diff --git a/src/demo-app/tooltip/tooltip-demo.html b/src/demo-app/tooltip/tooltip-demo.html
index 79691037bea0..15025d7a1df3 100644
--- a/src/demo-app/tooltip/tooltip-demo.html
+++ b/src/demo-app/tooltip/tooltip-demo.html
@@ -1,7 +1,7 @@
 <div class="demo-tooltip">
   <h1>Tooltip Demo</h1>
 
-  <p class="centered">
+  <div class="centered" cdk-scrollable>
     <button #tooltip="mdTooltip"
             md-raised-button
             color="primary"
@@ -11,7 +11,9 @@ <h1>Tooltip Demo</h1>
             [mdTooltipHideDelay]="hideDelay">
       Mouse over to see the tooltip
     </button>
-  </p>
+    <div>Scroll down while tooltip is open to see it hide automatically</div>
+    <div style="height: 400px;"></div>
+  </div>
 
   <p>
     <md-radio-group [(ngModel)]="position">
diff --git a/src/demo-app/tooltip/tooltip-demo.scss b/src/demo-app/tooltip/tooltip-demo.scss
index d3ff6bac1a6c..c2483c856273 100644
--- a/src/demo-app/tooltip/tooltip-demo.scss
+++ b/src/demo-app/tooltip/tooltip-demo.scss
@@ -1,6 +1,12 @@
 .demo-tooltip {
   .centered {
     text-align: center;
+    height: 200px;
+    overflow: auto;
+
+    button {
+      margin: 16px;
+    }
   }
   .mat-radio-button {
     display: block;
diff --git a/src/lib/core/overlay/scroll/scroll-dispatcher.spec.ts b/src/lib/core/overlay/scroll/scroll-dispatcher.spec.ts
index f342d56cb10d..77342af30f20 100644
--- a/src/lib/core/overlay/scroll/scroll-dispatcher.spec.ts
+++ b/src/lib/core/overlay/scroll/scroll-dispatcher.spec.ts
@@ -1,5 +1,5 @@
-import {inject, TestBed, async, ComponentFixture} from '@angular/core/testing';
-import {NgModule, Component, ViewChild, ElementRef, QueryList, ViewChildren} from '@angular/core';
+import {inject, TestBed, async, fakeAsync, ComponentFixture, tick} from '@angular/core/testing';
+import {NgModule, Component, ViewChild, ElementRef} from '@angular/core';
 import {ScrollDispatcher} from './scroll-dispatcher';
 import {OverlayModule} from '../overlay-directives';
 import {Scrollable} from './scrollable';
@@ -38,15 +38,17 @@ describe('Scroll Dispatcher', () => {
       expect(scroll.scrollableReferences.has(componentScrollable)).toBe(false);
     });
 
-    it('should notify through the directive and service that a scroll event occurred', () => {
+    it('should notify through the directive and service that a scroll event occurred',
+        fakeAsync(() => {
       let hasDirectiveScrollNotified = false;
       // Listen for notifications from scroll directive
       let scrollable = fixture.componentInstance.scrollable;
       scrollable.elementScrolled().subscribe(() => { hasDirectiveScrollNotified = true; });
 
-      // Listen for notifications from scroll service
+      // Listen for notifications from scroll service with a throttle of 100ms
+      const throttleTime = 100;
       let hasServiceScrollNotified = false;
-      scroll.scrolled().subscribe(() => { hasServiceScrollNotified = true; });
+      scroll.scrolled(throttleTime).subscribe(() => { hasServiceScrollNotified = true; });
 
       // Emit a scroll event from the scrolling element in our component.
       // This event should be picked up by the scrollable directive and notify.
@@ -55,9 +57,17 @@ describe('Scroll Dispatcher', () => {
       scrollEvent.initUIEvent('scroll', true, true, window, 0);
       fixture.componentInstance.scrollingElement.nativeElement.dispatchEvent(scrollEvent);
 
+      // The scrollable directive should have notified the service immediately.
       expect(hasDirectiveScrollNotified).toBe(true);
+
+      // Verify that the throttle is used, the service should wait for the throttle time until
+      // sending the notification.
+      expect(hasServiceScrollNotified).toBe(false);
+
+      // After the throttle time, the notification should be sent.
+      tick(throttleTime);
       expect(hasServiceScrollNotified).toBe(true);
-    });
+    }));
   });
 
   describe('Nested scrollables', () => {
@@ -107,7 +117,6 @@ class ScrollingComponent {
 })
 class NestedScrollingComponent {
   @ViewChild('interestingElement') interestingElement: ElementRef;
-  @ViewChildren(Scrollable) scrollables: QueryList<Scrollable>;
 }
 
 const TEST_COMPONENTS = [ScrollingComponent, NestedScrollingComponent];
diff --git a/src/lib/core/overlay/scroll/scroll-dispatcher.ts b/src/lib/core/overlay/scroll/scroll-dispatcher.ts
index e4f8b3864713..15cefb2d2443 100644
--- a/src/lib/core/overlay/scroll/scroll-dispatcher.ts
+++ b/src/lib/core/overlay/scroll/scroll-dispatcher.ts
@@ -4,8 +4,12 @@ import {Subject} from 'rxjs/Subject';
 import {Observable} from 'rxjs/Observable';
 import {Subscription} from 'rxjs/Subscription';
 import 'rxjs/add/observable/fromEvent';
+import 'rxjs/add/operator/auditTime';
 
 
+/** Time in ms to throttle the scrolling events by default. */
+export const DEFAULT_SCROLL_TIME = 20;
+
 /**
  * Service contained all registered Scrollable references and emits an event when any one of the
  * Scrollable references emit a scrolled event.
@@ -50,11 +54,17 @@ export class ScrollDispatcher {
 
   /**
    * Returns an observable that emits an event whenever any of the registered Scrollable
-   * references (or window, document, or body) fire a scrolled event.
+   * references (or window, document, or body) fire a scrolled event. Can provide a time in ms
+   * to override the default "throttle" time.
    */
-  scrolled(): Observable<void> {
-    // TODO: Add an event limiter that includes throttle with the leading and trailing events.
-    return this._scrolled.asObservable();
+  scrolled(auditTimeInMs: number = DEFAULT_SCROLL_TIME): Observable<void> {
+    // In the case of a 0ms delay, return the observable without auditTime since it does add
+    // a perceptible delay in processing overhead.
+    if (auditTimeInMs == 0) {
+      return this._scrolled.asObservable();
+    }
+
+    return this._scrolled.asObservable().auditTime(auditTimeInMs);
   }
 
   /** Returns all registered Scrollables that contain the provided element. */
@@ -90,7 +100,7 @@ export class ScrollDispatcher {
 
 export function SCROLL_DISPATCHER_PROVIDER_FACTORY(parentDispatcher: ScrollDispatcher) {
   return parentDispatcher || new ScrollDispatcher();
-};
+}
 
 export const SCROLL_DISPATCHER_PROVIDER = {
   // If there is already a ScrollDispatcher available, use that. Otherwise, provide a new one.
diff --git a/src/lib/sidenav/sidenav-container.html b/src/lib/sidenav/sidenav-container.html
index 75eb4b037ab8..24f0789dcde2 100644
--- a/src/lib/sidenav/sidenav-container.html
+++ b/src/lib/sidenav/sidenav-container.html
@@ -3,6 +3,6 @@
 
 <ng-content select="md-sidenav, mat-sidenav"></ng-content>
 
-<div class="mat-sidenav-content" [ngStyle]="_getStyles()">
+<div class="mat-sidenav-content" [ngStyle]="_getStyles()" cdk-scrollable>
   <ng-content></ng-content>
 </div>
diff --git a/src/lib/tooltip/tooltip.spec.ts b/src/lib/tooltip/tooltip.spec.ts
index 7305715ca920..5873f340f0e6 100644
--- a/src/lib/tooltip/tooltip.spec.ts
+++ b/src/lib/tooltip/tooltip.spec.ts
@@ -10,13 +10,15 @@ import {
   Component,
   DebugElement,
   AnimationTransitionEvent,
+  ViewChild,
   ChangeDetectionStrategy
 } from '@angular/core';
 import {By} from '@angular/platform-browser';
-import {TooltipPosition, MdTooltip, MdTooltipModule} from './tooltip';
+import {TooltipPosition, MdTooltip, MdTooltipModule, SCROLL_THROTTLE_MS} from './tooltip';
 import {OverlayContainer} from '../core';
 import {Dir, LayoutDirection} from '../core/rtl/dir';
 import {OverlayModule} from '../core/overlay/overlay-directives';
+import {Scrollable} from '../core/overlay/scroll/scrollable';
 
 const initialTooltipMessage = 'initial tooltip message';
 
@@ -27,10 +29,11 @@ describe('MdTooltip', () => {
   beforeEach(async(() => {
     TestBed.configureTestingModule({
       imports: [MdTooltipModule.forRoot(), OverlayModule],
-      declarations: [BasicTooltipDemo, OnPushTooltipDemo],
+      declarations: [BasicTooltipDemo, ScrollableTooltipDemo, OnPushTooltipDemo],
       providers: [
         {provide: OverlayContainer, useFactory: () => {
           overlayContainerElement = document.createElement('div');
+          document.body.appendChild(overlayContainerElement);
           return {getContainerElement: () => overlayContainerElement};
         }},
         {provide: Dir, useFactory: () => {
@@ -312,6 +315,43 @@ describe('MdTooltip', () => {
     });
   });
 
+  describe('scrollable usage', () => {
+    let fixture: ComponentFixture<ScrollableTooltipDemo>;
+    let buttonDebugElement: DebugElement;
+    let buttonElement: HTMLButtonElement;
+    let tooltipDirective: MdTooltip;
+
+    beforeEach(() => {
+      fixture = TestBed.createComponent(ScrollableTooltipDemo);
+      fixture.detectChanges();
+      buttonDebugElement = fixture.debugElement.query(By.css('button'));
+      buttonElement = <HTMLButtonElement> buttonDebugElement.nativeElement;
+      tooltipDirective = buttonDebugElement.injector.get(MdTooltip);
+    });
+
+    it('should hide tooltip if clipped after changing positions', fakeAsync(() => {
+      expect(tooltipDirective._tooltipInstance).toBeUndefined();
+
+      // Show the tooltip and tick for the show delay (default is 0)
+      tooltipDirective.show();
+      fixture.detectChanges();
+      tick(0);
+
+      // Expect that the tooltip is displayed
+      expect(tooltipDirective._isTooltipVisible()).toBe(true);
+
+      // Scroll the page but tick just before the default throttle should update.
+      fixture.componentInstance.scrollDown();
+      tick(SCROLL_THROTTLE_MS - 1);
+      expect(tooltipDirective._isTooltipVisible()).toBe(true);
+
+      // Finish ticking to the throttle's limit and check that the scroll event notified the
+      // tooltip and it was hidden.
+      tick(1);
+      expect(tooltipDirective._isTooltipVisible()).toBe(false);
+    }));
+  });
+
   describe('with OnPush', () => {
     let fixture: ComponentFixture<OnPushTooltipDemo>;
     let buttonDebugElement: DebugElement;
@@ -374,6 +414,39 @@ class BasicTooltipDemo {
   message: string = initialTooltipMessage;
   showButton: boolean = true;
 }
+
+@Component({
+     selector: 'app',
+     template: `
+    <div cdk-scrollable style="padding: 100px; margin: 300px;
+                               height: 200px; width: 200px; overflow: auto;">
+      <button *ngIf="showButton" style="margin-bottom: 600px"
+              [md-tooltip]="message"		
+              [tooltip-position]="position">		
+        Button		
+      </button>		
+    </div>`
+})
+class ScrollableTooltipDemo {
+ position: string = 'below';
+ message: string = initialTooltipMessage;
+ showButton: boolean = true;
+
+ @ViewChild(Scrollable) scrollingContainer: Scrollable;
+
+ scrollDown() {
+     const scrollingContainerEl = this.scrollingContainer.getElementRef().nativeElement;
+     scrollingContainerEl.scrollTop = 250;
+
+     // Emit a scroll event from the scrolling element in our component.
+     // This event should be picked up by the scrollable directive and notify.
+     // The notification should be picked up by the service.
+     const scrollEvent = document.createEvent('UIEvents');
+     scrollEvent.initUIEvent('scroll', true, true, window, 0);
+     scrollingContainerEl.dispatchEvent(scrollEvent);
+   }
+}
+
 @Component({
   selector: 'app',
   template: `
@@ -387,4 +460,3 @@ class OnPushTooltipDemo {
   position: string = 'below';
   message: string = initialTooltipMessage;
 }
-
diff --git a/src/lib/tooltip/tooltip.ts b/src/lib/tooltip/tooltip.ts
index 94dc7780062a..7b27abaa3968 100644
--- a/src/lib/tooltip/tooltip.ts
+++ b/src/lib/tooltip/tooltip.ts
@@ -15,6 +15,7 @@ import {
   NgZone,
   Optional,
   OnDestroy,
+  OnInit,
   ChangeDetectorRef
 } from '@angular/core';
 import {
@@ -25,19 +26,24 @@ import {
   ComponentPortal,
   OverlayConnectionPosition,
   OriginConnectionPosition,
-  CompatibilityModule,
+  CompatibilityModule
 } from '../core';
 import {MdTooltipInvalidPositionError} from './tooltip-errors';
 import {Observable} from 'rxjs/Observable';
 import {Subject} from 'rxjs/Subject';
 import {Dir} from '../core/rtl/dir';
 import 'rxjs/add/operator/first';
+import {ScrollDispatcher} from '../core/overlay/scroll/scroll-dispatcher';
+import {Subscription} from 'rxjs/Subscription';
 
 export type TooltipPosition = 'left' | 'right' | 'above' | 'below' | 'before' | 'after';
 
 /** Time in ms to delay before changing the tooltip visibility to hidden */
 export const TOUCHEND_HIDE_DELAY  = 1500;
 
+/** Time in ms to throttle repositioning after scroll events. */
+export const SCROLL_THROTTLE_MS = 20;
+
 /**
  * Directive that attaches a material design tooltip to the host element. Animates the showing and
  * hiding of a tooltip provided position (defaults to below the element).
@@ -54,9 +60,10 @@ export const TOUCHEND_HIDE_DELAY  = 1500;
   },
   exportAs: 'mdTooltip',
 })
-export class MdTooltip implements OnDestroy {
+export class MdTooltip implements OnInit, OnDestroy {
   _overlayRef: OverlayRef;
   _tooltipInstance: TooltipComponent;
+  scrollSubscription: Subscription;
 
   private _position: TooltipPosition = 'below';
 
@@ -123,11 +130,22 @@ export class MdTooltip implements OnDestroy {
   set _matShowDelay(v) { this.showDelay = v; }
 
   constructor(private _overlay: Overlay,
+              private _scrollDispatcher: ScrollDispatcher,
               private _elementRef: ElementRef,
               private _viewContainerRef: ViewContainerRef,
               private _ngZone: NgZone,
               @Optional() private _dir: Dir) { }
 
+  ngOnInit() {
+    // When a scroll on the page occurs, update the position in case this tooltip needs
+    // to be repositioned.
+    this.scrollSubscription = this._scrollDispatcher.scrolled(SCROLL_THROTTLE_MS).subscribe(() => {
+      if (this._overlayRef) {
+        this._overlayRef.updatePosition();
+      }
+    });
+  }
+
   /**
    * Dispose the tooltip when destroyed.
    */
@@ -135,6 +153,8 @@ export class MdTooltip implements OnDestroy {
     if (this._tooltipInstance) {
       this._disposeTooltip();
     }
+
+    this.scrollSubscription.unsubscribe();
   }
 
   /** Shows the tooltip after the delay in ms, defaults to tooltip-delay-show or 0ms if no input */
@@ -185,7 +205,18 @@ export class MdTooltip implements OnDestroy {
   private _createOverlay(): void {
     let origin = this._getOrigin();
     let position = this._getOverlayPosition();
+
+    // Create connected position strategy that listens for scroll events to reposition.
+    // After position changes occur and the overlay is clipped by a parent scrollable then
+    // close the tooltip.
     let strategy = this._overlay.position().connectedTo(this._elementRef, origin, position);
+    strategy.withScrollableContainers(this._scrollDispatcher.getScrollContainers(this._elementRef));
+    strategy.onPositionChange.subscribe(change => {
+      if (change.scrollableViewProperties.isOverlayClipped &&
+          this._tooltipInstance && this._tooltipInstance.isVisible()) {
+        this.hide(0);
+      }
+    });
     let config = new OverlayState();
     config.positionStrategy = strategy;
 
@@ -331,7 +362,7 @@ export class TooltipComponent {
       // trigger interaction and close the tooltip right after it was displayed.
       this._closeOnInteraction = false;
 
-      // Mark for check so if any parent component has set the 
+      // Mark for check so if any parent component has set the
       // ChangeDetectionStrategy to OnPush it will be checked anyways
       this._changeDetectorRef.markForCheck();
       setTimeout(() => { this._closeOnInteraction = true; }, 0);
@@ -352,7 +383,7 @@ export class TooltipComponent {
       this._visibility = 'hidden';
       this._closeOnInteraction = false;
 
-      // Mark for check so if any parent component has set the 
+      // Mark for check so if any parent component has set the
       // ChangeDetectionStrategy to OnPush it will be checked anyways
       this._changeDetectorRef.markForCheck();
     }, delay);
diff --git a/tools/gulp/tasks/components.ts b/tools/gulp/tasks/components.ts
index bf00567ebef9..f2cc6030ef45 100644
--- a/tools/gulp/tasks/components.ts
+++ b/tools/gulp/tasks/components.ts
@@ -77,6 +77,7 @@ task(':build:components:rollup', () => {
     'rxjs/add/observable/of': 'Rx.Observable',
     'rxjs/add/observable/merge': 'Rx.Observable',
     'rxjs/add/observable/throw': 'Rx.Observable',
+    'rxjs/add/operator/auditTime': 'Rx.Observable.prototype',
     'rxjs/add/operator/toPromise': 'Rx.Observable.prototype',
     'rxjs/add/operator/map': 'Rx.Observable.prototype',
     'rxjs/add/operator/filter': 'Rx.Observable.prototype',