diff --git a/src/lib/select/select.spec.ts b/src/lib/select/select.spec.ts
index 471726da3a92..6a1ea2db754a 100644
--- a/src/lib/select/select.spec.ts
+++ b/src/lib/select/select.spec.ts
@@ -19,15 +19,18 @@ import {Dir} from '../core/rtl/dir';
 import {
   ControlValueAccessor, FormControl, FormsModule, NG_VALUE_ACCESSOR, ReactiveFormsModule
 } from '@angular/forms';
+import {Subject} from 'rxjs/Subject';
 import {ViewportRuler} from '../core/overlay/position/viewport-ruler';
 import {dispatchFakeEvent, dispatchKeyboardEvent} from '../core/testing/dispatch-events';
 import {wrappedErrorMessage} from '../core/testing/wrapped-error-message';
 import {TAB} from '../core/keyboard/keycodes';
+import {ScrollDispatcher} from '../core/overlay/scroll/scroll-dispatcher';
 
 
 describe('MdSelect', () => {
   let overlayContainerElement: HTMLElement;
   let dir: {value: 'ltr'|'rtl'};
+  let scrolledSubject = new Subject();
 
   beforeEach(async(() => {
     TestBed.configureTestingModule({
@@ -69,7 +72,12 @@ describe('MdSelect', () => {
         {provide: Dir, useFactory: () => {
           return dir = { value: 'ltr' };
         }},
-        {provide: ViewportRuler, useClass: FakeViewportRuler}
+        {provide: ViewportRuler, useClass: FakeViewportRuler},
+        {provide: ScrollDispatcher, useFactory: () => {
+          return {scrolled: (delay: number, callback: () => any) => {
+            return scrolledSubject.asObservable().subscribe(callback);
+          }};
+        }}
       ]
     });
 
@@ -971,7 +979,6 @@ describe('MdSelect', () => {
         checkTriggerAlignedWithOption(0);
       });
 
-
       it('should align a centered option properly when scrolled', () => {
         // Give the select enough space to open
         fixture.componentInstance.heightBelow = 400;
@@ -989,6 +996,22 @@ describe('MdSelect', () => {
         checkTriggerAlignedWithOption(4);
       });
 
+      it('should align a centered option properly when scrolling while the panel is open', () => {
+        fixture.componentInstance.heightBelow = 400;
+        fixture.componentInstance.heightAbove = 400;
+        fixture.componentInstance.control.setValue('chips-4');
+        fixture.detectChanges();
+
+        trigger.click();
+        fixture.detectChanges();
+
+        setScrollTop(100);
+        scrolledSubject.next();
+        fixture.detectChanges();
+
+        checkTriggerAlignedWithOption(4);
+      });
+
       it('should fall back to "above" positioning properly when scrolled', () => {
         // Give the select insufficient space to open below the trigger
         fixture.componentInstance.heightBelow = 100;
diff --git a/src/lib/select/select.ts b/src/lib/select/select.ts
index a44d58f1d1d2..3e129b1521aa 100644
--- a/src/lib/select/select.ts
+++ b/src/lib/select/select.ts
@@ -29,6 +29,7 @@ import {coerceBooleanProperty} from '../core/coercion/boolean-property';
 import {ConnectedOverlayDirective} from '../core/overlay/overlay-directives';
 import {ViewportRuler} from '../core/overlay/position/viewport-ruler';
 import {SelectionModel} from '../core/selection/selection';
+import {ScrollDispatcher} from '../core/overlay/scroll/scroll-dispatcher';
 import {MdSelectDynamicMultipleError, MdSelectNonArrayValueError} from './select-errors';
 import 'rxjs/add/observable/merge';
 import 'rxjs/add/operator/startWith';
@@ -133,6 +134,9 @@ export class MdSelect implements AfterContentInit, OnDestroy, OnInit, ControlVal
   /** Subscription to tab events while overlay is focused. */
   private _tabSubscription: Subscription;
 
+  /** Subscription to global scrolled events while the select is open. */
+  private _scrollSubscription: Subscription;
+
   /** Whether filling out the select is required in the form.  */
   private _required: boolean = false;
 
@@ -317,8 +321,10 @@ export class MdSelect implements AfterContentInit, OnDestroy, OnInit, ControlVal
 
   constructor(private _element: ElementRef, private _renderer: Renderer2,
               private _viewportRuler: ViewportRuler, private _changeDetectorRef: ChangeDetectorRef,
-              @Optional() private _dir: Dir, @Self() @Optional() public _control: NgControl,
+              private _scrollDispatcher: ScrollDispatcher, @Optional() private _dir: Dir,
+              @Self() @Optional() public _control: NgControl,
               @Attribute('tabindex') tabIndex: string) {
+
     if (this._control) {
       this._control.valueAccessor = this;
     }
@@ -375,15 +381,25 @@ export class MdSelect implements AfterContentInit, OnDestroy, OnInit, ControlVal
     this._calculateOverlayPosition();
     this._placeholderState = this._floatPlaceholderState();
     this._panelOpen = true;
+    this._scrollSubscription = this._scrollDispatcher.scrolled(0, () => {
+      this.overlayDir.overlayRef.updatePosition();
+    });
   }
 
   /** Closes the overlay panel and focuses the host element. */
   close(): void {
     if (this._panelOpen) {
       this._panelOpen = false;
+
       if (this._selectionModel.isEmpty()) {
         this._placeholderState = '';
       }
+
+      if (this._scrollSubscription) {
+        this._scrollSubscription.unsubscribe();
+        this._scrollSubscription = null;
+      }
+
       this._focusHost();
     }
   }