diff --git a/src/demo-app/demo-app-module.ts b/src/demo-app/demo-app-module.ts
index 9c7b7ac2daba..0949d5a19849 100644
--- a/src/demo-app/demo-app-module.ts
+++ b/src/demo-app/demo-app-module.ts
@@ -32,9 +32,7 @@ import {SidenavDemo} from './sidenav/sidenav-demo';
 import {SnackBarDemo} from './snack-bar/snack-bar-demo';
 import {PortalDemo, ScienceJoke} from './portal/portal-demo';
 import {MenuDemo} from './menu/menu-demo';
-import {TabsDemo} from './tabs/tab-group-demo';
-
-
+import {TabsDemoModule} from './tabs/tabs-demo.module';
 
 @NgModule({
   imports: [
@@ -43,6 +41,7 @@ import {TabsDemo} from './tabs/tab-group-demo';
     HttpModule,
     RouterModule.forRoot(DEMO_APP_ROUTES),
     MaterialModule.forRoot(),
+    TabsDemoModule,
   ],
   declarations: [
     BaselineDemo,
@@ -76,7 +75,6 @@ import {TabsDemo} from './tabs/tab-group-demo';
     SliderDemo,
     SlideToggleDemo,
     SpagettiPanel,
-    TabsDemo,
     ToolbarDemo,
     TooltipDemo,
   ],
diff --git a/src/demo-app/demo-app/routes.ts b/src/demo-app/demo-app/routes.ts
index b7c3fa47f3a7..68ec614443db 100644
--- a/src/demo-app/demo-app/routes.ts
+++ b/src/demo-app/demo-app/routes.ts
@@ -3,7 +3,7 @@ import {Home} from './demo-app';
 import {ButtonDemo} from '../button/button-demo';
 import {BaselineDemo} from '../baseline/baseline-demo';
 import {ButtonToggleDemo} from '../button-toggle/button-toggle-demo';
-import {TabsDemo} from '../tabs/tab-group-demo';
+import {TabsDemo} from '../tabs/tabs-demo';
 import {GridListDemo} from '../grid-list/grid-list-demo';
 import {GesturesDemo} from '../gestures/gestures-demo';
 import {LiveAnnouncerDemo} from '../live-announcer/live-announcer-demo';
@@ -27,7 +27,7 @@ import {RippleDemo} from '../ripple/ripple-demo';
 import {DialogDemo} from '../dialog/dialog-demo';
 import {TooltipDemo} from '../tooltip/tooltip-demo';
 import {SnackBarDemo} from '../snack-bar/snack-bar-demo';
-
+import {TABS_DEMO_ROUTES} from '../tabs/routes';
 
 export const DEMO_APP_ROUTES: Routes = [
   {path: '', component: Home},
@@ -51,7 +51,7 @@ export const DEMO_APP_ROUTES: Routes = [
   {path: 'live-announcer', component: LiveAnnouncerDemo},
   {path: 'gestures', component: GesturesDemo},
   {path: 'grid-list', component: GridListDemo},
-  {path: 'tabs', component: TabsDemo},
+  {path: 'tabs', component: TabsDemo, children: TABS_DEMO_ROUTES},
   {path: 'button-toggle', component: ButtonToggleDemo},
   {path: 'baseline', component: BaselineDemo},
   {path: 'ripple', component: RippleDemo},
diff --git a/src/demo-app/tabs/routes.ts b/src/demo-app/tabs/routes.ts
new file mode 100644
index 000000000000..34ce652f7e78
--- /dev/null
+++ b/src/demo-app/tabs/routes.ts
@@ -0,0 +1,10 @@
+import {Routes} from '@angular/router';
+
+import {SunnyTabContent, RainyTabContent, FoggyTabContent} from '../tabs/tabs-demo';
+
+export const TABS_DEMO_ROUTES: Routes = [
+  {path: '', redirectTo: 'sunny-tab', pathMatch: 'full'},
+  {path: 'sunny-tab', component: SunnyTabContent},
+  {path: 'rainy-tab', component: RainyTabContent},
+  {path: 'foggy-tab', component: FoggyTabContent},
+];
diff --git a/src/demo-app/tabs/tab-group-demo.scss b/src/demo-app/tabs/tab-group-demo.scss
deleted file mode 100644
index 5750046c04f6..000000000000
--- a/src/demo-app/tabs/tab-group-demo.scss
+++ /dev/null
@@ -1,9 +0,0 @@
-.demo-tab-group {
-  border: 1px solid #e0e0e0;
-  .md-tab-header {
-    background: #f9f9f9;
-  }
-  .md-tab-body {
-    padding: 12px;
-  }
-}
diff --git a/src/demo-app/tabs/tab-group-demo.ts b/src/demo-app/tabs/tab-group-demo.ts
deleted file mode 100644
index 3fc5d0953386..000000000000
--- a/src/demo-app/tabs/tab-group-demo.ts
+++ /dev/null
@@ -1,26 +0,0 @@
-import {Component, ViewEncapsulation} from '@angular/core';
-import {Observable} from 'rxjs/Observable';
-
-
-@Component({
-  moduleId: module.id,
-  selector: 'tab-group-demo',
-  templateUrl: 'tab-group-demo.html',
-  styleUrls: ['tab-group-demo.css'],
-  encapsulation: ViewEncapsulation.None,
-})
-export class TabsDemo {
-  tabs = [
-    { label: 'Tab One', content: 'This is the body of the first tab' },
-    { label: 'Tab Two', content: 'This is the body of the second tab' },
-    { label: 'Tab Three', content: 'This is the body of the third tab' },
-  ];
-  asyncTabs: Observable<any>;
-  constructor() {
-    this.asyncTabs = Observable.create((observer: any) => {
-      setTimeout(() => {
-        observer.next(this.tabs);
-      }, 1000);
-    });
-  }
-}
diff --git a/src/demo-app/tabs/tab-group-demo.html b/src/demo-app/tabs/tabs-demo.html
similarity index 67%
rename from src/demo-app/tabs/tab-group-demo.html
rename to src/demo-app/tabs/tabs-demo.html
index 3803814796ed..656b09d02a71 100644
--- a/src/demo-app/tabs/tab-group-demo.html
+++ b/src/demo-app/tabs/tabs-demo.html
@@ -1,3 +1,19 @@
+<h1>Tab Nav Bar</h1>
+
+<div class="demo-nav-bar">
+  <nav md-tab-nav-bar aria-label="weather navigation links">
+    <a md-tab-link
+       *ngFor="let tabLink of tabLinks; let i = index"
+       [routerLink]="tabLink.link"
+       [active]="activeLinkIndex === i"
+       (click)="activeLinkIndex = i">
+      {{tabLink.label}}
+    </a>
+  </nav>
+  <router-outlet></router-outlet>
+</div>
+
+
 <h1>Tab Group Demo</h1>
 
 <md-tab-group class="demo-tab-group">
@@ -13,6 +29,7 @@ <h1>Tab Group Demo</h1>
   </md-tab>
 </md-tab-group>
 
+
 <h1>Async Tabs</h1>
 
 <md-tab-group class="demo-tab-group">
diff --git a/src/demo-app/tabs/tabs-demo.module.ts b/src/demo-app/tabs/tabs-demo.module.ts
new file mode 100644
index 000000000000..f564e2dc628a
--- /dev/null
+++ b/src/demo-app/tabs/tabs-demo.module.ts
@@ -0,0 +1,23 @@
+import {NgModule} from '@angular/core';
+import {MaterialModule} from '@angular/material';
+import {FormsModule} from '@angular/forms';
+import {BrowserModule} from '@angular/platform-browser';
+import {RouterModule} from '@angular/router';
+
+import {TabsDemo, SunnyTabContent, RainyTabContent, FoggyTabContent} from './tabs-demo';
+
+@NgModule({
+  imports: [
+    FormsModule,
+    BrowserModule,
+    MaterialModule,
+    RouterModule,
+  ],
+  declarations: [
+    TabsDemo,
+    SunnyTabContent,
+    RainyTabContent,
+    FoggyTabContent,
+  ]
+})
+export class TabsDemoModule {}
diff --git a/src/demo-app/tabs/tabs-demo.scss b/src/demo-app/tabs/tabs-demo.scss
new file mode 100644
index 000000000000..0a0337ee419c
--- /dev/null
+++ b/src/demo-app/tabs/tabs-demo.scss
@@ -0,0 +1,22 @@
+.demo-nav-bar {
+  border: 1px solid #e0e0e0;
+  [md-tab-nav-bar] {
+    background: #f9f9f9;
+  }
+  sunny-routed-content,
+  rainy-routed-content,
+  foggy-routed-content {
+    display: block;
+    padding: 12px;
+  }
+}
+
+.demo-tab-group {
+  border: 1px solid #e0e0e0;
+  .md-tab-header {
+    background: #f9f9f9;
+  }
+  .md-tab-body {
+    padding: 12px;
+  }
+}
\ No newline at end of file
diff --git a/src/demo-app/tabs/tabs-demo.ts b/src/demo-app/tabs/tabs-demo.ts
new file mode 100644
index 000000000000..5fda1dffee88
--- /dev/null
+++ b/src/demo-app/tabs/tabs-demo.ts
@@ -0,0 +1,65 @@
+import {Component, ViewEncapsulation} from '@angular/core';
+import {Router} from '@angular/router';
+import {Observable} from 'rxjs/Observable';
+
+@Component({
+  moduleId: module.id,
+  selector: 'tabs-demo',
+  templateUrl: 'tabs-demo.html',
+  styleUrls: ['tabs-demo.css'],
+  encapsulation: ViewEncapsulation.None,
+})
+export class TabsDemo {
+  tabLinks = [
+    { label: 'Sun', link: 'sunny-tab'},
+    { label: 'Rain', link: 'rainy-tab'},
+    { label: 'Fog', link: 'foggy-tab'},
+  ];
+  activeLinkIndex = 0;
+
+  tabs = [
+    { label: 'Tab One', content: 'This is the body of the first tab' },
+    { label: 'Tab Two', content: 'This is the body of the second tab' },
+    { label: 'Tab Three', content: 'This is the body of the third tab' },
+  ];
+
+  asyncTabs: Observable<any>;
+
+  constructor(private router: Router) {
+    this.asyncTabs = Observable.create((observer: any) => {
+      setTimeout(() => {
+        observer.next(this.tabs);
+      }, 1000);
+    });
+
+    // Initialize the index by checking if a tab link is contained in the url.
+    // This is not an ideal check and can be removed if routerLink exposes if it is active.
+    // https://github.com/angular/angular/pull/12525
+    this.activeLinkIndex =
+        this.tabLinks.findIndex(routedTab => router.url.indexOf(routedTab.link) != -1);
+  }
+}
+
+
+@Component({
+  moduleId: module.id,
+  selector: 'sunny-routed-content',
+  template: 'This is the routed body of the sunny tab.',
+})
+export class SunnyTabContent {}
+
+
+@Component({
+  moduleId: module.id,
+  selector: 'rainy-routed-content',
+  template: 'This is the routed body of the rainy tab.',
+})
+export class RainyTabContent {}
+
+
+@Component({
+  moduleId: module.id,
+  selector: 'foggy-routed-content',
+  template: 'This is the routed body of the foggy tab.',
+})
+export class FoggyTabContent {}
diff --git a/src/lib/index.ts b/src/lib/index.ts
index 027498aea622..e242a9fc8777 100644
--- a/src/lib/index.ts
+++ b/src/lib/index.ts
@@ -20,5 +20,6 @@ export * from './slider/index';
 export * from './slide-toggle/index';
 export * from './snack-bar/index';
 export * from './tabs/index';
+export * from './tabs/tab-nav-bar/index';
 export * from './toolbar/index';
 export * from './tooltip/index';
diff --git a/src/lib/tabs/_tabs-common.scss b/src/lib/tabs/_tabs-common.scss
new file mode 100644
index 000000000000..672cfa6495e2
--- /dev/null
+++ b/src/lib/tabs/_tabs-common.scss
@@ -0,0 +1,40 @@
+@import '../core/style/variables';
+
+$md-tab-bar-height: 48px !default;
+
+// Mixin styles for labels that are contained within the tab header.
+@mixin tab-label {
+  line-height: $md-tab-bar-height;
+  height: $md-tab-bar-height;
+  padding: 0 12px;
+  font-size: $md-body-font-size-base;
+  font-family: $md-font-family;
+  font-weight: 500;
+  cursor: pointer;
+  box-sizing: border-box;
+  color: currentColor;
+  opacity: 0.6;
+  min-width: 160px;
+  text-align: center;
+  &:focus {
+    outline: none;
+    opacity: 1;
+  }
+}
+
+// Mixin styles for the top section of the view; contains the tab labels.
+@mixin tab-header {
+  overflow: hidden;
+  position: relative;
+  display: flex;
+  flex-direction: row;
+  flex-shrink: 0;
+}
+
+// Mixin styles for the ink bar that displays near the active tab in the header.
+@mixin ink-bar {
+  position: absolute;
+  bottom: 0;
+  height: 2px;
+  transition: 350ms ease-out;
+}
\ No newline at end of file
diff --git a/src/lib/tabs/_tabs-theme.scss b/src/lib/tabs/_tabs-theme.scss
index abb5ceeb4d5a..ff0017b5ad16 100644
--- a/src/lib/tabs/_tabs-theme.scss
+++ b/src/lib/tabs/_tabs-theme.scss
@@ -8,7 +8,8 @@
   $warn: map-get($theme, warn);
   $background: map-get($theme, background);
   $foreground: map-get($theme, foreground);
-  
+
+  [md-tab-nav-bar],
   .md-tab-header {
     border-bottom: 1px solid md-color($background, status-bar);
   }
diff --git a/src/lib/tabs/tab-group.scss b/src/lib/tabs/tab-group.scss
index c0dfd8e2d050..3e48ae569952 100644
--- a/src/lib/tabs/tab-group.scss
+++ b/src/lib/tabs/tab-group.scss
@@ -1,7 +1,5 @@
 @import '../core/style/variables';
-
-
-$md-tab-bar-height: 48px !default;
+@import 'tabs-common';
 
 :host {
   display: flex;
@@ -9,33 +7,14 @@ $md-tab-bar-height: 48px !default;
   font-family: $md-font-family;
 }
 
-// The top section of the view; contains the tab labels
+// Styling for the heading containing the tab labels
 .md-tab-header {
-  overflow: hidden;
-  position: relative;
-  display: flex;
-  flex-direction: row;
-  flex-shrink: 0;
+  @include tab-header;
 }
 
-// Wraps each tab label 
+// Wraps each tab label
 .md-tab-label {
-  line-height: $md-tab-bar-height;
-  height: $md-tab-bar-height;
-  padding: 0 12px;
-  font-size: $md-body-font-size-base;
-  font-family: $md-font-family;
-  font-weight: 500;
-  cursor: pointer;
-  box-sizing: border-box;
-  color: currentColor;
-  opacity: 0.6;
-  min-width: 160px;
-  text-align: center;
-  &:focus {
-    outline: none;
-    opacity: 1;
-  }
+  @include tab-label;
 }
 
 @media ($md-xsmall) {
@@ -44,9 +23,9 @@ $md-tab-bar-height: 48px !default;
   }
 }
 
-.md-tab-disabled {
-  cursor: default;
-  pointer-events: none;
+// The ink bar that displays next to the active tab
+md-ink-bar {
+  @include ink-bar;
 }
 
 // The bottom section of the view; contains the tab bodies 
@@ -69,10 +48,8 @@ $md-tab-bar-height: 48px !default;
   }
 }
 
-// The colored bar that underlines the active tab 
-md-ink-bar {
-  position: absolute;
-  bottom: 0;
-  height: 2px;
-  transition: 350ms ease-out;
-}
+// Styling for any tab that is marked disabled
+.md-tab-disabled {
+  cursor: default;
+  pointer-events: none;
+}
\ No newline at end of file
diff --git a/src/lib/tabs/tab-nav-bar/index.ts b/src/lib/tabs/tab-nav-bar/index.ts
new file mode 100644
index 000000000000..f66d9f31e3dd
--- /dev/null
+++ b/src/lib/tabs/tab-nav-bar/index.ts
@@ -0,0 +1 @@
+export * from './tab-nav-bar';
diff --git a/src/lib/tabs/tab-nav-bar/tab-nav-bar.html b/src/lib/tabs/tab-nav-bar/tab-nav-bar.html
new file mode 100644
index 000000000000..3b849fe4cae3
--- /dev/null
+++ b/src/lib/tabs/tab-nav-bar/tab-nav-bar.html
@@ -0,0 +1,2 @@
+<ng-content></ng-content>
+<md-ink-bar></md-ink-bar>
diff --git a/src/lib/tabs/tab-nav-bar/tab-nav-bar.scss b/src/lib/tabs/tab-nav-bar/tab-nav-bar.scss
new file mode 100644
index 000000000000..01d5ee6155e1
--- /dev/null
+++ b/src/lib/tabs/tab-nav-bar/tab-nav-bar.scss
@@ -0,0 +1,24 @@
+@import '../tabs-common';
+@import '../../core/style/variables';
+
+// Wraps the bar containing the anchors
+[md-tab-nav-bar] {
+  @include tab-header;
+}
+
+// Wraps each link in the header
+[md-tab-link] {
+  @include tab-label;
+  text-decoration: none;
+}
+
+@media ($md-xsmall) {
+  [md-tab-link] {
+    min-width: 72px;
+  }
+}
+
+// Styling for the ink bar that displays near the activated anchor
+md-ink-bar {
+  @include ink-bar;
+}
\ No newline at end of file
diff --git a/src/lib/tabs/tab-nav-bar/tab-nav-bar.spec.ts b/src/lib/tabs/tab-nav-bar/tab-nav-bar.spec.ts
new file mode 100644
index 000000000000..a2074c18fdf5
--- /dev/null
+++ b/src/lib/tabs/tab-nav-bar/tab-nav-bar.spec.ts
@@ -0,0 +1,55 @@
+import {async, ComponentFixture, TestBed} from '@angular/core/testing';
+import {MdTabsModule} from '../tabs';
+import {Component} from '@angular/core';
+import {By} from '@angular/platform-browser';
+
+
+describe('MdTabNavBar', () => {
+
+  beforeEach(async(() => {
+    TestBed.configureTestingModule({
+      imports: [MdTabsModule.forRoot()],
+      declarations: [
+        SimpleTabNavBarTestApp
+      ],
+    });
+
+    TestBed.compileComponents();
+  }));
+
+  describe('basic behavior', () => {
+    let fixture: ComponentFixture<SimpleTabNavBarTestApp>;
+
+    beforeEach(() => {
+      fixture = TestBed.createComponent(SimpleTabNavBarTestApp);
+    });
+
+    it('should change active index on click', () => {
+      let component = fixture.debugElement.componentInstance;
+
+      // select the second link
+      let tabLink = fixture.debugElement.queryAll(By.css('a'))[1];
+      tabLink.nativeElement.click();
+      expect(component.activeIndex).toBe(1);
+
+      // select the third link
+      tabLink = fixture.debugElement.queryAll(By.css('a'))[2];
+      tabLink.nativeElement.click();
+      expect(component.activeIndex).toBe(2);
+    });
+  });
+});
+
+@Component({
+  selector: 'test-app',
+  template: `
+    <nav md-tab-nav-bar>
+      <a md-tab-link [active]="activeIndex === 0" (click)="activeIndex = 0">Tab One</a>
+      <a md-tab-link [active]="activeIndex === 1" (click)="activeIndex = 1">Tab Two</a>
+      <a md-tab-link [active]="activeIndex === 2" (click)="activeIndex = 2">Tab Three</a>
+    </nav>
+  `
+})
+class SimpleTabNavBarTestApp {
+  activeIndex = 0;
+}
diff --git a/src/lib/tabs/tab-nav-bar/tab-nav-bar.ts b/src/lib/tabs/tab-nav-bar/tab-nav-bar.ts
new file mode 100644
index 000000000000..cb4eef157100
--- /dev/null
+++ b/src/lib/tabs/tab-nav-bar/tab-nav-bar.ts
@@ -0,0 +1,43 @@
+import {Component, Input, ViewChild, ElementRef, ViewEncapsulation, Directive} from '@angular/core';
+import {MdInkBar} from '../ink-bar';
+
+/**
+ * Navigation component matching the styles of the tab group header.
+ * Provides anchored navigation with animated ink bar.
+ */
+@Component({
+  moduleId: module.id,
+  selector: '[md-tab-nav-bar]',
+  templateUrl: 'tab-nav-bar.html',
+  styleUrls: ['tab-nav-bar.css'],
+  encapsulation: ViewEncapsulation.None,
+})
+export class MdTabNavBar {
+  @ViewChild(MdInkBar) _inkBar: MdInkBar;
+
+  /** Animates the ink bar to the position of the active link element. */
+  updateActiveLink(element: HTMLElement) {
+    this._inkBar.alignToElement(element);
+  }
+}
+
+@Directive({
+  selector: '[md-tab-link]',
+})
+export class MdTabLink {
+  private _isActive: boolean = false;
+
+  @Input()
+  get active(): boolean {
+    return this._isActive;
+  }
+
+  set active(value: boolean) {
+    this._isActive = value;
+    if (value) {
+      this._mdTabNavBar.updateActiveLink(this._element.nativeElement);
+    }
+  }
+
+  constructor(private _mdTabNavBar: MdTabNavBar, private _element: ElementRef) {}
+}
diff --git a/src/lib/tabs/tabs.ts b/src/lib/tabs/tabs.ts
index ee77040a63d1..798080b89c9d 100644
--- a/src/lib/tabs/tabs.ts
+++ b/src/lib/tabs/tabs.ts
@@ -17,6 +17,7 @@ import {PortalModule} from '../core';
 import {MdTabLabel} from './tab-label';
 import {MdTabContent} from './tab-content';
 import {MdTabLabelWrapper} from './tab-label-wrapper';
+import {MdTabNavBar, MdTabLink} from './tab-nav-bar/tab-nav-bar';
 import {MdInkBar} from './ink-bar';
 import {Observable} from 'rxjs/Observable';
 import 'rxjs/add/operator/map';
@@ -119,7 +120,7 @@ export class MdTabGroup {
   }
 
   /**
-   * Waits one frame for the view to update, then upates the ink bar
+   * Waits one frame for the view to update, then updates the ink bar
    * Note: This must be run outside of the zone or it will create an infinite change detection loop
    * TODO: internal
    */
@@ -229,9 +230,10 @@ export class MdTabGroup {
 
 @NgModule({
   imports: [CommonModule, PortalModule],
-  // Don't export MdInkBar or MdTabLabelWrapper, as they are internal implementatino details.
-  exports: [MdTabGroup, MdTabLabel, MdTabContent, MdTab],
-  declarations: [MdTabGroup, MdTabLabel, MdTabContent, MdTab, MdInkBar, MdTabLabelWrapper],
+  // Don't export MdInkBar or MdTabLabelWrapper, as they are internal implementation details.
+  exports: [MdTabGroup, MdTabLabel, MdTabContent, MdTab, MdTabNavBar, MdTabLink],
+  declarations: [MdTabGroup, MdTabLabel, MdTabContent, MdTab, MdInkBar, MdTabLabelWrapper,
+    MdTabNavBar, MdTabLink],
 })
 export class MdTabsModule {
   static forRoot(): ModuleWithProviders {