diff --git a/src/dropdown/dropdown.js b/src/dropdown/dropdown.js
index d67a960677..ed869da24c 100644
--- a/src/dropdown/dropdown.js
+++ b/src/dropdown/dropdown.js
@@ -29,7 +29,8 @@ angular.module('ui.bootstrap.dropdown', [])
   };
 
   var closeDropdown = function( evt ) {
-    if (evt && evt.isDefaultPrevented()) {
+    var toggleElement = openScope.getToggleElement();
+    if ( evt && toggleElement && toggleElement[0].contains(evt.target) ) {
         return;
     }
 
@@ -76,6 +77,10 @@ angular.module('ui.bootstrap.dropdown', [])
     return scope.isOpen;
   };
 
+  scope.getToggleElement = function() {
+    return self.toggleElement;
+  };
+
   scope.focusToggleElement = function() {
     if ( self.toggleElement ) {
       self.toggleElement[0].focus();
diff --git a/src/dropdown/test/dropdown.spec.js b/src/dropdown/test/dropdown.spec.js
index c65f8305e6..c34d1e5bb4 100644
--- a/src/dropdown/test/dropdown.spec.js
+++ b/src/dropdown/test/dropdown.spec.js
@@ -11,7 +11,7 @@ describe('dropdownToggle', function() {
 
   var clickDropdownToggle = function(elm) {
     elm = elm || element;
-    elm.find('a').click();
+    elm.find('a[dropdown-toggle]').click();
   };
 
   var triggerKeyDown = function (element, keyCode) {
@@ -26,7 +26,7 @@ describe('dropdownToggle', function() {
 
   describe('basic', function() {
     function dropdown() {
-      return $compile('<li class="dropdown"><a href dropdown-toggle></a><ul><li>Hello</li></ul></li>')($rootScope);
+      return $compile('<li class="dropdown"><a href dropdown-toggle></a><ul><li><a href>Hello</a></li></ul></li>')($rootScope);
     }
 
     beforeEach(function() {
@@ -41,6 +41,18 @@ describe('dropdownToggle', function() {
       expect(element.hasClass('open')).toBe(false);
     });
 
+    it('should toggle when an option is clicked', function() {
+      $document.find('body').append(element);
+      expect(element.hasClass('open')).toBe(false);
+      clickDropdownToggle();
+      expect(element.hasClass('open')).toBe(true);
+
+      var optionEl = element.find('ul > li').eq(0).find('a').eq(0);
+      optionEl.click();
+      expect(element.hasClass('open')).toBe(false);
+      element.remove();
+    });
+
     it('should close on document click', function() {
       clickDropdownToggle();
       expect(element.hasClass('open')).toBe(true);