diff --git a/src/dropdown/docs/readme.md b/src/dropdown/docs/readme.md
index 02970d0a5f..5f42e0e829 100644
--- a/src/dropdown/docs/readme.md
+++ b/src/dropdown/docs/readme.md
@@ -2,13 +2,8 @@
 Dropdown is a simple directive which will toggle a dropdown menu on click or programmatically.
 You can either use `is-open` to toggle or add inside a `<a dropdown-toggle>` element to toggle it when is clicked.
 There is also the `on-toggle(open)` optional expression fired when dropdown changes state.
-
-Add `dropdown-append-to-body` to the `dropdown` element to append to the inner `dropdown-menu` to the body.
-This is useful when the dropdown button is inside a div with `overflow: hidden`, and the menu would otherwise be hidden.
-
 By default the dropdown will automatically close if any of its elements is clicked, you can change this behavior by setting the `auto-close` option as follows:
 
   * `always` - (Default) automatically closes the dropdown when any of its elements is clicked.
   * `outsideClick` - closes the dropdown automatically only when the user clicks any element outside the dropdown.
   * `disabled` - disables the auto close. You can then control the open/close status of the dropdown manually, by using `is-open`. Please notice that the dropdown will still close if the toggle is clicked, the `esc` key is pressed or another dropdown is open.
-
diff --git a/src/dropdown/dropdown.js b/src/dropdown/dropdown.js
index 14c255a13b..b469b0bec5 100644
--- a/src/dropdown/dropdown.js
+++ b/src/dropdown/dropdown.js
@@ -33,11 +33,18 @@ angular.module('ui.bootstrap.dropdown', [])
     // unbound this event handler. So check openScope before proceeding.
     if (!openScope) { return; }
 
+    if( evt && openScope.getAutoClose() === 'disabled' )  { return ; }
+
     var toggleElement = openScope.getToggleElement();
     if ( evt && toggleElement && toggleElement[0].contains(evt.target) ) {
         return;
     }
 
+    var $element = openScope.getElement();
+    if( evt && openScope.getAutoClose() === 'outsideClick' && $element && $element[0].contains(evt.target) ) {
+      return;
+    }
+
     openScope.isOpen = false;
 
     if (!$rootScope.$$phase) {
@@ -87,6 +94,14 @@ angular.module('ui.bootstrap.dropdown', [])
     return self.toggleElement;
   };
 
+  scope.getAutoClose = function() {
+    return $attrs.autoClose || 'always'; //or 'outsideClick' or 'disabled'
+  };
+
+  scope.getElement = function() {
+    return self.$element;
+  };
+
   scope.focusToggleElement = function() {
     if ( self.toggleElement ) {
       self.toggleElement[0].focus();
diff --git a/src/dropdown/test/dropdown.spec.js b/src/dropdown/test/dropdown.spec.js
index e69de29bb2..5e7c7dab9e 100644
--- a/src/dropdown/test/dropdown.spec.js
+++ b/src/dropdown/test/dropdown.spec.js
@@ -0,0 +1,415 @@
+describe('dropdownToggle', function() {
+  var $compile, $rootScope, $document, element;
+
+  beforeEach(module('ui.bootstrap.dropdown'));
+
+  beforeEach(inject(function(_$compile_, _$rootScope_, _$document_) {
+    $compile = _$compile_;
+    $rootScope = _$rootScope_;
+    $document = _$document_;
+  }));
+
+  var clickDropdownToggle = function(elm) {
+    elm = elm || element;
+    elm.find('a[dropdown-toggle]').click();
+  };
+
+  var triggerKeyDown = function (element, keyCode) {
+    var e = $.Event('keydown');
+    e.which = keyCode;
+    element.trigger(e);
+  };
+
+  var isFocused = function(elm) {
+    return elm[0] === document.activeElement;
+  };
+
+  describe('basic', function() {
+    function dropdown() {
+      return $compile('<li dropdown><a href dropdown-toggle></a><ul><li><a href>Hello</a></li></ul></li>')($rootScope);
+    }
+
+    beforeEach(function() {
+      element = dropdown();
+    });
+
+    it('should toggle on `a` click', function() {
+      expect(element.hasClass('open')).toBe(false);
+      clickDropdownToggle();
+      expect(element.hasClass('open')).toBe(true);
+      clickDropdownToggle();
+      expect(element.hasClass('open')).toBe(false);
+    });
+
+    it('should toggle when an option is clicked', function() {
+      $document.find('body').append(element);
+      expect(element.hasClass('open')).toBe(false);
+      clickDropdownToggle();
+      expect(element.hasClass('open')).toBe(true);
+
+      var optionEl = element.find('ul > li').eq(0).find('a').eq(0);
+      optionEl.click();
+      expect(element.hasClass('open')).toBe(false);
+      element.remove();
+    });
+
+    it('should close on document click', function() {
+      clickDropdownToggle();
+      expect(element.hasClass('open')).toBe(true);
+      $document.click();
+      expect(element.hasClass('open')).toBe(false);
+    });
+
+    it('should close on escape key & focus toggle element', function() {
+      $document.find('body').append(element);
+      clickDropdownToggle();
+      triggerKeyDown($document, 27);
+      expect(element.hasClass('open')).toBe(false);
+      expect(isFocused(element.find('a'))).toBe(true);
+      element.remove();
+    });
+
+    it('should not close on backspace key', function() {
+      clickDropdownToggle();
+      triggerKeyDown($document, 8);
+      expect(element.hasClass('open')).toBe(true);
+    });
+
+    it('should close on $location change', function() {
+      clickDropdownToggle();
+      expect(element.hasClass('open')).toBe(true);
+      $rootScope.$broadcast('$locationChangeSuccess');
+      $rootScope.$apply();
+      expect(element.hasClass('open')).toBe(false);
+    });
+
+    it('should only allow one dropdown to be open at once', function() {
+      var elm1 = dropdown();
+      var elm2 = dropdown();
+      expect(elm1.hasClass('open')).toBe(false);
+      expect(elm2.hasClass('open')).toBe(false);
+
+      clickDropdownToggle( elm1 );
+      expect(elm1.hasClass('open')).toBe(true);
+      expect(elm2.hasClass('open')).toBe(false);
+
+      clickDropdownToggle( elm2 );
+      expect(elm1.hasClass('open')).toBe(false);
+      expect(elm2.hasClass('open')).toBe(true);
+    });
+
+    it('should not toggle if the element has `disabled` class', function() {
+      var elm = $compile('<li dropdown><a class="disabled" dropdown-toggle></a><ul><li>Hello</li></ul></li>')($rootScope);
+      clickDropdownToggle( elm );
+      expect(elm.hasClass('open')).toBe(false);
+    });
+
+    it('should not toggle if the element is disabled', function() {
+      var elm = $compile('<li dropdown><button disabled="disabled" dropdown-toggle></button><ul><li>Hello</li></ul></li>')($rootScope);
+      elm.find('button').click();
+      expect(elm.hasClass('open')).toBe(false);
+    });
+
+    it('should not toggle if the element has `ng-disabled` as true', function() {
+      $rootScope.isdisabled = true;
+      var elm = $compile('<li dropdown><div ng-disabled="isdisabled" dropdown-toggle></div><ul><li>Hello</li></ul></li>')($rootScope);
+      $rootScope.$digest();
+      elm.find('div').click();
+      expect(elm.hasClass('open')).toBe(false);
+
+      $rootScope.isdisabled = false;
+      $rootScope.$digest();
+      elm.find('div').click();
+      expect(elm.hasClass('open')).toBe(true);
+    });
+
+    it('should unbind events on scope destroy', function() {
+      var $scope = $rootScope.$new();
+      var elm = $compile('<li dropdown><button ng-disabled="isdisabled" dropdown-toggle></button><ul><li>Hello</li></ul></li>')($scope);
+      $scope.$digest();
+
+      var buttonEl = elm.find('button');
+      buttonEl.click();
+      expect(elm.hasClass('open')).toBe(true);
+      buttonEl.click();
+      expect(elm.hasClass('open')).toBe(false);
+
+      $scope.$destroy();
+      buttonEl.click();
+      expect(elm.hasClass('open')).toBe(false);
+    });
+
+    // issue 270
+    it('executes other document click events normally', function() {
+      var checkboxEl = $compile('<input type="checkbox" ng-click="clicked = true" />')($rootScope);
+      $rootScope.$digest();
+
+      expect(element.hasClass('open')).toBe(false);
+      expect($rootScope.clicked).toBeFalsy();
+
+      clickDropdownToggle();
+      expect(element.hasClass('open')).toBe(true);
+      expect($rootScope.clicked).toBeFalsy();
+
+      checkboxEl.click();
+      expect($rootScope.clicked).toBeTruthy();
+    });
+
+    // WAI-ARIA
+    it('should aria markup to the `dropdown-toggle`', function() {
+      var toggleEl = element.find('a');
+      expect(toggleEl.attr('aria-haspopup')).toBe('true');
+      expect(toggleEl.attr('aria-expanded')).toBe('false');
+
+      clickDropdownToggle();
+      expect(toggleEl.attr('aria-expanded')).toBe('true');
+      clickDropdownToggle();
+      expect(toggleEl.attr('aria-expanded')).toBe('false');
+    });
+
+    // pr/issue 3274
+    it('should not raise $digest:inprog if dismissed during a digest cycle', function () {
+      clickDropdownToggle();
+      expect(element.hasClass('open')).toBe(true);
+
+      $rootScope.$apply(function () {
+        $document.click();
+      });
+
+      expect(element.hasClass('open')).toBe(false);
+    });
+  });
+
+  describe('integration with $location URL rewriting', function() {
+    function dropdown() {
+
+      // Simulate URL rewriting behavior
+      $document.on('click', 'a[href="#something"]', function () {
+        $rootScope.$broadcast('$locationChangeSuccess');
+        $rootScope.$apply();
+      });
+
+      return $compile('<li dropdown><a href dropdown-toggle></a>' +
+        '<ul><li><a href="#something">Hello</a></li></ul></li>')($rootScope);
+    }
+
+    beforeEach(function() {
+      element = dropdown();
+    });
+
+    it('should close without errors on $location change', function() {
+      $document.find('body').append(element);
+      clickDropdownToggle();
+      expect(element.hasClass('open')).toBe(true);
+      var optionEl = element.find('ul > li').eq(0).find('a').eq(0);
+      optionEl.click();
+      expect(element.hasClass('open')).toBe(false);
+    });
+  });
+
+  describe('without trigger', function() {
+    beforeEach(function() {
+      $rootScope.isopen = true;
+      element = $compile('<li dropdown is-open="isopen"><ul><li>Hello</li></ul></li>')($rootScope);
+      $rootScope.$digest();
+    });
+
+    it('should be open initially', function() {
+      expect(element.hasClass('open')).toBe(true);
+    });
+
+    it('should toggle when `is-open` changes', function() {
+      $rootScope.isopen = false;
+      $rootScope.$digest();
+      expect(element.hasClass('open')).toBe(false);
+    });
+  });
+
+  describe('`is-open`', function() {
+    beforeEach(function() {
+      $rootScope.isopen = true;
+      element = $compile('<li dropdown is-open="isopen"><a href dropdown-toggle></a><ul><li>Hello</li></ul></li>')($rootScope);
+      $rootScope.$digest();
+    });
+
+    it('should be open initially', function() {
+      expect(element.hasClass('open')).toBe(true);
+    });
+
+    it('should change `is-open` binding when toggles', function() {
+      clickDropdownToggle();
+      expect($rootScope.isopen).toBe(false);
+    });
+
+    it('should toggle when `is-open` changes', function() {
+      $rootScope.isopen = false;
+      $rootScope.$digest();
+      expect(element.hasClass('open')).toBe(false);
+    });
+
+    it('focus toggle element when opening', function() {
+      $document.find('body').append(element);
+      clickDropdownToggle();
+      $rootScope.isopen = false;
+      $rootScope.$digest();
+      expect(isFocused(element.find('a'))).toBe(false);
+      $rootScope.isopen = true;
+      $rootScope.$digest();
+      expect(isFocused(element.find('a'))).toBe(true);
+      element.remove();
+    });
+  });
+
+  describe('`on-toggle`', function() {
+    beforeEach(function() {
+      $rootScope.toggleHandler = jasmine.createSpy('toggleHandler');
+      $rootScope.isopen = false;
+      element = $compile('<li dropdown on-toggle="toggleHandler(open)"  is-open="isopen"><a dropdown-toggle></a><ul><li>Hello</li></ul></li>')($rootScope);
+      $rootScope.$digest();
+    });
+
+    it('should not have been called initially', function() {
+      expect($rootScope.toggleHandler).not.toHaveBeenCalled();
+    });
+
+    it('should call it correctly when toggles', function() {
+      $rootScope.isopen = true;
+      $rootScope.$digest();
+      expect($rootScope.toggleHandler).toHaveBeenCalledWith(true);
+
+      clickDropdownToggle();
+      expect($rootScope.toggleHandler).toHaveBeenCalledWith(false);
+    });
+  });
+
+  describe('`on-toggle` with initially open', function() {
+    beforeEach(function() {
+      $rootScope.toggleHandler = jasmine.createSpy('toggleHandler');
+      $rootScope.isopen = true;
+      element = $compile('<li dropdown on-toggle="toggleHandler(open)" is-open="isopen"><a dropdown-toggle></a><ul><li>Hello</li></ul></li>')($rootScope);
+      $rootScope.$digest();
+    });
+
+    it('should not have been called initially', function() {
+      expect($rootScope.toggleHandler).not.toHaveBeenCalled();
+    });
+
+    it('should call it correctly when toggles', function() {
+      $rootScope.isopen = false;
+      $rootScope.$digest();
+      expect($rootScope.toggleHandler).toHaveBeenCalledWith(false);
+
+      $rootScope.isopen = true;
+      $rootScope.$digest();
+      expect($rootScope.toggleHandler).toHaveBeenCalledWith(true);
+    });
+  });
+
+  describe('`on-toggle` without is-open', function() {
+    beforeEach(function() {
+      $rootScope.toggleHandler = jasmine.createSpy('toggleHandler');
+      element = $compile('<li dropdown on-toggle="toggleHandler(open)"><a dropdown-toggle></a><ul><li>Hello</li></ul></li>')($rootScope);
+      $rootScope.$digest();
+    });
+
+    it('should not have been called initially', function() {
+      expect($rootScope.toggleHandler).not.toHaveBeenCalled();
+    });
+
+    it('should call it when clicked', function() {
+      clickDropdownToggle();
+      expect($rootScope.toggleHandler).toHaveBeenCalledWith(true);
+
+      clickDropdownToggle();
+      expect($rootScope.toggleHandler).toHaveBeenCalledWith(false);
+    });
+  });
+
+  describe('`auto-close` option', function() {
+    function dropdown(autoClose) {
+      return $compile('<li dropdown ' +
+        (autoClose === void 0 ? '' : 'auto-close="'+autoClose+'"') +
+        '><a href dropdown-toggle></a><ul><li><a href>Hello</a></li></ul></li>')($rootScope);
+    }
+
+    it('should close on document click if no auto-close is specified', function() {
+      element = dropdown();
+      clickDropdownToggle();
+      expect(element.hasClass('open')).toBe(true);
+      $document.click();
+      expect(element.hasClass('open')).toBe(false);
+    });
+
+    it('should close on document click if empty auto-close is specified', function() {
+      element = dropdown('');
+      clickDropdownToggle();
+      expect(element.hasClass('open')).toBe(true);
+      $document.click();
+      expect(element.hasClass('open')).toBe(false);
+    });
+
+    it('auto-close="disabled"', function() {
+      element = dropdown('disabled');
+      clickDropdownToggle();
+      expect(element.hasClass('open')).toBe(true);
+      $document.click();
+      expect(element.hasClass('open')).toBe(true);
+    });
+
+    it('auto-close="outsideClick"', function() {
+      element = dropdown('outsideClick');
+      clickDropdownToggle();
+      expect(element.hasClass('open')).toBe(true);
+      element.find('ul li a').click();
+      expect(element.hasClass('open')).toBe(true);
+      $document.click();
+      expect(element.hasClass('open')).toBe(false);
+    });
+
+    it('control with is-open', function() {
+      $rootScope.isopen = true;
+      element = $compile('<li dropdown is-open="isopen" auto-close="disabled"><a href dropdown-toggle></a><ul><li>Hello</li></ul></li>')($rootScope);
+      $rootScope.$digest();
+
+      expect(element.hasClass('open')).toBe(true);
+      //should remain open
+      $document.click();
+      expect(element.hasClass('open')).toBe(true);
+      //now should close
+      $rootScope.isopen = false;
+      $rootScope.$digest();
+      expect(element.hasClass('open')).toBe(false);
+    });
+
+    it('should close anyway if toggle is clicked', function() {
+      element = dropdown('disabled');
+      clickDropdownToggle();
+      expect(element.hasClass('open')).toBe(true);
+      clickDropdownToggle();
+      expect(element.hasClass('open')).toBe(false);
+    });
+
+    it('should close anyway if esc is pressed', function() {
+      element = dropdown('disabled');
+      $document.find('body').append(element);
+      clickDropdownToggle();
+      triggerKeyDown($document, 27);
+      expect(element.hasClass('open')).toBe(false);
+      expect(isFocused(element.find('a'))).toBe(true);
+      element.remove();
+    });
+
+    it('should close anyway if another dropdown is opened', function() {
+      var elm1 = dropdown('disabled');
+      var elm2 = dropdown();
+      expect(elm1.hasClass('open')).toBe(false);
+      expect(elm2.hasClass('open')).toBe(false);
+      clickDropdownToggle(elm1);
+      expect(elm1.hasClass('open')).toBe(true);
+      expect(elm2.hasClass('open')).toBe(false);
+      clickDropdownToggle(elm2);
+      expect(elm1.hasClass('open')).toBe(false);
+      expect(elm2.hasClass('open')).toBe(true);
+    });
+  });
+});