diff --git a/e2e/components/dialog/dialog.e2e.ts b/e2e/components/dialog/dialog.e2e.ts
index 907713ceeaae..7c160f62b561 100644
--- a/e2e/components/dialog/dialog.e2e.ts
+++ b/e2e/components/dialog/dialog.e2e.ts
@@ -11,6 +11,12 @@ describe('dialog', () => {
     expectToExist('md-dialog-container');
   });
 
+  it('should open a template dialog', () => {
+    expectToExist('.my-template-dialog', false);
+    element(by.id('template')).click();
+    expectToExist('.my-template-dialog');
+  });
+
   it('should close by clicking on the backdrop', () => {
     element(by.id('default')).click();
 
diff --git a/src/demo-app/dialog/dialog-demo.html b/src/demo-app/dialog/dialog-demo.html
index 53734bbbfdff..8b87d6e04d07 100644
--- a/src/demo-app/dialog/dialog-demo.html
+++ b/src/demo-app/dialog/dialog-demo.html
@@ -1,7 +1,14 @@
 <h1>Dialog demo</h1>
 
-<button md-raised-button color="primary" (click)="openJazz()" [disabled]="dialogRef">Open dialog</button>
-<button md-raised-button color="accent" (click)="openContentElement()">Open dialog with content elements</button>
+<button md-raised-button color="primary" (click)="openJazz()" [disabled]="dialogRef">
+  Open dialog
+</button>
+<button md-raised-button color="accent" (click)="openContentElement()">
+  Open dialog with content elements
+</button>
+<button md-raised-button color="accent" (click)="openTemplate()">
+  Open dialog with template content
+</button>
 
 <md-card class="demo-dialog-card">
   <md-card-content>
@@ -51,3 +58,7 @@ <h2>Other options</h2>
 </md-card>
 
 <p>Last close result: {{lastCloseResult}}</p>
+
+<template>
+  I'm a template dialog. I've been opened {{numTemplateOpens}} times!
+</template>
diff --git a/src/demo-app/dialog/dialog-demo.ts b/src/demo-app/dialog/dialog-demo.ts
index 5e91c097f9aa..68a4c81fac82 100644
--- a/src/demo-app/dialog/dialog-demo.ts
+++ b/src/demo-app/dialog/dialog-demo.ts
@@ -1,4 +1,4 @@
-import {Component, Inject} from '@angular/core';
+import {Component, Inject, ViewChild, TemplateRef} from '@angular/core';
 import {DOCUMENT} from '@angular/platform-browser';
 import {MdDialog, MdDialogRef, MdDialogConfig} from '@angular/material';
 
@@ -23,6 +23,9 @@ export class DialogDemo {
       right: ''
     }
   };
+  numTemplateOpens = 0;
+
+  @ViewChild(TemplateRef) template: TemplateRef<any>;
 
   constructor(public dialog: MdDialog, @Inject(DOCUMENT) doc: any) {
     // Possible useful example for the open and closeAll events.
@@ -51,6 +54,11 @@ export class DialogDemo {
     let dialogRef = this.dialog.open(ContentElementDialog, this.config);
     dialogRef.componentInstance.actionsAlignment = this.actionsAlignment;
   }
+
+  openTemplate() {
+    this.numTemplateOpens++;
+    this.dialog.open(this.template, this.config);
+  }
 }
 
 
diff --git a/src/e2e-app/dialog/dialog-e2e.html b/src/e2e-app/dialog/dialog-e2e.html
index 827bfee99ca0..b66e8dfd8c51 100644
--- a/src/e2e-app/dialog/dialog-e2e.html
+++ b/src/e2e-app/dialog/dialog-e2e.html
@@ -1,2 +1,5 @@
 <button id="default" (click)="openDefault()">DEFAULT</button>
 <button id="disabled" (click)="openDisabled()">DISABLED</button>
+<button id="template" (click)="openTemplate()">TEMPLATE</button>
+
+<template><div class="my-template-dialog">my template dialog</div></template>
diff --git a/src/e2e-app/dialog/dialog-e2e.ts b/src/e2e-app/dialog/dialog-e2e.ts
index 068406bbc5cb..09f833d96d0b 100644
--- a/src/e2e-app/dialog/dialog-e2e.ts
+++ b/src/e2e-app/dialog/dialog-e2e.ts
@@ -1,4 +1,4 @@
-import {Component} from '@angular/core';
+import {Component, ViewChild, TemplateRef} from '@angular/core';
 import {MdDialog, MdDialogRef, MdDialogConfig} from '@angular/material';
 
 @Component({
@@ -9,6 +9,8 @@ import {MdDialog, MdDialogRef, MdDialogConfig} from '@angular/material';
 export class DialogE2E {
   dialogRef: MdDialogRef<TestDialog>;
 
+  @ViewChild(TemplateRef) templateRef: TemplateRef<any>;
+
   constructor (private _dialog: MdDialog) { }
 
   private _openDialog(config?: MdDialogConfig) {
@@ -28,6 +30,10 @@ export class DialogE2E {
       disableClose: true
     });
   }
+
+  openTemplate() {
+    this.dialogRef = this._dialog.open(this.templateRef);
+  }
 }
 
 @Component({
diff --git a/src/lib/dialog/dialog-container.ts b/src/lib/dialog/dialog-container.ts
index 415c6d31c1bb..c9aa19dcec04 100644
--- a/src/lib/dialog/dialog-container.ts
+++ b/src/lib/dialog/dialog-container.ts
@@ -52,7 +52,7 @@ export class MdDialogContainer extends BasePortalHost implements OnDestroy {
   }
 
   /**
-   * Attach a portal as content to this dialog container.
+   * Attach a ComponentPortal as content to this dialog container.
    * @param portal Portal to be attached as the dialog content.
    */
   attachComponentPortal<T>(portal: ComponentPortal<T>): ComponentRef<T> {
@@ -61,7 +61,29 @@ export class MdDialogContainer extends BasePortalHost implements OnDestroy {
     }
 
     let attachResult = this._portalHost.attachComponentPortal(portal);
+    this._trapFocus();
+    return attachResult;
+  }
+
+  /**
+   * Attach a TemplatePortal as content to this dialog container.
+   * @param portal Portal to be attached as the dialog content.
+   */
+  attachTemplatePortal(portal: TemplatePortal): Map<string, any> {
+    if (this._portalHost.hasAttached()) {
+      throw new MdDialogContentAlreadyAttachedError();
+    }
 
+    let attachedResult = this._portalHost.attachTemplatePortal(portal);
+    this._trapFocus();
+    return attachedResult;
+  }
+
+  /**
+   * Moves the focus inside the focus trap.
+   * @private
+   */
+  private _trapFocus() {
     // If were to attempt to focus immediately, then the content of the dialog would not yet be
     // ready in instances where change detection has to run first. To deal with this, we simply
     // wait for the microtask queue to be empty.
@@ -69,13 +91,6 @@ export class MdDialogContainer extends BasePortalHost implements OnDestroy {
       this._elementFocusedBeforeDialogWasOpened = document.activeElement;
       this._focusTrap.focusFirstTabbableElement();
     });
-
-    return attachResult;
-  }
-
-  /** @docs-private */
-  attachTemplatePortal(portal: TemplatePortal): Map<string, any> {
-    throw Error('Not yet implemented');
   }
 
   /**
diff --git a/src/lib/dialog/dialog.ts b/src/lib/dialog/dialog.ts
index 93e48cd6b2fc..95ea356b8d4c 100644
--- a/src/lib/dialog/dialog.ts
+++ b/src/lib/dialog/dialog.ts
@@ -1,17 +1,15 @@
-import {Injector, ComponentRef, Injectable, Optional, SkipSelf} from '@angular/core';
+import {Injector, ComponentRef, Injectable, Optional, SkipSelf, TemplateRef} from '@angular/core';
 import {Observable} from 'rxjs/Observable';
 import {Subject} from 'rxjs/Subject';
-
 import {Overlay, OverlayRef, ComponentType, OverlayState, ComponentPortal} from '../core';
 import {extendObject} from '../core/util/object-extend';
-
 import {DialogInjector} from './dialog-injector';
 import {MdDialogConfig} from './dialog-config';
 import {MdDialogRef} from './dialog-ref';
 import {MdDialogContainer} from './dialog-container';
+import {TemplatePortal} from '../core/portal/portal';
 
 
-// TODO(jelbourn): add support for opening with a TemplateRef
 // TODO(jelbourn): animations
 
 
@@ -53,16 +51,19 @@ export class MdDialog {
 
   /**
    * Opens a modal dialog containing the given component.
-   * @param component Type of the component to load into the load.
+   * @param componentOrTemplateRef Type of the component to load into the dialog,
+   *     or a TemplateRef to instantiate as the dialog content.
    * @param config Extra configuration options.
    * @returns Reference to the newly-opened dialog.
    */
-  open<T>(component: ComponentType<T>, config?: MdDialogConfig): MdDialogRef<T> {
+  open<T>(componentOrTemplateRef: ComponentType<T> | TemplateRef<T>,
+          config?: MdDialogConfig): MdDialogRef<T> {
     config = _applyConfigDefaults(config);
 
     let overlayRef = this._createOverlay(config);
     let dialogContainer = this._attachDialogContainer(overlayRef, config);
-    let dialogRef = this._attachDialogContent(component, dialogContainer, overlayRef, config);
+    let dialogRef =
+        this._attachDialogContent(componentOrTemplateRef, dialogContainer, overlayRef, config);
 
     this._openDialogs.push(dialogRef);
     dialogRef.afterClosed().subscribe(() => this._removeOpenDialog(dialogRef));
@@ -114,14 +115,15 @@ export class MdDialog {
 
   /**
    * Attaches the user-provided component to the already-created MdDialogContainer.
-   * @param component The type of component being loaded into the dialog.
+   * @param componentOrTemplateRef The type of component being loaded into the dialog,
+   *     or a TemplateRef to instantiate as the content.
    * @param dialogContainer Reference to the wrapping MdDialogContainer.
    * @param overlayRef Reference to the overlay in which the dialog resides.
    * @param config The dialog configuration.
    * @returns A promise resolving to the MdDialogRef that should be returned to the user.
    */
   private _attachDialogContent<T>(
-      component: ComponentType<T>,
+      componentOrTemplateRef: ComponentType<T> | TemplateRef<T>,
       dialogContainer: MdDialogContainer,
       overlayRef: OverlayRef,
       config?: MdDialogConfig): MdDialogRef<T> {
@@ -143,10 +145,13 @@ export class MdDialog {
     let userInjector = config && config.viewContainerRef && config.viewContainerRef.injector;
     let dialogInjector = new DialogInjector(dialogRef, userInjector || this._injector);
 
-    let contentPortal = new ComponentPortal(component, null, dialogInjector);
-
-    let contentRef = dialogContainer.attachComponentPortal(contentPortal);
-    dialogRef.componentInstance = contentRef.instance;
+    if (componentOrTemplateRef instanceof TemplateRef) {
+      dialogContainer.attachTemplatePortal(new TemplatePortal(componentOrTemplateRef, null));
+    } else {
+      let contentRef = dialogContainer.attachComponentPortal(
+          new ComponentPortal(componentOrTemplateRef, null, dialogInjector));
+      dialogRef.componentInstance = contentRef.instance;
+    }
 
     return dialogRef;
   }