diff --git a/src/components/button/button.js b/src/components/button/button.js
index d196e367fcd..5fe2bbc7fc4 100644
--- a/src/components/button/button.js
+++ b/src/components/button/button.js
@@ -25,6 +25,7 @@ angular
  * the `md-primary` class.
  *
  * @param {boolean=} md-no-ink If present, disable ripple ink effects.
+ * @param {boolean=} md-no-focus-style If present, disable focus style on button
  * @param {expression=} ng-disabled En/Disable based on the expression
  * @param {string=} md-ripple-size Overrides the default ripple size logic. Options: `full`, `partial`, `auto`
  * @param {string=} aria-label Adds alternative text to button for accessibility, useful for icon buttons.
@@ -108,9 +109,10 @@ function MdButtonDirective($mdButtonInkRipple, $mdTheming, $mdAria, $timeout) {
       }
     });
 
-    // restrict focus styles to the keyboard
-    scope.mouseActive = false;
-    element.on('mousedown', function() {
+    if (!angular.isDefined(attr.mdNoFocusStyle)) {
+      // restrict focus styles to the keyboard
+      scope.mouseActive = false;
+      element.on('mousedown', function() {
         scope.mouseActive = true;
         $timeout(function(){
           scope.mouseActive = false;
@@ -124,6 +126,7 @@ function MdButtonDirective($mdButtonInkRipple, $mdTheming, $mdAria, $timeout) {
       .on('blur', function(ev) {
         element.removeClass('md-focused');
       });
+    }
   }
 
 }
diff --git a/src/components/list/list.js b/src/components/list/list.js
index 3b9c6efc825..3ff398421b9 100644
--- a/src/components/list/list.js
+++ b/src/components/list/list.js
@@ -136,9 +136,19 @@ function mdListItemDirective($mdAria, $mdConstant, $mdUtil, $timeout) {
           container.append(tEl.contents());
           tEl.addClass('md-proxy-focus');
         } else {
-          container = angular.element('<md-button class="md-no-style"><div class="md-list-item-inner"></div></md-button>');
-          copyAttributes(tEl[0], container[0]);
-          container.children().eq(0).append(tEl.contents());
+          // Element which holds the default list-item content.
+          container = angular.element('<div class="md-button md-no-style"><div class="md-list-item-inner"></div></div>');
+
+          // Button which shows ripple and executes primary action.
+          var buttonWrap = angular.element('<md-button class="md-no-style" md-no-focus-style></md-button>');
+          buttonWrap[0].setAttribute('aria-label', tEl[0].textContent);
+          copyAttributes(tEl[0], buttonWrap[0]);
+
+          // Append the button wrap before our list-item content, because it will overlay in relative.
+          container.prepend(buttonWrap);
+          container.children().eq(1).append(tEl.contents());
+          
+          tEl.addClass('md-button-wrap');
         }
 
         tEl[0].setAttribute('tabindex', '-1');
@@ -179,7 +189,11 @@ function mdListItemDirective($mdAria, $mdConstant, $mdUtil, $timeout) {
                 ( tAttrs.ngClick &&
                 isProxiedElement(secondaryItem) )
             )) {
-          secondaryItem.classList.remove('md-secondary');
+          // When using multiple secondary items we need to remove their secondary class to be
+          // orderd correctly in the list-item
+          if (hasSecondaryItemsWrapper) {
+            secondaryItem.classList.remove('md-secondary');
+          }
           tEl.addClass('md-with-secondary');
           container.append(secondaryItem);
         }
diff --git a/src/components/list/list.scss b/src/components/list/list.scss
index e9ccea1de0c..4290f34f117 100644
--- a/src/components/list/list.scss
+++ b/src/components/list/list.scss
@@ -45,6 +45,33 @@ md-list-item {
   &.md-proxy-focus.md-focused .md-no-style {
     transition: background-color 0.15s linear;
   }
+
+  &.md-button-wrap {
+    position: relative;
+
+    > .md-button:first-child {
+      padding: 0;
+      margin: 0;
+      font-weight: 400;
+      background-color: inherit;
+      text-align: left;
+      border: medium none;
+
+      > .md-button:first-child {
+        height: 100%;
+        position: absolute;
+        margin: 0;
+        padding: 0;
+      }
+
+      .md-list-item-inner {
+        padding: 0 16px;
+      }
+
+    }
+
+  }
+
   &.md-no-proxy,
   .md-no-style {
     position: relative;
diff --git a/src/components/list/list.spec.js b/src/components/list/list.spec.js
index 5c68d44d336..1d5066555e7 100644
--- a/src/components/list/list.spec.js
+++ b/src/components/list/list.spec.js
@@ -104,23 +104,24 @@ describe('mdListItem directive', function() {
 
   it('creates buttons when used with ng-click', function() {
     var listItem = setup('<md-list-item ng-click="sayHello()" ng-disabled="true"><p>Hello world</p></md-list-item>');
-    var firstChild = listItem.children()[0];
-    expect(firstChild.nodeName).toBe('MD-BUTTON');
-    expect(firstChild.hasAttribute('ng-disabled')).toBeTruthy();
-    expect(firstChild.childNodes[0].nodeName).toBe('DIV');
-    expect(firstChild.childNodes[0].childNodes[0].nodeName).toBe('P');
+    var buttonChild = listItem.children().children()[0];
+    var innerChild = listItem.children().children()[1];
+    expect(buttonChild.nodeName).toBe('MD-BUTTON');
+    expect(buttonChild.hasAttribute('ng-disabled')).toBeTruthy();
+    expect(innerChild.nodeName).toBe('DIV');
+    expect(innerChild.childNodes[0].nodeName).toBe('P');
   });
 
   it('creates buttons when used with ui-sref', function() {
     var listItem = setup('<md-list-item ui-sref="somestate"><p>Hello world</p></md-list-item>');
-    var firstChild = listItem.children()[0];
+    var firstChild = listItem.children().children()[0];
     expect(firstChild.nodeName).toBe('MD-BUTTON');
     expect(firstChild.hasAttribute('ui-sref')).toBeTruthy();
   });
 
   it('creates buttons when used with href', function() {
     var listItem = setup('<md-list-item href="/somewhere"><p>Hello world</p></md-list-item>');
-    var firstChild = listItem.children()[0];
+    var firstChild = listItem.children().children()[0];
     expect(firstChild.nodeName).toBe('MD-BUTTON');
     expect(firstChild.hasAttribute('href')).toBeTruthy();
   });
@@ -128,15 +129,18 @@ describe('mdListItem directive', function() {
   it('moves aria-label to primary action', function() {
     var listItem = setup('<md-list-item ng-click="sayHello()" aria-label="Hello"></md-list-item>');
     var listItemChildren = listItem.children();
-    expect(listItemChildren[0].nodeName).toBe('MD-BUTTON');
-    expect(listItemChildren.attr('aria-label')).toBe('Hello');
+    expect(listItemChildren[0].nodeName).toBe('DIV');
+    expect(listItemChildren).toHaveClass('md-button');
+    expect(listItemChildren.children()[0].getAttribute('aria-label')).toBe('Hello');
   });
 
   it('moves md-secondary items outside of the button', function() {
     var listItem = setup('<md-list-item ng-click="sayHello()"><p>Hello World</p><md-icon class="md-secondary" ng-click="goWild()"></md-icon></md-list-item>');
+    // First child is our button and content holder
     var firstChild = listItem.children().eq(0);
-    expect(firstChild[0].nodeName).toBe('MD-BUTTON');
-    expect(firstChild.children().length).toBe(1);
+    expect(firstChild[0].nodeName).toBe('DIV');
+    // It should contain two elements, the button overlay and the actual content
+    expect(firstChild.children().length).toBe(2);
     var secondChild = listItem.children().eq(1);
     expect(secondChild[0].nodeName).toBe('MD-BUTTON');
     expect(secondChild.hasClass('md-secondary-container')).toBeTruthy();
@@ -144,9 +148,11 @@ describe('mdListItem directive', function() {
 
   it('moves multiple md-secondary items outside of the button', function() {
     var listItem = setup('<md-list-item ng-click="sayHello()"><p>Hello World</p><md-icon class="md-secondary" ng-click="goWild()"><md-icon class="md-secondary" ng-click="goWild2()"></md-icon></md-list-item>');
+    // First child is our button and content holder
     var firstChild = listItem.children().eq(0);
-    expect(firstChild[0].nodeName).toBe('MD-BUTTON');
-    expect(firstChild.children().length).toBe(1);
+    expect(firstChild[0].nodeName).toBe('DIV');
+    // It should contain two elements, the button overlay and the actual content
+    expect(firstChild.children().length).toBe(2);
     var secondChild = listItem.children().eq(1);
     expect(secondChild[0].nodeName).toBe('DIV');
     expect(secondChild.hasClass('md-secondary-container')).toBeTruthy();