diff --git a/src/Microsoft.OData.Core/Microsoft.OData.Core.cs b/src/Microsoft.OData.Core/Microsoft.OData.Core.cs
index 34673ae2f3..d5d2e0dd79 100644
--- a/src/Microsoft.OData.Core/Microsoft.OData.Core.cs
+++ b/src/Microsoft.OData.Core/Microsoft.OData.Core.cs
@@ -791,7 +791,9 @@ internal sealed class TextRes {
         internal const string ExceptionUtils_CheckLongPositive = "ExceptionUtils_CheckLongPositive";
         internal const string ExceptionUtils_ArgumentStringNullOrEmpty = "ExceptionUtils_ArgumentStringNullOrEmpty";
         internal const string ExpressionToken_OnlyRefAllowWithStarInExpand = "ExpressionToken_OnlyRefAllowWithStarInExpand";
+        internal const string ExpressionToken_DollarCountNotAllowedInSelect = "ExpressionToken_DollarCountNotAllowedInSelect";
         internal const string ExpressionToken_NoPropAllowedAfterRef = "ExpressionToken_NoPropAllowedAfterRef";
+        internal const string ExpressionToken_NoPropAllowedAfterDollarCount = "ExpressionToken_NoPropAllowedAfterDollarCount";
         internal const string ExpressionToken_NoSegmentAllowedBeforeStarInExpand = "ExpressionToken_NoSegmentAllowedBeforeStarInExpand";
         internal const string ExpressionToken_IdentifierExpected = "ExpressionToken_IdentifierExpected";
         internal const string ExpressionLexer_UnterminatedStringLiteral = "ExpressionLexer_UnterminatedStringLiteral";
diff --git a/src/Microsoft.OData.Core/Microsoft.OData.Core.txt b/src/Microsoft.OData.Core/Microsoft.OData.Core.txt
index 25e43bac04..38fac3c22e 100644
--- a/src/Microsoft.OData.Core/Microsoft.OData.Core.txt
+++ b/src/Microsoft.OData.Core/Microsoft.OData.Core.txt
@@ -915,6 +915,8 @@ ExceptionUtils_CheckLongPositive=A positive long value was expected; however, th
 ExceptionUtils_ArgumentStringNullOrEmpty=Value cannot be null or empty.
 
 ExpressionToken_OnlyRefAllowWithStarInExpand=Only $ref is allowed with star in $expand option.
+ExpressionToken_DollarCountNotAllowedInSelect=$count is not allowed in $select option.
+ExpressionToken_NoPropAllowedAfterDollarCount=No property is allowed after $count segment.
 ExpressionToken_NoPropAllowedAfterRef=No property is allowed after $ref segment.
 ExpressionToken_NoSegmentAllowedBeforeStarInExpand=No segment is allowed before star in $expand.
 ExpressionToken_IdentifierExpected=An identifier was expected at position {0}.
diff --git a/src/Microsoft.OData.Core/Parameterized.Microsoft.OData.Core.cs b/src/Microsoft.OData.Core/Parameterized.Microsoft.OData.Core.cs
index eca1b36898..e6816eb148 100644
--- a/src/Microsoft.OData.Core/Parameterized.Microsoft.OData.Core.cs
+++ b/src/Microsoft.OData.Core/Parameterized.Microsoft.OData.Core.cs
@@ -6928,6 +6928,28 @@ internal static string ExpressionToken_NoPropAllowedAfterRef
             }
         }
 
+        /// <summary>
+        /// A string like "No property is allowed after $count segment."
+        /// </summary>
+        internal static string ExpressionToken_NoPropAllowedAfterDollarCount
+        {
+            get
+            {
+                return Microsoft.OData.TextRes.GetString(Microsoft.OData.TextRes.ExpressionToken_NoPropAllowedAfterDollarCount);
+            }
+        }
+
+        /// <summary>
+        /// A string like "$count is not allowed in $select option."
+        /// </summary>
+        internal static string ExpressionToken_DollarCountNotAllowedInSelect
+        {
+            get
+            {
+                return Microsoft.OData.TextRes.GetString(Microsoft.OData.TextRes.ExpressionToken_DollarCountNotAllowedInSelect);
+            }
+        }
+
         /// <summary>
         /// A string like "No segment is allowed before star in $expand."
         /// </summary>
diff --git a/src/Microsoft.OData.Core/UriParser/Binders/SelectExpandBinder.cs b/src/Microsoft.OData.Core/UriParser/Binders/SelectExpandBinder.cs
index c4ca958634..795a5f6ce5 100644
--- a/src/Microsoft.OData.Core/UriParser/Binders/SelectExpandBinder.cs
+++ b/src/Microsoft.OData.Core/UriParser/Binders/SelectExpandBinder.cs
@@ -376,6 +376,8 @@ private SelectItem GenerateExpandItem(ExpandTermToken tokenIn)
             }
 
             bool isRef = false;
+            bool isCount = false;
+
             if (firstNonTypeToken.NextToken != null)
             {
                 // lastly... make sure that, since we're on a NavProp, that the next token isn't null.
@@ -383,6 +385,10 @@ private SelectItem GenerateExpandItem(ExpandTermToken tokenIn)
                 {
                     isRef = true;
                 }
+                else if (firstNonTypeToken.NextToken.Identifier == UriQueryConstants.CountSegment)
+                {
+                    isCount = true;
+                }
                 else
                 {
                     throw new ODataException(ODataErrorStrings.ExpandItemBinder_TraversingMultipleNavPropsInTheSamePath);
@@ -428,6 +434,11 @@ private SelectItem GenerateExpandItem(ExpandTermToken tokenIn)
                 return new ExpandedReferenceSelectItem(pathToNavProp, targetNavigationSource, filterOption, orderbyOption, tokenIn.TopOption, tokenIn.SkipOption, tokenIn.CountQueryOption, searchOption, computeOption, applyOption);
             }
 
+            if (isCount)
+            {
+                return new ExpandedCountSelectItem(pathToNavProp, targetNavigationSource, filterOption, searchOption);
+            }
+
             // $select & $expand
             SelectExpandClause subSelectExpand = BindSelectExpand(tokenIn.ExpandOption, tokenIn.SelectOption, parsedPath, this.ResourcePathNavigationSource, targetNavigationSource, null, generatedProperties, collapsed);
 
diff --git a/src/Microsoft.OData.Core/UriParser/Parsers/SelectExpandTermParser.cs b/src/Microsoft.OData.Core/UriParser/Parsers/SelectExpandTermParser.cs
index 79bb1345d1..d98d44cd1d 100644
--- a/src/Microsoft.OData.Core/UriParser/Parsers/SelectExpandTermParser.cs
+++ b/src/Microsoft.OData.Core/UriParser/Parsers/SelectExpandTermParser.cs
@@ -109,18 +109,19 @@ private void CheckPathLength(int pathLength)
         /// <returns>A parsed PathSegmentToken representing the next segment in this path.</returns>
         private PathSegmentToken ParseSegment(PathSegmentToken previousSegment, bool allowRef)
         {
-            // TODO $count is defined in specification for expand, it is not supported now. Also note $count is not supported with star as expand option.
-            if (this.lexer.CurrentToken.Text.StartsWith("$", StringComparison.Ordinal) && (!allowRef || this.lexer.CurrentToken.Text != UriQueryConstants.RefSegment))
+            if (this.lexer.CurrentToken.Text.StartsWith("$", StringComparison.Ordinal)
+                && (!allowRef || this.lexer.CurrentToken.Text != UriQueryConstants.RefSegment)
+                && this.lexer.CurrentToken.Text != UriQueryConstants.CountSegment)
             {
                 throw new ODataException(ODataErrorStrings.UriSelectParser_SystemTokenInSelectExpand(this.lexer.CurrentToken.Text, this.lexer.ExpressionText));
             }
 
-            // Some check here to throw exception, both prop1/*/prop2 and */$ref/prop will throw exception, both are for $expand cases
+            // Some check here to throw exception, prop1/*/prop2 and */$ref/prop and prop1/$count/prop2 will throw exception, all are $expand cases.
             if (!isSelect)
             {
                 if (previousSegment != null && previousSegment.Identifier == UriQueryConstants.Star && this.lexer.CurrentToken.GetIdentifier() != UriQueryConstants.RefSegment)
                 {
-                    // Star can only be followed with $ref
+                    // Star can only be followed with $ref. $count is not supported with star as expand option
                     throw new ODataException(ODataErrorStrings.ExpressionToken_OnlyRefAllowWithStarInExpand);
                 }
                 else if (previousSegment != null && previousSegment.Identifier == UriQueryConstants.RefSegment)
@@ -128,6 +129,17 @@ private PathSegmentToken ParseSegment(PathSegmentToken previousSegment, bool all
                     // $ref should not have more property followed.
                     throw new ODataException(ODataErrorStrings.ExpressionToken_NoPropAllowedAfterRef);
                 }
+                else if (previousSegment != null && previousSegment.Identifier == UriQueryConstants.CountSegment)
+                {
+                    // $count should not have more property followed. e.g $expand=NavProperty/$count/MyProperty
+                    throw new ODataException(ODataErrorStrings.ExpressionToken_NoPropAllowedAfterDollarCount);
+                }
+            }
+
+            if (this.lexer.CurrentToken.Text == UriQueryConstants.CountSegment && isSelect)
+            {
+                // $count is not allowed in $select e.g $select=NavProperty/$count
+                throw new ODataException(ODataErrorStrings.ExpressionToken_DollarCountNotAllowedInSelect);
             }
 
             string propertyName;
diff --git a/src/Microsoft.OData.Core/UriParser/SemanticAst/ExpandedCountSelectItem.cs b/src/Microsoft.OData.Core/UriParser/SemanticAst/ExpandedCountSelectItem.cs
new file mode 100644
index 0000000000..0aae952136
--- /dev/null
+++ b/src/Microsoft.OData.Core/UriParser/SemanticAst/ExpandedCountSelectItem.cs
@@ -0,0 +1,53 @@
+//---------------------------------------------------------------------
+// <copyright file="ExpandedCountSelectItem.cs" company="Microsoft">
+//      Copyright (C) Microsoft Corporation. All rights reserved. See License.txt in the project root for license information.
+// </copyright>
+//---------------------------------------------------------------------
+
+namespace Microsoft.OData.UriParser
+{
+    using Aggregation;
+    using Microsoft.OData.Edm;
+
+    /// <summary>
+    /// This represents one level of expansion for a particular expansion tree.
+    /// </summary>
+    public sealed class ExpandedCountSelectItem : ExpandedReferenceSelectItem
+    {
+        /// <summary>
+        /// Create an Expand item using a nav prop, its entity set and a SelectExpandClause
+        /// </summary>
+        /// <param name="pathToNavigationProperty">the path to the navigation property for this expand item, including any type segments</param>
+        /// <param name="navigationSource">the navigation source for this ExpandItem</param>
+        /// <param name="filterOption">A filter clause for this expand (can be null)</param>
+        /// <param name="searchOption">A search clause for this expand (can be null)</param>
+        /// <exception cref="System.ArgumentNullException">Throws if input pathToNavigationProperty is null.</exception>
+        public ExpandedCountSelectItem(ODataExpandPath pathToNavigationProperty, IEdmNavigationSource navigationSource, FilterClause filterOption, SearchClause searchOption)
+            : base(pathToNavigationProperty, navigationSource, filterOption, null, null, null, null, searchOption)
+        {
+            ExceptionUtils.CheckArgumentNotNull(pathToNavigationProperty, "pathToNavigationProperty");
+        }
+
+        /// <summary>
+        /// Translate using a <see cref="SelectItemTranslator{T}"/>.
+        /// </summary>
+        /// <typeparam name="T">Type that the translator will return after visiting this item.</typeparam>
+        /// <param name="translator">An implementation of the translator interface.</param>
+        /// <returns>An object whose type is determined by the type parameter of the translator.</returns>
+        /// <exception cref="System.ArgumentNullException">Throws if the input translator is null.</exception>
+        public override T TranslateWith<T>(SelectItemTranslator<T> translator)
+        {
+            return translator.Translate(this);
+        }
+
+        /// <summary>
+        /// Handle using a <see cref="SelectItemHandler"/>.
+        /// </summary>
+        /// <param name="handler">An implementation of the handler interface.</param>
+        /// <exception cref="System.ArgumentNullException">Throws if the input handler is null.</exception>
+        public override void HandleWith(SelectItemHandler handler)
+        {
+            handler.Handle(this);
+        }
+    }
+}
diff --git a/test/FunctionalTests/Microsoft.OData.Core.Tests/ScenarioTests/UriParser/SelectExpandFunctionalTests.cs b/test/FunctionalTests/Microsoft.OData.Core.Tests/ScenarioTests/UriParser/SelectExpandFunctionalTests.cs
index 27772fd686..408fc8eb99 100644
--- a/test/FunctionalTests/Microsoft.OData.Core.Tests/ScenarioTests/UriParser/SelectExpandFunctionalTests.cs
+++ b/test/FunctionalTests/Microsoft.OData.Core.Tests/ScenarioTests/UriParser/SelectExpandFunctionalTests.cs
@@ -60,6 +60,13 @@ public void SelectPropertiesWithRefOperationThrows()
             readResult.Throws<ODataException>(ODataErrorStrings.UriSelectParser_SystemTokenInSelectExpand("$ref", "MyLions/$ref"));
         }
 
+        [Fact]
+        public void SelectPropertiesWithDollarCountOperationThrows()
+        {
+            Action readResult = () => RunParseSelectExpand("MyLions/$count", null, HardCodedTestModel.GetPersonType(), HardCodedTestModel.GetPeopleSet());
+            readResult.Throws<ODataException>(ODataErrorStrings.ExpressionToken_DollarCountNotAllowedInSelect);
+        }
+
         [Fact]
         public void SelectWithAsteriskMeansWildcard()
         {
@@ -572,6 +579,14 @@ public void ExpandNavigationWithNavigationAfterRefOperationThrows()
             readResult.Throws<ODataException>(ODataErrorStrings.ExpressionToken_NoPropAllowedAfterRef);
         }
 
+        [Fact]
+        public void ExpandNavigationWithNavigationAfterDollarCountOperationThrows()
+        {
+            const string expandClauseText = "MyDog/$count/MyPeople";
+            Action readResult = () => RunParseSelectExpand(null, expandClauseText, HardCodedTestModel.GetPersonType(), HardCodedTestModel.GetPeopleSet());
+            readResult.Throws<ODataException>(ODataErrorStrings.ExpressionToken_NoPropAllowedAfterDollarCount);
+        }
+
         [Fact]
         public void ExpandNavigationWithNestedQueryOptionOnRef()
         {
@@ -1582,10 +1597,76 @@ public void SelectWithNestedTopSkipAndCountWorks()
             Assert.NotNull(pathSelectItem.TopOption);
             Assert.Equal(4, pathSelectItem.TopOption);
 
-            Assert.NotNull(pathSelectItem.TopOption);
+            Assert.NotNull(pathSelectItem.SkipOption);
             Assert.Equal(2, pathSelectItem.SkipOption);
         }
 
+        // $expand=navProp/$count
+        [Fact]
+        public void ExpandWithNavigationPropCountWorks()
+        {
+            // Arrange
+            var odataQueryOptionParser = new ODataQueryOptionParser(HardCodedTestModel.TestModel,
+                HardCodedTestModel.GetPersonType(), HardCodedTestModel.GetPeopleSet(),
+                new Dictionary<string, string>()
+                {
+                    {"$expand", "MyPaintings/$count"}
+                });
+
+            // Act
+            var selectExpandClause = odataQueryOptionParser.ParseSelectAndExpand();
+
+            // Assert
+            Assert.NotNull(selectExpandClause);
+            ExpandedCountSelectItem expandedCountSelectItem = Assert.IsType<ExpandedCountSelectItem>(Assert.Single(selectExpandClause.SelectedItems));
+            Assert.Null(expandedCountSelectItem.FilterOption);
+            Assert.Null(expandedCountSelectItem.SearchOption);
+        }
+
+        // $expand=navProp/$count($filter=prop)
+        [Fact]
+        public void ExpandWithNavigationPropCountWithFilterOptionWorks()
+        {
+            // Arrange
+            var odataQueryOptionParser = new ODataQueryOptionParser(HardCodedTestModel.TestModel,
+                HardCodedTestModel.GetPersonType(), HardCodedTestModel.GetPeopleSet(),
+                new Dictionary<string, string>()
+                {
+                    {"$expand", "MyPaintings/$count($filter=Artist eq 'Artist One')"}
+                });
+
+            // Act
+            var selectExpandClause = odataQueryOptionParser.ParseSelectAndExpand();
+
+            // Assert
+            Assert.NotNull(selectExpandClause);
+            ExpandedCountSelectItem expandedCountSelectItem = Assert.IsType<ExpandedCountSelectItem>(Assert.Single(selectExpandClause.SelectedItems));
+            Assert.NotNull(expandedCountSelectItem.FilterOption);
+            Assert.Null(expandedCountSelectItem.SearchOption);
+        }
+
+        // $expand=navProp/$count($search=prop)
+        [Fact]
+        public void ExpandWithNavigationPropCountWithSearchOptionWorks()
+        {
+            // Arrange
+            var odataQueryOptionParser = new ODataQueryOptionParser(HardCodedTestModel.TestModel,
+                HardCodedTestModel.GetPersonType(), HardCodedTestModel.GetPeopleSet(),
+                new Dictionary<string, string>()
+                {
+                    {"$expand", "MyPaintings/$count($search=Blue)"}
+                });
+
+            // Act
+            var selectExpandClause = odataQueryOptionParser.ParseSelectAndExpand();
+
+            // Assert
+            Assert.NotNull(selectExpandClause);
+            ExpandedCountSelectItem expandedCountSelectItem = Assert.IsType<ExpandedCountSelectItem>(Assert.Single(selectExpandClause.SelectedItems));
+            Assert.Null(expandedCountSelectItem.FilterOption);
+            Assert.NotNull(expandedCountSelectItem.SearchOption);
+        }
+
         [Fact]
         public void SelectWithNestedSelectWorks()
         {