diff --git a/src/runtime/portal.ts b/src/runtime/portal.ts
index 4723a8d7..e06b1009 100644
--- a/src/runtime/portal.ts
+++ b/src/runtime/portal.ts
@@ -1,4 +1,4 @@
-import { onWillUnmount } from "./lifecycle_hooks";
+import { onMounted, onWillUnmount } from "./lifecycle_hooks";
 import { BDom, text, VNode } from "./blockdom";
 import { Component } from "./component";
 import { OwlError } from "./error_handling";
@@ -6,60 +6,55 @@ import { OwlError } from "./error_handling";
 const VText: any = text("").constructor;
 
 class VPortal extends VText implements Partial<VNode<VPortal>> {
-  //   selector: string;
-  realBDom: BDom | null;
+  content: BDom | null;
+  selector: string;
   target: HTMLElement | null = null;
 
-  constructor(selector: string, realBDom: BDom) {
+  constructor(selector: string, content: BDom) {
     super("");
     this.selector = selector;
-    this.realBDom = realBDom;
+    this.content = content;
   }
+
   mount(parent: HTMLElement, anchor: ChildNode) {
     super.mount(parent, anchor);
     this.target = document.querySelector(this.selector) as any;
-    if (!this.target) {
-      let el: any = this.el;
-      while (el && el.parentElement instanceof HTMLElement) {
-        el = el.parentElement;
-      }
-      this.target = el && el.querySelector(this.selector);
-      if (!this.target) {
-        throw new OwlError("invalid portal target");
-      }
+    if (this.target) {
+      this.content!.mount(this.target!, null);
+    } else {
+      this.content!.mount(parent, anchor);
     }
-    this.realBDom!.mount(this.target!, null);
   }
 
   beforeRemove() {
-    this.realBDom!.beforeRemove();
+    this.content!.beforeRemove();
   }
   remove() {
-    if (this.realBDom) {
+    if (this.content) {
       super.remove();
-      this.realBDom!.remove();
-      this.realBDom = null;
+      this.content!.remove();
+      this.content = null;
     }
   }
 
   patch(other: VPortal) {
     super.patch(other);
-    if (this.realBDom) {
-      this.realBDom.patch(other.realBDom!, true);
+    if (this.content) {
+      this.content.patch(other.content!, true);
     } else {
-      this.realBDom = other.realBDom;
-      this.realBDom!.mount(this.target!, null);
+      this.content = other.content;
+      this.content!.mount(this.target!, null);
     }
   }
 }
 
 /**
- * <t t-slot="default"/>
+ * kind of similar to <t t-slot="default"/>, but it wraps it around a VPortal
  */
 export function portalTemplate(app: any, bdom: any, helpers: any) {
   let { callSlot } = helpers;
-  return function template(ctx: any, node: any, key = "") {
-    return callSlot(ctx, node, key, "default", false, null);
+  return function template(ctx: any, node: any, key = ""): any {
+    return new VPortal(ctx.props.target, callSlot(ctx, node, key, "default", false, null));
   };
 }
 
@@ -73,13 +68,23 @@ export class Portal extends Component {
   };
 
   setup() {
-    const node = this.__owl__;
-    const renderFn = node.renderFn;
-    node.renderFn = () => new VPortal(this.props.target, renderFn());
-    onWillUnmount(() => {
-      if (node.bdom) {
-        node.bdom.remove();
+    const node: any = this.__owl__;
+
+    onMounted(() => {
+      const portal: VPortal = node.bdom;
+      if (!portal.target) {
+        const target: HTMLElement = document.querySelector(this.props.target);
+        if (target) {
+          portal.content!.moveBefore(target, null);
+        } else {
+          throw new OwlError("invalid portal target");
+        }
       }
     });
+
+    onWillUnmount(() => {
+      const portal: VPortal = node.bdom;
+      portal.remove();
+    });
   }
 }
diff --git a/tests/misc/__snapshots__/portal.test.ts.snap b/tests/misc/__snapshots__/portal.test.ts.snap
index dca22dd3..fd61e0f5 100644
--- a/tests/misc/__snapshots__/portal.test.ts.snap
+++ b/tests/misc/__snapshots__/portal.test.ts.snap
@@ -155,6 +155,44 @@ exports[`Portal Add and remove portals with t-foreach inside div 1`] = `
 }"
 `;
 
+exports[`Portal Child and Portal 1`] = `
+"function anonymous(app, bdom, helpers
+) {
+  let { text, createBlock, list, multi, html, toggler, comment } = bdom;
+  const comp1 = app.createComponent(\`Child\`, true, false, false, true);
+  
+  let block3 = createBlock(\`<div class=\\"portal\\"/>\`);
+  
+  return function template(ctx, node, key = \\"\\") {
+    const b2 = comp1({}, key + \`__1\`, node, this, null);
+    const b3 = block3();
+    return multi([b2, b3]);
+  }
+}"
+`;
+
+exports[`Portal Child and Portal 2`] = `
+"function anonymous(app, bdom, helpers
+) {
+  let { text, createBlock, list, multi, html, toggler, comment } = bdom;
+  const Portal = app.Portal;
+  const comp1 = app.createComponent(null, false, true, false, false);
+  
+  let block2 = createBlock(\`<span>child</span>\`);
+  let block3 = createBlock(\`<span>portal</span>\`);
+  
+  function slot1(ctx, node, key = \\"\\") {
+    return block3();
+  }
+  
+  return function template(ctx, node, key = \\"\\") {
+    const b2 = block2();
+    const b4 = comp1({target: '.portal',slots: {'default': {__render: slot1, __ctx: ctx}}}, key + \`__1\`, node, ctx, Portal);
+    return multi([b2, b4]);
+  }
+}"
+`;
+
 exports[`Portal Portal composed with t-slot 1`] = `
 "function anonymous(app, bdom, helpers
 ) {
@@ -515,6 +553,44 @@ exports[`Portal lifecycle hooks of portal sub component are properly called 2`]
 }"
 `;
 
+exports[`Portal portal and Child 1`] = `
+"function anonymous(app, bdom, helpers
+) {
+  let { text, createBlock, list, multi, html, toggler, comment } = bdom;
+  const comp1 = app.createComponent(\`Child\`, true, false, false, true);
+  
+  let block2 = createBlock(\`<div class=\\"portal\\"/>\`);
+  
+  return function template(ctx, node, key = \\"\\") {
+    const b2 = block2();
+    const b3 = comp1({}, key + \`__1\`, node, this, null);
+    return multi([b2, b3]);
+  }
+}"
+`;
+
+exports[`Portal portal and Child 2`] = `
+"function anonymous(app, bdom, helpers
+) {
+  let { text, createBlock, list, multi, html, toggler, comment } = bdom;
+  const Portal = app.Portal;
+  const comp1 = app.createComponent(null, false, true, false, false);
+  
+  let block2 = createBlock(\`<span>child</span>\`);
+  let block3 = createBlock(\`<span>portal</span>\`);
+  
+  function slot1(ctx, node, key = \\"\\") {
+    return block3();
+  }
+  
+  return function template(ctx, node, key = \\"\\") {
+    const b2 = block2();
+    const b4 = comp1({target: '.portal',slots: {'default': {__render: slot1, __ctx: ctx}}}, key + \`__1\`, node, ctx, Portal);
+    return multi([b2, b4]);
+  }
+}"
+`;
+
 exports[`Portal portal could have dynamically no content 1`] = `
 "function anonymous(app, bdom, helpers
 ) {
diff --git a/tests/misc/portal.test.ts b/tests/misc/portal.test.ts
index 103aa669..33fdbe45 100644
--- a/tests/misc/portal.test.ts
+++ b/tests/misc/portal.test.ts
@@ -276,7 +276,7 @@ describe("Portal", () => {
 
     expect(error!).toBeDefined();
     expect(error!.message).toBe("invalid portal target");
-    expect(fixture.innerHTML).toBe(`<div></div>`);
+    expect(fixture.innerHTML).toBe(``);
     expect(mockConsoleWarn).toBeCalledTimes(1);
   });
 
@@ -874,6 +874,48 @@ describe("Portal", () => {
     await nextTick();
     expect(fixture.innerHTML).toBe('<div id="outside"></div><div></div>');
   });
+
+  test("Child and Portal", async () => {
+    class Child extends Component {
+      static template = xml`
+        <span>child</span>
+        <t t-portal="'.portal'"><span>portal</span></t>`;
+    }
+    class Parent extends Component {
+      static template = xml`
+        <t>
+          <Child/>
+          <div class="portal"></div>
+        </t>`;
+
+      static components = { Child };
+    }
+    await mount(Parent, fixture);
+    expect(fixture.innerHTML).toBe(
+      '<span>child</span><div class="portal"></div><span>portal</span>'
+    );
+  });
+
+  test("portal and Child", async () => {
+    class Child extends Component {
+      static template = xml`
+        <span>child</span>
+        <t t-portal="'.portal'"><span>portal</span></t>`;
+    }
+    class Parent extends Component {
+      static template = xml`
+        <t>
+          <div class="portal"></div>
+          <Child/>
+        </t>`;
+
+      static components = { Child };
+    }
+    await mount(Parent, fixture);
+    expect(fixture.innerHTML).toBe(
+      '<div class="portal"><span>portal</span></div><span>child</span>'
+    );
+  });
 });
 
 describe("Portal: UI/UX", () => {