diff --git a/src/lib/core/a11y/focus-trap.spec.ts b/src/lib/core/a11y/focus-trap.spec.ts
index 5cce6b61ebcc..279ebadb275d 100644
--- a/src/lib/core/a11y/focus-trap.spec.ts
+++ b/src/lib/core/a11y/focus-trap.spec.ts
@@ -26,7 +26,7 @@ describe('FocusTrap', () => {
 
       // Because we can't mimic a real tab press focus change in a unit test, just call the
       // focus event handler directly.
-      focusTrapInstance.wrapFocus();
+      focusTrapInstance.focusFirstTabbableElement();
 
       expect(document.activeElement.nodeName.toLowerCase())
           .toBe('input', 'Expected input element to be focused');
@@ -38,7 +38,7 @@ describe('FocusTrap', () => {
 
       // Because we can't mimic a real tab press focus change in a unit test, just call the
       // focus event handler directly.
-      focusTrapInstance.reverseWrapFocus();
+      focusTrapInstance.focusLastTabbableElement();
 
       expect(document.activeElement.nodeName.toLowerCase())
           .toBe('button', 'Expected button element to be focused');
diff --git a/src/lib/core/a11y/focus-trap.ts b/src/lib/core/a11y/focus-trap.ts
index 2196e5497e13..539a7f77bed7 100644
--- a/src/lib/core/a11y/focus-trap.ts
+++ b/src/lib/core/a11y/focus-trap.ts
@@ -15,9 +15,9 @@ import {InteractivityChecker} from './interactivity-checker';
   selector: 'focus-trap',
   // TODO(jelbourn): move this to a separate file.
   template: `
-  <div tabindex="0" (focus)="reverseWrapFocus()"></div>
+  <div tabindex="0" (focus)="focusLastTabbableElement()"></div>
   <div #trappedContent><ng-content></ng-content></div>
-  <div tabindex="0" (focus)="wrapFocus()"></div>`,
+  <div tabindex="0" (focus)="focusFirstTabbableElement()"></div>`,
   encapsulation: ViewEncapsulation.None,
 })
 export class FocusTrap {
@@ -25,16 +25,16 @@ export class FocusTrap {
 
   constructor(private _checker: InteractivityChecker) { }
 
-  /** Wrap focus from the end of the trapped region to the beginning. */
-  wrapFocus() {
+  /** Focuses the first tabbable element within the focus trap region. */
+  focusFirstTabbableElement() {
     let redirectToElement = this._getFirstTabbableElement(this.trappedContent.nativeElement);
     if (redirectToElement) {
       redirectToElement.focus();
     }
   }
 
-  /** Wrap focus from the beginning of the trapped region to the end. */
-  reverseWrapFocus() {
+  /** Focuses the last tabbable element within the focus trap region. */
+  focusLastTabbableElement() {
     let redirectToElement = this._getLastTabbableElement(this.trappedContent.nativeElement);
     if (redirectToElement) {
       redirectToElement.focus();
diff --git a/src/lib/core/a11y/index.ts b/src/lib/core/a11y/index.ts
new file mode 100644
index 000000000000..197cd0fa28d2
--- /dev/null
+++ b/src/lib/core/a11y/index.ts
@@ -0,0 +1,22 @@
+import {NgModule, ModuleWithProviders} from '@angular/core';
+import {FocusTrap} from './focus-trap';
+import {MdLiveAnnouncer} from './live-announcer';
+import {InteractivityChecker} from './interactivity-checker';
+
+export {FocusTrap} from './focus-trap';
+export {MdLiveAnnouncer} from './live-announcer';
+export {InteractivityChecker} from './interactivity-checker';
+
+
+@NgModule({
+  declarations: [FocusTrap],
+  exports: [FocusTrap],
+})
+export class A11yModule {
+  static forRoot(): ModuleWithProviders {
+    return {
+      ngModule: A11yModule,
+      providers: [MdLiveAnnouncer, InteractivityChecker],
+    };
+  }
+}
diff --git a/src/lib/core/core.ts b/src/lib/core/core.ts
index c7362de69466..2e044b692dde 100644
--- a/src/lib/core/core.ts
+++ b/src/lib/core/core.ts
@@ -4,7 +4,8 @@ import {RtlModule} from './rtl/dir';
 import {MdRippleModule} from './ripple/ripple';
 import {PortalModule} from './portal/portal-directives';
 import {OverlayModule} from './overlay/overlay-directives';
-import {MdLiveAnnouncer} from './a11y/live-announcer';
+import {A11yModule} from './a11y/index';
+
 
 // RTL
 export {Dir, LayoutDirection, RtlModule} from './rtl/dir';
@@ -77,14 +78,14 @@ export * from './keyboard/keycodes';
 
 
 @NgModule({
-  imports: [MdLineModule, RtlModule, MdRippleModule, PortalModule, OverlayModule],
-  exports: [MdLineModule, RtlModule, MdRippleModule, PortalModule, OverlayModule],
+  imports: [MdLineModule, RtlModule, MdRippleModule, PortalModule, OverlayModule, A11yModule],
+  exports: [MdLineModule, RtlModule, MdRippleModule, PortalModule, OverlayModule, A11yModule],
 })
 export class MdCoreModule {
   static forRoot(): ModuleWithProviders {
     return {
       ngModule: MdCoreModule,
-      providers: [MdLiveAnnouncer]
+      providers: [A11yModule.forRoot().providers],
     };
   }
 }
diff --git a/src/lib/dialog/dialog-container.html b/src/lib/dialog/dialog-container.html
index 4d5e533eef18..f1c4963b9627 100644
--- a/src/lib/dialog/dialog-container.html
+++ b/src/lib/dialog/dialog-container.html
@@ -1 +1,3 @@
-<template portalHost></template>
+<focus-trap>
+  <template portalHost></template>
+</focus-trap>
diff --git a/src/lib/dialog/dialog-container.ts b/src/lib/dialog/dialog-container.ts
index 8f7345a87f28..cc38a229c550 100644
--- a/src/lib/dialog/dialog-container.ts
+++ b/src/lib/dialog/dialog-container.ts
@@ -1,12 +1,16 @@
-import {Component, ComponentRef, ViewChild, ViewEncapsulation} from '@angular/core';
 import {
-  BasePortalHost,
-  ComponentPortal,
-  PortalHostDirective,
-  TemplatePortal
-} from '../core';
+    Component,
+    ComponentRef,
+    ViewChild,
+    ViewEncapsulation,
+    NgZone,
+    OnDestroy
+} from '@angular/core';
+import {BasePortalHost, ComponentPortal, PortalHostDirective, TemplatePortal} from '../core';
 import {MdDialogConfig} from './dialog-config';
 import {MdDialogContentAlreadyAttachedError} from './dialog-errors';
+import {FocusTrap} from '../core/a11y/focus-trap';
+import 'rxjs/add/operator/first';
 
 
 /**
@@ -23,23 +27,52 @@ import {MdDialogContentAlreadyAttachedError} from './dialog-errors';
   },
   encapsulation: ViewEncapsulation.None,
 })
-export class MdDialogContainer extends BasePortalHost {
+export class MdDialogContainer extends BasePortalHost implements OnDestroy {
   /** The portal host inside of this container into which the dialog content will be loaded. */
   @ViewChild(PortalHostDirective) _portalHost: PortalHostDirective;
 
+  /** The directive that traps and manages focus within the dialog. */
+  @ViewChild(FocusTrap) _focusTrap: FocusTrap;
+
+  /** Element that was focused before the dialog was opened. Save this to restore upon close. */
+  private _elementFocusedBeforeDialogWasOpened: Element = null;
+
   /** The dialog configuration. */
   dialogConfig: MdDialogConfig;
 
+  constructor(private _ngZone: NgZone) {
+    super();
+  }
+
   /** Attach a portal as content to this dialog container. */
   attachComponentPortal<T>(portal: ComponentPortal<T>): ComponentRef<T> {
     if (this._portalHost.hasAttached()) {
       throw new MdDialogContentAlreadyAttachedError();
     }
 
-    return this._portalHost.attachComponentPortal(portal);
+    let attachResult = this._portalHost.attachComponentPortal(portal);
+
+    // If were to attempt to focus immediately, then the content of the dialog would not yet be
+    // ready in instances where change detection has to run first. To deal with this, we simply
+    // wait for the microtask queue to be empty.
+    this._ngZone.onMicrotaskEmpty.first().subscribe(() => {
+      this._elementFocusedBeforeDialogWasOpened = document.activeElement;
+      this._focusTrap.focusFirstTabbableElement();
+    });
+
+    return attachResult;
   }
 
   attachTemplatePortal(portal: TemplatePortal): Map<string, any> {
     throw Error('Not yet implemented');
   }
+
+  ngOnDestroy() {
+    // When the dialog is destroyed, return focus to the element that originally had it before
+    // the dialog was opened. Wait for the DOM to finish settling before changing the focus so
+    // that it doesn't end up back on the <body>.
+    this._ngZone.onMicrotaskEmpty.first().subscribe(() => {
+      (this._elementFocusedBeforeDialogWasOpened as HTMLElement).focus();
+    });
+  }
 }
diff --git a/src/lib/dialog/dialog.spec.ts b/src/lib/dialog/dialog.spec.ts
index a1465652680e..432e21c675e9 100644
--- a/src/lib/dialog/dialog.spec.ts
+++ b/src/lib/dialog/dialog.spec.ts
@@ -1,4 +1,11 @@
-import {inject, async, ComponentFixture, TestBed} from '@angular/core/testing';
+import {
+  inject,
+  async,
+  fakeAsync,
+  flushMicrotasks,
+  ComponentFixture,
+  TestBed,
+} from '@angular/core/testing';
 import {NgModule, Component, Directive, ViewChild, ViewContainerRef} from '@angular/core';
 import {MdDialog, MdDialogModule} from './dialog';
 import {OverlayContainer} from '../core';
@@ -100,6 +107,55 @@ describe('MdDialog', () => {
 
     expect(overlayContainerElement.querySelector('md-dialog-container')).toBeFalsy();
   });
+
+  describe('focus management', () => {
+
+    // When testing focus, all of the elements must be in the DOM.
+    beforeEach(() => {
+      document.body.appendChild(overlayContainerElement);
+    });
+
+    afterEach(() => {
+      document.body.removeChild(overlayContainerElement);
+    });
+
+    it('should focus the first tabbable element of the dialog on open', fakeAsync(() => {
+      let config = new MdDialogConfig();
+      config.viewContainerRef = testViewContainerRef;
+
+      dialog.open(PizzaMsg, config);
+      viewContainerFixture.detectChanges();
+      flushMicrotasks();
+
+      expect(document.activeElement.tagName)
+          .toBe('INPUT', 'Expected first tabbable element (input) in the dialog to be focused.');
+    }));
+
+    it('should re-focus trigger element when dialog closes', fakeAsync(() => {
+      // Create a element that has focus before the dialog is opened.
+      let button = document.createElement('button');
+      button.id = 'dialog-trigger';
+      document.body.appendChild(button);
+      button.focus();
+
+      let config = new MdDialogConfig();
+      config.viewContainerRef = testViewContainerRef;
+
+      let dialogRef = dialog.open(PizzaMsg, config);
+      viewContainerFixture.detectChanges();
+      flushMicrotasks();
+
+      expect(document.activeElement.id)
+          .not.toBe('dialog-trigger', 'Expected the focus to change when dialog was opened.');
+
+      dialogRef.close();
+      viewContainerFixture.detectChanges();
+      flushMicrotasks();
+
+      expect(document.activeElement.id)
+          .toBe('dialog-trigger', 'Expected that the trigger was refocused after dialog close');
+    }));
+  });
 });
 
 
@@ -121,7 +177,7 @@ class ComponentWithChildViewContainer {
 }
 
 /** Simple component for testing ComponentPortal. */
-@Component({template: '<p>Pizza</p>'})
+@Component({template: '<p>Pizza</p> <input> <button>Close</button>'})
 class PizzaMsg {
   constructor(public dialogRef: MdDialogRef<PizzaMsg>) { }
 }
diff --git a/src/lib/dialog/dialog.ts b/src/lib/dialog/dialog.ts
index cace47f1cf53..8709cd6c51a3 100644
--- a/src/lib/dialog/dialog.ts
+++ b/src/lib/dialog/dialog.ts
@@ -13,18 +13,18 @@ import {MdDialogConfig} from './dialog-config';
 import {MdDialogRef} from './dialog-ref';
 import {DialogInjector} from './dialog-injector';
 import {MdDialogContainer} from './dialog-container';
+import {A11yModule} from '../core/a11y/index';
 
 export {MdDialogConfig} from './dialog-config';
 export {MdDialogRef} from './dialog-ref';
 
 
-// TODO(jelbourn): add shortcuts for `alert` and `confirm`.
 // TODO(jelbourn): add support for opening with a TemplateRef
 // TODO(jelbourn): add `closeAll` method
-// TODO(jelbourn): add backdrop
 // TODO(jelbourn): default dialog config
-// TODO(jelbourn): focus trapping
-// TODO(jelbourn): potentially change API from accepting component constructor to component factory.
+// TODO(jelbourn): escape key closes dialog
+// TODO(jelbourn): dialog content directives (e.g., md-dialog-header)
+// TODO(jelbourn): animations
 
 
 
@@ -123,7 +123,7 @@ export class MdDialog {
 
 
 @NgModule({
-  imports: [OverlayModule, PortalModule],
+  imports: [OverlayModule, PortalModule, A11yModule],
   exports: [MdDialogContainer],
   declarations: [MdDialogContainer],
   entryComponents: [MdDialogContainer],
@@ -132,7 +132,7 @@ export class MdDialogModule {
   static forRoot(): ModuleWithProviders {
     return {
       ngModule: MdDialogModule,
-      providers: [MdDialog, OVERLAY_PROVIDERS],
+      providers: [MdDialog, OVERLAY_PROVIDERS, A11yModule.forRoot().providers],
     };
   }
 }