diff --git a/src/lib/button-toggle/button-toggle.spec.ts b/src/lib/button-toggle/button-toggle.spec.ts
index 2cbca33c716..9a98d523802 100644
--- a/src/lib/button-toggle/button-toggle.spec.ts
+++ b/src/lib/button-toggle/button-toggle.spec.ts
@@ -723,7 +723,21 @@ describe('MatButtonToggle without forms', () => {
 
       const host = fixture.nativeElement.querySelector('.mat-button-toggle');
 
-      expect(host.hasAttribute('tabindex')).toBe(false);
+      expect(host.getAttribute('tabindex')).toBe('-1');
+    });
+
+    it('should forward focus to the underlying button when the host is focused', () => {
+      const fixture = TestBed.createComponent(ButtonToggleWithTabindex);
+      fixture.detectChanges();
+
+      const host = fixture.nativeElement.querySelector('.mat-button-toggle');
+      const button = host.querySelector('button');
+
+      expect(document.activeElement).not.toBe(button);
+
+      host.focus();
+
+      expect(document.activeElement).toBe(button);
     });
   });
 
diff --git a/src/lib/button-toggle/button-toggle.ts b/src/lib/button-toggle/button-toggle.ts
index e827ab30319..c4b728bc9da 100644
--- a/src/lib/button-toggle/button-toggle.ts
+++ b/src/lib/button-toggle/button-toggle.ts
@@ -365,9 +365,11 @@ export const _MatButtonToggleMixinBase: CanDisableRippleCtor & typeof MatButtonT
     '[class.mat-button-toggle-disabled]': 'disabled',
     '[class.mat-button-toggle-appearance-standard]': 'appearance === "standard"',
     'class': 'mat-button-toggle',
-    // Clear out the native tabindex here since we forward it to the underlying button
-    '[attr.tabindex]': 'null',
+    // Always reset the tabindex to -1 so it doesn't conflict with the one on the `button`,
+    // but can still receive focus from things like cdkFocusInitial.
+    '[attr.tabindex]': '-1',
     '[attr.id]': 'id',
+    '(focus)': 'focus()',
   }
 })
 export class MatButtonToggle extends _MatButtonToggleMixinBase implements OnInit,