -1,14 +1,14 @@
 import { isString } from '@vue/shared'
 import { ForParseResult } from './transforms/vFor'
 import {
-  CREATE_VNODE,
-  WITH_DIRECTIVES,
-  RENDER_SLOT,
+  CREATE_BLOCK,
   CREATE_SLOTS,
-  RENDER_LIST,
+  CREATE_VNODE,
+  FRAGMENT,
   OPEN_BLOCK,
-  CREATE_BLOCK,
-  FRAGMENT
+  RENDER_LIST,
+  RENDER_SLOT,
+  WITH_DIRECTIVES
 } from './runtimeHelpers'
 import { PropsExpression } from './transforms/transformElement'
 import { ImportItem } from './transform'
@@ -115,6 +115,7 @@ export interface BaseElementNode extends Node {
   props: Array<AttributeNode | DirectiveNode>
   children: TemplateChildNode[]
   codegenNode:
+    | SequenceExpression
     | CallExpression
     | SimpleExpressionNode
     | CacheExpression
@@ -124,6 +125,7 @@ export interface BaseElementNode extends Node {
 export interface PlainElementNode extends BaseElementNode {
   tagType: ElementTypes.ELEMENT
   codegenNode:
+    | SequenceExpression
     | ElementCodegenNode
     | undefined
     | SimpleExpressionNode // when hoisted
@@ -132,7 +134,11 @@ export interface PlainElementNode extends BaseElementNode {
 
 export interface ComponentNode extends BaseElementNode {
   tagType: ElementTypes.COMPONENT
-  codegenNode: ComponentCodegenNode | undefined | CacheExpression // when cached by v-once
+  codegenNode:
+    | SequenceExpression
+    | ComponentCodegenNode
+    | undefined
+    | CacheExpression // when cached by v-once
 }
 
 export interface SlotOutletNode extends BaseElementNode {
diff --git a/packages/compiler-core/src/transforms/transformElement.ts b/packages/compiler-core/src/transforms/transformElement.ts
index c13e9e4ce09..abf37519800 100644
--- a/packages/compiler-core/src/transforms/transformElement.ts
+++ b/packages/compiler-core/src/transforms/transformElement.ts
@@ -1,39 +1,42 @@
 import { NodeTransform, TransformContext } from '../transform'
 import {
-  NodeTypes,
-  ElementTypes,
-  CallExpression,
-  ObjectExpression,
-  ElementNode,
-  DirectiveNode,
-  ExpressionNode,
   ArrayExpression,
-  createCallExpression,
+  CallExpression,
   createArrayExpression,
+  createCallExpression,
+  createObjectExpression,
   createObjectProperty,
+  createSequenceExpression,
   createSimpleExpression,
-  createObjectExpression,
+  DirectiveNode,
+  ElementNode,
+  ElementTypes,
+  ExpressionNode,
+  NodeTypes,
+  ObjectExpression,
   Property
 } from '../ast'
-import { PatchFlags, PatchFlagNames, isSymbol } from '@vue/shared'
+import { isSymbol, PatchFlagNames, PatchFlags } from '@vue/shared'
 import { createCompilerError, ErrorCodes } from '../errors'
 import {
+  CREATE_BLOCK,
   CREATE_VNODE,
-  WITH_DIRECTIVES,
-  RESOLVE_DIRECTIVE,
+  KEEP_ALIVE,
+  MERGE_PROPS,
+  OPEN_BLOCK,
+  PORTAL,
   RESOLVE_COMPONENT,
+  RESOLVE_DIRECTIVE,
   RESOLVE_DYNAMIC_COMPONENT,
-  MERGE_PROPS,
   TO_HANDLERS,
-  PORTAL,
-  KEEP_ALIVE
+  WITH_DIRECTIVES
 } from '../runtimeHelpers'
 import {
+  findProp,
   getInnerRange,
+  isCoreComponent,
   isVSlot,
-  toValidAssetId,
-  findProp,
-  isCoreComponent
+  toValidAssetId
 } from '../utils'
 import { buildSlots } from './vSlot'
 import { isStaticNode } from './hoistStatic'
@@ -190,8 +193,20 @@ export const transformElement: NodeTransform = (node, context) => {
     }
 
     const { loc } = node
-    const vnode = createCallExpression(context.helper(CREATE_VNODE), args, loc)
-
+    let vnode: ElementNode['codegenNode'] = createCallExpression(
+      context.helper(CREATE_VNODE),
+      args,
+      loc
+    )
+    if (
+      context.root.children[0] !== node &&
+      node.children.find(c => c.type === NodeTypes.IF)
+    ) {
+      vnode = createSequenceExpression([
+        createCallExpression(context.helper(OPEN_BLOCK)),
+        createCallExpression(context.helper(CREATE_BLOCK), args, loc)
+      ])
+    }
     if (runtimeDirectives && runtimeDirectives.length) {
       node.codegenNode = createCallExpression(
         context.helper(WITH_DIRECTIVES),