diff --git a/src/components/sidenav/sidenav.js b/src/components/sidenav/sidenav.js
index cbd2a4ccbb3..4005b782624 100644
--- a/src/components/sidenav/sidenav.js
+++ b/src/components/sidenav/sidenav.js
@@ -249,8 +249,7 @@ function SidenavDirective($mdMedia, $mdUtil, $mdConstant, $mdTheming, $animate,
     },
     controller: '$mdSidenavController',
     compile: function(element) {
-      element.addClass('md-closed');
-      element.attr('tabIndex', '-1');
+      element.addClass('md-closed').attr('tabIndex', '-1');
       return postLink;
     }
   };
@@ -481,9 +480,8 @@ function SidenavDirective($mdMedia, $mdUtil, $mdConstant, $mdTheming, $animate,
  * @ngdoc controller
  * @name SidenavController
  * @module material.components.sidenav
- *
  */
-function SidenavController($scope, $element, $attrs, $mdComponentRegistry, $q) {
+function SidenavController($scope, $attrs, $mdComponentRegistry, $q, $interpolate) {
 
   var self = this;
 
@@ -505,5 +503,21 @@ function SidenavController($scope, $element, $attrs, $mdComponentRegistry, $q) {
   self.toggle = function() { return self.$toggleOpen( !$scope.isOpen );  };
   self.$toggleOpen = function(value) { return $q.when($scope.isOpen = value); };
 
-  self.destroy = $mdComponentRegistry.register(self, $attrs.mdComponentId);
+  // Evaluate the component id.
+  var rawId = $attrs.mdComponentId;
+  var hasDataBinding = rawId && rawId.indexOf($interpolate.startSymbol()) > -1;
+  var componentId = hasDataBinding ? $interpolate(rawId)($scope.$parent) : rawId;
+
+  // Register the component.
+  self.destroy = $mdComponentRegistry.register(self, componentId);
+
+  // Watch and update the component, if the id has changed.
+  if (hasDataBinding) {
+    $attrs.$observe('mdComponentId', function(id) {
+      if (id && id !== self.$$mdHandle) {
+        self.destroy(); // `destroy` only deregisters the old component id so we can add the new one.
+        self.destroy = $mdComponentRegistry.register(self, id);
+      }
+    });
+  }
 }
diff --git a/src/components/sidenav/sidenav.spec.js b/src/components/sidenav/sidenav.spec.js
index 3449a94e61d..3ea49b15717 100644
--- a/src/components/sidenav/sidenav.spec.js
+++ b/src/components/sidenav/sidenav.spec.js
@@ -1,14 +1,14 @@
 describe('mdSidenav', function() {
   beforeEach(module('material.components.sidenav'));
 
-  function setup(attrs) {
+  function setup(attrs, skipInitialDigest) {
     var el;
     inject(function($compile, $rootScope) {
       var parent = angular.element('<div>');
       el = angular.element('<md-sidenav ' + (attrs || '') + '>');
       parent.append(el);
       $compile(parent)($rootScope);
-      $rootScope.$apply();
+      !skipInitialDigest && $rootScope.$apply();
     });
     return el;
   }
@@ -168,13 +168,13 @@ describe('mdSidenav', function() {
 
   describe('controller', function() {
     it('should create controller', function() {
-      var el = setup('');
+      var el = setup();
       var controller = el.controller('mdSidenav');
       expect(controller).not.toBe(undefined);
     });
 
     it('should open and close and toggle', inject(function($timeout) {
-      var el = setup('');
+      var el = setup();
       var scope = el.isolateScope();
       var controller = el.controller('mdSidenav');
 
@@ -213,7 +213,7 @@ describe('mdSidenav', function() {
     }));
 
     it('should open(), close(), and toggle() with promises', function() {
-      var el = setup('');
+      var el = setup();
       var scope = el.isolateScope();
       var controller = el.controller('mdSidenav');
 
@@ -257,7 +257,7 @@ describe('mdSidenav', function() {
     });
 
     it('should open() to work multiple times before close()', function() {
-      var el = setup('');
+      var el = setup();
       var controller = el.controller('mdSidenav');
 
       var openDone = 0, closeDone = 0;
@@ -351,23 +351,35 @@ describe('mdSidenav', function() {
   });
 
   describe('$mdSidenav lookups', function() {
-    var $rootScope, $timeout;
+    var $rootScope, $timeout, $mdSidenav;
 
-    beforeEach(inject(function(_$rootScope_, _$timeout_) {
+    beforeEach(inject(function(_$rootScope_, _$timeout_, _$mdSidenav_) {
       $rootScope = _$rootScope_;
       $timeout = _$timeout_;
+      $mdSidenav = _$mdSidenav_;
     }));
 
-    it('should find an instantiation using `$mdSidenav(id)`', inject(function($mdSidenav) {
+    it('should find an instantiation using `$mdSidenav(id)`', function() {
       var el = setup('md-component-id="left"');
       $timeout.flush();
 
       // Lookup instance still available in the component registry
       var instance = $mdSidenav('left');
       expect(instance).toBeTruthy();
-    }));
+    });
 
-    it('should find a deferred instantiation using `$mdSidenav(id, true)`', inject(function($mdSidenav) {
+    it('should support data bindings', function() {
+      // It should work on init.
+      $rootScope.leftComponentId = 'left';
+      setup('md-component-id="{{ leftComponentId }}"', true);
+      expect($mdSidenav($rootScope.leftComponentId, false)).toBeTruthy();
+
+      // It should also work if the data binding has changed.
+      $rootScope.$apply('leftComponentId = "otherLeft"');
+      expect($mdSidenav($rootScope.leftComponentId, false)).toBeTruthy();
+    });
+
+    it('should find a deferred instantiation using `$mdSidenav(id, true)`', function() {
       var instance;
 
       // Lookup deferred (not existing) instance
@@ -386,9 +398,9 @@ describe('mdSidenav', function() {
       // Lookup instance still available in the component registry
       instance = $mdSidenav('left', true);
       expect(instance).toBeTruthy();
-    }));
+    });
 
-    it('should find a deferred instantiation using `$mdSidenav().waitFor(id)` ', inject(function($mdSidenav) {
+    it('should find a deferred instantiation using `$mdSidenav().waitFor(id)` ', function() {
       var instance;
 
       // Lookup deferred (not existing) instance
@@ -409,9 +421,9 @@ describe('mdSidenav', function() {
       instance = $mdSidenav('left');
 
       expect(instance).toBeTruthy();
-    }));
+    });
 
-    it('should not find a lazy instantiation without waiting `$mdSidenav(id)`', inject(function($mdSidenav) {
+    it('should not find a lazy instantiation without waiting `$mdSidenav(id)`', function() {
       var instance = $mdSidenav('left');
       expect(instance.isOpen).toBeDefined();    // returns legacy API with noops
 
@@ -425,9 +437,9 @@ describe('mdSidenav', function() {
       instance = $mdSidenav('left');            // returns instance
       expect(instance).toBeDefined();
       expect(instance.isOpen()).toBeFalsy();
-    }));
+    });
 
-    it('should not find a lazy instantiation without waiting `$mdSidenav().find(id)`', inject(function($mdSidenav) {
+    it('should not find a lazy instantiation without waiting `$mdSidenav().find(id)`', function() {
       var instance = $mdSidenav().find('left');
       expect(instance).toBeUndefined();
 
@@ -438,7 +450,7 @@ describe('mdSidenav', function() {
       instance = $mdSidenav().find('left');
       expect(instance).toBeDefined();
       expect(instance.isOpen()).toBeFalsy();
-    }));
+    });
 
     describe('onClose', function () {
       it('should call callback on escape', inject(function($mdSidenav, $rootScope, $material, $mdConstant, $timeout) {