diff --git a/src/typeahead/test/typeahead.spec.js b/src/typeahead/test/typeahead.spec.js
index 29b293f901..e444cf5790 100644
--- a/src/typeahead/test/typeahead.spec.js
+++ b/src/typeahead/test/typeahead.spec.js
@@ -217,6 +217,17 @@ describe('typeahead tests', function () {
         expect(element).toBeClosed();
       });
 
+      it('should correctly render initial state if the "as" keyword is used', function () {
+
+        $scope.states = [{code: 'AL', name: 'Alaska'}, {code: 'CL', name: 'California'}];
+        $scope.result = $scope.states[0];
+
+        var element = prepareInputEl("<div><input ng-model='result' typeahead='state as state.name for state in states'></div>");
+        var inputEl = findInput(element);
+
+        expect(inputEl.val()).toEqual('Alaska');
+      });
+
       it('should not get open on model change', function () {
         var element = prepareInputEl("<div><input ng-model='result' typeahead='item for item in source'></div>");
         $scope.$apply(function(){
diff --git a/src/typeahead/typeahead.js b/src/typeahead/typeahead.js
index 6317c6bb2e..3614f1b239 100644
--- a/src/typeahead/typeahead.js
+++ b/src/typeahead/typeahead.js
@@ -38,7 +38,7 @@ angular.module('ui.bootstrap.typeahead', [])
     require:'ngModel',
     link:function (originalScope, element, attrs, modelCtrl) {
 
-      var selected = modelCtrl.$modelValue;
+      var selected;
 
       //minimal no of characters that needs to be entered before typeahead kicks-in
       var minSearch = originalScope.$eval(attrs.typeaheadMinLength) || 1;
@@ -95,7 +95,7 @@ angular.module('ui.bootstrap.typeahead', [])
       scope.query = undefined;
 
       //plug into $parsers pipeline to open a typeahead on view changes initiated from DOM
-      //$parsers kick-in on all the changes coming from the vview as well as manually triggered by $setViewValue
+      //$parsers kick-in on all the changes coming from the view as well as manually triggered by $setViewValue
       modelCtrl.$parsers.push(function (inputValue) {
 
         resetMatches();
@@ -112,7 +112,7 @@ angular.module('ui.bootstrap.typeahead', [])
 
       modelCtrl.$render = function () {
         var locals = {};
-        locals[parserResult.itemName] = selected;
+        locals[parserResult.itemName] = selected || modelCtrl.$viewValue;
         element.val(parserResult.viewMapper(scope, locals) || modelCtrl.$viewValue);
         selected = undefined;
       };