diff --git a/src/demo-app/datepicker/datepicker-demo.html b/src/demo-app/datepicker/datepicker-demo.html
index f974fc7228c7..c975b470e636 100644
--- a/src/demo-app/datepicker/datepicker-demo.html
+++ b/src/demo-app/datepicker/datepicker-demo.html
@@ -1,6 +1,25 @@
 <h1>Work in progress, not ready for use.</h1>
 
-<input [mdDatepicker]="dp" [(ngModel)]="date">
-<button (click)="dp.openStandardUi()">open</button>
-<button (click)="dp.openTouchUi()">open (mobile)</button>
-<md-datepicker #dp></md-datepicker>
+<p>
+  <md-checkbox [(ngModel)]="touch">Use touch UI</md-checkbox>
+</p>
+<br>
+<p>
+  <input [mdDatepicker]="dp" [(ngModel)]="date">
+  <button [mdDatepickerToggle]="dp"></button>
+  <md-datepicker #dp [touchUi]="touch"></md-datepicker>
+</p>
+<p>
+  <md-input-container>
+    <input mdInput [mdDatepicker]="dp2" [(ngModel)]="date">
+    <button [mdDatepickerToggle]="dp2"></button>
+    <md-datepicker #dp2 [touchUi]="touch"></md-datepicker>
+  </md-input-container>
+</p>
+<p>
+  <button [mdDatepickerToggle]="dp3"></button>
+  <md-input-container>
+    <input mdInput [mdDatepicker]="dp3" [(ngModel)]="date">
+    <md-datepicker #dp3 [touchUi]="touch"></md-datepicker>
+  </md-input-container>
+</p>
diff --git a/src/demo-app/datepicker/datepicker-demo.ts b/src/demo-app/datepicker/datepicker-demo.ts
index 214febf1eff0..f0927ec1203c 100644
--- a/src/demo-app/datepicker/datepicker-demo.ts
+++ b/src/demo-app/datepicker/datepicker-demo.ts
@@ -10,4 +10,5 @@ import {SimpleDate} from '@angular/material';
 })
 export class DatepickerDemo {
   date: SimpleDate;
+  touch = false;
 }
diff --git a/src/lib/datepicker/datepicker-input.ts b/src/lib/datepicker/datepicker-input.ts
index f7be57566e25..12ab3b830c3b 100644
--- a/src/lib/datepicker/datepicker-input.ts
+++ b/src/lib/datepicker/datepicker-input.ts
@@ -1,5 +1,11 @@
 import {
-  AfterContentInit, Directive, ElementRef, forwardRef, Input, OnDestroy,
+  AfterContentInit,
+  Directive,
+  ElementRef,
+  forwardRef,
+  Input,
+  OnDestroy,
+  Optional,
   Renderer
 } from '@angular/core';
 import {MdDatepicker} from './datepicker';
@@ -7,6 +13,7 @@ import {ControlValueAccessor, NG_VALUE_ACCESSOR} from '@angular/forms';
 import {SimpleDate} from '../core/datetime/simple-date';
 import {CalendarLocale} from '../core/datetime/calendar-locale';
 import {Subscription} from 'rxjs';
+import {MdInputContainer} from '../input/input-container';
 
 
 export const MD_DATEPICKER_VALUE_ACCESSOR: any = {
@@ -55,8 +62,11 @@ export class MdDatepickerInput implements AfterContentInit, ControlValueAccessor
 
   private _datepickerSubscription: Subscription;
 
-  constructor(private _elementRef: ElementRef, private _renderer: Renderer,
-              private _locale: CalendarLocale) {}
+  constructor(
+      private _elementRef: ElementRef,
+      private _renderer: Renderer,
+      private _locale: CalendarLocale,
+      @Optional() private _mdInputContainer: MdInputContainer) {}
 
   ngAfterContentInit() {
     if (this._datepicker) {
@@ -75,7 +85,7 @@ export class MdDatepickerInput implements AfterContentInit, ControlValueAccessor
   }
 
   getPopupConnectionElementRef(): ElementRef {
-    return this._elementRef;
+    return this._mdInputContainer ? this._mdInputContainer.underlineRef : this._elementRef;
   }
 
   // Implemented as part of ControlValueAccessor
diff --git a/src/lib/datepicker/datepicker-toggle.scss b/src/lib/datepicker/datepicker-toggle.scss
new file mode 100644
index 000000000000..92f1f5a42519
--- /dev/null
+++ b/src/lib/datepicker/datepicker-toggle.scss
@@ -0,0 +1,13 @@
+$mat-datepicker-toggle-icon-size: 24px !default;
+
+
+.mat-datepicker-toggle {
+  display: inline-block;
+  background: url('data:image/svg+xml;utf8,<svg xmlns="http://www.w3.org/2000/svg" width="24px" height="24px" viewBox="0 0 24 24" fill="currentColor"><path d="M0 0h24v24H0z" fill="none"/><path d="M19 3h-1V1h-2v2H8V1H6v2H5c-1.11 0-1.99.9-1.99 2L3 19c0 1.1.89 2 2 2h14c1.1 0 2-.9 2-2V5c0-1.1-.9-2-2-2zm0 16H5V8h14v11zM7 10h5v5H7z"/></svg>') no-repeat;
+  background-size: contain;
+  height: $mat-datepicker-toggle-icon-size;
+  width: $mat-datepicker-toggle-icon-size;
+  border: none;
+  outline: none;
+  vertical-align: middle;
+}
diff --git a/src/lib/datepicker/datepicker-toggle.ts b/src/lib/datepicker/datepicker-toggle.ts
new file mode 100644
index 000000000000..a6ba593205ac
--- /dev/null
+++ b/src/lib/datepicker/datepicker-toggle.ts
@@ -0,0 +1,30 @@
+import {ChangeDetectionStrategy, Component, Input, ViewEncapsulation} from '@angular/core';
+import {MdDatepicker} from './datepicker';
+
+
+@Component({
+  moduleId: module.id,
+  selector: 'button[mdDatepickerToggle], button[matDatepickerToggle]',
+  template: '',
+  styleUrls: ['datepicker-toggle.css'],
+  host: {
+    '[class.mat-datepicker-toggle]': 'true',
+    '(click)': '_open($event)',
+  },
+  encapsulation: ViewEncapsulation.None,
+  changeDetection: ChangeDetectionStrategy.OnPush,
+})
+export class MdDatepickerToggle {
+  @Input('mdDatepickerToggle') datepicker: MdDatepicker;
+
+  @Input('matDatepickerToggle')
+  get _datepicker() { return this.datepicker; }
+  set _datepicker(v: MdDatepicker) { this.datepicker = v; }
+
+  _open(event: Event): void {
+    if (this.datepicker) {
+      this.datepicker.open();
+      event.stopPropagation();
+    }
+  }
+}
diff --git a/src/lib/datepicker/datepicker.spec.ts b/src/lib/datepicker/datepicker.spec.ts
index 45923506150a..37f479907508 100644
--- a/src/lib/datepicker/datepicker.spec.ts
+++ b/src/lib/datepicker/datepicker.spec.ts
@@ -6,13 +6,14 @@ import {MdDatepickerInput} from './datepicker-input';
 import {SimpleDate} from '../core/datetime/simple-date';
 import {FormControl, FormsModule, ReactiveFormsModule} from '@angular/forms';
 import {By} from '@angular/platform-browser';
-import {dispatchFakeEvent} from '../core/testing/dispatch-events';
+import {dispatchFakeEvent, dispatchMouseEvent} from '../core/testing/dispatch-events';
+import {MdInputModule} from '../input/index';
 
 
 describe('MdDatepicker', () => {
   beforeEach(async(() => {
     TestBed.configureTestingModule({
-      imports: [MdDatepickerModule, FormsModule, ReactiveFormsModule],
+      imports: [MdDatepickerModule, MdInputModule, FormsModule, ReactiveFormsModule],
       declarations: [
         StandardDatepicker,
         MultiInputDatepicker,
@@ -20,6 +21,8 @@ describe('MdDatepicker', () => {
         DatepickerWithStartAt,
         DatepickerWithNgModel,
         DatepickerWithFormControl,
+        DatepickerWithToggle,
+        InputContainerDatepicker,
       ],
     });
 
@@ -37,26 +40,29 @@ describe('MdDatepicker', () => {
       testComponent = fixture.componentInstance;
     });
 
-    it('openStandardUi should open popup', () => {
+    it('open non-touch should open popup', () => {
       expect(document.querySelector('.cdk-overlay-pane')).toBeNull();
 
-      testComponent.datepicker.openStandardUi();
+      testComponent.datepicker.open();
       fixture.detectChanges();
 
       expect(document.querySelector('.cdk-overlay-pane')).not.toBeNull();
     });
 
-    it('openTouchUi should open dialog', () => {
+    it('open touch should open dialog', () => {
+      testComponent.touch = true;
+      fixture.detectChanges();
+
       expect(document.querySelector('md-dialog-container')).toBeNull();
 
-      testComponent.datepicker.openTouchUi();
+      testComponent.datepicker.open();
       fixture.detectChanges();
 
       expect(document.querySelector('md-dialog-container')).not.toBeNull();
     });
 
     it('close should close popup', async(() => {
-      testComponent.datepicker.openStandardUi();
+      testComponent.datepicker.open();
       fixture.detectChanges();
 
       let popup = document.querySelector('.cdk-overlay-pane');
@@ -72,7 +78,10 @@ describe('MdDatepicker', () => {
     }));
 
     it('close should close dialog', async(() => {
-      testComponent.datepicker.openTouchUi();
+      testComponent.touch = true;
+      fixture.detectChanges();
+
+      testComponent.datepicker.open();
       fixture.detectChanges();
 
       expect(document.querySelector('md-dialog-container')).not.toBeNull();
@@ -86,7 +95,10 @@ describe('MdDatepicker', () => {
     }));
 
     it('setting selected should update input and close calendar', async(() => {
-      testComponent.datepicker.openTouchUi();
+      testComponent.touch = true;
+      fixture.detectChanges();
+
+      testComponent.datepicker.open();
       fixture.detectChanges();
 
       expect(document.querySelector('md-dialog-container')).not.toBeNull();
@@ -105,6 +117,12 @@ describe('MdDatepicker', () => {
     it('startAt should fallback to input value', () => {
       expect(testComponent.datepicker.startAt).toEqual(new SimpleDate(2020, 0, 1));
     });
+
+    it('should attach popup to native input', () => {
+      let attachToRef = testComponent.datepickerInput.getPopupConnectionElementRef();
+      expect(attachToRef.nativeElement.tagName.toLowerCase())
+          .toBe('input', 'popup should be attached to native input');
+    });
   });
 
   describe('datepicker with too many inputs', () => {
@@ -126,7 +144,7 @@ describe('MdDatepicker', () => {
     });
 
     it('should throw when opened with no registered inputs', () => {
-      expect(() => testComponent.datepicker.openStandardUi()).toThrow();
+      expect(() => testComponent.datepicker.open()).toThrow();
     });
   });
 
@@ -277,6 +295,46 @@ describe('MdDatepicker', () => {
       expect(inputEl.disabled).toBe(true);
     });
   });
+
+  describe('datepicker with mdDatepickerToggle', () => {
+    let fixture: ComponentFixture<DatepickerWithToggle>;
+    let testComponent: DatepickerWithToggle;
+
+    beforeEach(() => {
+      fixture = TestBed.createComponent(DatepickerWithToggle);
+      fixture.detectChanges();
+
+      testComponent = fixture.componentInstance;
+    });
+
+    it('should open calendar when toggle clicked', () => {
+      expect(document.querySelector('md-dialog-container')).toBeNull();
+
+      let toggle = fixture.debugElement.query(By.css('button'));
+      dispatchMouseEvent(toggle.nativeElement, 'click');
+      fixture.detectChanges();
+
+      expect(document.querySelector('md-dialog-container')).not.toBeNull();
+    });
+  });
+
+  describe('datepicker inside input-container', () => {
+    let fixture: ComponentFixture<InputContainerDatepicker>;
+    let testComponent: InputContainerDatepicker;
+
+    beforeEach(() => {
+      fixture = TestBed.createComponent(InputContainerDatepicker);
+      fixture.detectChanges();
+
+      testComponent = fixture.componentInstance;
+    });
+
+    it('should attach popup to input-container underline', () => {
+      let attachToRef = testComponent.datepickerInput.getPopupConnectionElementRef();
+      expect(attachToRef.nativeElement.classList.contains('mat-input-underline'))
+          .toBe(true, 'popup should be attached to input-container underline');
+    });
+  });
 });
 
 
@@ -288,9 +346,13 @@ function detectModelChanges(fixture: ComponentFixture<any>) {
 
 
 @Component({
-  template: `<input [mdDatepicker]="d" value="1/1/2020"><md-datepicker #d></md-datepicker>`,
+  template: `
+    <input [mdDatepicker]="d" value="1/1/2020">
+    <md-datepicker #d [touchUi]="touch"></md-datepicker>
+  `,
 })
 class StandardDatepicker {
+  touch = false;
   @ViewChild('d') datepicker: MdDatepicker;
   @ViewChild(MdDatepickerInput) datepickerInput: MdDatepickerInput;
 }
@@ -324,7 +386,7 @@ class DatepickerWithStartAt {
 
 
 @Component({
-  template: `<input [(ngModel)]="selected" [mdDatepicker]="d"><md-datepicker #d></md-datepicker>`
+  template: `<input [(ngModel)]="selected" [mdDatepicker]="d"><md-datepicker #d></md-datepicker>`,
 })
 class DatepickerWithNgModel {
   selected: SimpleDate = null;
@@ -337,10 +399,33 @@ class DatepickerWithNgModel {
   template: `
     <input [formControl]="formControl" [mdDatepicker]="d">
     <md-datepicker #d></md-datepicker>
-  `
+  `,
 })
 class DatepickerWithFormControl {
   formControl = new FormControl();
   @ViewChild('d') datepicker: MdDatepicker;
   @ViewChild(MdDatepickerInput) datepickerInput: MdDatepickerInput;
 }
+
+
+@Component({
+  template: `
+    <input [mdDatepicker]="d">
+    <button [mdDatepickerToggle]="d"></button>
+    <md-datepicker #d [touchUi]="true"></md-datepicker>
+  `,
+})
+class DatepickerWithToggle {}
+
+
+@Component({
+  template: `
+      <md-input-container>
+        <input mdInput [mdDatepicker]="d">
+        <md-datepicker #d></md-datepicker>
+      </md-input-container>
+  `,
+})
+class InputContainerDatepicker {
+  @ViewChild(MdDatepickerInput) datepickerInput: MdDatepickerInput;
+}
diff --git a/src/lib/datepicker/datepicker.ts b/src/lib/datepicker/datepicker.ts
index 27a325bb0d73..5e0e20cb3cf6 100644
--- a/src/lib/datepicker/datepicker.ts
+++ b/src/lib/datepicker/datepicker.ts
@@ -53,6 +53,13 @@ export class MdDatepicker implements OnDestroy {
   set startAt(date: SimpleDate) { this._startAt = this._locale.parseDate(date); }
   private _startAt: SimpleDate;
 
+  /**
+   * Whether the calendar UI is in touch mode. In touch mode the calendar opens in a dialog rather
+   * than a popup and elements have more padding to allow for bigger touch targets.
+   */
+  @Input()
+  touchUi = false;
+
   @Output() selectedChanged = new EventEmitter<SimpleDate>();
 
   get _selected(): SimpleDate {
@@ -63,12 +70,6 @@ export class MdDatepicker implements OnDestroy {
     this.close();
   }
 
-  /**
-   * Whether the calendar UI is in touch mode. In touch mode the calendar opens in a dialog rather
-   * than a popup and elements have more padding to allow for bigger touch targets.
-   */
-  touchUi: boolean;
-
   /** The calendar template. */
   @ViewChild(TemplateRef) calendarTemplate: TemplateRef<any>;
 
@@ -106,21 +107,11 @@ export class MdDatepicker implements OnDestroy {
     this._datepickerInput = input;
   }
 
-  /** Opens the calendar in standard UI mode. */
-  openStandardUi(): void {
-    this._open();
-  }
-
-  /** Opens the calendar in touch UI mode. */
-  openTouchUi(): void {
-    this._open(true);
-  }
-
   /**
    * Open the calendar.
    * @param touchUi Whether to use the touch UI.
    */
-  private _open(touchUi = false): void {
+  open(): void {
     if (!this._datepickerInput) {
       throw new MdError('Attempted to open an MdDatepicker with no associated input.');
     }
@@ -129,8 +120,7 @@ export class MdDatepicker implements OnDestroy {
       this._calendarPortal = new TemplatePortal(this.calendarTemplate, this._viewContainerRef);
     }
 
-    this.touchUi = touchUi;
-    touchUi ? this._openAsDialog() : this._openAsPopup();
+    this.touchUi ? this._openAsDialog() : this._openAsPopup();
   }
 
   /** Close the calendar. */
diff --git a/src/lib/datepicker/index.ts b/src/lib/datepicker/index.ts
index b8138a0fd46c..f6afa6f473f2 100644
--- a/src/lib/datepicker/index.ts
+++ b/src/lib/datepicker/index.ts
@@ -9,6 +9,7 @@ import {MdDatepicker} from './datepicker';
 import {MdDatepickerInput} from './datepicker-input';
 import {MdDialogModule} from '../dialog/index';
 import {MdCalendar} from './calendar';
+import {MdDatepickerToggle} from './datepicker-toggle';
 
 
 export * from './calendar';
@@ -29,12 +30,14 @@ export * from './year-view';
   exports: [
     MdDatepicker,
     MdDatepickerInput,
+    MdDatepickerToggle,
   ],
   declarations: [
     MdCalendar,
     MdCalendarTable,
     MdDatepicker,
     MdDatepickerInput,
+    MdDatepickerToggle,
     MdMonthView,
     MdYearView,
   ],
diff --git a/src/lib/input/input-container.html b/src/lib/input/input-container.html
index cefe5a06f8d1..e19f0c715c53 100644
--- a/src/lib/input/input-container.html
+++ b/src/lib/input/input-container.html
@@ -29,7 +29,7 @@
     </div>
   </div>
 
-  <div class="mat-input-underline"
+  <div class="mat-input-underline" #underline
        [class.mat-disabled]="_mdInputChild.disabled">
     <span class="mat-input-ripple"
           [class.mat-accent]="dividerColor == 'accent'"
diff --git a/src/lib/input/input-container.scss b/src/lib/input/input-container.scss
index 79c5fd579341..bbcf70f92a4d 100644
--- a/src/lib/input/input-container.scss
+++ b/src/lib/input/input-container.scss
@@ -30,9 +30,10 @@ $mat-input-underline-disabled-background-image:
   }
 
   // Allow icons in a prefix/suffix/hint/etc to adapt to the correct size.
-  & .mat-icon {
-    width: auto;
-    height: auto;
+  & .mat-icon,
+  & .mat-datepicker-toggle {
+    width: 1em;
+    height: 1em;
     font-size: 100%;
     vertical-align: top;
   }
diff --git a/src/lib/input/input-container.ts b/src/lib/input/input-container.ts
index bbc7c0a15b91..8e1c71115be2 100644
--- a/src/lib/input/input-container.ts
+++ b/src/lib/input/input-container.ts
@@ -11,7 +11,7 @@ import {
   Optional,
   Output,
   EventEmitter,
-  Renderer
+  Renderer, ViewChild
 } from '@angular/core';
 import {coerceBooleanProperty} from '../core';
 import {NgControl} from '@angular/forms';
@@ -283,6 +283,8 @@ export class MdInputContainer implements AfterContentInit {
   }
   private _floatPlaceholder: FloatPlaceholderType = 'auto';
 
+  @ViewChild('underline') underlineRef: ElementRef;
+
   @ContentChild(MdInputDirective) _mdInputChild: MdInputDirective;
 
   @ContentChild(MdPlaceholder) _placeholderChild: MdPlaceholder;