What is ng-transclude?

Transclude is a setting to tell angular to capture everything that is put inside the directive in the markup and use it somewhere(Where actually the ng-transclude is at) in the directive’s template. Read more about this under Creating a Directive that Wraps Other Elements section on documentation of directives.

If you write a custom directive you use ng-transclude in the directive template to mark the point where you want to insert the contents of the element

angular.module('app', [])
  .directive('hero', function () {
    return {
      restrict: 'E',
      transclude: true,
      scope: { name:'@' },
      template: '<div>' +
                  '<div>{{name}}</div><br>' +
                  '<div ng-transclude></div>' +
                '</div>'
    };
  });

If you put this in your markup

<hero name="superman">Stuff inside the custom directive</hero>

It would show up like:

Superman

Stuff inside the custom directive

Full example :

Index.html

<body ng-app="myApp">
  <div class="AAA">
   <hero name="superman">Stuff inside the custom directive</hero>
</div>
</body>

jscript.js

angular.module('myApp', []).directive('hero', function () {
    return {
      restrict: 'E',
      transclude: true,
      scope: { name:'@' },
      template: '<div>' +
                  '<div>{{name}}</div><br>' +
                  '<div ng-transclude></div>' +
                '</div>'
    };
  });

Output markup

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Visualize :

enter image description here

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