diff --git a/examples/material_gallery/lib/main.dart b/examples/material_gallery/lib/main.dart
index 01d1e5f70c..86bc52dadf 100644
--- a/examples/material_gallery/lib/main.dart
+++ b/examples/material_gallery/lib/main.dart
@@ -46,14 +46,23 @@ class GallerySection extends StatelessComponent {
       brightness: ThemeBrightness.light,
       primarySwatch: colors
     );
+    final appBarHeight = 200.0;
+    final scrollableKey = new ValueKey<String>(title); // assume section titles differ
     Navigator.push(context, new MaterialPageRoute(
       builder: (BuildContext context) {
         return new Theme(
           data: theme,
           child: new Scaffold(
-            toolBar: new ToolBar(center: new Text(title)),
+            appBarHeight: appBarHeight,
+            appBarBehavior: AppBarBehavior.scroll,
+            scrollableKey: scrollableKey,
+            toolBar: new ToolBar(
+              flexibleSpace: (BuildContext context) => new FlexibleSpaceBar(title: new Text(title))
+            ),
             body: new Material(
               child: new MaterialList(
+                scrollableKey: scrollableKey,
+                scrollablePadding: new EdgeDims.only(top: appBarHeight),
                 type: MaterialListType.oneLine,
                 children: (demos ?? <GalleryDemo>[]).map((GalleryDemo demo) {
                   return new ListItem(
@@ -116,14 +125,18 @@ class GalleryHome extends StatelessComponent {
 
   Widget build(BuildContext context) {
     return new Scaffold(
+      appBarHeight: 128.0,
       toolBar: new ToolBar(
-        bottom: new Container(
-          padding: const EdgeDims.only(left: 16.0, bottom: 24.0),
-          child: new Align(
-            alignment: const FractionalOffset(0.0, 1.0),
-            child: new Text('Flutter Gallery', style: Typography.white.headline)
-          )
-        )
+        flexibleSpace: (BuildContext context) {
+          return new Container(
+            padding: const EdgeDims.only(left: 16.0, bottom: 24.0),
+            height: 128.0,
+            child: new Align(
+              alignment: const FractionalOffset(0.0, 1.0),
+              child: new Text('Flutter Gallery', style: Typography.white.headline)
+            )
+          );
+        }
       ),
       body: new Padding(
         padding: const EdgeDims.all(4.0),
diff --git a/examples/widgets/card_collection.dart b/examples/widgets/card_collection.dart
index 34de081e83..3193303d5a 100644
--- a/examples/widgets/card_collection.dart
+++ b/examples/widgets/card_collection.dart
@@ -272,18 +272,21 @@ class CardCollectionState extends State<CardCollection> {
     );
   }
 
-  Widget _buildToolBar() {
+  Widget _buildToolBar(BuildContext context) {
     return new ToolBar(
       right: <Widget>[
         new Text(_dismissDirectionText(_dismissDirection))
       ],
-      bottom: new Padding(
-        padding: const EdgeDims.only(left: 72.0),
-        child: new Align(
-          alignment: const FractionalOffset(0.0, 0.5),
-          child: new Text('Swipe Away: ${_cardModels.length}')
-        )
-      )
+      flexibleSpace: (_) {
+        return new Container(
+          padding: const EdgeDims.only(left: 72.0),
+          height: 128.0,
+          child: new Align(
+            alignment: const FractionalOffset(0.0, 0.75),
+            child: new Text('Swipe Away: ${_cardModels.length}', style: Theme.of(context).primaryTextTheme.title)
+          )
+        );
+      }
     );
   }
 
@@ -456,7 +459,7 @@ class CardCollectionState extends State<CardCollection> {
         primarySwatch: _primaryColor
       ),
       child: new Scaffold(
-        toolBar: _buildToolBar(),
+        toolBar: _buildToolBar(context),
         drawer: _buildDrawer(),
         body: body
       )
diff --git a/examples/widgets/flutter.yaml b/examples/widgets/flutter.yaml
index 773cebdad7..9f2d5cc9d2 100644
--- a/examples/widgets/flutter.yaml
+++ b/examples/widgets/flutter.yaml
@@ -1,6 +1,7 @@
 name: widgets
 assets:
   - assets/starcircle.png
+  - assets/ali_connors.png
 material-design-icons:
   - name: action/account_circle
   - name: action/alarm
diff --git a/packages/flutter/lib/material.dart b/packages/flutter/lib/material.dart
index 74c1b588e4..2183130008 100644
--- a/packages/flutter/lib/material.dart
+++ b/packages/flutter/lib/material.dart
@@ -23,6 +23,7 @@ export 'src/material/drawer_header.dart';
 export 'src/material/drawer_item.dart';
 export 'src/material/dropdown.dart';
 export 'src/material/flat_button.dart';
+export 'src/material/flexible_space_bar.dart';
 export 'src/material/floating_action_button.dart';
 export 'src/material/icon.dart';
 export 'src/material/icon_button.dart';
diff --git a/packages/flutter/lib/src/material/constants.dart b/packages/flutter/lib/src/material/constants.dart
index 16c5a454aa..3ad1a04d6d 100644
--- a/packages/flutter/lib/src/material/constants.dart
+++ b/packages/flutter/lib/src/material/constants.dart
@@ -15,6 +15,10 @@ const double kStatusBarHeight = 50.0;
 const double kToolBarHeight = 56.0;
 const double kExtendedToolBarHeight = 128.0;
 
+const double kTextTabBarHeight = 48.0;
+const double kIconTabBarHeight = 48.0;
+const double kTextandIconTabBarHeight = 72.0;
+
 // https://www.google.com/design/spec/layout/metrics-keylines.html#metrics-keylines-keylines-spacing
 const double kListTitleHeight = 72.0;
 const double kListSubtitleHeight = 48.0;
diff --git a/packages/flutter/lib/src/material/debug.dart b/packages/flutter/lib/src/material/debug.dart
index 3c6d8ec541..45e05c2320 100644
--- a/packages/flutter/lib/src/material/debug.dart
+++ b/packages/flutter/lib/src/material/debug.dart
@@ -5,6 +5,7 @@
 import 'package:flutter/widgets.dart';
 
 import 'material.dart';
+import 'scaffold.dart';
 
 bool debugCheckHasMaterial(BuildContext context) {
   assert(() {
@@ -19,3 +20,18 @@ bool debugCheckHasMaterial(BuildContext context) {
   });
   return true;
 }
+
+
+bool debugCheckHasScaffold(BuildContext context) {
+  assert(() {
+    if (Scaffold.of(context) == null) {
+      Element element = context;
+      throw new WidgetError(
+        'Missing Scaffold widget.',
+        '${context.widget} needs to be placed inside the body of a Scaffold widget. Ownership chain:\n${element.debugGetOwnershipChain(10)}'
+      );
+    }
+    return true;
+  });
+  return true;
+}
diff --git a/packages/flutter/lib/src/material/flexible_space_bar.dart b/packages/flutter/lib/src/material/flexible_space_bar.dart
new file mode 100644
index 0000000000..85cdeccc95
--- /dev/null
+++ b/packages/flutter/lib/src/material/flexible_space_bar.dart
@@ -0,0 +1,94 @@
+// Copyright 2016 The Chromium Authors. All rights reserved.
+// Use of this source code is governed by a BSD-style license that can be
+// found in the LICENSE file.
+
+import 'dart:math' as math;
+
+import 'package:flutter/animation.dart';
+import 'package:flutter/widgets.dart';
+
+import 'debug.dart';
+import 'constants.dart';
+import 'scaffold.dart';
+import 'theme.dart';
+
+class FlexibleSpaceBar extends StatefulComponent {
+  FlexibleSpaceBar({ Key key, this.title, this.image }) : super(key: key);
+
+  final Widget title;
+  final Widget image;
+
+  _FlexibleSpaceBarState createState() => new _FlexibleSpaceBarState();
+}
+
+class _FlexibleSpaceBarState extends State<FlexibleSpaceBar> {
+
+  Widget build(BuildContext context) {
+    assert(debugCheckHasScaffold(context));
+    final double appBarHeight = Scaffold.of(context).appBarHeight;
+    final Animation<double> animation = Scaffold.of(context).appBarAnimation;
+    final EdgeDims toolBarPadding = MediaQuery.of(context)?.padding ?? EdgeDims.zero;
+    final double toolBarHeight = kToolBarHeight + toolBarPadding.top;
+    final List<Widget> children = <Widget>[];
+
+    // background image
+    if (config.image != null) {
+      final double fadeStart = (appBarHeight - toolBarHeight * 2.0) / appBarHeight;
+      final double fadeEnd = (appBarHeight - toolBarHeight) / appBarHeight;
+      final CurvedAnimation opacityCurve = new CurvedAnimation(
+        parent: animation,
+        curve: new Interval(math.max(0.0, fadeStart), math.min(fadeEnd, 1.0))
+      );
+      final double parallax = new Tween<double>(begin: 0.0, end: appBarHeight / 4.0).evaluate(animation);
+      children.add(new Positioned(
+        top: -parallax,
+        left: 0.0,
+        right: 0.0,
+        child: new Opacity(
+          opacity: new Tween<double>(begin: 1.0, end: 0.0).evaluate(opacityCurve),
+          child: config.image
+        )
+       ));
+    }
+
+    // title
+    if (config.title != null) {
+      final double fadeStart = (appBarHeight - toolBarHeight) / appBarHeight;
+      final double fadeEnd = (appBarHeight - toolBarHeight / 2.0) / appBarHeight;
+      final CurvedAnimation opacityCurve = new CurvedAnimation(
+        parent: animation,
+        curve: new Interval(fadeStart, fadeEnd)
+      );
+      TextStyle titleStyle = Theme.of(context).primaryTextTheme.title;
+      titleStyle = titleStyle.copyWith(
+        color: titleStyle.color.withAlpha(new Tween<double>(begin: 255.0, end: 0.0).evaluate(opacityCurve).toInt())
+      );
+      final double yAlignStart = 1.0;
+      final double yAlignEnd = (toolBarPadding.top + kToolBarHeight / 2.0) / toolBarHeight;
+      final double scaleAndAlignEnd = (appBarHeight - toolBarHeight) / appBarHeight;
+      final CurvedAnimation scaleAndAlignCurve = new CurvedAnimation(
+        parent: animation,
+        curve: new Interval(0.0, scaleAndAlignEnd)
+      );
+      children.add(new Padding(
+        padding: const EdgeDims.only(left: 72.0, bottom: 14.0),
+        child: new Align(
+          alignment: new Tween<FractionalOffset>(
+            begin: new FractionalOffset(0.0, yAlignStart),
+            end: new FractionalOffset(0.0, yAlignEnd)
+          ).evaluate(scaleAndAlignCurve),
+          child: new ScaleTransition(
+            alignment: const FractionalOffset(0.0, 1.0),
+            scale: new Tween<double>(begin: 1.5, end: 1.0).animate(scaleAndAlignCurve),
+            child: new Align(
+              alignment: new FractionalOffset(0.0, 1.0),
+              child: new DefaultTextStyle(style: titleStyle, child: config.title)
+            )
+          )
+        )
+      ));
+    }
+
+    return new ClipRect(child: new Stack(children: children));
+  }
+}
diff --git a/packages/flutter/lib/src/material/icon.dart b/packages/flutter/lib/src/material/icon.dart
index f9e8fd0664..9cbcd3e657 100644
--- a/packages/flutter/lib/src/material/icon.dart
+++ b/packages/flutter/lib/src/material/icon.dart
@@ -4,9 +4,10 @@
 
 import 'package:flutter/widgets.dart';
 
-import 'theme.dart';
+import 'colors.dart';
 import 'icon_theme.dart';
 import 'icon_theme_data.dart';
+import 'theme.dart';
 
 enum IconSize {
   s18,
@@ -39,7 +40,7 @@ class Icon extends StatelessComponent {
   final IconThemeColor colorTheme;
   final Color color;
 
-  String _getColorSuffix(BuildContext context) {
+  IconThemeColor _getIconThemeColor(BuildContext context) {
     IconThemeColor iconThemeColor = colorTheme;
     if (iconThemeColor == null) {
       IconThemeData iconThemeData = IconTheme.of(context);
@@ -49,12 +50,7 @@ class Icon extends StatelessComponent {
       ThemeBrightness themeBrightness = Theme.of(context).brightness;
       iconThemeColor = themeBrightness == ThemeBrightness.dark ? IconThemeColor.white : IconThemeColor.black;
     }
-    switch(iconThemeColor) {
-      case IconThemeColor.white:
-        return "white";
-      case IconThemeColor.black:
-        return "black";
-    }
+    return iconThemeColor;
   }
 
   Widget build(BuildContext context) {
@@ -65,13 +61,41 @@ class Icon extends StatelessComponent {
       category = parts[0];
       subtype = parts[1];
     }
-    String colorSuffix = _getColorSuffix(context);
-    int iconSize = _kIconSize[size];
+    final IconThemeColor iconThemeColor = _getIconThemeColor(context);
+    final int iconSize = _kIconSize[size];
+
+    String colorSuffix;
+    switch(iconThemeColor) {
+      case IconThemeColor.black:
+        colorSuffix = "black";
+        break;
+      case IconThemeColor.white:
+        colorSuffix = "white";
+        break;
+    }
+
+    Color iconColor = color;
+    final int iconAlpha = (255.0 * (IconTheme.of(context)?.clampedOpacity ?? 1.0)).round();
+    if (iconAlpha != 255) {
+      if (color != null)
+        iconColor = color.withAlpha(iconAlpha);
+      else {
+        switch(iconThemeColor) {
+          case IconThemeColor.black:
+            iconColor = Colors.black.withAlpha(iconAlpha);
+            break;
+          case IconThemeColor.white:
+            iconColor = Colors.white.withAlpha(iconAlpha);
+            break;
+        }
+      }
+    }
+
     return new AssetImage(
       name: '$category/ic_${subtype}_${colorSuffix}_${iconSize}dp.png',
       width: iconSize.toDouble(),
       height: iconSize.toDouble(),
-      color: color
+      color: iconColor
     );
   }
 
diff --git a/packages/flutter/lib/src/material/icon_theme_data.dart b/packages/flutter/lib/src/material/icon_theme_data.dart
index 6fea8105ca..46dffa1519 100644
--- a/packages/flutter/lib/src/material/icon_theme_data.dart
+++ b/packages/flutter/lib/src/material/icon_theme_data.dart
@@ -2,15 +2,22 @@
 // Use of this source code is governed by a BSD-style license that can be
 // found in the LICENSE file.
 
+import 'dart:ui' as ui;
+
 enum IconThemeColor { white, black }
 
 class IconThemeData {
-  const IconThemeData({ this.color });
+  const IconThemeData({ this.color, this.opacity });
+
   final IconThemeColor color;
+  final double opacity;
+
+  double get clampedOpacity => (opacity ?? 1.0).clamp(0.0, 1.0);
 
   static IconThemeData lerp(IconThemeData begin, IconThemeData end, double t) {
     return new IconThemeData(
-      color: t < 0.5 ? begin.color : end.color
+      color: t < 0.5 ? begin.color : end.color,
+      opacity: ui.lerpDouble(begin.clampedOpacity, end.clampedOpacity, t)
     );
   }
 
@@ -18,10 +25,10 @@ class IconThemeData {
     if (other is! IconThemeData)
       return false;
     final IconThemeData typedOther = other;
-    return color == typedOther.color;
+    return color == typedOther.color && opacity == typedOther.opacity;
   }
 
-  int get hashCode => color.hashCode;
+  int get hashCode => ui.hashValues(color, opacity);
 
   String toString() => '$color';
 }
diff --git a/packages/flutter/lib/src/material/material_list.dart b/packages/flutter/lib/src/material/material_list.dart
index aa5434cf5a..3eaedbed21 100644
--- a/packages/flutter/lib/src/material/material_list.dart
+++ b/packages/flutter/lib/src/material/material_list.dart
@@ -27,13 +27,17 @@ class MaterialList extends StatefulComponent {
     this.initialScrollOffset,
     this.onScroll,
     this.type: MaterialListType.twoLine,
-    this.children
+    this.children,
+    this.scrollablePadding: EdgeDims.zero,
+    this.scrollableKey
   }) : super(key: key);
 
   final double initialScrollOffset;
   final ScrollListener onScroll;
   final MaterialListType type;
   final Iterable<Widget> children;
+  final EdgeDims scrollablePadding;
+  final Key scrollableKey;
 
   _MaterialListState createState() => new _MaterialListState();
 }
@@ -43,11 +47,12 @@ class _MaterialListState extends State<MaterialList> {
 
   Widget build(BuildContext context) {
     return new ScrollableList(
+      key: config.scrollableKey,
       initialScrollOffset: config.initialScrollOffset,
       scrollDirection: Axis.vertical,
       onScroll: config.onScroll,
       itemExtent: kListItemExtent[config.type],
-      padding: const EdgeDims.symmetric(vertical: 8.0),
+      padding: const EdgeDims.symmetric(vertical: 8.0) + config.scrollablePadding,
       scrollableListPainter: _scrollbarPainter,
       children: config.children
     );
diff --git a/packages/flutter/lib/src/material/scaffold.dart b/packages/flutter/lib/src/material/scaffold.dart
index 8a0356ca15..40bb8e3a05 100644
--- a/packages/flutter/lib/src/material/scaffold.dart
+++ b/packages/flutter/lib/src/material/scaffold.dart
@@ -11,6 +11,7 @@ import 'package:flutter/rendering.dart';
 import 'package:flutter/widgets.dart';
 
 import 'bottom_sheet.dart';
+import 'constants.dart';
 import 'drawer.dart';
 import 'icon_button.dart';
 import 'material.dart';
@@ -20,6 +21,11 @@ import 'tool_bar.dart';
 const double _kFloatingActionButtonMargin = 16.0; // TODO(hmuller): should be device dependent
 const Duration _kFloatingActionButtonSegue = const Duration(milliseconds: 400);
 
+enum AppBarBehavior {
+  anchor,
+  scroll,
+}
+
 enum _ScaffoldSlot {
   body,
   toolBar,
@@ -177,13 +183,22 @@ class Scaffold extends StatefulComponent {
     this.toolBar,
     this.body,
     this.floatingActionButton,
-    this.drawer
-  }) : super(key: key);
+    this.drawer,
+    this.scrollableKey,
+    this.appBarBehavior: AppBarBehavior.anchor,
+    this.appBarHeight
+  }) : super(key: key) {
+    assert((appBarBehavior == AppBarBehavior.scroll) ? scrollableKey != null : true);
+    assert((appBarBehavior == AppBarBehavior.scroll) ? appBarHeight != null && appBarHeight > kToolBarHeight : true);
+  }
 
   final ToolBar toolBar;
   final Widget body;
   final Widget floatingActionButton;
   final Widget drawer;
+  final Key scrollableKey;
+  final AppBarBehavior appBarBehavior;
+  final double appBarHeight;
 
   /// The state from the closest instance of this class that encloses the given context.
   static ScaffoldState of(BuildContext context) => context.ancestorStateOfType(const TypeMatcher<ScaffoldState>());
@@ -193,6 +208,14 @@ class Scaffold extends StatefulComponent {
 
 class ScaffoldState extends State<Scaffold> {
 
+  // APPBAR API
+
+  AnimationController _appBarController;
+
+  Animation<double> get appBarAnimation => _appBarController.view;
+
+  double get appBarHeight => config.appBarHeight;
+
   // DRAWER API
 
   final GlobalKey<DrawerControllerState> _drawerKey = new GlobalKey<DrawerControllerState>();
@@ -320,7 +343,13 @@ class ScaffoldState extends State<Scaffold> {
 
   // INTERNALS
 
+  void initState() {
+    super.initState();
+    _appBarController = new AnimationController();
+  }
+
   void dispose() {
+    _appBarController.stop();
     _snackBarController?.stop();
     _snackBarController = null;
     _snackBarTimer?.cancel();
@@ -335,7 +364,7 @@ class ScaffoldState extends State<Scaffold> {
 
   bool _shouldShowBackArrow;
 
-  Widget _getModifiedToolBar(EdgeDims padding) {
+  Widget _getModifiedToolBar({ EdgeDims padding, double foregroundOpacity: 1.0, int elevation: 4 }) {
     ToolBar toolBar = config.toolBar;
     if (toolBar == null)
       return null;
@@ -360,11 +389,73 @@ class ScaffoldState extends State<Scaffold> {
       }
     }
     return toolBar.copyWith(
+      elevation: elevation,
       padding: toolBarPadding,
+      foregroundOpacity: foregroundOpacity,
       left: left
     );
   }
 
+  double _scrollOffset = 0.0;
+  double _scrollOffsetDelta = 0.0;
+  double _floatingAppBarHeight = 0.0;
+
+  bool _handleScrollNotification(ScrollNotification notification) {
+    final double newScrollOffset = notification.scrollable.scrollOffset;
+    if (config.scrollableKey != null && config.scrollableKey == notification.scrollable.config.key)
+      setState(() {
+        _scrollOffsetDelta = _scrollOffset - newScrollOffset;
+        _scrollOffset = newScrollOffset;
+      });
+    return false;
+  }
+
+  double _toolBarOpacity(double progress) {
+    // The value of progress is 1.0 if the entire (padded) toolbar is visible, 0.0
+    // if the toolbar's height is zero.
+    return new Tween<double>(begin: 0.0, end: 1.0).evaluate(new CurvedAnimation(
+      parent: new AnimationController()..value = progress.clamp(0.0, 1.0),
+      curve: new Interval(0.50, 1.0)
+    ));
+  }
+
+  Widget _buildScrollableAppBar(BuildContext context) {
+    final EdgeDims toolBarPadding = MediaQuery.of(context)?.padding ?? EdgeDims.zero;
+    final double toolBarHeight = kToolBarHeight + toolBarPadding.top;
+    Widget appBar;
+
+    if (_scrollOffset <= appBarHeight && _scrollOffset >= appBarHeight - toolBarHeight) {
+      // scrolled to the top, only the toolbar is (partially) visible
+      final double height = math.max(_floatingAppBarHeight, appBarHeight - _scrollOffset);
+      final double opacity = _toolBarOpacity(1.0 - ((toolBarHeight - height) / toolBarHeight));
+      _appBarController.value = (appBarHeight - height) / appBarHeight;
+      appBar = new SizedBox(
+        height: height,
+        child: _getModifiedToolBar(padding: toolBarPadding, foregroundOpacity: opacity)
+      );
+    } else if (_scrollOffset > appBarHeight) {
+      // scrolled down, show the "floating" toolbar
+      _floatingAppBarHeight = (_floatingAppBarHeight + _scrollOffsetDelta).clamp(0.0, toolBarHeight);
+      final toolBarOpacity = _toolBarOpacity(_floatingAppBarHeight / toolBarHeight);
+      _appBarController.value = (appBarHeight - _floatingAppBarHeight) / appBarHeight;
+      appBar = new SizedBox(
+        height: _floatingAppBarHeight,
+        child: _getModifiedToolBar(padding: toolBarPadding, foregroundOpacity: toolBarOpacity)
+      );
+    } else {
+      // _scrollOffset < appBarHeight - toolBarHeight, scrolled to the top, flexible space is visible
+      final double height = appBarHeight - _scrollOffset.clamp(0.0, appBarHeight);
+      _appBarController.value = (appBarHeight - height) / appBarHeight;
+      appBar = new SizedBox(
+        height: height,
+        child: _getModifiedToolBar(padding: toolBarPadding, elevation: 0)
+      );
+      _floatingAppBarHeight = 0.0;
+    }
+
+    return appBar;
+  }
+
   Widget build(BuildContext context) {
     EdgeDims padding = MediaQuery.of(context)?.padding ?? EdgeDims.zero;
 
@@ -381,7 +472,14 @@ class ScaffoldState extends State<Scaffold> {
 
     final List<LayoutId> children = new List<LayoutId>();
     _addIfNonNull(children, config.body, _ScaffoldSlot.body);
-    _addIfNonNull(children, _getModifiedToolBar(padding), _ScaffoldSlot.toolBar);
+    if (config.appBarBehavior == AppBarBehavior.anchor) {
+      Widget toolBar = new ConstrainedBox(
+        child: _getModifiedToolBar(padding: padding),
+        constraints: new BoxConstraints(maxHeight: config.appBarHeight ?? kExtendedToolBarHeight + padding.top)
+      );
+      _addIfNonNull(children, toolBar, _ScaffoldSlot.toolBar);
+    }
+    // Otherwise the ToolBar will be part of a [toolbar, body] Stack. See AppBarBehavior.scroll below.
 
     if (_currentBottomSheet != null ||
         (_dismissedBottomSheets != null && _dismissedBottomSheets.isNotEmpty)) {
@@ -418,14 +516,39 @@ class ScaffoldState extends State<Scaffold> {
       ));
     }
 
-    return new Material(
-      child: new CustomMultiChildLayout(
+    Widget application;
+
+    if (config.appBarBehavior == AppBarBehavior.scroll) {
+      double overScroll = _scrollOffset.clamp(double.NEGATIVE_INFINITY, 0.0);
+      application = new NotificationListener<ScrollNotification>(
+        onNotification: _handleScrollNotification,
+        child: new Stack(
+          children: <Widget> [
+            new CustomMultiChildLayout(
+              children: children,
+              delegate: new _ScaffoldLayout(
+                padding: EdgeDims.zero
+              )
+            ),
+            new Positioned(
+              top: -overScroll,
+              left: 0.0,
+              right: 0.0,
+              child: _buildScrollableAppBar(context)
+            )
+          ]
+        )
+      );
+    } else {
+      application = new CustomMultiChildLayout(
         children: children,
         delegate: new _ScaffoldLayout(
           padding: padding
         )
-      )
-    );
+      );
+    }
+
+    return new Material(child: application);
   }
 }
 
diff --git a/packages/flutter/lib/src/material/tool_bar.dart b/packages/flutter/lib/src/material/tool_bar.dart
index 7b2cbe47fe..4d8920047f 100644
--- a/packages/flutter/lib/src/material/tool_bar.dart
+++ b/packages/flutter/lib/src/material/tool_bar.dart
@@ -17,18 +17,23 @@ class ToolBar extends StatelessComponent {
     this.left,
     this.center,
     this.right,
-    this.bottom,
+    this.flexibleSpace,
+    this.foregroundOpacity: 1.0,
     this.tabBar,
     this.elevation: 4,
     this.backgroundColor,
     this.textTheme,
     this.padding: EdgeDims.zero
-  }) : super(key: key);
+  }) : super(key: key) {
+    assert((flexibleSpace != null) ? tabBar == null : true);
+    assert((tabBar != null) ? flexibleSpace == null : true);
+  }
 
   final Widget left;
   final Widget center;
   final List<Widget> right;
-  final Widget bottom;
+  final WidgetBuilder flexibleSpace;
+  final double foregroundOpacity;
   final Widget tabBar;
   final int elevation;
   final Color backgroundColor;
@@ -40,7 +45,8 @@ class ToolBar extends StatelessComponent {
     Widget left,
     Widget center,
     List<Widget> right,
-    Widget bottom,
+    WidgetBuilder flexibleSpace,
+    double foregroundOpacity,
     int elevation,
     Color backgroundColor,
     TextTheme textTheme,
@@ -51,7 +57,8 @@ class ToolBar extends StatelessComponent {
       left: left ?? this.left,
       center: center ?? this.center,
       right: right ?? this.right,
-      bottom: bottom ?? this.bottom,
+      flexibleSpace: flexibleSpace ?? this.flexibleSpace,
+      foregroundOpacity: foregroundOpacity ?? this.foregroundOpacity,
       tabBar: tabBar ?? this.tabBar,
       elevation: elevation ?? this.elevation,
       backgroundColor: backgroundColor ?? this.backgroundColor,
@@ -76,10 +83,24 @@ class ToolBar extends StatelessComponent {
       sideStyle ??= primaryTextTheme.body2;
     }
 
-    final List<Widget> firstRow = <Widget>[];
+    if (foregroundOpacity != 1.0) {
+      final int alpha = (foregroundOpacity.clamp(0.0, 1.0) * 255.0).round();
+      if (centerStyle?.color != null)
+        centerStyle = centerStyle.copyWith(color: centerStyle.color.withAlpha(alpha));
+      if (sideStyle?.color != null)
+        sideStyle = sideStyle.copyWith(color: sideStyle.color.withAlpha(alpha));
+      if (iconThemeData != null) {
+        iconThemeData = new IconThemeData(
+          opacity: foregroundOpacity * iconThemeData.clampedOpacity,
+          color: iconThemeData.color
+        );
+      }
+    }
+
+    final List<Widget> toolBarRow = <Widget>[];
     if (left != null)
-      firstRow.add(left);
-    firstRow.add(
+      toolBarRow.add(left);
+    toolBarRow.add(
       new Flexible(
         child: new Padding(
           padding: new EdgeDims.only(left: 24.0),
@@ -88,45 +109,55 @@ class ToolBar extends StatelessComponent {
       )
     );
     if (right != null)
-      firstRow.addAll(right);
-
-    final List<Widget> rows = <Widget>[
-      new Container(
-        height: kToolBarHeight,
-        child: new DefaultTextStyle(
-          style: sideStyle,
-          child: new Row(children: firstRow)
-        )
-      )
-    ];
-    if (bottom != null) {
-      rows.add(
-        new DefaultTextStyle(
-          style: centerStyle,
-          child: new Container(
-            height: kExtendedToolBarHeight - kToolBarHeight,
-            child: bottom
-          )
-        )
-      );
-    }
-    if (tabBar != null)
-      rows.add(tabBar);
+      toolBarRow.addAll(right);
 
     EdgeDims combinedPadding = new EdgeDims.symmetric(horizontal: 8.0);
     if (padding != null)
       combinedPadding += padding;
 
+    // If the toolBar's height shrinks below toolBarHeight, it will be clipped and bottom
+    // justified. This is so that the toolbar appears to move upwards as its height is reduced.
+    final double toolBarHeight = kToolBarHeight + combinedPadding.top + combinedPadding.bottom;
+    final Widget toolBar = new ConstrainedBox(
+      constraints: new BoxConstraints(maxHeight: toolBarHeight),
+      child: new Padding(
+        padding: new EdgeDims.only(left: combinedPadding.left, right: combinedPadding.right),
+        child: new ClipRect(
+          child: new OverflowBox(
+            alignment: const FractionalOffset(0.0, 1.0), // bottom justify
+            minHeight: toolBarHeight,
+            maxHeight: toolBarHeight,
+            child: new DefaultTextStyle(
+              style: sideStyle,
+              child: new Padding(
+                padding: new EdgeDims.only(top: combinedPadding.top, bottom: combinedPadding.bottom),
+                child: new Row(children: toolBarRow)
+              )
+            )
+          )
+        )
+      )
+    );
+
+    Widget appBar = toolBar;
+    if (tabBar != null) {
+      appBar = new Column(
+        justifyContent: FlexJustifyContent.collapse,
+        children: <Widget>[toolBar, tabBar]
+      );
+    } else if (flexibleSpace != null) {
+      appBar = new Stack(
+        children: <Widget>[
+          flexibleSpace(context),
+          new Align(child: toolBar, alignment: const FractionalOffset(0.0, 0.0))
+        ]
+      );
+    }
+
     Widget contents = new Material(
       color: color,
       elevation: elevation,
-      child: new Container(
-        padding: combinedPadding,
-        child: new Column(
-          children: rows,
-          justifyContent: FlexJustifyContent.collapse
-        )
-      )
+      child: appBar
     );
 
     if (iconThemeData != null)
diff --git a/packages/flutter/lib/src/rendering/list.dart b/packages/flutter/lib/src/rendering/list.dart
index e5c20bd0f8..af9522b1b5 100644
--- a/packages/flutter/lib/src/rendering/list.dart
+++ b/packages/flutter/lib/src/rendering/list.dart
@@ -151,7 +151,7 @@ class RenderList extends RenderVirtualViewport<ListParentData> implements HasScr
         break;
       case Axis.horizontal:
         itemWidth = itemExtent ?? size.width;
-        itemHeight = math.max(0, size.height - (padding == null ? 0.0 : padding.vertical));
+        itemHeight = math.max(0.0, size.height - (padding == null ? 0.0 : padding.vertical));
         x = padding != null ? padding.left : 0.0;
         dx = itemWidth;
         break;
diff --git a/packages/flutter/lib/src/widgets/scrollable.dart b/packages/flutter/lib/src/widgets/scrollable.dart
index f30c50a996..7c949aceff 100644
--- a/packages/flutter/lib/src/widgets/scrollable.dart
+++ b/packages/flutter/lib/src/widgets/scrollable.dart
@@ -377,12 +377,16 @@ class ScrollableViewport extends Scrollable {
     this.child,
     double initialScrollOffset,
     Axis scrollDirection: Axis.vertical,
-    ScrollListener onScroll
+    ScrollListener onScrollStart,
+    ScrollListener onScroll,
+    ScrollListener onScrollEnd
   }) : super(
     key: key,
     scrollDirection: scrollDirection,
     initialScrollOffset: initialScrollOffset,
-    onScroll: onScroll
+    onScrollStart: onScrollStart,
+    onScroll: onScroll,
+    onScrollEnd: onScrollEnd
   );
 
   final Widget child;
diff --git a/packages/flutter/lib/src/widgets/scrollable_list.dart b/packages/flutter/lib/src/widgets/scrollable_list.dart
index 9fc21d5f1a..60fbddc3f6 100644
--- a/packages/flutter/lib/src/widgets/scrollable_list.dart
+++ b/packages/flutter/lib/src/widgets/scrollable_list.dart
@@ -158,11 +158,12 @@ class _ListViewportElement extends VirtualViewportElement<ListViewport> {
   void layout(BoxConstraints constraints) {
     final int length = renderObject.virtualChildCount;
     final double itemExtent = widget.itemExtent;
+    final EdgeDims padding = widget.padding ?? EdgeDims.zero;
 
-    double contentExtent = widget.itemExtent * length;
+    double contentExtent = widget.itemExtent * length + padding.top + padding.bottom;
     double containerExtent = _getContainerExtentFromRenderObject();
 
-    _materializedChildBase = math.max(0, widget.startOffset ~/ itemExtent);
+    _materializedChildBase = math.max(0, (widget.startOffset - padding.top) ~/ itemExtent);
     int materializedChildLimit = math.max(0, ((widget.startOffset + containerExtent) / itemExtent).ceil());
 
     if (!widget.itemsWrap) {