diff --git a/src/lib/dialog/dialog-config.ts b/src/lib/dialog/dialog-config.ts
index fa6d74fb6e26..83c41cb308b8 100644
--- a/src/lib/dialog/dialog-config.ts
+++ b/src/lib/dialog/dialog-config.ts
@@ -14,6 +14,8 @@ export class MdDialogConfig {
   /** The ARIA role of the dialog element. */
   role: DialogRole = 'dialog';
 
-  // TODO(jelbourn): add configuration for size, clickOutsideToClose, lifecycle hooks,
-  // ARIA labelling.
+  /** Whether the user can use escape or clicking outside to close a modal. */
+  disableClose = false;
+
+  // TODO(jelbourn): add configuration for size, lifecycle hooks, ARIA labelling.
 }
diff --git a/src/lib/dialog/dialog-container.ts b/src/lib/dialog/dialog-container.ts
index 5f920aa0d0ca..997d16996685 100644
--- a/src/lib/dialog/dialog-container.ts
+++ b/src/lib/dialog/dialog-container.ts
@@ -1,10 +1,11 @@
 import {
-    Component,
-    ComponentRef,
-    ViewChild,
-    ViewEncapsulation,
-    NgZone,
-    OnDestroy
+  Component,
+  ComponentRef,
+  ViewChild,
+  ViewEncapsulation,
+  NgZone,
+  OnDestroy,
+  ElementRef
 } from '@angular/core';
 import {BasePortalHost, ComponentPortal, PortalHostDirective, TemplatePortal} from '../core';
 import {MdDialogConfig} from './dialog-config';
@@ -25,7 +26,7 @@ import 'rxjs/add/operator/first';
   host: {
     'class': 'md-dialog-container',
     '[attr.role]': 'dialogConfig?.role',
-    '(keydown.escape)': 'handleEscapeKey()',
+    '(keydown.escape)': 'handleEscapeKey()'
   },
   encapsulation: ViewEncapsulation.None,
 })
@@ -45,7 +46,7 @@ export class MdDialogContainer extends BasePortalHost implements OnDestroy {
   /** Reference to the open dialog. */
   dialogRef: MdDialogRef<any>;
 
-  constructor(private _ngZone: NgZone) {
+  constructor(private _ngZone: NgZone, public elementRef: ElementRef) {
     super();
   }
 
@@ -74,8 +75,9 @@ export class MdDialogContainer extends BasePortalHost implements OnDestroy {
 
   /** Handles the user pressing the Escape key. */
   handleEscapeKey() {
-    // TODO(jelbourn): add MdDialogConfig option to disable this behavior.
-    this.dialogRef.close();
+    if (!this.dialogConfig.disableClose) {
+      this.dialogRef.close();
+    }
   }
 
   ngOnDestroy() {
diff --git a/src/lib/dialog/dialog.spec.ts b/src/lib/dialog/dialog.spec.ts
index 6ff5b8651ee8..1477cc0bff31 100644
--- a/src/lib/dialog/dialog.spec.ts
+++ b/src/lib/dialog/dialog.spec.ts
@@ -128,6 +128,40 @@ describe('MdDialog', () => {
     expect(overlayContainerElement.querySelector('md-dialog-container')).toBeFalsy();
   });
 
+  describe('disableClose option', () => {
+    it('should prevent closing via clicks on the backdrop', () => {
+      let config = new MdDialogConfig();
+      config.viewContainerRef = testViewContainerRef;
+      config.disableClose = true;
+
+      dialog.open(PizzaMsg, config);
+
+      viewContainerFixture.detectChanges();
+
+      let backdrop = <HTMLElement> overlayContainerElement.querySelector('.md-overlay-backdrop');
+      backdrop.click();
+
+      expect(overlayContainerElement.querySelector('md-dialog-container')).toBeTruthy();
+    });
+
+    it('should prevent closing via the escape key', () => {
+      let config = new MdDialogConfig();
+      config.viewContainerRef = testViewContainerRef;
+      config.disableClose = true;
+
+      dialog.open(PizzaMsg, config);
+
+      viewContainerFixture.detectChanges();
+
+      let dialogContainer: MdDialogContainer = viewContainerFixture.debugElement.query(
+          By.directive(MdDialogContainer)).componentInstance;
+
+      dialogContainer.handleEscapeKey();
+
+      expect(overlayContainerElement.querySelector('md-dialog-container')).toBeTruthy();
+    });
+  });
+
   describe('focus management', () => {
 
     // When testing focus, all of the elements must be in the DOM.
diff --git a/src/lib/dialog/dialog.ts b/src/lib/dialog/dialog.ts
index 05384daecc78..c8539a7ecb83 100644
--- a/src/lib/dialog/dialog.ts
+++ b/src/lib/dialog/dialog.ts
@@ -87,8 +87,10 @@ export class MdDialog {
     // to modify and close it.
     let dialogRef = <MdDialogRef<T>> new MdDialogRef(overlayRef);
 
-    // When the dialog backdrop is clicked, we want to close it.
-    overlayRef.backdropClick().first().subscribe(() => dialogRef.close());
+    if (!dialogContainer.dialogConfig.disableClose) {
+      // When the dialog backdrop is clicked, we want to close it.
+      overlayRef.backdropClick().first().subscribe(() => dialogRef.close());
+    }
 
     // Set the dialogRef to the container so that it can use the ref to close the dialog.
     dialogContainer.dialogRef = dialogRef;