diff --git a/package-lock.json b/package-lock.json
index 32c634d381f..3de1baac556 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,6 +1,6 @@
 {
   "name": "angular-material-source",
-  "version": "1.1.22",
+  "version": "1.1.23",
   "lockfileVersion": 1,
   "requires": true,
   "dependencies": {
diff --git a/package.json b/package.json
index bfd7c6b2bb9..5d8bf07b8e0 100644
--- a/package.json
+++ b/package.json
@@ -132,4 +132,4 @@
     "node": ">=10",
     "npm": ">=6"
   }
-}
\ No newline at end of file
+}
diff --git a/src/components/datepicker/demoNgModelOptionsTimezone/index.html b/src/components/datepicker/demoNgModelOptionsTimezone/index.html
new file mode 100644
index 00000000000..a800537de96
--- /dev/null
+++ b/src/components/datepicker/demoNgModelOptionsTimezone/index.html
@@ -0,0 +1,32 @@
+<md-content ng-controller="AppCtrl as ctrl" layout="row" layout-padding ng-cloak>
+  <md-calendar ng-model="ctrl.calendarDate" ng-model-options="{timezone: 'UTC'}">
+  </md-calendar>
+
+  <div layout="column" layout-padding>
+    <div>
+      <h4>Calendar Values</h4>
+      <div>
+        <strong>Date in local timezone:</strong>
+        {{ctrl.calendarDate|date:"yyyy-MM-dd HH:mm Z"}}
+      </div>
+      <div>
+        <strong>Date in UTC timezone:</strong>
+        {{ctrl.calendarDate|date:"yyyy-MM-dd HH:mm Z":"UTC"}}
+      </div>
+    </div>
+    <md-divider></md-divider>
+    <md-datepicker ng-model="ctrl.datepickerDate" ng-model-options="{timezone: 'UTC'}">
+    </md-datepicker>
+    <div>
+      <h4>Datepicker Values</h4>
+      <div>
+        <strong>Date in local timezone:</strong>
+        {{ctrl.datepickerDate|date:"yyyy-MM-dd HH:mm Z"}}
+      </div>
+      <div>
+        <strong>Date in UTC timezone:</strong>
+        {{ctrl.datepickerDate|date:"yyyy-MM-dd HH:mm Z":"UTC"}}
+      </div>
+    </div>
+  </div>
+</md-content>
diff --git a/src/components/datepicker/demoNgModelOptionsTimezone/script.js b/src/components/datepicker/demoNgModelOptionsTimezone/script.js
new file mode 100644
index 00000000000..c5f736800e9
--- /dev/null
+++ b/src/components/datepicker/demoNgModelOptionsTimezone/script.js
@@ -0,0 +1,8 @@
+angular.module('ngModelTimezoneUsage', ['ngMaterial', 'ngMessages'])
+.controller('AppCtrl', function() {
+  this.datepickerDate = new Date(0);
+  this.datepickerDate.setUTCFullYear(2020, 5, 19);
+
+  this.calendarDate = new Date(0);
+  this.calendarDate.setUTCFullYear(2020, 5, 19);
+});
diff --git a/src/components/datepicker/js/calendar.js b/src/components/datepicker/js/calendar.js
index 7458e7c16ea..e2423e4274b 100644
--- a/src/components/datepicker/js/calendar.js
+++ b/src/components/datepicker/js/calendar.js
@@ -321,17 +321,14 @@
     }, this.$attrs, [ngModelCtrl]);
 
     ngModelCtrl.$render = function() {
-      var value = this.$viewValue;
-      var parsedValue, convertedValue;
+      var value = this.$viewValue, convertedDate;
 
       // In the case where a conversion is needed, the $viewValue here will be a string like
       // "2020-05-10" instead of a Date object.
       if (!self.dateUtil.isValidDate(value)) {
-        parsedValue = self.$mdDateLocale.parseDate(this.$viewValue);
-        convertedValue =
-          new Date(parsedValue.getTime() + 60000 * parsedValue.getTimezoneOffset());
-        if (self.dateUtil.isValidDate(convertedValue)) {
-          value = convertedValue;
+        convertedDate = self.dateUtil.removeLocalTzAndReparseDate(new Date(this.$viewValue));
+        if (self.dateUtil.isValidDate(convertedDate)) {
+          value = convertedDate;
         }
       }
 
diff --git a/src/components/datepicker/js/calendarMonth.js b/src/components/datepicker/js/calendarMonth.js
index 50c9332bb7b..5c10c38c5fe 100644
--- a/src/components/datepicker/js/calendarMonth.js
+++ b/src/components/datepicker/js/calendarMonth.js
@@ -98,7 +98,8 @@
     this.cellClickHandler = function() {
       var timestamp = $$mdDateUtil.getTimestampFromNode(this);
       self.$scope.$apply(function() {
-        self.calendarCtrl.setNgModelValue(self.dateLocale.parseDate(timestamp));
+        // The timestamp has to be converted to a valid date.
+        self.calendarCtrl.setNgModelValue(new Date(timestamp));
       });
     };
 
diff --git a/src/components/datepicker/js/calendarYear.js b/src/components/datepicker/js/calendarYear.js
index 0ea22e7be52..b3ae054f109 100644
--- a/src/components/datepicker/js/calendarYear.js
+++ b/src/components/datepicker/js/calendarYear.js
@@ -227,7 +227,8 @@
 
     if (calendarCtrl.mode) {
       this.$mdUtil.nextTick(function() {
-        calendarCtrl.setNgModelValue(calendarCtrl.$mdDateLocale.parseDate(timestamp));
+        // The timestamp has to be converted to a valid date.
+        calendarCtrl.setNgModelValue(new Date(timestamp));
       });
     } else {
       calendarCtrl.setCurrentView('month', timestamp);
diff --git a/src/components/datepicker/js/dateUtil.js b/src/components/datepicker/js/dateUtil.js
index 582e20a9127..ef42a0f3fb5 100644
--- a/src/components/datepicker/js/dateUtil.js
+++ b/src/components/datepicker/js/dateUtil.js
@@ -5,7 +5,7 @@
    * Utility for performing date calculations to facilitate operation of the calendar and
    * datepicker.
    */
-  angular.module('material.components.datepicker').factory('$$mdDateUtil', function() {
+  angular.module('material.components.datepicker').factory('$$mdDateUtil', function($mdDateLocale) {
     return {
       getFirstDateOfMonth: getFirstDateOfMonth,
       getNumberOfDaysInMonth: getNumberOfDaysInMonth,
@@ -29,7 +29,8 @@
       getYearDistance: getYearDistance,
       clampDate: clampDate,
       getTimestampFromNode: getTimestampFromNode,
-      isMonthWithinRange: isMonthWithinRange
+      isMonthWithinRange: isMonthWithinRange,
+      removeLocalTzAndReparseDate: removeLocalTzAndReparseDate
     };
 
     /**
@@ -307,5 +308,18 @@
        return (!minDate || minDate.getFullYear() < year || minDate.getMonth() <= month) &&
         (!maxDate || maxDate.getFullYear() > year || maxDate.getMonth() >= month);
      }
+
+    /**
+     * @param {Date} value
+     * @return {boolean|boolean}
+     */
+    function removeLocalTzAndReparseDate(value) {
+      var dateValue, formattedDate;
+      // Remove the local timezone offset before calling formatDate.
+      dateValue = new Date(value.getTime() + 60000 * value.getTimezoneOffset());
+      formattedDate = $mdDateLocale.formatDate(dateValue);
+      // parseDate only works with a date formatted by formatDate when using Moment validation.
+      return $mdDateLocale.parseDate(formattedDate);
+    }
   });
 })();
diff --git a/src/components/datepicker/js/datepickerDirective.js b/src/components/datepicker/js/datepickerDirective.js
index 4cc9c19bd31..99efc62406f 100644
--- a/src/components/datepicker/js/datepickerDirective.js
+++ b/src/components/datepicker/js/datepickerDirective.js
@@ -85,6 +85,7 @@
         // may be confusing.
         var hiddenIcons = tAttrs.mdHideIcons;
         var ariaLabelValue = tAttrs.ariaLabel || tAttrs.mdPlaceholder;
+        var ngModelOptions = tAttrs.ngModelOptions;
 
         var calendarButton = (hiddenIcons === 'all' || hiddenIcons === 'calendar') ? '' :
           '<md-button class="md-datepicker-button md-icon-button" type="button" ' +
@@ -132,6 +133,7 @@
                 'md-max-date="ctrl.maxDate" ' +
                 'md-date-filter="ctrl.dateFilter" ' +
                 'md-month-filter="ctrl.monthFilter" ' +
+                (ngModelOptions ? 'ng-model-options="' + ngModelOptions + '" ' : '') +
                 'ng-model="ctrl.date" ng-if="ctrl.isCalendarOpen">' +
             '</md-calendar>' +
           '</div>' +
@@ -180,7 +182,8 @@
           mdInputContainer.input = element;
           mdInputContainer.element
             .addClass(INPUT_CONTAINER_CLASS)
-            .toggleClass(HAS_CALENDAR_ICON_CLASS, attr.mdHideIcons !== 'calendar' && attr.mdHideIcons !== 'all');
+            .toggleClass(HAS_CALENDAR_ICON_CLASS,
+              attr.mdHideIcons !== 'calendar' && attr.mdHideIcons !== 'all');
 
           if (!mdInputContainer.label) {
             $mdAria.expect(element, 'aria-label', attr.mdPlaceholder);
@@ -191,7 +194,8 @@
           }
 
           scope.$watch(mdInputContainer.isErrorGetter || function() {
-            return ngModelCtrl.$invalid && (ngModelCtrl.$touched || (parentForm && parentForm.$submitted));
+            return ngModelCtrl.$invalid && (ngModelCtrl.$touched ||
+              (parentForm && parentForm.$submitted));
           }, mdInputContainer.setInvalid);
         } else if (parentForm) {
           // If invalid, highlights the input when the parent form is submitted.
@@ -424,8 +428,8 @@
       });
     }
 
-    // For AngularJS 1.4 and older, where there are no lifecycle hooks but bindings are pre-assigned,
-    // manually call the $onInit hook.
+    // For AngularJS 1.4 and older, where there are no lifecycle hooks but bindings are
+    // pre-assigned, manually call the $onInit hook.
     if (angular.version.major === 1 && angular.version.minor <= 4) {
       this.$onInit();
     }
@@ -433,7 +437,8 @@
 
   /**
    * AngularJS Lifecycle hook for newer AngularJS versions.
-   * Bindings are not guaranteed to have been assigned in the controller, but they are in the $onInit hook.
+   * Bindings are not guaranteed to have been assigned in the controller, but they are in the
+   * $onInit hook.
    */
   DatePickerCtrl.prototype.$onInit = function() {
 
@@ -442,7 +447,8 @@
      * the user to override specific ones from the $mdDateLocale provider.
      * @type {!Object}
      */
-    this.locale = this.dateLocale ? angular.extend({}, this.$mdDateLocale, this.dateLocale) : this.$mdDateLocale;
+    this.locale = this.dateLocale ? angular.extend({}, this.$mdDateLocale, this.dateLocale)
+      : this.$mdDateLocale;
 
     this.installPropertyInterceptors();
     this.attachChangeListeners();
@@ -743,7 +749,9 @@
     var bodyRect = body.getBoundingClientRect();
 
     if (!this.topMargin || this.topMargin < 0) {
-      this.topMargin = (this.inputMask.parent().prop('clientHeight') - this.ngInputElement.prop('clientHeight')) / 2;
+      this.topMargin =
+        (this.inputMask.parent().prop('clientHeight')
+          - this.ngInputElement.prop('clientHeight')) / 2;
     }
 
     // Check to see if the calendar pane would go off the screen. If so, adjust position
@@ -993,7 +1001,11 @@
     var self = this;
     var timezone = this.$mdUtil.getModelOption(this.ngModelCtrl, 'timezone');
 
-    this.date = value;
+    if (this.dateUtil.isValidDate(value)) {
+      this.date = this.dateUtil.removeLocalTzAndReparseDate(value);
+    } else {
+      this.date = value;
+    }
     this.inputElement.value = this.locale.formatDate(value, timezone);
     this.mdInputContainer && this.mdInputContainer.setHasValue(!!value);
     this.resizeInputElement();
diff --git a/src/core/util/util.js b/src/core/util/util.js
index b831cf9ca38..37087eeae50 100644
--- a/src/core/util/util.js
+++ b/src/core/util/util.js
@@ -84,7 +84,7 @@ function UtilFactory($document, $timeout, $compile, $rootScope, $$mdAnimate, $in
      * which supports the breaking changes in the AngularJS snapshot (SHA 87a2ff76af5d0a9268d8eb84db5755077d27c84c).
      * @param {!ngModel.NgModelController} ngModelCtrl
      * @param {!string} optionName
-     * @returns {Object|undefined}
+     * @returns {string|number|boolean|Object|undefined}
      */
     getModelOption: function (ngModelCtrl, optionName) {
       if (!ngModelCtrl.$options) {
@@ -93,8 +93,8 @@ function UtilFactory($document, $timeout, $compile, $rootScope, $$mdAnimate, $in
 
       var $options = ngModelCtrl.$options;
 
-      // The newer versions of AngularJS introduced a `getOption function and made the option values no longer
-      // visible on the $options object.
+      // The newer versions of AngularJS introduced a getOption function and made the option values
+      // no longer visible on the $options object.
       return $options.getOption ? $options.getOption(optionName) : $options[optionName];
     },