diff --git a/src/lib/button-toggle/button-toggle-errors.ts b/src/lib/button-toggle/button-toggle-errors.ts
new file mode 100644
index 000000000000..996173db53ae
--- /dev/null
+++ b/src/lib/button-toggle/button-toggle-errors.ts
@@ -0,0 +1,12 @@
+import {MdError} from '../core';
+
+/**
+ * Exception thrown when trying to assign a non-array value
+ * to a button toggle group in multiple selection mode.
+ * @docs-private
+ */
+export class MdButtonToggleGroupNonArrayValueError extends MdError {
+  constructor() {
+    super('Cannot assign non-array value to button toggle group in `multiple` mode.');
+  }
+}
diff --git a/src/lib/button-toggle/button-toggle.html b/src/lib/button-toggle/button-toggle.html
index face84340cfa..b511e0a6fafc 100644
--- a/src/lib/button-toggle/button-toggle.html
+++ b/src/lib/button-toggle/button-toggle.html
@@ -1,7 +1,7 @@
-<label [attr.for]="inputId" class="mat-button-toggle-label">
+<label [attr.for]="_inputId" class="mat-button-toggle-label">
   <input #input class="mat-button-toggle-input cdk-visually-hidden"
          [type]="_type"
-         [id]="inputId"
+         [id]="_inputId"
          [checked]="checked"
          [disabled]="disabled"
          [name]="name"
diff --git a/src/lib/button-toggle/button-toggle.spec.ts b/src/lib/button-toggle/button-toggle.spec.ts
index d6907b557ccb..f4cbbaede323 100644
--- a/src/lib/button-toggle/button-toggle.spec.ts
+++ b/src/lib/button-toggle/button-toggle.spec.ts
@@ -1,19 +1,14 @@
-import {
-  async,
-  fakeAsync,
-  tick,
-  ComponentFixture,
-  TestBed,
-} from '@angular/core/testing';
+import {async, ComponentFixture, TestBed} from '@angular/core/testing';
 import {NgControl, FormsModule, ReactiveFormsModule, FormControl} from '@angular/forms';
 import {Component, DebugElement} from '@angular/core';
 import {By} from '@angular/platform-browser';
 import {
     MdButtonToggleGroup,
     MdButtonToggle,
-    MdButtonToggleGroupMultiple,
-    MdButtonToggleChange, MdButtonToggleModule,
-} from './button-toggle';
+    MdButtonToggleChange,
+    MdButtonToggleModule,
+    MdButtonToggleGroupNonArrayValueError,
+} from './index';
 
 
 describe('MdButtonToggle', () => {
@@ -136,7 +131,7 @@ describe('MdButtonToggle', () => {
       expect(groupNativeElement.classList).toContain('mat-button-toggle-vertical');
     });
 
-    it('should emit a change event from button toggles', fakeAsync(() => {
+    it('should emit a change event from button toggles', () => {
       expect(buttonToggleInstances[0].checked).toBe(false);
 
       let changeSpy = jasmine.createSpy('button-toggle change listener');
@@ -145,34 +140,43 @@ describe('MdButtonToggle', () => {
 
       buttonToggleLabelElements[0].click();
       fixture.detectChanges();
-      tick();
       expect(changeSpy).toHaveBeenCalled();
 
       buttonToggleLabelElements[0].click();
       fixture.detectChanges();
-      tick();
 
       // The default browser behavior is to not emit a change event, when the value was set
       // to false. That's because the current input type is set to `radio`
       expect(changeSpy).toHaveBeenCalledTimes(1);
-    }));
+    });
 
-    it('should emit a change event from the button toggle group', fakeAsync(() => {
+    it('should emit a change event from the button toggle group', () => {
       expect(groupInstance.value).toBeFalsy();
 
       let changeSpy = jasmine.createSpy('button-toggle-group change listener');
       groupInstance.change.subscribe(changeSpy);
 
-      groupInstance.value = 'test1';
+      buttonToggleLabelElements[0].click();
       fixture.detectChanges();
-      tick();
       expect(changeSpy).toHaveBeenCalled();
 
-      groupInstance.value = 'test2';
+      buttonToggleLabelElements[1].click();
       fixture.detectChanges();
-      tick();
       expect(changeSpy).toHaveBeenCalledTimes(2);
-    }));
+    });
+
+    it('should not emit a change event if the action was not generated by the user', () => {
+      let changeSpy = jasmine.createSpy('button-toggle-group change listener');
+      groupInstance.change.subscribe(changeSpy);
+
+      groupInstance.value = 'test1';
+      fixture.detectChanges();
+      expect(changeSpy).not.toHaveBeenCalled();
+
+      buttonToggleLabelElements[1].click();
+      fixture.detectChanges();
+      expect(changeSpy).toHaveBeenCalled();
+    });
 
     it('should update the group and button toggles when updating the group value', () => {
       expect(groupInstance.value).toBeFalsy();
@@ -255,17 +259,16 @@ describe('MdButtonToggle', () => {
       for (let buttonToggle of buttonToggleInstances) {
         expect(buttonToggle.checked).toBe(groupInstance.value === buttonToggle.value);
       }
-      expect(groupInstance.selected.value).toBe(groupInstance.value);
+      expect((groupInstance.selected as MdButtonToggle).value).toBe(groupInstance.value);
     });
 
-    it('should have the correct ngControl state initially and after interaction', fakeAsync(() => {
+    it('should have the correct ngControl state initially and after interaction', () => {
       expect(groupNgControl.valid).toBe(true);
       expect(groupNgControl.pristine).toBe(true);
       expect(groupNgControl.touched).toBe(false);
 
       buttonToggleInstances[1].checked = true;
       fixture.detectChanges();
-      tick();
 
       expect(groupNgControl.valid).toBe(true);
       expect(groupNgControl.pristine).toBe(false);
@@ -274,63 +277,43 @@ describe('MdButtonToggle', () => {
       let nativeRadioLabel = buttonToggleDebugElements[2].query(By.css('label')).nativeElement;
       nativeRadioLabel.click();
       fixture.detectChanges();
-      tick();
 
       expect(groupNgControl.valid).toBe(true);
       expect(groupNgControl.pristine).toBe(false);
       expect(groupNgControl.touched).toBe(true);
-    }));
+    });
 
-    it('should update the ngModel value when selecting a button toggle', fakeAsync(() => {
+    it('should update the ngModel value when selecting a button toggle', () => {
       buttonToggleInstances[1].checked = true;
       fixture.detectChanges();
 
-      tick();
-
       expect(testComponent.modelValue).toBe('green');
-    }));
+    });
   });
 
   describe('button toggle group with ngModel and change event', () => {
     let fixture: ComponentFixture<ButtonToggleGroupWithNgModel>;
-    let groupDebugElement: DebugElement;
-    let groupNativeElement: HTMLElement;
-    let buttonToggleDebugElements: DebugElement[];
-    let buttonToggleNativeElements: HTMLElement[];
-    let groupInstance: MdButtonToggleGroup;
-    let buttonToggleInstances: MdButtonToggle[];
+    let labels: DebugElement[];
     let testComponent: ButtonToggleGroupWithNgModel;
-    let groupNgControl: NgControl;
 
     beforeEach(async(() => {
       fixture = TestBed.createComponent(ButtonToggleGroupWithNgModel);
+      fixture.detectChanges();
 
       testComponent = fixture.debugElement.componentInstance;
-
-      groupDebugElement = fixture.debugElement.query(By.directive(MdButtonToggleGroup));
-      groupNativeElement = groupDebugElement.nativeElement;
-      groupInstance = groupDebugElement.injector.get(MdButtonToggleGroup);
-      groupNgControl = groupDebugElement.injector.get(NgControl);
-
-      buttonToggleDebugElements = fixture.debugElement.queryAll(By.directive(MdButtonToggle));
-      buttonToggleNativeElements =
-          buttonToggleDebugElements.map(debugEl => debugEl.nativeElement);
-      buttonToggleInstances = buttonToggleDebugElements.map(debugEl => debugEl.componentInstance);
-
-      fixture.detectChanges();
+      labels = fixture.debugElement.queryAll(By.css('label'));
     }));
 
-    it('should update the model before firing change event', fakeAsync(() => {
+    it('should update the model before firing change event', () => {
       expect(testComponent.modelValue).toBeUndefined();
       expect(testComponent.lastEvent).toBeUndefined();
 
-      groupInstance.value = 'red';
+      labels[0].nativeElement.click();
       fixture.detectChanges();
 
-      tick();
       expect(testComponent.modelValue).toBe('red');
       expect(testComponent.lastEvent.value).toBe('red');
-    }));
+    });
 
   });
 
@@ -341,13 +324,14 @@ describe('MdButtonToggle', () => {
       let testComponent = fixture.debugElement.componentInstance;
       let groupDebugElement = fixture.debugElement.query(By.directive(MdButtonToggleGroup));
       let groupInstance: MdButtonToggleGroup = groupDebugElement.injector.get(MdButtonToggleGroup);
+      let labels = fixture.debugElement.queryAll(By.css('label'));
 
       fixture.detectChanges();
 
       expect(groupInstance.value).toBe('red');
       expect(testComponent.lastEvent).toBeFalsy();
 
-      groupInstance.value = 'green';
+      labels[1].nativeElement.click();
       fixture.detectChanges();
 
       expect(groupInstance.value).toBe('green');
@@ -363,7 +347,7 @@ describe('MdButtonToggle', () => {
     let buttonToggleDebugElements: DebugElement[];
     let buttonToggleNativeElements: HTMLElement[];
     let buttonToggleLabelElements: HTMLLabelElement[];
-    let groupInstance: MdButtonToggleGroupMultiple;
+    let groupInstance: MdButtonToggleGroup;
     let buttonToggleInstances: MdButtonToggle[];
     let testComponent: ButtonTogglesInsideButtonToggleGroupMultiple;
 
@@ -373,9 +357,9 @@ describe('MdButtonToggle', () => {
 
       testComponent = fixture.debugElement.componentInstance;
 
-      groupDebugElement = fixture.debugElement.query(By.directive(MdButtonToggleGroupMultiple));
+      groupDebugElement = fixture.debugElement.query(By.directive(MdButtonToggleGroup));
       groupNativeElement = groupDebugElement.nativeElement;
-      groupInstance = groupDebugElement.injector.get(MdButtonToggleGroupMultiple);
+      groupInstance = groupDebugElement.injector.get(MdButtonToggleGroup);
 
       buttonToggleDebugElements = fixture.debugElement.queryAll(By.directive(MdButtonToggle));
       buttonToggleNativeElements = buttonToggleDebugElements
@@ -393,6 +377,12 @@ describe('MdButtonToggle', () => {
       expect(buttonToggleInstances[0].checked).toBe(false);
     });
 
+    it('should throw an exception when trying to assign a non-array value', () => {
+      expect(() => {
+        groupInstance.value = 'green';
+      }).toThrowError(MdButtonToggleGroupNonArrayValueError);
+    });
+
     it('should check a button toggle when clicked', () => {
       expect(buttonToggleInstances.every(buttonToggle => !buttonToggle.checked)).toBe(true);
 
@@ -441,7 +431,7 @@ describe('MdButtonToggle', () => {
       expect(buttonToggleInstances[0].checked).toBe(false);
     });
 
-    it('should emit a change event for state changes', fakeAsync(() => {
+    it('should emit a change event for state changes', () => {
 
       expect(buttonToggleInstances[0].checked).toBe(false);
 
@@ -450,18 +440,16 @@ describe('MdButtonToggle', () => {
 
       buttonToggleLabelElements[0].click();
       fixture.detectChanges();
-      tick();
       expect(changeSpy).toHaveBeenCalled();
 
       buttonToggleLabelElements[0].click();
       fixture.detectChanges();
-      tick();
 
       // The default browser behavior is to emit an event, when the value was set
       // to false. That's because the current input type is set to `checkbox` when
       // using the multiple mode.
       expect(changeSpy).toHaveBeenCalledTimes(2);
-    }));
+    });
 
   });
 
@@ -544,7 +532,7 @@ describe('MdButtonToggle', () => {
       expect(buttonToggleInstance.checked).toBe(false);
     });
 
-    it('should emit a change event for state changes', fakeAsync(() => {
+    it('should emit a change event for state changes', () => {
 
       expect(buttonToggleInstance.checked).toBe(false);
 
@@ -553,17 +541,15 @@ describe('MdButtonToggle', () => {
 
       buttonToggleLabelElement.click();
       fixture.detectChanges();
-      tick();
       expect(changeSpy).toHaveBeenCalled();
 
       buttonToggleLabelElement.click();
       fixture.detectChanges();
-      tick();
 
       // The default browser behavior is to emit an event, when the value was set
       // to false. That's because the current input type is set to `checkbox`.
       expect(changeSpy).toHaveBeenCalledTimes(2);
-    }));
+    });
 
     it('should focus on underlying input element when focus() is called', () => {
       let nativeRadioInput = buttonToggleDebugElement.query(By.css('input')).nativeElement;
diff --git a/src/lib/button-toggle/button-toggle.ts b/src/lib/button-toggle/button-toggle.ts
index a34cbb15134b..a94914dc2923 100644
--- a/src/lib/button-toggle/button-toggle.ts
+++ b/src/lib/button-toggle/button-toggle.ts
@@ -1,13 +1,10 @@
 import {
-    NgModule,
-    ModuleWithProviders,
     Component,
     ContentChildren,
     Directive,
     ElementRef,
     Renderer,
     EventEmitter,
-    HostBinding,
     Input,
     OnInit,
     Optional,
@@ -16,20 +13,15 @@ import {
     ViewChild,
     ViewEncapsulation,
     forwardRef,
-    AfterViewInit
+    AfterContentInit,
+    OnDestroy,
 } from '@angular/core';
-import {NG_VALUE_ACCESSOR, ControlValueAccessor, FormsModule} from '@angular/forms';
+import {NG_VALUE_ACCESSOR, ControlValueAccessor} from '@angular/forms';
 import {Observable} from 'rxjs/Observable';
-import {
-  UniqueSelectionDispatcher,
-  coerceBooleanProperty,
-  UNIQUE_SELECTION_DISPATCHER_PROVIDER,
-  CompatibilityModule,
-} from '../core';
-
-/** Acceptable types for a button toggle. */
-export type ToggleType = 'checkbox' | 'radio';
-
+import {Subscription} from 'rxjs/Subscription';
+import {coerceBooleanProperty, SelectionModel} from '../core';
+import {MdButtonToggleGroupNonArrayValueError} from './button-toggle-errors';
+import 'rxjs/add/observable/merge';
 
 
 /**
@@ -43,17 +35,21 @@ export const MD_BUTTON_TOGGLE_GROUP_VALUE_ACCESSOR: any = {
   multi: true
 };
 
-var _uniqueIdCounter = 0;
+let _uniqueIdCounter = 0;
+
+/** Change event object emitted by MdButtonToggleGroup. */
+export class MdButtonToggleGroupChange {
+  constructor(public source: MdButtonToggleGroup, public value: any|any[]) { }
+}
 
 /** Change event object emitted by MdButtonToggle. */
 export class MdButtonToggleChange {
-  source: MdButtonToggle;
-  value: any;
+  constructor(public source: MdButtonToggle, public value: any, public isUserInput = false) { }
 }
 
 /** Exclusive selection button toggle group that behaves like a radio-button group. */
 @Directive({
-  selector: 'md-button-toggle-group:not([multiple]), mat-button-toggle-group:not([multiple])',
+  selector: 'md-button-toggle-group, mat-button-toggle-group',
   providers: [MD_BUTTON_TOGGLE_GROUP_VALUE_ACCESSOR],
   host: {
     '[class.mat-button-toggle-group]': 'true',
@@ -62,10 +58,7 @@ export class MdButtonToggleChange {
   },
   exportAs: 'mdButtonToggleGroup',
 })
-export class MdButtonToggleGroup implements AfterViewInit, ControlValueAccessor {
-  /** The value for the button toggle group. Should match currently selected button toggle. */
-  private _value: any = null;
-
+export class MdButtonToggleGroup implements AfterContentInit, OnDestroy, ControlValueAccessor {
   /** The HTML name attribute applied to toggles in this group. */
   private _name: string = `md-button-toggle-group-${_uniqueIdCounter++}`;
 
@@ -75,41 +68,72 @@ export class MdButtonToggleGroup implements AfterViewInit, ControlValueAccessor
   /** Whether the button toggle group should be vertical. */
   private _vertical: boolean = false;
 
-  /** The currently selected button toggle, should match the value. */
-  private _selected: MdButtonToggle = null;
+  /** Whether the user should be allowed to select multiple items. */
+  private _multiple: boolean = false;
+
+  /** Keeps track of the selected values. */
+  private _model: SelectionModel<MdButtonToggle>;
+
+  /** Subscription to selected state changes of the child toggles. */
+  private _changeSubscription: Subscription;
+
+  /** Subscription to changes in the list of toggles. */
+  private _toggleSubscription: Subscription;
+
+  /** Subscription to changes in the SelectionModel. */
+  private _modelSubscription: Subscription;
 
-  /** Whether the button toggle group is initialized or not. */
-  private _isInitialized: boolean = false;
+  /** Used for storing any value that is being set before the component has been initialized. */
+  private _tempValue: any;
 
   /**
    * The method to be called in order to update ngModel.
    * Now `ngModel` binding is not supported in multiple selection mode.
    */
-  private _controlValueAccessorChangeFn: (value: any) => void = (value) => {};
+  private _controlValueAccessorChangeFn = (value: any) => {};
 
   /** onTouch function registered via registerOnTouch (ControlValueAccessor). */
-  onTouched: () => any = () => {};
+  onTouched = () => {};
 
   /** Event emitted when the group's value changes. */
-  private _change: EventEmitter<MdButtonToggleChange> = new EventEmitter<MdButtonToggleChange>();
-  @Output() get change(): Observable<MdButtonToggleChange> {
+  private _change = new EventEmitter<MdButtonToggleGroupChange>();
+  @Output() get change(): Observable<MdButtonToggleGroupChange> {
     return this._change.asObservable();
   }
 
   /** Child button toggle buttons. */
   @ContentChildren(forwardRef(() => MdButtonToggle))
-  _buttonToggles: QueryList<MdButtonToggle> = null;
+  _toggles: QueryList<MdButtonToggle> = null;
+
+  ngAfterContentInit(): void {
+    this._model = new SelectionModel<MdButtonToggle>(this.multiple,
+        this._tempValue ? [].concat(this._tempValue) : null);
+
+    if (this._tempValue) {
+      this._selectByValue(this._tempValue);
+    }
 
-  ngAfterViewInit() {
-    this._isInitialized = true;
+    // Listen to changes in child toggles and re-subscribe when toggles are adde/removed.
+    this._subscribeToToggleChanges();
+    this._toggleSubscription = this._toggles.changes.subscribe(() => {
+      this._subscribeToToggleChanges();
+    });
+
+    // Sync changes to the SelectionModel with the value accessor.
+    this._modelSubscription = this._model.onChange.subscribe(() => {
+      this._controlValueAccessorChangeFn(this.value);
+    });
   }
 
-  /** `name` attribute for the underlying `input` element. */
-  @Input()
-  get name(): string {
-    return this._name;
+  ngOnDestroy(): void {
+    this._dropChangeSubscription();
+    this._toggleSubscription.unsubscribe();
+    this._modelSubscription.unsubscribe();
   }
 
+  /** `name` attribute for the underlying `input` element. */
+  @Input()
+  get name(): string { return this._name; }
   set name(value: string) {
     this._name = value;
     this._updateButtonToggleNames();
@@ -117,93 +141,110 @@ export class MdButtonToggleGroup implements AfterViewInit, ControlValueAccessor
 
   /** Whether the toggle group is disabled. */
   @Input()
-  get disabled(): boolean {
-    return this._disabled;
-  }
-
-  set disabled(value) {
-    this._disabled = coerceBooleanProperty(value);
-  }
+  get disabled(): boolean { return this._disabled; }
+  set disabled(value) { this._disabled = coerceBooleanProperty(value); }
 
   /** Whether the toggle group is vertical. */
   @Input()
-  get vertical(): boolean {
-    return this._vertical;
-  }
+  get vertical(): boolean { return this._vertical; }
+  set vertical(value) { this._vertical = coerceBooleanProperty(value); }
+
+  /** Whether the toggle group is disabled. */
+  @Input()
+  get multiple(): boolean { return this._multiple; }
+  set multiple(value) { this._multiple = coerceBooleanProperty(value); }
 
-  set vertical(value) {
-    this._vertical = coerceBooleanProperty(value);
+  /** The selected value in the input group. */
+  get selected(): MdButtonToggle|MdButtonToggle[] {
+    return this.multiple ? this._model.selected : this._model.selected[0];
   }
 
   /** Value of the toggle group. */
   @Input()
   get value(): any {
-    return this._value;
+    if (this._model && !this._model.isEmpty()) {
+      return Array.isArray(this.selected) ?
+        this.selected.map(toggle => toggle.value) :
+        this.selected.value;
+    }
   }
 
-  set value(newValue: any) {
-    if (this._value != newValue) {
-      this._value = newValue;
-
-      this._updateSelectedButtonToggleFromValue();
+  set value(newValue: any|any[]) {
+    if (this._model) {
+      this._selectByValue(newValue);
+    } else {
+      this._tempValue = newValue;
+    }
+  }
 
-      // Only emit a change event if the view is completely initialized.
-      // We don't want to emit a change event for the initial values.
-      if (this._isInitialized) {
-        this._emitChangeEvent();
-      }
+  /** Syncs the `name` attribute of the child toggles with the `name` of the group. */
+  private _updateButtonToggleNames(): void {
+    if (this._toggles) {
+      this._toggles.forEach(toggle => toggle.name = this._name);
     }
   }
 
-  /** Whether the toggle group is selected. */
-  @Input()
-  get selected() {
-    return this._selected;
+  /** Unsubscribes from the change listener on the child toggles. */
+  private _dropChangeSubscription(): void {
+    if (this._changeSubscription) {
+      this._changeSubscription.unsubscribe();
+      this._changeSubscription = null;
+    }
   }
 
-  set selected(selected: MdButtonToggle) {
-    this._selected = selected;
-    this.value = selected ? selected.value : null;
+  /** Subscribes to user-generated changes of the button toggles. */
+  private _subscribeToToggleChanges(): void {
+    let source = Observable.merge.apply(Observable, this._toggles.map(toggle => toggle.change));
 
-    if (selected && !selected.checked) {
-      selected.checked = true;
-    }
+    this._dropChangeSubscription();
+    this._changeSubscription = source.subscribe((event: MdButtonToggleChange) => {
+      let toggleButton = (button: MdButtonToggle, isSelected: boolean) => {
+        if (isSelected) {
+          this._model.select(button);
+        } else {
+          this._model.deselect(button);
+        }
+
+        button._setChecked(isSelected);
+      };
+
+      if (this.multiple) {
+        toggleButton(event.source, event.source.checked);
+      } else {
+        this._model.clear();
+        this._toggles.forEach(button => toggleButton(button, button === event.source));
+      }
+
+      if (event.isUserInput) {
+        this._change.emit(new MdButtonToggleGroupChange(this, this.value));
+        this.onTouched();
+      }
+    });
   }
 
-  private _updateButtonToggleNames(): void {
-    if (this._buttonToggles) {
-      this._buttonToggles.forEach((toggle) => {
-        toggle.name = this._name;
-      });
+  /** Sets the selected button toggles based on a value. */
+  private _selectByValue(newValue: any|any[]) {
+    if (this.multiple && newValue && !Array.isArray(newValue)) {
+      throw new MdButtonToggleGroupNonArrayValueError();
     }
-  }
 
-  // TODO: Refactor into shared code with radio.
-  private _updateSelectedButtonToggleFromValue(): void {
-    let isAlreadySelected = this._selected != null && this._selected.value == this._value;
-
-    if (this._buttonToggles != null && !isAlreadySelected) {
-      let matchingButtonToggle = this._buttonToggles.filter(
-          buttonToggle => buttonToggle.value == this._value)[0];
-
-      if (matchingButtonToggle) {
-        this.selected = matchingButtonToggle;
-      } else if (this.value == null) {
-        this.selected = null;
-        this._buttonToggles.forEach(buttonToggle => {
-          buttonToggle.checked = false;
-        });
+    let select = (value: any) => {
+      let correspondingToggle = this._toggles.find(toggle => toggle.value === value);
+
+      if (correspondingToggle && !this._model.isSelected(correspondingToggle)) {
+        correspondingToggle._setChecked(true);
+        this._model.select(correspondingToggle);
       }
-    }
-  }
+    };
 
-  /** Dispatch change event with current selection and group value. */
-  private _emitChangeEvent(): void {
-    let event = new MdButtonToggleChange();
-    event.source = this._selected;
-    event.value = this._value;
-    this._controlValueAccessorChangeFn(event.value);
-    this._change.emit(event);
+    this._model.clear();
+
+    if (this.multiple) {
+      newValue.forEach((current: any) => select(current));
+    } else {
+      this._toggles.forEach(toggle => toggle._setChecked(false));
+      select(newValue);
+    }
   }
 
   /**
@@ -241,44 +282,6 @@ export class MdButtonToggleGroup implements AfterViewInit, ControlValueAccessor
   }
 }
 
-/** Multiple selection button-toggle group. `ngModel` is not supported in this mode. */
-@Directive({
-  selector: 'md-button-toggle-group[multiple], mat-button-toggle-group[multiple]',
-  exportAs: 'mdButtonToggleGroup',
-  host: {
-    '[class.mat-button-toggle-group]': 'true',
-    '[class.mat-button-toggle-vertical]': 'vertical'
-  }
-})
-export class MdButtonToggleGroupMultiple {
-  /** Disables all toggles in the group. */
-  private _disabled: boolean = null;
-
-  /** Whether the button toggle group should be vertical. */
-  private _vertical: boolean = false;
-
-  /** Whether the toggle group is disabled. */
-  @Input()
-  get disabled(): boolean {
-    return this._disabled;
-  }
-
-  set disabled(value) {
-    this._disabled = (value != null && value !== false) ? true : null;
-  }
-
-  /** Whether the toggle group is vertical. */
-  @Input()
-  get vertical(): boolean {
-    return this._vertical;
-  }
-
-  set vertical(value) {
-    this._vertical = coerceBooleanProperty(value);
-  }
-
-}
-
 /** Single button inside of a toggle group. */
 @Component({
   moduleId: module.id,
@@ -287,167 +290,85 @@ export class MdButtonToggleGroupMultiple {
   styleUrls: ['button-toggle.css'],
   encapsulation: ViewEncapsulation.None,
   host: {
-    '[class.mat-button-toggle]': 'true'
+    '[class.mat-button-toggle-checked]': 'checked',
+    '[class.mat-button-toggle-disabled]': 'disabled',
+    '[class.mat-button-toggle]': 'true',
+    '[attr.id]': 'id',
   }
 })
 export class MdButtonToggle implements OnInit {
-  /** Whether or not this button toggle is checked. */
-  private _checked: boolean = false;
-
-  /** Type of the button toggle. Either 'radio' or 'checkbox'. */
-  _type: ToggleType;
-
   /** The unique ID for this button toggle. */
-  @HostBinding()
-  @Input()
-  id: string;
+  @Input() id: string;
 
   /** HTML's 'name' attribute used to group radios for unique selection. */
-  @Input()
-  name: string;
+  @Input() name: string;
 
-  /** Whether or not this button toggle is disabled. */
-  private _disabled: boolean = null;
+  /** Whether the toggle is checked. */
+  @Input()
+  get checked(): boolean { return this._checked; }
+  set checked(value: boolean) {
+    if (value !== this._checked) {
+      this._checked = !!value;
+      this._change.emit(new MdButtonToggleChange(this, this.value));
+    }
+  }
 
   /** Value assigned to this button toggle. */
-  private _value: any = null;
-
-  /** Whether or not the button toggle is a single selection. */
-  private _isSingleSelector: boolean = null;
-
-  /** The parent button toggle group (exclusive selection). Optional. */
-  buttonToggleGroup: MdButtonToggleGroup;
-
-  /** The parent button toggle group (multiple selection). Optional. */
-  buttonToggleGroupMultiple: MdButtonToggleGroupMultiple;
+  @Input() value: any = null;
 
-  /** Event emitted when the group value changes. */
-  private _change: EventEmitter<MdButtonToggleChange> = new EventEmitter<MdButtonToggleChange>();
-  @Output() get change(): Observable<MdButtonToggleChange> {
-    return this._change.asObservable();
-  }
+  /** Whether the button is disabled. */
+  @Input()
+  get disabled(): boolean { return this._disabled || (this._group && this._group.disabled); }
+  set disabled(value) { this._disabled = coerceBooleanProperty(value); }
 
+  /** The underlying input element, responsible for selecting and deselecting. */
   @ViewChild('input') _inputElement: ElementRef;
 
-  constructor(@Optional() toggleGroup: MdButtonToggleGroup,
-              @Optional() toggleGroupMultiple: MdButtonToggleGroupMultiple,
-              public buttonToggleDispatcher: UniqueSelectionDispatcher,
-              private _renderer: Renderer) {
-    this.buttonToggleGroup = toggleGroup;
-
-    this.buttonToggleGroupMultiple = toggleGroupMultiple;
+  /** Type of the button toggle. Either 'radio' or 'checkbox'. */
+  _type: 'checkbox' | 'radio';
 
-    if (this.buttonToggleGroup) {
-      buttonToggleDispatcher.listen((id: string, name: string) => {
-        if (id != this.id && name == this.name) {
-          this.checked = false;
-        }
-      });
+  /** Unique ID for the underlying input element. */
+  _inputId: string = '';
 
-      this._type = 'radio';
-      this.name = this.buttonToggleGroup.name;
-      this._isSingleSelector = true;
-    } else {
-      // Even if there is no group at all, treat the button toggle as a checkbox so it can be
-      // toggled on or off.
-      this._type = 'checkbox';
-      this._isSingleSelector = false;
-    }
-  }
+  /** Whether the toggle is checked. */
+  private _checked: boolean = false;
 
-  ngOnInit() {
-    if (this.id == null) {
-      this.id = `md-button-toggle-${_uniqueIdCounter++}`;
-    }
+  /** Whether or not this button toggle is disabled. */
+  private _disabled: boolean = null;
 
-    if (this.buttonToggleGroup && this._value == this.buttonToggleGroup.value) {
-      this._checked = true;
-    }
-  }
+  /** Whether or not the button toggle is allowed to be deselected. */
+  private _canBeDeselected: boolean = false;
 
-  /** Unique ID for the underlying `input` element. */
-  get inputId(): string {
-    return `${this.id}-input`;
-  }
+  /** Event emitted when the group value changes. */
+  private _change: EventEmitter<MdButtonToggleChange> = new EventEmitter<MdButtonToggleChange>();
 
-  /** Whether the button is checked. */
-  @HostBinding('class.mat-button-toggle-checked')
-  @Input()
-  get checked(): boolean {
-    return this._checked;
+  @Output() get change(): Observable<MdButtonToggleChange> {
+    return this._change.asObservable();
   }
 
-  set checked(newCheckedState: boolean) {
-    if (this._isSingleSelector) {
-      if (newCheckedState) {
-        // Notify all button toggles with the same name (in the same group) to un-check.
-        this.buttonToggleDispatcher.notify(this.id, this.name);
-      }
-    }
-
-    this._checked = newCheckedState;
+  constructor(@Optional() private _group: MdButtonToggleGroup, private _renderer: Renderer) { }
 
-    if (newCheckedState && this._isSingleSelector && this.buttonToggleGroup.value != this.value) {
-      this.buttonToggleGroup.selected = this;
-    }
-  }
-
-  /** MdButtonToggleGroup reads this to assign its own value. */
-  @Input()
-  get value(): any {
-    return this._value;
-  }
+  ngOnInit() {
+    this.id = this.id || `md-button-toggle-${_uniqueIdCounter++}`;
+    this._inputId = `${this.id}-input`;
+    this._canBeDeselected = !this._group || this._group.multiple;
+    this._type = this._canBeDeselected ? 'checkbox' : 'radio';
 
-  set value(value: any) {
-    if (this._value != value) {
-      if (this.buttonToggleGroup != null && this.checked) {
-        this.buttonToggleGroup.value = value;
-      }
-      this._value = value;
+    if (this._group) {
+      this.name = this._group.name;
     }
   }
 
-  /** Dispatch change event with current value. */
-  private _emitChangeEvent(): void {
-    let event = new MdButtonToggleChange();
-    event.source = this;
-    event.value = this._value;
-    this._change.emit(event);
-  }
-
-  /** Whether the button is disabled. */
-  @HostBinding('class.mat-button-toggle-disabled')
-  @Input()
-  get disabled(): boolean {
-    return this._disabled || (this.buttonToggleGroup != null && this.buttonToggleGroup.disabled) ||
-        (this.buttonToggleGroupMultiple != null && this.buttonToggleGroupMultiple.disabled);
-  }
-
-  set disabled(value: boolean) {
-    this._disabled = (value != null && value !== false) ? true : null;
-  }
-
-  /** Toggle the state of the current button toggle. */
-  private _toggle(): void {
-    this.checked = !this.checked;
+  /** Focuses the button. */
+  focus() {
+    this._renderer.invokeElementMethod(this._inputElement.nativeElement, 'focus');
   }
 
   /** Checks the button toggle due to an interaction with the underlying native input. */
   _onInputChange(event: Event) {
     event.stopPropagation();
-
-    if (this._isSingleSelector) {
-      // Propagate the change one-way via the group, which will in turn mark this
-      // button toggle as checked.
-      this.checked = true;
-      this.buttonToggleGroup.selected = this;
-      this.buttonToggleGroup.onTouched();
-    } else {
-      this._toggle();
-    }
-
-    // Emit a change event when the native input does.
-    this._emitChangeEvent();
+    this._checked = this._canBeDeselected ? !this.checked : true;
+    this._change.emit(new MdButtonToggleChange(this, this.value, true));
   }
 
   _onInputClick(event: Event) {
@@ -461,30 +382,12 @@ export class MdButtonToggle implements OnInit {
     event.stopPropagation();
   }
 
-  /** Focuses the button. */
-  focus() {
-    this._renderer.invokeElementMethod(this._inputElement.nativeElement, 'focus');
-  }
-}
-
-
-@NgModule({
-  imports: [FormsModule, CompatibilityModule],
-  exports: [
-    MdButtonToggleGroup,
-    MdButtonToggleGroupMultiple,
-    MdButtonToggle,
-    CompatibilityModule,
-  ],
-  declarations: [MdButtonToggleGroup, MdButtonToggleGroupMultiple, MdButtonToggle],
-  providers: [UNIQUE_SELECTION_DISPATCHER_PROVIDER]
-})
-export class MdButtonToggleModule {
-  /** @deprecated */
-  static forRoot(): ModuleWithProviders {
-    return {
-      ngModule: MdButtonToggleModule,
-      providers: []
-    };
+  /**
+   * Allows for setting the checked state without emitting a change event.
+   * Useful for resetting the checked state from the group.
+   * @param value Whether the toggle should be selected.
+   */
+  _setChecked(value: boolean) {
+    this._checked = value;
   }
 }
diff --git a/src/lib/button-toggle/index.ts b/src/lib/button-toggle/index.ts
index 9c447d60f111..bd4f867e62ff 100644
--- a/src/lib/button-toggle/index.ts
+++ b/src/lib/button-toggle/index.ts
@@ -1 +1,27 @@
+import {NgModule, ModuleWithProviders} from '@angular/core';
+import {FormsModule} from '@angular/forms';
+import {CompatibilityModule} from '../core';
+import {MdButtonToggleGroup, MdButtonToggle} from './button-toggle';
+
 export * from './button-toggle';
+export * from './button-toggle-errors';
+
+
+@NgModule({
+  imports: [FormsModule, CompatibilityModule],
+  exports: [
+    MdButtonToggleGroup,
+    MdButtonToggle,
+    CompatibilityModule,
+  ],
+  declarations: [MdButtonToggleGroup, MdButtonToggle]
+})
+export class MdButtonToggleModule {
+  /** @deprecated */
+  static forRoot(): ModuleWithProviders {
+    return {
+      ngModule: MdButtonToggleModule,
+      providers: []
+    };
+  }
+}