diff --git a/src/lib/core/observe-content/observe-content.spec.ts b/src/lib/core/observe-content/observe-content.spec.ts
index 330a812b2e7c..798987e7f164 100644
--- a/src/lib/core/observe-content/observe-content.spec.ts
+++ b/src/lib/core/observe-content/observe-content.spec.ts
@@ -1,22 +1,22 @@
 import {Component} from '@angular/core';
-import {async, TestBed} from '@angular/core/testing';
-import {ObserveContentModule} from './observe-content';
+import {async, TestBed, ComponentFixture, fakeAsync, tick} from '@angular/core/testing';
+import {ObserveContentModule, MdMutationObserverFactory} from './observe-content';
 
 // TODO(elad): `ProxyZone` doesn't seem to capture the events raised by
 // `MutationObserver` and needs to be investigated
 
 describe('Observe content', () => {
-  beforeEach(async(() => {
-    TestBed.configureTestingModule({
-      imports: [ObserveContentModule],
-      declarations: [ComponentWithTextContent, ComponentWithChildTextContent],
-    });
+  describe('basic usage', () => {
+    beforeEach(async(() => {
+      TestBed.configureTestingModule({
+        imports: [ObserveContentModule],
+        declarations: [ComponentWithTextContent, ComponentWithChildTextContent]
+      });
 
-    TestBed.compileComponents();
-  }));
+      TestBed.compileComponents();
+    }));
 
-  describe('text content change', () => {
-    it('should call the registered for changes function', done => {
+    it('should trigger the callback when the content of the element changes', done => {
       let fixture = TestBed.createComponent(ComponentWithTextContent);
       fixture.detectChanges();
 
@@ -31,10 +31,8 @@ describe('Observe content', () => {
       fixture.componentInstance.text = 'text';
       fixture.detectChanges();
     });
-  });
 
-  describe('child text content change', () => {
-    it('should call the registered for changes function', done => {
+    it('should trigger the callback when the content of the children changes', done => {
       let fixture = TestBed.createComponent(ComponentWithChildTextContent);
       fixture.detectChanges();
 
@@ -50,6 +48,48 @@ describe('Observe content', () => {
       fixture.detectChanges();
     });
   });
+
+  describe('debounced', () => {
+    let fixture: ComponentFixture<ComponentWithDebouncedListener>;
+    let callbacks: Function[];
+    let invokeCallbacks = (args?: any) => callbacks.forEach(callback => callback(args));
+
+    beforeEach(async(() => {
+      callbacks = [];
+
+      TestBed.configureTestingModule({
+        imports: [ObserveContentModule],
+        declarations: [ComponentWithDebouncedListener],
+        providers: [{
+          provide: MdMutationObserverFactory,
+          useValue: {
+            create: function(callback: Function) {
+              callbacks.push(callback);
+
+              return {
+                observe: () => {},
+                disconnect: () => {}
+              };
+            }
+          }
+        }]
+      });
+
+      TestBed.compileComponents();
+
+      fixture = TestBed.createComponent(ComponentWithDebouncedListener);
+      fixture.detectChanges();
+    }));
+
+    it('should debounce the content changes', fakeAsync(() => {
+      invokeCallbacks();
+      invokeCallbacks();
+      invokeCallbacks();
+
+      tick(500);
+      expect(fixture.componentInstance.spy).toHaveBeenCalledTimes(1);
+    }));
+  });
 });
 
 
@@ -64,3 +104,11 @@ class ComponentWithChildTextContent {
   text = '';
   doSomething() {}
 }
+
+@Component({
+  template: `<div (cdkObserveContent)="spy($event)" [debounce]="debounce">{{text}}</div>`
+})
+class ComponentWithDebouncedListener {
+  debounce = 500;
+  spy = jasmine.createSpy('MutationObserver callback');
+}
diff --git a/src/lib/core/observe-content/observe-content.ts b/src/lib/core/observe-content/observe-content.ts
index 1b2ea90b7da9..5c410be4dcf8 100644
--- a/src/lib/core/observe-content/observe-content.ts
+++ b/src/lib/core/observe-content/observe-content.ts
@@ -3,10 +3,25 @@ import {
   ElementRef,
   NgModule,
   Output,
+  Input,
   EventEmitter,
   OnDestroy,
-  AfterContentInit
+  AfterContentInit,
+  Injectable,
 } from '@angular/core';
+import {Subject} from 'rxjs/Subject';
+import 'rxjs/add/operator/debounceTime';
+
+/**
+ * Factory that creates a new MutationObserver and allows us to stub it out in unit tests.
+ * @docs-private
+ */
+@Injectable()
+export class MdMutationObserverFactory {
+  create(callback): MutationObserver {
+    return new MutationObserver(callback);
+  }
+}
 
 /**
  * Directive that triggers a callback whenever the content of
@@ -19,12 +34,30 @@ export class ObserveContent implements AfterContentInit, OnDestroy {
   private _observer: MutationObserver;
 
   /** Event emitted for each change in the element's content. */
-  @Output('cdkObserveContent') event = new EventEmitter<void>();
+  @Output('cdkObserveContent') event = new EventEmitter<MutationRecord[]>();
+
+  /** Used for debouncing the emitted values to the observeContent event. */
+  private _debouncer = new Subject<MutationRecord[]>();
 
-  constructor(private _elementRef: ElementRef) {}
+  /** Debounce interval for emitting the changes. */
+  @Input() debounce: number;
+
+  constructor(
+    private _mutationObserverFactory: MdMutationObserverFactory,
+    private _elementRef: ElementRef) { }
 
   ngAfterContentInit() {
-    this._observer = new MutationObserver(mutations => mutations.forEach(() => this.event.emit()));
+    if (this.debounce > 0) {
+      this._debouncer
+        .debounceTime(this.debounce)
+        .subscribe(mutations => this.event.emit(mutations));
+    } else {
+      this._debouncer.subscribe(mutations => this.event.emit(mutations));
+    }
+
+    this._observer = this._mutationObserverFactory.create((mutations: MutationRecord[]) => {
+      this._debouncer.next(mutations);
+    });
 
     this._observer.observe(this._elementRef.nativeElement, {
       characterData: true,
@@ -36,12 +69,16 @@ export class ObserveContent implements AfterContentInit, OnDestroy {
   ngOnDestroy() {
     if (this._observer) {
       this._observer.disconnect();
+      this._debouncer.complete();
+      this._debouncer = this._observer = null;
     }
   }
 }
 
+
 @NgModule({
   exports: [ObserveContent],
-  declarations: [ObserveContent]
+  declarations: [ObserveContent],
+  providers: [MdMutationObserverFactory]
 })
 export class ObserveContentModule {}
diff --git a/tools/gulp/util/rollup-helper.ts b/tools/gulp/util/rollup-helper.ts
index 32f85561bb43..fe56b6932610 100644
--- a/tools/gulp/util/rollup-helper.ts
+++ b/tools/gulp/util/rollup-helper.ts
@@ -36,6 +36,7 @@ const ROLLUP_GLOBALS = {
   'rxjs/add/operator/first': 'Rx.Observable.prototype',
   'rxjs/add/operator/startWith': 'Rx.Observable.prototype',
   'rxjs/add/operator/switchMap': 'Rx.Observable.prototype',
+  'rxjs/add/operator/debounceTime': 'Rx.Observable.prototype',
   'rxjs/Observable': 'Rx'
 };