diff --git a/package.json b/package.json
index 63da803a6e1..2c969bee6c4 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "vue",
-  "version": "2.5.16",
+  "version": "2.5.17-beta.0",
   "description": "Reactive, component-oriented view layer for modern web interfaces.",
   "main": "dist/vue.runtime.common.js",
   "module": "dist/vue.runtime.esm.js",
diff --git a/src/shared/util.js b/src/shared/util.js
index e4884734326..1d36aca14f7 100644
--- a/src/shared/util.js
+++ b/src/shared/util.js
@@ -282,15 +282,21 @@ export function looseEqual (a: any, b: any): boolean {
         return a.length === b.length && a.every((e, i) => {
           return looseEqual(e, b[i])
         })
-      } else if (!isArrayA && !isArrayB) {
-        const keysA = Object.keys(a)
-        const keysB = Object.keys(b)
-        return keysA.length === keysB.length && keysA.every(key => {
-          return looseEqual(a[key], b[key])
-        })
       } else {
-        /* istanbul ignore next */
-        return false
+        const isDateA = a instanceof Date
+        const isDateB = b instanceof Date
+        if (isDateA && isDateB) {
+          return a.toUTCString() === b.toUTCString()
+        } else if (!isArrayA && !isArrayB && !isDateA && !isDateB) {
+          const keysA = Object.keys(a)
+          const keysB = Object.keys(b)
+          return keysA.length === keysB.length && keysA.every(key => {
+            return looseEqual(a[key], b[key])
+          })
+        } else {
+          /* istanbul ignore next */
+          return false
+        }
       }
     } catch (e) {
       /* istanbul ignore next */
diff --git a/test/unit/features/directives/model-select.spec.js b/test/unit/features/directives/model-select.spec.js
index c961224972b..2bf5cb4d357 100644
--- a/test/unit/features/directives/model-select.spec.js
+++ b/test/unit/features/directives/model-select.spec.js
@@ -588,4 +588,31 @@ describe('Directive v-model select', () => {
       }).then(done)
     })
   })
+
+  // #7928
+  it('should correctly handle option with date value', done => {
+    const vm = new Vue({
+      data: {
+        dates: [
+          new Date(1520000000000),
+          new Date(1522000000000),
+          new Date(1516000000000)
+        ],
+        selectedDate: null
+      },
+      template:
+        '<div>' +
+          '<select v-model="selectedDate">' +
+            '<option v-for="(date, i) in dates" :key="i" :value="date">' +
+              '{{date}}' +
+            '</option>' +
+          '</select>' +
+        '</div>'
+    }).$mount()
+
+    vm.selectedDate = vm.dates[2]
+    waitForUpdate(() => {
+      expect(vm.$el.firstChild.selectedIndex).toBe(2)
+    }).then(done)
+  })
 })