diff --git a/src/stateDirectives.js b/src/stateDirectives.js
index b39f7b6c8..83234a60e 100644
--- a/src/stateDirectives.js
+++ b/src/stateDirectives.js
@@ -33,7 +33,7 @@ function clickHook(el, $state, $timeout, type, current) {
     if (!(button > 1 || e.ctrlKey || e.metaKey || e.shiftKey || el.attr('target'))) {
       // HACK: This is to allow ng-clicks to be processed before the transition is initiated:
       var transition = $timeout(function() {
-        $state.go(target.state, target.params, target.options);
+          $state.go(target.state === '.' ? $state.current.name : target.state, target.params, target.options);
       });
       e.preventDefault();
 
@@ -128,7 +128,7 @@ function $StateRefDirective($state, $timeout) {
 
       var update = function(val) {
         if (val) def.params = angular.copy(val);
-        def.href = $state.href(ref.state, def.params, def.options);
+        def.href = $state.href(ref.state === '.' ? $state.current.name : ref.state, def.params, def.options);
 
         if (active) active.$$addStateInfo(ref.state, def.params);
         if (def.href !== null) attrs.$set(type.attr, def.href);
@@ -139,6 +139,13 @@ function $StateRefDirective($state, $timeout) {
         def.params = angular.copy(scope.$eval(ref.paramExpr));
       }
       update();
+        if (ref.state === '.') {
+            scope.$on('$stateChangeSuccess', function (event, toState, toParams, fromState) {
+                if (fromState.name !== toState.name) {
+                    update();
+                }
+            });
+        }
 
       if (!type.clickable) return;
       element.bind("click", clickHook(element, $state, $timeout, type, function() { return def; }));
diff --git a/test/stateDirectivesSpec.js b/test/stateDirectivesSpec.js
index a9c0f120f..cc8478e94 100644
--- a/test/stateDirectivesSpec.js
+++ b/test/stateDirectivesSpec.js
@@ -1,15 +1,15 @@
 describe('uiStateRef', function() {
 
-  var timeoutFlush, el, el2, template, scope, document, _locationProvider;
+  var timeoutFlush, el, el2, el3, template, scope, document, _locationProvider;
 
   beforeEach(module('ui.router'));
 
   beforeEach(module(function($stateProvider, $locationProvider) {
     _locationProvider = $locationProvider;
     $stateProvider.state('top', {
-      url: ''
+      url: '?param'
     }).state('contacts', {
-      url: '/contacts',
+      url: '/contacts?param',
       template: '<a ui-sref=".item({ id: 5 })" class="item">Person</a> <ui-view></ui-view>'
     }).state('contacts.item', {
       url: '/{id:int}',
@@ -79,12 +79,14 @@ describe('uiStateRef', function() {
   function buildDOM($rootScope, $compile, $timeout) {
     el = angular.element('<a ui-sref="contacts.item.detail({ id: contact.id })">Details</a>');
     el2 = angular.element('<a ui-sref="top">Top</a>');
+    el3 = angular.element('<a ui-sref=".({param: 1})">Param 1</a>');
     scope = $rootScope;
     scope.contact = { id: 5 };
     scope.$apply();
 
     $compile(el)(scope);
     $compile(el2)(scope);
+    $compile(el3)(scope);
     scope.$digest();
 
     timeoutFlush = function () {
@@ -103,6 +105,7 @@ describe('uiStateRef', function() {
     it('should generate the correct href', function() {
       expect(el.attr('href')).toBe('#/contacts/5');
       expect(el2.attr('href')).toBe('#');
+      expect(el3.attr('href')).toBe('#?param=1');
     });
 
     it('should update the href when parameters change', function() {
@@ -289,6 +292,16 @@ describe('uiStateRef', function() {
       expect($state.current.name).toEqual('top');
       expect($stateParams).toEqualData({});
     }));
+
+    it('should not transition state and change state params on "." pesudostate click', inject(function($state, $stateParams, $q){
+        triggerClick(el);
+        timeoutFlush();
+        triggerClick(el3);
+        timeoutFlush();
+        $q.flush();
+        expect($state.current.name).toEqual('contacts.item.detail');
+        expect($stateParams).toEqualData({param: '1', id: 5});
+    }));
   });
 
   describe('links with dynamic state definitions', function () {