diff --git a/e2e/components/tabs/tabs.e2e.ts b/e2e/components/tabs/tabs.e2e.ts
index a4696d79089..daf4171824a 100644
--- a/e2e/components/tabs/tabs.e2e.ts
+++ b/e2e/components/tabs/tabs.e2e.ts
@@ -78,7 +78,7 @@ function getFocusStates(elements: ElementArrayFinder) {
  * @returns {webdriver.promise.Promise<Promise<boolean>[]>|webdriver.promise.Promise<T[]>}
  */
 function getActiveStates(elements: ElementArrayFinder) {
-  return getClassStates(elements, 'md-active');
+  return getClassStates(elements, 'md-tab-active');
 }
 
 /**
diff --git a/src/components/tabs/tab-group.html b/src/components/tabs/tab-group.html
index 1811d1b3cd8..425d7327b32 100644
--- a/src/components/tabs/tab-group.html
+++ b/src/components/tabs/tab-group.html
@@ -6,7 +6,8 @@
        [tabIndex]="selectedIndex == i ? 0 : -1"
        [attr.aria-controls]="_getTabContentId(i)"
        [attr.aria-selected]="selectedIndex == i"
-       [class.md-active]="selectedIndex == i"
+       [class.md-tab-active]="selectedIndex == i"
+       [class.md-tab-disabled]="tab.disabled"
        (click)="focusIndex = selectedIndex = i">
     <template [portalHost]="tab.label"></template>
   </div>
@@ -17,7 +18,7 @@
        role="tabpanel"
        *ngFor="let tab of _tabs; let i = index"
        [id]="_getTabContentId(i)"
-       [class.md-active]="selectedIndex == i"
+       [class.md-tab-active]="selectedIndex == i"
        [attr.aria-labelledby]="_getTabLabelId(i)">
     <template [ngIf]="selectedIndex == i">
       <template [portalHost]="tab.content"></template>
diff --git a/src/components/tabs/tab-group.scss b/src/components/tabs/tab-group.scss
index 4a4db09e4bd..ae6b6ef8c5c 100644
--- a/src/components/tabs/tab-group.scss
+++ b/src/components/tabs/tab-group.scss
@@ -40,6 +40,11 @@ $md-tab-bar-height: 48px !default;
   }
 }
 
+.md-tab-disabled {
+  cursor: default;
+  pointer-events: none;
+}
+
 /** The bottom section of the view; contains the tab bodies */
 .md-tab-body-wrapper {
   position: relative;
diff --git a/src/components/tabs/tab-group.spec.ts b/src/components/tabs/tab-group.spec.ts
index dd352545fb8..05261c20368 100644
--- a/src/components/tabs/tab-group.spec.ts
+++ b/src/components/tabs/tab-group.spec.ts
@@ -151,6 +151,92 @@ describe('MdTabGroup', () => {
     }));
   });
 
+  describe('disabled tabs', () => {
+    let fixture: ComponentFixture<DisabledTabsTestApp>;
+
+    beforeEach(async(() => {
+      builder.createAsync(DisabledTabsTestApp).then(f => {
+        fixture = f;
+        fixture.detectChanges();
+      });
+    }));
+
+    it('should disable the second tab', () => {
+      let labels = fixture.debugElement.queryAll(By.css('.md-tab-label'));
+
+      expect(labels[1].nativeElement.classList.contains('md-tab-disabled')).toBeTruthy();
+    });
+
+    it('should skip over disabled tabs when navigating by keyboard', () => {
+      let component: MdTabGroup = fixture.debugElement.query(By.css('md-tab-group'))
+          .componentInstance;
+
+      component.focusIndex = 0;
+      component.focusNextTab();
+
+      expect(component.focusIndex).toBe(2);
+
+      component.focusNextTab();
+      expect(component.focusIndex).toBe(2);
+
+      component.focusPreviousTab();
+      expect(component.focusIndex).toBe(0);
+
+      component.focusPreviousTab();
+      expect(component.focusIndex).toBe(0);
+    });
+
+    it('should ignore attempts to select a disabled tab', () => {
+      let component: MdTabGroup = fixture.debugElement.query(By.css('md-tab-group'))
+          .componentInstance;
+
+      component.selectedIndex = 0;
+      expect(component.selectedIndex).toBe(0);
+
+      component.selectedIndex = 1;
+      expect(component.selectedIndex).toBe(0);
+    });
+
+    it('should ignore attempts to focus a disabled tab', () => {
+      let component: MdTabGroup = fixture.debugElement.query(By.css('md-tab-group'))
+          .componentInstance;
+
+      component.focusIndex = 0;
+      expect(component.focusIndex).toBe(0);
+
+      component.focusIndex = 1;
+      expect(component.focusIndex).toBe(0);
+    });
+
+    it('should ignore attempts to set invalid selectedIndex', () => {
+      let component: MdTabGroup = fixture.debugElement.query(By.css('md-tab-group'))
+          .componentInstance;
+
+      component.selectedIndex = 0;
+      expect(component.selectedIndex).toBe(0);
+
+      component.selectedIndex = -1;
+      expect(component.selectedIndex).toBe(0);
+
+      component.selectedIndex = 4;
+      expect(component.selectedIndex).toBe(0);
+    });
+
+    it('should ignore attempts to set invalid focusIndex', () => {
+      let component: MdTabGroup = fixture.debugElement.query(By.css('md-tab-group'))
+          .componentInstance;
+
+      component.focusIndex = 0;
+      expect(component.focusIndex).toBe(0);
+
+      component.focusIndex = -1;
+      expect(component.focusIndex).toBe(0);
+
+      component.focusIndex = 4;
+      expect(component.focusIndex).toBe(0);
+    });
+  });
+
   describe('async tabs', () => {
     let fixture: ComponentFixture<AsyncTabsTestApp>;
 
@@ -173,7 +259,7 @@ describe('MdTabGroup', () => {
 
   /**
    * Checks that the `selectedIndex` has been updated; checks that the label and body have the
-   * `md-active` class
+   * `md-tab-active` class
    */
   function checkSelectedIndex(index: number, fixture: ComponentFixture<any>) {
     fixture.detectChanges();
@@ -184,11 +270,11 @@ describe('MdTabGroup', () => {
 
     let tabLabelElement = fixture.debugElement
         .query(By.css(`.md-tab-label:nth-of-type(${index + 1})`)).nativeElement;
-    expect(tabLabelElement.classList.contains('md-active')).toBe(true);
+    expect(tabLabelElement.classList.contains('md-tab-active')).toBe(true);
 
     let tabContentElement = fixture.debugElement
         .query(By.css(`#${tabLabelElement.id}`)).nativeElement;
-    expect(tabContentElement.classList.contains('md-active')).toBe(true);
+    expect(tabContentElement.classList.contains('md-tab-active')).toBe(true);
   }
 });
 
@@ -226,6 +312,27 @@ class SimpleTabsTestApp {
   }
 }
 
+@Component({
+  selector: 'test-app',
+  template: `
+    <md-tab-group class="tab-group">
+      <md-tab>
+        <template md-tab-label>Tab One</template>
+        <template md-tab-content>Tab one content</template>
+      </md-tab>
+      <md-tab disabled>
+        <template md-tab-label>Tab Two</template>
+        <template md-tab-content>Tab two content</template>
+      </md-tab>
+      <md-tab>
+        <template md-tab-label>Tab Three</template>
+        <template md-tab-content>Tab three content</template>
+      </md-tab>
+    </md-tab-group>
+  `,
+})
+class DisabledTabsTestApp {}
+
 @Component({
   selector: 'test-app',
   template: `
diff --git a/src/components/tabs/tabs.ts b/src/components/tabs/tabs.ts
index c482679605b..6875066b7c2 100644
--- a/src/components/tabs/tabs.ts
+++ b/src/components/tabs/tabs.ts
@@ -43,6 +43,16 @@ export class MdTabChangeEvent {
 export class MdTab {
   @ContentChild(MdTabLabel) label: MdTabLabel;
   @ContentChild(MdTabContent) content: MdTabContent;
+
+  // TODO: Replace this when BooleanFieldValue is removed.
+  private _disabled = false;
+  @Input('disabled')
+  set disabled(value: boolean) {
+    this._disabled = (value != null && `${value}` !== 'false');
+  }
+  get disabled(): boolean {
+    return this._disabled;
+  }
 }
 
 /**
@@ -67,7 +77,7 @@ export class MdTabGroup {
   private _selectedIndex: number = 0;
   @Input()
   set selectedIndex(value: number) {
-    if (value != this._selectedIndex) {
+    if (value != this._selectedIndex && this.isValidIndex(value)) {
       this._selectedIndex = value;
 
       if (this._isInitialized) {
@@ -79,6 +89,19 @@ export class MdTabGroup {
     return this._selectedIndex;
   }
 
+  /**
+   * Determines if an index is valid.  If the tabs are not ready yet, we assume that the user is
+   * providing a valid index and return true.
+   */
+  isValidIndex(index: number): boolean {
+    if (this._tabs) {
+      const tab = this._tabs.toArray()[index];
+      return tab && !tab.disabled;
+    } else {
+      return true;
+    }
+  }
+
   /** Output to enable support for two-way binding on `selectedIndex`. */
   @Output('selectedIndexChange') private get _selectedIndexChange(): Observable<number> {
     return this.selectChange.map(event => event.index);
@@ -137,14 +160,16 @@ export class MdTabGroup {
 
   /** When the focus index is set, we must manually send focus to the correct label */
   set focusIndex(value: number) {
-    this._focusIndex = value;
+    if (this.isValidIndex(value)) {
+      this._focusIndex = value;
 
-    if (this._isInitialized) {
-      this._onFocusChange.emit(this._createChangeEvent(value));
-    }
+      if (this._isInitialized) {
+        this._onFocusChange.emit(this._createChangeEvent(value));
+      }
 
-    if (this._labelWrappers && this._labelWrappers.length) {
-      this._labelWrappers.toArray()[value].focus();
+      if (this._labelWrappers && this._labelWrappers.length) {
+        this._labelWrappers.toArray()[value].focus();
+      }
     }
   }
 
@@ -181,18 +206,29 @@ export class MdTabGroup {
     }
   }
 
-  /** Increment the focus index by 1; prevent going over the number of tabs */
-  focusNextTab(): void {
-    if (this._labelWrappers && this.focusIndex < this._labelWrappers.length - 1) {
-      this.focusIndex++;
+  /**
+   * Moves the focus left or right depending on the offset provided.  Valid offsets are 1 and -1.
+   */
+  moveFocus(offset: number) {
+    if (this._labelWrappers) {
+      const tabs: MdTab[] = this._tabs.toArray();
+      for (let i = this.focusIndex + offset; i < tabs.length && i >= 0; i += offset) {
+        if (this.isValidIndex(i)) {
+          this.focusIndex = i;
+          return;
+        }
+      }
     }
   }
 
-  /** Decrement the focus index by 1; prevent going below 0 */
+  /** Increment the focus index by 1 until a valid tab is found. */
+  focusNextTab(): void {
+    this.moveFocus(1);
+  }
+
+  /** Decrement the focus index by 1 until a valid tab is found. */
   focusPreviousTab(): void {
-    if (this.focusIndex > 0) {
-      this.focusIndex--;
-    }
+    this.moveFocus(-1);
   }
 }
 
diff --git a/src/demo-app/tabs/tab-group-demo.html b/src/demo-app/tabs/tab-group-demo.html
index 51176c7ef35..3803814796e 100644
--- a/src/demo-app/tabs/tab-group-demo.html
+++ b/src/demo-app/tabs/tab-group-demo.html
@@ -1,7 +1,7 @@
 <h1>Tab Group Demo</h1>
 
 <md-tab-group class="demo-tab-group">
-  <md-tab *ngFor="let tab of tabs">
+  <md-tab *ngFor="let tab of tabs; let i = index" [disabled]="i == 1">
     <template md-tab-label>{{tab.label}}</template>
     <template md-tab-content>
       {{tab.content}}
@@ -16,7 +16,7 @@
 <h1>Async Tabs</h1>
 
 <md-tab-group class="demo-tab-group">
-  <md-tab *ngFor="let tab of asyncTabs | async">
+  <md-tab *ngFor="let tab of asyncTabs | async; let i = index" [disabled]="i == 1">
     <template md-tab-label>{{tab.label}}</template>
     <template md-tab-content>
       {{tab.content}}