diff --git a/packages/language-service/src/completions.ts b/packages/language-service/src/completions.ts
index 752b8acd6b..64abe85f5b 100644
--- a/packages/language-service/src/completions.ts
+++ b/packages/language-service/src/completions.ts
@@ -308,7 +308,7 @@ function attributeValueCompletions(info: AstResult, htmlPath: HtmlAstPath): ng.C
   const templatePath = findTemplateAstAt(info.templateAst, htmlPath.position);
   const visitor = new ExpressionVisitor(info, htmlPath.position, () => {
     const dinfo = diagnosticInfoFromTemplateInfo(info);
-    return getExpressionScope(dinfo, templatePath, false);
+    return getExpressionScope(dinfo, templatePath);
   });
   if (templatePath.tail instanceof AttrAst ||
       templatePath.tail instanceof BoundElementPropertyAst ||
@@ -398,8 +398,7 @@ function interpolationCompletions(info: AstResult, position: number): ng.Complet
     return [];
   }
   const visitor = new ExpressionVisitor(
-      info, position,
-      () => getExpressionScope(diagnosticInfoFromTemplateInfo(info), templatePath, false));
+      info, position, () => getExpressionScope(diagnosticInfoFromTemplateInfo(info), templatePath));
   templatePath.tail.visit(visitor, null);
   return visitor.results;
 }
diff --git a/packages/language-service/src/expression_diagnostics.ts b/packages/language-service/src/expression_diagnostics.ts
index 2382fd85f0..b5c7e43402 100644
--- a/packages/language-service/src/expression_diagnostics.ts
+++ b/packages/language-service/src/expression_diagnostics.ts
@@ -25,8 +25,7 @@ export interface DiagnosticTemplateInfo {
 
 export function getTemplateExpressionDiagnostics(info: DiagnosticTemplateInfo): Diagnostic[] {
   const visitor = new ExpressionDiagnosticsVisitor(
-      info, (path: TemplateAstPath, includeEvent: boolean) =>
-                getExpressionScope(info, path, includeEvent));
+      info, (path: TemplateAstPath) => getExpressionScope(info, path));
   templateVisitAll(visitor, info.templateAst);
   return visitor.diagnostics;
 }
@@ -194,9 +193,9 @@ function refinedVariableType(
   return query.getBuiltinType(BuiltinType.Any);
 }
 
-function getEventDeclaration(info: DiagnosticTemplateInfo, includeEvent?: boolean) {
+function getEventDeclaration(info: DiagnosticTemplateInfo, path: TemplateAstPath) {
   let result: SymbolDeclaration[] = [];
-  if (includeEvent) {
+  if (path.tail instanceof BoundEventAst) {
     // TODO: Determine the type of the event parameter based on the Observable<T> or EventEmitter<T>
     // of the event.
     result = [{name: '$event', kind: 'variable', type: info.query.getBuiltinType(BuiltinType.Any)}];
@@ -205,11 +204,11 @@ function getEventDeclaration(info: DiagnosticTemplateInfo, includeEvent?: boolea
 }
 
 export function getExpressionScope(
-    info: DiagnosticTemplateInfo, path: TemplateAstPath, includeEvent: boolean): SymbolTable {
+    info: DiagnosticTemplateInfo, path: TemplateAstPath): SymbolTable {
   let result = info.members;
   const references = getReferences(info);
   const variables = getVarDeclarations(info, path);
-  const events = getEventDeclaration(info, includeEvent);
+  const events = getEventDeclaration(info, path);
   if (references.length || variables.length || events.length) {
     const referenceTable = info.query.createSymbolTable(references);
     const variableTable = info.query.createSymbolTable(variables);
@@ -334,11 +333,6 @@ class ExpressionDiagnosticsVisitor extends RecursiveTemplateAstVisitor {
           {span: offsetSpan(span, this.info.offset), kind: ts.DiagnosticCategory.Error, message});
     }
   }
-
-  private reportWarning(message: string, span: Span) {
-    this.diagnostics.push(
-        {span: offsetSpan(span, this.info.offset), kind: ts.DiagnosticCategory.Warning, message});
-  }
 }
 
 function hasTemplateReference(type: CompileTypeMetadata): boolean {
diff --git a/packages/language-service/src/locate_symbol.ts b/packages/language-service/src/locate_symbol.ts
index 36d09f80d7..392c043c52 100644
--- a/packages/language-service/src/locate_symbol.ts
+++ b/packages/language-service/src/locate_symbol.ts
@@ -37,7 +37,7 @@ export function locateSymbol(info: AstResult, position: number): SymbolInfo|unde
       if (attribute) {
         if (inSpan(templatePosition, spanOf(attribute.valueSpan))) {
           const dinfo = diagnosticInfoFromTemplateInfo(info);
-          const scope = getExpressionScope(dinfo, path, inEvent);
+          const scope = getExpressionScope(dinfo, path);
           if (attribute.valueSpan) {
             const result = getExpressionSymbol(scope, ast, templatePosition, info.template.query);
             if (result) {
@@ -113,7 +113,7 @@ export function locateSymbol(info: AstResult, position: number): SymbolInfo|unde
             const expressionPosition = templatePosition - ast.sourceSpan.start.offset;
             if (inSpan(expressionPosition, ast.value.span)) {
               const dinfo = diagnosticInfoFromTemplateInfo(info);
-              const scope = getExpressionScope(dinfo, path, /* includeEvent */ false);
+              const scope = getExpressionScope(dinfo, path);
               const result =
                   getExpressionSymbol(scope, ast.value, templatePosition, info.template.query);
               if (result) {
diff --git a/packages/language-service/test/completions_spec.ts b/packages/language-service/test/completions_spec.ts
index e2795dab59..a0cd9f73d5 100644
--- a/packages/language-service/test/completions_spec.ts
+++ b/packages/language-service/test/completions_spec.ts
@@ -744,6 +744,15 @@ describe('completions', () => {
     const completions = ngLS.getCompletionsAt(TEST_TEMPLATE, marker.start);
     expectContain(completions, CompletionKind.PROPERTY, ['title']);
   });
+
+  describe('$event completions', () => {
+    it('should suggest $event in event bindings', () => {
+      mockHost.override(TEST_TEMPLATE, `<div (click)="myClick(~{cursor});"></div>`);
+      const marker = mockHost.getLocationMarkerFor(TEST_TEMPLATE, 'cursor');
+      const completions = ngLS.getCompletionsAt(TEST_TEMPLATE, marker.start);
+      expectContain(completions, CompletionKind.VARIABLE, ['$event']);
+    });
+  });
 });
 
 function expectContain(