diff --git a/flow/compiler.js b/flow/compiler.js
index bc40b45c4..bdd013198 100644
--- a/flow/compiler.js
+++ b/flow/compiler.js
@@ -84,10 +84,6 @@ declare type ASTElement = {
   ref?: string,
   refInFor?: boolean,
 
-  render?: true,
-  renderMethod?: ?string,
-  renderArgs?: ?string,
-
   if?: string,
   ifProcessed?: boolean,
   else?: true,
diff --git a/src/compiler/codegen.js b/src/compiler/codegen.js
index b7322e163..382a35eec 100644
--- a/src/compiler/codegen.js
+++ b/src/compiler/codegen.js
@@ -45,8 +45,6 @@ function genElement (el: ASTElement): string {
     return genIf(el)
   } else if (el.tag === 'template' && !el.slotTarget) {
     return genChildren(el) || 'void 0'
-  } else if (el.tag === 'render') {
-    return genRender(el)
   } else if (el.tag === 'slot') {
     return genSlot(el)
   } else {
@@ -245,18 +243,6 @@ function genText (text: ASTText | ASTExpression): string {
     : '_t(' + JSON.stringify(text.text) + ')'
 }
 
-function genRender (el: ASTElement): string {
-  if (!el.renderMethod) {
-    return 'void 0'
-  }
-  const children = genChildren(el)
-  return `${el.renderMethod}(${
-    el.renderArgs || ''
-  }${
-    children ? (el.renderArgs ? ',' : '') + children : ''
-  })`
-}
-
 function genSlot (el: ASTElement): string {
   const slot = `$slots[${el.slotName || '"default"'}]`
   const children = genChildren(el)
diff --git a/src/compiler/parser/index.js b/src/compiler/parser/index.js
index 5c060746f..219e891eb 100644
--- a/src/compiler/parser/index.js
+++ b/src/compiler/parser/index.js
@@ -123,7 +123,6 @@ export function parse (
         // determine whether this is a plain element after
         // removing if/for/once attributes
         element.plain = !element.key && !attrs.length
-        processRender(element)
         processSlot(element)
         processComponent(element)
         for (let i = 0; i < transforms.length; i++) {
@@ -145,8 +144,8 @@ export function parse (
           }
           if (element.attrsMap.hasOwnProperty('v-for')) {
             warn(
-              'Cannot use v-for on component root element because it renders ' +
-              'multiple elements:\n' + template
+              'Cannot use v-for on stateful component root element because ' +
+              'it renders multiple elements:\n' + template
             )
           }
         }
@@ -306,24 +305,6 @@ function processOnce (el) {
   }
 }
 
-function processRender (el) {
-  if (el.tag === 'render') {
-    el.render = true
-    el.renderMethod = el.attrsMap[':method'] || el.attrsMap['v-bind:method']
-    el.renderArgs = el.attrsMap[':args'] || el.attrsMap['v-bind:args']
-    if (process.env.NODE_ENV !== 'production') {
-      if (el.attrsMap.method) {
-        warn('<render> method should use a dynamic binding, e.g. `:method="..."`.')
-      } else if (!el.renderMethod) {
-        warn('method attribute is required on <render>.')
-      }
-      if (el.attrsMap.args) {
-        warn('<render> args should use a dynamic binding, e.g. `:args="..."`.')
-      }
-    }
-  }
-}
-
 function processSlot (el) {
   if (el.tag === 'slot') {
     el.slotName = getBindingAttr(el, 'name')
diff --git a/test/unit/features/render/render.spec.js b/test/unit/features/render/render.spec.js
deleted file mode 100644
index c3bd42cd4..000000000
--- a/test/unit/features/render/render.spec.js
+++ /dev/null
@@ -1,134 +0,0 @@
-import Vue from 'vue'
-
-describe('Render', () => {
-  it('render with basic usage', () => {
-    const vm = new Vue({
-      template: `<div><render :method="onRender" :args="'hello'"></render></div>`,
-      methods: {
-        onRender (args) { return args }
-      }
-    }).$mount()
-    expect(vm.$el.tagName).toBe('DIV')
-    expect(vm.$el.innerHTML).toBe('hello')
-  })
-
-  it('should render with $createElement', () => {
-    const vm = new Vue({
-      template: `<div><render :method="onRender" :args="message"></render></div>`,
-      data: { message: 'hello world' },
-      methods: {
-        onRender (args) {
-          const h = this.$createElement
-          return h('div', { class: 'message' }, [
-            h('p', {}, [args])
-          ])
-        }
-      }
-    }).$mount()
-    expect(vm.$el.childNodes[0].tagName).toBe('DIV')
-    expect(vm.$el.childNodes[0]).toHaveClass('message')
-    expect(vm.$el.childNodes[0].childNodes[0].tagName).toBe('P')
-    expect(vm.$el.childNodes[0].childNodes[0].textContent).toBe('hello world')
-  })
-
-  it('should render with inline elements', () => {
-    const vm = new Vue({
-      template: `
-        <render :method="onRender" :args="message">
-          <ul>
-            <li v-for="n in 5"></li>
-          </ul>
-        </render>
-      `,
-      data: { message: 'hello world' },
-      methods: {
-        onRender (args, children) {
-          const ul = children[0]
-          ul.children.forEach((li, i) => {
-            li.data = { staticClass: `class${i}` }
-          })
-          return ul
-        }
-      }
-    }).$mount()
-    const ul = vm.$el
-    expect(ul.tagName).toBe('UL')
-    for (let i = 0; i < ul.children.length; i++) {
-      const li = ul.children[i]
-      expect(li.tagName).toBe('LI')
-      expect(li).toHaveClass(`class${i}`)
-    }
-  })
-
-  it('should render component', done => {
-    const modal = {
-      template: `
-        <div class="modal-container">
-          <div class="modal-header">
-            <h1 class="modal-title">{{title}}</h1>
-          </div>
-          <div class="modal-body">
-            <slot name="body">default body</slot>
-          </div>
-          <div class="modal-footer">
-            <button class="modal-action-close" @click="$emit('close')">close</div>
-          </div>
-        </div>
-      `,
-      props: {
-        title: {
-          type: String, default: 'title1'
-        }
-      }
-    }
-    const vm = new Vue({
-      template: `<div><render :method="onRenderModal" :args="title"></render></div>`,
-      data: {
-        shown: true,
-        title: 'hello modal'
-      },
-      components: { modal },
-      methods: {
-        onRenderModal (title) {
-          return this.$createElement('modal', {
-            props: { title: title },
-            on: { close: this.onCloseModal },
-            directives: [{ name: 'show', value: this.shown }]
-          })
-        },
-        onCloseModal () { this.shown = false }
-      }
-    }).$mount()
-    expect(vm.$el.querySelector('.modal-title').textContent).toBe(vm.title)
-    vm.$el.querySelector('.modal-action-close').click()
-    waitForUpdate(() => {
-      expect(vm.shown).toBe(false)
-    }).then(() => {
-      expect(vm.$el.querySelector('.modal-container').style.display).toBe('none')
-    }).then(done)
-  })
-
-  it('should warn no method', () => {
-    new Vue({
-      template: '<render></render>'
-    }).$mount()
-    expect('method attribute is required on <render>').toHaveBeenWarned()
-  })
-
-  it('should warn method/arg usage without v-bind', () => {
-    new Vue({
-      template: '<render method="a"></render>'
-    }).$mount()
-    expect('<render> method should use a dynamic binding').toHaveBeenWarned()
-  })
-
-  it('should warn non dynamic args', () => {
-    new Vue({
-      template: '<render :method="a" args="b"></render>',
-      methods: {
-        a: () => {}
-      }
-    }).$mount()
-    expect('<render> args should use a dynamic binding').toHaveBeenWarned()
-  })
-})
diff --git a/test/unit/modules/compiler/codegen.spec.js b/test/unit/modules/compiler/codegen.spec.js
index c3873b754..5dc1122d1 100644
--- a/test/unit/modules/compiler/codegen.spec.js
+++ b/test/unit/modules/compiler/codegen.spec.js
@@ -113,28 +113,6 @@ describe('codegen', () => {
     )
   })
 
-  it('generate render tag', () => {
-    assertCodegen(
-      '<render :method="onRender" :args="params"></render>',
-      `with(this){return onRender(params)}`
-    )
-  })
-
-  it('generate render tag that have children', () => {
-    assertCodegen(
-      '<render :method="onRender"><p>hello</p></render>',
-      `with(this){return onRender([_m(0)])}`,
-      [`with(this){return _h(_e('p'),[_t("hello")])}`]
-    )
-  })
-
-  it('generate render tag with `method` is not dynamic binding', () => {
-    assertCodegen(
-      '<render method="onRender"></render>',
-      `with(this){return void 0}`
-    )
-  })
-
   it('generate single slot', () => {
     assertCodegen(
       '<slot></slot>',
diff --git a/test/unit/modules/compiler/parser.spec.js b/test/unit/modules/compiler/parser.spec.js
index ea86eb7fa..268ae6a48 100644
--- a/test/unit/modules/compiler/parser.spec.js
+++ b/test/unit/modules/compiler/parser.spec.js
@@ -89,7 +89,7 @@ describe('parser', () => {
 
   it('warn v-for on root element', () => {
     parse('<div v-for="item in items"></div>', baseOptions)
-    expect('Cannot use v-for on component root element').toHaveBeenWarned()
+    expect('Cannot use v-for on stateful component root element').toHaveBeenWarned()
   })
 
   it('v-pre directive', () => {
@@ -162,28 +162,6 @@ describe('parser', () => {
     expect(ast.once).toBe(true)
   })
 
-  it('render tag syntax', () => {
-    const ast = parse('<render :method="onRender", :args="params"></render>', baseOptions)
-    expect(ast.render).toBe(true)
-    expect(ast.renderMethod).toBe('onRender')
-    expect(ast.renderArgs).toBe('params')
-  })
-
-  it('render tag invalid syntax', () => {
-    // method nothing
-    const invalidAst1 = parse('<render></render>', baseOptions)
-    expect('method attribute is required on <render>.').toHaveBeenWarned()
-    expect(invalidAst1.render).toBe(true)
-    expect(invalidAst1.renderMethod).toBeUndefined()
-    expect(invalidAst1.renderArgs).toBeUndefined()
-    // method no dynamic binding
-    parse('<render method="onRender"></render>', baseOptions)
-    expect('<render> method should use a dynamic binding').toHaveBeenWarned()
-    // args no dynamic binding
-    parse('<render :method="onRender" args="params"></render>', baseOptions)
-    expect('<render> args should use a dynamic binding').toHaveBeenWarned()
-  })
-
   it('slot tag single syntax', () => {
     const ast = parse('<slot></slot>', baseOptions)
     expect(ast.tag).toBe('slot')