diff --git a/src/demo-app/select/select-demo.html b/src/demo-app/select/select-demo.html
index aae5985aae20..f1e903f4824b 100644
--- a/src/demo-app/select/select-demo.html
+++ b/src/demo-app/select/select-demo.html
@@ -16,7 +16,6 @@
     </md-card>
   </div>
 
-
   <md-card>
     <md-select placeholder="Drink" [(ngModel)]="currentDrink" [required]="isRequired" [disabled]="isDisabled"
       #drinkControl="ngModel">
@@ -34,5 +33,15 @@
     <button md-button (click)="drinkControl.reset()">RESET</button>
   </md-card>
 
+  <div *ngIf="showSelect">
+    <md-card>
+      <md-select placeholder="Starter Pokemon" (change)="latestChangeEvent = $event">
+        <md-option *ngFor="let starter of pokemon" [value]="starter.value"> {{ starter.viewValue }} </md-option>
+      </md-select>
+
+      <p> Change event value: {{ latestChangeEvent?.value }} </p>
+    </md-card>
+  </div>
+
 </div>
 <div style="height: 500px">This div is for testing scrolled selects.</div>
diff --git a/src/demo-app/select/select-demo.ts b/src/demo-app/select/select-demo.ts
index ee2c542537c2..4196edbc633d 100644
--- a/src/demo-app/select/select-demo.ts
+++ b/src/demo-app/select/select-demo.ts
@@ -1,5 +1,6 @@
 import {Component} from '@angular/core';
 import {FormControl} from '@angular/forms';
+import {MdSelectChange} from '@angular/material';
 
 @Component({
     moduleId: module.id,
@@ -12,6 +13,7 @@ export class SelectDemo {
   isDisabled = false;
   showSelect = false;
   currentDrink: string;
+  latestChangeEvent: MdSelectChange;
   foodControl = new FormControl('pizza-1');
 
   foods = [
@@ -32,8 +34,13 @@ export class SelectDemo {
     {value: 'milk-8', viewValue: 'Milk'},
   ];
 
+  pokemon = [
+    {value: 'bulbasaur-0', viewValue: 'Bulbasaur'},
+    {value: 'charizard-1', viewValue: 'Charizard'},
+    {value: 'squirtle-2', viewValue: 'Squirtle'}
+  ];
+
   toggleDisabled() {
     this.foodControl.enabled ? this.foodControl.disable() : this.foodControl.enable();
   }
-
 }
diff --git a/src/lib/select/select.spec.ts b/src/lib/select/select.spec.ts
index f5e3f6b9f40b..5a075462ac1b 100644
--- a/src/lib/select/select.spec.ts
+++ b/src/lib/select/select.spec.ts
@@ -16,7 +16,7 @@ describe('MdSelect', () => {
   beforeEach(async(() => {
     TestBed.configureTestingModule({
       imports: [MdSelectModule.forRoot(), ReactiveFormsModule, FormsModule],
-      declarations: [BasicSelect, NgModelSelect, ManySelects, NgIfSelect],
+      declarations: [BasicSelect, NgModelSelect, ManySelects, NgIfSelect, SelectWithChangeEvent],
       providers: [
         {provide: OverlayContainer, useFactory: () => {
           overlayContainerElement = document.createElement('div') as HTMLElement;
@@ -1140,6 +1140,38 @@ describe('MdSelect', () => {
 
   });
 
+  describe('change event', () => {
+    let fixture: ComponentFixture<SelectWithChangeEvent>;
+    let trigger: HTMLElement;
+
+    beforeEach(() => {
+      fixture = TestBed.createComponent(SelectWithChangeEvent);
+      fixture.detectChanges();
+
+      trigger = fixture.debugElement.query(By.css('.md-select-trigger')).nativeElement;
+    });
+
+    it('should emit an event when the selected option has changed', () => {
+      trigger.click();
+      fixture.detectChanges();
+
+      (overlayContainerElement.querySelector('md-option') as HTMLElement).click();
+
+      expect(fixture.componentInstance.changeListener).toHaveBeenCalled();
+    });
+
+    it('should not emit multiple change events for the same option', () => {
+      trigger.click();
+      fixture.detectChanges();
+
+      let option = overlayContainerElement.querySelector('md-option') as HTMLElement;
+
+      option.click();
+      option.click();
+
+      expect(fixture.componentInstance.changeListener).toHaveBeenCalledTimes(1);
+    });
+  });
 });
 
 @Component({
@@ -1234,7 +1266,28 @@ class NgIfSelect {
   @ViewChild(MdSelect) select: MdSelect;
 }
 
+@Component({
+  selector: 'select-with-change-event',
+  template: `
+    <md-select (change)="changeListener($event)">
+      <md-option *ngFor="let food of foods" [value]="food">{{ food }}</md-option>
+    </md-select>
+  `
+})
+class SelectWithChangeEvent {
+  foods: string[] = [
+    'steak-0',
+    'pizza-1',
+    'tacos-2',
+    'sandwich-3',
+    'chips-4',
+    'eggs-5',
+    'pasta-6',
+    'sushi-7'
+  ];
 
+  changeListener = jasmine.createSpy('MdSelect change listener');
+}
 
 /**
  * TODO: Move this to core testing utility until Angular has event faking
diff --git a/src/lib/select/select.ts b/src/lib/select/select.ts
index e2de6c548829..dcbc1ad92374 100644
--- a/src/lib/select/select.ts
+++ b/src/lib/select/select.ts
@@ -64,6 +64,11 @@ export const SELECT_PANEL_PADDING_Y = 16;
  */
 export const SELECT_PANEL_VIEWPORT_PADDING = 8;
 
+/** Change event object that is emitted when the select value has changed. */
+export class MdSelectChange {
+  constructor(public source: MdSelect, public value: any) { }
+}
+
 @Component({
   moduleId: module.id,
   selector: 'md-select, mat-select',
@@ -214,10 +219,13 @@ export class MdSelect implements AfterContentInit, ControlValueAccessor, OnDestr
   set required(value: any) { this._required = coerceBooleanProperty(value); }
 
   /** Event emitted when the select has been opened. */
-  @Output() onOpen = new EventEmitter();
+  @Output() onOpen: EventEmitter<void> = new EventEmitter<void>();
 
   /** Event emitted when the select has been closed. */
-  @Output() onClose = new EventEmitter();
+  @Output() onClose: EventEmitter<void> = new EventEmitter<void>();
+
+  /** Event emitted when the selected value has been changed by the user. */
+  @Output() change: EventEmitter<MdSelectChange> = new EventEmitter<MdSelectChange>();
 
   constructor(private _element: ElementRef, private _renderer: Renderer,
               private _viewportRuler: ViewportRuler, @Optional() private _dir: Dir,
@@ -429,8 +437,8 @@ export class MdSelect implements AfterContentInit, ControlValueAccessor, OnDestr
   private _listenToOptions(): void {
     this.options.forEach((option: MdOption) => {
       const sub = option.onSelect.subscribe((isUserInput: boolean) => {
-        if (isUserInput) {
-          this._onChange(option.value);
+        if (isUserInput && this._selected !== option) {
+          this._emitChangeEvent(option);
         }
         this._onSelect(option);
       });
@@ -444,6 +452,12 @@ export class MdSelect implements AfterContentInit, ControlValueAccessor, OnDestr
     this._subscriptions = [];
   }
 
+  /** Emits an event when the user selects an option. */
+  private _emitChangeEvent(option: MdOption): void {
+    this._onChange(option.value);
+    this.change.emit(new MdSelectChange(this, option.value));
+  }
+
   /** Records option IDs to pass to the aria-owns property. */
   private _setOptionIds() {
     this._optionIds = this.options.map(option => option.id).join(' ');