diff --git a/src/components/dialog/dialog.spec.ts b/src/components/dialog/dialog.spec.ts
index 56723c2b15ce..e0898379d0fc 100644
--- a/src/components/dialog/dialog.spec.ts
+++ b/src/components/dialog/dialog.spec.ts
@@ -13,7 +13,8 @@ import {
   ChangeDetectorRef,
 } from '@angular/core';
 import {MdDialog} from './dialog';
-import {OVERLAY_PROVIDERS, OVERLAY_CONTAINER_TOKEN} from '@angular2-material/core/overlay/overlay';
+import {OVERLAY_PROVIDERS} from '@angular2-material/core/overlay/overlay';
+import {OverlayContainer} from '@angular2-material/core/overlay/overlay-container';
 import {MdDialogConfig} from './dialog-config';
 import {MdDialogRef} from './dialog-ref';
 
@@ -31,10 +32,14 @@ describe('MdDialog', () => {
     addProviders([
       OVERLAY_PROVIDERS,
       MdDialog,
-      {provide: OVERLAY_CONTAINER_TOKEN, useFactory: () => {
-        overlayContainerElement = document.createElement('div');
-        return overlayContainerElement;
-      }}
+      {provide: OverlayContainer, useFactory: () => {
+        return {
+          getContainerElement: () => {
+            overlayContainerElement = document.createElement('div');
+            return overlayContainerElement;
+          }
+        };
+      }},
     ]);
   });
 
diff --git a/src/components/menu/menu-trigger.ts b/src/components/menu/menu-trigger.ts
index e0972f412901..e4db939cb310 100644
--- a/src/components/menu/menu-trigger.ts
+++ b/src/components/menu/menu-trigger.ts
@@ -71,7 +71,7 @@ export class MdMenuTrigger implements AfterViewInit, OnDestroy {
   }
 
   destroyMenu(): void {
-    this._overlayRef.dispose();
+    if (this._overlayRef) { this._overlayRef.dispose(); }
   }
 
   // set state rather than toggle to support triggers sharing a menu
diff --git a/src/components/tooltip/tooltip.spec.ts b/src/components/tooltip/tooltip.spec.ts
index 9a06708ae188..d6cb38d1c0c5 100644
--- a/src/components/tooltip/tooltip.spec.ts
+++ b/src/components/tooltip/tooltip.spec.ts
@@ -8,11 +8,12 @@ import {
     beforeEachProviders,
 } from '@angular/core/testing';
 import {TestComponentBuilder, ComponentFixture} from '@angular/compiler/testing';
-import {Component, provide, DebugElement} from '@angular/core';
+import {Component, DebugElement} from '@angular/core';
 import {By} from '@angular/platform-browser';
 import {MD_TOOLTIP_DIRECTIVES, TooltipPosition, MdTooltip} from
     '@angular2-material/tooltip/tooltip';
-import {OVERLAY_PROVIDERS, OVERLAY_CONTAINER_TOKEN} from '@angular2-material/core/overlay/overlay';
+import {OVERLAY_PROVIDERS} from '@angular2-material/core/overlay/overlay';
+import {OverlayContainer} from '@angular2-material/core/overlay/overlay-container';
 
 describe('MdTooltip', () => {
   let builder: TestComponentBuilder;
@@ -20,12 +21,14 @@ describe('MdTooltip', () => {
 
   beforeEachProviders(() => [
     OVERLAY_PROVIDERS,
-    provide(OVERLAY_CONTAINER_TOKEN, {
-      useFactory: () => {
-        overlayContainerElement = document.createElement('div');
-        return overlayContainerElement;
-      }
-    })
+    {provide: OverlayContainer, useFactory: () => {
+      return {
+        getContainerElement: () => {
+          overlayContainerElement = document.createElement('div');
+          return overlayContainerElement;
+        }
+      };
+    }},
   ]);
 
   beforeEach(inject([TestComponentBuilder], (tcb: TestComponentBuilder) => {
diff --git a/src/core/core.ts b/src/core/core.ts
index cffa1091703f..956b1df7810b 100644
--- a/src/core/core.ts
+++ b/src/core/core.ts
@@ -17,7 +17,8 @@ export {
 export {DomPortalHost} from './portal/dom-portal-host';
 
 // Overlay
-export {Overlay, OVERLAY_CONTAINER_TOKEN, OVERLAY_PROVIDERS} from './overlay/overlay';
+export {Overlay, OVERLAY_PROVIDERS} from './overlay/overlay';
+export {OverlayContainer} from './overlay/overlay-container';
 export {OverlayRef} from './overlay/overlay-ref';
 export {OverlayState} from './overlay/overlay-state';
 export {
diff --git a/src/core/overlay/overlay-container.ts b/src/core/overlay/overlay-container.ts
index e5e49599f5b2..156812a43c96 100644
--- a/src/core/overlay/overlay-container.ts
+++ b/src/core/overlay/overlay-container.ts
@@ -1,12 +1,29 @@
-
-
 /**
- * Create the overlay container element, which is simply a div
- * with the 'md-overlay-container' class on the document body.
+ * The OverlayContainer is the container in which all overlays will load.
+ * It should be provided in the root component to ensure it is properly shared.
  */
-export function createOverlayContainer(): Element {
-  let container = document.createElement('div');
-  container.classList.add('md-overlay-container');
-  document.body.appendChild(container);
-  return container;
+export class OverlayContainer {
+  private _containerElement: HTMLElement;
+
+  /**
+   * This method returns the overlay container element.  It will lazily
+   * create the element the first time  it is called to facilitate using
+   * the container in non-browser environments.
+   * @returns {HTMLElement} the container element
+   */
+  getContainerElement(): HTMLElement {
+    if (!this._containerElement) { this._createContainer(); }
+    return this._containerElement;
+  }
+
+  /**
+   * Create the overlay container element, which is simply a div
+   * with the 'md-overlay-container' class on the document body.
+   */
+  private _createContainer(): void {
+    let container = document.createElement('div');
+    container.classList.add('md-overlay-container');
+    document.body.appendChild(container);
+    this._containerElement = container;
+  }
 }
diff --git a/src/core/overlay/overlay-directives.spec.ts b/src/core/overlay/overlay-directives.spec.ts
index f146609297f1..4ca27565f1d5 100644
--- a/src/core/overlay/overlay-directives.spec.ts
+++ b/src/core/overlay/overlay-directives.spec.ts
@@ -8,12 +8,12 @@ import {
 import {TestComponentBuilder, ComponentFixture} from '@angular/compiler/testing';
 import {Component, ViewChild} from '@angular/core';
 import {ConnectedOverlayDirective, OverlayOrigin} from './overlay-directives';
-import {OVERLAY_CONTAINER_TOKEN, Overlay} from './overlay';
+import {Overlay} from './overlay';
+import {OverlayContainer} from './overlay-container';
 import {ViewportRuler} from './position/viewport-ruler';
 import {OverlayPositionBuilder} from './position/overlay-position-builder';
 import {ConnectedPositionStrategy} from './position/connected-position-strategy';
 
-
 describe('Overlay directives', () => {
   let builder: TestComponentBuilder;
   let overlayContainerElement: HTMLElement;
@@ -24,9 +24,13 @@ describe('Overlay directives', () => {
       Overlay,
       OverlayPositionBuilder,
       ViewportRuler,
-      {provide: OVERLAY_CONTAINER_TOKEN, useFactory: () => {
-        overlayContainerElement = document.createElement('div');
-        return overlayContainerElement;
+      {provide: OverlayContainer, useFactory: () => {
+        return {
+          getContainerElement: () => {
+           overlayContainerElement = document.createElement('div');
+            return overlayContainerElement;
+          }
+        };
       }},
     ]);
   });
diff --git a/src/core/overlay/overlay.scss b/src/core/overlay/overlay.scss
index 8dbb2408f378..d04ea0f48f72 100644
--- a/src/core/overlay/overlay.scss
+++ b/src/core/overlay/overlay.scss
@@ -1,5 +1,7 @@
 // TODO(jelbourn): change from the `md` prefix to something else for everything in the toolkit.
 
+@import 'variables';
+
 /** The overlay-container is an invisible element which contains all individual overlays. */
 .md-overlay-container {
   position: absolute;
@@ -19,5 +21,5 @@
   position: absolute;
   pointer-events: auto;
   box-sizing: border-box;
-  z-index: 1;
+  z-index: $z-index-overlay;
 }
diff --git a/src/core/overlay/overlay.spec.ts b/src/core/overlay/overlay.spec.ts
index c3494570cf2b..ec04528aae20 100644
--- a/src/core/overlay/overlay.spec.ts
+++ b/src/core/overlay/overlay.spec.ts
@@ -12,7 +12,8 @@ import {
 } from '@angular/core';
 import {TemplatePortalDirective} from '../portal/portal-directives';
 import {TemplatePortal, ComponentPortal} from '../portal/portal';
-import {Overlay, OVERLAY_CONTAINER_TOKEN} from './overlay';
+import {Overlay} from './overlay';
+import {OverlayContainer} from './overlay-container';
 import {OverlayRef} from './overlay-ref';
 import {OverlayState} from './overlay-state';
 import {PositionStrategy} from './position/position-strategy';
@@ -32,9 +33,14 @@ describe('Overlay', () => {
       Overlay,
       OverlayPositionBuilder,
       ViewportRuler,
-      {provide: OVERLAY_CONTAINER_TOKEN, useFactory: () => {
-        overlayContainerElement = document.createElement('div');
-        return overlayContainerElement;
+      {provide: OverlayContainer, useFactory: () => {
+        return {
+          getContainerElement: () => {
+            if (overlayContainerElement) { return overlayContainerElement; }
+            overlayContainerElement = document.createElement('div');
+            return overlayContainerElement;
+          }
+        };
       }}
     ]);
   });
diff --git a/src/core/overlay/overlay.ts b/src/core/overlay/overlay.ts
index 0471f5084607..934806eb83a0 100644
--- a/src/core/overlay/overlay.ts
+++ b/src/core/overlay/overlay.ts
@@ -1,7 +1,5 @@
 import {
   ComponentResolver,
-  OpaqueToken,
-  Inject,
   Injectable,
 } from '@angular/core';
 import {OverlayState} from './overlay-state';
@@ -10,10 +8,7 @@ import {OverlayRef} from './overlay-ref';
 
 import {OverlayPositionBuilder} from './position/overlay-position-builder';
 import {ViewportRuler} from './position/viewport-ruler';
-
-
-/** Token used to inject the DOM element that serves as the overlay container. */
-export const OVERLAY_CONTAINER_TOKEN = new OpaqueToken('overlayContainer');
+import {OverlayContainer} from './overlay-container';
 
 /** Next overlay unique ID. */
 let nextUniqueId = 0;
@@ -32,18 +27,9 @@ let defaultState = new OverlayState();
  */
  @Injectable()
 export class Overlay {
-  private _overlayContainerElement: HTMLElement;
-
-  constructor(
-      @Inject(OVERLAY_CONTAINER_TOKEN) overlayContainerElement: any,
-      private _componentResolver: ComponentResolver,
-      private _positionBuilder: OverlayPositionBuilder) {
-
-    // We inject the container as `any` because the constructor signature cannot reference
-    // browser globals (HTMLElement) on non-browser environments, since having a class decorator
-    // causes TypeScript to preserve the constructor signature types.
-    this._overlayContainerElement = overlayContainerElement;
-  }
+  constructor(private _overlayContainer: OverlayContainer,
+              private _componentResolver: ComponentResolver,
+              private _positionBuilder: OverlayPositionBuilder) {}
 
   /**
    * Creates an overlay.
@@ -71,7 +57,7 @@ export class Overlay {
     pane.id = `md-overlay-${nextUniqueId++}`;
     pane.classList.add('md-overlay-pane');
 
-    this._overlayContainerElement.appendChild(pane);
+    this._overlayContainer.getContainerElement().appendChild(pane);
 
     return Promise.resolve(pane);
   }
diff --git a/src/core/style/_variables.scss b/src/core/style/_variables.scss
index 55877597d460..d69d5ad651cc 100644
--- a/src/core/style/_variables.scss
+++ b/src/core/style/_variables.scss
@@ -8,9 +8,11 @@ $md-font-family: Roboto, 'Helvetica Neue', sans-serif !default;
 // Media queries
 $md-xsmall: 'max-width: 600px';
 
+// TODO: Revisit all z-indices before beta
 // z-index master list
 $z-index-fab: 20 !default;
 $z-index-drawer: 100 !default;
+$z-index-overlay: 1000 !default;
 
 // Global constants
 $pi: 3.14159265;
diff --git a/src/demo-app/main.ts b/src/demo-app/main.ts
index b43d71a7119a..e2037c0c6e83 100644
--- a/src/demo-app/main.ts
+++ b/src/demo-app/main.ts
@@ -2,13 +2,10 @@ import {bootstrap} from '@angular/platform-browser-dynamic';
 import {HAMMER_GESTURE_CONFIG} from '@angular/platform-browser';
 import {HTTP_PROVIDERS} from '@angular/http';
 import {disableDeprecatedForms, provideForms} from '@angular/forms';
-
-import {OVERLAY_CONTAINER_TOKEN} from '@angular2-material/core/overlay/overlay';
 import {MdLiveAnnouncer} from '@angular2-material/core/a11y/live-announcer';
-import {createOverlayContainer} from '@angular2-material/core/overlay/overlay-container';
 import {MdGestureConfig} from '@angular2-material/core/gestures/MdGestureConfig';
 import {MdIconRegistry} from '@angular2-material/icon/icon-registry';
-
+import {OverlayContainer} from '@angular2-material/core/overlay/overlay-container';
 import {DemoApp} from './demo-app/demo-app';
 import {DEMO_APP_ROUTE_PROVIDER} from './demo-app/routes';
 
@@ -17,8 +14,8 @@ bootstrap(DemoApp, [
   disableDeprecatedForms(),
   provideForms(),
   MdLiveAnnouncer,
-  {provide: OVERLAY_CONTAINER_TOKEN, useValue: createOverlayContainer()},
   HTTP_PROVIDERS,
+  OverlayContainer,
   MdIconRegistry,
   {provide: HAMMER_GESTURE_CONFIG, useClass: MdGestureConfig},
 ]);
diff --git a/src/e2e-app/main.ts b/src/e2e-app/main.ts
index a86dbf408839..c0511c96fa61 100644
--- a/src/e2e-app/main.ts
+++ b/src/e2e-app/main.ts
@@ -3,13 +3,10 @@ import {HAMMER_GESTURE_CONFIG} from '@angular/platform-browser';
 import {HTTP_PROVIDERS} from '@angular/http';
 import {Renderer} from '@angular/core';
 import {disableDeprecatedForms, provideForms} from '@angular/forms';
-
-import {OVERLAY_CONTAINER_TOKEN} from '@angular2-material/core/overlay/overlay';
 import {MdLiveAnnouncer} from '@angular2-material/core/a11y/live-announcer';
-import {createOverlayContainer} from '@angular2-material/core/overlay/overlay-container';
 import {MdGestureConfig} from '@angular2-material/core/gestures/MdGestureConfig';
 import {MdIconRegistry} from '@angular2-material/icon/icon-registry';
-
+import {OverlayContainer} from '@angular2-material/core/overlay/overlay-container';
 import {E2EApp} from './e2e-app/e2e-app';
 import {E2E_APP_ROUTE_PROVIDER} from './e2e-app/routes';
 
@@ -18,7 +15,7 @@ bootstrap(E2EApp, [
   disableDeprecatedForms(),
   provideForms(),
   MdLiveAnnouncer,
-  {provide: OVERLAY_CONTAINER_TOKEN, useValue: createOverlayContainer()},
+  OverlayContainer,
   HTTP_PROVIDERS,
   MdIconRegistry,
   Renderer,