diff --git a/src/lib/dialog/dialog.spec.ts b/src/lib/dialog/dialog.spec.ts
index 70c09652081d..bed2d2ce11da 100644
--- a/src/lib/dialog/dialog.spec.ts
+++ b/src/lib/dialog/dialog.spec.ts
@@ -22,6 +22,7 @@ import {By} from '@angular/platform-browser';
 import {NoopAnimationsModule} from '@angular/platform-browser/animations';
 import {Location} from '@angular/common';
 import {SpyLocation} from '@angular/common/testing';
+import {Directionality} from '@angular/cdk/bidi';
 import {MdDialogContainer} from './dialog-container';
 import {OverlayContainer} from '@angular/cdk/overlay';
 import {ESCAPE} from '@angular/cdk/keycodes';
@@ -433,6 +434,14 @@ describe('MdDialog', () => {
     expect(overlayPane.getAttribute('dir')).toBe('rtl');
   });
 
+  it('should inject the correct layout direction in the component instance', () => {
+    const dialogRef = dialog.open(PizzaMsg, { direction: 'rtl' });
+
+    viewContainerFixture.detectChanges();
+
+    expect(dialogRef.componentInstance.directionality.value).toBe('rtl');
+  });
+
   it('should close all of the dialogs', async(() => {
     dialog.open(PizzaMsg);
     dialog.open(PizzaMsg);
@@ -970,7 +979,8 @@ class ComponentWithTemplateRef {
 @Component({template: '<p>Pizza</p> <input> <button>Close</button>'})
 class PizzaMsg {
   constructor(public dialogRef: MdDialogRef<PizzaMsg>,
-              public dialogInjector: Injector) {}
+              public dialogInjector: Injector,
+              public directionality: Directionality) {}
 }
 
 @Component({
diff --git a/src/lib/dialog/dialog.ts b/src/lib/dialog/dialog.ts
index 86865578919c..796d4d53bcf8 100644
--- a/src/lib/dialog/dialog.ts
+++ b/src/lib/dialog/dialog.ts
@@ -28,12 +28,14 @@ import {
   TemplateRef,
 } from '@angular/core';
 import {extendObject, PortalInjector} from '@angular/material/core';
+import {Directionality} from '@angular/cdk/bidi';
 import {Observable} from 'rxjs/Observable';
 import {defer} from 'rxjs/observable/defer';
 import {Subject} from 'rxjs/Subject';
 import {MdDialogConfig} from './dialog-config';
 import {MdDialogContainer} from './dialog-container';
 import {MdDialogRef} from './dialog-ref';
+import {of as observableOf} from 'rxjs/observable/of';
 
 export const MD_DIALOG_DATA = new InjectionToken<any>('MdDialogData');
 
@@ -276,6 +278,10 @@ export class MdDialog {
     injectionTokens.set(MdDialogRef, dialogRef);
     injectionTokens.set(MdDialogContainer, dialogContainer);
     injectionTokens.set(MD_DIALOG_DATA, config.data);
+    injectionTokens.set(Directionality, {
+      value: config.direction,
+      change: observableOf()
+    });
 
     return new PortalInjector(userInjector || this._injector, injectionTokens);
   }