diff --git a/src/cdk/overlay/dispatchers/overlay-outside-click-dispatcher.spec.ts b/src/cdk/overlay/dispatchers/overlay-outside-click-dispatcher.spec.ts
index 989fd0d7a93f..4696765721b6 100644
--- a/src/cdk/overlay/dispatchers/overlay-outside-click-dispatcher.spec.ts
+++ b/src/cdk/overlay/dispatchers/overlay-outside-click-dispatcher.spec.ts
@@ -125,26 +125,34 @@ describe('OverlayOutsideClickDispatcher', () => {
     overlayTwo.dispose();
   });
 
-  it(`should not dispatch click event when click on element
-      included in excludeFromOutsideClick array`, () => {
+  it('should dispatch the click event when click is on an element outside the overlay', () => {
+    const portal = new ComponentPortal(TestComponent);
     const overlayRef = overlay.create();
-    const spy = jasmine.createSpy('overlay mouse click event spy');
+    overlayRef.attach(portal);
+    const button = document.createElement('button');
+    document.body.appendChild(button);
+
+    const spy = jasmine.createSpy('overlay mouse click spy');
     overlayRef.outsidePointerEvents().subscribe(spy);
 
-    const overlayConfig = overlayRef.getConfig();
-    expect(overlayConfig.excludeFromOutsideClick).toBeDefined();
-    expect(overlayConfig.excludeFromOutsideClick!.length).toBe(0);
+    button.click();
+    expect(spy).toHaveBeenCalled();
 
-    overlayRef.attach(new ComponentPortal(TestComponent));
+    button.parentNode!.removeChild(button);
+    overlayRef.dispose();
+  });
+
+  it('should not dispatch the click event when click is on an element inside the overlay', () => {
+    const portal = new ComponentPortal(TestComponent);
+    const overlayRef = overlay.create();
+    overlayRef.attach(portal);
 
-    const buttonShouldNotDetach = document.createElement('button');
-    document.body.appendChild(buttonShouldNotDetach);
-    overlayConfig.excludeFromOutsideClick!.push(buttonShouldNotDetach);
-    buttonShouldNotDetach.click();
+    const spy = jasmine.createSpy('overlay mouse click event spy');
+    overlayRef.outsidePointerEvents().subscribe(spy);
 
+    overlayRef.overlayElement.click();
     expect(spy).not.toHaveBeenCalled();
 
-    buttonShouldNotDetach.parentNode!.removeChild(buttonShouldNotDetach);
     overlayRef.dispose();
   });
 });
diff --git a/src/cdk/overlay/dispatchers/overlay-outside-click-dispatcher.ts b/src/cdk/overlay/dispatchers/overlay-outside-click-dispatcher.ts
index c7f7f0ee30c6..4e899d58b8db 100644
--- a/src/cdk/overlay/dispatchers/overlay-outside-click-dispatcher.ts
+++ b/src/cdk/overlay/dispatchers/overlay-outside-click-dispatcher.ts
@@ -81,13 +81,9 @@ export class OverlayOutsideClickDispatcher extends BaseOverlayDispatcher {
         continue;
       }
 
-      const config = overlayRef.getConfig();
-      const excludeElements = [...config.excludeFromOutsideClick!, overlayRef.overlayElement];
-      const isInsideClick: boolean = excludeElements.some(e => e.contains(target));
-
-      // If it is inside click just break - we should do nothing
-      // If it is outside click dispatch the mouse event, and proceed with the next overlay
-      if (isInsideClick) {
+      // If it's a click inside the overlay, just break - we should do nothing
+      // If it's an outside click dispatch the mouse event, and proceed with the next overlay
+      if (overlayRef.overlayElement.contains(target as Node)) {
         break;
       }
 
diff --git a/src/cdk/overlay/overlay-config.ts b/src/cdk/overlay/overlay-config.ts
index 3d7e0ac1502e..f665e2164921 100644
--- a/src/cdk/overlay/overlay-config.ts
+++ b/src/cdk/overlay/overlay-config.ts
@@ -59,11 +59,6 @@ export class OverlayConfig {
    */
   disposeOnNavigation?: boolean = false;
 
-  /**
-   * Array of HTML elements clicking on which should not be considered as outside click
-   */
-  excludeFromOutsideClick?: HTMLElement[] = [];
-
   constructor(config?: OverlayConfig) {
     if (config) {
       // Use `Iterable` instead of `Array` because TypeScript, as of 3.6.3,
diff --git a/tools/public_api_guard/cdk/overlay.d.ts b/tools/public_api_guard/cdk/overlay.d.ts
index 3438afbc8b0f..df7746f69110 100644
--- a/tools/public_api_guard/cdk/overlay.d.ts
+++ b/tools/public_api_guard/cdk/overlay.d.ts
@@ -205,7 +205,6 @@ export declare class OverlayConfig {
     backdropClass?: string | string[];
     direction?: Direction | Directionality;
     disposeOnNavigation?: boolean;
-    excludeFromOutsideClick?: HTMLElement[];
     hasBackdrop?: boolean;
     height?: number | string;
     maxHeight?: number | string;