diff --git a/src/lib/grid-list/grid-list.spec.ts b/src/lib/grid-list/grid-list.spec.ts
index 6f556b40bbcc..048d430d8545 100644
--- a/src/lib/grid-list/grid-list.spec.ts
+++ b/src/lib/grid-list/grid-list.spec.ts
@@ -64,13 +64,13 @@ describe('MdGridList', () => {
   it('should use a ratio row height if passed in', () => {
     let fixture = TestBed.createComponent(GirdListWithRowHeightRatio);
 
-    fixture.componentInstance.heightRatio = '4:1';
+    fixture.componentInstance.rowHeight = '4:1';
     fixture.detectChanges();
 
     let tile = fixture.debugElement.query(By.directive(MdGridTile));
     expect(getStyle(tile, 'padding-top')).toBe('100px');
 
-    fixture.componentInstance.heightRatio = '2:1';
+    fixture.componentInstance.rowHeight = '2:1';
     fixture.detectChanges();
 
     expect(getStyle(tile, 'padding-top')).toBe('200px');
@@ -257,7 +257,7 @@ describe('MdGridList', () => {
   it('should not use calc() that evaluates to 0', () => {
     const fixture = TestBed.createComponent(GirdListWithRowHeightRatio);
 
-    fixture.componentInstance.heightRatio = '4:1';
+    fixture.componentInstance.rowHeight = '4:1';
     fixture.detectChanges();
 
     const firstTile = fixture.debugElement.query(By.directive(MdGridTile)).nativeElement;
@@ -265,6 +265,28 @@ describe('MdGridList', () => {
     expect(firstTile.style.marginTop).toBe('0px');
     expect(firstTile.style.left).toBe('0px');
   });
+
+  it('should reset the old styles when switching to a new tile styler', () => {
+    const fixture = TestBed.createComponent(GirdListWithRowHeightRatio);
+
+    fixture.componentInstance.rowHeight = '4:1';
+    fixture.detectChanges();
+
+    const list = fixture.debugElement.query(By.directive(MdGridList));
+    const tile = fixture.debugElement.query(By.directive(MdGridTile));
+
+    expect(getStyle(tile, 'padding-top')).toBe('100px');
+    expect(getStyle(list, 'padding-bottom')).toBe('100px');
+
+    fixture.componentInstance.rowHeight = '400px';
+    fixture.detectChanges();
+
+    expect(getStyle(tile, 'padding-top')).toBe('0px', 'Expected tile padding to be reset.');
+    expect(getStyle(list, 'padding-bottom')).toBe('0px', 'Expected list padding to be reset.');
+    expect(getStyle(tile, 'top')).toBe('0px');
+    expect(getStyle(tile, 'height')).toBe('400px');
+  });
+
 });
 
 
@@ -306,12 +328,12 @@ class GridListWithUnspecifiedRowHeight { }
 
 @Component({template: `
     <div style="width:400px">
-      <md-grid-list cols="1" [rowHeight]="heightRatio">
+      <md-grid-list cols="1" [rowHeight]="rowHeight">
         <md-grid-tile></md-grid-tile>
       </md-grid-list>
     </div>`})
 class GirdListWithRowHeightRatio {
-  heightRatio: string;
+  rowHeight: string;
 }
 
 @Component({template: `
diff --git a/src/lib/grid-list/grid-list.ts b/src/lib/grid-list/grid-list.ts
index 20cc6befd653..5a5581995835 100644
--- a/src/lib/grid-list/grid-list.ts
+++ b/src/lib/grid-list/grid-list.ts
@@ -85,8 +85,12 @@ export class MdGridList implements OnInit, AfterContentChecked {
   /** Set internal representation of row height from the user-provided value. */
   @Input()
   set rowHeight(value: string | number) {
-    this._rowHeight = coerceToString(value);
-    this._setTileStyler();
+    const newValue = coerceToString(value);
+
+    if (newValue !== this._rowHeight) {
+      this._rowHeight = newValue;
+      this._setTileStyler(this._rowHeight);
+    }
   }
 
   ngOnInit() {
@@ -106,36 +110,40 @@ export class MdGridList implements OnInit, AfterContentChecked {
   private _checkCols() {
     if (!this.cols) {
       throw Error(`md-grid-list: must pass in number of columns. ` +
-                      `Example: <md-grid-list cols="3">`);
+                  `Example: <md-grid-list cols="3">`);
     }
   }
 
   /** Default to equal width:height if rowHeight property is missing */
   private _checkRowHeight(): void {
     if (!this._rowHeight) {
-      this._tileStyler = new RatioTileStyler('1:1');
+      this._setTileStyler('1:1');
     }
   }
 
   /** Creates correct Tile Styler subtype based on rowHeight passed in by user */
-  private _setTileStyler(): void {
-    if (this._rowHeight === MD_FIT_MODE) {
+  private _setTileStyler(rowHeight: string): void {
+    if (this._tileStyler) {
+      this._tileStyler.reset(this);
+    }
+
+    if (rowHeight === MD_FIT_MODE) {
       this._tileStyler = new FitTileStyler();
-    } else if (this._rowHeight && this._rowHeight.indexOf(':') > -1) {
-      this._tileStyler = new RatioTileStyler(this._rowHeight);
+    } else if (rowHeight && rowHeight.indexOf(':') > -1) {
+      this._tileStyler = new RatioTileStyler(rowHeight);
     } else {
-      this._tileStyler = new FixedTileStyler(this._rowHeight);
+      this._tileStyler = new FixedTileStyler(rowHeight);
     }
   }
 
   /** Computes and applies the size and position for all children grid tiles. */
   private _layoutTiles(): void {
-    let tracker = new TileCoordinator(this.cols, this._tiles);
-    let direction = this._dir ? this._dir.value : 'ltr';
+    const tracker = new TileCoordinator(this.cols, this._tiles);
+    const direction = this._dir ? this._dir.value : 'ltr';
     this._tileStyler.init(this.gutterSize, tracker, this.cols, direction);
 
     this._tiles.forEach((tile, index) => {
-      let pos = tracker.positions[index];
+      const pos = tracker.positions[index];
       this._tileStyler.setStyle(tile, pos.row, pos.col);
     });
 
@@ -143,7 +151,7 @@ export class MdGridList implements OnInit, AfterContentChecked {
   }
 
   /** Sets style on the main grid-list element, given the style name and value. */
-  _setListStyle(style: [string, string] | null): void {
+  _setListStyle(style: [string, string | null] | null): void {
     if (style) {
       this._renderer.setStyle(this._element.nativeElement, style[0], style[1]);
     }
diff --git a/src/lib/grid-list/grid-tile.ts b/src/lib/grid-list/grid-tile.ts
index 24a9dc21c78d..d2f57a9ef46a 100644
--- a/src/lib/grid-list/grid-tile.ts
+++ b/src/lib/grid-list/grid-tile.ts
@@ -52,7 +52,7 @@ export class MdGridTile {
    * Sets the style of the grid-tile element.  Needs to be set manually to avoid
    * "Changed after checked" errors that would occur with HostBinding.
    */
-  _setStyle(property: string, value: string): void {
+  _setStyle(property: string, value: any): void {
     this._renderer.setStyle(this._element.nativeElement, property, value);
   }
 }
diff --git a/src/lib/grid-list/tile-styler.ts b/src/lib/grid-list/tile-styler.ts
index 6c781e3c7e67..36a897e1d583 100644
--- a/src/lib/grid-list/tile-styler.ts
+++ b/src/lib/grid-list/tile-styler.ts
@@ -6,6 +6,7 @@
  * found in the LICENSE file at https://angular.io/license
  */
 
+import {MdGridList} from './grid-list';
 import {MdGridTile} from './grid-tile';
 import {TileCoordinator} from './tile-coordinator';
 
@@ -139,6 +140,13 @@ export abstract class TileStyler {
    * @docs-private
    */
   getComputedHeight(): [string, string] | null { return null; }
+
+  /**
+   * Called when the tile styler is swapped out with a different one. To be used for cleanup.
+   * @param list Grid list that the styler was attached to.
+   * @docs-private
+   */
+  abstract reset(list: MdGridList);
 }
 
 
@@ -166,6 +174,15 @@ export class FixedTileStyler extends TileStyler {
       'height', calc(`${this.getTileSpan(this.fixedRowHeight)} + ${this.getGutterSpan()}`)
     ];
   }
+
+  reset(list: MdGridList) {
+    list._setListStyle(['height', null]);
+
+    list._tiles.forEach(tile => {
+      tile._setStyle('top', null);
+      tile._setStyle('height', null);
+    });
+  }
 }
 
 
@@ -203,8 +220,17 @@ export class RatioTileStyler extends TileStyler {
     ];
   }
 
+  reset(list: MdGridList) {
+    list._setListStyle(['padding-bottom', null]);
+
+    list._tiles.forEach(tile => {
+      tile._setStyle('margin-top', null);
+      tile._setStyle('padding-top', null);
+    });
+  }
+
   private _parseRatio(value: string): void {
-    let ratioParts = value.split(':');
+    const ratioParts = value.split(':');
 
     if (ratioParts.length !== 2) {
       throw Error(`md-grid-list: invalid ratio given for row-height: "${value}"`);
@@ -237,6 +263,12 @@ export class FitTileStyler extends TileStyler {
     tile._setStyle('height', calc(this.getTileSize(baseTileHeight, tile.rowspan)));
   }
 
+  reset(list: MdGridList) {
+    list._tiles.forEach(tile => {
+      tile._setStyle('top', null);
+      tile._setStyle('height', null);
+    });
+  }
 }