diff --git a/src/lib/menu/menu-trigger.ts b/src/lib/menu/menu-trigger.ts
index 82f6c91ddb89..32256ba3232e 100644
--- a/src/lib/menu/menu-trigger.ts
+++ b/src/lib/menu/menu-trigger.ts
@@ -195,7 +195,9 @@ export class MatMenuTrigger implements AfterContentInit, OnDestroy {
       return;
     }
 
-    this._createOverlay().attach(this._portal);
+    const overlayRef = this._createOverlay();
+    overlayRef.setDirection(this.dir);
+    overlayRef.attach(this._portal);
 
     if (this.menu.lazyContent) {
       this.menu.lazyContent.attach(this.menuData);
@@ -344,7 +346,6 @@ export class MatMenuTrigger implements AfterContentInit, OnDestroy {
       positionStrategy: this._getPosition(),
       hasBackdrop: this.menu.hasBackdrop == null ? !this.triggersSubmenu() : this.menu.hasBackdrop,
       backdropClass: this.menu.backdropClass || 'cdk-overlay-transparent-backdrop',
-      direction: this.dir,
       scrollStrategy: this._scrollStrategy()
     });
   }
diff --git a/src/lib/menu/menu.spec.ts b/src/lib/menu/menu.spec.ts
index 77c45733b78a..23130170865f 100644
--- a/src/lib/menu/menu.spec.ts
+++ b/src/lib/menu/menu.spec.ts
@@ -245,6 +245,30 @@ describe('MatMenu', () => {
     expect(overlayPane.getAttribute('dir')).toEqual('rtl');
   });
 
+  it('should update the panel direction if the trigger direction changes', () => {
+    const dirProvider = {value: 'rtl'};
+    const fixture = createComponent(SimpleMenu, [{
+      provide: Directionality, useFactory: () => dirProvider}
+    ], [FakeIcon]);
+
+    fixture.detectChanges();
+    fixture.componentInstance.trigger.openMenu();
+    fixture.detectChanges();
+
+    let overlayPane = overlayContainerElement.querySelector('.cdk-overlay-pane')!;
+    expect(overlayPane.getAttribute('dir')).toEqual('rtl');
+
+    fixture.componentInstance.trigger.closeMenu();
+    fixture.detectChanges();
+
+    dirProvider.value = 'ltr';
+    fixture.componentInstance.trigger.openMenu();
+    fixture.detectChanges();
+
+    overlayPane = overlayContainerElement.querySelector('.cdk-overlay-pane')!;
+    expect(overlayPane.getAttribute('dir')).toEqual('ltr');
+  });
+
   it('should transfer any custom classes from the host to the overlay', () => {
     const fixture = createComponent(SimpleMenu, [], [FakeIcon]);