diff --git a/src/lib/menu/menu-directive.ts b/src/lib/menu/menu-directive.ts
index e4edc8d6e801..b611f415fe4c 100644
--- a/src/lib/menu/menu-directive.ts
+++ b/src/lib/menu/menu-directive.ts
@@ -1,5 +1,3 @@
-// TODO(kara): prevent-close functionality
-
 import {
   AfterContentInit,
   Component,
@@ -20,7 +18,7 @@ import {FocusKeyManager} from '../core/a11y/focus-key-manager';
 import {MdMenuPanel} from './menu-panel';
 import {Subscription} from 'rxjs/Subscription';
 import {transformMenu, fadeInItems} from './menu-animations';
-import {ESCAPE} from '../core/keyboard/keycodes';
+import {ESCAPE, coerceBooleanProperty} from '../core';
 
 
 @Component({
@@ -77,6 +75,12 @@ export class MdMenu implements AfterContentInit, MdMenuPanel, OnDestroy {
   /** Whether the menu should overlap its trigger. */
   @Input() overlapTrigger = true;
 
+  /** Whether the user should be able to close the menu. */
+  @Input()
+  get disableClose(): boolean { return this._disableClose; }
+  set disableClose(value: boolean) { this._disableClose = coerceBooleanProperty(value); }
+  private _disableClose: boolean = false;
+
   /**
    * This method takes classes set on the host md-menu element and applies them on the
    * menu template that displays in the overlay container.  Otherwise, it's difficult
@@ -97,7 +101,10 @@ export class MdMenu implements AfterContentInit, MdMenuPanel, OnDestroy {
 
   ngAfterContentInit() {
     this._keyManager = new FocusKeyManager(this.items).withWrap();
-    this._tabSubscription = this._keyManager.tabOut.subscribe(() => this._emitCloseEvent());
+
+    if (!this._disableClose) {
+      this._tabSubscription = this._keyManager.tabOut.subscribe(() => this._emitCloseEvent());
+    }
   }
 
   ngOnDestroy() {
@@ -108,12 +115,17 @@ export class MdMenu implements AfterContentInit, MdMenuPanel, OnDestroy {
 
   /** Handle a keyboard event from the menu, delegating to the appropriate action. */
   _handleKeydown(event: KeyboardEvent) {
-    switch (event.keyCode) {
-      case ESCAPE:
-        this._emitCloseEvent();
-        return;
-      default:
-        this._keyManager.onKeydown(event);
+    if (event.keyCode === ESCAPE && !this._disableClose) {
+      this._emitCloseEvent();
+    } else {
+      this._keyManager.onKeydown(event);
+    }
+  }
+
+  /** Handles clicks inside the menu panel. */
+  _handleClick() {
+    if (!this._disableClose) {
+      this._emitCloseEvent();
     }
   }
 
diff --git a/src/lib/menu/menu-panel.ts b/src/lib/menu/menu-panel.ts
index 82fab04e19d5..4a0b232c4055 100644
--- a/src/lib/menu/menu-panel.ts
+++ b/src/lib/menu/menu-panel.ts
@@ -7,6 +7,7 @@ export interface MdMenuPanel {
   overlapTrigger: boolean;
   templateRef: TemplateRef<any>;
   close: EventEmitter<void>;
+  disableClose: boolean;
   focusFirstItem: () => void;
   setPositionClasses: (x: MenuPositionX, y: MenuPositionY) => void;
   _emitCloseEvent: () => void;
diff --git a/src/lib/menu/menu-trigger.ts b/src/lib/menu/menu-trigger.ts
index 22e5240d72d0..11b8fe69118f 100644
--- a/src/lib/menu/menu-trigger.ts
+++ b/src/lib/menu/menu-trigger.ts
@@ -112,8 +112,11 @@ export class MdMenuTrigger implements AfterViewInit, OnDestroy {
   closeMenu(): void {
     if (this._overlayRef) {
       this._overlayRef.detach();
-      this._backdropSubscription.unsubscribe();
       this._resetMenu();
+
+      if (this._backdropSubscription) {
+        this._backdropSubscription.unsubscribe();
+      }
     }
   }
 
@@ -144,9 +147,11 @@ export class MdMenuTrigger implements AfterViewInit, OnDestroy {
    * explicitly when the menu is closed or destroyed.
    */
   private _subscribeToBackdrop(): void {
-    this._backdropSubscription = this._overlayRef.backdropClick().subscribe(() => {
-      this.menu._emitCloseEvent();
-    });
+    if (!this.menu.disableClose) {
+      this._backdropSubscription = this._overlayRef.backdropClick().subscribe(() => {
+        this.menu._emitCloseEvent();
+      });
+    }
   }
 
   /**
diff --git a/src/lib/menu/menu.html b/src/lib/menu/menu.html
index 10972059e8c5..4e8839130a10 100644
--- a/src/lib/menu/menu.html
+++ b/src/lib/menu/menu.html
@@ -1,9 +1,8 @@
 <ng-template>
   <div class="mat-menu-panel" [ngClass]="_classList" (keydown)="_handleKeydown($event)"
-    (click)="_emitCloseEvent()" [@transformMenu]="'showing'">
+    (click)="_handleClick()" [@transformMenu]="'showing'">
     <div class="mat-menu-content" [@fadeInItems]="'showing'">
       <ng-content></ng-content>
     </div>
   </div>
 </ng-template>
-
diff --git a/src/lib/menu/menu.spec.ts b/src/lib/menu/menu.spec.ts
index 18e327753363..34145e9ad4f2 100644
--- a/src/lib/menu/menu.spec.ts
+++ b/src/lib/menu/menu.spec.ts
@@ -20,7 +20,7 @@ import {
 import {OverlayContainer} from '../core/overlay/overlay-container';
 import {Dir, LayoutDirection} from '../core/rtl/dir';
 import {extendObject} from '../core/util/object-extend';
-import {ESCAPE} from '../core/keyboard/keycodes';
+import {ESCAPE, TAB} from '../core/keyboard/keycodes';
 import {dispatchKeyboardEvent} from '../core/testing/dispatch-events';
 
 
@@ -457,12 +457,70 @@ describe('MdMenu', () => {
       expect(fixture.destroy.bind(fixture)).not.toThrow();
     });
   });
+
+  describe('disableClose', () => {
+    let fixture: ComponentFixture<SimpleMenu>;
+
+    beforeEach(() => {
+      fixture = TestBed.createComponent(SimpleMenu);
+      fixture.componentInstance.disableClose = true;
+      fixture.detectChanges();
+      fixture.componentInstance.trigger.openMenu();
+    });
+
+    it('should not close when pressing ESCAPE', () => {
+      const panel = overlayContainerElement.querySelector('.mat-menu-panel');
+
+      dispatchKeyboardEvent(panel, 'keydown', ESCAPE);
+      fixture.detectChanges();
+
+      expect(overlayContainerElement.querySelector('.mat-menu-panel')).toBeTruthy();
+    });
+
+    it('should not close when pressing TAB', () => {
+      const panel = overlayContainerElement.querySelector('.mat-menu-panel');
+
+      dispatchKeyboardEvent(panel, 'keydown', TAB);
+      fixture.detectChanges();
+
+      expect(overlayContainerElement.querySelector('.mat-menu-panel')).toBeTruthy();
+    });
+
+    it('should not close when clicking on the backdrop', () => {
+      const backdrop = overlayContainerElement.querySelector('.cdk-overlay-backdrop');
+
+      (backdrop as HTMLElement).click();
+      fixture.detectChanges();
+
+      expect(overlayContainerElement.querySelector('.mat-menu-panel')).toBeTruthy();
+    });
+
+    it('should not close when clicking inside the panel', () => {
+      const panel = overlayContainerElement.querySelector('.mat-menu-panel') as HTMLElement;
+
+      panel.click();
+      fixture.detectChanges();
+
+      expect(overlayContainerElement.querySelector('.mat-menu-panel')).toBeTruthy();
+    });
+
+    it('should still be able to close programmatically', () => {
+      expect(overlayContainerElement.querySelector('.mat-menu-panel')).toBeTruthy();
+
+      fixture.componentInstance.trigger.closeMenu();
+      fixture.detectChanges();
+
+      expect(overlayContainerElement.querySelector('.mat-menu-panel')).toBeFalsy();
+    });
+
+  });
+
 });
 
 @Component({
   template: `
     <button [mdMenuTriggerFor]="menu" #triggerEl>Toggle menu</button>
-    <md-menu #menu="mdMenu" (close)="closeCallback()">
+    <md-menu #menu="mdMenu" (close)="closeCallback()" [disableClose]="disableClose">
       <button md-menu-item> Item </button>
       <button md-menu-item disabled> Disabled </button>
     </md-menu>
@@ -472,6 +530,7 @@ class SimpleMenu {
   @ViewChild(MdMenuTrigger) trigger: MdMenuTrigger;
   @ViewChild('triggerEl') triggerEl: ElementRef;
   closeCallback = jasmine.createSpy('menu closed callback');
+  disableClose = false;
 }
 
 @Component({
@@ -520,7 +579,8 @@ class OverlapMenu implements TestableMenu {
 class CustomMenuPanel implements MdMenuPanel {
   xPosition: MenuPositionX = 'after';
   yPosition: MenuPositionY = 'below';
-  overlapTrigger: true;
+  overlapTrigger = true;
+  disableClose = false;
 
   @ViewChild(TemplateRef) templateRef: TemplateRef<any>;
   @Output() close = new EventEmitter<void>();