diff --git a/src/components/autocomplete/js/autocompleteController.js b/src/components/autocomplete/js/autocompleteController.js
index 14cc8e0e4be..80a4d4e0b59 100644
--- a/src/components/autocomplete/js/autocompleteController.js
+++ b/src/components/autocomplete/js/autocompleteController.js
@@ -370,7 +370,10 @@ function MdAutocompleteCtrl ($scope, $element, $mdUtil, $mdConstant, $mdTheming,
    * @param forceBlur
    */
   function doBlur(forceBlur) {
-    if (forceBlur) noBlur = false;
+    if (forceBlur) {
+      noBlur = false;
+      hasFocus = false;
+    }
     elements.input.blur();
   }
 
@@ -408,6 +411,9 @@ function MdAutocompleteCtrl ($scope, $element, $mdUtil, $mdConstant, $mdTheming,
         updateMessages();
         break;
       case $mdConstant.KEY_CODE.TAB:
+        // If we hit tab, assume that we've left the list so it will close
+        onListLeave();
+
         if (ctrl.hidden || ctrl.loading || ctrl.index < 0 || ctrl.matches.length < 1) return;
         select(ctrl.index);
         break;