diff --git a/mithril.js b/mithril.js
index 9595a439..e0b464cc 100644
--- a/mithril.js
+++ b/mithril.js
@@ -727,13 +727,6 @@
 			cached.children.nodes = []
 		}
 
-		// edge case: setting value on <select> doesn't work before children
-		// exist, so set it again after children have been created
-		if (data.tag === "select" && "value" in data.attrs) {
-			setAttributes(node, data.tag, {value: data.attrs.value}, {},
-				namespace)
-		}
-
 		return cached
 	}
 
@@ -888,6 +881,13 @@
 				controllers)
 		}
 
+		// edge case: setting value on <select> doesn't work before children
+		// exist, so set it again after children have been created/updated
+		if (data.tag === "select" && "value" in data.attrs) {
+			setAttributes(node, data.tag, {value: data.attrs.value}, {},
+				namespace)
+		}
+
 		if (!isNew && shouldReattach === true && node != null) {
 			insertNode(parentElement, node, index)
 		}
diff --git a/test/mithril.render.js b/test/mithril.render.js
index 9cd0c95c..c2c56b5a 100644
--- a/test/mithril.render.js
+++ b/test/mithril.render.js
@@ -1567,5 +1567,15 @@ describe("m.render()", function () {
 			expect(root.childNodes[0].innerHTML)
 				.to.equal('<option value="">aaa</option>')
 		})
+
+		it("sets correct <select> value", function () {
+			var root = document.createElement("div")
+			m.render(root, m("select", {value: "b"}, [
+				m("option", {value: "a"}, "aaa"),
+				m("option", {value: "b"}, "bbb")
+			]))
+			// This works only if select value is set after its options exist.
+			expect(root.childNodes[0].value).to.equal("b")
+		})
 	})
 })