diff --git a/angular-contenteditable.js b/angular-contenteditable.js
index 49b59ee..ff05f1b 100644
--- a/angular-contenteditable.js
+++ b/angular-contenteditable.js
@@ -5,30 +5,34 @@
  */
 
 angular.module('contenteditable', [])
-  .directive('contenteditable', ['$timeout', function($timeout) { return {
-    restrict: 'A',
-    require: '?ngModel',
-    link: function(scope, element, attrs, ngModel) {
-      // don't do anything unless this is actually bound to a model
-      if (!ngModel) {
-        return
-      }
+  .directive('contenteditable', ['$timeout', function($timeout) {
+    return {
+      restrict: 'A',
+      require: '?ngModel',
+      link: function(scope, element, attrs, ngModel) {
+        // don't do anything unless this is actually bound to a model
+        if (!ngModel) {
+          return
+        }
 
-      // options
-      var opts = {}
-      angular.forEach([
-        'stripBr',
-        'noLineBreaks',
-        'selectNonEditable',
-        'moveCaretToEndOnChange',
-      ], function(opt) {
-        var o = attrs[opt]
-        opts[opt] = o && o !== 'false'
-      })
+        // options
+        var opts = {}
+        angular.forEach([
+          'stripBr',
+          'noLineBreaks',
+          'selectNonEditable',
+          'moveCaretToEndOnChange',
+          'placeholder'
+        ], function(opt) {
+          var o = attrs[opt]
+          opts[opt] = o && o !== 'false'
+        })
+        if (opts.placeholder) {
+          opts.placeholder = attrs.placeholder || 'Empty'
+        }
 
-      // view -> model
-      element.bind('input', function(e) {
-        scope.$apply(function() {
+        // view -> model
+        function readViewValue() {
           var html, html2, rerender
           html = element.html()
           rerender = false
@@ -44,55 +48,91 @@ angular.module('contenteditable', [])
           }
           ngModel.$setViewValue(html)
           if (rerender) {
-            ngModel.$render()
+            ngModel.$render(true)
           }
-          if (html === '') {
-            // the cursor disappears if the contents is empty
-            // so we need to refocus
-            $timeout(function(){
-              element[0].blur()
-              element[0].focus()
-            })
-          }
-        })
-      })
+          return html;
+        }
 
-      // model -> view
-      var oldRender = ngModel.$render
-      ngModel.$render = function() {
-        var el, el2, range, sel
-        if (!!oldRender) {
-          oldRender()
+        element.bind('input', function(e) {
+          scope.$apply(function() {
+            var empty = '' === readViewValue()
+            if (empty) {
+              // the cursor disappears if the contents is empty
+              // so we need to keep focus
+              selectAll(element[0])
+            } else if (opts.placeholder) {
+              element.removeClass('placeholder')
+            }
+          })
+        })
+        if (opts.placeholder) {
+          element.bind('blur', function (e) {
+            scope.$apply(function () {
+              if (readViewValue() === '') {
+                element.html(opts.placeholder)
+                element.addClass('placeholder')
+              }
+            });
+          })
         }
-        element.html(ngModel.$viewValue || '')
-        if (opts.moveCaretToEndOnChange) {
-          el = element[0]
-          range = document.createRange()
-          sel = window.getSelection()
-          if (el.childNodes.length > 0) {
-            el2 = el.childNodes[el.childNodes.length - 1]
-            range.setStartAfter(el2)
-          } else {
-            range.setStartAfter(el)
+
+        // model -> view
+        var oldRender = ngModel.$render
+        ngModel.$render = function(ignorePlaceholder) {
+          var el, el2, range, sel
+          if (!!oldRender) {
+            oldRender()
           }
-          range.collapse(true)
-          sel.removeAllRanges()
-          sel.addRange(range)
-        }
-      }
-      if (opts.selectNonEditable) {
-        element.bind('click', function(e) {
-          var range, sel, target
-          target = e.toElement
-          if (target !== this && angular.element(target).attr('contenteditable') === 'false') {
+          var value = ngModel.$viewValue || '';
+          if (!ignorePlaceholder && opts.placeholder) {
+            element.toggleClass('placeholder', value === '');
+            if (value === '') {
+              value = opts.placeholder;
+            }
+          }
+          element.html(value);
+
+          if (opts.moveCaretToEndOnChange) {
+            el = element[0]
             range = document.createRange()
             sel = window.getSelection()
-            range.setStartBefore(target)
-            range.setEndAfter(target)
+            if (el.childNodes.length > 0) {
+              el2 = el.childNodes[el.childNodes.length - 1]
+              range.setStartAfter(el2)
+            } else {
+              range.setStartAfter(el)
+            }
+            range.collapse(true)
             sel.removeAllRanges()
             sel.addRange(range)
           }
-        })
+        }
+        if (opts.placeholder) {
+          element.bind('focus', function () {
+            if (!ngModel.$viewValue) {
+              element.html('')
+              selectAll(element[0])
+            }
+          })
+        }
+
+        if (opts.selectNonEditable) {
+          element.bind('click', function(e) {
+            var range, sel, target
+            target = e.toElement
+            if (target !== this && angular.element(target).attr('contenteditable') === 'false') {
+              selectAll(target)
+            }
+          })
+        }
       }
     }
-  }}]);
+
+    function selectAll(node) {
+      var range = document.createRange()
+      range.selectNodeContents(node)
+      var sel = window.getSelection()
+      sel.removeAllRanges()
+      sel.addRange(range)
+    }
+  }]);
diff --git a/test/fixtures/no-line-breaks.html b/test/fixtures/no-line-breaks.html
index d200c05..5d3edbe 100644
--- a/test/fixtures/no-line-breaks.html
+++ b/test/fixtures/no-line-breaks.html
@@ -14,8 +14,6 @@
   window.scope = $scope
 })
 .controller('Ctrl2', function($scope) {})
-
-angular.bootstrap(document, ['simple'])
     </script>
   </head>
   <body>
diff --git a/test/fixtures/placeholder.html b/test/fixtures/placeholder.html
new file mode 100644
index 0000000..9511159
--- /dev/null
+++ b/test/fixtures/placeholder.html
@@ -0,0 +1,22 @@
+<!doctype html>
+<html ng-app="test">
+<head>
+  <meta charset="utf-8">
+  <script src="https://ajax.googleapis.com/ajax/libs/angularjs/1.3.14/angular.min.js"></script>
+  <script src="../../angular-contenteditable.js"></script>
+  <script type="text/javascript">
+    angular.module('test', ['contenteditable'])
+    .controller('AppController', function($scope) {
+      $scope.input = '';
+    });
+  </script>
+  <style type="text/css">
+    [contenteditable].placeholder { color: lightgrey; }
+  </style>
+</head>
+<body ng-controller="AppController">
+  <div contenteditable ng-model="input" no-line-breaks="true" placeholder="Write something"></div>
+  <br />
+  <textarea ng-model="input"></textarea>
+</body>
+</html>
diff --git a/test/fixtures/select-non-editable.html b/test/fixtures/select-non-editable.html
index 78090ec..9e40f8a 100644
--- a/test/fixtures/select-non-editable.html
+++ b/test/fixtures/select-non-editable.html
@@ -13,8 +13,6 @@
   $scope.model = "Initial stuff <b>with bold</b> <em>and italic</em> and <span contenteditable='false'>non-editable</span> stuff"
 })
 .controller('Ctrl2', function($scope) {})
-
-angular.bootstrap(document, ['simple'])
     </script>
   </head>
   <body>
diff --git a/test/fixtures/simple.html b/test/fixtures/simple.html
index 1b3d0bf..43172b0 100644
--- a/test/fixtures/simple.html
+++ b/test/fixtures/simple.html
@@ -9,7 +9,6 @@
   .controller('Ctrl', function($scope) {
     $scope.model = "Initial stuff <b>with bold</b> <em>and italic</em> yay"
   })
-angular.bootstrap(document, ['simple'])
     </script>
   </head>
   <body>
diff --git a/test/fixtures/strip-br.html b/test/fixtures/strip-br.html
index 0081e15..0282f75 100644
--- a/test/fixtures/strip-br.html
+++ b/test/fixtures/strip-br.html
@@ -13,8 +13,6 @@
   $scope.model = "Initial stuff <b>with bold</b> <em>and italic</em> yay"
 })
 .controller('Ctrl2', function($scope) {})
-
-angular.bootstrap(document, ['simple'])
     </script>
   </head>
   <body>