diff --git a/modules/angular2/src/forms/directives.js b/modules/angular2/src/forms/directives.js
index b833937f91..f217177466 100644
--- a/modules/angular2/src/forms/directives.js
+++ b/modules/angular2/src/forms/directives.js
@@ -1,6 +1,7 @@
 import {Template, Component, Decorator, NgElement, Ancestor, onChange} from 'angular2/core';
+import {Optional} from 'angular2/di';
 import {DOM} from 'angular2/src/dom/dom_adapter';
-import {isBlank, isPresent, CONST} from 'angular2/src/facade/lang';
+import {isBlank, isPresent, isString, CONST} from 'angular2/src/facade/lang';
 import {StringMapWrapper, ListWrapper} from 'angular2/src/facade/collection';
 import {ControlGroup, Control} from './model';
 import * as validators from './validators';
@@ -64,7 +65,7 @@ function controlValueAccessorFor(controlType:string):ControlValueAccessor {
   }
 })
 export class ControlDirective {
-  _groupDecorator:ControlGroupDirective;
+  _groupDirective:ControlGroupDirective;
   _el:NgElement;
 
   controlName:string;
@@ -73,8 +74,8 @@ export class ControlDirective {
 
   validator:Function;
 
-  constructor(@Ancestor() groupDecorator:ControlGroupDirective, el:NgElement)  {
-    this._groupDecorator = groupDecorator;
+  constructor(@Ancestor() groupDirective:ControlGroupDirective, el:NgElement)  {
+    this._groupDirective = groupDirective;
     this._el = el;
     this.validator = validators.nullValidator;
   }
@@ -86,7 +87,7 @@ export class ControlDirective {
   }
 
   _initialize() {
-    this._groupDecorator.addDirective(this);
+    this._groupDirective.addDirective(this);
 
     var c = this._control();
     c.validator = validators.compose([c.validator, this.validator]);
@@ -108,7 +109,7 @@ export class ControlDirective {
   }
 
   _control() {
-    return this._groupDecorator.findControl(this.controlName);
+    return this._groupDirective.findControl(this.controlName);
   }
 }
 
@@ -119,16 +120,28 @@ export class ControlDirective {
   }
 })
 export class ControlGroupDirective {
+  _groupDirective:ControlGroupDirective;
+  _controlGroupName:string;
+
   _controlGroup:ControlGroup;
   _directives:List<ControlDirective>;
 
-  constructor() {
+  constructor(@Optional() @Ancestor() groupDirective:ControlGroupDirective) {
     super();
+    this._groupDirective = groupDirective;
     this._directives = ListWrapper.create();
   }
 
-  set controlGroup(controlGroup:ControlGroup) {
-    this._controlGroup = controlGroup;
+  set controlGroup(controlGroup) {
+    if (isString(controlGroup)) {
+      this._controlGroupName = controlGroup;
+    } else {
+      this._controlGroup = controlGroup;
+    }
+    this._updateDomValue();
+  }
+
+  _updateDomValue() {
     ListWrapper.forEach(this._directives, (cd) => cd._updateDomValue());
   }
 
@@ -136,8 +149,16 @@ export class ControlGroupDirective {
     ListWrapper.push(this._directives, c);
   }
 
-  findControl(name:string):Control {
-    return this._controlGroup.controls[name];
+  findControl(name:string):any {
+    return this._getControlGroup().controls[name];
+  }
+
+  _getControlGroup():ControlGroup {
+    if (isPresent(this._controlGroupName)) {
+      return this._groupDirective.findControl(this._controlGroupName)
+    } else {
+      return this._controlGroup;
+    }
   }
 }
 
diff --git a/modules/angular2/src/forms/model.js b/modules/angular2/src/forms/model.js
index 11212e9be4..e6eba381da 100644
--- a/modules/angular2/src/forms/model.js
+++ b/modules/angular2/src/forms/model.js
@@ -16,7 +16,7 @@ export const INVALID = "INVALID";
 //  setParent(parent){}
 //}
 
-export class Control {
+export class AbstractControl {
   _value:any;
   _status:string;
   _errors;
@@ -24,23 +24,17 @@ export class Control {
   _parent:ControlGroup;
   validator:Function;
 
-  constructor(value:any, validator:Function = nullValidator) {
-    this._value = value;
+  constructor(validator:Function = nullValidator) {
     this.validator = validator;
     this._dirty = true;
   }
 
-  updateValue(value:any) {
-    this._value = value;
-    this._dirty = true;
-    this._updateParent();
-  }
-
   get active():boolean {
     return true;
   }
 
   get value() {
+    this._updateIfNeeded();
     return this._value;
   }
 
@@ -64,11 +58,6 @@ export class Control {
   }
 
   _updateIfNeeded() {
-    if (this._dirty) {
-      this._dirty = false;
-      this._errors = this.validator(this);
-      this._status = isPresent(this._errors) ? INVALID : VALID;
-    }
   }
 
   _updateParent() {
@@ -78,41 +67,36 @@ export class Control {
   }
 }
 
-export class ControlGroup {
-  _value:any;
-  _status:string;
-  _errors;
-  _dirty:boolean;
-  validator:Function;
+export class Control extends AbstractControl {
+  constructor(value:any, validator:Function = nullValidator) {
+    super(validator);
+    this._value = value;
+  }
+
+  updateValue(value:any) {
+    this._value = value;
+    this._dirty = true;
+    this._updateParent();
+  }
+
+  _updateIfNeeded() {
+    if (this._dirty) {
+      this._dirty = false;
+      this._errors = this.validator(this);
+      this._status = isPresent(this._errors) ? INVALID : VALID;
+    }
+  }
+}
+
+export class ControlGroup extends AbstractControl {
   controls;
 
   constructor(controls, validator:Function = controlGroupValidator) {
+    super(validator);
     this.controls = controls;
-    this.validator = validator;
-    this._dirty = true;
     this._setParentForControls();
   }
 
-  get value() {
-    this._updateIfNeeded();
-    return this._value;
-  }
-
-  get status() {
-    this._updateIfNeeded();
-    return this._status;
-  }
-
-  get valid() {
-    this._updateIfNeeded();
-    return this._status === VALID;
-  }
-
-  get errors() {
-    this._updateIfNeeded();
-    return this._errors;
-  }
-
   _setParentForControls() {
     StringMapWrapper.forEach(this.controls, (control, name) => {
       control.setParent(this);
@@ -140,6 +124,7 @@ export class ControlGroup {
 
   _controlChanged() {
     this._dirty = true;
+    this._updateParent();
   }
 }
 
diff --git a/modules/angular2/test/forms/integration_spec.js b/modules/angular2/test/forms/integration_spec.js
index 27eca06218..745be3c2e2 100644
--- a/modules/angular2/test/forms/integration_spec.js
+++ b/modules/angular2/test/forms/integration_spec.js
@@ -218,6 +218,54 @@ export function main() {
         });
       });
     });
+    
+    describe("nested forms", () => {
+      it("should init DOM with the given form object", (done) => {
+        var form = new ControlGroup({
+          "nested": new ControlGroup({
+            "login": new Control("value")
+          })
+        });
+        var ctx = new MyComp(form);
+
+        var t = `<div [control-group]="form">
+                    <div control-group="nested">
+                      <input type="text" control="login">
+                    </div>
+                </div>`;
+
+        compile(MyComp, t, ctx, (view) => {
+          var input = queryView(view, "input")
+          expect(input.value).toEqual("value");
+          done();
+        });
+      });
+
+      it("should update the control group values on DOM change", (done) => {
+        var form = new ControlGroup({
+          "nested": new ControlGroup({
+            "login": new Control("value")
+          })
+        });
+        var ctx = new MyComp(form);
+
+        var t = `<div [control-group]="form">
+                    <div control-group="nested">
+                      <input type="text" control="login">
+                    </div>
+                </div>`;
+
+        compile(MyComp, t, ctx, (view) => {
+          var input = queryView(view, "input")
+
+          input.value = "updatedValue";
+          dispatchEvent(input, "change");
+
+          expect(form.value).toEqual({"nested" : {"login" : "updatedValue"}});
+          done();
+        });
+      });
+    });
   });
 }
 
diff --git a/modules/angular2/test/forms/model_spec.js b/modules/angular2/test/forms/model_spec.js
index fa24809a84..65e405e8f9 100644
--- a/modules/angular2/test/forms/model_spec.js
+++ b/modules/angular2/test/forms/model_spec.js
@@ -3,121 +3,137 @@ import {ControlGroup, Control, OptionalControl} from 'angular2/forms';
 import * as validations from 'angular2/forms';
 
 export function main() {
-  describe("Control", () => {
-    describe("validator", () => {
-      it("should run validator with the initial value", () => {
-        var c = new Control("value", validations.required);
-        expect(c.valid).toEqual(true);
-      });
-
-      it("should rerun the validator when the value changes", () => {
-        var c = new Control("value", validations.required);
-        c.updateValue(null);
-        expect(c.valid).toEqual(false);
-      });
-
-      it("should return errors", () => {
-        var c = new Control(null, validations.required);
-        expect(c.errors).toEqual({"required" : true});
-      });
-    });
-  });
-
-  describe("ControlGroup", () => {
-    describe("value", () => {
-      it("should be the reduced value of the child controls", () => {
-        var g = new ControlGroup({
-          "one": new Control("111"),
-          "two": new Control("222")
-        });
-        expect(g.value).toEqual({"one": "111", "two": "222"})
-      });
-
-      it("should be empty when there are no child controls", () => {
-        var g = new ControlGroup({});
-        expect(g.value).toEqual({})
-      });
-    });
-
-    describe("validator", () => {
-      it("should run the validator with the initial value (valid)", () => {
-        var g = new ControlGroup({
-          "one": new Control('value', validations.required)
+  describe("Form Model", () => {
+    describe("Control", () => {
+      describe("validator", () => {
+        it("should run validator with the initial value", () => {
+          var c = new Control("value", validations.required);
+          expect(c.valid).toEqual(true);
         });
 
-        expect(g.valid).toEqual(true);
+        it("should rerun the validator when the value changes", () => {
+          var c = new Control("value", validations.required);
+          c.updateValue(null);
+          expect(c.valid).toEqual(false);
+        });
 
-        expect(g.errors).toEqual(null);
-      });
-
-      it("should run the validator with the initial value (invalid)", () => {
-        var one = new Control(null, validations.required);
-        var g = new ControlGroup({"one": one});
-
-        expect(g.valid).toEqual(false);
-
-        expect(g.errors).toEqual({"required": [one]});
-      });
-
-      it("should run the validator with the value changes", () => {
-        var c = new Control(null, validations.required);
-        var g = new ControlGroup({"one": c});
-
-        c.updateValue("some value");
-
-        expect(g.valid).toEqual(true);
-        expect(g.errors).toEqual(null);
+        it("should return errors", () => {
+          var c = new Control(null, validations.required);
+          expect(c.errors).toEqual({"required" : true});
+        });
       });
     });
+
+    describe("ControlGroup", () => {
+      describe("value", () => {
+        it("should be the reduced value of the child controls", () => {
+          var g = new ControlGroup({
+            "one": new Control("111"),
+            "two": new Control("222")
+          });
+          expect(g.value).toEqual({"one": "111", "two": "222"});
+        });
+
+        it("should be empty when there are no child controls", () => {
+          var g = new ControlGroup({});
+          expect(g.value).toEqual({});
+        });
+
+        it("should support nested groups", () => {
+          var g = new ControlGroup({
+            "one": new Control("111"),
+            "nested": new ControlGroup({
+              "two" : new Control("222")
+            })
+          });
+          expect(g.value).toEqual({"one": "111", "nested" : {"two": "222"}});
+
+          g.controls["nested"].controls["two"].updateValue("333");
+
+          expect(g.value).toEqual({"one": "111", "nested" : {"two": "333"}});
+        });
+      });
+
+      describe("validator", () => {
+        it("should run the validator with the initial value (valid)", () => {
+          var g = new ControlGroup({
+            "one": new Control('value', validations.required)
+          });
+
+          expect(g.valid).toEqual(true);
+
+          expect(g.errors).toEqual(null);
+        });
+
+        it("should run the validator with the initial value (invalid)", () => {
+          var one = new Control(null, validations.required);
+          var g = new ControlGroup({"one": one});
+
+          expect(g.valid).toEqual(false);
+
+          expect(g.errors).toEqual({"required": [one]});
+        });
+
+        it("should run the validator with the value changes", () => {
+          var c = new Control(null, validations.required);
+          var g = new ControlGroup({"one": c});
+
+          c.updateValue("some value");
+
+          expect(g.valid).toEqual(true);
+          expect(g.errors).toEqual(null);
+        });
+      });
+    });
+
+    describe("OptionalControl", () => {
+      it("should read properties from the wrapped component", () => {
+        var wrapperControl = new Control("value", validations.required);
+        var c = new OptionalControl(wrapperControl, true);
+
+        expect(c.value).toEqual('value');
+        expect(c.status).toEqual('VALID');
+        expect(c.validator).toEqual(validations.required);
+      });
+
+      it("should update the wrapped component", () => {
+        var wrappedControl = new Control("value");
+        var c = new OptionalControl(wrappedControl, true);
+
+        c.validator = validations.required;
+        c.updateValue("newValue");
+
+
+        expect(wrappedControl.validator).toEqual(validations.required);
+        expect(wrappedControl.value).toEqual('newValue');
+      });
+
+      it("should not include an inactive component into the group value", () => {
+        var group = new ControlGroup({
+          "required" : new Control("requiredValue"),
+          "optional" : new OptionalControl(new Control("optionalValue"), false)
+        });
+
+        expect(group.value).toEqual({"required" : "requiredValue"});
+
+        group.controls["optional"].cond = true;
+
+        expect(group.value).toEqual({"required" : "requiredValue", "optional" : "optionalValue"});
+      });
+
+      it("should not run validations on an inactive component", () => {
+        var group = new ControlGroup({
+          "required" : new Control("requiredValue", validations.required),
+          "optional" : new OptionalControl(new Control("", validations.required), false)
+        });
+
+        expect(group.valid).toEqual(true);
+
+        group.controls["optional"].cond = true;
+
+        expect(group.valid).toEqual(false);
+      });
+    });
+
   });
-
-  describe("OptionalControl", () => {
-    it("should read properties from the wrapped component", () => {
-      var wrapperControl = new Control("value", validations.required);
-      var c = new OptionalControl(wrapperControl, true);
-
-      expect(c.value).toEqual('value');
-      expect(c.status).toEqual('VALID');
-      expect(c.validator).toEqual(validations.required);
-    });
-
-    it("should update the wrapped component", () => {
-      var wrappedControl = new Control("value");
-      var c = new OptionalControl(wrappedControl, true);
-
-      c.validator = validations.required;
-      c.updateValue("newValue");
-
-
-      expect(wrappedControl.validator).toEqual(validations.required);
-      expect(wrappedControl.value).toEqual('newValue');
-    });
-
-    it("should not include an inactive component into the group value", () => {
-      var group = new ControlGroup({
-        "required" : new Control("requiredValue"),
-        "optional" : new OptionalControl(new Control("optionalValue"), false)
-      });
-
-      expect(group.value).toEqual({"required" : "requiredValue"});
-
-      group.controls["optional"].cond = true;
-
-      expect(group.value).toEqual({"required" : "requiredValue", "optional" : "optionalValue"});
-    });
-
-    it("should not run validations on an inactive component", () => {
-      var group = new ControlGroup({
-        "required" : new Control("requiredValue", validations.required),
-        "optional" : new OptionalControl(new Control("", validations.required), false)
-      });
-
-      expect(group.valid).toEqual(true);
-
-      group.controls["optional"].cond = true;
-
-      expect(group.valid).toEqual(false);
-    });
-  });
-
 }
\ No newline at end of file