diff --git a/ng2-material/components/checkbox/checkbox.ts b/ng2-material/components/checkbox/checkbox.ts
index 4eeb7db1..15e8e10e 100644
--- a/ng2-material/components/checkbox/checkbox.ts
+++ b/ng2-material/components/checkbox/checkbox.ts
@@ -4,6 +4,7 @@ import {KeyCodes} from '../../core/key_codes';
 import {KeyboardEvent} from 'angular2/src/facade/browser';
 import {NumberWrapper} from 'angular2/src/facade/lang';
 import {Input, Output, EventEmitter} from 'angular2/core';
+import {parseTabIndexAttribute} from "../../core/util/util";
 
 // TODO(jdd): ng-true-value, ng-false-value
 
@@ -44,7 +45,7 @@ export class MdCheckbox {
 
   constructor(@Attribute('tabindex') tabindex: string) {
     this.checked = false;
-    this.tabindex = isPresent(tabindex) ? NumberWrapper.parseInt(tabindex, 10) : 0;
+    this.tabindex = parseTabIndexAttribute(tabindex);
     this.disabled_ = false;
   }
 
diff --git a/ng2-material/components/radio/radio_button.ts b/ng2-material/components/radio/radio_button.ts
index 58de6527..19c62b10 100644
--- a/ng2-material/components/radio/radio_button.ts
+++ b/ng2-material/components/radio/radio_button.ts
@@ -17,14 +17,12 @@ import {Event, KeyboardEvent} from 'angular2/src/facade/browser';
 import {MdRadioDispatcher} from './radio_dispatcher';
 import {KeyCodes} from '../../core/key_codes';
 import {Output, Input} from 'angular2/core';
+import {OnDestroy} from "angular2/core";
+import {parseTabIndexAttribute} from "../../core/util/util";
 
-// TODO(jdd): [disabled] style
 
 // TODO(jelbourn): Behaviors to test
-// Radios set default tab index iff not in parent group
 // Radio name is pulled on parent group
-// Radio group changes on arrow keys
-// Radio group skips disabled radios on arrow keys
 
 var _uniqueIdCounter: number = 0;
 
@@ -35,7 +33,6 @@ var _uniqueIdCounter: number = 0;
     'role': 'radiogroup',
     '[attr.aria-disabled]': 'disabled',
     '[attr.aria-activedescendant]': 'activedescendant',
-    // TODO(jelbourn): Remove ^ when event retargeting is fixed.
     '(keydown)': 'onKeydown($event)',
     '[tabindex]': 'tabindex',
   }
@@ -45,21 +42,21 @@ var _uniqueIdCounter: number = 0;
   encapsulation: ViewEncapsulation.None
 })
 export class MdRadioGroup implements OnChanges {
+
+  @Output('valueChange')
+  change: EventEmitter<any> = new EventEmitter();
+
   /** The selected value for the radio group. The value comes from the options. */
-  @Input('value') value_: any;
+  @Input('value')
+  value_: any;
 
   get value(): any {
     return this.value_;
   }
 
   set value(value: any) {
-    let button = this.getChildByValue(value);
     this.value_ = value;
-    if (button) {
-      this.selectedRadioId = button.id;
-      this.activedescendant = button.id;
-      button.checked = true;
-    }
+    this._setChildValue(value);
   }
 
   /** The HTML name attribute applied to radio buttons in this group. */
@@ -78,7 +75,6 @@ export class MdRadioGroup implements OnChanges {
   /** The ID of the selected radio button. */
   selectedRadioId: string = '';
 
-  @Output('valueChange') change: EventEmitter<any> = new EventEmitter();
 
   tabindex: number;
 
@@ -91,7 +87,7 @@ export class MdRadioGroup implements OnChanges {
     this.disabled = isPresent(disabled);
 
     // If the user has not set a tabindex, default to zero (in the normal document flow).
-    this.tabindex = isPresent(tabindex) ? NumberWrapper.parseInt(tabindex, 10) : 0;
+    this.tabindex = parseTabIndexAttribute(tabindex);
   }
 
   /** Gets the name of this group, as to be applied in the HTML 'name' attribute. */
@@ -116,13 +112,16 @@ export class MdRadioGroup implements OnChanges {
     // child radio buttons and select the one that has a corresponding value (if any).
     if (isPresent(this.value) && this.value !== '') {
       this.radioDispatcher.notify(this.name_);
-      this.radios_.forEach(radio => {
-        if (radio.value === this.value) {
-          radio.checked = true;
-          this.selectedRadioId = radio.id;
-          this.activedescendant = radio.id;
-        }
-      });
+      this._setChildValue(this.value);
+    }
+  }
+
+  private _setChildValue(value: any) {
+    let button = this.getChildByValue(value);
+    if (button) {
+      this.selectedRadioId = button.id;
+      this.activedescendant = button.id;
+      button.checked = true;
     }
   }
 
@@ -138,6 +137,10 @@ export class MdRadioGroup implements OnChanges {
   register(radio: MdRadioButton) {
     this.radios_.push(radio);
   }
+  /** Unregister a child radio button with this group. */
+  unregister(radio: MdRadioButton) {
+    this.radios_ = this.radios_.filter(r => r.id !== radio.id);
+  }
 
   /** Handles up and down arrow key presses to change the selected child radio. */
   onKeydown(event: KeyboardEvent) {
@@ -195,13 +198,8 @@ export class MdRadioGroup implements OnChanges {
       return;
     }
 
-    this.radioDispatcher.notify(this.name_);
+    this.updateValue(radio.value, radio.id);
     radio.checked = true;
-    ObservableWrapper.callEmit(this.change, null);
-
-    this.value = radio.value;
-    this.selectedRadioId = radio.id;
-    this.activedescendant = radio.id;
   }
 }
 
@@ -222,24 +220,19 @@ export class MdRadioGroup implements OnChanges {
 })
 @View({
   template: `
-    <!-- TODO(jelbourn): render the radio on either side of the content -->
-    <label role="radio" class="md-radio-root"
-        [class.md-radio-checked]="checked">
-      <!-- The actual radio part of the control. -->
+    <label role="radio" class="md-radio-root" [class.md-radio-checked]="checked">
       <div class="md-radio-container">
         <div class="md-radio-off"></div>
         <div class="md-radio-on"></div>
       </div>
-
-      <!-- The label for radio control. -->
       <div class="md-radio-label">
-          <ng-content></ng-content>
+        <ng-content></ng-content>
       </div>
     </label>`,
   directives: [],
   encapsulation: ViewEncapsulation.None
 })
-export class MdRadioButton implements OnInit {
+export class MdRadioButton implements OnInit, OnDestroy {
   /** Whether this radio is checked. */
   checked: boolean;
 
@@ -266,6 +259,7 @@ export class MdRadioButton implements OnInit {
   constructor(@Optional() @SkipSelf() @Host() radioGroup: MdRadioGroup,
               @Attribute('id') id: string,
               @Attribute('value') value: string,
+              @Attribute('checked') checked: string,
               @Attribute('tabindex') tabindex: string,
               radioDispatcher: MdRadioDispatcher) {
     // Assertions. Ideally these should be stripped out by the compiler.
@@ -274,7 +268,7 @@ export class MdRadioButton implements OnInit {
     this.radioGroup = radioGroup;
     this.radioDispatcher = radioDispatcher;
     this.value = value ? value : null;
-    this.checked = false;
+    this.checked = isPresent(checked) ? true : false;
 
     this.id = isPresent(id) ? id : `md-radio-${_uniqueIdCounter++}`;
 
@@ -289,11 +283,14 @@ export class MdRadioButton implements OnInit {
     if (isPresent(radioGroup)) {
       this.name = radioGroup.getName();
       this.radioGroup.register(this);
+      if (this.checked) {
+        this.radioGroup.updateValue(this.value,this.id);
+      }
     }
 
     // If the user has not set a tabindex, default to zero (in the normal document flow).
     if (!isPresent(radioGroup)) {
-      this.tabindex = isPresent(tabindex) ? NumberWrapper.parseInt(tabindex, 10) : 0;
+      this.tabindex = parseTabIndexAttribute(tabindex);
     } else {
       this.tabindex = -1;
     }
@@ -306,6 +303,13 @@ export class MdRadioButton implements OnInit {
     }
   }
 
+  ngOnDestroy(): any {
+    if (isPresent(this.radioGroup)) {
+      this.radioGroup.unregister(this);
+    }
+  }
+
+
   /** Whether this radio button is disabled, taking the parent group into account. */
   isDisabled(): boolean {
     // Here, this.disabled may be true/false as the result of a binding, may be the empty string
diff --git a/ng2-material/core/util/util.ts b/ng2-material/core/util/util.ts
index af590058..46650b98 100644
--- a/ng2-material/core/util/util.ts
+++ b/ng2-material/core/util/util.ts
@@ -1,3 +1,5 @@
+import {isPresent} from "angular2/src/facade/lang";
+import {NumberWrapper} from "angular2/src/facade/lang";
 /**
  * Returns a function, that, as long as it continues to be invoked, will not
  * be triggered. The function will be called after it stops being called for
@@ -44,3 +46,7 @@ export function throttle(func, delay, scope) {
 export function rAF(callback) {
   window.requestAnimationFrame(callback);
 }
+
+export function parseTabIndexAttribute(attr: any): number {
+  return isPresent(attr) ? NumberWrapper.parseInt(attr, 10) : 0;
+}
diff --git a/test/components/radio/radio_spec.ts b/test/components/radio/radio_spec.ts
index d881bfe1..395d2205 100644
--- a/test/components/radio/radio_spec.ts
+++ b/test/components/radio/radio_spec.ts
@@ -17,10 +17,18 @@ import {MATERIAL_PROVIDERS} from '../../../ng2-material/all';
 import {ComponentFixture} from "angular2/testing";
 import {findChildByTag} from "../../util";
 import {findChildById} from "../../util";
+import {DOM} from "angular2/src/platform/dom/dom_adapter";
+import {KeyCodes} from "../../../ng2-material/core/key_codes";
 
 
 export function main() {
 
+  let sendKey = (to: DebugElement, keyCode: number) => {
+    let event = DOM.createEvent('key');
+    event.keyCode = keyCode;
+    to.triggerEventHandler('keydown', event);
+  }
+
 
   @Component({selector: 'test-app'})
   @View({
@@ -59,10 +67,11 @@ export function main() {
 
     describe('md-radio-group', () => {
       it('should set value from initial binding', inject([AsyncTestCompleter], (async) => {
-        builder.createAsync(TestComponent).then(fixture => {
+        builder.createAsync(TestComponent).then((fixture: ComponentFixture) => {
           fixture.detectChanges();
           let radioGroup = <MdRadioGroup>findChildByTag(fixture.debugElement, 'md-radio-group').componentInstance;
           expect(radioGroup.value).toBe('Banana');
+          fixture.destroy();
           async.done();
         });
       }));
@@ -90,6 +99,23 @@ export function main() {
           async.done();
         });
       }));
+      it('should select a child by value when value is initially set on group', inject([AsyncTestCompleter], (async) => {
+        let template = `
+            <md-radio-group [value]="selected">
+              <md-radio-button id="rdo1" value="Apple"></md-radio-button>
+              <md-radio-button id="rdo2" value="Banana"></md-radio-button>
+            </md-radio-group>`;
+        setup(template).then((fixture: ComponentFixture) => {
+          let radio = findChildById(fixture.debugElement, 'rdo1');
+          let radio2 = findChildById(fixture.debugElement, 'rdo2');
+          let group = <MdRadioGroup>findChildByTag(fixture.debugElement, 'md-radio-group').componentInstance;
+          fixture.detectChanges();
+          expect(group.value).toBe('Banana');
+          expect(radio2.componentInstance.checked).toBe(true);
+          async.done();
+        });
+      }));
+
       it('should select a child by value when value is set on group', inject([AsyncTestCompleter], (async) => {
         let template = `
             <md-radio-group>
@@ -109,6 +135,17 @@ export function main() {
           async.done();
         });
       }));
+      it('should accept value even if no matching child is found', inject([AsyncTestCompleter], (async) => {
+        let template = `<md-radio-group></md-radio-group>`;
+        setup(template).then((fixture: ComponentFixture) => {
+          let group = <MdRadioGroup>findChildByTag(fixture.debugElement, 'md-radio-group').componentInstance;
+          expect(group.value).toBeFalsy();
+          group.value = "Apple";
+          fixture.detectChanges();
+          expect(group.value).toBe('Apple');
+          async.done();
+        });
+      }));
       it('should disable child radio buttons when disabled', inject([AsyncTestCompleter], (async) => {
         var template = `
             <md-radio-group disabled>
@@ -124,6 +161,129 @@ export function main() {
           async.done();
         });
       }));
+      it('should initialize value from checked child radio', inject([AsyncTestCompleter], (async) => {
+        let template = `
+            <md-radio-group>
+              <md-radio-button checked value="Apple"></md-radio-button>
+              <md-radio-button value="Banana"></md-radio-button>
+            </md-radio-group>`;
+        setup(template).then((fixture: ComponentFixture) => {
+          fixture.detectChanges();
+          let radioGroup = <MdRadioGroup>findChildByTag(fixture.debugElement, 'md-radio-group').componentInstance;
+          expect(radioGroup.value).toBe('Apple');
+          async.done();
+        });
+      }));
+
+
+      describe('Keyboard', () => {
+        let template = `
+          <md-radio-group>
+            <md-radio-button value="Apple"></md-radio-button>
+            <md-radio-button checked="true" value="Banana"></md-radio-button>
+            <md-radio-button disabled value="Orange"></md-radio-button>
+            <md-radio-button value="Mango"></md-radio-button>
+          </md-radio-group>`;
+
+        it('should step to the previous radio when the up arrow key is pressed', inject([AsyncTestCompleter], (async) => {
+          setup(template).then((fixture: ComponentFixture) => {
+            fixture.detectChanges();
+
+            let radioGroup: MdRadioGroup = findChildByTag(fixture.debugElement, 'md-radio-group').componentInstance;
+
+            expect(radioGroup.value).toBe('Banana');
+            sendKey(fixture.debugElement.componentViewChildren[0], KeyCodes.UP);
+            expect(radioGroup.value).toBe('Apple');
+
+            fixture.destroy();
+            async.done();
+          });
+        }));
+        it('should not step beyond the first radio when up key is pressed', inject([AsyncTestCompleter], (async) => {
+          setup(template).then((fixture: ComponentFixture) => {
+            fixture.detectChanges();
+
+            let radioGroup: MdRadioGroup = findChildByTag(fixture.debugElement, 'md-radio-group').componentInstance;
+
+            expect(radioGroup.value).toBe('Banana');
+            sendKey(fixture.debugElement.componentViewChildren[0], KeyCodes.UP);
+            expect(radioGroup.value).toBe('Apple');
+            sendKey(fixture.debugElement.componentViewChildren[0], KeyCodes.UP);
+            expect(radioGroup.value).toBe('Apple');
+
+            fixture.destroy();
+            async.done();
+          });
+        }));
+        it('should step to the next radio when the down arrow key is pressed', inject([AsyncTestCompleter], (async) => {
+          setup(template).then((fixture: ComponentFixture) => {
+            fixture.detectChanges();
+
+            let radioGroup: MdRadioGroup = findChildByTag(fixture.debugElement, 'md-radio-group').componentInstance;
+
+            expect(radioGroup.value).toBe('Banana');
+            sendKey(fixture.debugElement.componentViewChildren[0], KeyCodes.DOWN);
+            expect(radioGroup.value).toBe('Mango');
+
+            fixture.destroy();
+            async.done();
+          });
+        }));
+        it('should not step beyond the last radio when down key is pressed', inject([AsyncTestCompleter], (async) => {
+          setup(template).then((fixture: ComponentFixture) => {
+            fixture.detectChanges();
+
+            let radioGroup: MdRadioGroup = findChildByTag(fixture.debugElement, 'md-radio-group').componentInstance;
+
+            expect(radioGroup.value).toBe('Banana');
+            sendKey(fixture.debugElement.componentViewChildren[0], KeyCodes.DOWN);
+            expect(radioGroup.value).toBe('Mango');
+            sendKey(fixture.debugElement.componentViewChildren[0], KeyCodes.DOWN);
+            expect(radioGroup.value).toBe('Mango');
+
+            fixture.destroy();
+            async.done();
+          });
+        }));
+
+        it('should not step forward or back when radio group is disabled', inject([AsyncTestCompleter], (async) => {
+          setup(template).then((fixture: ComponentFixture) => {
+            fixture.detectChanges();
+
+            let radioGroup: MdRadioGroup = findChildByTag(fixture.debugElement, 'md-radio-group').componentInstance;
+            radioGroup.disabled = true;
+
+            expect(radioGroup.value).toBe('Banana');
+            sendKey(fixture.debugElement.componentViewChildren[0], KeyCodes.UP);
+            expect(radioGroup.value).toBe('Banana');
+            sendKey(fixture.debugElement.componentViewChildren[0], KeyCodes.DOWN);
+            expect(radioGroup.value).toBe('Banana');
+
+            fixture.destroy();
+            async.done();
+          });
+        }));
+
+
+        it('should skip over disabled radios when up/down keys are pressed', inject([AsyncTestCompleter], (async) => {
+          setup(template).then((fixture: ComponentFixture) => {
+            fixture.detectChanges();
+
+            let radioGroup: MdRadioGroup = findChildByTag(fixture.debugElement, 'md-radio-group').componentInstance;
+
+            expect(radioGroup.value).toBe('Banana');
+            sendKey(fixture.debugElement.componentViewChildren[0], KeyCodes.DOWN);
+            expect(radioGroup.value).toBe('Mango');
+            sendKey(fixture.debugElement.componentViewChildren[0], KeyCodes.UP);
+            expect(radioGroup.value).toBe('Banana');
+
+            fixture.destroy();
+            async.done();
+          });
+        }));
+
+
+      });
     });
 
     describe('md-radio-button', () => {
@@ -177,6 +337,78 @@ export function main() {
           async.done();
         });
       }));
+
+      it('should default tabindex to 0 when used outside of a md-radio-group', inject([AsyncTestCompleter], (async) => {
+        let template = `<md-radio-button></md-radio-button>`;
+        setup(template).then((fixture: ComponentFixture) => {
+          fixture.detectChanges();
+          let radio: MdRadioButton = findChildByTag(fixture.debugElement, 'md-radio-button').componentInstance;
+          expect(radio.tabindex).toBe(0);
+          fixture.destroy();
+          async.done();
+        });
+      }));
+      it('should set tabindex by attribute when used outside of a md-radio-group', inject([AsyncTestCompleter], (async) => {
+        let template = `<md-radio-button tabindex="17"></md-radio-button>`;
+        setup(template).then((fixture: ComponentFixture) => {
+          fixture.detectChanges();
+          let radio: MdRadioButton = findChildByTag(fixture.debugElement, 'md-radio-button').componentInstance;
+          expect(radio.tabindex).toBe(17);
+          fixture.destroy();
+          async.done();
+        });
+      }));
+
+      it('should be checkable without a md-radio-group', inject([AsyncTestCompleter], (async) => {
+        let template = `<md-radio-button value="Apple">Apple</md-radio-button>`;
+        setup(template).then((fixture: ComponentFixture) => {
+          fixture.detectChanges();
+          let debug = findChildByTag(fixture.debugElement, 'md-radio-button');
+          let radio: MdRadioButton = debug.componentInstance;
+          expect(radio.checked).toBe(false);
+          debug.nativeElement.click();
+          expect(radio.checked).toBe(true);
+          fixture.destroy();
+          async.done();
+        });
+      }));
+
+      describe('Keyboard', () => {
+        it('should check the focused radio when the space key is pressed', inject([AsyncTestCompleter], (async) => {
+          let template = `<md-radio-button></md-radio-button>`;
+          setup(template).then((fixture: ComponentFixture) => {
+            fixture.detectChanges();
+
+            let debug = findChildByTag(fixture.debugElement, 'md-radio-button');
+            let radio: MdRadioButton = debug.componentInstance;
+
+            debug.nativeElement.click();
+            expect(radio.checked).toBe(true);
+            radio.checked = false;
+            expect(radio.checked).toBe(false);
+            sendKey(fixture.debugElement.componentViewChildren[0], KeyCodes.SPACE);
+            expect(radio.checked).toBe(true);
+
+            fixture.destroy();
+            async.done();
+          });
+        }));
+        it('should do nothing with other keypresses', inject([AsyncTestCompleter], (async) => {
+          let template = `<md-radio-button></md-radio-button>`;
+          setup(template).then((fixture: ComponentFixture) => {
+            fixture.detectChanges();
+
+            let radio: MdRadioButton = findChildByTag(fixture.debugElement, 'md-radio-button').componentInstance;
+            expect(radio.checked).toBe(false);
+            sendKey(fixture.debugElement.componentViewChildren[0], KeyCodes.UP);
+            expect(radio.checked).toBe(false);
+
+            fixture.destroy();
+            async.done();
+          });
+        }));
+
+      });
     });
 
   });