diff --git a/src/components/icon/icon.spec.js b/src/components/icon/icon.spec.js
index 40e5a19f02..5f57e644a4 100644
--- a/src/components/icon/icon.spec.js
+++ b/src/components/icon/icon.spec.js
@@ -301,6 +301,16 @@ describe('MdIcon directive', function() {
 
     describe('with ARIA support', function() {
 
+      it('should apply "img" role by default', function() {
+        el = make('<md-icon md-svg-icon="android" ></md-icon>');
+        expect(el.attr('role')).toEqual('img');
+      });
+
+      it('should apply not replace current role', function() {
+        el = make('<md-icon md-svg-icon="android" role="presentation" ></md-icon>');
+        expect(el.attr('role')).toEqual('presentation');
+      });
+
       it('should apply aria-hidden="true" when parent has valid label', function() {
         el = make('<button aria-label="Android"><md-icon md-svg-icon="android"></md-icon></button>');
         expect(el.find('md-icon').attr('aria-hidden')).toEqual('true');
@@ -314,9 +324,17 @@ describe('MdIcon directive', function() {
         expect(el.find('md-icon').attr('aria-hidden')).toEqual('true');
       });
 
-      it('should apply aria-hidden="true" when parent has text content', function() {
-        el = make('<button>Android <md-icon md-svg-icon="android"></md-icon></button>');
-        expect(el.find('md-icon').attr('aria-hidden')).toEqual('true');
+      it('should not apply aria-hidden="true" when parent has valid label but invalid role', function() {
+        el = make('<button aria-label="Android" role="command"><md-icon md-svg-icon="android"></md-icon></button>');
+        expect(el.find('md-icon').attr('aria-hidden')).toBeUndefined();
+
+        el = make('<md-radio-button aria-label="avatar 2" role="command"> '+
+                    '<div class="md-container"></div> '+
+                      '<div class="md-label"> '+
+                      '<md-icon md-svg-icon="android"></md-icon> '+
+                    '</div></md-radio-button>');
+
+        expect(el.find('md-icon').attr('aria-hidden')).toBeUndefined();
       });
 
       it('should apply aria-hidden="true" when aria-label is empty string', function() {
@@ -339,6 +357,11 @@ describe('MdIcon directive', function() {
         el = make('<md-icon md-svg-icon="android"></md-icon>');
         expect(el.attr('aria-label')).toEqual('android');
       });
+
+      it('should apply use alt text for aria-label value when not set', function() {
+        el = make('<md-icon md-svg-icon="android" alt="my android icon"></md-icon>');
+        expect(el.attr('aria-label')).toEqual('my android icon');
+      });
     });
   });
 
diff --git a/src/components/icon/js/iconDirective.js b/src/components/icon/js/iconDirective.js
index 7eb013e293..575336141b 100644
--- a/src/components/icon/js/iconDirective.js
+++ b/src/components/icon/js/iconDirective.js
@@ -218,20 +218,29 @@ function mdIconDirective($mdIcon, $mdTheming, $mdAria, $sce) {
     // If using a font-icon, then the textual name of the icon itself
     // provides the aria-label.
 
-    var label = attr.alt || attr.mdFontIcon || attr.mdSvgIcon || element.text();
     var attrName = attr.$normalize(attr.$attr.mdSvgIcon || attr.$attr.mdSvgSrc || '');
 
-    if ( !attr['aria-label'] ) {
-
-      if (label !== '' && !parentsHaveText() ) {
-
-        $mdAria.expect(element, 'aria-label', label);
-        $mdAria.expect(element, 'role', 'img');
-
-      } else if ( !element.text() ) {
-        // If not a font-icon with ligature, then
-        // hide from the accessibility layer.
+    /* Provide a default accessibility role of img */
+    if (!attr.role) {
+      $mdAria.expect(element, 'role', 'img');
+      /* manually update attr variable */
+      attr.role = 'img';
+    }
 
+    /* Don't process ARIA if already valid */
+    if ( attr.role === "img" && !attr.ariaHidden && !$mdAria.hasAriaLabel(element) ) {
+      var iconName;
+      if (attr.alt) {
+        /* Use alt text by default if available */
+        $mdAria.expect(element, 'aria-label', attr.alt);
+      } else if ($mdAria.parentHasAriaLabel(element, 2)) {
+        /* Parent has ARIA so we will assume it will describe the image */
+        $mdAria.expect(element, 'aria-hidden', 'true');
+      } else if (iconName = (attr.mdFontIcon || attr.mdSvgIcon || element.text())) {
+        /* Use icon name as aria-label */
+        $mdAria.expect(element, 'aria-label', iconName);
+      } else {
+        /* No label found */
         $mdAria.expect(element, 'aria-hidden', 'true');
       }
     }
@@ -247,21 +256,9 @@ function mdIconDirective($mdIcon, $mdTheming, $mdAria, $sce) {
             element.append(svg);
           });
         }
-
       });
     }
 
-    function parentsHaveText() {
-      var parent = element.parent();
-      if (parent.attr('aria-label') || parent.text()) {
-        return true;
-      }
-      else if(parent.parent().attr('aria-label') || parent.parent().text()) {
-        return true;
-      }
-      return false;
-    }
-
     function prepareForFontIcon() {
       if (!attr.mdSvgIcon && !attr.mdSvgSrc) {
         if (attr.mdFontIcon) {
diff --git a/src/core/services/aria/aria.js b/src/core/services/aria/aria.js
index a14fd08cef..a680befef5 100644
--- a/src/core/services/aria/aria.js
+++ b/src/core/services/aria/aria.js
@@ -66,7 +66,9 @@ function MdAriaService($$rAF, $log, $window, $interpolate) {
     expectAsync: expectAsync,
     expectWithText: expectWithText,
     expectWithoutText: expectWithoutText,
-    getText: getText
+    getText: getText,
+    hasAriaLabel: hasAriaLabel,
+    parentHasAriaLabel: parentHasAriaLabel
   };
 
   /**
@@ -169,7 +171,152 @@ function MdAriaService($$rAF, $log, $window, $interpolate) {
         }
       }
     }
-
     return hasAttr;
   }
+
+  /**
+   * Check if expected element has aria label attribute
+   * @param element
+   */
+  function hasAriaLabel(element) {
+    var node = angular.element(element)[0] || element;
+
+    /* Check if compatible node type (ie: not HTML Document node) */
+    if (!node.hasAttribute) {
+      return false;
+    }
+
+    /* Check label or description attributes */
+    return node.hasAttribute('aria-label') || node.hasAttribute('aria-labelledby') || node.hasAttribute('aria-describedby');
+  }
+
+  /**
+   * Check if expected element's parent has aria label attribute and has valid role and tagName
+   * @param element
+   * @param {optional} level Number of levels deep search should be performed
+   */
+  function parentHasAriaLabel(element, level) {
+    level = level || 1;
+    var node = angular.element(element)[0] || element;
+    if (!node.parentNode) {
+      return false;
+    }
+    if (performCheck(node.parentNode)) {
+      return true;
+    }
+    level--;
+    if (level) {
+      return parentHasAriaLabel(node.parentNode, level);
+    }
+    return false;
+
+    function performCheck(parentNode) {
+      if (!hasAriaLabel(parentNode)) {
+        return false;
+      }
+      /* Perform role blacklist check */
+      if (parentNode.hasAttribute('role')) {
+        switch(parentNode.getAttribute('role').toLowerCase()) {
+          case 'command':
+          case 'definition':
+          case 'directory':
+          case 'grid':
+          case 'list':
+          case 'listitem':
+          case 'log':
+          case 'marquee':
+          case 'menu':
+          case 'menubar':
+          case 'note':
+          case 'presentation':
+          case 'separator':
+          case 'scrollbar':
+          case 'status':
+          case 'tablist':
+            return false;
+        }
+      }
+      /* Perform tagName blacklist check */
+      switch(parentNode.tagName.toLowerCase()) {
+        case 'abbr':
+        case 'acronym':
+        case 'address':
+        case 'applet':
+        case 'audio':
+        case 'b':
+        case 'bdi':
+        case 'bdo':
+        case 'big':
+        case 'blockquote':
+        case 'br':
+        case 'canvas':
+        case 'caption':
+        case 'center':
+        case 'cite':
+        case 'code':
+        case 'col':
+        case 'data':
+        case 'dd':
+        case 'del':
+        case 'dfn':
+        case 'dir':
+        case 'div':
+        case 'dl':
+        case 'em':
+        case 'embed':
+        case 'fieldset':
+        case 'figcaption':
+        case 'font':
+        case 'h1':
+        case 'h2':
+        case 'h3':
+        case 'h4':
+        case 'h5':
+        case 'h6':
+        case 'hgroup':
+        case 'html':
+        case 'i':
+        case 'ins':
+        case 'isindex':
+        case 'kbd':
+        case 'keygen':
+        case 'label':
+        case 'legend':
+        case 'li':
+        case 'map':
+        case 'mark':
+        case 'menu':
+        case 'object':
+        case 'ol':
+        case 'output':
+        case 'pre':
+        case 'presentation':
+        case 'q':
+        case 'rt':
+        case 'ruby':
+        case 'samp':
+        case 'small':
+        case 'source':
+        case 'span':
+        case 'status':
+        case 'strike':
+        case 'strong':
+        case 'sub':
+        case 'sup':
+        case 'svg':
+        case 'tbody':
+        case 'td':
+        case 'th':
+        case 'thead':
+        case 'time':
+        case 'tr':
+        case 'track':
+        case 'tt':
+        case 'ul':
+        case 'var':
+          return false;
+      }
+      return true;
+    }
+  }
 }
diff --git a/src/core/services/aria/aria.spec.js b/src/core/services/aria/aria.spec.js
index 0ad503e189..8692ceb113 100644
--- a/src/core/services/aria/aria.spec.js
+++ b/src/core/services/aria/aria.spec.js
@@ -113,6 +113,58 @@ describe('$mdAria service', function() {
 
   });
 
+  describe('aria label checks', function() {
+
+    it('should detect if element has valid aria-label string', inject(function($compile, $rootScope, $log, $mdAria) {
+      var container = $compile('<div aria-label="hello"></div>')($rootScope);
+      expect($mdAria.hasAriaLabel(container)).toBe(true);
+    }));
+
+    it('should detect if element has valid aria-labelledby string', inject(function($compile, $rootScope, $log, $mdAria) {
+      var container = $compile('<div aria-labelledby="myOtherElementId"></div>')($rootScope);
+      expect($mdAria.hasAriaLabel(container)).toBe(true);
+    }));
+
+    it('should detect if element has valid aria-describedby string', inject(function($compile, $rootScope, $log, $mdAria) {
+      var container = $compile('<div aria-describedby="myOtherElementId"></div>')($rootScope);
+      expect($mdAria.hasAriaLabel(container)).toBe(true);
+    }));
+
+  });
+
+  describe('aria label parent checks', function() {
+
+    it('should detect if parent of element has valid aria label', inject(function($compile, $rootScope, $log, $mdAria) {
+      var container = $compile('<button aria-label="hello"><img></img></button>')($rootScope);
+      var imgElement = container.find('img');
+      expect($mdAria.hasAriaLabel(imgElement)).toBe(false);
+      expect($mdAria.parentHasAriaLabel(imgElement)).toBe(true);
+    }));
+
+    it('should blacklist parent of element based on role', inject(function($compile, $rootScope, $log, $mdAria) {
+      var container = $compile('<button role="log" aria-label="hello"><img></img></button>')($rootScope);
+      var imgElement = container.find('img');
+      expect($mdAria.hasAriaLabel(imgElement)).toBe(false);
+      expect($mdAria.parentHasAriaLabel(imgElement)).toBe(false);
+    }));
+
+    it('should blacklist parent of element based on tagName', inject(function($compile, $rootScope, $log, $mdAria) {
+      var container = $compile('<span aria-label="hello"><img></img></span>')($rootScope);
+      var imgElement = container.find('img');
+      expect($mdAria.hasAriaLabel(imgElement)).toBe(false);
+      expect($mdAria.parentHasAriaLabel(imgElement)).toBe(false);
+    }));
+
+    it('should detect if second parent of element has valid aria label', inject(function($compile, $rootScope, $log, $mdAria) {
+      var container = $compile('<button aria-label="hello"><div><img></img></div></button>')($rootScope);
+      var imgElement = container.find('img');
+      expect($mdAria.hasAriaLabel(imgElement)).toBe(false);
+      expect($mdAria.parentHasAriaLabel(imgElement)).toBe(false);
+      expect($mdAria.parentHasAriaLabel(imgElement, 2)).toBe(true);
+    }));
+
+  });
+
   describe('with disabled warnings', function() {
 
     beforeEach(module('material.core', function($mdAriaProvider) {