diff --git a/src/ng/directive/form.js b/src/ng/directive/form.js
index 30a932a46347..5cb8984a2e52 100644
--- a/src/ng/directive/form.js
+++ b/src/ng/directive/form.js
@@ -5,6 +5,7 @@
 var nullFormCtrl = {
   $addControl: noop,
   $$renameControl: nullFormRenameControl,
+  $$updatePristine: noop,
   $removeControl: noop,
   $setValidity: noop,
   $setDirty: noop,
@@ -254,19 +255,39 @@ function FormController(element, attrs, $scope, $animate, $interpolate) {
    *
    * This method can be called to remove the 'ng-dirty' class and set the form to its pristine
    * state (ng-pristine class). This method will also propagate to all the controls contained
-   * in this form.
+   * in this form and to the parent form.
    *
    * Setting a form back to a pristine state is often useful when we want to 'reuse' a form after
    * saving or resetting it.
    */
   form.$setPristine = function() {
+    form.$$setPristineSelf();
+    forEach(controls, function(control) {
+      control.$setPristine();
+    });
+  };
+
+  // Private API: Sets the form to its pristine state.
+  // This method does not affect nested controls.
+  form.$$setPristineSelf = function() {
     $animate.setClass(element, PRISTINE_CLASS, DIRTY_CLASS + ' ' + SUBMITTED_CLASS);
     form.$dirty = false;
     form.$pristine = true;
     form.$submitted = false;
-    forEach(controls, function(control) {
-      control.$setPristine();
+    form.$$parentForm.$$updatePristine();
+  };
+
+  // Private API: update form pristine-ness
+  form.$$updatePristine = function() {
+    var isPristine = controls.every(function(control) {
+      return control.$pristine;
     });
+
+    if (isPristine) {
+      // All the nested controls are already pristine.
+      // Set pristine-ness only for the form itself.
+      form.$$setPristineSelf();
+    }
   };
 
   /**
diff --git a/src/ng/directive/ngModel.js b/src/ng/directive/ngModel.js
index 4683f4e31c4d..d5fb671f7289 100644
--- a/src/ng/directive/ngModel.js
+++ b/src/ng/directive/ngModel.js
@@ -383,6 +383,7 @@ var NgModelController = ['$scope', '$exceptionHandler', '$attrs', '$element', '$
     ctrl.$pristine = true;
     $animate.removeClass($element, DIRTY_CLASS);
     $animate.addClass($element, PRISTINE_CLASS);
+    ctrl.$$parentForm.$$updatePristine();
   };
 
   /**
diff --git a/test/ng/directive/formSpec.js b/test/ng/directive/formSpec.js
index 500be66d25d3..e59057eb7451 100644
--- a/test/ng/directive/formSpec.js
+++ b/test/ng/directive/formSpec.js
@@ -714,9 +714,7 @@ describe('form', function() {
       expect(form.$error.maxlength[0].$name).toBe('childform');
 
       inputController.$setPristine();
-      expect(form.$dirty).toBe(true);
-
-      form.$setPristine();
+      expect(form.$dirty).toBe(false);
 
       // remove child form
       form.$removeControl(childformController);
@@ -1043,6 +1041,163 @@ describe('form', function() {
       expect(nestedInputCtrl.$pristine).toBe(true);
       expect(nestedInputCtrl.$dirty).toBe(false);
     });
+
+    it('should propagate pristine-ness to the parent form', function() {
+      doc = $compile(
+          '<form name="parentForm">' +
+            '<div ng-form name="childForm"></div>' +
+          '</form>')(scope);
+
+      var parentForm = doc,
+          childForm = parentForm.find('div').eq(0),
+          childFormCtrl = scope.childForm;
+
+      childFormCtrl.$setDirty();
+      scope.$apply();
+      expect(parentForm).toBeDirty();
+
+      childFormCtrl.$setPristine();
+      scope.$apply();
+      expect(childForm).toBePristine();
+      expect(parentForm).toBePristine();
+    });
+
+    it('should be pristine if all the nested controls are pristine', function() {
+      doc = $compile(
+          '<form name="form">' +
+            '<div ng-form name="childForm">' +
+              '<input ng-model="inputModel1" name="input1">' +
+              '<input ng-model="inputModel2" name="input2">' +
+            '</div>' +
+          '</form>')(scope);
+
+      var form = doc,
+          childForm = form.find('div').eq(0),
+          input1 = form.find('input').eq(0),
+          input2 = form.find('input').eq(1),
+          inputCtrl1 = input1.controller('ngModel'),
+          inputCtrl2 = input2.controller('ngModel');
+
+      inputCtrl1.$setDirty();
+      inputCtrl1.$setDirty();
+      scope.$apply();
+      expect(form).toBeDirty();
+      expect(childForm).toBeDirty();
+
+      inputCtrl2.$setDirty();
+      inputCtrl2.$setDirty();
+      scope.$apply();
+      expect(form).toBeDirty();
+      expect(childForm).toBeDirty();
+
+      inputCtrl1.$setPristine();
+      scope.$apply();
+      expect(form).toBeDirty();
+      expect(childForm).toBeDirty();
+
+      inputCtrl2.$setPristine();
+      scope.$apply();
+      expect(form).toBePristine();
+      expect(childForm).toBePristine();
+    });
+
+    it('should be pristine if all the nested forms are pristine', function() {
+      doc = $compile(
+          '<form name="outerForm1">' +
+            '<div ng-form name="outerForm2">' +
+              '<div ng-form name="childForm1"></div>' +
+              '<div ng-form name="childForm2"></div>' +
+            '</div>' +
+          '</form>')(scope);
+
+      var outerForm1 = doc,
+          outerForm2 = doc.find('div').eq(0),
+          childFormCtrl1 = scope.childForm1,
+          childFormCtrl2 = scope.childForm2;
+
+      childFormCtrl1.$setDirty();
+      scope.$apply();
+      expect(outerForm1).toBeDirty();
+      expect(outerForm2).toBeDirty();
+      childFormCtrl2.$setDirty();
+      scope.$apply();
+      expect(outerForm1).toBeDirty();
+      expect(outerForm2).toBeDirty();
+
+      childFormCtrl1.$setPristine();
+      scope.$apply();
+      expect(outerForm1).toBeDirty();
+      expect(outerForm2).toBeDirty();
+
+      childFormCtrl2.$setPristine();
+      scope.$apply();
+      expect(outerForm1).toBePristine();
+      expect(outerForm2).toBePristine();
+    });
+
+    it('should properly handle added/removed controls', function() {
+
+      var test = function(input, inputCtrl) {
+        doc = $compile(
+            '<form name="outerForm">' +
+              '<div ng-form name="innerForm"></div>' +
+            '</form>')(scope);
+
+        var outerForm = doc,
+            innerForm = doc.find('div').eq(0),
+            innerFormCtrl = innerForm.controller('form');
+
+        inputCtrl.$setDirty();
+
+        // just add control does not change form pristine-ness
+        innerFormCtrl.$addControl(inputCtrl);
+        scope.$apply();
+        expect(innerForm).toBePristine();
+
+        // change after adding
+        inputCtrl.$setDirty();
+        scope.$apply();
+        expect(innerForm).toBeDirty();
+
+        innerFormCtrl.$removeControl(inputCtrl);
+
+        // removed control does not affect
+        inputCtrl.$setPristine();
+        scope.$apply();
+        expect(innerForm).toBeDirty();
+
+        innerFormCtrl.$addControl(inputCtrl);
+        scope.$apply();
+        expect(innerForm).toBeDirty();
+
+        inputCtrl.$setPristine();
+        scope.$apply();
+        expect(innerForm).toBePristine();
+
+        innerFormCtrl.$removeControl(inputCtrl);
+        inputCtrl.$setPristine();
+        innerFormCtrl.$addControl(inputCtrl);
+        scope.$apply();
+        expect(innerForm).toBePristine();
+
+        inputCtrl.$setDirty();
+        scope.$apply();
+        expect(outerForm).toBeDirty();
+      };
+
+      var input1 = $compile('<input ng-model="inputModel" name="input">')(scope),
+          inputCtrl1 = input1.controller('ngModel'),
+
+          input2 = $compile('<div ng-form name="input"></div>')(scope),
+          inputCtrl2 = input2.controller('form');
+
+      // test for input
+      test(input1, inputCtrl1);
+      dealoc(doc);
+
+      // test for ng-form
+      test(input2, inputCtrl2);
+    });
   });
 
   describe('$setUntouched', function() {
diff --git a/test/ng/directive/ngModelSpec.js b/test/ng/directive/ngModelSpec.js
index e725d495fe00..56d1476a905b 100644
--- a/test/ng/directive/ngModelSpec.js
+++ b/test/ng/directive/ngModelSpec.js
@@ -15,7 +15,8 @@ describe('ngModel', function() {
         $$setPending: jasmine.createSpy('$$setPending'),
         $setValidity: jasmine.createSpy('$setValidity'),
         $setDirty: jasmine.createSpy('$setDirty'),
-        $$clearControlValidity: noop
+        $$clearControlValidity: noop,
+        $$updatePristine: jasmine.createSpy('$$updatePristine')
       };
 
       element = jqLite('<form><input></form>');
@@ -145,6 +146,11 @@ describe('ngModel', function() {
         expect(ctrl.$dirty).toBe(false);
         expect(ctrl.$pristine).toBe(true);
       });
+
+      it('should propagate pristine to the parent form', function() {
+        ctrl.$setPristine();
+        expect(parentFormCtrl.$$updatePristine).toHaveBeenCalledOnce();
+      });
     });
 
     describe('setDirty', function() {