diff --git a/src/lib/flex/layout-gap/layout-gap.spec.ts b/src/lib/flex/layout-gap/layout-gap.spec.ts
index 8d498ed2f..ea3273ef7 100644
--- a/src/lib/flex/layout-gap/layout-gap.spec.ts
+++ b/src/lib/flex/layout-gap/layout-gap.spec.ts
@@ -374,6 +374,7 @@ describe('layout-gap directive', () => {
 
       let nodes = queryFor(fixture, '[fxFlex]');
       expect(nodes.length).toEqual(3);
+      mediaController.activate('sm');
       expectEl(nodes[0]).not.toHaveStyle({'margin-right': '*'}, styler);
       expectEl(nodes[1]).not.toHaveStyle({'margin-right': '*'}, styler);
       expectEl(nodes[2]).not.toHaveStyle({'margin-right': '*'}, styler);
@@ -384,6 +385,11 @@ describe('layout-gap directive', () => {
       expectEl(nodes[1]).toHaveStyle({'margin-right': '24px'}, styler);
       expectEl(nodes[2]).not.toHaveStyle({'margin-right': '24px'}, styler);
       expectEl(nodes[2]).not.toHaveStyle({'margin-right': '0px'}, styler);
+
+      mediaController.activate('sm');
+      expectEl(nodes[0]).not.toHaveStyle({'margin-right': '*'}, styler);
+      expectEl(nodes[1]).not.toHaveStyle({'margin-right': '*'}, styler);
+      expectEl(nodes[2]).not.toHaveStyle({'margin-right': '*'}, styler);
     });
 
     it('should set gap with responsive layout change', () => {
@@ -503,6 +509,36 @@ describe('layout-gap directive', () => {
       expectNativeEl(fixture).toHaveStyle(expectedMargin, styler);
     });
 
+    it('should set gap without fallback', () => {
+      let template = `
+        <div fxLayoutAlign='center center' fxLayoutGap.md="24px grid">
+          <div fxFlex></div>
+          <div fxFlex></div>
+          <div fxFlex></div>
+        </div>
+      `;
+      createTestComponent(template);
+      fixture.detectChanges();
+
+      let nodes = queryFor(fixture, '[fxFlex]');
+      expect(nodes.length).toEqual(3);
+      mediaController.activate('sm');
+      expectEl(nodes[0]).not.toHaveStyle({'padding': '*'}, styler);
+      expectEl(nodes[1]).not.toHaveStyle({'padding': '*'}, styler);
+      expectEl(nodes[2]).not.toHaveStyle({'padding': '*'}, styler);
+
+      mediaController.activate('md');
+      fixture.detectChanges();
+      expectEl(nodes[0]).toHaveStyle({'padding': '0px 24px 24px 0px'}, styler);
+      expectEl(nodes[1]).toHaveStyle({'padding': '0px 24px 24px 0px'}, styler);
+      expectEl(nodes[2]).toHaveStyle({'padding': '0px 24px 24px 0px'}, styler);
+
+      mediaController.activate('sm');
+      expectEl(nodes[0]).not.toHaveStyle({'padding': '*'}, styler);
+      expectEl(nodes[1]).not.toHaveStyle({'padding': '*'}, styler);
+      expectEl(nodes[2]).not.toHaveStyle({'padding': '*'}, styler);
+    });
+
     it('should add gap styles correctly for rtl', () => {
       fakeDocument.body.dir = 'rtl';
       let template = `
diff --git a/src/lib/flex/layout-gap/layout-gap.ts b/src/lib/flex/layout-gap/layout-gap.ts
index d729df875..92e32c2b4 100644
--- a/src/lib/flex/layout-gap/layout-gap.ts
+++ b/src/lib/flex/layout-gap/layout-gap.ts
@@ -197,6 +197,21 @@ export class LayoutGapDirective extends BaseDirective2 implements AfterContentIn
     }
   }
 
+  /** We need to override clearStyles because in most cases mru isn't populated */
+  protected clearStyles() {
+    const gridMode = Object.keys(this.mru).length > 0;
+    const childrenStyle = gridMode ? 'padding' :
+      getMarginType(this.directionality.value, this.layout);
+
+    // If there are styles on the parent remove them
+    if (gridMode) {
+      super.clearStyles();
+    }
+
+    // Then remove the children styles too
+    this.styleUtils.applyStyleToElements({[childrenStyle]: ''}, this.childrenNodes);
+  }
+
   /** Determine if an element will show or hide based on current activation */
   protected willDisplay(source: HTMLElement): boolean {
     const value = this.marshal.getValue(source, 'show-hide');
@@ -262,28 +277,25 @@ function buildGridMargin(value: string, directionality: string): StyleDefinition
   return {'margin': `${marginTop} ${marginRight} ${marginBottom} ${marginLeft}`};
 }
 
-function buildGapCSS(gapValue: string,
-                     parent: {directionality: string, layout: string}): StyleDefinition {
-  let key, margins: {[key: string]: string | null} = {...CLEAR_MARGIN_CSS};
-
-  switch (parent.layout) {
+function getMarginType(directionality: string, layout: string) {
+  switch (layout) {
     case 'column':
-      key = 'margin-bottom';
-      break;
+      return 'margin-bottom';
     case 'column-reverse':
-      key = 'margin-top';
-      break;
+      return 'margin-top';
     case 'row':
-      key = parent.directionality === 'rtl' ? 'margin-left' : 'margin-right';
-      break;
+      return directionality === 'rtl' ? 'margin-left' : 'margin-right';
     case 'row-reverse':
-      key = parent.directionality === 'rtl' ? 'margin-right' : 'margin-left';
-      break;
+      return directionality === 'rtl' ? 'margin-right' : 'margin-left';
     default :
-      key = parent.directionality === 'rtl' ? 'margin-left' : 'margin-right';
-      break;
+      return directionality === 'rtl' ? 'margin-left' : 'margin-right';
   }
-  margins[key] = gapValue;
+}
 
+function buildGapCSS(gapValue: string,
+                     parent: {directionality: string, layout: string}): StyleDefinition {
+  const key = getMarginType(parent.directionality, parent.layout);
+  const margins: {[key: string]: string | null} = {...CLEAR_MARGIN_CSS};
+  margins[key] = gapValue;
   return margins;
 }