diff --git a/src/lib/chips/chip-list.spec.ts b/src/lib/chips/chip-list.spec.ts
index e4ef2f7d2de0..e9e8a9c5755d 100644
--- a/src/lib/chips/chip-list.spec.ts
+++ b/src/lib/chips/chip-list.spec.ts
@@ -279,7 +279,7 @@ describe('MdChipList', () => {
 
       describe('when the input has focus', () => {
 
-        it('should focus the last chip when press DELETE', () => {
+        it('should not focus the last chip when press DELETE', () => {
           let nativeInput = fixture.nativeElement.querySelector('input');
           let DELETE_EVENT: KeyboardEvent =
               createKeyboardEvent('keydown', DELETE, nativeInput);
@@ -292,8 +292,8 @@ describe('MdChipList', () => {
           chipListInstance._keydown(DELETE_EVENT);
           fixture.detectChanges();
 
-          // It focuses the last chip
-          expect(manager.activeItemIndex).toEqual(chips.length - 1);
+          // It doesn't focus the last chip
+          expect(manager.activeItemIndex).toEqual(-1);
         });
 
         it('should focus the last chip when press BACKSPACE', () => {
@@ -786,7 +786,7 @@ describe('MdChipList', () => {
 
       describe('when the input has focus', () => {
 
-        it('should focus the last chip when press DELETE', () => {
+        it('should not focus the last chip when press DELETE', () => {
           let nativeInput = fixture.nativeElement.querySelector('input');
           let DELETE_EVENT: KeyboardEvent =
             createKeyboardEvent('keydown', DELETE, nativeInput);
@@ -799,8 +799,8 @@ describe('MdChipList', () => {
           chipListInstance._keydown(DELETE_EVENT);
           fixture.detectChanges();
 
-          // It focuses the last chip
-          expect(manager.activeItemIndex).toEqual(chips.length - 1);
+          // It doesn't focus the last chip
+          expect(manager.activeItemIndex).toEqual(-1);
         });
 
         it('should focus the last chip when press BACKSPACE', () => {
diff --git a/src/lib/chips/chip-list.ts b/src/lib/chips/chip-list.ts
index 5555824873d6..26f877c961de 100644
--- a/src/lib/chips/chip-list.ts
+++ b/src/lib/chips/chip-list.ts
@@ -10,7 +10,7 @@ import {FocusKeyManager} from '@angular/cdk/a11y';
 import {Directionality} from '@angular/cdk/bidi';
 import {coerceBooleanProperty} from '@angular/cdk/coercion';
 import {SelectionModel} from '@angular/cdk/collections';
-import {BACKSPACE, DELETE, LEFT_ARROW, RIGHT_ARROW, UP_ARROW} from '@angular/cdk/keycodes';
+import {BACKSPACE, LEFT_ARROW, RIGHT_ARROW} from '@angular/cdk/keycodes';
 import {startWith} from '@angular/cdk/rxjs';
 import {
   AfterContentInit,
@@ -432,8 +432,8 @@ export class MdChipList implements MdFormFieldControl<any>, ControlValueAccessor
 
     let isPrevKey = (code === (isRtl ? RIGHT_ARROW : LEFT_ARROW));
     let isNextKey = (code === (isRtl ? LEFT_ARROW : RIGHT_ARROW));
-    let isBackKey = (code === BACKSPACE || code == DELETE || code == UP_ARROW || isPrevKey);
-    // If they are on an empty input and hit backspace/delete/left arrow, focus the last chip
+    let isBackKey = code === BACKSPACE;
+    // If they are on an empty input and hit backspace, focus the last chip
     if (isInputEmpty && isBackKey) {
       this._keyManager.setLastItemActive();
       event.preventDefault();
@@ -504,8 +504,6 @@ export class MdChipList implements MdFormFieldControl<any>, ControlValueAccessor
       if (focusChip) {
         focusChip.focus();
       }
-    } else if (chipsArray.length === 0) {
-      this._focusInput();
     }
 
     // Reset our destroyed index