diff --git a/src/demo-app/snack-bar/snack-bar-demo.html b/src/demo-app/snack-bar/snack-bar-demo.html
index 7e1a56e0e35f..4d0634e59b74 100644
--- a/src/demo-app/snack-bar/snack-bar-demo.html
+++ b/src/demo-app/snack-bar/snack-bar-demo.html
@@ -3,6 +3,20 @@ <h1>SnackBar demo</h1>
   <div>
     Message: <md-form-field><input mdInput type="text" [(ngModel)]="message"></md-form-field>
   </div>
+  <div>
+    <div>Position in page: </div>
+    <md-select [(ngModel)]="horizontalPosition">
+      <md-option value="start">Start</md-option>
+      <md-option value="end">End</md-option>
+      <md-option value="left">Left</md-option>
+      <md-option value="right">Right</md-option>
+      <md-option value="center">Center</md-option>
+    </md-select>
+    <md-select [(ngModel)]="verticalPosition">
+      <md-option value="top">Top</md-option>
+      <md-option value="bottom">Bottom</md-option>
+    </md-select>
+  </div>
   <div>
     <md-checkbox [(ngModel)]="action">
       <p *ngIf="!action">Show button on snack bar</p>
@@ -27,7 +41,6 @@ <h1>SnackBar demo</h1>
       </md-form-field>
     </md-checkbox>
   </div>
-
   <p>
     <md-checkbox [(ngModel)]="addExtraClass">Add extra class to container</md-checkbox>
   </p>
diff --git a/src/demo-app/snack-bar/snack-bar-demo.ts b/src/demo-app/snack-bar/snack-bar-demo.ts
index d61bed273a58..6f905ce052ba 100644
--- a/src/demo-app/snack-bar/snack-bar-demo.ts
+++ b/src/demo-app/snack-bar/snack-bar-demo.ts
@@ -1,5 +1,11 @@
 import {Component, ViewEncapsulation} from '@angular/core';
-import {MdSnackBar, MdSnackBarConfig} from '@angular/material';
+import {
+  MdSnackBar,
+  MdSnackBarConfig,
+  MdSnackBarHorizontalPosition,
+  MdSnackBarVerticalPosition,
+  Dir,
+} from '@angular/material';
 
 @Component({
   moduleId: module.id,
@@ -15,13 +21,18 @@ export class SnackBarDemo {
   setAutoHide: boolean = true;
   autoHide: number = 10000;
   addExtraClass: boolean = false;
+  horizontalPosition: MdSnackBarHorizontalPosition = 'center';
+  verticalPosition: MdSnackBarVerticalPosition = 'bottom';
 
-  constructor(public snackBar: MdSnackBar) { }
+  constructor(public snackBar: MdSnackBar, private dir: Dir) { }
 
   open() {
     let config = new MdSnackBarConfig();
+    config.verticalPosition = this.verticalPosition;
+    config.horizontalPosition = this.horizontalPosition;
     config.duration = this.autoHide;
     config.extraClasses = this.addExtraClass ? ['party'] : undefined;
+    config.direction = this.dir.value;
     this.snackBar.open(this.message, this.action ? this.actionButtonLabel : undefined, config);
   }
 }
diff --git a/src/lib/snack-bar/snack-bar-config.ts b/src/lib/snack-bar/snack-bar-config.ts
index 85f02041e42e..4f0f2c1fa9cc 100644
--- a/src/lib/snack-bar/snack-bar-config.ts
+++ b/src/lib/snack-bar/snack-bar-config.ts
@@ -12,6 +12,12 @@ import {Direction} from '@angular/cdk/bidi';
 
 export const MD_SNACK_BAR_DATA = new InjectionToken<any>('MdSnackBarData');
 
+/** Possible values for horizontalPosition on MdSnackBarConfig. */
+export type MdSnackBarHorizontalPosition = 'start' | 'center' | 'end' | 'left' | 'right';
+
+/** Possible values for verticalPosition on MdSnackBarConfig. */
+export type MdSnackBarVerticalPosition = 'top' | 'bottom';
+
 /**
  * Configuration used when opening a snack-bar.
  */
@@ -36,4 +42,10 @@ export class MdSnackBarConfig {
 
   /** Data being injected into the child component. */
   data?: any = null;
+
+  /** The horizontal position to place the snack bar. */
+  horizontalPosition?: MdSnackBarHorizontalPosition = 'center';
+
+  /** The vertical position to place the snack bar. */
+  verticalPosition?: MdSnackBarVerticalPosition = 'bottom';
 }
diff --git a/src/lib/snack-bar/snack-bar-container.scss b/src/lib/snack-bar/snack-bar-container.scss
index 0ffe0b93b791..164040d9b079 100644
--- a/src/lib/snack-bar/snack-bar-container.scss
+++ b/src/lib/snack-bar/snack-bar-container.scss
@@ -3,18 +3,36 @@
 $mat-snack-bar-padding: 14px 24px !default;
 $mat-snack-bar-min-width: 288px !default;
 $mat-snack-bar-max-width: 568px !default;
+$mat-snack-bar-spacing-margin: 24px !default;
 
 
 .mat-snack-bar-container {
   border-radius: 2px;
   box-sizing: content-box;
   display: block;
+  margin: $mat-snack-bar-spacing-margin;
   max-width: $mat-snack-bar-max-width;
   min-width: $mat-snack-bar-min-width;
   padding: $mat-snack-bar-padding;
-  // Initial transformation is applied to start snack bar out of view.
+  // Initial transformation is applied to start snack bar out of view, below its target position.
   transform: translateY(100%);
 
+  /** 
+   * Removes margin of snack bars which are center positioned horizontally.  This
+   * is done to align snack bars to the edge of the view vertically to match spec.
+   */
+  &.mat-snack-bar-center {
+    margin: 0;
+  }
+
+  /**
+   * To allow for animations from a 'top' vertical position to animate in a downward
+   * direction, set the translation to start the snack bar above the target position.
+   */
+  &.mat-snack-bar-top {
+    transform: translateY(-100%);
+  }
+
   @include cdk-high-contrast {
     border: solid 1px;
   }
diff --git a/src/lib/snack-bar/snack-bar-container.ts b/src/lib/snack-bar/snack-bar-container.ts
index e0acfc2b1766..1c8c1f884006 100644
--- a/src/lib/snack-bar/snack-bar-container.ts
+++ b/src/lib/snack-bar/snack-bar-container.ts
@@ -38,7 +38,7 @@ import {Subject} from 'rxjs/Subject';
 import {MdSnackBarConfig} from './snack-bar-config';
 
 
-export type SnackBarState = 'initial' | 'visible' | 'complete' | 'void';
+export type SnackBarState = 'visible' | 'hidden' | 'void';
 
 // TODO(jelbourn): we can't use constants from animation.ts here because you can't use
 // a text interpolation in anything that is analyzed statically with ngc (for AoT compile).
@@ -59,15 +59,22 @@ export const HIDE_ANIMATION = '195ms cubic-bezier(0.0,0.0,0.2,1)';
   host: {
     'role': 'alert',
     'class': 'mat-snack-bar-container',
-    '[@state]': 'animationState',
+    '[@state]': 'getAnimationState()',
     '(@state.done)': 'onAnimationEnd($event)'
   },
   animations: [
     trigger('state', [
-      state('void, initial, complete', style({transform: 'translateY(100%)'})),
-      state('visible', style({transform: 'translateY(0%)'})),
-      transition('visible => complete', animate(HIDE_ANIMATION)),
-      transition('initial => visible, void => visible', animate(SHOW_ANIMATION)),
+      // Animation from top.
+      state('visible-top', style({transform: 'translateY(0%)'})),
+      state('hidden-top', style({transform: 'translateY(-100%)'})),
+      transition('visible-top => hidden-top', animate(HIDE_ANIMATION)),
+      transition('void => visible-top', animate(SHOW_ANIMATION)),
+      // Animation from bottom.
+      state('visible-bottom', style({transform: 'translateY(0%)'})),
+      state('hidden-bottom', style({transform: 'translateY(100%)'})),
+      transition('visible-bottom => hidden-bottom', animate(HIDE_ANIMATION)),
+      transition('void => visible-bottom',
+        animate(SHOW_ANIMATION)),
     ])
   ],
 })
@@ -85,7 +92,7 @@ export class MdSnackBarContainer extends BasePortalHost implements OnDestroy {
   _onEnter: Subject<any> = new Subject();
 
   /** The state of the snack bar animations. */
-  animationState: SnackBarState = 'initial';
+  private _animationState: SnackBarState;
 
   /** The snack bar configuration. */
   snackBarConfig: MdSnackBarConfig;
@@ -98,6 +105,14 @@ export class MdSnackBarContainer extends BasePortalHost implements OnDestroy {
     super();
   }
 
+  /**
+   * Gets the current animation state both combining one of the possibilities from
+   * SnackBarState and the vertical location.
+   */
+  getAnimationState(): string {
+    return `${this._animationState}-${this.snackBarConfig.verticalPosition}`;
+  }
+
   /** Attach a component portal as content to this snack bar container. */
   attachComponentPortal<T>(portal: ComponentPortal<T>): ComponentRef<T> {
     if (this._portalHost.hasAttached()) {
@@ -112,6 +127,14 @@ export class MdSnackBarContainer extends BasePortalHost implements OnDestroy {
       }
     }
 
+    if (this.snackBarConfig.horizontalPosition === 'center') {
+      this._renderer.addClass(this._elementRef.nativeElement, 'mat-snack-bar-center');
+    }
+
+    if (this.snackBarConfig.verticalPosition === 'top') {
+      this._renderer.addClass(this._elementRef.nativeElement, 'mat-snack-bar-top');
+    }
+
     return this._portalHost.attachComponentPortal(portal);
   }
 
@@ -122,11 +145,11 @@ export class MdSnackBarContainer extends BasePortalHost implements OnDestroy {
 
   /** Handle end of animations, updating the state of the snackbar. */
   onAnimationEnd(event: AnimationEvent) {
-    if (event.toState === 'void' || event.toState === 'complete') {
+    if (event.toState === 'void' || event.toState.startsWith('hidden')) {
       this._completeExit();
     }
 
-    if (event.toState === 'visible') {
+    if (event.toState.startsWith('visible')) {
       // Note: we shouldn't use `this` inside the zone callback,
       // because it can cause a memory leak.
       const onEnter = this._onEnter;
@@ -141,14 +164,14 @@ export class MdSnackBarContainer extends BasePortalHost implements OnDestroy {
   /** Begin animation of snack bar entrance into view. */
   enter(): void {
     if (!this._destroyed) {
-      this.animationState = 'visible';
+      this._animationState = 'visible';
       this._changeDetectorRef.detectChanges();
     }
   }
 
   /** Begin animation of the snack bar exiting from view. */
   exit(): Observable<void> {
-    this.animationState = 'complete';
+    this._animationState = 'hidden';
     return this._onExit;
   }
 
diff --git a/src/lib/snack-bar/snack-bar.spec.ts b/src/lib/snack-bar/snack-bar.spec.ts
index 2d57d390f381..fdd1da844e82 100644
--- a/src/lib/snack-bar/snack-bar.spec.ts
+++ b/src/lib/snack-bar/snack-bar.spec.ts
@@ -22,8 +22,6 @@ import {
 } from './index';
 
 
-// TODO(josephperrott): Update tests to mock waiting for time to complete for animations.
-
 describe('MdSnackBar', () => {
   let snackBar: MdSnackBar;
   let liveAnnouncer: LiveAnnouncer;
@@ -66,7 +64,7 @@ describe('MdSnackBar', () => {
   });
 
   it('should have the role of alert', () => {
-    let config = {viewContainerRef: testViewContainerRef};
+    let config: MdSnackBarConfig = {viewContainerRef: testViewContainerRef};
     snackBar.open(simpleMessage, simpleActionLabel, config);
 
     let containerElement = overlayContainerElement.querySelector('snack-bar-container')!;
@@ -92,7 +90,7 @@ describe('MdSnackBar', () => {
    }));
 
   it('should open a simple message with a button', () => {
-    let config = {viewContainerRef: testViewContainerRef};
+    let config: MdSnackBarConfig = {viewContainerRef: testViewContainerRef};
     let snackBarRef = snackBar.open(simpleMessage, simpleActionLabel, config);
 
     viewContainerFixture.detectChanges();
@@ -100,7 +98,8 @@ describe('MdSnackBar', () => {
     expect(snackBarRef.instance instanceof SimpleSnackBar)
       .toBe(true, 'Expected the snack bar content component to be SimpleSnackBar');
     expect(snackBarRef.instance.snackBarRef)
-      .toBe(snackBarRef, 'Expected the snack bar reference to be placed in the component instance');
+      .toBe(snackBarRef,
+            'Expected the snack bar reference to be placed in the component instance');
 
     let messageElement = overlayContainerElement.querySelector('snack-bar-container')!;
     expect(messageElement.textContent)
@@ -115,7 +114,7 @@ describe('MdSnackBar', () => {
   });
 
   it('should open a simple message with no button', () => {
-    let config = {viewContainerRef: testViewContainerRef};
+    let config: MdSnackBarConfig = {viewContainerRef: testViewContainerRef};
     let snackBarRef = snackBar.open(simpleMessage, undefined, config);
 
     viewContainerFixture.detectChanges();
@@ -133,7 +132,7 @@ describe('MdSnackBar', () => {
   });
 
   it('should dismiss the snack bar and remove itself from the view', async(() => {
-    let config = {viewContainerRef: testViewContainerRef};
+    let config: MdSnackBarConfig = {viewContainerRef: testViewContainerRef};
     let dismissObservableCompleted = false;
 
     let snackBarRef = snackBar.open(simpleMessage, undefined, config);
@@ -183,33 +182,38 @@ describe('MdSnackBar', () => {
   }));
 
   it('should set the animation state to visible on entry', () => {
-    let config = {viewContainerRef: testViewContainerRef};
+    let config: MdSnackBarConfig = {viewContainerRef: testViewContainerRef};
     let snackBarRef = snackBar.open(simpleMessage, undefined, config);
 
     viewContainerFixture.detectChanges();
-    expect(snackBarRef.containerInstance.animationState)
-        .toBe('visible', `Expected the animation state would be 'visible'.`);
+    expect(snackBarRef.containerInstance.getAnimationState())
+        .toBe('visible-bottom', `Expected the animation state would be 'visible-bottom'.`);
+    snackBarRef.dismiss();
+
+    viewContainerFixture.detectChanges();
+    expect(snackBarRef.containerInstance.getAnimationState())
+        .toBe('hidden-bottom', `Expected the animation state would be 'hidden-bottom'.`);
   });
 
   it('should set the animation state to complete on exit', () => {
-    let config = {viewContainerRef: testViewContainerRef};
+    let config: MdSnackBarConfig = {viewContainerRef: testViewContainerRef};
     let snackBarRef = snackBar.open(simpleMessage, undefined, config);
     snackBarRef.dismiss();
 
     viewContainerFixture.detectChanges();
-    expect(snackBarRef.containerInstance.animationState)
-        .toBe('complete', `Expected the animation state would be 'complete'.`);
+    expect(snackBarRef.containerInstance.getAnimationState())
+        .toBe('hidden-bottom', `Expected the animation state would be 'hidden-bottom'.`);
   });
 
   it(`should set the old snack bar animation state to complete and the new snack bar animation
       state to visible on entry of new snack bar`, async(() => {
-    let config = {viewContainerRef: testViewContainerRef};
+    let config: MdSnackBarConfig = {viewContainerRef: testViewContainerRef};
     let snackBarRef = snackBar.open(simpleMessage, undefined, config);
     let dismissObservableCompleted = false;
 
     viewContainerFixture.detectChanges();
-    expect(snackBarRef.containerInstance.animationState)
-        .toBe('visible', `Expected the animation state would be 'visible'.`);
+    expect(snackBarRef.containerInstance.getAnimationState())
+        .toBe('visible-bottom', `Expected the animation state would be 'visible-bottom'.`);
 
     let config2 = {viewContainerRef: testViewContainerRef};
     let snackBarRef2 = snackBar.open(simpleMessage, undefined, config2);
@@ -221,16 +225,17 @@ describe('MdSnackBar', () => {
 
     viewContainerFixture.whenStable().then(() => {
       expect(dismissObservableCompleted).toBe(true);
-      expect(snackBarRef.containerInstance.animationState)
-          .toBe('complete', `Expected the animation state would be 'complete'.`);
-      expect(snackBarRef2.containerInstance.animationState)
-          .toBe('visible', `Expected the animation state would be 'visible'.`);
+      expect(snackBarRef.containerInstance.getAnimationState())
+          .toBe('hidden-bottom', `Expected the animation state would be 'hidden-bottom'.`);
+      expect(snackBarRef2.containerInstance.getAnimationState())
+          .toBe('visible-bottom', `Expected the animation state would be 'visible-bottom'.`);
     });
   }));
 
   it('should open a new snackbar after dismissing a previous snackbar', async(() => {
-    let config = {viewContainerRef: testViewContainerRef};
+    let config: MdSnackBarConfig = {viewContainerRef: testViewContainerRef};
     let snackBarRef = snackBar.open(simpleMessage, 'Dismiss', config);
+
     viewContainerFixture.detectChanges();
 
     snackBarRef.dismiss();
@@ -243,7 +248,8 @@ describe('MdSnackBar', () => {
 
       // Wait for the snackbar open animation to finish.
       viewContainerFixture.whenStable().then(() => {
-        expect(snackBarRef.containerInstance.animationState).toBe('visible');
+        expect(snackBarRef.containerInstance.getAnimationState())
+            .toBe('visible-bottom', `Expected the animation state would be 'visible-bottom'.`);
       });
     });
   }));
@@ -506,6 +512,240 @@ describe('MdSnackBar with parent MdSnackBar', () => {
   }));
 });
 
+
+describe('MdSnackBar Positioning', () => {
+  let snackBar: MdSnackBar;
+  let liveAnnouncer: LiveAnnouncer;
+  let overlayContainerEl: HTMLElement;
+
+  let testViewContainerRef: ViewContainerRef;
+  let viewContainerFixture: ComponentFixture<ComponentWithChildViewContainer>;
+
+  let simpleMessage = 'Burritos are here!';
+  let simpleActionLabel = 'pickup';
+
+  beforeEach(async(() => {
+    TestBed.configureTestingModule({
+      imports: [MdSnackBarModule, SnackBarTestModule, NoopAnimationsModule],
+      providers: [
+        {provide: OverlayContainer, useFactory: () => {
+          overlayContainerEl = document.createElement('div');
+          return {getContainerElement: () => overlayContainerEl};
+        }}
+      ],
+    });
+    TestBed.compileComponents();
+  }));
+
+  beforeEach(inject([MdSnackBar, LiveAnnouncer], (sb: MdSnackBar, la: LiveAnnouncer) => {
+    snackBar = sb;
+    liveAnnouncer = la;
+  }));
+
+  afterEach(() => {
+    overlayContainerEl.innerHTML = '';
+    liveAnnouncer.ngOnDestroy();
+  });
+
+  beforeEach(() => {
+    viewContainerFixture = TestBed.createComponent(ComponentWithChildViewContainer);
+
+    viewContainerFixture.detectChanges();
+    testViewContainerRef = viewContainerFixture.componentInstance.childViewContainer;
+  });
+
+  it('should default to bottom center', () => {
+    let config: MdSnackBarConfig = {};
+    snackBar.open(simpleMessage, simpleActionLabel, config);
+    let containerEl = overlayContainerEl.querySelector('snack-bar-container') as HTMLElement;
+    let overlayPaneEl = overlayContainerEl.querySelector('.cdk-overlay-pane') as HTMLElement;
+
+    expect(containerEl.classList.contains('mat-snack-bar-center')).toBeTruthy();
+    expect(containerEl.classList.contains('mat-snack-bar-top')).toBeFalsy();
+    expect(overlayPaneEl.style.marginBottom).toBe('0px', 'Expected margin-bottom to be "0px"');
+    expect(overlayPaneEl.style.marginTop).toBe('', 'Expected margin-top to be ""');
+    expect(overlayPaneEl.style.marginRight).toBe('', 'Expected margin-right to be ""');
+    expect(overlayPaneEl.style.marginLeft).toBe('', 'Expected margin-left  to be ""');
+   });
+
+  it('should be in the bottom left corner', () => {
+    let config: MdSnackBarConfig = {
+      verticalPosition: 'bottom',
+      horizontalPosition: 'left'
+    };
+    snackBar.open(simpleMessage, simpleActionLabel, config);
+    let containerEl = overlayContainerEl.querySelector('snack-bar-container') as HTMLElement;
+    let overlayPaneEl = overlayContainerEl.querySelector('.cdk-overlay-pane') as HTMLElement;
+
+    expect(containerEl.classList.contains('mat-snack-bar-center')).toBeFalsy();
+    expect(containerEl.classList.contains('mat-snack-bar-top')).toBeFalsy();
+    expect(overlayPaneEl.style.marginBottom).toBe('0px', 'Expected margin-bottom to be "0px"');
+    expect(overlayPaneEl.style.marginTop).toBe('', 'Expected margin-top to be ""');
+    expect(overlayPaneEl.style.marginRight).toBe('', 'Expected margin-right to be ""');
+    expect(overlayPaneEl.style.marginLeft).toBe('0px', 'Expected margin-left  to be "0px"');
+   });
+
+   it('should be in the bottom right corner', () => {
+    let config: MdSnackBarConfig = {
+      verticalPosition: 'bottom',
+      horizontalPosition: 'right'
+    };
+    snackBar.open(simpleMessage, simpleActionLabel, config);
+    let containerEl = overlayContainerEl.querySelector('snack-bar-container') as HTMLElement;
+    let overlayPaneEl = overlayContainerEl.querySelector('.cdk-overlay-pane') as HTMLElement;
+
+    expect(containerEl.classList.contains('mat-snack-bar-center')).toBeFalsy();
+    expect(containerEl.classList.contains('mat-snack-bar-top')).toBeFalsy();
+    expect(overlayPaneEl.style.marginBottom).toBe('0px', 'Expected margin-bottom to be "0px"');
+    expect(overlayPaneEl.style.marginTop).toBe('', 'Expected margin-top to be ""');
+    expect(overlayPaneEl.style.marginRight).toBe('0px', 'Expected margin-right to be "0px"');
+    expect(overlayPaneEl.style.marginLeft).toBe('', 'Expected margin-left  to be ""');
+   });
+
+   it('should be in the bottom center', () => {
+    let config: MdSnackBarConfig = {
+      verticalPosition: 'bottom',
+      horizontalPosition: 'center'
+    };
+    snackBar.open(simpleMessage, simpleActionLabel, config);
+    let containerEl = overlayContainerEl.querySelector('snack-bar-container') as HTMLElement;
+    let overlayPaneEl = overlayContainerEl.querySelector('.cdk-overlay-pane') as HTMLElement;
+
+    expect(containerEl.classList.contains('mat-snack-bar-center')).toBeTruthy();
+    expect(containerEl.classList.contains('mat-snack-bar-top')).toBeFalsy();
+    expect(overlayPaneEl.style.marginBottom).toBe('0px', 'Expected margin-bottom to be "0px"');
+    expect(overlayPaneEl.style.marginTop).toBe('', 'Expected margin-top to be ""');
+    expect(overlayPaneEl.style.marginRight).toBe('', 'Expected margin-right to be ""');
+    expect(overlayPaneEl.style.marginLeft).toBe('', 'Expected margin-left  to be ""');
+   });
+
+   it('should be in the top left corner', () => {
+    let config: MdSnackBarConfig = {
+      verticalPosition: 'top',
+      horizontalPosition: 'left'
+    };
+    snackBar.open(simpleMessage, simpleActionLabel, config);
+    let containerEl = overlayContainerEl.querySelector('snack-bar-container') as HTMLElement;
+    let overlayPaneEl = overlayContainerEl.querySelector('.cdk-overlay-pane') as HTMLElement;
+
+    expect(containerEl.classList.contains('mat-snack-bar-center')).toBeFalsy();
+    expect(containerEl.classList.contains('mat-snack-bar-top')).toBeTruthy();
+    expect(overlayPaneEl.style.marginBottom).toBe('', 'Expected margin-bottom to be ""');
+    expect(overlayPaneEl.style.marginTop).toBe('0px', 'Expected margin-top to be "0px"');
+    expect(overlayPaneEl.style.marginRight).toBe('', 'Expected margin-right to be ""');
+    expect(overlayPaneEl.style.marginLeft).toBe('0px', 'Expected margin-left  to be "0px"');
+   });
+
+   it('should be in the top right corner', () => {
+    let config: MdSnackBarConfig = {
+      verticalPosition: 'top',
+      horizontalPosition: 'right'
+    };
+    snackBar.open(simpleMessage, simpleActionLabel, config);
+    let containerEl = overlayContainerEl.querySelector('snack-bar-container') as HTMLElement;
+    let overlayPaneEl = overlayContainerEl.querySelector('.cdk-overlay-pane') as HTMLElement;
+
+    expect(containerEl.classList.contains('mat-snack-bar-center')).toBeFalsy();
+    expect(containerEl.classList.contains('mat-snack-bar-top')).toBeTruthy();
+    expect(overlayPaneEl.style.marginBottom).toBe('', 'Expected margin-bottom to be ""');
+    expect(overlayPaneEl.style.marginTop).toBe('0px', 'Expected margin-top to be "0px"');
+    expect(overlayPaneEl.style.marginRight).toBe('0px', 'Expected margin-right to be "0px"');
+    expect(overlayPaneEl.style.marginLeft).toBe('', 'Expected margin-left  to be ""');
+   });
+
+   it('should be in the top center', () => {
+    let config: MdSnackBarConfig = {
+      verticalPosition: 'top',
+      horizontalPosition: 'center'
+    };
+    snackBar.open(simpleMessage, simpleActionLabel, config);
+    let containerEl = overlayContainerEl.querySelector('snack-bar-container') as HTMLElement;
+    let overlayPaneEl = overlayContainerEl.querySelector('.cdk-overlay-pane') as HTMLElement;
+
+    expect(containerEl.classList.contains('mat-snack-bar-center')).toBeTruthy();
+    expect(containerEl.classList.contains('mat-snack-bar-top')).toBeTruthy();
+    expect(overlayPaneEl.style.marginBottom).toBe('', 'Expected margin-bottom to be ""');
+    expect(overlayPaneEl.style.marginTop).toBe('0px', 'Expected margin-top to be "0px"');
+    expect(overlayPaneEl.style.marginRight).toBe('', 'Expected margin-right to be ""');
+    expect(overlayPaneEl.style.marginLeft).toBe('', 'Expected margin-left  to be ""');
+   });
+
+   it('should handle start based on direction (rtl)', () => {
+    let config: MdSnackBarConfig = {
+      verticalPosition: 'top',
+      horizontalPosition: 'start',
+      direction: 'rtl',
+    };
+    snackBar.open(simpleMessage, simpleActionLabel, config);
+    let containerEl = overlayContainerEl.querySelector('snack-bar-container') as HTMLElement;
+    let overlayPaneEl = overlayContainerEl.querySelector('.cdk-overlay-pane') as HTMLElement;
+
+    expect(containerEl.classList.contains('mat-snack-bar-center')).toBeFalsy();
+    expect(containerEl.classList.contains('mat-snack-bar-top')).toBeTruthy();
+    expect(overlayPaneEl.style.marginBottom).toBe('', 'Expected margin-bottom to be ""');
+    expect(overlayPaneEl.style.marginTop).toBe('0px', 'Expected margin-top to be "0px"');
+    expect(overlayPaneEl.style.marginRight).toBe('0px', 'Expected margin-right to be "0px"');
+    expect(overlayPaneEl.style.marginLeft).toBe('', 'Expected margin-left  to be ""');
+  });
+
+  it('should handle start based on direction (ltr)', () => {
+    let config: MdSnackBarConfig = {
+      verticalPosition: 'top',
+      horizontalPosition: 'start',
+      direction: 'ltr',
+    };
+    snackBar.open(simpleMessage, simpleActionLabel, config);
+    let containerEl = overlayContainerEl.querySelector('snack-bar-container') as HTMLElement;
+    let overlayPaneEl = overlayContainerEl.querySelector('.cdk-overlay-pane') as HTMLElement;
+
+    expect(containerEl.classList.contains('mat-snack-bar-center')).toBeFalsy();
+    expect(containerEl.classList.contains('mat-snack-bar-top')).toBeTruthy();
+    expect(overlayPaneEl.style.marginBottom).toBe('', 'Expected margin-bottom to be ""');
+    expect(overlayPaneEl.style.marginTop).toBe('0px', 'Expected margin-top to be "0px"');
+    expect(overlayPaneEl.style.marginRight).toBe('', 'Expected margin-right to be ""');
+    expect(overlayPaneEl.style.marginLeft).toBe('0px', 'Expected margin-left  to be "0px"');
+  });
+
+
+  it('should handle end based on direction (rtl)', () => {
+    let config: MdSnackBarConfig = {
+      verticalPosition: 'top',
+      horizontalPosition: 'end',
+      direction: 'rtl',
+    };
+    snackBar.open(simpleMessage, simpleActionLabel, config);
+    let containerEl = overlayContainerEl.querySelector('snack-bar-container') as HTMLElement;
+    let overlayPaneEl = overlayContainerEl.querySelector('.cdk-overlay-pane') as HTMLElement;
+
+    expect(containerEl.classList.contains('mat-snack-bar-center')).toBeFalsy();
+    expect(containerEl.classList.contains('mat-snack-bar-top')).toBeTruthy();
+    expect(overlayPaneEl.style.marginBottom).toBe('', 'Expected margin-bottom to be ""');
+    expect(overlayPaneEl.style.marginTop).toBe('0px', 'Expected margin-top to be "0px"');
+    expect(overlayPaneEl.style.marginRight).toBe('', 'Expected margin-right to be ""');
+    expect(overlayPaneEl.style.marginLeft).toBe('0px', 'Expected margin-left  to be "0px"');
+  });
+
+  it('should handle end based on direction (ltr)', () => {
+    let config: MdSnackBarConfig = {
+      verticalPosition: 'top',
+      horizontalPosition: 'end',
+      direction: 'ltr',
+    };
+    snackBar.open(simpleMessage, simpleActionLabel, config);
+    let containerEl = overlayContainerEl.querySelector('snack-bar-container') as HTMLElement;
+    let overlayPaneEl = overlayContainerEl.querySelector('.cdk-overlay-pane') as HTMLElement;
+
+    expect(containerEl.classList.contains('mat-snack-bar-center')).toBeFalsy();
+    expect(containerEl.classList.contains('mat-snack-bar-top')).toBeTruthy();
+    expect(overlayPaneEl.style.marginBottom).toBe('', 'Expected margin-bottom to be ""');
+    expect(overlayPaneEl.style.marginTop).toBe('0px', 'Expected margin-top to be "0px"');
+    expect(overlayPaneEl.style.marginRight).toBe('0px', 'Expected margin-right to be "0px"');
+    expect(overlayPaneEl.style.marginLeft).toBe('', 'Expected margin-left  to be ""');
+  });
+
+});
+
+
 @Directive({selector: 'dir-with-view-container'})
 class DirectiveWithViewContainer {
   constructor(public viewContainerRef: ViewContainerRef) { }
diff --git a/src/lib/snack-bar/snack-bar.ts b/src/lib/snack-bar/snack-bar.ts
index 8c2b89799024..8696895c04ad 100644
--- a/src/lib/snack-bar/snack-bar.ts
+++ b/src/lib/snack-bar/snack-bar.ts
@@ -153,11 +153,32 @@ export class MdSnackBar {
    * @param config The user-specified snack bar config.
    */
   private _createOverlay(config: MdSnackBarConfig): OverlayRef {
-    const state = new OverlayState({
-      direction: config.direction,
-      positionStrategy: this._overlay.position().global().centerHorizontally().bottom('0')
-    });
+    const state = new OverlayState();
+    state.direction = config.direction;
+
+    let positionStrategy = this._overlay.position().global();
+    // Set horizontal position.
+    const isRtl = config.direction === 'rtl';
+    const isLeft = (
+      config.horizontalPosition === 'left' ||
+      (config.horizontalPosition === 'start' && !isRtl) ||
+      (config.horizontalPosition === 'end' && isRtl));
+    const isRight = !isLeft && config.horizontalPosition !== 'center';
+    if (isLeft) {
+      positionStrategy.left('0');
+    } else if (isRight) {
+      positionStrategy.right('0');
+    } else {
+      positionStrategy.centerHorizontally();
+    }
+    // Set horizontal position.
+    if (config.verticalPosition === 'top') {
+      positionStrategy.top('0');
+    } else {
+      positionStrategy.bottom('0');
+    }
 
+    state.positionStrategy = positionStrategy;
     return this._overlay.create(state);
   }