diff --git a/package.json b/package.json
index de9a1083697..081d672cffb 100644
--- a/package.json
+++ b/package.json
@@ -23,19 +23,19 @@
     "node": ">= 4.2.1 < 5"
   },
   "dependencies": {
-    "@angular/common": "2.0.0-rc.6",
-    "@angular/compiler": "2.0.0-rc.6",
-    "@angular/core": "2.0.0-rc.6",
-    "@angular/forms": "2.0.0-rc.6",
-    "@angular/http": "2.0.0-rc.6",
-    "@angular/platform-browser": "2.0.0-rc.6",
-    "@angular/platform-browser-dynamic": "2.0.0-rc.6",
-    "@angular/router": "3.0.0-rc.2",
+    "@angular/common": "^2.0.0",
+    "@angular/compiler": "^2.0.0",
+    "@angular/core": "^2.0.0",
+    "@angular/forms": "^2.0.0",
+    "@angular/http": "^2.0.0",
+    "@angular/platform-browser": "^2.0.0",
+    "@angular/platform-browser-dynamic": "^2.0.0",
+    "@angular/router": "^3.0.0",
     "core-js": "^2.4.1",
     "hammerjs": "^2.0.8",
-    "rxjs": "5.0.0-beta.11",
-    "systemjs": "0.19.31",
-    "zone.js": "0.6.17"
+    "rxjs": "5.0.0-beta.12",
+    "systemjs": "0.19.38",
+    "zone.js": "^0.6.23"
   },
   "devDependencies": {
     "@angular/compiler-cli": "0.6.0",
@@ -71,7 +71,7 @@
     "merge2": "^1.0.2",
     "minimist": "^1.2.0",
     "node-sass": "^3.4.2",
-    "protractor": "^3.3.0",
+    "protractor": "^4.0.8",
     "protractor-accessibility-plugin": "0.1.1",
     "resolve-bin": "^0.4.0",
     "rollup": "^0.34.13",
diff --git a/src/lib/button-toggle/button-toggle.spec.ts b/src/lib/button-toggle/button-toggle.spec.ts
index ab93e493c71..0841608e6a6 100644
--- a/src/lib/button-toggle/button-toggle.spec.ts
+++ b/src/lib/button-toggle/button-toggle.spec.ts
@@ -46,7 +46,7 @@ describe('MdButtonToggle', () => {
     let buttonToggleInstances: MdButtonToggle[];
     let testComponent: ButtonTogglesInsideButtonToggleGroup;
 
-    beforeEach(async(() => {
+    beforeEach(() => {
       fixture = TestBed.createComponent(ButtonTogglesInsideButtonToggleGroup);
       fixture.detectChanges();
 
@@ -65,7 +65,7 @@ describe('MdButtonToggle', () => {
         .map(debugEl => debugEl.nativeElement);
 
       buttonToggleInstances = buttonToggleDebugElements.map(debugEl => debugEl.componentInstance);
-    }));
+    });
 
     it('should set individual button toggle names based on the group name', () => {
       expect(groupInstance.name).toBeTruthy();
@@ -326,7 +326,7 @@ describe('MdButtonToggle', () => {
 
   describe('with initial value and change event', () => {
 
-    it('should not fire an initial change event', async(() => {
+    it('should not fire an initial change event', () => {
       let fixture = TestBed.createComponent(ButtonToggleGroupWithInitialValue);
       let testComponent = fixture.debugElement.componentInstance;
       let groupDebugElement = fixture.debugElement.query(By.directive(MdButtonToggleGroup));
@@ -342,7 +342,7 @@ describe('MdButtonToggle', () => {
 
       expect(groupInstance.value).toBe('green');
       expect(testComponent.lastEvent.value).toBe('green');
-    }));
+    });
 
   });
 
diff --git a/src/lib/checkbox/checkbox.spec.ts b/src/lib/checkbox/checkbox.spec.ts
index 0c5d14fde75..ce900d1c990 100644
--- a/src/lib/checkbox/checkbox.spec.ts
+++ b/src/lib/checkbox/checkbox.spec.ts
@@ -45,7 +45,7 @@ describe('MdCheckbox', () => {
     let inputElement: HTMLInputElement;
     let labelElement: HTMLLabelElement;
 
-    beforeEach(async(() => {
+    beforeEach(() => {
       fixture = TestBed.createComponent(SingleCheckbox);
       fixture.detectChanges();
 
@@ -55,7 +55,7 @@ describe('MdCheckbox', () => {
       testComponent = fixture.debugElement.componentInstance;
       inputElement = <HTMLInputElement>checkboxNativeElement.querySelector('input');
       labelElement = <HTMLLabelElement>checkboxNativeElement.querySelector('label');
-    }));
+    });
 
     it('should add and remove the checked state', () => {
       expect(checkboxInstance.checked).toBe(false);
@@ -318,7 +318,7 @@ describe('MdCheckbox', () => {
     let inputElement: HTMLInputElement;
     let labelElement: HTMLLabelElement;
 
-    beforeEach(async(() => {
+    beforeEach(() => {
       fixture = TestBed.createComponent(CheckboxWithChangeEvent);
       fixture.detectChanges();
 
@@ -328,7 +328,7 @@ describe('MdCheckbox', () => {
       testComponent = fixture.debugElement.componentInstance;
       inputElement = <HTMLInputElement>checkboxNativeElement.querySelector('input');
       labelElement = <HTMLLabelElement>checkboxNativeElement.querySelector('label');
-    }));
+    });
 
     it('should emit the event to the change observable', () => {
       let changeSpy = jasmine.createSpy('onChangeObservable');
@@ -370,7 +370,7 @@ describe('MdCheckbox', () => {
     let checkboxNativeElement: HTMLElement;
     let inputElement: HTMLInputElement;
 
-    it('should use the provided aria-label', async(() => {
+    it('should use the provided aria-label', () => {
       fixture = TestBed.createComponent(CheckboxWithAriaLabel);
       checkboxDebugElement = fixture.debugElement.query(By.directive(MdCheckbox));
       checkboxNativeElement = checkboxDebugElement.nativeElement;
@@ -378,7 +378,7 @@ describe('MdCheckbox', () => {
 
       fixture.detectChanges();
       expect(inputElement.getAttribute('aria-label')).toBe('Super effective');
-    }));
+    });
   });
 
   describe('with provided aria-labelledby ', () => {
@@ -386,7 +386,7 @@ describe('MdCheckbox', () => {
     let checkboxNativeElement: HTMLElement;
     let inputElement: HTMLInputElement;
 
-    it('should use the provided aria-labelledby', async(() => {
+    it('should use the provided aria-labelledby', () => {
       fixture = TestBed.createComponent(CheckboxWithAriaLabelledby);
       checkboxDebugElement = fixture.debugElement.query(By.directive(MdCheckbox));
       checkboxNativeElement = checkboxDebugElement.nativeElement;
@@ -394,9 +394,9 @@ describe('MdCheckbox', () => {
 
       fixture.detectChanges();
       expect(inputElement.getAttribute('aria-labelledby')).toBe('some-id');
-    }));
+    });
 
-    it('should not assign aria-labelledby if none is provided', async(() => {
+    it('should not assign aria-labelledby if none is provided', () => {
       fixture = TestBed.createComponent(SingleCheckbox);
       checkboxDebugElement = fixture.debugElement.query(By.directive(MdCheckbox));
       checkboxNativeElement = checkboxDebugElement.nativeElement;
@@ -404,7 +404,7 @@ describe('MdCheckbox', () => {
 
       fixture.detectChanges();
       expect(inputElement.getAttribute('aria-labelledby')).toBe(null);
-    }));
+    });
   });
 
   describe('with provided tabIndex', () => {
@@ -414,7 +414,7 @@ describe('MdCheckbox', () => {
     let inputElement: HTMLInputElement;
     let labelElement: HTMLLabelElement;
 
-    beforeEach(async(() => {
+    beforeEach(() => {
       fixture = TestBed.createComponent(CheckboxWithTabIndex);
       fixture.detectChanges();
 
@@ -423,11 +423,11 @@ describe('MdCheckbox', () => {
       checkboxNativeElement = checkboxDebugElement.nativeElement;
       inputElement = <HTMLInputElement>checkboxNativeElement.querySelector('input');
       labelElement = <HTMLLabelElement>checkboxNativeElement.querySelector('label');
-    }));
+    });
 
-    it('should preserve any given tabIndex', async(() => {
+    it('should preserve any given tabIndex', () => {
       expect(inputElement.tabIndex).toBe(7);
-    }));
+    });
 
     it('should preserve given tabIndex when the checkbox is disabled then enabled', () => {
       testComponent.isDisabled = true;
@@ -444,10 +444,10 @@ describe('MdCheckbox', () => {
   });
 
   describe('with multiple checkboxes', () => {
-    beforeEach(async(() => {
+    beforeEach(() => {
       fixture = TestBed.createComponent(MultipleCheckboxes);
       fixture.detectChanges();
-    }));
+    });
 
     it('should assign a unique id to each checkbox', () => {
       let [firstId, secondId] =
@@ -461,10 +461,10 @@ describe('MdCheckbox', () => {
   });
 
   describe('with ngModel', () => {
-    beforeEach(async(() => {
+    beforeEach(() => {
       fixture = TestBed.createComponent(CheckboxWithFormDirectives);
       fixture.detectChanges();
-    }));
+    });
 
     it('should be in pristine, untouched, and valid states initially', fakeAsync(() => {
       flushMicrotasks();
@@ -482,17 +482,17 @@ describe('MdCheckbox', () => {
   });
 
   describe('with name attribute', () => {
-    beforeEach(async(() => {
+    beforeEach(() => {
       fixture = TestBed.createComponent(CheckboxWithNameAttribute);
       fixture.detectChanges();
-    }));
+    });
 
-    it('should forward name value to input element', fakeAsync(() => {
+    it('should forward name value to input element', () => {
       let checkboxElement = fixture.debugElement.query(By.directive(MdCheckbox));
       let inputElement = <HTMLInputElement> checkboxElement.nativeElement.querySelector('input');
 
       expect(inputElement.getAttribute('name')).toBe('test-name');
-    }));
+    });
   });
 });
 
diff --git a/src/lib/core/overlay/overlay-directives.spec.ts b/src/lib/core/overlay/overlay-directives.spec.ts
index 963963d7764..04b539d9550 100644
--- a/src/lib/core/overlay/overlay-directives.spec.ts
+++ b/src/lib/core/overlay/overlay-directives.spec.ts
@@ -1,4 +1,4 @@
-import {async, fakeAsync, flushMicrotasks, ComponentFixture, TestBed} from '@angular/core/testing';
+import {ComponentFixture, TestBed} from '@angular/core/testing';
 import {Component, ViewChild} from '@angular/core';
 import {ConnectedOverlayDirective, OverlayModule} from './overlay-directives';
 import {OverlayContainer} from './overlay-container';
@@ -9,7 +9,7 @@ describe('Overlay directives', () => {
   let overlayContainerElement: HTMLElement;
   let fixture: ComponentFixture<ConnectedOverlayDirectiveTest>;
 
-  beforeEach(async(() => {
+  beforeEach(() => {
     TestBed.configureTestingModule({
       imports: [OverlayModule.forRoot()],
       declarations: [ConnectedOverlayDirectiveTest],
@@ -20,23 +20,22 @@ describe('Overlay directives', () => {
         }}
       ],
     });
-  }));
+  });
 
-  beforeEach(async(() => {
+  beforeEach(() => {
     fixture = TestBed.createComponent(ConnectedOverlayDirectiveTest);
     fixture.detectChanges();
-  }));
+  });
 
   it(`should create an overlay and attach the directive's template`, () => {
     expect(overlayContainerElement.textContent).toContain('Menu content');
   });
 
-  it('should destroy the overlay when the directive is destroyed', fakeAsync(() => {
+  it('should destroy the overlay when the directive is destroyed', () => {
     fixture.destroy();
-    flushMicrotasks();
 
     expect(overlayContainerElement.textContent.trim()).toBe('');
-  }));
+  });
 
   it('should use a connected position strategy with a default set of positions', () => {
     let testComponent: ConnectedOverlayDirectiveTest =
diff --git a/src/lib/core/portal/portal.spec.ts b/src/lib/core/portal/portal.spec.ts
index 670cbb8f42a..291a9e36f6b 100644
--- a/src/lib/core/portal/portal.spec.ts
+++ b/src/lib/core/portal/portal.spec.ts
@@ -1,11 +1,4 @@
-import {
-  inject,
-  fakeAsync,
-  flushMicrotasks,
-  ComponentFixture,
-  TestBed,
-  async,
-} from '@angular/core/testing';
+import {inject, ComponentFixture, TestBed, async} from '@angular/core/testing';
 import {
   NgModule,
   Component,
@@ -34,25 +27,22 @@ describe('Portals', () => {
   describe('PortalHostDirective', () => {
     let fixture: ComponentFixture<PortalTestApp>;
 
-    beforeEach(fakeAsync(() => {
+    beforeEach(() => {
       fixture = TestBed.createComponent(PortalTestApp);
-    }));
+    });
 
-    it('should load a component into the portal', fakeAsync(() => {
+    it('should load a component into the portal', () => {
       // Set the selectedHost to be a ComponentPortal.
       let testAppComponent = fixture.debugElement.componentInstance;
       testAppComponent.selectedPortal = new ComponentPortal(PizzaMsg);
       fixture.detectChanges();
 
-      // Flush the attachment of the Portal.
-      flushMicrotasks();
-
       // Expect that the content of the attached portal is present.
       let hostContainer = fixture.nativeElement.querySelector('.portal-container');
       expect(hostContainer.textContent).toContain('Pizza');
-    }));
+    });
 
-    it('should load a component into the portal with a given injector', fakeAsync(() => {
+    it('should load a component into the portal with a given injector', () => {
       // Create a custom injector for the component.
       let chocolateInjector = new ChocolateInjector(fixture.componentInstance.injector);
 
@@ -61,17 +51,13 @@ describe('Portals', () => {
       testAppComponent.selectedPortal = new ComponentPortal(PizzaMsg, null, chocolateInjector);
       fixture.detectChanges();
 
-      // Flush the attachment of the Portal.
-      flushMicrotasks();
-      fixture.detectChanges();
-
       // Expect that the content of the attached portal is present.
       let hostContainer = fixture.nativeElement.querySelector('.portal-container');
       expect(hostContainer.textContent).toContain('Pizza');
       expect(hostContainer.textContent).toContain('Chocolate');
-    }));
+    });
 
-    it('should load a <template> portal', fakeAsync(() => {
+    it('should load a <template> portal', () => {
       let testAppComponent = fixture.debugElement.componentInstance;
 
       // Detect changes initially so that the component's ViewChildren are resolved.
@@ -81,15 +67,12 @@ describe('Portals', () => {
       testAppComponent.selectedPortal = testAppComponent.cakePortal;
       fixture.detectChanges();
 
-      // Flush the attachment of the Portal.
-      flushMicrotasks();
-
       // Expect that the content of the attached portal is present.
       let hostContainer = fixture.nativeElement.querySelector('.portal-container');
       expect(hostContainer.textContent).toContain('Cake');
-    }));
+    });
 
-    it('should load a <template> portal with the `*` sugar', fakeAsync(() => {
+    it('should load a <template> portal with the `*` sugar', () => {
       let testAppComponent = fixture.debugElement.componentInstance;
 
       // Detect changes initially so that the component's ViewChildren are resolved.
@@ -99,15 +82,12 @@ describe('Portals', () => {
       testAppComponent.selectedPortal = testAppComponent.piePortal;
       fixture.detectChanges();
 
-      // Flush the attachment of the Portal.
-      flushMicrotasks();
-
       // Expect that the content of the attached portal is present.
       let hostContainer = fixture.nativeElement.querySelector('.portal-container');
       expect(hostContainer.textContent).toContain('Pie');
-    }));
+    });
 
-    it('should load a <template> portal with a binding', fakeAsync(() => {
+    it('should load a <template> portal with a binding', () => {
       let testAppComponent = fixture.debugElement.componentInstance;
 
       // Detect changes initially so that the component's ViewChildren are resolved.
@@ -117,13 +97,6 @@ describe('Portals', () => {
       testAppComponent.selectedPortal = testAppComponent.portalWithBinding;
       fixture.detectChanges();
 
-      // Flush the attachment of the Portal.
-      flushMicrotasks();
-
-      // Now that the portal is attached, change detection has to happen again in order
-      // for the bindings to update.
-      fixture.detectChanges();
-
       // Expect that the content of the attached portal is present.
       let hostContainer = fixture.nativeElement.querySelector('.portal-container');
       expect(hostContainer.textContent).toContain('Banana');
@@ -134,9 +107,9 @@ describe('Portals', () => {
 
       // Expect the new value to be reflected in the rendered output.
       expect(hostContainer.textContent).toContain('Mango');
-    }));
+    });
 
-    it('should change the attached portal', fakeAsync(() => {
+    it('should change the attached portal', () => {
       let testAppComponent = fixture.debugElement.componentInstance;
 
       // Detect changes initially so that the component's ViewChildren are resolved.
@@ -146,10 +119,6 @@ describe('Portals', () => {
       testAppComponent.selectedPortal = testAppComponent.piePortal;
       fixture.detectChanges();
 
-      // Flush the attachment of the Portal.
-      flushMicrotasks();
-      fixture.detectChanges();
-
       // Expect that the content of the attached portal is present.
       let hostContainer = fixture.nativeElement.querySelector('.portal-container');
       expect(hostContainer.textContent).toContain('Pie');
@@ -157,13 +126,11 @@ describe('Portals', () => {
       testAppComponent.selectedPortal = new ComponentPortal(PizzaMsg);
       fixture.detectChanges();
 
-      flushMicrotasks();
-
       expect(hostContainer.textContent).toContain('Pizza');
-    }));
+    });
   });
 
-  describe('DomPortalHost', function () {
+  describe('DomPortalHost', () => {
     let componentFactoryResolver: ComponentFactoryResolver;
     let someViewContainerRef: ViewContainerRef;
     let someInjector: Injector;
@@ -183,23 +150,20 @@ describe('Portals', () => {
       someInjector = fixture.componentInstance.injector;
     });
 
-    it('should attach and detach a component portal', fakeAsync(() => {
+    it('should attach and detach a component portal', () => {
       let portal = new ComponentPortal(PizzaMsg, someViewContainerRef);
 
       let componentInstance: PizzaMsg = portal.attach(host).instance;
 
-      flushMicrotasks();
-
       expect(componentInstance).toEqual(jasmine.any(PizzaMsg));
       expect(someDomElement.textContent).toContain('Pizza');
 
       host.detach();
-      flushMicrotasks();
 
       expect(someDomElement.innerHTML).toBe('');
-    }));
+    });
 
-    it('should attach and detach a component portal with a given injector', fakeAsync(() => {
+    it('should attach and detach a component portal with a given injector', () => {
       let fixture = TestBed.createComponent(ArbitraryViewContainerRefComponent);
       someViewContainerRef = fixture.componentInstance.viewContainerRef;
       someInjector = fixture.componentInstance.injector;
@@ -208,8 +172,6 @@ describe('Portals', () => {
       let portal = new ComponentPortal(PizzaMsg, someViewContainerRef, chocolateInjector);
 
       let componentInstance: PizzaMsg = portal.attach(host).instance;
-
-      flushMicrotasks();
       fixture.detectChanges();
 
       expect(componentInstance).toEqual(jasmine.any(PizzaMsg));
@@ -217,22 +179,20 @@ describe('Portals', () => {
       expect(someDomElement.textContent).toContain('Chocolate');
 
       host.detach();
-      flushMicrotasks();
 
       expect(someDomElement.innerHTML).toBe('');
-    }));
+    });
 
-    it('should attach and detach a template portal', fakeAsync(() => {
+    it('should attach and detach a template portal', () => {
       let fixture = TestBed.createComponent(PortalTestApp);
       fixture.detectChanges();
 
       fixture.componentInstance.cakePortal.attach(host);
-      flushMicrotasks();
 
       expect(someDomElement.textContent).toContain('Cake');
-    }));
+    });
 
-    it('should attach and detach a template portal with a binding', fakeAsync(() => {
+    it('should attach and detach a template portal with a binding', () => {
       let fixture = TestBed.createComponent(PortalTestApp);
 
       let testAppComponent = fixture.debugElement.componentInstance;
@@ -244,9 +204,6 @@ describe('Portals', () => {
       testAppComponent.portalWithBinding.attach(host);
       fixture.detectChanges();
 
-      // Flush the attachment of the Portal.
-      flushMicrotasks();
-
       // Now that the portal is attached, change detection has to happen again in order
       // for the bindings to update.
       fixture.detectChanges();
@@ -263,9 +220,9 @@ describe('Portals', () => {
 
       host.detach();
       expect(someDomElement.innerHTML).toBe('');
-    }));
+    });
 
-    it('should change the attached portal', fakeAsync(() => {
+    it('should change the attached portal', () => {
       let fixture = TestBed.createComponent(ArbitraryViewContainerRefComponent);
       someViewContainerRef = fixture.componentInstance.viewContainerRef;
 
@@ -273,18 +230,14 @@ describe('Portals', () => {
       appFixture.detectChanges();
 
       appFixture.componentInstance.piePortal.attach(host);
-      flushMicrotasks();
 
       expect(someDomElement.textContent).toContain('Pie');
 
       host.detach();
-      flushMicrotasks();
-
       host.attach(new ComponentPortal(PizzaMsg, someViewContainerRef));
-      flushMicrotasks();
 
       expect(someDomElement.textContent).toContain('Pizza');
-    }));
+    });
   });
 });
 
diff --git a/src/lib/input/input.spec.ts b/src/lib/input/input.spec.ts
index 97ef4808c3c..2c3146293d0 100644
--- a/src/lib/input/input.spec.ts
+++ b/src/lib/input/input.spec.ts
@@ -70,7 +70,7 @@ describe('MdInput', function () {
     expect(fixture.debugElement.query(By.css('input'))).toBeTruthy();
   });
 
-  it('should not be treated as empty if type is date', async(() => {
+  it('should not be treated as empty if type is date', () => {
     if (isInternetExplorer11()) {
       return;
     }
@@ -81,9 +81,9 @@ describe('MdInput', function () {
     let el = fixture.debugElement.query(By.css('label')).nativeElement;
     expect(el).not.toBeNull();
     expect(el.className.includes('md-empty')).toBe(false);
-  }));
+  });
 
-  it('should treat text input type as empty at init', async(() => {
+  it('should treat text input type as empty at init', () => {
     if (isInternetExplorer11()) {
       return;
     }
@@ -94,9 +94,9 @@ describe('MdInput', function () {
     let el = fixture.debugElement.query(By.css('label')).nativeElement;
     expect(el).not.toBeNull();
     expect(el.className.includes('md-empty')).toBe(true);
-  }));
+  });
 
-  it('should treat password input type as empty at init', async(() => {
+  it('should treat password input type as empty at init', () => {
     if (isInternetExplorer11()) {
       return;
     }
@@ -107,9 +107,9 @@ describe('MdInput', function () {
     let el = fixture.debugElement.query(By.css('label')).nativeElement;
     expect(el).not.toBeNull();
     expect(el.className.includes('md-empty')).toBe(true);
-  }));
+  });
 
-  it('should treat number input type as empty at init', async(() => {
+  it('should treat number input type as empty at init', () => {
     if (isInternetExplorer11()) {
       return;
     }
@@ -120,7 +120,7 @@ describe('MdInput', function () {
     let el = fixture.debugElement.query(By.css('label')).nativeElement;
     expect(el).not.toBeNull();
     expect(el.className.includes('md-empty')).toBe(true);
-  }));
+  });
 
   // TODO(kara): update when core/testing adds fix
   it('support ngModel', async(() => {
diff --git a/src/lib/radio/radio.spec.ts b/src/lib/radio/radio.spec.ts
index 40cf1514445..af7303fa193 100644
--- a/src/lib/radio/radio.spec.ts
+++ b/src/lib/radio/radio.spec.ts
@@ -1,4 +1,4 @@
-import {async, fakeAsync, ComponentFixture, TestBed} from '@angular/core/testing';
+import {async, ComponentFixture, TestBed} from '@angular/core/testing';
 import {NgControl, FormsModule} from '@angular/forms';
 import {Component, DebugElement} from '@angular/core';
 import {By} from '@angular/platform-browser';
@@ -130,7 +130,7 @@ describe('MdRadio', () => {
       expect(groupInstance.selected).toBe(radioInstances[0]);
     });
 
-    it('should emit a change event from radio buttons', fakeAsync(() => {
+    it('should emit a change event from radio buttons', () => {
       expect(radioInstances[0].checked).toBe(false);
 
       let spies = radioInstances
@@ -150,9 +150,9 @@ describe('MdRadio', () => {
       // be triggered when the radio got unselected.
       expect(spies[0]).toHaveBeenCalledTimes(1);
       expect(spies[1]).toHaveBeenCalledTimes(1);
-    }));
+    });
 
-    it('should emit a change event from the radio group', fakeAsync(() => {
+    it('should emit a change event from the radio group', () => {
       expect(groupInstance.value).toBeFalsy();
 
       let changeSpy = jasmine.createSpy('radio-group change listener');
@@ -167,7 +167,7 @@ describe('MdRadio', () => {
       fixture.detectChanges();
 
       expect(changeSpy).toHaveBeenCalledTimes(2);
-    }));
+    });
 
     // TODO(jelbourn): test this in an e2e test with *real* focus, rather than faking
     // a focus / blur event.
@@ -274,7 +274,7 @@ describe('MdRadio', () => {
       expect(groupInstance.selected.value).toBe(groupInstance.value);
     });
 
-    it('should have the correct control state initially and after interaction', fakeAsync(() => {
+    it('should have the correct control state initially and after interaction', () => {
       // The control should start off valid, pristine, and untouched.
       expect(groupNgControl.valid).toBe(true);
       expect(groupNgControl.pristine).toBe(true);
@@ -297,16 +297,16 @@ describe('MdRadio', () => {
       expect(groupNgControl.valid).toBe(true);
       expect(groupNgControl.pristine).toBe(false);
       expect(groupNgControl.touched).toBe(true);
-    }));
+    });
 
-    it('should update the ngModel value when selecting a radio button', fakeAsync(() => {
+    it('should update the ngModel value when selecting a radio button', () => {
       radioInstances[1].checked = true;
       fixture.detectChanges();
 
       expect(testComponent.modelValue).toBe('chocolate');
-    }));
+    });
 
-    it('should update the model before firing change event', fakeAsync(() => {
+    it('should update the model before firing change event', () => {
       expect(testComponent.modelValue).toBeUndefined();
       expect(testComponent.lastEvent).toBeUndefined();
 
@@ -321,7 +321,7 @@ describe('MdRadio', () => {
 
       expect(testComponent.modelValue).toBe('vanilla');
       expect(testComponent.lastEvent.value).toBe('vanilla');
-    }));
+    });
   });
 
   describe('as standalone', () => {
diff --git a/src/lib/slide-toggle/slide-toggle.spec.ts b/src/lib/slide-toggle/slide-toggle.spec.ts
index ce45cd86102..82273d204f6 100644
--- a/src/lib/slide-toggle/slide-toggle.spec.ts
+++ b/src/lib/slide-toggle/slide-toggle.spec.ts
@@ -116,11 +116,10 @@ describe('MdSlideToggle', () => {
 
       expect(slideToggleElement.classList).toContain('md-checked');
       expect(slideToggle.checked).toBe(true);
-
       expect(testComponent.onSlideClick).toHaveBeenCalledTimes(1);
     });
 
-    it('should trigger the change event properly', async(() => {
+    it('should trigger the change event properly', () => {
       expect(inputElement.checked).toBe(false);
       expect(slideToggleElement.classList).not.toContain('md-checked');
 
@@ -129,16 +128,8 @@ describe('MdSlideToggle', () => {
 
       expect(inputElement.checked).toBe(true);
       expect(slideToggleElement.classList).toContain('md-checked');
-
-      // Wait for the fixture to become stable, because the EventEmitter for the change event,
-      // will only fire after the zone async change detection has finished.
-      fixture.whenStable().then(() => {
-        // The change event shouldn't fire, because the value change was not caused
-        // by any interaction.
-        expect(testComponent.onSlideChange).toHaveBeenCalledTimes(1);
-      });
-
-    }));
+      expect(testComponent.onSlideChange).toHaveBeenCalledTimes(1);
+    });
 
     it('should not trigger the change event by changing the native value', async(() => {
       expect(inputElement.checked).toBe(false);
@@ -150,14 +141,11 @@ describe('MdSlideToggle', () => {
       expect(inputElement.checked).toBe(true);
       expect(slideToggleElement.classList).toContain('md-checked');
 
-      // Wait for the fixture to become stable, because the EventEmitter for the change event,
-      // will only fire after the zone async change detection has finished.
+      // The change event shouldn't fire because the value change was not caused
+      // by any interaction. Use whenStable to ensure an event isn't fired asynchronously.
       fixture.whenStable().then(() => {
-        // The change event shouldn't fire, because the value change was not caused
-        // by any interaction.
         expect(testComponent.onSlideChange).not.toHaveBeenCalled();
       });
-
     }));
 
     it('should not trigger the change event on initialization', async(() => {
@@ -170,13 +158,11 @@ describe('MdSlideToggle', () => {
       expect(inputElement.checked).toBe(true);
       expect(slideToggleElement.classList).toContain('md-checked');
 
-      // Wait for the fixture to become stable, because the EventEmitter for the change event,
-      // will only fire after the zone async change detection has finished.
+      // The change event shouldn't fire, because the native input element is not focused.
+      // Use whenStable to ensure an event isn't fired asynchronously.
       fixture.whenStable().then(() => {
-        // The change event shouldn't fire, because the native input element is not focused.
         expect(testComponent.onSlideChange).not.toHaveBeenCalled();
       });
-
     }));
 
     it('should add a suffix to the inputs id', () => {
diff --git a/src/lib/slider/slider.spec.ts b/src/lib/slider/slider.spec.ts
index f3a1907f82f..fd05c4a6fb4 100644
--- a/src/lib/slider/slider.spec.ts
+++ b/src/lib/slider/slider.spec.ts
@@ -322,7 +322,7 @@ describe('MdSlider', () => {
     let sliderInstance: MdSlider;
     let sliderTrackElement: HTMLElement;
 
-    beforeEach(async(() => {
+    beforeEach(() => {
       fixture = TestBed.createComponent(SliderWithValue);
       fixture.detectChanges();
 
@@ -330,7 +330,7 @@ describe('MdSlider', () => {
       sliderNativeElement = sliderDebugElement.nativeElement;
       sliderInstance = sliderDebugElement.injector.get(MdSlider);
       sliderTrackElement = <HTMLElement>sliderNativeElement.querySelector('.md-slider-track');
-    }));
+    });
 
     it('should set the default value from the attribute', () => {
       expect(sliderInstance.value).toBe(26);
@@ -425,7 +425,7 @@ describe('MdSlider', () => {
     let tickContainer: HTMLElement;
     let lastTickContainer: HTMLElement;
 
-    beforeEach(async(() => {
+    beforeEach(() => {
       fixture = TestBed.createComponent(SliderWithAutoTickInterval);
       fixture.detectChanges();
 
@@ -434,7 +434,7 @@ describe('MdSlider', () => {
       tickContainer = <HTMLElement>sliderNativeElement.querySelector('.md-slider-tick-container');
       lastTickContainer =
           <HTMLElement>sliderNativeElement.querySelector('.md-slider-last-tick-container');
-    }));
+    });
 
     it('should set the correct tick separation', () => {
       // The first tick mark is going to be at value 30 as it is the first step after 30px. The
diff --git a/src/lib/tabs/tab-group.spec.ts b/src/lib/tabs/tab-group.spec.ts
index e851e4cf09e..5cdca64ae62 100644
--- a/src/lib/tabs/tab-group.spec.ts
+++ b/src/lib/tabs/tab-group.spec.ts
@@ -23,15 +23,15 @@ describe('MdTabGroup', () => {
   describe('basic behavior', () => {
     let fixture: ComponentFixture<SimpleTabsTestApp>;
 
-    beforeEach(async(() => {
+    beforeEach(() => {
       fixture = TestBed.createComponent(SimpleTabsTestApp);
-    }));
+    });
 
-    it('should default to the first tab', async(() => {
+    it('should default to the first tab', () => {
       checkSelectedIndex(1, fixture);
-    }));
+    });
 
-    it('should change selected index on click', async(() => {
+    it('should change selected index on click', () => {
       let component = fixture.debugElement.componentInstance;
       component.selectedIndex = 0;
       checkSelectedIndex(0, fixture);
@@ -45,7 +45,7 @@ describe('MdTabGroup', () => {
       tabLabel = fixture.debugElement.queryAll(By.css('.md-tab-label'))[2];
       tabLabel.nativeElement.click();
       checkSelectedIndex(2, fixture);
-    }));
+    });
 
     it('should support two-way binding for selectedIndex', async(() => {
       let component = fixture.componentInstance;
diff --git a/test/karma-test-shim.js b/test/karma-test-shim.js
index 8e3dc73bf1f..93eb900938c 100644
--- a/test/karma-test-shim.js
+++ b/test/karma-test-shim.js
@@ -37,6 +37,8 @@ System.import(distPath + '@angular2-material/system-config-spec.js').then(functi
     var testing = providers[0];
     var testingBrowser = providers[1];
 
+    jasmine.DEFAULT_TIMEOUT_INTERVAL = 10000;
+
     testing.TestBed.initTestEnvironment(
         testingBrowser.BrowserDynamicTestingModule,
         testingBrowser.platformBrowserDynamicTesting());
diff --git a/tools/gulp/tasks/components.ts b/tools/gulp/tasks/components.ts
index 1a9ea12efff..03a359f2ff9 100644
--- a/tools/gulp/tasks/components.ts
+++ b/tools/gulp/tasks/components.ts
@@ -3,7 +3,7 @@ import {readdirSync, statSync, writeFileSync} from 'fs';
 import * as path from 'path';
 
 import {SOURCE_ROOT, DIST_COMPONENTS_ROOT, PROJECT_ROOT} from '../constants';
-import {sassBuildTask, tsBuildTask, execNodeTask, copyTask} from '../task_helpers';
+import {sassBuildTask, tsBuildTask, execNodeTask, copyTask, sequenceTask} from '../task_helpers';
 
 // No typings for these.
 const inlineResources = require('../../../scripts/release/inline-resources');
@@ -25,6 +25,12 @@ task(':watch:components', () => {
   watch(path.join(componentsDir, '**/*.html'), [':build:components:assets']);
 });
 
+task(':watch:components:spec', () => {
+  watch(path.join(componentsDir, '**/*.ts'), [':build:components:spec']);
+  watch(path.join(componentsDir, '**/*.scss'), [':build:components:scss']);
+  watch(path.join(componentsDir, '**/*.html'), [':build:components:assets']);
+});
+
 
 task(':build:components:ts', tsBuildTask(componentsDir));
 task(':build:components:spec', tsBuildTask(path.join(componentsDir, 'tsconfig-spec.json')));
@@ -88,12 +94,17 @@ task(':build:components:rollup', [':build:components:ts'], () => {
   }, Promise.resolve());
 });
 
-task('build:components', [
+task('build:components', sequenceTask(
   ':build:components:rollup',
   ':build:components:assets',
-  ':build:components:scss'
-], () => inlineResources([DIST_COMPONENTS_ROOT]));
+  ':build:components:scss',
+  ':inline-resources',
+));
 
 task(':build:components:ngc', ['build:components'], execNodeTask(
   '@angular/compiler-cli', 'ngc', ['-p', path.relative(PROJECT_ROOT, path.join(componentsDir, 'tsconfig.json'))]
 ));
+
+task(':inline-resources', () => {
+  inlineResources([DIST_COMPONENTS_ROOT]);
+});
diff --git a/tools/gulp/tasks/e2e.ts b/tools/gulp/tasks/e2e.ts
index 3bed83bc197..3383bdc230f 100644
--- a/tools/gulp/tasks/e2e.ts
+++ b/tools/gulp/tasks/e2e.ts
@@ -3,7 +3,7 @@ import * as path from 'path';
 import gulpMerge = require('merge2');
 import gulpRunSequence = require('run-sequence');
 
-import {SOURCE_ROOT, DIST_ROOT, PROJECT_ROOT, NPM_VENDOR_FILES} from '../constants';
+import {SOURCE_ROOT, DIST_ROOT, PROJECT_ROOT} from '../constants';
 import {
   tsBuildTask, sassBuildTask, copyTask, buildAppTask, execNodeTask,
   vendorTask, sequenceTask, serverTask
@@ -41,13 +41,16 @@ let stopE2eServer: () => void = null;
 task(':serve:e2eapp', serverTask(false, (stream) => { stopE2eServer = () => stream.emit('kill') }));
 task(':serve:e2eapp:stop', () => stopE2eServer());
 task('serve:e2eapp', ['build:e2eapp'], sequenceTask([
+  ':inline-resources',
   ':serve:e2eapp',
   ':watch:components',
-  ':watch:e2eapp'
 ]));
 
 
 task('e2e', sequenceTask(
-  ':test:protractor:setup', 'serve:e2eapp', ':test:protractor', ':serve:e2eapp:stop',
-  ':e2e:done'
+  ':test:protractor:setup',
+  'serve:e2eapp',
+  ':test:protractor',
+  ':serve:e2eapp:stop',
+  ':e2e:done',
 ));
diff --git a/tools/gulp/tasks/unit-test.ts b/tools/gulp/tasks/unit-test.ts
index 7fe371aca78..a1bec5947bb 100644
--- a/tools/gulp/tasks/unit-test.ts
+++ b/tools/gulp/tasks/unit-test.ts
@@ -1,11 +1,12 @@
 import gulp = require('gulp');
-const karma = require('karma');
 import path = require('path');
 import gulpMerge = require('merge2');
 
-import {PROJECT_ROOT} from '../constants';
+import {PROJECT_ROOT, DIST_COMPONENTS_ROOT} from '../constants';
 import {sequenceTask} from '../task_helpers';
 
+const karma = require('karma');
+const runSequence = require('run-sequence');
 
 gulp.task(':build:test:vendor', function() {
   const npmVendorFiles = [
@@ -23,8 +24,11 @@ gulp.task(':build:test:vendor', function() {
 gulp.task(':test:deps', sequenceTask(
   'clean',
   [
-    ':build:test:vendor', ':build:components:assets', ':build:components:scss',
-    ':build:components:spec'
+    ':build:test:vendor',
+    ':build:components:assets',
+    ':build:components:scss',
+    ':build:components:spec',
+    ':watch:components:spec',
   ]
 ));
 
@@ -33,9 +37,14 @@ gulp.task('test', [':test:deps'], (done: () => void) => {
     configFile: path.join(PROJECT_ROOT, 'test/karma.conf.js')
   }, done).start();
 });
+
 gulp.task('test:single-run', [':test:deps'], (done: () => void) => {
-  new karma.Server({
-    configFile: path.join(PROJECT_ROOT, 'test/karma.conf.js'),
-    singleRun: true
-  }, done).start();
+  runSequence(
+    ':inline-resources',
+    () => {
+      new karma.Server({
+        configFile: path.join(PROJECT_ROOT, 'test/karma.conf.js'),
+        singleRun: true
+    }, done).start();
+  });
 });