diff --git a/src/demo-app/autocomplete/autocomplete-demo.html b/src/demo-app/autocomplete/autocomplete-demo.html
index d18b8c79f11c..7a68fe7f3839 100644
--- a/src/demo-app/autocomplete/autocomplete-demo.html
+++ b/src/demo-app/autocomplete/autocomplete-demo.html
@@ -2,7 +2,8 @@
 <div [style.height.px]="topHeightCtrl.value"></div>
 <div class="demo-autocomplete">
   <md-card>
-    <div>Reactive value: {{ stateCtrl.value }}</div>
+    Reactive length: {{ reactiveStates.length }}
+    <div>Reactive value: {{ stateCtrl.value | json }}</div>
     <div>Reactive dirty: {{ stateCtrl.dirty }}</div>
 
     <md-input-container>
@@ -11,7 +12,7 @@
 
     <md-card-actions>
       <button md-button (click)="stateCtrl.reset()">RESET</button>
-      <button md-button (click)="stateCtrl.setValue('California')">SET VALUE</button>
+      <button md-button (click)="stateCtrl.setValue(states[10])">SET VALUE</button>
       <button md-button (click)="stateCtrl.enabled ? stateCtrl.disable() : stateCtrl.enable()">
         TOGGLE DISABLED
       </button>
@@ -39,8 +40,8 @@
   </md-card>
 </div>
 
-<md-autocomplete #reactiveAuto="mdAutocomplete">
-  <md-option *ngFor="let state of reactiveStates" [value]="state.name">
+<md-autocomplete #reactiveAuto="mdAutocomplete" [displayWith]="displayFn">
+  <md-option *ngFor="let state of reactiveStates" [value]="state">
     <span>{{ state.name }}</span>
     <span class="demo-secondary-text"> ({{state.code}}) </span>
   </md-option>
@@ -49,6 +50,5 @@
 <md-autocomplete #tdAuto="mdAutocomplete">
   <md-option *ngFor="let state of tdStates" [value]="state.name">
     <span>{{ state.name }}</span>
-    <span class="demo-secondary-text"> ({{state.code}}) </span>
   </md-option>
 </md-autocomplete>
\ No newline at end of file
diff --git a/src/demo-app/autocomplete/autocomplete-demo.scss b/src/demo-app/autocomplete/autocomplete-demo.scss
index 5789ae0ee434..94821e89494d 100644
--- a/src/demo-app/autocomplete/autocomplete-demo.scss
+++ b/src/demo-app/autocomplete/autocomplete-demo.scss
@@ -3,7 +3,7 @@
   flex-flow: row wrap;
 
   md-card {
-    width: 350px;
+    width: 400px;
     margin: 24px;
   }
 
diff --git a/src/demo-app/autocomplete/autocomplete-demo.ts b/src/demo-app/autocomplete/autocomplete-demo.ts
index a67bf1b65462..5c6924b83246 100644
--- a/src/demo-app/autocomplete/autocomplete-demo.ts
+++ b/src/demo-app/autocomplete/autocomplete-demo.ts
@@ -1,6 +1,7 @@
 import {Component, OnDestroy, ViewEncapsulation} from '@angular/core';
 import {FormControl} from '@angular/forms';
 import {Subscription} from 'rxjs/Subscription';
+import 'rxjs/add/operator/startWith';
 
 @Component({
   moduleId: module.id,
@@ -10,7 +11,7 @@ import {Subscription} from 'rxjs/Subscription';
   encapsulation: ViewEncapsulation.None
 })
 export class AutocompleteDemo implements OnDestroy {
-  stateCtrl = new FormControl();
+  stateCtrl: FormControl;
   currentState = '';
   topHeightCtrl = new FormControl(0);
 
@@ -76,9 +77,16 @@ export class AutocompleteDemo implements OnDestroy {
   constructor() {
     this.reactiveStates = this.states;
     this.tdStates = this.states;
+    this.stateCtrl = new FormControl({code: 'CA', name: 'California'});
     this.reactiveValueSub =
-        this.stateCtrl.valueChanges.subscribe(val => this.reactiveStates = this.filterStates(val));
+        this.stateCtrl.valueChanges.startWith('California').subscribe((val) => {
+          const name = typeof val === 'string' || val === null ? val : val.name;
+          this.reactiveStates = this.filterStates(name);
+        });
+  }
 
+  displayFn(value: any): string {
+    return value ? value.name : null;
   }
 
   filterStates(val: string) {
diff --git a/src/lib/autocomplete/autocomplete-trigger.ts b/src/lib/autocomplete/autocomplete-trigger.ts
index e6e74ef328fb..bcf3384e1210 100644
--- a/src/lib/autocomplete/autocomplete-trigger.ts
+++ b/src/lib/autocomplete/autocomplete-trigger.ts
@@ -1,7 +1,14 @@
 import {
-    AfterContentInit, Directive, ElementRef, Input, ViewContainerRef, Optional, OnDestroy
+    AfterContentInit,
+    Directive,
+    ElementRef,
+    forwardRef,
+    Input,
+    Optional,
+    OnDestroy,
+    ViewContainerRef,
 } from '@angular/core';
-import {NgControl} from '@angular/forms';
+import {ControlValueAccessor, NG_VALUE_ACCESSOR} from '@angular/forms';
 import {Overlay, OverlayRef, OverlayState, TemplatePortal} from '../core';
 import {MdAutocomplete} from './autocomplete';
 import {PositionStrategy} from '../core/overlay/position/position-strategy';
@@ -28,6 +35,16 @@ export const AUTOCOMPLETE_OPTION_HEIGHT = 48;
 /** The total height of the autocomplete panel. */
 export const AUTOCOMPLETE_PANEL_HEIGHT = 256;
 
+/**
+ * Provider that allows the autocomplete to register as a ControlValueAccessor.
+ * @docs-private
+ */
+export const MD_AUTOCOMPLETE_VALUE_ACCESSOR: any = {
+  provide: NG_VALUE_ACCESSOR,
+  useExisting: forwardRef(() => MdAutocompleteTrigger),
+  multi: true
+};
+
 @Directive({
   selector: 'input[mdAutocomplete], input[matAutocomplete]',
   host: {
@@ -39,10 +56,13 @@ export const AUTOCOMPLETE_PANEL_HEIGHT = 256;
     '[attr.aria-expanded]': 'panelOpen.toString()',
     '[attr.aria-owns]': 'autocomplete?.id',
     '(focus)': 'openPanel()',
+    '(blur)': '_onTouched()',
+    '(input)': '_onChange($event.target.value)',
     '(keydown)': '_handleKeydown($event)',
-  }
+  },
+  providers: [MD_AUTOCOMPLETE_VALUE_ACCESSOR]
 })
-export class MdAutocompleteTrigger implements AfterContentInit, OnDestroy {
+export class MdAutocompleteTrigger implements AfterContentInit, ControlValueAccessor, OnDestroy {
   private _overlayRef: OverlayRef;
   private _portal: TemplatePortal;
   private _panelOpen: boolean = false;
@@ -54,12 +74,18 @@ export class MdAutocompleteTrigger implements AfterContentInit, OnDestroy {
   private _keyManager: ActiveDescendantKeyManager;
   private _positionStrategy: ConnectedPositionStrategy;
 
+  /** View -> model callback called when value changes */
+  _onChange: (value: any) => {};
+
+  /** View -> model callback called when autocomplete has been touched */
+  _onTouched = () => {};
+
   /* The autocomplete panel to be attached to this trigger. */
   @Input('mdAutocomplete') autocomplete: MdAutocomplete;
 
   constructor(private _element: ElementRef, private _overlay: Overlay,
               private _viewContainerRef: ViewContainerRef,
-              @Optional() private _controlDir: NgControl, @Optional() private _dir: Dir) {}
+              @Optional() private _dir: Dir) {}
 
   ngAfterContentInit() {
     this._keyManager = new ActiveDescendantKeyManager(this.autocomplete.options).withWrap();
@@ -123,6 +149,38 @@ export class MdAutocompleteTrigger implements AfterContentInit, OnDestroy {
     return this._keyManager.activeItem as MdOption;
   }
 
+  /**
+   * Sets the autocomplete's value. Part of the ControlValueAccessor interface
+   * required to integrate with Angular's core forms API.
+   *
+   * @param value New value to be written to the model.
+   */
+  writeValue(value: any): void {
+    Promise.resolve(null).then(() => this._setTriggerValue(value));
+  }
+
+  /**
+   * Saves a callback function to be invoked when the autocomplete's value
+   * changes from user input. Part of the ControlValueAccessor interface
+   * required to integrate with Angular's core forms API.
+   *
+   * @param fn Callback to be triggered when the value changes.
+   */
+  registerOnChange(fn: (value: any) => {}): void {
+    this._onChange = fn;
+  }
+
+  /**
+   * Saves a callback function to be invoked when the autocomplete is blurred
+   * by the user. Part of the ControlValueAccessor interface required
+   * to integrate with Angular's core forms API.
+   *
+   * @param fn Callback to be triggered when the component has been touched.
+   */
+  registerOnTouched(fn: () => {}) {
+    this._onTouched = fn;
+  }
+
   _handleKeydown(event: KeyboardEvent): void {
     if (this.activeOption && event.keyCode === ENTER) {
       this.activeOption._selectViaInteraction();
@@ -178,6 +236,11 @@ export class MdAutocompleteTrigger implements AfterContentInit, OnDestroy {
     }
   }
 
+  private _setTriggerValue(value: any): void {
+    this._element.nativeElement.value =
+        this.autocomplete.displayWith ? this.autocomplete.displayWith(value) : value;
+  }
+
    /**
    * This method closes the panel, and if a value is specified, also sets the associated
    * control to that value. It will also mark the control as dirty if this interaction
@@ -185,10 +248,8 @@ export class MdAutocompleteTrigger implements AfterContentInit, OnDestroy {
    */
   private _setValueAndClose(event: MdOptionSelectEvent | null): void {
     if (event) {
-      this._controlDir.control.setValue(event.source.value);
-      if (event.isUserInput) {
-        this._controlDir.control.markAsDirty();
-      }
+      this._setTriggerValue(event.source.value);
+      this._onChange(event.source.value);
     }
 
     this.closePanel();
diff --git a/src/lib/autocomplete/autocomplete.spec.ts b/src/lib/autocomplete/autocomplete.spec.ts
index 9b62e2d80987..8d39a4536b91 100644
--- a/src/lib/autocomplete/autocomplete.spec.ts
+++ b/src/lib/autocomplete/autocomplete.spec.ts
@@ -11,6 +11,7 @@ import {ENTER, DOWN_ARROW, SPACE, UP_ARROW} from '../core/keyboard/keycodes';
 import {MdOption} from '../core/option/option';
 import {ViewportRuler} from '../core/overlay/position/viewport-ruler';
 import {FakeViewportRuler} from '../core/overlay/position/fake-viewport-ruler';
+import {MdAutocomplete} from './autocomplete';
 
 
 describe('MdAutocomplete', () => {
@@ -201,7 +202,26 @@ describe('MdAutocomplete', () => {
       input = fixture.debugElement.query(By.css('input')).nativeElement;
     });
 
-    it('should fill the text field when an option is selected', () => {
+    it('should update control value as user types with input value', () => {
+      fixture.componentInstance.trigger.openPanel();
+      fixture.detectChanges();
+
+      input.value = 'a';
+      dispatchEvent('input', input);
+      fixture.detectChanges();
+
+      expect(fixture.componentInstance.stateCtrl.value)
+          .toEqual('a', 'Expected control value to be updated as user types.');
+
+      input.value = 'al';
+      dispatchEvent('input', input);
+      fixture.detectChanges();
+
+      expect(fixture.componentInstance.stateCtrl.value)
+          .toEqual('al', 'Expected control value to be updated as user types.');
+    });
+
+    it('should update control value when option is selected with option value', () => {
       fixture.componentInstance.trigger.openPanel();
       fixture.detectChanges();
 
@@ -210,8 +230,126 @@ describe('MdAutocomplete', () => {
       options[1].click();
       fixture.detectChanges();
 
-      expect(input.value)
-          .toContain('California', `Expected text field to fill with selected value.`);
+      expect(fixture.componentInstance.stateCtrl.value)
+          .toEqual({code: 'CA', name: 'California'}, 'Expected control value to be option value.');
+    });
+
+    it('should update control back to string if user types after option is selected', () => {
+      fixture.componentInstance.trigger.openPanel();
+      fixture.detectChanges();
+
+      const options =
+          overlayContainerElement.querySelectorAll('md-option') as NodeListOf<HTMLElement>;
+      options[1].click();
+      fixture.detectChanges();
+
+      input.value = 'Californi';
+      dispatchEvent('input', input);
+      fixture.detectChanges();
+
+      expect(fixture.componentInstance.stateCtrl.value)
+          .toEqual('Californi', 'Expected control value to revert back to string.');
+    });
+
+    it('should fill the text field with display value when an option is selected', async(() => {
+      fixture.whenStable().then(() => {
+        fixture.componentInstance.trigger.openPanel();
+        fixture.detectChanges();
+
+        const options =
+            overlayContainerElement.querySelectorAll('md-option') as NodeListOf<HTMLElement>;
+        options[1].click();
+        fixture.detectChanges();
+
+        fixture.whenStable().then(() => {
+          fixture.detectChanges();
+          expect(input.value)
+              .toContain('California', `Expected text field to fill with selected value.`);
+        });
+      });
+    }));
+
+    it('should fill the text field with value if displayWith is not set', async(() => {
+      fixture.whenStable().then(() => {
+        fixture.componentInstance.trigger.openPanel();
+        fixture.detectChanges();
+
+        fixture.componentInstance.panel.displayWith = null;
+        fixture.componentInstance.options.toArray()[1].value = 'test value';
+        fixture.detectChanges();
+
+        const options =
+            overlayContainerElement.querySelectorAll('md-option') as NodeListOf<HTMLElement>;
+        options[1].click();
+
+        fixture.whenStable().then(() => {
+          fixture.detectChanges();
+          expect(input.value)
+              .toContain('test value', `Expected input to fall back to selected option's value.`);
+        });
+      });
+    }));
+
+    it('should fill the text field correctly if value is set to obj programmatically', async(() => {
+      fixture.whenStable().then(() => {
+        fixture.detectChanges();
+        fixture.componentInstance.stateCtrl.setValue({code: 'AL', name: 'Alabama'});
+
+        fixture.whenStable().then(() => {
+          fixture.detectChanges();
+          expect(input.value)
+              .toContain('Alabama', `Expected input to fill with matching option's viewValue.`);
+        });
+      });
+    }));
+
+    it('should clear the text field if value is reset programmatically', async(() => {
+      fixture.whenStable().then(() => {
+        input.value = 'Alabama';
+        dispatchEvent('input', input);
+        fixture.detectChanges();
+
+        expect(input.value).toEqual('Alabama', `Expected input to start out with a value.`);
+        fixture.componentInstance.stateCtrl.reset();
+
+        fixture.whenStable().then(() => {
+          fixture.detectChanges();
+          expect(input.value).toEqual('', `Expected input value to be empty after reset.`);
+        });
+      })
+    }));
+
+    it('should disable input in view when disabled programmatically', () => {
+      const inputUnderline =
+          fixture.debugElement.query(By.css('.md-input-underline')).nativeElement;
+
+      expect(input.disabled)
+          .toBe(false, `Expected input to start out enabled in view.`);
+      expect(inputUnderline.classList.contains('md-disabled'))
+          .toBe(false, `Expected input underline to start out with normal styles.`);
+
+      fixture.componentInstance.stateCtrl.disable();
+      fixture.detectChanges();
+
+      expect(input.disabled)
+          .toBe(true, `Expected input to be disabled in view when disabled programmatically.`);
+      expect(inputUnderline.classList.contains('md-disabled'))
+          .toBe(true, `Expected input underline to display disabled styles.`);
+    });
+
+
+    it('should mark the autocomplete control as dirty as user types', () => {
+      fixture.componentInstance.trigger.openPanel();
+      fixture.detectChanges();
+      expect(fixture.componentInstance.stateCtrl.dirty)
+          .toBe(false, `Expected control to start out pristine.`);
+
+      input.value = 'a';
+      dispatchEvent('input', input);
+      fixture.detectChanges();
+
+      expect(fixture.componentInstance.stateCtrl.dirty)
+          .toBe(true, `Expected control to become dirty when the user types into the input.`);
     });
 
     it('should mark the autocomplete control as dirty when an option is selected', () => {
@@ -240,6 +378,19 @@ describe('MdAutocomplete', () => {
           .toBe(false, `Expected control to stay pristine if value is set programmatically.`);
     });
 
+    it('should mark the autocomplete control as touched on blur', () => {
+      fixture.componentInstance.trigger.openPanel();
+      fixture.detectChanges();
+      expect(fixture.componentInstance.stateCtrl.touched)
+          .toBe(false, `Expected control to start out untouched.`);
+
+      dispatchEvent('blur', input);
+      fixture.detectChanges();
+
+      expect(fixture.componentInstance.stateCtrl.touched)
+          .toBe(true, `Expected control to become touched on blur.`);
+    });
+
   });
 
   describe('keyboard events', () => {
@@ -353,17 +504,21 @@ describe('MdAutocomplete', () => {
       });
     }));
 
-    it('should fill the text field when an option is selected with ENTER', () => {
-      fixture.componentInstance.trigger.openPanel();
-      fixture.detectChanges();
+    it('should fill the text field when an option is selected with ENTER', async(() => {
+      fixture.whenStable().then(() => {
+        fixture.componentInstance.trigger.openPanel();
+        fixture.detectChanges();
 
-      fixture.componentInstance.trigger._handleKeydown(DOWN_ARROW_EVENT);
-      fixture.componentInstance.trigger._handleKeydown(ENTER_EVENT);
-      fixture.detectChanges();
+        fixture.componentInstance.trigger._handleKeydown(DOWN_ARROW_EVENT);
+        fixture.componentInstance.trigger._handleKeydown(ENTER_EVENT);
 
-      expect(input.value)
-          .toContain('Alabama', `Expected text field to fill with selected value on ENTER.`);
-    });
+        fixture.whenStable().then(() => {
+          fixture.detectChanges();
+          expect(input.value)
+              .toContain('Alabama', `Expected text field to fill with selected value on ENTER.`);
+        });
+      });
+    }));
 
     it('should fill the text field, not select an option, when SPACE is entered', () => {
       fixture.componentInstance.trigger.openPanel();
@@ -614,9 +769,9 @@ describe('MdAutocomplete', () => {
       <input mdInput placeholder="State" [mdAutocomplete]="auto" [formControl]="stateCtrl">
     </md-input-container>
   
-    <md-autocomplete #auto="mdAutocomplete">
-      <md-option *ngFor="let state of filteredStates" [value]="state.name">
-        {{ state.name }} ({{ state.code }}) 
+    <md-autocomplete #auto="mdAutocomplete" [displayWith]="displayFn">
+      <md-option *ngFor="let state of filteredStates" [value]="state">
+        <span> {{ state.code }}: {{ state.name }}  </span>
       </md-option>
     </md-autocomplete>
   `
@@ -627,6 +782,7 @@ class SimpleAutocomplete implements OnDestroy {
   valueSub: Subscription;
 
   @ViewChild(MdAutocompleteTrigger) trigger: MdAutocompleteTrigger;
+  @ViewChild(MdAutocomplete) panel: MdAutocomplete;
   @ViewChildren(MdOption) options: QueryList<MdOption>;
 
   states = [
@@ -643,6 +799,7 @@ class SimpleAutocomplete implements OnDestroy {
     {code: 'WY', name: 'Wyoming'},
   ];
 
+
   constructor() {
     this.filteredStates = this.states;
     this.valueSub = this.stateCtrl.valueChanges.subscribe(val => {
@@ -651,6 +808,10 @@ class SimpleAutocomplete implements OnDestroy {
     });
   }
 
+  displayFn(value: any): string {
+    return value ? value.name : value;
+  }
+
   ngOnDestroy() {
     this.valueSub.unsubscribe();
   }
@@ -658,6 +819,7 @@ class SimpleAutocomplete implements OnDestroy {
 }
 
 
+
 /**
  * TODO: Move this to core testing utility until Angular has event faking
  * support.
diff --git a/src/lib/autocomplete/autocomplete.ts b/src/lib/autocomplete/autocomplete.ts
index 792478fbbbe3..be29e2136efe 100644
--- a/src/lib/autocomplete/autocomplete.ts
+++ b/src/lib/autocomplete/autocomplete.ts
@@ -2,6 +2,7 @@ import {
   Component,
   ContentChildren,
   ElementRef,
+  Input,
   QueryList,
   TemplateRef,
   ViewChild,
@@ -33,6 +34,8 @@ export class MdAutocomplete {
   @ViewChild('panel') panel: ElementRef;
   @ContentChildren(MdOption) options: QueryList<MdOption>;
 
+  @Input() displayWith: (value: any) => string;
+
   /** Unique ID to be used by autocomplete trigger's "aria-owns" property. */
   id: string = `md-autocomplete-${_uniqueAutocompleteIdCounter++}`;
 
@@ -41,7 +44,9 @@ export class MdAutocomplete {
    * options below the fold, as they are not actually being focused when active.
    */
   _setScrollTop(scrollTop: number): void {
-    this.panel.nativeElement.scrollTop = scrollTop;
+    if (this.panel) {
+      this.panel.nativeElement.scrollTop = scrollTop;
+    }
   }
 
   /** Sets a class on the panel based on its position (used to set y-offset). */