diff --git a/src/components/fabSpeedDial/demoBasicUsage/index.html b/src/components/fabSpeedDial/demoBasicUsage/index.html
index 9bb877bb84c..22e0c28d1d9 100644
--- a/src/components/fabSpeedDial/demoBasicUsage/index.html
+++ b/src/components/fabSpeedDial/demoBasicUsage/index.html
@@ -29,7 +29,7 @@
     </div>
 
     <div layout="row" layout-align="space-around">
-      <div layout="column">
+      <div layout="column" layout-align="start center">
         <b>Direction</b>
 
         <md-radio-group ng-model="demo.selectedDirection">
@@ -40,7 +40,7 @@
         </md-radio-group>
       </div>
 
-      <div layout="column">
+      <div layout="column" layout-align="start center">
         <b>Open/Closed</b>
 
         <md-radio-group ng-model="demo.isOpen">
@@ -49,7 +49,7 @@
         </md-radio-group>
       </div>
 
-      <div layout="column">
+      <div layout="column" layout-align="start center">
         <b>Animation Modes</b>
 
         <md-radio-group ng-model="demo.selectedMode">
diff --git a/src/components/fabSpeedDial/demoMoreOptions/index.html b/src/components/fabSpeedDial/demoMoreOptions/index.html
index f51541e13bc..40d799c41fd 100644
--- a/src/components/fabSpeedDial/demoMoreOptions/index.html
+++ b/src/components/fabSpeedDial/demoMoreOptions/index.html
@@ -1,36 +1,69 @@
 <div layout="column" ng-controller="DemoCtrl as demo" ng-cloak>
   <md-content class="md-padding" layout="column">
+
+    <md-toolbar>
+      <h3>
+        <md-button>Test</md-button>
+        <md-button>Test</md-button>
+        <md-button hide-sm>Test</md-button>
+        <md-button hide-sm>Test</md-button>
+        <md-button hide-sm>Test</md-button>
+        <md-button hide-sm>Test</md-button>
+        <md-button hide-sm>Test</md-button>
+      </h3>
+    </md-toolbar>
+
     <p>
-      The speed dial supports many advanced usage scenarios. This demo shows many of them mixed
-      together.
+      The speed dial supports many advanced usage scenarios.
+      <br />
+      This demo shows many of them mixed together.
     </p>
 
-    <div class="lock-size" layout="row" layout-align="center center">
-      <md-fab-speed-dial ng-hide="demo.hidden" md-direction="down" class="md-fling"
-                         md-open="demo.isOpen"
-                         ng-mouseenter="demo.isOpen=true" ng-mouseleave="demo.isOpen=false">
-        <md-fab-trigger>
-          <md-button aria-label="menu" class="md-fab md-warn">
-            <md-tooltip md-direction="top">Menu</md-tooltip>
-            <md-icon md-svg-src="img/icons/menu.svg" aria-label="menu"></md-icon>
+    <md-fab-speed-dial ng-hide="demo.hidden" md-direction="left" md-open="demo.isOpen"
+                       class="md-scale md-fab-top-right" ng-class="{ 'md-hover-full': demo.hover }"
+                       ng-mouseenter="demo.isOpen=true" ng-mouseleave="demo.isOpen=false">
+      <md-fab-trigger>
+        <md-button aria-label="menu" class="md-fab md-warn">
+          <md-tooltip md-direction="top" md-visible="tooltipVisible">Menu</md-tooltip>
+          <md-icon md-svg-src="img/icons/menu.svg" aria-label="menu"></md-icon>
+        </md-button>
+      </md-fab-trigger>
+
+      <md-fab-actions>
+        <div ng-repeat="item in demo.items">
+          <md-button aria-label="{{item.name}}" class="md-fab md-raised md-mini"
+                     ng-click="demo.openDialog($event, item)">
+            <md-tooltip md-direction="{{item.direction}}" md-visible="tooltipVisible"
+                        md-autohide="false">
+              {{item.name}}
+            </md-tooltip>
+
+            <md-icon md-svg-src="{{item.icon}}" aria-label="{{item.name}}"></md-icon>
           </md-button>
-        </md-fab-trigger>
-
-        <md-fab-actions>
-          <div ng-repeat="item in demo.items">
-            <md-button aria-label="{{item.name}}" class="md-fab md-raised md-mini"
-                       ng-click="demo.openDialog($event, item)">
-              <md-tooltip md-direction="{{item.direction}}">{{item.name}}</md-tooltip>
-              <md-icon md-svg-src="{{item.icon}}" aria-label="{{item.name}}"></md-icon>
-            </md-button>
-          </div>
-        </md-fab-actions>
-      </md-fab-speed-dial>
-    </div>
+        </div>
+      </md-fab-actions>
+    </md-fab-speed-dial>
   </md-content>
 
-  <md-content class="md-padding" layout="row">
-    <div flex="50">
+  <md-content class="md-padding" layout="row" layout-sm="column" layout-align="space-around">
+    <div flex-gt-sm="45">
+      <h3>Tooltips</h3>
+
+      <p>
+        Each action item supports a tooltip using the standard approach as can be seen above.
+      </p>
+
+      <h3>ngHide</h3>
+
+      <p>
+        The speed dial also supports hiding using the standard <code>ng-hide</code> attribute. View
+        the source to see how to apply the animation effect.
+
+        <md-checkbox ng-model="demo.hidden">
+          Hide the speed dial.
+        </md-checkbox>
+      </p>
+
       <h3>ngRepeat</h3>
 
       <p>
@@ -43,53 +76,39 @@ <h3>ngRepeat</h3>
         that wraps your items.
       </p>
     </div>
-    <div flex="50">
-      <h3>$mdDialog</h3>
+
+    <div flex-gt-sm="45">
+      <h3>Hovering</h3>
 
       <p>
-        You can also use the buttons to open a dialog. When clicked, the buttons above will open a
-        dialog showing a message which item was clicked.
+        You can also easily setup the speed dial to open on hover using the
+        <code>ng-mouseenter</code> and <code>ng-mouseleave</code> attributes.
       </p>
-    </div>
-  </md-content>
-
-  <md-content class="md-padding" layout="row">
-    <div flex="50">
-      <h3>ngHide</h3>
 
       <p>
-        The speed dial also supports hiding using the standard <code>ng-hide</code> attribute.
+        If you want the user to be able to hover over the empty area where the
+        actions will eventually appear, you must also add the
+        <code>md-hover-full</code> class to the speed dial element.
 
-        <md-checkbox ng-model="demo.hidden">
-          Hide the speed dial.
+        <md-checkbox ng-model="demo.hover">
+          Enable "full hover" mode.
         </md-checkbox>
       </p>
-    </div>
-    <div flex="50">
-      <h3>Tooltips</h3>
 
       <p>
-        Each action item supports a tooltip using the standard approach as can be seen above.
+        Notice that in "full hover" mode, you cannot click on the last "Test" buttons on the toolbar
+        as they are hidden by the speed dial. See the example code and docs for more information.
       </p>
-    </div>
-  </md-content>
-
-  <md-content class="md-padding" layout="row">
-    <div flex="50">
-      <h3>Hovering</h3>
 
-      <p>
-        You can also easily setup the speed dial to open on hover using the
-        <code>ng-mouseenter</code> and <code>ng-mouseleave</code> attributes.
-      </p>
+      <h3>$mdDialog</h3>
 
       <p>
-        See the example code for more information.
+        You can also use the buttons to open a dialog. When clicked, the buttons above will open a
+        dialog showing a message which item was clicked.
       </p>
     </div>
   </md-content>
 
-
   <script type="text/ng-template" id="dialog.html">
     <md-dialog>
       <md-dialog-content>Hello User! You clicked {{dialog.item.name}}.</md-dialog-content>
diff --git a/src/components/fabSpeedDial/demoMoreOptions/script.js b/src/components/fabSpeedDial/demoMoreOptions/script.js
index 8e6eac11510..4e031962e8b 100644
--- a/src/components/fabSpeedDial/demoMoreOptions/script.js
+++ b/src/components/fabSpeedDial/demoMoreOptions/script.js
@@ -2,15 +2,29 @@
   'use strict';
 
   angular.module('fabSpeedDialDemoMoreOptions', ['ngMaterial'])
-    .controller('DemoCtrl', function($mdDialog) {
+    .controller('DemoCtrl', function($scope, $mdDialog, $timeout) {
       var self = this;
 
       self.hidden = false;
+      self.isOpen = false;
+      self.hover = false;
+
+      // On opening, add a delayed property which shows tooltips after the speed dial has opened
+      // so that they have the proper position; if closing, immediately hide the tooltips
+      $scope.$watch('demo.isOpen', function(isOpen) {
+        if (isOpen) {
+          $timeout(function() {
+            $scope.tooltipVisible = self.isOpen;
+          }, 600);
+        } else {
+          $scope.tooltipVisible = self.isOpen;
+        }
+      });
 
       self.items = [
-        {name: "Twitter", icon: "img/icons/twitter.svg", direction: "left" },
-        {name: "Facebook", icon: "img/icons/facebook.svg", direction: "right" },
-        {name: "Google Hangout", icon: "img/icons/hangout.svg", direction: "left" }
+        { name: "Twitter", icon: "img/icons/twitter.svg", direction: "bottom" },
+        { name: "Facebook", icon: "img/icons/facebook.svg", direction: "top" },
+        { name: "Google Hangout", icon: "img/icons/hangout.svg", direction: "bottom" }
       ];
 
       self.openDialog = function($event, item) {
diff --git a/src/components/fabSpeedDial/demoMoreOptions/style.scss b/src/components/fabSpeedDial/demoMoreOptions/style.scss
index 5266a2089a4..164ec658a0a 100644
--- a/src/components/fabSpeedDial/demoMoreOptions/style.scss
+++ b/src/components/fabSpeedDial/demoMoreOptions/style.scss
@@ -1,10 +1,13 @@
-.lock-size {
-  min-width: 300px;
-  min-height: 300px;
-  width: 300px;
-  height: 300px;
-  margin-left: auto;
-  margin-right: auto;
+// Line the fab up properly on different screen sizes/layouts
+.md-fab-top-right {
+  top: 16px;
+}
+
+@media only screen and (max-device-width: 600px) {
+  .md-fab-top-right {
+    top: 9px;
+    right: 9px;
+  }
 }
 
 .md-fab.demo-fab.trigger-fab, .md-fab.demo-fab.action-fab {
@@ -23,3 +26,24 @@ md-content div {
     padding: 15px;
   }
 }
+
+
+md-fab-speed-dial {
+  // Add a simple scale transition to the trigger when hiding/showing the speed dial
+  md-fab-trigger {
+    transition: all 0.3s ease-in-out;
+    transform: scale(1);
+  }
+
+  // Note: you MUST use an existing CSS class for the animation to fire properly
+  &.md-scale, &.md-fling {
+    &.ng-hide {
+      // Use !important to override ng-hide's `display: none !important`
+      display: flex !important;
+
+      md-fab-trigger {
+        transform: scale(0);
+      }
+    }
+  }
+}
diff --git a/src/components/fabSpeedDial/fabSpeedDial.js b/src/components/fabSpeedDial/fabSpeedDial.js
index be7fb69b309..4117cf216d6 100644
--- a/src/components/fabSpeedDial/fabSpeedDial.js
+++ b/src/components/fabSpeedDial/fabSpeedDial.js
@@ -53,6 +53,11 @@
    * These CSS classes use `position: absolute`, so you need to ensure that the container element
    * also uses `position: absolute` or `position: relative` in order for them to work.
    *
+   * Additionally, you may use the standard `ng-mouseenter` and `ng-mouseleave` directives to
+   * open or close the speed dial. However, if you wish to allow users to hover over the empty
+   * space where the actions will appear, you must also add the `md-hover-full` class to the speed
+   * dial element. Without this, the hover effect will only occur on top of the trigger.
+   *
    * @usage
    * <hljs lang="html">
    * <md-fab-speed-dial md-direction="up" class="md-fling">
@@ -182,6 +187,12 @@
       var ctrl = element.controller('mdFabSpeedDial');
       var items = el.querySelectorAll('.md-fab-action-item');
 
+      // Grab our element which stores CSS variables
+      var variablesElement = el.querySelector('.md-css-variables');
+
+      // Setup JS variables based on our CSS variables
+      var startZIndex = parseInt(window.getComputedStyle(variablesElement).zIndex);
+
       // Always reset the items to their natural position/state
       angular.forEach(items, function(item, index) {
         var styles = item.style,
@@ -190,6 +201,9 @@
         styles.opacity = ctrl.isOpen ? 1 : 0;
         styles.transform = styles.webkitTransform = ctrl.isOpen ? 'scale(1)' : 'scale(0)';
         styles.transitionDelay = (ctrl.isOpen ? offsetDelay : (items.length - offsetDelay)) + 'ms';
+
+        // Make the items closest to the trigger have the highest z-index
+        styles.zIndex = (items.length - index) + startZIndex;
       });
     }
 
diff --git a/src/components/fabSpeedDial/fabSpeedDial.scss b/src/components/fabSpeedDial/fabSpeedDial.scss
index 7d5fc643b5e..f20edff6be4 100644
--- a/src/components/fabSpeedDial/fabSpeedDial.scss
+++ b/src/components/fabSpeedDial/fabSpeedDial.scss
@@ -3,8 +3,27 @@ md-fab-speed-dial {
   display: flex;
   align-items: center;
 
-  // Include the top/left/bottom/right fab positions
+  // Include the top/left/bottom/right fab positions and set the z-index for absolute positioning
   @include fab-all-positions();
+  z-index: $z-index-fab;
+
+  // Allow users to enable/disable hovering over the entire speed dial (i.e. the empty space where
+  // items will eventually appear)
+  &:not(.md-hover-full) {
+    // Turn off pointer events when closed
+    pointer-events: none;
+
+    md-fab-trigger, .md-fab-action-item {
+      // Always make the trigger and action items always have pointer events (the tooltip looks
+      // for the first parent with pointer-events, so we must set this for tooltips to work)
+      pointer-events: auto;
+    }
+
+    &.md-is-open {
+      // Turn on pointer events when open
+      pointer-events: auto;
+    }
+  }
 
   .md-css-variables {
     z-index: $z-index-fab;
diff --git a/src/components/fabToolbar/fabToolbar.js b/src/components/fabToolbar/fabToolbar.js
index 49ab47e6fd5..32db9f52304 100644
--- a/src/components/fabToolbar/fabToolbar.js
+++ b/src/components/fabToolbar/fabToolbar.js
@@ -125,8 +125,8 @@
         var width = el.offsetWidth;
         var height = el.offsetHeight;
 
-        // Make a square
-        var scale = width * 2;
+        // Make it twice as big as it should be since we scale from the center
+        var scale = 2 * (width / triggerElement.offsetWidth);
 
         // Set some basic styles no matter what animation we're doing
         backgroundElement.style.backgroundColor = color;
@@ -137,22 +137,9 @@
           // Turn on toolbar pointer events when closed
           toolbarElement.style.pointerEvents = 'initial';
 
-          // Set the width/height to take up the full toolbar width
-          backgroundElement.style.width = scale + 'px';
-          backgroundElement.style.height = scale + 'px';
-
-          // Set the top/left to move up/left (or right) by the scale width/height
-          backgroundElement.style.top = -(scale / 2) + 'px';
-
-          if (element.hasClass('md-right')) {
-            backgroundElement.style.left = -(scale / 2) + 'px';
-            backgroundElement.style.right = null;
-          }
-
-          if (element.hasClass('md-left')) {
-            backgroundElement.style.right = -(scale / 2) + 'px';
-            backgroundElement.style.left = null;
-          }
+          backgroundElement.style.width = triggerElement.offsetWidth + 'px';
+          backgroundElement.style.height = triggerElement.offsetHeight + 'px';
+          backgroundElement.style.transform = 'scale(' + scale + ')';
 
           // Set the next close animation to have the proper delays
           backgroundElement.style.transitionDelay = '0ms';
@@ -166,20 +153,19 @@
           // Turn off toolbar pointer events when closed
           toolbarElement.style.pointerEvents = 'none';
 
-          // Otherwise, set the width/height to the trigger's width/height
-          backgroundElement.style.width = triggerElement.offsetWidth + 'px';
-          backgroundElement.style.height = triggerElement.offsetHeight + 'px';
+          // Scale it back down to the trigger's size
+          backgroundElement.style.transform = 'scale(1)';
 
           // Reset the position
-          backgroundElement.style.top = '0px';
+          backgroundElement.style.top = '0';
 
           if (element.hasClass('md-right')) {
-            backgroundElement.style.left = '0px';
+            backgroundElement.style.left = '0';
             backgroundElement.style.right = null;
           }
 
           if (element.hasClass('md-left')) {
-            backgroundElement.style.right = '0px';
+            backgroundElement.style.right = '0';
             backgroundElement.style.left = null;
           }