diff --git a/Gruntfile.js b/Gruntfile.js
index 4f3651ff3..98105632a 100644
--- a/Gruntfile.js
+++ b/Gruntfile.js
@@ -36,6 +36,7 @@ module.exports = function (grunt) {
           'src/urlRouter.js',
           'src/state.js',
           'src/viewDirective.js',
+          'src/stateDirectives.js',
           'src/compat.js'
         ],
         dest: '<%= builddir %>/<%= pkg.name %>.js'
diff --git a/src/state.js b/src/state.js
index f73e886e7..0adc41ea9 100644
--- a/src/state.js
+++ b/src/state.js
@@ -266,9 +266,14 @@ function $StateProvider(   $urlRouterProvider,   $urlMatcherFactory) {
       return $state.$current.includes[findState(stateOrName).name];
     };
 
-    $state.href = function (stateOrName, params) {
-      var state = findState(stateOrName), nav = state.navigable;
-      if (!nav) throw new Error("State '" + state + "' is not navigable");
+    $state.href = function (stateOrName, params, options) {
+      options = extend({ lossy: true }, options || {});
+      var state = findState(stateOrName);
+      var nav = options.lossy ? state.navigable : state;
+
+      if (!nav || !nav.url) throw new Error("State '" + state + "' " + (
+        options.lossy ? "does not have a URL or navigable parent" : "is not navigable"
+      ));
       return nav.url.format(normalize(state.params, params || {}));
     };
 
diff --git a/src/stateDirectives.js b/src/stateDirectives.js
new file mode 100644
index 000000000..001bb0ba7
--- /dev/null
+++ b/src/stateDirectives.js
@@ -0,0 +1,46 @@
+function parseStateRef(ref) {
+  var parsed = ref.match(/^([^(]+?)\s*(\((.*)\))?$/);
+  if (!parsed || parsed.length !== 4) throw new Error("Invalid state ref '" + ref + "'");
+  return { state: parsed[1], paramExpr: parsed[3] || null };
+}
+
+$StateRefDirective.$inject = ['$state'];
+function $StateRefDirective($state) {
+  return {
+    restrict: 'A',
+    link: function(scope, element, attrs) {
+      var ref = parseStateRef(attrs.uiSref);
+      var params = null, url = null;
+      var isForm = element[0].nodeName === "FORM";
+      var attr = isForm ? "action" : "href", nav = true;
+
+      var update = function(newVal) {
+        if (newVal) params = newVal;
+        if (!nav) return;
+
+        try {
+          element[0][attr] = $state.href(ref.state, params, { lossy: true });
+        } catch (e) {
+          nav = false;
+        }
+      };
+
+      if (ref.paramExpr) {
+        scope.$watch(ref.paramExpr, function(newVal, oldVal) {
+          if (newVal !== oldVal) update(newVal);
+        }, true);
+        params = scope.$eval(ref.paramExpr);
+      }
+      update();
+
+      if (isForm) return;
+
+      element.bind("click", function(e) {
+        $state.transitionTo(ref.state, params);
+        e.preventDefault();
+      });
+    }
+  };
+}
+
+angular.module('ui.state').directive('uiSref', $StateRefDirective);
diff --git a/test/stateDirectivesSpec.js b/test/stateDirectivesSpec.js
new file mode 100644
index 000000000..c229c6383
--- /dev/null
+++ b/test/stateDirectivesSpec.js
@@ -0,0 +1,70 @@
+describe('uiStateRef', function() {
+
+  beforeEach(module('ui.state'));
+
+  beforeEach(module(function($stateProvider) {
+    $stateProvider.state('index', {
+      url: '/'
+    }).state('contacts', {
+      url: '/contacts'
+    }).state('contacts.item', {
+      url: '/:id'
+    }).state('contacts.item.detail', {});
+  }));
+
+  describe('links', function() {
+    var el, scope;
+
+    beforeEach(inject(function($rootScope, $compile) {
+      el = angular.element('<a ui-sref="contacts.item.detail({ id: contact.id })">Details</a>');
+      scope = $rootScope;
+      scope.contact = { id: 5 };
+      scope.$apply();
+
+      $compile(el)(scope);
+      scope.$digest();
+    }));
+
+
+    it('should generate the correct href', function() {
+      expect(el.attr('href')).toBe('/contacts/5');
+    });
+
+    it('should update the href when parameters change', function() {
+      expect(el.attr('href')).toBe('/contacts/5');
+      scope.contact.id = 6;
+      scope.$apply();
+      expect(el.attr('href')).toBe('/contacts/6');
+    });
+
+    it('should transition states when clicked', inject(function($state, $stateParams, $document, $q) {
+      expect($state.$current.name).toEqual('');
+
+      var e = $document[0].createEvent("MouseEvents");
+      e.initMouseEvent("click");
+      el[0].dispatchEvent(e);
+
+      $q.flush();
+      expect($state.current.name).toEqual('contacts.item.detail');
+      expect($stateParams).toEqual({ id: "5" });
+    }));
+  });
+
+  describe('forms', function() {
+    var el, scope;
+
+    beforeEach(inject(function($rootScope, $compile) {
+      el = angular.element('<form ui-sref="contacts.item.detail({ id: contact.id })"></form>');
+      scope = $rootScope;
+      scope.contact = { id: 5 };
+      scope.$apply();
+
+      $compile(el)(scope);
+      scope.$digest();
+    }));
+
+    it('should generate the correct action', function() {
+      expect(el.attr('action')).toBe('/contacts/5');
+    });
+  });
+});
diff --git a/test/stateSpec.js b/test/stateSpec.js
index 0a3337497..900772897 100644
--- a/test/stateSpec.js
+++ b/test/stateSpec.js
@@ -256,7 +256,16 @@ describe('state', function () {
 
   describe('.href()', function () {
     it('aborts on un-navigable states', inject(function ($state) {
-      expect(function() { $state.href("A"); }).toThrow("State 'A' is not navigable");
+      expect(function() { $state.href("A"); }).toThrow(
+        "State 'A' does not have a URL or navigable parent"
+      );
+      expect(function() { $state.href("about.sidebar", null, { lossy: false }); }).toThrow(
+        "State 'about.sidebar' is not navigable"
+      );
+    }));
+
+    it('generates a parent state URL when lossy is true', inject(function ($state) {
+      expect($state.href("about.sidebar", null, { lossy: true })).toEqual("/about");
     }));
 
     it('generates a URL without parameters', inject(function ($state) {
diff --git a/test/test-config.js b/test/test-config.js
index 74e016357..82e89d8dd 100644
--- a/test/test-config.js
+++ b/test/test-config.js
@@ -17,8 +17,9 @@ files = [
   'src/urlRouter.js',
   'src/state.js',
   'src/viewDirective.js',
+  'src/stateDirectives.js',
   'src/compat.js',
-  
+
   'test/*Spec.js',
   // 'test/compat/matchers.js',
   // 'test/compat/*Spec.js',