diff --git a/src/components/autocomplete/js/autocompleteDirective.js b/src/components/autocomplete/js/autocompleteDirective.js
index cf694321a92..c93c1f50c2d 100644
--- a/src/components/autocomplete/js/autocompleteDirective.js
+++ b/src/components/autocomplete/js/autocompleteDirective.js
@@ -153,9 +153,10 @@ function MdAutocomplete ($mdTheming, $mdUtil) {
             </li>\
             ' + (function () {
               return noItemsTemplate
-                  ? '<li ng-if="!$mdAutocompleteCtrl.matches.length"\
-                        ng-hide="$mdAutocompleteCtrl.hidden"\
-                        md-autocomplete-parent-scope>' + noItemsTemplate + '</li>'
+                  ? '<li ng-if="!$mdAutocompleteCtrl.matches.length && !$mdAutocompleteCtrl.loading\
+                         && !$mdAutocompleteCtrl.hidden"\
+                         ng-hide="$mdAutocompleteCtrl.hidden"\
+                         md-autocomplete-parent-scope>' + noItemsTemplate + '</li>'
                   : '';
             })() + '\
           </ul>\