diff --git a/addon/components/paper-input.js b/addon/components/paper-input.js
index 3c45dbbbf..ecd94e97a 100644
--- a/addon/components/paper-input.js
+++ b/addon/components/paper-input.js
@@ -33,7 +33,8 @@ export default Component.extend(FocusableMixin, ColorMixin, ChildMixin, Validati
     'hasLeftIcon:md-icon-left',
     'hasRightIcon:md-icon-right',
     'focused:md-input-focused',
-    'block:md-block'
+    'block:md-block',
+    'placeholder:md-input-has-placeholder'
   ],
   type: 'text',
   autofocus: false,
diff --git a/tests/integration/components/paper-input-test.js b/tests/integration/components/paper-input-test.js
index 290120d3a..86dcfb958 100644
--- a/tests/integration/components/paper-input-test.js
+++ b/tests/integration/components/paper-input-test.js
@@ -74,11 +74,12 @@ module('Integration | Component | paper-input', function(hooks) {
   });
 
   test('renders input with placeholder', async function(assert) {
-    assert.expect(1);
+    assert.expect(2);
 
     await render(hbs`{{paper-input placeholder="Enter value here" onChange=dummyOnChange}}`);
 
     assert.dom('md-input-container input').hasAttribute('placeholder', 'Enter value here');
+    assert.dom('md-input-container').hasClass('md-input-has-placeholder');
 
   });
 
@@ -517,6 +518,24 @@ module('Integration | Component | paper-input', function(hooks) {
     assert.dom('.other-stuff').exists();
   });
 
+  test('does not have md-input-has-placeholder class when no placeholder', async function(assert) {
+    assert.expect(1);
+
+    await render(hbs`{{paper-input onChange=dummyOnChange}}`);
+
+    assert.dom('md-input-container').doesNotHaveClass('md-input-has-placeholder');
+
+  });
+
+  test('does not have md-input-has-placeholder class when there is a label', async function(assert) {
+    assert.expect(1);
+
+    await render(hbs`{{paper-input label="Label here" onChange=dummyOnChange}}`);
+
+    assert.dom('md-input-container').doesNotHaveClass('md-input-has-placeholder');
+
+  });
+
   test('aria-describedby on input elements is set properly', async function(assert) {
 
     let errors = [{