diff --git a/src/demo-app/demo-app-module.ts b/src/demo-app/demo-app-module.ts
index 2cce8f9be446..38ec54b7ce1f 100644
--- a/src/demo-app/demo-app-module.ts
+++ b/src/demo-app/demo-app-module.ts
@@ -41,6 +41,7 @@ import {DataTableDemo} from './data-table/data-table-demo';
 import {PeopleDatabase} from './data-table/people-database';
 import {DatepickerDemo} from './datepicker/datepicker-demo';
 import {TypographyDemo} from './typography/typography-demo';
+import {ExpansionDemo} from './expansion/expansion-demo';
 import {
   CdkDataTableModule,
   FullscreenOverlayContainer,
@@ -53,6 +54,7 @@ import {
   MdCoreModule,
   MdDatepickerModule,
   MdDialogModule,
+  MdExpansionModule,
   MdGridListModule,
   MdIconModule,
   MdInputModule,
@@ -87,6 +89,7 @@ import {
     MdChipsModule,
     MdDatepickerModule,
     MdDialogModule,
+    MdExpansionModule,
     MdGridListModule,
     MdIconModule,
     MdInputModule,
@@ -170,6 +173,7 @@ export class DemoMaterialModule {}
     FoggyTabContent,
     PlatformDemo,
     TypographyDemo,
+    ExpansionDemo,
   ],
   providers: [
     {provide: OverlayContainer, useClass: FullscreenOverlayContainer},
diff --git a/src/demo-app/demo-app/demo-app.ts b/src/demo-app/demo-app/demo-app.ts
index 57be232775fe..ff358a37abb3 100644
--- a/src/demo-app/demo-app/demo-app.ts
+++ b/src/demo-app/demo-app/demo-app.ts
@@ -43,6 +43,7 @@ export class DemoApp {
     {name: 'Data Table', route: 'data-table'},
     {name: 'Datepicker', route: 'datepicker'},
     {name: 'Dialog', route: 'dialog'},
+    {name: 'Expansion Panel', route: 'expansion'},
     {name: 'Gestures', route: 'gestures'},
     {name: 'Grid List', route: 'grid-list'},
     {name: 'Icon', route: 'icon'},
diff --git a/src/demo-app/demo-app/routes.ts b/src/demo-app/demo-app/routes.ts
index a23ab93b5561..beca55e41423 100644
--- a/src/demo-app/demo-app/routes.ts
+++ b/src/demo-app/demo-app/routes.ts
@@ -35,6 +35,7 @@ import {StyleDemo} from '../style/style-demo';
 import {DatepickerDemo} from '../datepicker/datepicker-demo';
 import {DataTableDemo} from '../data-table/data-table-demo';
 import {TypographyDemo} from '../typography/typography-demo';
+import {ExpansionDemo} from '../expansion/expansion-demo';
 
 export const DEMO_APP_ROUTES: Routes = [
   {path: '', component: Home},
@@ -71,5 +72,6 @@ export const DEMO_APP_ROUTES: Routes = [
   {path: 'snack-bar', component: SnackBarDemo},
   {path: 'platform', component: PlatformDemo},
   {path: 'style', component: StyleDemo},
-  {path: 'typography', component: TypographyDemo}
+  {path: 'typography', component: TypographyDemo},
+  {path: 'expansion', component: ExpansionDemo},
 ];
diff --git a/src/demo-app/expansion/expansion-demo.html b/src/demo-app/expansion/expansion-demo.html
new file mode 100644
index 000000000000..fe2fa05517de
--- /dev/null
+++ b/src/demo-app/expansion/expansion-demo.html
@@ -0,0 +1,52 @@
+<h1>Single Expansion Panel</h1>
+<md-expansion-panel class="md-expansion-demo-width" #myPanel>
+  <md-expansion-panel-header>
+    <mat-panel-description>This is a panel description.</mat-panel-description>
+    <mat-panel-title>Panel Title</mat-panel-title>
+  </md-expansion-panel-header>
+    This is the content text that makes sense here.
+  <md-action-row>
+    <button md-button (click)="myPanel.expanded = false">CANCEL</button>
+    <button md-button>SAVE</button>
+  </md-action-row>
+</md-expansion-panel>
+<br>
+<h1>Accordion</h1>
+<div>
+  <p>Accordion Options</p>
+  <div>
+    <md-slide-toggle [(ngModel)]="multi">Allow Multi Expansion</md-slide-toggle>
+    <md-slide-toggle [(ngModel)]="hideToggle">Hide Indicators</md-slide-toggle>
+    <md-slide-toggle [(ngModel)]="showPanel3">Show Panel 3</md-slide-toggle>
+  </div>
+  <p>Accordion Style</p>
+  <md-radio-group [(ngModel)]="displayMode">
+    <md-radio-button value="default">Default</md-radio-button>
+    <md-radio-button value="flat">Flat</md-radio-button>
+  </md-radio-group>
+  <p>Accordion Panel(s)</p>
+  <div>
+    <md-checkbox [(ngModel)]="panel1.expanded">Panel 1</md-checkbox>
+    <md-checkbox [(ngModel)]="panel2.expanded">Panel 2</md-checkbox>
+  </div>
+</div>
+<br>
+<md-accordion [displayMode]="displayMode" [multi]="multi"
+              class="md-expansion-demo-width">
+  <md-expansion-panel #panel1  [hideToggle]="hideToggle">
+    <md-expansion-panel-header>Section 1</md-expansion-panel-header>
+    <p>This is the content text that makes sense here.</p>
+  </md-expansion-panel>
+  <md-expansion-panel #panel2 [hideToggle]="hideToggle">
+    <md-expansion-panel-header>Section 2</md-expansion-panel-header>
+    <p>This is the content text that makes sense here.</p>
+  </md-expansion-panel>
+  <md-expansion-panel #panel3 *ngIf="showPanel3" [hideToggle]="hideToggle">
+    <md-expansion-panel-header>Section 3</md-expansion-panel-header>
+    <md-checkbox #showButtons>Reveal Buttons Below</md-checkbox>
+    <md-action-row *ngIf="showButtons.checked">
+      <button md-button (click)="panel2.expanded = true">OPEN SECTION 2</button>
+      <button md-button (click)="panel3.expanded = false">CLOSE</button>
+    </md-action-row>
+  </md-expansion-panel>
+</md-accordion>
\ No newline at end of file
diff --git a/src/demo-app/expansion/expansion-demo.scss b/src/demo-app/expansion/expansion-demo.scss
new file mode 100644
index 000000000000..20e4bbd80427
--- /dev/null
+++ b/src/demo-app/expansion/expansion-demo.scss
@@ -0,0 +1,4 @@
+.md-expansion-demo-width {
+  width: 600px;
+  display: block;
+}
\ No newline at end of file
diff --git a/src/demo-app/expansion/expansion-demo.ts b/src/demo-app/expansion/expansion-demo.ts
new file mode 100644
index 000000000000..170ebc3c441c
--- /dev/null
+++ b/src/demo-app/expansion/expansion-demo.ts
@@ -0,0 +1,15 @@
+import {Component, ViewEncapsulation} from '@angular/core';
+
+@Component({
+  moduleId: module.id,
+  selector: 'expansion-demo',
+  styleUrls: ['expansion-demo.css'],
+  templateUrl: 'expansion-demo.html',
+  encapsulation: ViewEncapsulation.None,
+})
+export class ExpansionDemo {
+  displayMode: string = 'default';
+  multi: boolean = false;
+  hideToggle: boolean = false;
+  showPanel3 = true;
+}
diff --git a/src/lib/core/theming/_all-theme.scss b/src/lib/core/theming/_all-theme.scss
index 374225788931..bfd0523981b2 100644
--- a/src/lib/core/theming/_all-theme.scss
+++ b/src/lib/core/theming/_all-theme.scss
@@ -8,6 +8,7 @@
 @import '../../chips/chips-theme';
 @import '../../datepicker/datepicker-theme';
 @import '../../dialog/dialog-theme';
+@import '../../expansion/expansion-theme';
 @import '../../grid-list/grid-list-theme';
 @import '../../icon/icon-theme';
 @import '../../input/input-theme';
@@ -37,6 +38,7 @@
   @include mat-chips-theme($theme);
   @include mat-datepicker-theme($theme);
   @include mat-dialog-theme($theme);
+  @include mat-expansion-panel-theme($theme);
   @include mat-grid-list-theme($theme);
   @include mat-icon-theme($theme);
   @include mat-input-theme($theme);
diff --git a/src/lib/expansion/_expansion-theme.scss b/src/lib/expansion/_expansion-theme.scss
new file mode 100644
index 000000000000..2ed9552afdc4
--- /dev/null
+++ b/src/lib/expansion/_expansion-theme.scss
@@ -0,0 +1,32 @@
+@import '../core/theming/palette';
+@import '../core/theming/theming';
+
+@mixin mat-expansion-panel-theme($theme) {
+  $background: map-get($theme, background);
+  $foreground: map-get($theme, foreground);
+
+  .mat-expansion-panel {
+    background: mat-color($background, card);
+    color: mat-color($foreground, base);
+  }
+
+  .mat-action-row {
+    border-top-color: mat-color($foreground, divider);
+  }
+
+  .mat-expansion-panel-header:focus, 
+  .mat-expansion-panel-header:hover {
+    background: mat-color($background, hover);
+  }
+  .mat-expansion-panel-header-title {
+    color: mat-color($foreground, text);
+  }
+
+  .mat-expansion-panel-header-description {
+    color: mat-color($foreground, secondary-text);
+  }
+
+  .mat-expansion-indicator::after {
+    color: mat-color($foreground, secondary-text);
+  }
+}
\ No newline at end of file
diff --git a/src/lib/expansion/accordion-item.ts b/src/lib/expansion/accordion-item.ts
new file mode 100644
index 000000000000..95c57ee74126
--- /dev/null
+++ b/src/lib/expansion/accordion-item.ts
@@ -0,0 +1,72 @@
+import {Output, EventEmitter, Input, Injectable, OnDestroy, Optional} from '@angular/core';
+import {UniqueSelectionDispatcher} from '../core';
+import {CdkAccordion} from './accordion';
+
+/** Used to generate unique ID for each expansion panel. */
+let nextId = 0;
+
+/**
+ * An abstract class to be extended and decorated as a component.  Sets up all
+ * events and attributes needed to be managed by a CdkAccordion parent.
+ */
+@Injectable()
+export class AccordionItem implements OnDestroy {
+  /** Event emitted every time the MdAccordianChild is closed. */
+  @Output() closed = new EventEmitter<void>();
+  /** Event emitted every time the MdAccordianChild is opened. */
+  @Output() opened = new EventEmitter<void>();
+  /** Event emitted when the MdAccordianChild is destroyed. */
+  @Output() destroyed = new EventEmitter<void>();
+  /** The unique MdAccordianChild id. */
+  readonly id = `cdk-accordion-child-${nextId++}`;
+  /** Whether the MdAccordianChild is expanded. */
+  @Input() get expanded(): boolean { return this._expanded; }
+  set expanded(expanded: boolean) {
+    // Only emit events and update the internal value if the value changes.
+    if (this._expanded !== expanded) {
+      this._expanded = expanded;
+      if (expanded) {
+        this.opened.emit();
+        /**
+         * In the unique selection dispatcher, the id parameter is the id of the CdkAccordonItem,
+         * the name value is the id of the accordion.
+         */
+        let accordionId = this.accordion ? this.accordion.id : this.id;
+        this._expansionDispatcher.notify(this.id, accordionId);
+      } else {
+        this.closed.emit();
+      }
+    }
+  }
+  private _expanded: boolean;
+
+  constructor(@Optional() public accordion: CdkAccordion,
+              protected _expansionDispatcher: UniqueSelectionDispatcher) {
+     _expansionDispatcher.listen((id: string, accordionId: string) => {
+       if (this.accordion && !this.accordion.multi &&
+           this.accordion.id === accordionId && this.id !== id) {
+         this.expanded = false;
+       }
+     });
+    }
+
+  /** Emits an event for the accordion item being destroyed. */
+  ngOnDestroy() {
+    this.destroyed.emit();
+  }
+
+  /** Toggles the expanded state of the accordion item. */
+  toggle(): void {
+    this.expanded = !this.expanded;
+  }
+
+  /** Sets the expanded state of the accordion item to false. */
+  close(): void {
+    this.expanded = false;
+  }
+
+  /** Sets the expanded state of the accordion item to true. */
+  open(): void {
+    this.expanded = true;
+  }
+}
diff --git a/src/lib/expansion/accordion.spec.ts b/src/lib/expansion/accordion.spec.ts
new file mode 100644
index 000000000000..09e198eac768
--- /dev/null
+++ b/src/lib/expansion/accordion.spec.ts
@@ -0,0 +1,66 @@
+import {async, TestBed} from '@angular/core/testing';
+import {Component} from '@angular/core';
+import {By} from '@angular/platform-browser';
+import {BrowserAnimationsModule} from '@angular/platform-browser/animations';
+import {MdExpansionModule} from './index';
+
+
+describe('CdkAccordion', () => {
+  beforeEach(async(() => {
+    TestBed.configureTestingModule({
+      imports: [
+        BrowserAnimationsModule,
+        MdExpansionModule
+      ],
+      declarations: [
+        SetOfItems
+      ],
+    });
+    TestBed.compileComponents();
+  }));
+
+  it('should ensure only one item is expanded at a time', () => {
+    let fixture = TestBed.createComponent(SetOfItems);
+    let items = fixture.debugElement.queryAll(By.css('.mat-expansion-panel'));
+
+    fixture.componentInstance.firstPanelExpanded = true;
+    fixture.detectChanges();
+    expect(items[0].classes['mat-expanded']).toBeTruthy();
+    expect(items[1].classes['mat-expanded']).toBeFalsy();
+
+    fixture.componentInstance.secondPanelExpanded = true;
+    fixture.detectChanges();
+    expect(items[0].classes['mat-expanded']).toBeFalsy();
+    expect(items[1].classes['mat-expanded']).toBeTruthy();
+  });
+
+  it('should allow multiple items to be expanded simultaneously', () => {
+    let fixture = TestBed.createComponent(SetOfItems);
+    let panels = fixture.debugElement.queryAll(By.css('.mat-expansion-panel'));
+
+    fixture.componentInstance.multi = true;
+    fixture.componentInstance.firstPanelExpanded = true;
+    fixture.componentInstance.secondPanelExpanded = true;
+    fixture.detectChanges();
+    expect(panels[0].classes['mat-expanded']).toBeTruthy();
+    expect(panels[1].classes['mat-expanded']).toBeTruthy();
+  });
+});
+
+
+@Component({template: `
+  <md-accordion [multi]="multi">
+    <md-expansion-panel [expanded]="firstPanelExpanded">
+      <md-expansion-panel-header>Summary</md-expansion-panel-header>
+      <p>Content</p>
+    </md-expansion-panel>
+    <md-expansion-panel [expanded]="secondPanelExpanded">
+      <md-expansion-panel-header>Summary</md-expansion-panel-header>
+      <p>Content</p>
+    </md-expansion-panel>
+  </md-accordion>`})
+class SetOfItems {
+  multi: boolean = false;
+  firstPanelExpanded: boolean = false;
+  secondPanelExpanded: boolean = false;
+}
diff --git a/src/lib/expansion/accordion.ts b/src/lib/expansion/accordion.ts
new file mode 100644
index 000000000000..804887d3772f
--- /dev/null
+++ b/src/lib/expansion/accordion.ts
@@ -0,0 +1,50 @@
+import {Directive, Input} from '@angular/core';
+import {coerceBooleanProperty} from '../core/coercion/boolean-property';
+
+/** MdAccordion's display modes. */
+export type MdAccordionDisplayMode = 'default' | 'flat';
+
+/** Unique ID counter */
+let nextId = 0;
+
+/**
+ * Directive whose purpose is to manage the expanded state of CdkAccordionItem children.
+ */
+@Directive({
+  selector: '[cdk-accordion]',
+})
+export class CdkAccordion {
+  /** A readonly id value to use for unique selection coordination. */
+  readonly id = `cdk-accordion-${nextId++}`;
+
+  /** Whether the accordion should allow multiple expanded accordion items simulateously. */
+  @Input() get multi(): boolean { return this._multi; }
+  set multi(multi: boolean) { this._multi = coerceBooleanProperty(multi); }
+  private  _multi: boolean = false;
+
+  /** Whether the expansion indicator should be hidden. */
+  @Input() get hideToggle(): boolean { return this._hideToggle; }
+  set hideToggle(show: boolean) { this._hideToggle = coerceBooleanProperty(show); }
+  private  _hideToggle: boolean = false;
+
+  /**
+   * The display mode used for all expansion panels in the accordion. Currently two display
+   * modes exist:
+   *   default - a gutter-like spacing is placed around any expanded panel, placing the expanded
+   *     panel at a different elevation from the reset of the accordion.
+   *  flat - no spacing is placed around expanded panels, showing all panels at the same
+   *     elevation.
+   */
+  @Input() displayMode: MdAccordionDisplayMode = 'default';
+}
+
+/**
+ * Directive for a Material Design Accordion.
+ */
+@Directive({
+  selector: 'mat-accordion, md-accordion',
+  host: {
+    class: 'mat-accordion'
+  }
+})
+export class MdAccordion extends CdkAccordion {}
diff --git a/src/lib/expansion/expansion-panel-header.html b/src/lib/expansion/expansion-panel-header.html
new file mode 100644
index 000000000000..564a957bf803
--- /dev/null
+++ b/src/lib/expansion/expansion-panel-header.html
@@ -0,0 +1,7 @@
+<span class="mat-content">
+  <ng-content select="md-panel-title, mat-panel-title"></ng-content>
+  <ng-content select="md-panel-description, mat-panel-description"></ng-content>
+  <ng-content></ng-content>
+</span>
+<span [@indicatorRotate]="_getExpandedState()" *ngIf="!_getHideToggle()" 
+      class="mat-expansion-indicator"></span>
\ No newline at end of file
diff --git a/src/lib/expansion/expansion-panel-header.scss b/src/lib/expansion/expansion-panel-header.scss
new file mode 100644
index 000000000000..d88885d34396
--- /dev/null
+++ b/src/lib/expansion/expansion-panel-header.scss
@@ -0,0 +1,61 @@
+$mat-expansion-panel-header-height: 48px;
+$mat-expansion-panel-header-height-expanded: 64px;
+
+.mat-expansion-panel-header {
+  cursor: pointer;
+  display: flex;
+  flex-direction: row;
+  height: $mat-expansion-panel-header-height;
+  line-height: $mat-expansion-panel-header-height;
+  padding: 0 24px;
+
+  &.mat-expanded {
+    height: $mat-expansion-panel-header-height-expanded;
+    line-height: $mat-expansion-panel-header-height-expanded;
+  }
+
+  &:focus, 
+  &:hover {
+    outline: none;
+  }
+
+  &.mat-expanded:focus,
+  &.mat-expanded:hover, {
+    background: inherit;
+  }
+}
+
+.mat-content {
+  display: flex;
+  flex: 1;
+  flex-direction: row;
+  overflow: hidden;
+}
+
+.mat-expansion-panel-header-title {
+  display: flex;
+  flex-grow: 1;
+  font-size: 15px;
+  margin-right: 16px;
+}
+
+.mat-expansion-panel-header-description {
+  display: flex;
+  flex-grow: 2;
+  font-size: 15px;
+  margin-right: 16px;
+}
+
+/** 
+ * Creates the expansion indicator arrow. Done using ::after rather than having
+ * additional nodes in the template.
+ */
+.mat-expansion-indicator::after {
+  border-style: solid;
+  border-width: 0 2px 2px 0;
+  content: '';
+  display: inline-block;
+  padding: 3px;
+  transform: rotate(45deg);
+  vertical-align: middle;
+}
diff --git a/src/lib/expansion/expansion-panel-header.ts b/src/lib/expansion/expansion-panel-header.ts
new file mode 100644
index 000000000000..f3f631cb1038
--- /dev/null
+++ b/src/lib/expansion/expansion-panel-header.ts
@@ -0,0 +1,122 @@
+import {
+  Component,
+  Directive,
+  Host,
+  ViewEncapsulation,
+} from '@angular/core';
+import {
+  trigger,
+  state,
+  style,
+  transition,
+  animate,
+} from '@angular/animations';
+import {SPACE, ENTER} from '../core/keyboard/keycodes';
+import {MdExpansionPanel, EXPANSION_PANEL_ANIMATION_TIMING} from './expansion-panel';
+
+
+/**
+ * <md-expansion-panel-header> component.
+ *
+ * This component corresponds to the header element of an <md-expansion-panel>.
+ *
+ * Please refer to README.md for examples on how to use it.
+ */
+@Component({
+  moduleId: module.id,
+  selector: 'md-expansion-panel-header, mat-expansion-panel-header',
+  styleUrls: ['./expansion-panel-header.css'],
+  templateUrl: './expansion-panel-header.html',
+  encapsulation: ViewEncapsulation.None,
+  host: {
+    'class': 'mat-expansion-panel-header',
+    'role': 'button',
+    'tabindex': '0',
+    '[attr.aria-controls]': '_getPanelId()',
+    '[attr.aria-expanded]': '_isExpanded()',
+    '[class.mat-expanded]': '_isExpanded()',
+    '(click)': '_toggle()',
+    '(keyup)': '_keyup($event)',
+    '[@expansionHeight]': '_getExpandedState()',
+  },
+  animations: [
+    trigger('indicatorRotate', [
+      state('collapsed', style({transform: 'rotate(0deg)'})),
+      state('expanded', style({transform: 'rotate(180deg)'})),
+      transition('expanded <=> collapsed', animate(EXPANSION_PANEL_ANIMATION_TIMING)),
+    ]),
+    trigger('expansionHeight', [
+      state('collapsed', style({height: '48px', 'line-height': '48px'})),
+      state('expanded', style({height: '64px', 'line-height': '68px'})),
+      transition('expanded <=> collapsed', animate(EXPANSION_PANEL_ANIMATION_TIMING)),
+    ]),
+  ],
+})
+export class MdExpansionPanelHeader {
+  constructor(@Host() public panel: MdExpansionPanel) {}
+
+  /** Toggles the expanded state of the panel. */
+  _toggle(event?: KeyboardEvent): void {
+    this.panel.toggle();
+  }
+
+  /** Gets whether the panel is expanded. */
+  _isExpanded(): boolean {
+    return this.panel.expanded;
+  }
+
+  /** Gets the expanded state string of the panel. */
+  _getExpandedState(): string {
+    return this.panel._getExpandedState();
+  }
+
+  /** Gets the panel id. */
+  _getPanelId(): string {
+    return this.panel.id;
+  }
+
+  /** Gets whether the expand indicator is hidden. */
+  _getHideToggle(): boolean {
+    return this.panel.hideToggle;
+  }
+
+  /** Handle keyup event calling to toggle() if appropriate. */
+  _keyup(event: KeyboardEvent) {
+    switch (event.keyCode) {
+      // Toggle for space and enter keys.
+      case SPACE:
+      case ENTER:
+        event.preventDefault();
+        this._toggle();
+        break;
+      default:
+        return;
+    }
+  }
+}
+
+/**
+ * <md-panel-description> directive.
+ *
+ * This direction is to be used inside of the MdExpansionPanelHeader component.
+ */
+@Directive({
+  selector: 'md-panel-description, mat-panel-description',
+  host : {
+    class: 'mat-expansion-panel-header-description'
+  }
+})
+export class MdExpansionPanelDescription {}
+
+/**
+ * <md-panel-title> directive.
+ *
+ * This direction is to be used inside of the MdExpansionPanelHeader component.
+ */
+@Directive({
+  selector: 'md-panel-title, mat-panel-title',
+  host : {
+    class: 'mat-expansion-panel-header-title'
+  }
+})
+export class MdExpansionPanelTitle {}
diff --git a/src/lib/expansion/expansion-panel.html b/src/lib/expansion/expansion-panel.html
new file mode 100644
index 000000000000..25422ebc6f70
--- /dev/null
+++ b/src/lib/expansion/expansion-panel.html
@@ -0,0 +1,8 @@
+<ng-content select="mat-expansion-panel-header, md-expansion-panel-header"></ng-content>
+<div [class.mat-expanded]="expanded" class="mat-expansion-panel-content"
+     [@bodyExpansion]="_getExpandedState()" [id]="id">
+  <div class="mat-expansion-panel-body">
+    <ng-content></ng-content>
+  </div>
+  <ng-content select="mat-action-row, md-action-row"></ng-content>
+</div>
\ No newline at end of file
diff --git a/src/lib/expansion/expansion-panel.scss b/src/lib/expansion/expansion-panel.scss
new file mode 100644
index 000000000000..0a258ad43037
--- /dev/null
+++ b/src/lib/expansion/expansion-panel.scss
@@ -0,0 +1,33 @@
+@import '../core/style/variables';
+@import '../core/style/elevation';
+
+.mat-expansion-panel {
+  @include mat-elevation-transition;
+  box-sizing: content-box;
+  display: block;
+
+  &:not([class*='mat-elevation-z']) {
+    @include mat-elevation(2);
+  }
+}
+
+.mat-expansion-panel-content {
+  overflow: hidden;
+}
+
+.mat-expansion-panel-body {
+  padding: 0 24px 16px;
+}
+
+.mat-action-row {
+  border-top-style: solid;
+  border-top-width: 1px;
+  display: flex;
+  flex-direction: row;
+  justify-content: flex-end;
+  padding: 16px 8px 16px 24px;
+
+  button.mat-button {
+    margin-left: 8px;
+  }
+}
\ No newline at end of file
diff --git a/src/lib/expansion/expansion-panel.ts b/src/lib/expansion/expansion-panel.ts
new file mode 100644
index 000000000000..7c7c960c8a48
--- /dev/null
+++ b/src/lib/expansion/expansion-panel.ts
@@ -0,0 +1,106 @@
+import {
+  Component,
+  Directive,
+  Host,
+  Input,
+  ViewEncapsulation,
+  Optional,
+  forwardRef,
+} from '@angular/core';
+import {
+  trigger,
+  state,
+  style,
+  transition,
+  animate,
+} from '@angular/animations';
+import {MdAccordion, MdAccordionDisplayMode} from './accordion';
+import {AccordionItem} from './accordion-item';
+import {UniqueSelectionDispatcher} from '../core';
+
+
+/** MdExpansionPanel's states. */
+export type MdExpansionPanelState = 'expanded' | 'collapsed';
+
+/** Time and timing curve for expansion panel animations. */
+export const EXPANSION_PANEL_ANIMATION_TIMING = '225ms cubic-bezier(0.4,0.0,0.2,1)';
+
+/**
+ * <md-expansion-panel> component.
+ *
+ * This component can be used as a single element to show expandable content, or as one of
+ * multiple children of an element with the CdkAccordion directive attached.
+ *
+ * Please refer to README.md for examples on how to use it.
+ */
+@Component({
+  moduleId: module.id,
+  styleUrls: ['./expansion-panel.css'],
+  selector: 'md-expansion-panel, mat-expansion-panel',
+  templateUrl: './expansion-panel.html',
+  encapsulation: ViewEncapsulation.None,
+  host: {
+    'class': 'mat-expansion-panel',
+    '[class.mat-expanded]': 'expanded',
+    '[@displayMode]': '_getDisplayMode()',
+  },
+  providers: [
+    {provide: AccordionItem, useExisting: forwardRef(() => MdExpansionPanel)}
+  ],
+  animations: [
+    trigger('bodyExpansion', [
+      state('collapsed', style({height: '0px'})),
+      state('expanded', style({height: '*'})),
+      transition('expanded <=> collapsed', animate(EXPANSION_PANEL_ANIMATION_TIMING)),
+    ]),
+    trigger('displayMode', [
+      state('collapsed', style({margin: '0'})),
+      state('default', style({margin: '16px 0'})),
+      state('flat', style({margin: '0'})),
+      transition('flat <=> collapsed, default <=> collapsed, flat <=> default',
+                 animate(EXPANSION_PANEL_ANIMATION_TIMING)),
+    ]),
+  ],
+})
+export class MdExpansionPanel extends AccordionItem {
+  /** Whether the toggle indicator should be hidden. */
+  @Input() hideToggle: boolean = false;
+
+  constructor(@Optional() @Host() accordion: MdAccordion,
+              _uniqueSelectionDispatcher: UniqueSelectionDispatcher) {
+    super(accordion, _uniqueSelectionDispatcher);
+    this.accordion = accordion;
+  }
+
+  /** Whether the expansion indicator should be hidden. */
+  _getHideToggle(): boolean {
+    if (this.accordion) {
+      return this.accordion.hideToggle;
+    }
+    return this.hideToggle;
+  }
+
+  /** Gets the panel's display mode. */
+  _getDisplayMode(): MdAccordionDisplayMode | MdExpansionPanelState {
+    if (!this.expanded) {
+      return this._getExpandedState();
+    }
+    if (this.accordion) {
+      return this.accordion.displayMode;
+    }
+    return this._getExpandedState();
+  }
+
+  /** Gets the expanded state string. */
+  _getExpandedState(): MdExpansionPanelState {
+    return this.expanded ? 'expanded' : 'collapsed';
+  }
+}
+
+@Directive({
+  selector: 'mat-action-row, md-action-row',
+  host: {
+    class: 'mat-action-row'
+  }
+})
+export class MdExpansionPanelActionRow {}
diff --git a/src/lib/expansion/expansion.spec.ts b/src/lib/expansion/expansion.spec.ts
new file mode 100644
index 000000000000..e6f53a7d6437
--- /dev/null
+++ b/src/lib/expansion/expansion.spec.ts
@@ -0,0 +1,73 @@
+import {async, TestBed} from '@angular/core/testing';
+import {Component} from '@angular/core';
+import {By} from '@angular/platform-browser';
+import {BrowserAnimationsModule} from '@angular/platform-browser/animations';
+import {MdExpansionModule} from './index';
+
+
+describe('MdExpansionPanel', () => {
+  beforeEach(async(() => {
+    TestBed.configureTestingModule({
+      imports: [
+        BrowserAnimationsModule,
+        MdExpansionModule
+      ],
+      declarations: [
+        PanelWithContent
+      ],
+    });
+    TestBed.compileComponents();
+  }));
+
+  it('should expanded and collapse the panel', () => {
+    let fixture = TestBed.createComponent(PanelWithContent);
+    let contentEl = fixture.debugElement.query(By.css('.mat-expansion-panel-content'));
+    let headerEl = fixture.debugElement.query(By.css('.mat-expansion-panel-header'));
+    fixture.detectChanges();
+    expect(headerEl.classes['mat-expanded']).toBeFalsy();
+    expect(contentEl.classes['mat-expanded']).toBeFalsy();
+
+    fixture.componentInstance.expanded = true;
+    fixture.detectChanges();
+    expect(headerEl.classes['mat-expanded']).toBeTruthy();
+    expect(contentEl.classes['mat-expanded']).toBeTruthy();
+  });
+
+  it('emit correct events for change in panel expanded state', () => {
+    let fixture = TestBed.createComponent(PanelWithContent);
+    fixture.componentInstance.expanded = true;
+    fixture.detectChanges();
+    expect(fixture.componentInstance.openCallback).toHaveBeenCalled();
+
+    fixture.componentInstance.expanded = false;
+    fixture.detectChanges();
+    expect(fixture.componentInstance.closeCallback).toHaveBeenCalled();
+  });
+
+  it('creates a unique panel id for each panel', () => {
+    let fixtureOne = TestBed.createComponent(PanelWithContent);
+    let headerElOne = fixtureOne.nativeElement.querySelector('.mat-expansion-panel-header');
+    let fixtureTwo = TestBed.createComponent(PanelWithContent);
+    let headerElTwo = fixtureTwo.nativeElement.querySelector('.mat-expansion-panel-header');
+    fixtureOne.detectChanges();
+    fixtureTwo.detectChanges();
+
+    let panelIdOne = headerElOne.getAttribute('aria-controls');
+    let panelIdTwo = headerElTwo.getAttribute('aria-controls');
+    expect(panelIdOne).not.toBe(panelIdTwo);
+  });
+});
+
+
+@Component({template: `
+  <md-expansion-panel [expanded]="expanded"
+                      (opened)="openCallback()"
+                      (closed)="closeCallback()">
+    <md-expansion-panel-header>Panel Title</md-expansion-panel-header>
+    <p>Some content</p>
+  </md-expansion-panel>`})
+class PanelWithContent {
+  expanded: boolean = false;
+  openCallback = jasmine.createSpy('openCallback');
+  closeCallback = jasmine.createSpy('closeCallback');
+}
diff --git a/src/lib/expansion/index.ts b/src/lib/expansion/index.ts
new file mode 100644
index 000000000000..9dbeb268a2e1
--- /dev/null
+++ b/src/lib/expansion/index.ts
@@ -0,0 +1,57 @@
+import {NgModule, ModuleWithProviders} from '@angular/core';
+import {CommonModule} from '@angular/common';
+import {CompatibilityModule, UNIQUE_SELECTION_DISPATCHER_PROVIDER} from '../core';
+import {
+  MdExpansionPanelHeader,
+  MdExpansionPanelDescription,
+  MdExpansionPanelTitle
+} from './expansion-panel-header';
+import {
+  MdExpansionPanel,
+  MdExpansionPanelActionRow,
+} from './expansion-panel';
+import {
+  CdkAccordion,
+  MdAccordion,
+} from './accordion';
+
+@NgModule({
+  imports: [CompatibilityModule, CommonModule],
+  exports: [
+    CdkAccordion,
+    MdAccordion,
+    MdExpansionPanel,
+    MdExpansionPanelActionRow,
+    MdExpansionPanelHeader,
+    MdExpansionPanelTitle,
+    MdExpansionPanelDescription
+  ],
+  declarations: [
+    CdkAccordion,
+    MdAccordion,
+    MdExpansionPanel,
+    MdExpansionPanelActionRow,
+    MdExpansionPanelHeader,
+    MdExpansionPanelTitle,
+    MdExpansionPanelDescription
+  ],
+  providers: [UNIQUE_SELECTION_DISPATCHER_PROVIDER]
+})
+export class MdExpansionModule {}
+
+export {
+  CdkAccordion,
+  MdAccordion,
+  MdAccordionDisplayMode
+} from './accordion';
+export {AccordionItem} from './accordion-item';
+export {
+  MdExpansionPanel,
+  MdExpansionPanelState,
+  MdExpansionPanelActionRow
+} from './expansion-panel';
+export {
+  MdExpansionPanelHeader,
+  MdExpansionPanelDescription,
+  MdExpansionPanelTitle
+} from './expansion-panel-header';
diff --git a/src/lib/module.ts b/src/lib/module.ts
index 255ba9b5d200..2041b0d2c7e5 100644
--- a/src/lib/module.ts
+++ b/src/lib/module.ts
@@ -37,6 +37,7 @@ import {MdAutocompleteModule} from './autocomplete/index';
 import {StyleModule} from './core/style/index';
 import {MdDatepickerModule} from './datepicker/index';
 import {CdkDataTableModule} from './core/data-table/index';
+import {MdExpansionModule} from './expansion/index';
 
 const MATERIAL_MODULES = [
   MdAutocompleteModule,
@@ -47,6 +48,7 @@ const MATERIAL_MODULES = [
   MdCheckboxModule,
   MdDatepickerModule,
   MdDialogModule,
+  MdExpansionModule,
   MdGridListModule,
   MdIconModule,
   MdInputModule,
diff --git a/src/lib/public_api.ts b/src/lib/public_api.ts
index 7eeeb82012d1..1a7a77478014 100644
--- a/src/lib/public_api.ts
+++ b/src/lib/public_api.ts
@@ -16,6 +16,7 @@ export * from './checkbox/index';
 export * from './core/data-table/index';
 export * from './datepicker/index';
 export * from './dialog/index';
+export * from './expansion/index';
 export * from './grid-list/index';
 export * from './icon/index';
 export * from './input/index';
diff --git a/tools/gulp/packaging/rollup-helpers.ts b/tools/gulp/packaging/rollup-helpers.ts
index cbed6e3fc58f..15e37c06d9da 100644
--- a/tools/gulp/packaging/rollup-helpers.ts
+++ b/tools/gulp/packaging/rollup-helpers.ts
@@ -24,6 +24,10 @@ const ROLLUP_GLOBALS = {
   '@angular/cdk': 'ng.cdk',
 
   // Rxjs dependencies
+  'rxjs/BehaviorSubject': 'Rx',
+  'rxjs/Observable': 'Rx',
+  'rxjs/Subject': 'Rx',
+  'rxjs/Subscription': 'Rx',
   'rxjs/add/observable/combineLatest': 'Rx.Observable',
   'rxjs/add/observable/forkJoin': 'Rx.Observable',
   'rxjs/add/observable/fromEvent': 'Rx.Observable',
@@ -44,11 +48,6 @@ const ROLLUP_GLOBALS = {
   'rxjs/add/operator/switchMap': 'Rx.Observable.prototype',
   'rxjs/add/operator/takeUntil': 'Rx.Observable.prototype',
   'rxjs/add/operator/toPromise': 'Rx.Observable.prototype',
-  'rxjs/BehaviorSubject': 'Rx',
-  'rxjs/Observable': 'Rx',
-  'rxjs/Subject': 'Rx',
-  'rxjs/Subscription': 'Rx',
-
 };
 
 export type BundleConfig = {