diff --git a/src/components/chips/js/chipsController.js b/src/components/chips/js/chipsController.js
index 65d38e5d5ba..b70f8fdb453 100755
--- a/src/components/chips/js/chipsController.js
+++ b/src/components/chips/js/chipsController.js
@@ -187,7 +187,7 @@ MdChipsCtrl.prototype.getPlaceholder = function() {
   // Allow `secondary-placeholder` to be blank.
   var useSecondary = (this.items.length &&
       (this.secondaryPlaceholder == '' || this.secondaryPlaceholder));
-  return useSecondary ? this.placeholder : this.secondaryPlaceholder;
+  return useSecondary ? this.secondaryPlaceholder : this.placeholder;
 };
 
 /**