diff --git a/src/components/autocomplete/autocomplete.scss b/src/components/autocomplete/autocomplete.scss
index 802b915ff43..1e3ab895ee0 100644
--- a/src/components/autocomplete/autocomplete.scss
+++ b/src/components/autocomplete/autocomplete.scss
@@ -170,9 +170,6 @@ md-autocomplete {
 }
 .md-autocomplete-suggestions {
   position: absolute;
-  top: 100%;
-  left: 0;
-  right: 0;
   box-shadow: 0 2px 5px rgba(black, 0.25);
   margin: 0;
   list-style: none;
@@ -190,6 +187,8 @@ md-autocomplete {
     transition: background 0.15s linear;
     cursor: pointer;
     margin: 0;
+    white-space: nowrap;
+    text-overflow: ellipsis;
     &.ng-enter,
     &.ng-hide-remove {
       transition: none;
diff --git a/src/components/autocomplete/js/autocompleteController.js b/src/components/autocomplete/js/autocompleteController.js
index 3b9a0fbe16e..26dfb2695cc 100644
--- a/src/components/autocomplete/js/autocompleteController.js
+++ b/src/components/autocomplete/js/autocompleteController.js
@@ -71,7 +71,12 @@
           bot    = root.height - vrect.top,
           left   = hrect.left - root.left,
           width  = hrect.width,
-          styles = { left: left + 'px', width: width + 'px' };
+          styles = {
+            left:     left + 'px',
+            minWidth: width + 'px',
+            maxWidth: Math.max(hrect.right - root.left, root.right - hrect.left) - MENU_PADDING + 'px',
+            opacity:  0
+          };
       if (top > bot && root.height - hrect.bottom - MENU_PADDING < MAX_HEIGHT) {
         styles.top = 'auto';
         styles.bottom = bot + 'px';
@@ -81,7 +86,17 @@
         styles.bottom = 'auto';
         styles.maxHeight = Math.min(MAX_HEIGHT, root.height - hrect.bottom - MENU_PADDING) + 'px';
       }
+      $timeout(correctHorizontalAlignment, 0, false);
       elements.$.ul.css(styles);
+
+      function correctHorizontalAlignment () {
+        var dropdown = elements.ul.getBoundingClientRect(),
+            styles   = { opacity: 1 };
+        if (dropdown.right > root.right - MENU_PADDING) {
+          styles.left = (hrect.right - dropdown.width) + 'px';
+        }
+        elements.$.ul.css(styles);
+      }
     }
 
     function moveDropdown () {