diff --git a/src/components/autocomplete/demoInsideDialog/dialog.tmpl.html b/src/components/autocomplete/demoInsideDialog/dialog.tmpl.html
new file mode 100644
index 00000000000..ea0012411d1
--- /dev/null
+++ b/src/components/autocomplete/demoInsideDialog/dialog.tmpl.html
@@ -0,0 +1,37 @@
+<md-dialog aria-label="Autocomplete Dialog Example" ng-cloak>
+  <md-toolbar>
+    <div class="md-toolbar-tools">
+      <h2>Autocomplete Dialog Example</h2>
+      <span flex></span>
+      <md-button class="md-icon-button" ng-click="ctrl.cancel()">
+        <md-icon md-svg-src="img/icons/ic_close_24px.svg" aria-label="Close dialog"></md-icon>
+      </md-button>
+    </div>
+  </md-toolbar>
+
+  <md-dialog-content>
+    <div class="md-dialog-content">
+      <form ng-submit="$event.preventDefault()">
+        <p>Use <code>md-autocomplete</code> to search for matches from local or remote data sources.</p>
+        <md-autocomplete
+            md-selected-item="ctrl.selectedItem"
+            md-search-text="ctrl.searchText"
+            md-items="item in ctrl.querySearch(ctrl.searchText)"
+            md-item-text="item.display"
+            md-min-length="0"
+            placeholder="What is your favorite US state?">
+          <md-item-template>
+            <span md-highlight-text="ctrl.searchText" md-highlight-flags="^i">{{item.display}}</span>
+          </md-item-template>
+          <md-not-found>
+            No states matching "{{ctrl.searchText}}" were found.
+          </md-not-found>
+        </md-autocomplete>
+      </form>
+    </div>
+  </md-dialog-content>
+
+  <div class="md-actions">
+    <md-button aria-label="Finished" ng-click="ctrl.finish($event)">Finished</md-button>
+  </div>
+</md-dialog>
\ No newline at end of file
diff --git a/src/components/autocomplete/demoInsideDialog/index.html b/src/components/autocomplete/demoInsideDialog/index.html
new file mode 100644
index 00000000000..6e292869183
--- /dev/null
+++ b/src/components/autocomplete/demoInsideDialog/index.html
@@ -0,0 +1,9 @@
+<div ng-controller="DemoCtrl as ctrl" layout="column" ng-cloak>
+  <md-content class="md-padding">
+    <p>
+      Click the button below to open the dialog with an autocomplete.
+    </p>
+
+    <md-button ng-click="ctrl.openDialog($event)" class="md-raised">Open Dialog</md-button>
+  </md-content>
+</div>
diff --git a/src/components/autocomplete/demoInsideDialog/script.js b/src/components/autocomplete/demoInsideDialog/script.js
new file mode 100644
index 00000000000..d794b650a2a
--- /dev/null
+++ b/src/components/autocomplete/demoInsideDialog/script.js
@@ -0,0 +1,84 @@
+(function () {
+  'use strict';
+  angular
+      .module('autocompleteDemoInsideDialog', ['ngMaterial'])
+      .controller('DemoCtrl', DemoCtrl);
+
+  function DemoCtrl($mdDialog) {
+    var self = this;
+
+    self.openDialog = function($event) {
+      $mdDialog.show({
+        controller: DialogCtrl,
+        controllerAs: 'ctrl',
+        templateUrl: 'dialog.tmpl.html',
+        parent: angular.element(document.body),
+        targetEvent: $event,
+        clickOutsideToClose:true
+      })
+    }
+  }
+
+  function DialogCtrl ($timeout, $q, $scope, $mdDialog) {
+    var self = this;
+
+    // list of `state` value/display objects
+    self.states        = loadAll();
+    self.querySearch   = querySearch;
+
+    // ******************************
+    // Template methods
+    // ******************************
+
+    self.cancel = function($event) {
+      $mdDialog.cancel();
+    };
+    self.finish = function($event) {
+      $mdDialog.hide();
+    };
+
+    // ******************************
+    // Internal methods
+    // ******************************
+
+    /**
+     * Search for states... use $timeout to simulate
+     * remote dataservice call.
+     */
+    function querySearch (query) {
+      return query ? self.states.filter( createFilterFor(query) ) : self.states;
+    }
+
+    /**
+     * Build `states` list of key/value pairs
+     */
+    function loadAll() {
+      var allStates = 'Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware,\
+              Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana,\
+              Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana,\
+              Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina,\
+              North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina,\
+              South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia,\
+              Wisconsin, Wyoming';
+
+      return allStates.split(/, +/g).map( function (state) {
+        return {
+          value: state.toLowerCase(),
+          display: state
+        };
+      });
+    }
+
+    /**
+     * Create filter function for a query string
+     */
+    function createFilterFor(query) {
+      var lowercaseQuery = angular.lowercase(query);
+
+      return function filterFn(state) {
+        return (state.value.indexOf(lowercaseQuery) === 0);
+      };
+
+    }
+  }
+})();
diff --git a/src/components/autocomplete/js/autocompleteController.js b/src/components/autocomplete/js/autocompleteController.js
index 6a1e3a6baef..d6ee34a7871 100644
--- a/src/components/autocomplete/js/autocompleteController.js
+++ b/src/components/autocomplete/js/autocompleteController.js
@@ -412,9 +412,9 @@ function MdAutocompleteCtrl ($scope, $element, $mdUtil, $mdConstant, $mdTheming,
         select(ctrl.index);
         break;
       case $mdConstant.KEY_CODE.ENTER:
+        if (ctrl.hidden || ctrl.loading || ctrl.index < 0 || ctrl.matches.length < 1) return;
         event.stopPropagation();
         event.preventDefault();
-        if (ctrl.hidden || ctrl.loading || ctrl.index < 0 || ctrl.matches.length < 1) return;
         select(ctrl.index);
         break;
       case $mdConstant.KEY_CODE.ESCAPE:
diff --git a/src/components/chips/chips.spec.js b/src/components/chips/chips.spec.js
index 3a1761baf06..455c439f6c4 100644
--- a/src/components/chips/chips.spec.js
+++ b/src/components/chips/chips.spec.js
@@ -4,8 +4,12 @@ describe('<md-chips>', function() {
 
   var BASIC_CHIP_TEMPLATE =
     '<md-chips ng-model="items"></md-chips>';
+  var CHIP_TRANSFORM_TEMPLATE =
+    '<md-chips ng-model="items" md-transform-chip="transformChip($chip)"></md-chips>';
   var CHIP_APPEND_TEMPLATE =
     '<md-chips ng-model="items" md-on-append="appendChip($chip)"></md-chips>';
+  var CHIP_ADD_TEMPLATE =
+    '<md-chips ng-model="items" md-on-add="addChip($chip, $index)"></md-chips>';
   var CHIP_REMOVE_TEMPLATE =
     '<md-chips ng-model="items" md-on-remove="removeChip($chip, $index)"></md-chips>';
   var CHIP_SELECT_TEMPLATE =
@@ -109,7 +113,15 @@ describe('<md-chips>', function() {
         expect(chips[1].innerHTML).toContain('Orange');
       });
 
-      it('should call the append method when adding a chip', function() {
+      // TODO: Remove in 1.0 release after deprecation
+      it('should warn of deprecation when using md-on-append', inject(function($log) {
+        spyOn($log, 'warn');
+        buildChips(CHIP_APPEND_TEMPLATE);
+        expect($log.warn).toHaveBeenCalled();
+      }));
+
+      // TODO: Remove in 1.0 release after deprecation
+      it('should retain the deprecated md-on-append functionality until removed', function() {
         var element = buildChips(CHIP_APPEND_TEMPLATE);
         var ctrl = element.controller('mdChips');
 
@@ -129,6 +141,62 @@ describe('<md-chips>', function() {
         expect(scope.items[3]).toBe('GrapeGrape');
       });
 
+      it('should call the transform method when adding a chip', function() {
+        var element = buildChips(CHIP_TRANSFORM_TEMPLATE);
+        var ctrl = element.controller('mdChips');
+
+        var doubleText = function(text) {
+          return "" + text + text;
+        };
+        scope.transformChip = jasmine.createSpy('transformChip').and.callFake(doubleText);
+
+        element.scope().$apply(function() {
+          ctrl.chipBuffer = 'Grape';
+          simulateInputEnterKey(ctrl);
+        });
+
+        expect(scope.transformChip).toHaveBeenCalled();
+        expect(scope.transformChip.calls.mostRecent().args[0]).toBe('Grape');
+        expect(scope.items.length).toBe(4);
+        expect(scope.items[3]).toBe('GrapeGrape');
+      });
+
+      it('should not add the chip if md-transform-chip returns null', function() {
+        var element = buildChips(CHIP_TRANSFORM_TEMPLATE);
+        var ctrl = element.controller('mdChips');
+
+        var nullChip = function(text) {
+          return null;
+        };
+        scope.transformChip = jasmine.createSpy('transformChip').and.callFake(nullChip);
+
+        element.scope().$apply(function() {
+          ctrl.chipBuffer = 'Grape';
+          simulateInputEnterKey(ctrl);
+        });
+
+        expect(scope.transformChip).toHaveBeenCalled();
+        expect(scope.transformChip.calls.mostRecent().args[0]).toBe('Grape');
+        expect(scope.items.length).toBe(3);
+      });
+
+      it('should call the add method when adding a chip', function() {
+        var element = buildChips(CHIP_ADD_TEMPLATE);
+        var ctrl = element.controller('mdChips');
+
+        scope.addChip = jasmine.createSpy('addChip');
+
+        element.scope().$apply(function() {
+          ctrl.chipBuffer = 'Grape';
+          simulateInputEnterKey(ctrl);
+        });
+
+        expect(scope.addChip).toHaveBeenCalled();
+        expect(scope.addChip.calls.mostRecent().args[0]).toBe('Grape'); // Chip
+        expect(scope.addChip.calls.mostRecent().args[1]).toBe(4);       // Index
+      });
+
+
       it('should call the remove method when removing a chip', function() {
         var element = buildChips(CHIP_REMOVE_TEMPLATE);
         var ctrl = element.controller('mdChips');
@@ -328,6 +396,80 @@ describe('<md-chips>', function() {
           expect(scope.items[3]).toBe('Kiwi');
           expect(element.find('input').val()).toBe('');
         }));
+
+        it('simultaneously allows selecting an existing chip AND adding a new one', inject(function($mdConstant) {
+          // Setup our scope and function
+          setupScopeForAutocomplete();
+          scope.transformChip = jasmine.createSpy('transformChip');
+
+          // Modify the base template to add md-transform-chip
+          var modifiedTemplate = AUTOCOMPLETE_CHIPS_TEMPLATE
+            .replace('<md-chips', '<md-chips md-on-append="transformChip($chip)"');
+
+          var element = buildChips(modifiedTemplate);
+
+          var ctrl = element.controller('mdChips');
+          $timeout.flush(); // mdAutcomplete needs a flush for its init.
+          var autocompleteCtrl = element.find('md-autocomplete').controller('mdAutocomplete');
+
+          element.scope().$apply(function() {
+            autocompleteCtrl.scope.searchText = 'K';
+          });
+          autocompleteCtrl.focus();
+          $timeout.flush();
+
+          /*
+           * Send a down arrow/enter to select the right fruit
+           */
+          var downArrowEvent = {
+            type: 'keydown',
+            keyCode: $mdConstant.KEY_CODE.DOWN_ARROW,
+            which: $mdConstant.KEY_CODE.DOWN_ARROW
+          };
+          var enterEvent = {
+            type: 'keydown',
+            keyCode: $mdConstant.KEY_CODE.ENTER,
+            which: $mdConstant.KEY_CODE.ENTER
+          };
+          element.find('input').triggerHandler(downArrowEvent);
+          element.find('input').triggerHandler(enterEvent);
+          $timeout.flush();
+
+          // Check our transformChip calls
+          expect(scope.transformChip).not.toHaveBeenCalledWith('K');
+          expect(scope.transformChip).toHaveBeenCalledWith('Kiwi');
+          expect(scope.transformChip.calls.count()).toBe(1);
+
+          // Check our output
+          expect(scope.items.length).toBe(4);
+          expect(scope.items[3]).toBe('Kiwi');
+          expect(element.find('input').val()).toBe('');
+
+          // Reset our jasmine spy
+          scope.transformChip.calls.reset();
+
+          /*
+           * Use the "new chip" functionality
+           */
+
+          // Set the search text
+          element.scope().$apply(function() {
+            autocompleteCtrl.scope.searchText = 'Acai Berry';
+          });
+
+          // Fire our event and flush any timeouts
+          element.find('input').triggerHandler(enterEvent);
+          $timeout.flush();
+
+          // Check our transformChip calls
+          expect(scope.transformChip).toHaveBeenCalledWith('Acai Berry');
+          expect(scope.transformChip.calls.count()).toBe(1);
+
+          // Check our output
+          expect(scope.items.length).toBe(5);
+          expect(scope.items[4]).toBe('Acai Berry');
+          expect(element.find('input').val()).toBe('');
+        }));
       });
 
       describe('user input templates', function() {
diff --git a/src/components/chips/demoBasicUsage/index.html b/src/components/chips/demoBasicUsage/index.html
index 523943f3b91..34f542adb6d 100644
--- a/src/components/chips/demoBasicUsage/index.html
+++ b/src/components/chips/demoBasicUsage/index.html
@@ -31,7 +31,7 @@ <h2 class="md-title">Display an ordered set of objects as chips (with custom tem
     <p>Note: the variables <code>$chip</code> and <code>$index</code> are available in custom chip templates.</p>
 
     <md-chips class="custom-chips" ng-model="ctrl.vegObjs" readonly="ctrl.readonly"
-        md-on-append="ctrl.newVeg($chip)">
+        md-transform-chip="ctrl.newVeg($chip)">
       <md-chip-template>
         <span>
           <strong>[{{$index}}] {{$chip.name}}</strong>
diff --git a/src/components/chips/demoContactChips/style.scss b/src/components/chips/demoContactChips/style.scss
index 17e40fc44fd..f221e2c0fd2 100644
--- a/src/components/chips/demoContactChips/style.scss
+++ b/src/components/chips/demoContactChips/style.scss
@@ -1,5 +1,11 @@
 md-content.autocomplete {
   min-height: 250px;
+
+  // NOTE: Due to a bug with the virtual repeat sizing, we must manually set the width of
+  // the input so that the autocomplete popup will be properly sized. See issue #4450.
+  input {
+    min-width: 400px;
+  }
 }
 .md-item-text.compact {
   padding-top: 8px;
@@ -15,6 +21,7 @@ md-content.autocomplete {
   }
   .md-list-item-text {
     padding: 14px 0;
+    max-width: 190px;
     h3 {
       margin: 0 !important;
       padding: 0;
diff --git a/src/components/chips/demoCustomInputs/index.html b/src/components/chips/demoCustomInputs/index.html
index df6ed4b3642..488108dd65b 100644
--- a/src/components/chips/demoCustomInputs/index.html
+++ b/src/components/chips/demoCustomInputs/index.html
@@ -15,7 +15,9 @@ <h2 class="md-title">Use an <code>input</code>  element to build an ordered set
     <br/>
     <h2 class="md-title">Use <code>md-autocomplete</code>  to build an ordered set of chips.</h2>
 
-    <md-chips ng-model="ctrl.selectedVegetables" md-autocomplete-snap md-require-match="true">
+    <md-chips ng-model="ctrl.selectedVegetables" md-autocomplete-snap
+              md-transform-chip="ctrl.transformChip($chip)"
+              md-require-match="ctrl.autocompleteDemoRequireMatch">
       <md-autocomplete
           md-selected-item="ctrl.selectedItem"
           md-search-text="ctrl.searchText"
@@ -32,6 +34,10 @@ <h2 class="md-title">Use <code>md-autocomplete</code>  to build an ordered set o
       </md-chip-template>
     </md-chips>
 
+    <md-checkbox ng-model="ctrl.autocompleteDemoRequireMatch">
+      Tell the autocomplete to require a match (when enabled you cannot create new chips)
+    </md-checkbox>
+
     <br />
     <h2 class="md-title">Vegetable Options</h2>
 
diff --git a/src/components/chips/demoCustomInputs/script.js b/src/components/chips/demoCustomInputs/script.js
index dcd4f265876..53f0fa48a1e 100644
--- a/src/components/chips/demoCustomInputs/script.js
+++ b/src/components/chips/demoCustomInputs/script.js
@@ -16,6 +16,21 @@
     self.numberChips = [];
     self.numberChips2 = [];
     self.numberBuffer = '';
+    self.autocompleteDemoRequireMatch = true;
+    self.transformChip = transformChip;
+
+    /**
+     * Return the proper object when the append is called.
+     */
+    function transformChip(chip) {
+      // If it is an object, it's already a known chip
+      if (angular.isObject(chip)) {
+        return chip;
+      }
+
+      // Otherwise, create a new one
+      return { name: chip, type: 'new' }
+    }
 
     /**
      * Search for vegetables.
diff --git a/src/components/chips/js/chipsController.js b/src/components/chips/js/chipsController.js
index 8da8b75eb21..f0d73e40c30 100644
--- a/src/components/chips/js/chipsController.js
+++ b/src/components/chips/js/chipsController.js
@@ -73,9 +73,31 @@ function MdChipsCtrl ($scope, $mdConstant, $log, $element, $timeout) {
    * Whether to use the onAppend expression to transform the chip buffer
    * before appending it to the list.
    * @type {boolean}
+   *
+   *
+   * @deprecated Will remove in 1.0.
    */
   this.useOnAppend = false;
 
+  /**
+   * Whether to use the transformChip expression to transform the chip buffer
+   * before appending it to the list.
+   * @type {boolean}
+   */
+  this.useTransformChip = false;
+
+  /**
+   * Whether to use the onAdd expression to notify of chip additions.
+   * @type {boolean}
+   */
+  this.useOnAdd = false;
+
+  /**
+   * Whether to use the onRemove expression to notify of chip removals.
+   * @type {boolean}
+   */
+  this.useOnRemove = false;
+
   /**
    * Whether to use the onSelect expression to notify the component's user
    * after selecting a chip from the list.
@@ -93,6 +115,11 @@ function MdChipsCtrl ($scope, $mdConstant, $log, $element, $timeout) {
 MdChipsCtrl.prototype.inputKeydown = function(event) {
   var chipBuffer = this.getChipBuffer();
 
+  // If we have an autocomplete, and it handled the event, we have nothing to do
+  if (this.hasAutocomplete && event.isDefaultPrevented && event.isDefaultPrevented()) {
+    return;
+  }
+
   switch (event.keyCode) {
     case this.$mdConstant.KEY_CODE.ENTER:
       if ((this.hasAutocomplete && this.requireMatch) || !chipBuffer) break;
@@ -189,30 +216,40 @@ MdChipsCtrl.prototype.getAdjacentChipIndex = function(index) {
 
 /**
  * Append the contents of the buffer to the chip list. This method will first
- * call out to the md-on-append method, if provided
+ * call out to the md-transform-chip method, if provided.
+ *
  * @param newChip
  */
- MdChipsCtrl.prototype.appendChip = function(newChip) {
+MdChipsCtrl.prototype.appendChip = function(newChip) {
+  if (this.useTransformChip && this.transformChip) {
+    var transformedChip = this.transformChip({'$chip': newChip});
+
+    // Check to make sure the chip is defined before assigning it, otherwise, we'll just assume
+    // they want the string version.
+    if (angular.isDefined(transformedChip)) {
+      newChip = transformedChip;
+    }
+  }
 
-   // If useOnAppend and onAppend function is provided call it.
-   if (this.useOnAppend && this.onAppend) {
-     newChip = this.onAppend({'$chip': newChip});
-   }
+  // If items contains an identical object to newChip, do not append
+  if (angular.isObject(newChip)){
+    var identical = this.items.some(function(item){
+      return angular.equals(newChip, item);
+    });
+    if(identical) return;
+  }
 
-   // If items contains identical object to newChip do not append
-   if(angular.isObject(newChip)){
-     var identical = this.items.some(function(item){
-       return angular.equals(newChip, item);
-     });
-     if(identical) return;
-   }
+  // Check for a null (but not undefined), or existing chip and cancel appending
+  if (newChip == null || this.items.indexOf(newChip) + 1) return;
 
-   // If items contains newChip do not append
-   if (this.items.indexOf(newChip) + 1) return;
+  // Append the new chip onto our list
+  var index = this.items.push(newChip);
 
-   //add newChip to items
-   this.items.push(newChip);
- };
+  // If they provide the md-on-add attribute, notify them of the chip addition
+  if (this.useOnAdd && this.onAdd) {
+    this.onAdd({ '$chip': newChip, '$index': index });
+  }
+};
 
 /**
  * Sets whether to use the md-on-append expression. This expression is
@@ -220,9 +257,39 @@ MdChipsCtrl.prototype.getAdjacentChipIndex = function(index) {
  * {@code onAppend}. Due to the nature of directive scope bindings, the
  * controller cannot know on its own/from the scope whether an expression was
  * actually provided.
+ *
+ * @deprecated
+ *
+ * TODO: Remove deprecated md-on-append functionality in 1.0
  */
 MdChipsCtrl.prototype.useOnAppendExpression = function() {
-  this.useOnAppend = true;
+  this.$log.warn("md-on-append is deprecated; please use md-transform-chip or md-on-add instead");
+  if (!this.useTransformChip || !this.transformChip) {
+    this.useTransformChip = true;
+    this.transformChip = this.onAppend;
+  }
+};
+
+/**
+ * Sets whether to use the md-transform-chip expression. This expression is
+ * bound to scope and controller in {@code MdChipsDirective} as
+ * {@code transformChip}. Due to the nature of directive scope bindings, the
+ * controller cannot know on its own/from the scope whether an expression was
+ * actually provided.
+ */
+MdChipsCtrl.prototype.useTransformChipExpression = function() {
+  this.useTransformChip = true;
+};
+
+/**
+ * Sets whether to use the md-on-add expression. This expression is
+ * bound to scope and controller in {@code MdChipsDirective} as
+ * {@code onAdd}. Due to the nature of directive scope bindings, the
+ * controller cannot know on its own/from the scope whether an expression was
+ * actually provided.
+ */
+MdChipsCtrl.prototype.useOnAddExpression = function() {
+  this.useOnAdd = true;
 };
 
 /**
diff --git a/src/components/chips/js/chipsDirective.js b/src/components/chips/js/chipsDirective.js
index 1c5f7f7ee11..9549a764e4e 100644
--- a/src/components/chips/js/chipsDirective.js
+++ b/src/components/chips/js/chipsDirective.js
@@ -67,11 +67,18 @@
    *    displayed when there is at least on item in the list
    * @param {boolean=} readonly Disables list manipulation (deleting or adding list items), hiding
    *    the input and delete buttons
-   * @param {expression} md-on-append An expression that when called expects you to return an object
-   *    representation of the chip input string.
+   * @param {expression} md-transform-chip An expression of form `myFunction($chip)` that when called
+   *    expects one of the following return values:
+   *    - an object representing the `$chip` input string
+   *    - `undefined` to simply add the `$chip` input string, or
+   *    - `null` to prevent the chip from being appended
+   * @param {expression=} md-on-add An expression which will be called when a chip has been
+   *    added.
    * @param {expression=} md-on-remove An expression which will be called when a chip has been
    *    removed.
    * @param {expression=} md-on-select An expression which will be called when a chip is selected.
+   * @param {boolean} md-require-match If true, and the chips template contains an autocomplete,
+   *    only allow selection of pre-defined chips (i.e. you cannot add new ones).
    * @param {string=} delete-hint A string read by screen readers instructing users that pressing
    *    the delete key will remove the chip.
    * @param {string=} delete-button-label A label for the delete button. Also hidden and read by
@@ -167,7 +174,9 @@
         readonly: '=readonly',
         placeholder: '@',
         secondaryPlaceholder: '@',
+        transformChip: '&mdTransformChip',
         onAppend: '&mdOnAppend',
+        onAdd: '&mdOnAdd',
         onRemove: '&mdOnRemove',
         onSelect: '&mdOnSelect',
         deleteHint: '@',
@@ -248,10 +257,20 @@
         if (attr.ngModel) {
           mdChipsCtrl.configureNgModel(element.controller('ngModel'));
 
+          // If an `md-transform-chip` attribute was set, tell the controller to use the expression
+          // before appending chips.
+          if (attrs.mdTransformChip) mdChipsCtrl.useTransformChipExpression();
+
           // If an `md-on-append` attribute was set, tell the controller to use the expression
           // when appending chips.
+          //
+          // DEPRECATED: Will remove in official 1.0 release
           if (attrs.mdOnAppend) mdChipsCtrl.useOnAppendExpression();
 
+          // If an `md-on-add` attribute was set, tell the controller to use the expression
+          // when adding chips.
+          if (attrs.mdOnAdd) mdChipsCtrl.useOnAddExpression();
+
           // If an `md-on-remove` attribute was set, tell the controller to use the expression
           // when removing chips.
           if (attrs.mdOnRemove) mdChipsCtrl.useOnRemoveExpression();