diff --git a/src/lib/core/keyboard/keycodes.ts b/src/lib/core/keyboard/keycodes.ts
index 6204987a0e8a..af4c4b702f9a 100644
--- a/src/lib/core/keyboard/keycodes.ts
+++ b/src/lib/core/keyboard/keycodes.ts
@@ -18,3 +18,5 @@ export const END = 35;
 export const ENTER = 13;
 export const SPACE = 32;
 export const TAB = 9;
+
+export const ESCAPE = 27;
diff --git a/src/lib/sidenav/sidenav.scss b/src/lib/sidenav/sidenav.scss
index 1349cfee58df..bb0533cd473c 100644
--- a/src/lib/sidenav/sidenav.scss
+++ b/src/lib/sidenav/sidenav.scss
@@ -107,6 +107,7 @@ md-sidenav {
   bottom: 0;
   z-index: 3;
   min-width: 5%;
+  outline: 0;
 
   // TODO(kara): revisit scrolling behavior for sidenavs
   overflow-y: auto;
diff --git a/src/lib/sidenav/sidenav.spec.ts b/src/lib/sidenav/sidenav.spec.ts
index ad24acffd9ee..5678797639b1 100644
--- a/src/lib/sidenav/sidenav.spec.ts
+++ b/src/lib/sidenav/sidenav.spec.ts
@@ -4,6 +4,7 @@ import {By} from '@angular/platform-browser';
 import {MdSidenav, MdSidenavModule, MdSidenavToggleResult} from './sidenav';
 import {A11yModule} from '../core/a11y/index';
 import {PlatformModule} from '../core/platform/platform';
+import {ESCAPE} from '../core/keyboard/keycodes';
 
 
 function endSidenavTransition(fixture: ComponentFixture<any>) {
@@ -235,6 +236,59 @@ describe('MdSidenav', () => {
       expect(testComponent.backdropClickedCount).toBe(1);
     }));
 
+    it('should close when pressing escape', fakeAsync(() => {
+      let fixture = TestBed.createComponent(BasicTestApp);
+      let testComponent: BasicTestApp = fixture.debugElement.componentInstance;
+      let sidenav: MdSidenav = fixture.debugElement
+        .query(By.directive(MdSidenav)).componentInstance;
+
+      sidenav.open();
+
+      fixture.detectChanges();
+      endSidenavTransition(fixture);
+      tick();
+
+      expect(testComponent.openCount).toBe(1);
+      expect(testComponent.closeCount).toBe(0);
+
+      // Simulate pressing the escape key.
+      sidenav.handleKeydown({
+        keyCode: ESCAPE,
+        stopPropagation: () => {}
+      } as KeyboardEvent);
+
+      fixture.detectChanges();
+      endSidenavTransition(fixture);
+      tick();
+
+      expect(testComponent.closeCount).toBe(1);
+    }));
+
+    it('should restore focus to the trigger element on close', fakeAsync(() => {
+      let fixture = TestBed.createComponent(BasicTestApp);
+      let sidenav: MdSidenav = fixture.debugElement
+        .query(By.directive(MdSidenav)).componentInstance;
+      let trigger = document.createElement('button');
+
+      document.body.appendChild(trigger);
+      trigger.focus();
+      sidenav.open();
+
+      fixture.detectChanges();
+      endSidenavTransition(fixture);
+      tick();
+
+      sidenav.close();
+
+      fixture.detectChanges();
+      endSidenavTransition(fixture);
+      tick();
+
+      expect(document.activeElement)
+          .toBe(trigger, 'Expected focus to be restored to the trigger on close.');
+
+      trigger.parentNode.removeChild(trigger);
+    }));
   });
 
   describe('attributes', () => {
diff --git a/src/lib/sidenav/sidenav.ts b/src/lib/sidenav/sidenav.ts
index e6cc23d6e638..a993045b6602 100644
--- a/src/lib/sidenav/sidenav.ts
+++ b/src/lib/sidenav/sidenav.ts
@@ -16,9 +16,18 @@ import {
   ViewChild
 } from '@angular/core';
 import {CommonModule} from '@angular/common';
-import {Dir, coerceBooleanProperty, DefaultStyleCompatibilityModeModule} from '../core';
+import {Dir, MdError, coerceBooleanProperty, DefaultStyleCompatibilityModeModule} from '../core';
 import {A11yModule, A11Y_PROVIDERS} from '../core/a11y/index';
 import {FocusTrap} from '../core/a11y/focus-trap';
+import {ESCAPE} from '../core/keyboard/keycodes';
+
+
+/** Exception thrown when two MdSidenav are matching the same side. */
+export class MdDuplicatedSidenavError extends MdError {
+  constructor(align: string) {
+    super(`A sidenav was already declared for 'align="${align}"'`);
+  }
+}
 
 
 /** Sidenav toggle promise result. */
@@ -40,6 +49,7 @@ export class MdSidenavToggleResult {
   template: '<focus-trap [disabled]="isFocusTrapDisabled"><ng-content></ng-content></focus-trap>',
   host: {
     '(transitionend)': '_onTransitionEnd($event)',
+    '(keydown)': 'handleKeydown($event)',
     // must prevent the browser from aligning text based on value
     '[attr.align]': 'null',
     '[class.md-sidenav-closed]': '_isClosed',
@@ -51,6 +61,7 @@ export class MdSidenavToggleResult {
     '[class.md-sidenav-push]': '_modePush',
     '[class.md-sidenav-side]': '_modeSide',
     '[class.md-sidenav-invalid]': '!valid',
+    'tabIndex': '-1'
   },
   changeDetection: ChangeDetectionStrategy.OnPush,
   encapsulation: ViewEncapsulation.None,
@@ -128,7 +139,25 @@ export class MdSidenav implements AfterContentInit {
    * @param _elementRef The DOM element reference. Used for transition and width calculation.
    *     If not available we do not hook on transitions.
    */
-  constructor(private _elementRef: ElementRef) {}
+  constructor(private _elementRef: ElementRef, private _renderer: Renderer) {
+    this.onOpen.subscribe(() => {
+      this._elementFocusedBeforeSidenavWasOpened = document.activeElement as HTMLElement;
+
+      if (!this.isFocusTrapDisabled) {
+        this._focusTrap.focusFirstTabbableElementWhenReady();
+      }
+    });
+
+    this.onClose.subscribe(() => {
+      if (this._elementFocusedBeforeSidenavWasOpened instanceof HTMLElement) {
+        this._renderer.invokeElementMethod(this._elementFocusedBeforeSidenavWasOpened, 'focus');
+      } else {
+        this._renderer.invokeElementMethod(this._elementRef.nativeElement, 'blur');
+      }
+
+      this._elementFocusedBeforeSidenavWasOpened = null;
+    });
+  }
 
   ngAfterContentInit() {
     // This can happen when the sidenav is set to opened in the template and the transition
@@ -188,10 +217,6 @@ export class MdSidenav implements AfterContentInit {
       this.onCloseStart.emit();
     }
 
-    if (!this.isFocusTrapDisabled) {
-      this._focusTrap.focusFirstTabbableElementWhenReady();
-    }
-
     if (this._toggleAnimationPromise) {
       this._resolveToggleAnimationPromise(false);
     }
@@ -202,6 +227,16 @@ export class MdSidenav implements AfterContentInit {
     return this._toggleAnimationPromise;
   }
 
+  /**
+   * Handles the keyboard events.
+   */
+  handleKeydown(event: KeyboardEvent) {
+    if (event.keyCode === ESCAPE) {
+      this.close();
+      event.stopPropagation();
+    }
+  }
+
   /**
    * When transition has finished, set the internal state for classes and emit the proper event.
    * The event passed is actually of type TransitionEvent, but that type is not available in
@@ -255,6 +290,8 @@ export class MdSidenav implements AfterContentInit {
     }
     return 0;
   }
+
+  private _elementFocusedBeforeSidenavWasOpened: HTMLElement = null;
 }
 
 /**