diff --git a/src/demo-app/autocomplete/autocomplete-demo.html b/src/demo-app/autocomplete/autocomplete-demo.html
index 1124b22a5e2f..f6597d451427 100644
--- a/src/demo-app/autocomplete/autocomplete-demo.html
+++ b/src/demo-app/autocomplete/autocomplete-demo.html
@@ -21,11 +21,12 @@
   </md-card>
 
   <md-card>
+
     <div>Template-driven value (currentState): {{ currentState }}</div>
-    <div>Template-driven dirty: {{ modelDir.dirty }}</div>
+    <div>Template-driven dirty: {{ modelDir?.dirty }}</div>
 
-    <md-input-container>
-      <input mdInput placeholder="State" [mdAutocomplete]="tdAuto" [(ngModel)]="currentState" #modelDir="ngModel"
+    <md-input-container *ngIf="true">
+      <input mdInput placeholder="State" [mdAutocomplete]="tdAuto" [(ngModel)]="currentState"
         (ngModelChange)="this.tdStates = filterStates(currentState)" [disabled]="tdDisabled">
     </md-input-container>
 
diff --git a/src/demo-app/autocomplete/autocomplete-demo.ts b/src/demo-app/autocomplete/autocomplete-demo.ts
index d6caba770ff8..7f9ed2de234b 100644
--- a/src/demo-app/autocomplete/autocomplete-demo.ts
+++ b/src/demo-app/autocomplete/autocomplete-demo.ts
@@ -1,5 +1,5 @@
-import {Component, ViewEncapsulation} from '@angular/core';
-import {FormControl} from '@angular/forms';
+import {Component, ViewChild, ViewEncapsulation} from '@angular/core';
+import {FormControl, NgModel} from '@angular/forms';
 import 'rxjs/add/operator/startWith';
 
 @Component({
@@ -19,6 +19,8 @@ export class AutocompleteDemo {
 
   tdDisabled = false;
 
+  @ViewChild(NgModel) modelDir: NgModel;
+
   states = [
     {code: 'AL', name: 'Alabama'},
     {code: 'AK', name: 'Alaska'},
diff --git a/src/lib/autocomplete/autocomplete-trigger.ts b/src/lib/autocomplete/autocomplete-trigger.ts
index 2368cdcd1e01..978e6a8019b5 100644
--- a/src/lib/autocomplete/autocomplete-trigger.ts
+++ b/src/lib/autocomplete/autocomplete-trigger.ts
@@ -1,5 +1,4 @@
 import {
-    AfterContentInit,
     Directive,
     ElementRef,
     forwardRef,
@@ -17,7 +16,6 @@ import {PositionStrategy} from '../core/overlay/position/position-strategy';
 import {ConnectedPositionStrategy} from '../core/overlay/position/connected-position-strategy';
 import {Observable} from 'rxjs/Observable';
 import {MdOptionSelectEvent, MdOption} from '../core/option/option';
-import {ActiveDescendantKeyManager} from '../core/a11y/activedescendant-key-manager';
 import {ENTER, UP_ARROW, DOWN_ARROW} from '../core/keyboard/keycodes';
 import {Dir} from '../core/rtl/dir';
 import {Subscription} from 'rxjs/Subscription';
@@ -66,7 +64,7 @@ export const MD_AUTOCOMPLETE_VALUE_ACCESSOR: any = {
   },
   providers: [MD_AUTOCOMPLETE_VALUE_ACCESSOR]
 })
-export class MdAutocompleteTrigger implements AfterContentInit, ControlValueAccessor, OnDestroy {
+export class MdAutocompleteTrigger implements ControlValueAccessor, OnDestroy {
   private _overlayRef: OverlayRef;
   private _portal: TemplatePortal;
   private _panelOpen: boolean = false;
@@ -74,8 +72,6 @@ export class MdAutocompleteTrigger implements AfterContentInit, ControlValueAcce
   /** The subscription to positioning changes in the autocomplete panel. */
   private _panelPositionSubscription: Subscription;
 
-  /** Manages active item in option list based on key events. */
-  private _keyManager: ActiveDescendantKeyManager;
   private _positionStrategy: ConnectedPositionStrategy;
 
   /** Stream of blur events that should close the panel. */
@@ -105,10 +101,6 @@ export class MdAutocompleteTrigger implements AfterContentInit, ControlValueAcce
               @Optional() private _dir: Dir, private _zone: NgZone,
               @Optional() @Host() private _inputContainer: MdInputContainer) {}
 
-  ngAfterContentInit() {
-    this._keyManager = new ActiveDescendantKeyManager(this.autocomplete.options).withWrap();
-  }
-
   ngOnDestroy() {
     if (this._panelPositionSubscription) {
       this._panelPositionSubscription.unsubscribe();
@@ -155,7 +147,7 @@ export class MdAutocompleteTrigger implements AfterContentInit, ControlValueAcce
     return Observable.merge(
         this.optionSelections,
         this._blurStream.asObservable(),
-        this._keyManager.tabOut
+        this.autocomplete._keyManager.tabOut
     );
   }
 
@@ -166,7 +158,9 @@ export class MdAutocompleteTrigger implements AfterContentInit, ControlValueAcce
 
   /** The currently active option, coerced to MdOption type. */
   get activeOption(): MdOption {
-    return this._keyManager.activeItem as MdOption;
+    if (this.autocomplete._keyManager) {
+      return this.autocomplete._keyManager.activeItem as MdOption;
+    }
   }
 
   /**
@@ -205,7 +199,7 @@ export class MdAutocompleteTrigger implements AfterContentInit, ControlValueAcce
     if (this.activeOption && event.keyCode === ENTER) {
       this.activeOption._selectViaInteraction();
     } else {
-      this._keyManager.onKeydown(event);
+      this.autocomplete._keyManager.onKeydown(event);
       if (event.keyCode === UP_ARROW || event.keyCode === DOWN_ARROW) {
         this.openPanel();
         this._scrollToOption();
@@ -250,7 +244,8 @@ export class MdAutocompleteTrigger implements AfterContentInit, ControlValueAcce
    * height, so the active option will be just visible at the bottom of the panel.
    */
   private _scrollToOption(): void {
-    const optionOffset = this._keyManager.activeItemIndex * AUTOCOMPLETE_OPTION_HEIGHT;
+    const optionOffset =
+        this.autocomplete._keyManager.activeItemIndex * AUTOCOMPLETE_OPTION_HEIGHT;
     const newScrollTop =
         Math.max(0, optionOffset - AUTOCOMPLETE_PANEL_HEIGHT + AUTOCOMPLETE_OPTION_HEIGHT);
     this.autocomplete._setScrollTop(newScrollTop);
@@ -344,7 +339,7 @@ export class MdAutocompleteTrigger implements AfterContentInit, ControlValueAcce
 
   /** Reset active item to null so arrow events will activate the correct options.*/
   private _resetActiveItem(): void {
-    this._keyManager.setActiveItem(null);
+    this.autocomplete._keyManager.setActiveItem(null);
   }
 
   /**
diff --git a/src/lib/autocomplete/autocomplete.spec.ts b/src/lib/autocomplete/autocomplete.spec.ts
index 5baee70ad18e..e6095b72f493 100644
--- a/src/lib/autocomplete/autocomplete.spec.ts
+++ b/src/lib/autocomplete/autocomplete.spec.ts
@@ -13,6 +13,8 @@ import {ViewportRuler} from '../core/overlay/position/viewport-ruler';
 import {FakeViewportRuler} from '../core/overlay/position/fake-viewport-ruler';
 import {MdAutocomplete} from './autocomplete';
 import {MdInputContainer} from '../input/input-container';
+import {Observable} from 'rxjs/Observable';
+import 'rxjs/add/operator/map';
 
 describe('MdAutocomplete', () => {
   let overlayContainerElement: HTMLElement;
@@ -24,7 +26,7 @@ describe('MdAutocomplete', () => {
       imports: [
           MdAutocompleteModule.forRoot(), MdInputModule.forRoot(), ReactiveFormsModule
       ],
-      declarations: [SimpleAutocomplete, AutocompleteWithoutForms],
+      declarations: [SimpleAutocomplete, AutocompleteWithoutForms, NgIfAutocomplete],
       providers: [
         {provide: OverlayContainer, useFactory: () => {
           overlayContainerElement = document.createElement('div');
@@ -817,6 +819,22 @@ describe('MdAutocomplete', () => {
       }).not.toThrowError();
     });
 
+    it('should work when input is wrapped in ngIf', () => {
+      const fixture = TestBed.createComponent(NgIfAutocomplete);
+      fixture.detectChanges();
+
+      const input = fixture.debugElement.query(By.css('input')).nativeElement;
+      dispatchEvent('focus', input);
+      fixture.detectChanges();
+
+      expect(fixture.componentInstance.trigger.panelOpen)
+          .toBe(true, `Expected panel state to read open when input is focused.`);
+      expect(overlayContainerElement.textContent)
+          .toContain('One', `Expected panel to display when input is focused.`);
+      expect(overlayContainerElement.textContent)
+          .toContain('Two', `Expected panel to display when input is focused.`);
+    });
+
   });
 });
 
@@ -876,6 +894,35 @@ class SimpleAutocomplete implements OnDestroy {
 
 }
 
+@Component({
+  template: `
+    <md-input-container *ngIf="isVisible">
+      <input mdInput placeholder="Choose" [mdAutocomplete]="auto" [formControl]="optionCtrl">
+    </md-input-container>
+
+    <md-autocomplete #auto="mdAutocomplete">
+      <md-option *ngFor="let option of filteredOptions | async" [value]="option">
+         {{option}}
+      </md-option>
+    </md-autocomplete>
+  `
+})
+class NgIfAutocomplete {
+  optionCtrl = new FormControl();
+  filteredOptions: Observable<any>;
+  isVisible = true;
+
+  @ViewChild(MdAutocompleteTrigger) trigger: MdAutocompleteTrigger;
+  options = ['One', 'Two', 'Three'];
+
+  constructor() {
+    this.filteredOptions = this.optionCtrl.valueChanges.startWith(null).map((val) => {
+      return val ? this.options.filter(option => new RegExp(val, 'gi').test(option))
+                 : this.options.slice();
+    });
+  }
+}
+
 
 @Component({
   template: `
diff --git a/src/lib/autocomplete/autocomplete.ts b/src/lib/autocomplete/autocomplete.ts
index bbed800589cc..f516c80c532c 100644
--- a/src/lib/autocomplete/autocomplete.ts
+++ b/src/lib/autocomplete/autocomplete.ts
@@ -1,4 +1,5 @@
 import {
+  AfterContentInit,
   Component,
   ContentChildren,
   ElementRef,
@@ -9,6 +10,7 @@ import {
   ViewEncapsulation
 } from '@angular/core';
 import {MdOption} from '../core';
+import {ActiveDescendantKeyManager} from '../core/a11y/activedescendant-key-manager';
 
 /**
  * Autocomplete IDs need to be unique across components, so this counter exists outside of
@@ -29,7 +31,10 @@ export type AutocompletePositionY = 'above' | 'below';
     '[class.mat-autocomplete]': 'true'
   }
 })
-export class MdAutocomplete {
+export class MdAutocomplete implements AfterContentInit {
+
+  /** Manages active item in option list based on key events. */
+  _keyManager: ActiveDescendantKeyManager;
 
   /** Whether the autocomplete panel displays above or below its trigger. */
   positionY: AutocompletePositionY = 'below';
@@ -47,6 +52,10 @@ export class MdAutocomplete {
   /** Unique ID to be used by autocomplete trigger's "aria-owns" property. */
   id: string = `md-autocomplete-${_uniqueAutocompleteIdCounter++}`;
 
+  ngAfterContentInit() {
+    this._keyManager = new ActiveDescendantKeyManager(this.options).withWrap();
+  }
+
   /**
    * Sets the panel scrollTop. This allows us to manually scroll to display
    * options below the fold, as they are not actually being focused when active.