diff --git a/src/components/select/demoBasicUsage/index.html b/src/components/select/demoBasicUsage/index.html
index 2f6c3bda447..3beee57c179 100755
--- a/src/components/select/demoBasicUsage/index.html
+++ b/src/components/select/demoBasicUsage/index.html
@@ -29,7 +29,8 @@
         <md-input-container>
           <label>State</label>
           <md-select ng-model="ctrl.userState">
-            <md-option ng-repeat="state in ctrl.states" value="{{state.abbrev}}" ng-disabled="$index === 1">
+            <md-option><em>None</em></md-option>
+            <md-option ng-repeat="state in ctrl.states" ng-value="state.abbrev" ng-disabled="$index === 1">
               {{state.abbrev}}
             </md-option>
           </md-select>
diff --git a/src/components/select/select.js b/src/components/select/select.js
index d7e035708b1..51d200757e7 100755
--- a/src/components/select/select.js
+++ b/src/components/select/select.js
@@ -40,6 +40,32 @@ angular.module('material.components.select', [
  * By default, the select will display with an underline to match other form elements. This can be
  * disabled by applying the `md-no-underline` CSS class.
  *
+ * ### Option Params
+ *
+ * When applied, `md-option-empty` will mark the option as "empty" allowing the option to  clear the
+ * select and put it back in it's default state. You may supply this attribute on any option you
+ * wish, however, it is automatically applied to an option whose `value` or `ng-value` are not
+ * defined.
+ * 
+ * **Automatically Applied**
+ *
+ *  - `<md-option>`
+ *  - `<md-option value>`
+ *  - `<md-option value="">`
+ *  - `<md-option ng-value>`
+ *  - `<md-option ng-value="">`
+ *  
+ * **NOT Automatically Applied**
+ *
+ *  - `<md-option ng-value="1">`
+ *  - `<md-option ng-value="''">`
+ *  - `<md-option ng-value="undefined">`
+ *  - `<md-option value="undefined">` (this evaluates to the string `"undefined"`)
+ *  - <code ng-non-bindable>&lt;md-option ng-value="{{someValueThatMightBeUndefined}}"&gt;</code>
+ *
+ * **Note:** A value of `undefined` ***is considered a valid value*** (and does not auto-apply this
+ * attribute) since you may wish this to be your "Not Available" or "None" option.
+ *
  * @param {expression} ng-model The model!
  * @param {boolean=} multiple Whether it's multiple.
  * @param {expression=} md-on-close Expression to be evaluated when the select is closed.
@@ -723,6 +749,11 @@ function SelectMenuDirective($parse, $mdUtil, $mdTheming) {
           // Map the given element to its innerHTML string. If the element has a child ripple
           // container remove it from the HTML string, before returning the string.
           mapFn = function(el) {
+            // If we do not have a `value` or `ng-value`, assume it is an empty option which clears the select
+            if (el.hasAttribute('md-option-empty')) {
+              return '';
+            }
+
             var html = el.innerHTML;
 
             // Remove the ripple container from the selected option, copying it would cause a CSP violation.
@@ -856,9 +887,21 @@ function OptionDirective($mdButtonInkRipple, $mdUtil) {
     element.append(angular.element('<div class="_md-text">').append(element.contents()));
 
     element.attr('tabindex', attr.tabindex || '0');
+
+    if (!hasDefinedValue(attr)) {
+      element.attr('md-option-empty', '');
+    }
+
     return postLink;
   }
 
+  function hasDefinedValue(attr) {
+    var value = attr.value;
+    var ngValue = attr.ngValue;
+
+    return value || ngValue;
+  }
+
   function postLink(scope, element, attr, ctrls) {
     var optionCtrl = ctrls[0];
     var selectCtrl = ctrls[1];
diff --git a/src/components/select/select.spec.js b/src/components/select/select.spec.js
index da2cb422f8b..9295d9ba4e2 100755
--- a/src/components/select/select.spec.js
+++ b/src/components/select/select.spec.js
@@ -255,6 +255,60 @@ describe('<md-select>', function() {
       expect(el).not.toHaveClass('md-input-has-value');
     }));
 
+    it('should add has-value class on container for option ng-value="undefined"', inject(function($rootScope) {
+      var el = setupSelect('ng-model="$root.value"',
+        '<md-option ng-value="undefined"></md-option><md-option ng-value="1">1</md-option>'
+      );
+      var select = el.find('md-select');
+
+      document.body.appendChild(el[0]);
+
+      openSelect(select);
+      waitForSelectOpen();
+      clickOption(select, 0);
+      expect(el).toHaveClass('md-input-has-value');
+
+      openSelect(select);
+      waitForSelectOpen();
+      clickOption(select, 1);
+      expect(el).toHaveClass('md-input-has-value');
+
+      el.remove();
+    }));
+
+    it('should unset has-value class on container for empty value option', inject(function($rootScope) {
+      var templates = [
+        '<md-option></md-option>',
+        '<md-option value></md-option>',
+        '<md-option value>None</md-option>',
+        '<md-option ng-value></md-option>',
+        '<md-option ng-value>None</md-option>',
+        '<md-option value=""></md-option>',
+        '<md-option ng-value=""></md-option>',
+      ];
+      
+      templates.forEach(function(template) {
+        var el = setupSelect('ng-model="$root.value"',
+          template + '<md-option ng-value="1">1</md-option>'
+        );
+        var select = el.find('md-select');
+
+        document.body.appendChild(el[0]);
+
+        openSelect(select);
+        waitForSelectOpen();
+        clickOption(select, 1);
+        expect(el).toHaveClass('md-input-has-value');
+
+        openSelect(select);
+        waitForSelectOpen();
+        clickOption(select, 0);
+        expect(el).not.toHaveClass('md-input-has-value');
+
+        el.remove();
+      });
+    }));
+
     it('should match label to given input id', function() {
       var el = setupSelect('ng-model="$root.value" id="foo"');
       expect(el.find('label').attr('for')).toBe('foo');