diff --git a/e2e/components/dialog/dialog.e2e.ts b/e2e/components/dialog/dialog.e2e.ts
new file mode 100644
index 00000000000..105f8e91abe
--- /dev/null
+++ b/e2e/components/dialog/dialog.e2e.ts
@@ -0,0 +1,105 @@
+describe('dialog', () => {
+  beforeEach(() => browser.get('/dialog'));
+
+  it('should open a dialog', () => {
+    element(by.id('default')).click();
+    waitForDialog().then(isPresent => expect(isPresent).toBe(true));
+  });
+
+  it('should close by clicking on the backdrop', () => {
+    element(by.id('default')).click();
+
+    waitForDialog().then(() => {
+      clickOnBackrop();
+      waitForDialog().then(isPresent => expect(isPresent).toBe(false));
+    });
+  });
+
+  it('should close by pressing escape', () => {
+    element(by.id('default')).click();
+
+    waitForDialog().then(() => {
+      pressEscape();
+      waitForDialog().then(isPresent => expect(isPresent).toBe(false));
+    });
+  });
+
+  it('should close by clicking on the "close" button', () => {
+    element(by.id('default')).click();
+
+    waitForDialog().then(() => {
+      element(by.id('close')).click();
+      waitForDialog().then(isPresent => expect(isPresent).toBe(false));
+    });
+  });
+
+  it('should focus the first focusable element', () => {
+    element(by.id('default')).click();
+
+    waitForDialog().then(() => {
+      expectFocusOn(element(by.css('md-dialog-container input')));
+    });
+  });
+
+  it('should restore focus to the element that opened the dialog', () => {
+    let openButton = element(by.id('default'));
+
+    openButton.click();
+
+    waitForDialog().then(() => {
+      clickOnBackrop();
+      expectFocusOn(openButton);
+    });
+  });
+
+  it('should prevent tabbing out of the dialog', () => {
+    element(by.id('default')).click();
+
+    waitForDialog().then(() => {
+      let tab = protractor.Key.TAB;
+
+      browser.actions().sendKeys(tab, tab, tab).perform();
+      expectFocusOn(element(by.id('close')));
+    });
+  });
+
+  it('should be able to prevent closing by clicking on the backdrop', () => {
+    element(by.id('disabled')).click();
+
+    waitForDialog().then(() => {
+      clickOnBackrop();
+      waitForDialog().then(isPresent => expect(isPresent).toBe(true));
+    });
+  });
+
+  it('should be able to prevent closing by pressing escape', () => {
+    element(by.id('disabled')).click();
+
+    waitForDialog().then(() => {
+      pressEscape();
+      waitForDialog().then(isPresent => expect(isPresent).toBe(true));
+    });
+  });
+
+  function waitForDialog() {
+    return browser.isElementPresent(by.css('md-dialog-container'));
+  }
+
+  function clickOnBackrop() {
+    browser.actions()
+      // We need to move the cursor to the top left so
+      // the dialog doesn't receive the click accidentally.
+      .mouseMove(element(by.css('.md-overlay-backdrop')).getWebElement(), { x: 0, y: 0 })
+      .click()
+      .perform();
+  }
+
+  function pressEscape() {
+    browser.actions().sendKeys(protractor.Key.ESCAPE).perform();
+  }
+
+  // TODO(crisbeto): should be moved to a common util. copied from the menu e2e setup.
+  function expectFocusOn(el: any): void {
+    expect(browser.driver.switchTo().activeElement().getInnerHtml()).toBe(el.getInnerHtml());
+  }
+});
diff --git a/src/e2e-app/dialog/dialog-e2e.html b/src/e2e-app/dialog/dialog-e2e.html
new file mode 100644
index 00000000000..827bfee99ca
--- /dev/null
+++ b/src/e2e-app/dialog/dialog-e2e.html
@@ -0,0 +1,2 @@
+<button id="default" (click)="openDefault()">DEFAULT</button>
+<button id="disabled" (click)="openDisabled()">DISABLED</button>
diff --git a/src/e2e-app/dialog/dialog-e2e.ts b/src/e2e-app/dialog/dialog-e2e.ts
new file mode 100644
index 00000000000..068406bbc5c
--- /dev/null
+++ b/src/e2e-app/dialog/dialog-e2e.ts
@@ -0,0 +1,42 @@
+import {Component} from '@angular/core';
+import {MdDialog, MdDialogRef, MdDialogConfig} from '@angular/material';
+
+@Component({
+  selector: 'dialog-e2e',
+  moduleId: module.id,
+  templateUrl: 'dialog-e2e.html'
+})
+export class DialogE2E {
+  dialogRef: MdDialogRef<TestDialog>;
+
+  constructor (private _dialog: MdDialog) { }
+
+  private _openDialog(config?: MdDialogConfig) {
+    this.dialogRef = this._dialog.open(TestDialog, config);
+
+    this.dialogRef.afterClosed().subscribe(() => {
+      this.dialogRef = null;
+    });
+  }
+
+  openDefault() {
+    this._openDialog();
+  }
+
+  openDisabled() {
+    this._openDialog({
+      disableClose: true
+    });
+  }
+}
+
+@Component({
+  selector: 'dialog-e2e-test',
+  template: `
+  <p>Lorem ipsum dolor sit amet, consectetur adipisicing elit.</p>
+  <input/>
+  <button type="button" (click)="dialogRef.close()" id="close">CLOSE</button>`
+})
+export class TestDialog {
+  constructor(public dialogRef: MdDialogRef<TestDialog>) { }
+}
diff --git a/src/e2e-app/e2e-app-module.ts b/src/e2e-app/e2e-app-module.ts
index 59b560d71bb..246872d1620 100644
--- a/src/e2e-app/e2e-app-module.ts
+++ b/src/e2e-app/e2e-app-module.ts
@@ -8,6 +8,7 @@ import {ButtonE2E} from './button/button-e2e';
 import {MenuE2E} from './menu/menu-e2e';
 import {SimpleRadioButtons} from './radio/radio-e2e';
 import {BasicTabs} from './tabs/tabs-e2e';
+import {DialogE2E, TestDialog} from './dialog/dialog-e2e';
 import {MaterialModule} from '@angular/material';
 import {E2E_APP_ROUTES} from './e2e-app/routes';
 
@@ -27,10 +28,13 @@ import {E2E_APP_ROUTES} from './e2e-app/routes';
     SimpleRadioButtons,
     SimpleCheckboxes,
     Home,
+    DialogE2E,
+    TestDialog,
   ],
   bootstrap: [E2EApp],
   providers: [
     {provide: AnimationDriver, useValue: AnimationDriver.NOOP}
-  ]
+  ],
+  entryComponents: [TestDialog]
 })
 export class E2eAppModule { }
diff --git a/src/e2e-app/e2e-app/e2e-app.html b/src/e2e-app/e2e-app/e2e-app.html
index 084d2d854f5..8ca1b82bf45 100644
--- a/src/e2e-app/e2e-app/e2e-app.html
+++ b/src/e2e-app/e2e-app/e2e-app.html
@@ -1,5 +1,6 @@
 <a md-list-item [routerLink]="['button']">Button</a>
 <a md-list-item [routerLink]="['checkbox']">Checkbox</a>
+<a md-list-item [routerLink]="['dialog']">Dialog</a>
 <a md-list-item [routerLink]="['icon']">Icon</a>
 <a md-list-item [routerLink]="['menu']">Menu</a>
 <a md-list-item [routerLink]="['radio']">Radios</a>
diff --git a/src/e2e-app/e2e-app/routes.ts b/src/e2e-app/e2e-app/routes.ts
index 8ed58c0bae2..cf42c461866 100644
--- a/src/e2e-app/e2e-app/routes.ts
+++ b/src/e2e-app/e2e-app/routes.ts
@@ -6,6 +6,7 @@ import {IconE2E} from '../icon/icon-e2e';
 import {MenuE2E} from '../menu/menu-e2e';
 import {SimpleRadioButtons} from '../radio/radio-e2e';
 import {SimpleCheckboxes} from '../checkbox/checkbox-e2e';
+import {DialogE2E} from '../dialog/dialog-e2e';
 
 export const E2E_APP_ROUTES: Routes = [
   {path: '', component: Home},
@@ -14,6 +15,6 @@ export const E2E_APP_ROUTES: Routes = [
   {path: 'menu', component: MenuE2E},
   {path: 'icon', component: IconE2E},
   {path: 'radio', component: SimpleRadioButtons},
-  {path: 'tabs', component: BasicTabs}
-
+  {path: 'tabs', component: BasicTabs},
+  {path: 'dialog', component: DialogE2E},
 ];