diff --git a/src/lib/expansion/accordion-item.ts b/src/lib/expansion/accordion-item.ts
index 107f799c2377..785a79755f71 100644
--- a/src/lib/expansion/accordion-item.ts
+++ b/src/lib/expansion/accordion-item.ts
@@ -35,8 +35,10 @@ export class AccordionItem implements OnDestroy {
   @Output() destroyed = new EventEmitter<void>();
   /** The unique MdAccordionChild id. */
   readonly id = `cdk-accordion-child-${nextId++}`;
+
   /** Whether the MdAccordionChild is expanded. */
-  @Input() get expanded(): boolean { return this._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) {
diff --git a/src/lib/expansion/expansion-panel-header.ts b/src/lib/expansion/expansion-panel-header.ts
index 1ca826cd5f68..18d7311e7bec 100644
--- a/src/lib/expansion/expansion-panel-header.ts
+++ b/src/lib/expansion/expansion-panel-header.ts
@@ -12,6 +12,8 @@ import {
   Host,
   ViewEncapsulation,
   ChangeDetectionStrategy,
+  ChangeDetectorRef,
+  OnDestroy,
 } from '@angular/core';
 import {
   trigger,
@@ -22,6 +24,9 @@ import {
 } from '@angular/animations';
 import {SPACE, ENTER} from '../core/keyboard/keycodes';
 import {MdExpansionPanel, EXPANSION_PANEL_ANIMATION_TIMING} from './expansion-panel';
+import {filter} from '../core/rxjs/index';
+import {merge} from 'rxjs/observable/merge';
+import {Subscription} from 'rxjs/Subscription';
 
 
 /**
@@ -62,8 +67,22 @@ import {MdExpansionPanel, EXPANSION_PANEL_ANIMATION_TIMING} from './expansion-pa
     ]),
   ],
 })
-export class MdExpansionPanelHeader {
-  constructor(@Host() public panel: MdExpansionPanel) {}
+export class MdExpansionPanelHeader implements OnDestroy {
+  private _parentChangeSubscription: Subscription | null = null;
+
+  constructor(
+    @Host() public panel: MdExpansionPanel,
+    private _changeDetectorRef: ChangeDetectorRef) {
+
+    // Since the toggle state depends on an @Input on the panel, we
+    // need to  subscribe and trigger change detection manually.
+    this._parentChangeSubscription = merge(
+      panel.opened,
+      panel.closed,
+      filter.call(panel._inputChanges, changes => !!changes.hideToggle)
+    )
+    .subscribe(() => this._changeDetectorRef.markForCheck());
+  }
 
   /** Toggles the expanded state of the panel. */
   _toggle(): void {
@@ -103,6 +122,13 @@ export class MdExpansionPanelHeader {
         return;
     }
   }
+
+  ngOnDestroy() {
+    if (this._parentChangeSubscription) {
+      this._parentChangeSubscription.unsubscribe();
+      this._parentChangeSubscription = null;
+    }
+  }
 }
 
 /**
diff --git a/src/lib/expansion/expansion-panel.ts b/src/lib/expansion/expansion-panel.ts
index 4b2b83717187..33cf4babd66d 100644
--- a/src/lib/expansion/expansion-panel.ts
+++ b/src/lib/expansion/expansion-panel.ts
@@ -16,6 +16,9 @@ import {
   forwardRef,
   ChangeDetectionStrategy,
   ChangeDetectorRef,
+  SimpleChanges,
+  OnChanges,
+  OnDestroy,
 } from '@angular/core';
 import {
   trigger,
@@ -27,6 +30,7 @@ import {
 import {MdAccordion, MdAccordionDisplayMode} from './accordion';
 import {AccordionItem} from './accordion-item';
 import {UniqueSelectionDispatcher} from '../core';
+import {Subject} from 'rxjs/Subject';
 
 
 /** MdExpansionPanel's states. */
@@ -72,10 +76,13 @@ export const EXPANSION_PANEL_ANIMATION_TIMING = '225ms cubic-bezier(0.4,0.0,0.2,
     ]),
   ],
 })
-export class MdExpansionPanel extends AccordionItem {
+export class MdExpansionPanel extends AccordionItem implements OnChanges, OnDestroy {
   /** Whether the toggle indicator should be hidden. */
   @Input() hideToggle: boolean = false;
 
+  /** Stream that emits for changes in `@Input` properties. */
+  _inputChanges = new Subject<SimpleChanges>();
+
   constructor(@Optional() @Host() accordion: MdAccordion,
               _changeDetectorRef: ChangeDetectorRef,
               _uniqueSelectionDispatcher: UniqueSelectionDispatcher) {
@@ -104,6 +111,14 @@ export class MdExpansionPanel extends AccordionItem {
   _getExpandedState(): MdExpansionPanelState {
     return this.expanded ? 'expanded' : 'collapsed';
   }
+
+  ngOnChanges(changes: SimpleChanges) {
+    this._inputChanges.next(changes);
+  }
+
+  ngOnDestroy() {
+    this._inputChanges.complete();
+  }
 }
 
 @Directive({
diff --git a/src/lib/expansion/expansion.spec.ts b/src/lib/expansion/expansion.spec.ts
index 89e4470958af..67c1b2363007 100644
--- a/src/lib/expansion/expansion.spec.ts
+++ b/src/lib/expansion/expansion.spec.ts
@@ -103,12 +103,47 @@ describe('MdExpansionPanel', () => {
     expect(styles.marginLeft).toBe('37px');
     expect(styles.marginRight).toBe('37px');
   }));
+
+  it('should be able to hide the toggle', () => {
+    const fixture = TestBed.createComponent(PanelWithContent);
+    const header = fixture.debugElement.query(By.css('.mat-expansion-panel-header')).nativeElement;
+
+    fixture.detectChanges();
+
+    expect(header.querySelector('.mat-expansion-indicator'))
+        .toBeTruthy('Expected indicator to be shown.');
+
+    fixture.componentInstance.hideToggle = true;
+    fixture.detectChanges();
+
+    expect(header.querySelector('.mat-expansion-indicator'))
+        .toBeFalsy('Expected indicator to be hidden.');
+  });
+
+  it('should update the indicator rotation when the expanded state is toggled programmatically',
+    fakeAsync(() => {
+      const fixture = TestBed.createComponent(PanelWithContent);
+
+      fixture.detectChanges();
+      tick(250);
+
+      const arrow = fixture.debugElement.query(By.css('.mat-expansion-indicator')).nativeElement;
+
+      expect(arrow.style.transform).toBe('rotate(0deg)', 'Expected no rotation.');
+
+      fixture.componentInstance.expanded = true;
+      fixture.detectChanges();
+      tick(250);
+
+      expect(arrow.style.transform).toBe('rotate(180deg)', 'Expected 180 degree rotation.');
+    }));
 });
 
 
 @Component({
   template: `
   <md-expansion-panel [expanded]="expanded"
+                      [hideToggle]="hideToggle"
                       (opened)="openCallback()"
                       (closed)="closeCallback()">
     <md-expansion-panel-header>Panel Title</md-expansion-panel-header>
@@ -118,6 +153,7 @@ describe('MdExpansionPanel', () => {
 })
 class PanelWithContent {
   expanded: boolean = false;
+  hideToggle: boolean = false;
   openCallback = jasmine.createSpy('openCallback');
   closeCallback = jasmine.createSpy('closeCallback');
 }