diff --git a/src/cdk/overlay/scroll/close-scroll-strategy.spec.ts b/src/cdk/overlay/scroll/close-scroll-strategy.spec.ts
index 503c795e4326..f98d008cbb43 100644
--- a/src/cdk/overlay/scroll/close-scroll-strategy.spec.ts
+++ b/src/cdk/overlay/scroll/close-scroll-strategy.spec.ts
@@ -1,8 +1,8 @@
-import {inject, TestBed, async} from '@angular/core/testing';
+import {inject, TestBed, fakeAsync} from '@angular/core/testing';
 import {NgModule, Component, NgZone} from '@angular/core';
 import {Subject} from 'rxjs/Subject';
 import {ComponentPortal, PortalModule} from '@angular/cdk/portal';
-import {ScrollDispatcher} from '@angular/cdk/scrolling';
+import {ScrollDispatcher, ViewportRuler} from '@angular/cdk/scrolling';
 import {
   Overlay,
   OverlayConfig,
@@ -16,13 +16,19 @@ describe('CloseScrollStrategy', () => {
   let overlayRef: OverlayRef;
   let componentPortal: ComponentPortal<MozarellaMsg>;
   let scrolledSubject = new Subject();
+  let scrollPosition: number;
+
+  beforeEach(fakeAsync(() => {
+    scrollPosition = 0;
 
-  beforeEach(async(() => {
     TestBed.configureTestingModule({
       imports: [OverlayModule, PortalModule, OverlayTestModule],
       providers: [
         {provide: ScrollDispatcher, useFactory: () => ({
           scrolled: () => scrolledSubject.asObservable()
+        })},
+        {provide: ViewportRuler, useFactory: () => ({
+          getViewportScrollPosition: () => ({top: scrollPosition})
         })}
       ]
     });
@@ -70,6 +76,60 @@ describe('CloseScrollStrategy', () => {
     subscription.unsubscribe();
   });
 
+  it('should be able to reposition the overlay up to a certain threshold before closing',
+    inject([Overlay], (overlay: Overlay) => {
+      overlayRef.dispose();
+
+      overlayRef = overlay.create({
+        scrollStrategy: overlay.scrollStrategies.close({threshold: 50})
+      });
+
+      overlayRef.attach(componentPortal);
+      spyOn(overlayRef, 'updatePosition');
+      spyOn(overlayRef, 'detach');
+
+      for (let i = 0; i < 50; i++) {
+        scrollPosition++;
+        scrolledSubject.next();
+      }
+
+      expect(overlayRef.updatePosition).toHaveBeenCalledTimes(50);
+      expect(overlayRef.detach).not.toHaveBeenCalled();
+
+      scrollPosition++;
+      scrolledSubject.next();
+
+      expect(overlayRef.detach).toHaveBeenCalledTimes(1);
+    }));
+
+    it('should not close if the user starts scrolling away and comes back',
+      inject([Overlay], (overlay: Overlay) => {
+        overlayRef.dispose();
+        scrollPosition = 100;
+
+        overlayRef = overlay.create({
+          scrollStrategy: overlay.scrollStrategies.close({threshold: 50})
+        });
+
+        overlayRef.attach(componentPortal);
+        spyOn(overlayRef, 'updatePosition');
+        spyOn(overlayRef, 'detach');
+
+        // Scroll down 30px.
+        for (let i = 0; i < 30; i++) {
+          scrollPosition++;
+          scrolledSubject.next();
+        }
+
+        // Scroll back up 30px.
+        for (let i = 0; i < 30; i++) {
+          scrollPosition--;
+          scrolledSubject.next();
+        }
+
+        expect(overlayRef.updatePosition).toHaveBeenCalledTimes(60);
+        expect(overlayRef.detach).not.toHaveBeenCalled();
+      }));
 });
 
 
diff --git a/src/cdk/overlay/scroll/close-scroll-strategy.ts b/src/cdk/overlay/scroll/close-scroll-strategy.ts
index 970e3afcebe5..df6c5cbc3ac8 100644
--- a/src/cdk/overlay/scroll/close-scroll-strategy.ts
+++ b/src/cdk/overlay/scroll/close-scroll-strategy.ts
@@ -5,13 +5,19 @@
  * Use of this source code is governed by an MIT-style license that can be
  * found in the LICENSE file at https://angular.io/license
  */
-
 import {NgZone} from '@angular/core';
 import {ScrollStrategy, getMatScrollStrategyAlreadyAttachedError} from './scroll-strategy';
 import {OverlayRef} from '../overlay-ref';
 import {Subscription} from 'rxjs/Subscription';
-import {ScrollDispatcher} from '@angular/cdk/scrolling';
+import {ScrollDispatcher, ViewportRuler} from '@angular/cdk/scrolling';
 
+/**
+ * Config options for the CloseScrollStrategy.
+ */
+export interface CloseScrollStrategyConfig {
+  /** Amount of pixels the user has to scroll before the overlay is closed. */
+  threshold?: number;
+}
 
 /**
  * Strategy that will close the overlay as soon as the user starts scrolling.
@@ -19,8 +25,13 @@ import {ScrollDispatcher} from '@angular/cdk/scrolling';
 export class CloseScrollStrategy implements ScrollStrategy {
   private _scrollSubscription: Subscription|null = null;
   private _overlayRef: OverlayRef;
+  private _initialScrollPosition: number;
 
-  constructor(private _scrollDispatcher: ScrollDispatcher, private _ngZone: NgZone) { }
+  constructor(
+    private _scrollDispatcher: ScrollDispatcher,
+    private _ngZone: NgZone,
+    private _viewportRuler: ViewportRuler,
+    private _config?: CloseScrollStrategyConfig) {}
 
   /** Attaches this scroll strategy to an overlay. */
   attach(overlayRef: OverlayRef) {
@@ -31,18 +42,28 @@ export class CloseScrollStrategy implements ScrollStrategy {
     this._overlayRef = overlayRef;
   }
 
-  /** Enables the closing of the attached on scroll. */
+  /** Enables the closing of the attached overlay on scroll. */
   enable() {
-    if (!this._scrollSubscription) {
-      this._scrollSubscription = this._scrollDispatcher.scrolled(0).subscribe(() => {
-        this._ngZone.run(() => {
-          this.disable();
-
-          if (this._overlayRef.hasAttached()) {
-            this._overlayRef.detach();
-          }
-        });
+    if (this._scrollSubscription) {
+      return;
+    }
+
+    const stream = this._scrollDispatcher.scrolled(0);
+
+    if (this._config && this._config.threshold && this._config.threshold > 1) {
+      this._initialScrollPosition = this._viewportRuler.getViewportScrollPosition().top;
+
+      this._scrollSubscription = stream.subscribe(() => {
+        const scrollPosition = this._viewportRuler.getViewportScrollPosition().top;
+
+        if (Math.abs(scrollPosition - this._initialScrollPosition) > this._config!.threshold!) {
+          this._detach();
+        } else {
+          this._overlayRef.updatePosition();
+        }
       });
+    } else {
+      this._scrollSubscription = stream.subscribe(this._detach);
     }
   }
 
@@ -53,4 +74,13 @@ export class CloseScrollStrategy implements ScrollStrategy {
       this._scrollSubscription = null;
     }
   }
+
+  /** Detaches the overlay ref and disables the scroll strategy. */
+  private _detach = () => {
+    this.disable();
+
+    if (this._overlayRef.hasAttached()) {
+      this._ngZone.run(() => this._overlayRef.detach());
+    }
+  }
 }
diff --git a/src/cdk/overlay/scroll/scroll-strategy-options.ts b/src/cdk/overlay/scroll/scroll-strategy-options.ts
index 1185da1544e1..18fcd6e38c99 100644
--- a/src/cdk/overlay/scroll/scroll-strategy-options.ts
+++ b/src/cdk/overlay/scroll/scroll-strategy-options.ts
@@ -5,9 +5,8 @@
  * Use of this source code is governed by an MIT-style license that can be
  * found in the LICENSE file at https://angular.io/license
  */
-
 import {Injectable, NgZone} from '@angular/core';
-import {CloseScrollStrategy} from './close-scroll-strategy';
+import {CloseScrollStrategy, CloseScrollStrategyConfig} from './close-scroll-strategy';
 import {NoopScrollStrategy} from './noop-scroll-strategy';
 import {BlockScrollStrategy} from './block-scroll-strategy';
 import {ScrollDispatcher} from '@angular/cdk/scrolling';
@@ -34,8 +33,12 @@ export class ScrollStrategyOptions {
   /** Do nothing on scroll. */
   noop = () => new NoopScrollStrategy();
 
-  /** Close the overlay as soon as the user scrolls. */
-  close = () => new CloseScrollStrategy(this._scrollDispatcher, this._ngZone);
+  /**
+   * Close the overlay as soon as the user scrolls.
+   * @param config Configuration to be used inside the scroll strategy.
+   */
+  close = (config?: CloseScrollStrategyConfig) => new CloseScrollStrategy(this._scrollDispatcher,
+      this._ngZone, this._viewportRuler, config)
 
   /** Block scrolling. */
   block = () => new BlockScrollStrategy(this._viewportRuler);