diff --git a/src/components/autocomplete/js/autocompleteController.js b/src/components/autocomplete/js/autocompleteController.js
index 96b5281072e..c3968c34fa5 100644
--- a/src/components/autocomplete/js/autocompleteController.js
+++ b/src/components/autocomplete/js/autocompleteController.js
@@ -443,6 +443,7 @@ function MdAutocompleteCtrl ($scope, $element, $mdUtil, $mdConstant, $timeout, $
    */
   function select (index) {
     $scope.selectedItem = ctrl.matches[index];
+    ctrl.loading = false;
     ctrl.hidden = true;
     ctrl.index = 0;
     ctrl.matches = [];
diff --git a/src/components/autocomplete/js/autocompleteDirective.js b/src/components/autocomplete/js/autocompleteDirective.js
index 56027bd7547..879d69a75c0 100644
--- a/src/components/autocomplete/js/autocompleteDirective.js
+++ b/src/components/autocomplete/js/autocompleteDirective.js
@@ -136,7 +136,7 @@ function MdAutocomplete ($mdTheming, $mdUtil) {
             role="listbox">\
           ' + getInputElement() + '\
           <md-progress-linear\
-              ng-if="$mdAutocompleteCtrl.loading"\
+              ng-if="$mdAutocompleteCtrl.loading && !$mdAutocompleteCtrl.hidden"\
               md-mode="indeterminate"></md-progress-linear>\
           <ul role="presentation"\
               class="md-autocomplete-suggestions md-whiteframe-z1 {{menuClass || \'\'}}"\