diff --git a/src/common.js b/src/common.js
index ba7023424..2761f238a 100644
--- a/src/common.js
+++ b/src/common.js
@@ -99,6 +99,7 @@ var uis = angular.module('ui.select', [])
   placeholder: '', // Empty by default, like HTML tag <select>
   refreshDelay: 1000, // In milliseconds
   closeOnSelect: true,
+  firstItemActive: true,
   skipFocusser: false,
   dropdownPosition: 'auto',
   removeSelected: true,
diff --git a/src/uiSelectChoicesDirective.js b/src/uiSelectChoicesDirective.js
index 911e83132..f13489b77 100644
--- a/src/uiSelectChoicesDirective.js
+++ b/src/uiSelectChoicesDirective.js
@@ -61,7 +61,7 @@ uis.directive('uiSelectChoices',
 
         scope.$watch('$select.search', function(newValue) {
           if(newValue && !$select.open && $select.multiple) $select.activate(false, true);
-          $select.activeIndex = $select.tagging.isActivated ? -1 : 0;
+          $select.activeIndex = $select.tagging.isActivated || !$select.firstItemActive ? -1 : 0;
           if (!attrs.minimumInputLength || $select.search.length >= attrs.minimumInputLength) {
             $select.refresh(attrs.refresh);
           } else {
@@ -74,7 +74,13 @@ uis.directive('uiSelectChoices',
           var refreshDelay = scope.$eval(attrs.refreshDelay);
           $select.refreshDelay = refreshDelay !== undefined ? refreshDelay : uiSelectConfig.refreshDelay;
         });
-
+        
+        attrs.$observe('firstItemActive', function() {
+          // $eval() is needed otherwise we get a string instead of a boolean
+          var firstItemActive = scope.$eval(attrs.firstItemActive);
+          $select.firstItemActive = firstItemActive !== undefined ? firstItemActive : uiSelectConfig.firstItemActive;
+        });
+          
         scope.$watch('$select.open', function(open) {
           if (open) {
             tElement.attr('role', 'listbox');
diff --git a/src/uiSelectController.js b/src/uiSelectController.js
index e304279d4..99e5871c6 100644
--- a/src/uiSelectController.js
+++ b/src/uiSelectController.js
@@ -16,6 +16,7 @@ uis.controller('uiSelectCtrl',
   ctrl.searchEnabled = uiSelectConfig.searchEnabled;
   ctrl.sortable = uiSelectConfig.sortable;
   ctrl.refreshDelay = uiSelectConfig.refreshDelay;
+  ctrl.firstItemActive = uiSelectConfig.firstItemActive;
   ctrl.paste = uiSelectConfig.paste;
   ctrl.resetSearchInput = uiSelectConfig.resetSearchInput;
   ctrl.refreshing = false;
@@ -26,7 +27,7 @@ uis.controller('uiSelectCtrl',
   ctrl.skipFocusser = false; //Set to true to avoid returning focus to ctrl when item is selected
   ctrl.search = EMPTY_SEARCH;
 
-  ctrl.activeIndex = 0; //Dropdown of choices
+  ctrl.activeIndex = ctrl.firstItemActive ? 0 : -1; //Dropdown of choices
   ctrl.items = []; //All available choices
 
   ctrl.open = false;
@@ -115,11 +116,13 @@ uis.controller('uiSelectCtrl',
 
       $scope.$broadcast('uis:activate');
       ctrl.open = true;
-      ctrl.activeIndex = ctrl.activeIndex >= ctrl.items.length ? 0 : ctrl.activeIndex;
+      ctrl.activeIndex = ctrl.activeIndex >= ctrl.items.length ? (ctrl.firstItemActive ? 0 : -1) : ctrl.activeIndex;
       // ensure that the index is set to zero for tagging variants
       // that where first option is auto-selected
-      if ( ctrl.activeIndex === -1 && ctrl.taggingLabel !== false ) {
+      if ( ctrl.firstItemActive && ctrl.activeIndex === -1 && ctrl.taggingLabel !== false ) {
         ctrl.activeIndex = 0;
+      } else {
+        ctrl.activeIndex = -1;
       }
 
       var container = $element.querySelectorAll('.ui-select-choices-content');
@@ -579,13 +582,20 @@ uis.controller('uiSelectCtrl',
         }
         break;
       case KEY.TAB:
-        if (!ctrl.multiple || ctrl.open) ctrl.select(ctrl.items[ctrl.activeIndex], true);
+        if ((!ctrl.multiple || ctrl.open) && ctrl.activeIndex >= 0) {
+          ctrl.select(ctrl.items[ctrl.activeIndex], true);
+        } else {
+          ctrl.close();
+        }
         break;
       case KEY.ENTER:
         if(ctrl.open && (ctrl.tagging.isActivated || ctrl.activeIndex >= 0)){
           ctrl.select(ctrl.items[ctrl.activeIndex], ctrl.skipFocusser); // Make sure at least one dropdown item is highlighted before adding if not in tagging mode
         } else {
           ctrl.activate(false, true); //In case its the search input in 'multiple' mode
+          if(!ctrl.firstItemActive) {
+            ctrl.close();
+          }
         }
         break;
       case KEY.ESC:
diff --git a/src/uiSelectMultipleDirective.js b/src/uiSelectMultipleDirective.js
index 1d0243724..64b7535af 100644
--- a/src/uiSelectMultipleDirective.js
+++ b/src/uiSelectMultipleDirective.js
@@ -11,7 +11,7 @@ uis.directive('uiSelectMultiple', ['uiSelectMinErr','$timeout', function(uiSelec
 
       if (angular.isUndefined($select.selected))
         $select.selected = [];
-
+      
       //Wait for link fn to inject it
       $scope.$evalAsync(function(){ ngModel = $scope.ngModel; });
 
@@ -289,7 +289,7 @@ uis.directive('uiSelectMultiple', ['uiSelectMinErr','$timeout', function(uiSelec
 
         if ( ! KEY.isVerticalMovement(e.which) ) {
           scope.$evalAsync( function () {
-            $select.activeIndex = $select.taggingLabel === false ? -1 : 0;
+            $select.activeIndex = $select.taggingLabel === false || !$select.firstItemActive ? -1 : 0;
           });
         }
         // Push a "create new" item into array if there is a search string
@@ -300,7 +300,7 @@ uis.directive('uiSelectMultiple', ['uiSelectMinErr','$timeout', function(uiSelec
             return;
           }
           // always reset the activeIndex to the first item when tagging
-          $select.activeIndex = $select.taggingLabel === false ? -1 : 0;
+          $select.activeIndex = $select.taggingLabel === false || !$select.firstItemActive ? -1 : 0;
           // taggingLabel === false bypasses all of this
           if ($select.taggingLabel === false) return;
 
@@ -370,7 +370,7 @@ uis.directive('uiSelectMultiple', ['uiSelectMinErr','$timeout', function(uiSelec
               if ( hasTag ) {
                 items = stashArr;
                 scope.$evalAsync( function () {
-                  $select.activeIndex = 0;
+                  $select.activeIndex = $select.firstItemActive ? 0 : -1;
                   $select.items = items;
                 });
               }
@@ -394,7 +394,7 @@ uis.directive('uiSelectMultiple', ['uiSelectMinErr','$timeout', function(uiSelec
             items = items.concat(stashArr);
           }
           scope.$evalAsync( function () {
-            $select.activeIndex = 0;
+            $select.activeIndex = $select.firstItemActive ? 0 : -1;
             $select.items = items;
 
             if ($select.isGrouped) {
diff --git a/test/select.spec.js b/test/select.spec.js
index 8c1cf44c7..27d57aef5 100644
--- a/test/select.spec.js
+++ b/test/select.spec.js
@@ -1851,12 +1851,13 @@ describe('ui-select tests', function() {
             if (attrs.limit !== undefined) { attrsHtml += ' limit="' + attrs.limit + '"'; }
             if (attrs.onSelect !== undefined) { attrsHtml += ' on-select="' + attrs.onSelect + '"'; }
             if (attrs.removeSelected !== undefined) { attrsHtml += ' remove-selected="' + attrs.removeSelected + '"';}
+            if (attrs.firstItemActive === undefined) { attrs.firstItemActive = true; }
         }
 
         return compileTemplate(
             '<ui-select multiple ng-model="selection.selectedMultiple"' + attrsHtml + ' theme="bootstrap" style="width: 800px;"> \
                 <ui-select-match "' + matchesAttrsHtml + ' placeholder="Pick one...">{{$item.name}} &lt;{{$item.email}}&gt;</ui-select-match> \
-                <ui-select-choices repeat="person in people | filter: $select.search"' + choicesAttrsHtml + '> \
+                <ui-select-choices repeat="person in people | filter: $select.search"' + choicesAttrsHtml + ' first-item-active="' + attrs.firstItemActive + '"> \
                   <div ng-bind-html="person.name | highlight: $select.search"></div> \
                   <div ng-bind-html="person.email | highlight: $select.search"></div> \
                 </ui-select-choices> \
@@ -2191,10 +2192,30 @@ describe('ui-select tests', function() {
         var el = createUiSelectMultiple();
         var searchInput = el.find('.ui-select-search');
 
-        triggerKeydown(searchInput, Key.Down);
+        triggerKeydown(searchInput, Key.Down); //Open dropdown
+        el.scope().$select.activeIndex = 0;
         triggerKeydown(searchInput, Key.Enter);
         expect(scope.selection.selectedMultiple.length).toEqual(2);
+    });
+
+    it('should close choices on ENTER when firstItemActive set to false', function() {
+
+        scope.selection.selectedMultiple = [scope.people[5]]; //Samantha
+        var el = createUiSelectMultiple({firstItemActive: false});
+        var searchInput = el.find('.ui-select-search');
+
+        triggerKeydown(searchInput, Key.Enter);
+        expect(el.scope().$select.open).toEqual(false);
+    });
+
+    it('should close choices on TAB when firstItemActive set to false', function() {
+
+        scope.selection.selectedMultiple = [scope.people[5]]; //Samantha
+        var el = createUiSelectMultiple({firstItemActive: false});
+        var searchInput = el.find('.ui-select-search');
 
+        triggerKeydown(searchInput, Key.Tab);
+        expect(el.scope().$select.open).toEqual(false);
     });
 
     it('should stop the propagation when pressing ENTER key from dropdown', function() {