diff --git a/src/stateDirectives.js b/src/stateDirectives.js
index 09991030c..3432f72a2 100644
--- a/src/stateDirectives.js
+++ b/src/stateDirectives.js
@@ -78,7 +78,7 @@ function stateContext(el) {
  */
 $StateRefDirective.$inject = ['$state', '$timeout'];
 function $StateRefDirective($state, $timeout) {
-  var allowedOptions = ['location', 'inherit', 'reload', 'absolute'];
+  var allowedOptions = ['location', 'inherit', 'reload', 'absolute', 'notify'];
 
   return {
     restrict: 'A',
diff --git a/test/stateDirectivesSpec.js b/test/stateDirectivesSpec.js
index c9b621b7d..5c23fb53e 100644
--- a/test/stateDirectivesSpec.js
+++ b/test/stateDirectivesSpec.js
@@ -386,7 +386,7 @@ describe('uiStateRef', function() {
 
       expect(transitionOptions.reload).toEqual(true);
       expect(transitionOptions.absolute).toEqual(true);
-      expect(transitionOptions.notify).toBeUndefined();
+      expect(transitionOptions.notify).toEqual(true);
     }));
   });
 });