diff --git a/src/lib/chips/chip-list.ts b/src/lib/chips/chip-list.ts
index 0643aeb9978c..8c63197451c2 100644
--- a/src/lib/chips/chip-list.ts
+++ b/src/lib/chips/chip-list.ts
@@ -277,7 +277,7 @@ export class MdChipList implements MdFormFieldControl<any>, ControlValueAccessor
 
   /** Combined stream of all of the child chips' selection change events. */
   get chipSelectionChanges(): Observable<MdChipSelectionChange> {
-    return merge(...this.chips.map(chip => chip.onSelectionChange));
+    return merge(...this.chips.map(chip => chip.selectionChange));
   }
 
   /** Combined stream of all of the child chips' focus change events. */
diff --git a/src/lib/chips/chip.spec.ts b/src/lib/chips/chip.spec.ts
index cb8b6f506658..240ceec898d6 100644
--- a/src/lib/chips/chip.spec.ts
+++ b/src/lib/chips/chip.spec.ts
@@ -121,7 +121,7 @@ describe('Chips', () => {
 
         expect(chipNativeElement.classList).toContain('mat-chip-selected');
         expect(testComponent.chipSelectionChange)
-          .toHaveBeenCalledWith({source: chipInstance, isUserInput: false});
+          .toHaveBeenCalledWith({source: chipInstance, isUserInput: false, selected: true});
       });
 
       it('allows removal', () => {
@@ -144,7 +144,17 @@ describe('Chips', () => {
 
         it('should selects/deselects the currently focused chip on SPACE', () => {
           const SPACE_EVENT: KeyboardEvent = createKeyboardEvent('keydown', SPACE) as KeyboardEvent;
-          const CHIP_EVENT: MdChipSelectionChange = {source: chipInstance, isUserInput: true};
+          const CHIP_SELECTED_EVENT: MdChipSelectionChange = {
+            source: chipInstance,
+            isUserInput: true,
+            selected: true
+          };
+
+          const CHIP_DESELECTED_EVENT: MdChipSelectionChange = {
+            source: chipInstance,
+            isUserInput: true,
+            selected: false
+          };
 
           spyOn(testComponent, 'chipSelectionChange');
 
@@ -154,7 +164,7 @@ describe('Chips', () => {
 
           expect(chipInstance.selected).toBeTruthy();
           expect(testComponent.chipSelectionChange).toHaveBeenCalledTimes(1);
-          expect(testComponent.chipSelectionChange).toHaveBeenCalledWith(CHIP_EVENT);
+          expect(testComponent.chipSelectionChange).toHaveBeenCalledWith(CHIP_SELECTED_EVENT);
 
           // Use the spacebar to deselect the chip
           chipInstance._handleKeydown(SPACE_EVENT);
@@ -162,7 +172,7 @@ describe('Chips', () => {
 
           expect(chipInstance.selected).toBeFalsy();
           expect(testComponent.chipSelectionChange).toHaveBeenCalledTimes(2);
-          expect(testComponent.chipSelectionChange).toHaveBeenCalledWith(CHIP_EVENT);
+          expect(testComponent.chipSelectionChange).toHaveBeenCalledWith(CHIP_DESELECTED_EVENT);
         });
 
         it('should have correct aria-selected', () => {
@@ -280,9 +290,9 @@ describe('Chips', () => {
       <div *ngIf="shouldShow">
         <md-chip [selectable]="selectable" [removable]="removable"
                  [color]="color" [selected]="selected" [disabled]="disabled"
-                 (focus)="chipFocus($event)" (destroy)="chipDestroy($event)"
-                 (onSelectionChange)="chipSelectionChange($event)"
-                 (remove)="chipRemove($event)">
+                 (focus)="chipFocus($event)" (destroyed)="chipDestroy($event)"
+                 (selectionChange)="chipSelectionChange($event)"
+                 (removed)="chipRemove($event)">
           {{name}}
         </md-chip>
       </div>
diff --git a/src/lib/chips/chip.ts b/src/lib/chips/chip.ts
index 26ab43c56e4c..a7cdfaebb43b 100644
--- a/src/lib/chips/chip.ts
+++ b/src/lib/chips/chip.ts
@@ -34,7 +34,7 @@ export interface MdChipEvent {
 
 /** Event object emitted by MdChip when selected or deselected. */
 export class MdChipSelectionChange {
-  constructor(public source: MdChip, public isUserInput = false) { }
+  constructor(public source: MdChip, public selected: boolean, public isUserInput = false) { }
 }
 
 
@@ -98,7 +98,11 @@ export class MdChip extends _MdChipMixinBase implements FocusableOption, OnDestr
   get selected(): boolean { return this._selected; }
   set selected(value: boolean) {
     this._selected = coerceBooleanProperty(value);
-    this.onSelectionChange.emit({source: this, isUserInput: false});
+    this.selectionChange.emit({
+      source: this,
+      isUserInput: false,
+      selected: value
+    });
   }
 
   /** The value of the chip. Defaults to the content inside <md-chip> tags. */
@@ -132,13 +136,25 @@ export class MdChip extends _MdChipMixinBase implements FocusableOption, OnDestr
   _onBlur = new Subject<MdChipEvent>();
 
   /** Emitted when the chip is selected or deselected. */
-  @Output() onSelectionChange = new EventEmitter<MdChipSelectionChange>();
+  @Output() selectionChange = new EventEmitter<MdChipSelectionChange>();
 
   /** Emitted when the chip is destroyed. */
-  @Output() destroy = new EventEmitter<MdChipEvent>();
+  @Output() destroyed = new EventEmitter<MdChipEvent>();
+
+  /**
+   * Emitted when the chip is destroyed.
+   * @deprecated Use 'destroyed' instead.
+   */
+  @Output() destroy = this.destroyed;
 
   /** Emitted when a chip is to be removed. */
-  @Output('remove') onRemove = new EventEmitter<MdChipEvent>();
+  @Output() removed = new EventEmitter<MdChipEvent>();
+
+  /**
+   * Emitted when a chip is to be removed.
+   * @deprecated Use `removed` instead.
+   */
+  @Output('remove') onRemove = this.removed;
 
   get ariaSelected(): string | null {
     return this.selectable ? this.selected.toString() : null;
@@ -149,32 +165,50 @@ export class MdChip extends _MdChipMixinBase implements FocusableOption, OnDestr
   }
 
   ngOnDestroy(): void {
-    this.destroy.emit({chip: this});
+    this.destroyed.emit({chip: this});
   }
 
   /** Selects the chip. */
   select(): void {
     this._selected = true;
-    this.onSelectionChange.emit({source: this, isUserInput: false});
+    this.selectionChange.emit({
+      source: this,
+      isUserInput: false,
+      selected: true
+    });
   }
 
   /** Deselects the chip. */
   deselect(): void {
     this._selected = false;
-    this.onSelectionChange.emit({source: this, isUserInput: false});
+    this.selectionChange.emit({
+      source: this,
+      isUserInput: false,
+      selected: false
+    });
   }
 
   /** Select this chip and emit selected event */
-  selectViaInteraction() {
+  selectViaInteraction(): void {
     this._selected = true;
     // Emit select event when selected changes.
-    this.onSelectionChange.emit({source: this, isUserInput: true});
+    this.selectionChange.emit({
+      source: this,
+      isUserInput: true,
+      selected: true
+    });
   }
 
   /** Toggles the current selected state of this chip. */
   toggleSelected(isUserInput: boolean = false): boolean {
     this._selected = !this.selected;
-    this.onSelectionChange.emit({source: this, isUserInput});
+
+    this.selectionChange.emit({
+      source: this,
+      isUserInput,
+      selected: this._selected
+    });
+
     return this.selected;
   }
 
@@ -192,7 +226,7 @@ export class MdChip extends _MdChipMixinBase implements FocusableOption, OnDestr
    */
   remove(): void {
     if (this.removable) {
-      this.onRemove.emit({chip: this});
+      this.removed.emit({chip: this});
     }
   }
 
@@ -210,7 +244,7 @@ export class MdChip extends _MdChipMixinBase implements FocusableOption, OnDestr
   }
 
   /** Handle custom key presses. */
-  _handleKeydown(event: KeyboardEvent) {
+  _handleKeydown(event: KeyboardEvent): void {
     if (this.disabled) {
       return;
     }
@@ -235,7 +269,7 @@ export class MdChip extends _MdChipMixinBase implements FocusableOption, OnDestr
     }
   }
 
-  _blur() {
+  _blur(): void {
     this._hasFocus = false;
     this._onBlur.next({chip: this});
   }
@@ -266,7 +300,7 @@ export class MdChipRemove {
   constructor(protected _parentChip: MdChip) {}
 
   /** Calls the parent chip's public `remove()` method if applicable. */
-  _handleClick() {
+  _handleClick(): void {
     if (this._parentChip.removable) {
       this._parentChip.remove();
     }
diff --git a/src/lib/chips/chips.md b/src/lib/chips/chips.md
index 6b7760f77ac1..db4dfdeef6be 100644
--- a/src/lib/chips/chips.md
+++ b/src/lib/chips/chips.md
@@ -23,7 +23,7 @@ Chips can be selected via the `selected` property. Selection can be disabled by
 `selectable` to `false` on the `<md-chip-list>`.
 
 Whenever the selection state changes, a `ChipSelectionChange` event will be emitted via 
-`(onSelectionChange)`.
+`(selectionChange)`.
 
 ### Disabled chips
 Individual chips may be disabled by applying the `disabled` attribute to the chip. When disabled,