diff --git a/src/lib/list/index.ts b/src/lib/list/index.ts
index 78100824d63f..0afe8ac61e30 100644
--- a/src/lib/list/index.ts
+++ b/src/lib/list/index.ts
@@ -1,5 +1,5 @@
 import {NgModule, ModuleWithProviders} from '@angular/core';
-import {MdLineModule, CompatibilityModule} from '../core';
+import {MdLineModule, MdRippleModule, CompatibilityModule} from '../core';
 import {
   MdList,
   MdListItem,
@@ -10,11 +10,12 @@ import {
   MdNavListCssMatStyler,
   MdDividerCssMatStyler,
   MdListSubheaderCssMatStyler,
+  MdNavListTokenSetter,
 } from './list';
 
 
 @NgModule({
-  imports: [MdLineModule, CompatibilityModule],
+  imports: [MdLineModule, MdRippleModule, CompatibilityModule],
   exports: [
     MdList,
     MdListItem,
@@ -26,7 +27,8 @@ import {
     MdListCssMatStyler,
     MdNavListCssMatStyler,
     MdDividerCssMatStyler,
-    MdListSubheaderCssMatStyler
+    MdListSubheaderCssMatStyler,
+    MdNavListTokenSetter,
   ],
   declarations: [
     MdList,
@@ -37,7 +39,8 @@ import {
     MdListCssMatStyler,
     MdNavListCssMatStyler,
     MdDividerCssMatStyler,
-    MdListSubheaderCssMatStyler
+    MdListSubheaderCssMatStyler,
+    MdNavListTokenSetter,
   ],
 })
 export class MdListModule {
diff --git a/src/lib/list/list-item.html b/src/lib/list/list-item.html
index 323ec3e1e004..c603ad62a727 100644
--- a/src/lib/list/list-item.html
+++ b/src/lib/list/list-item.html
@@ -1,4 +1,5 @@
-<div class="mat-list-item-content" [class.mat-list-item-focus]="_hasFocus">
+<div class="mat-list-item-content" [class.mat-list-item-focus]="_hasFocus"
+    md-ripple [mdRippleDisabled]="!isRippleEnabled()">
   <ng-content
       select="[md-list-avatar],[md-list-icon], [mat-list-avatar], [mat-list-icon]"></ng-content>
   <div class="mat-list-text"><ng-content select="[md-line], [mat-line]"></ng-content></div>
diff --git a/src/lib/list/list.scss b/src/lib/list/list.scss
index 0b7f34621ead..3751684ec2a0 100644
--- a/src/lib/list/list.scss
+++ b/src/lib/list/list.scss
@@ -44,6 +44,7 @@ $mat-dense-three-line-height: 76px;
     font-size: $font-size;
     height: $base-height;
     padding: 0 $mat-list-side-padding;
+    position: relative;
   }
 
   &.mat-list-item-avatar .mat-list-item-content {
diff --git a/src/lib/list/list.spec.ts b/src/lib/list/list.spec.ts
index db1937370472..b7a46ec95cdb 100644
--- a/src/lib/list/list.spec.ts
+++ b/src/lib/list/list.spec.ts
@@ -1,5 +1,5 @@
 import {async, TestBed} from '@angular/core/testing';
-import {Component} from '@angular/core';
+import {Component, QueryList, ViewChildren} from '@angular/core';
 import {By} from '@angular/platform-browser';
 import {MdListItem, MdListModule} from './index';
 
@@ -19,6 +19,7 @@ describe('MdList', () => {
         ListWithDynamicNumberOfLines,
         ListWithMultipleItems,
         ListWithManyLines,
+        NavListWithOneAnchorItem,
       ],
     });
 
@@ -114,6 +115,29 @@ describe('MdList', () => {
     expect(list.nativeElement.getAttribute('role')).toBe('list');
     expect(listItem.nativeElement.getAttribute('role')).toBe('listitem');
   });
+
+  it('should not show ripples for non-nav lists', () => {
+    let fixture = TestBed.createComponent(ListWithOneAnchorItem);
+    fixture.detectChanges();
+
+    const items: QueryList<MdListItem> = fixture.debugElement.componentInstance.listItems;
+    expect(items.length).toBeGreaterThan(0);
+    items.forEach(item => expect(item.isRippleEnabled()).toBe(false));
+  });
+
+  it('should maybe show ripples for nav lists', () => {
+    let fixture = TestBed.createComponent(NavListWithOneAnchorItem);
+    fixture.detectChanges();
+
+    const items: QueryList<MdListItem> = fixture.debugElement.componentInstance.listItems;
+    expect(items.length).toBeGreaterThan(0);
+    // Ripples should be enabled by default, and can be disabled with a binding.
+    items.forEach(item => expect(item.isRippleEnabled()).toBe(true));
+
+    fixture.debugElement.componentInstance.disableRipple = true;
+    fixture.detectChanges();
+    items.forEach(item => expect(item.isRippleEnabled()).toBe(false));
+  });
 });
 
 
@@ -132,7 +156,22 @@ class BaseTestList {
       Paprika
     </a>
   </md-list>`})
-class ListWithOneAnchorItem extends BaseTestList { }
+class ListWithOneAnchorItem extends BaseTestList {
+  // This needs to be declared directly on the class; if declared on the BaseTestList superclass,
+  // it doesn't get populated.
+  @ViewChildren(MdListItem) listItems: QueryList<MdListItem>;
+}
+
+@Component({template: `
+  <md-nav-list>
+    <a md-list-item [disableRipple]="disableRipple">
+      Paprika
+    </a>
+  </md-nav-list>`})
+class NavListWithOneAnchorItem extends BaseTestList {
+  @ViewChildren(MdListItem) listItems: QueryList<MdListItem>;
+  disableRipple: boolean = false;
+}
 
 @Component({template: `
   <md-list>
diff --git a/src/lib/list/list.ts b/src/lib/list/list.ts
index f5a79b7f0778..5a7df8fe1d76 100644
--- a/src/lib/list/list.ts
+++ b/src/lib/list/list.ts
@@ -6,6 +6,10 @@ import {
   QueryList,
   Directive,
   ElementRef,
+  Inject,
+  Input,
+  OpaqueToken,
+  Optional,
   Renderer,
   AfterContentInit,
 } from '@angular/core';
@@ -16,6 +20,15 @@ import {MdLine, MdLineSetter} from '../core';
 })
 export class MdListDivider {}
 
+/**
+ * Token used to inject the list type into child MdListItem components so they can know whether
+ * they're in a nav list (and thus should use an MdRipple).
+ */
+export const LIST_TYPE_TOKEN = new OpaqueToken('list_type');
+
+const NORMAL_LIST_TYPE = 'normal_list_type';
+const NAV_LIST_TYPE = 'nav_list_type';
+
 @Component({
   moduleId: module.id,
   selector: 'md-list, mat-list, md-nav-list, mat-nav-list',
@@ -23,6 +36,7 @@ export class MdListDivider {}
     'role': 'list'},
   template: '<ng-content></ng-content>',
   styleUrls: ['list.css'],
+  providers: [{ provide: LIST_TYPE_TOKEN, useValue: NORMAL_LIST_TYPE }],
   encapsulation: ViewEncapsulation.None
 })
 export class MdList {}
@@ -51,6 +65,15 @@ export class MdListCssMatStyler {}
 })
 export class MdNavListCssMatStyler {}
 
+/**
+ * Directive to set the ListType token to NAV_LIST_TYPE.
+ */
+@Directive({
+  selector: 'md-nav-list, mat-nav-list',
+  providers: [{ provide: LIST_TYPE_TOKEN, useValue: NAV_LIST_TYPE }],
+})
+export class MdNavListTokenSetter {}
+
 /**
  * Directive whose purpose is to add the mat- CSS styling to this selector.
  * @docs-private
@@ -112,6 +135,11 @@ export class MdListSubheaderCssMatStyler {}
   encapsulation: ViewEncapsulation.None
 })
 export class MdListItem implements AfterContentInit {
+  /**
+   * Whether the ripple effect on click should be disabled. This applies only to list items that
+   * are children of an md-nav-list; md-list items never have ripples.
+   */
+  @Input() disableRipple: boolean = false;
   _hasFocus: boolean = false;
 
   private _lineSetter: MdLineSetter;
@@ -124,12 +152,18 @@ export class MdListItem implements AfterContentInit {
         this._element.nativeElement, 'mat-list-item-avatar', avatar != null);
   }
 
-  constructor(private _renderer: Renderer, private _element: ElementRef) {}
+  constructor(private _renderer: Renderer, private _element: ElementRef,
+      @Optional() @Inject(LIST_TYPE_TOKEN) private _listType: string) {}
 
   ngAfterContentInit() {
     this._lineSetter = new MdLineSetter(this._lines, this._renderer, this._element);
   }
 
+  /** Whether this list item should show a ripple effect when clicked.  */
+  isRippleEnabled() {
+    return !this.disableRipple && (this._listType === NAV_LIST_TYPE);
+  }
+
   _handleFocus() {
     this._hasFocus = true;
   }