diff --git a/src/bootstrap/select-multiple.tpl.html b/src/bootstrap/select-multiple.tpl.html
index 04293b953..db932255b 100644
--- a/src/bootstrap/select-multiple.tpl.html
+++ b/src/bootstrap/select-multiple.tpl.html
@@ -8,7 +8,7 @@
            autocapitalize="off"
            spellcheck="false"
            class="ui-select-search input-xs"
-           placeholder="{{$selectMultiple.getPlaceholder()}}"
+           placeholder="{{$select.getPlaceholder()}}"
            ng-disabled="$select.disabled"
            ng-click="$select.activate()"
            ng-model="$select.search"
diff --git a/src/select2/select-multiple.tpl.html b/src/select2/select-multiple.tpl.html
index ba1e34d85..3694aba73 100644
--- a/src/select2/select-multiple.tpl.html
+++ b/src/select2/select-multiple.tpl.html
@@ -16,7 +16,7 @@
         aria-label="{{ $select.baseTitle }}"
         aria-activedescendant="ui-select-choices-row-{{ $select.generatedId }}-{{ $select.activeIndex }}"
         class="select2-input ui-select-search"
-        placeholder="{{$selectMultiple.getPlaceholder()}}"
+        placeholder="{{$select.getPlaceholder()}}"
         ng-disabled="$select.disabled"
         ng-hide="$select.disabled"
         ng-model="$select.search"
diff --git a/src/selectize/select-multiple.tpl.html b/src/selectize/select-multiple.tpl.html
index 9aceb6b36..f0617c3ff 100644
--- a/src/selectize/select-multiple.tpl.html
+++ b/src/selectize/select-multiple.tpl.html
@@ -6,7 +6,7 @@
     <input type="search" autocomplete="off" tabindex="-1"
            class="ui-select-search"
            ng-class="{'ui-select-search-hidden':!$select.searchEnabled}"
-           placeholder="{{$selectMultiple.getPlaceholder()}}"
+           placeholder="{{$select.getPlaceholder()}}"
            ng-model="$select.search"
            ng-disabled="$select.disabled"
            aria-expanded="{{$select.open}}"
@@ -15,4 +15,4 @@
   </div>
   <div class="ui-select-choices"></div>
   <div class="ui-select-no-choice"></div>
-</div>
\ No newline at end of file
+</div>
diff --git a/src/uiSelectController.js b/src/uiSelectController.js
index 1bd3d1a4f..a92b94d2a 100644
--- a/src/uiSelectController.js
+++ b/src/uiSelectController.js
@@ -65,6 +65,11 @@ uis.controller('uiSelectCtrl',
     return isNil(ctrl.selected) || ctrl.selected === '' || (ctrl.multiple && ctrl.selected.length === 0);
   };
 
+  ctrl.getPlaceholder = function(){
+    if(ctrl.selected && ctrl.selected.length) return;
+    return ctrl.placeholder;
+  };
+
   function _findIndex(collection, predicate, thisArg){
     if (collection.findIndex){
       return collection.findIndex(predicate, thisArg);
diff --git a/src/uiSelectMultipleDirective.js b/src/uiSelectMultipleDirective.js
index 629256fb1..06de4f134 100644
--- a/src/uiSelectMultipleDirective.js
+++ b/src/uiSelectMultipleDirective.js
@@ -62,12 +62,6 @@ uis.directive('uiSelectMultiple', ['uiSelectMinErr','$timeout', function(uiSelec
         return true;
       };
 
-      ctrl.getPlaceholder = function(){
-        //Refactor single?
-        if($select.selected && $select.selected.length) return;
-        return $select.placeholder;
-      };
-
 
     }],
     controllerAs: '$selectMultiple',
diff --git a/test/select.spec.js b/test/select.spec.js
index 7332c6ec7..c9498bf1e 100644
--- a/test/select.spec.js
+++ b/test/select.spec.js
@@ -15,6 +15,8 @@ describe('ui-select tests', function () {
     Escape: 27
   };
 
+  var defaultPlaceholder = 'Pick one...';
+
   function isNil(value) {
     return angular.isUndefined(value) || value === null;
   }
@@ -191,6 +193,10 @@ describe('ui-select tests', function () {
     return $(el).find('.ui-select-match > span:first > span[ng-transclude]:not(.ng-hide)').text();
   }
 
+  function getMatchPlaceholder(el) {
+    return el.find('.ui-select-search').attr('placeholder')
+  }
+
   function clickItem(el, text) {
 
     if (!isDropdownOpened(el)) {
@@ -1874,7 +1880,9 @@ describe('ui-select tests', function () {
     function createUiSelectMultiple(attrs) {
       var attrsHtml = '',
         choicesAttrsHtml = '',
-        matchesAttrsHtml = '';
+        matchesAttrsHtml = '',
+        matchesPlaceholder = defaultPlaceholder;
+
       if (attrs !== undefined) {
         if (attrs.disabled !== undefined) { attrsHtml += ' ng-disabled="' + attrs.disabled + '"'; }
         if (attrs.required !== undefined) { attrsHtml += ' ng-required="' + attrs.required + '"'; }
@@ -1884,23 +1892,27 @@ describe('ui-select tests', function () {
         if (attrs.taggingTokens !== undefined) { attrsHtml += ' tagging-tokens="' + attrs.taggingTokens + '"'; }
         if (attrs.taggingLabel !== undefined) { attrsHtml += ' tagging-label="' + attrs.taggingLabel + '"'; }
         if (attrs.inputId !== undefined) { attrsHtml += ' input-id="' + attrs.inputId + '"'; }
-        if (attrs.groupBy !== undefined) { choicesAttrsHtml += ' group-by="' + attrs.groupBy + '"'; }
-        if (attrs.uiDisableChoice !== undefined) { choicesAttrsHtml += ' ui-disable-choice="' + attrs.uiDisableChoice + '"'; }
-        if (attrs.lockChoice !== undefined) { matchesAttrsHtml += ' ui-lock-choice="' + attrs.lockChoice + '"'; }
         if (attrs.removeSelected !== undefined) { attrsHtml += ' remove-selected="' + attrs.removeSelected + '"'; }
         if (attrs.resetSearchInput !== undefined) { attrsHtml += ' reset-search-input="' + attrs.resetSearchInput + '"'; }
         if (attrs.limit !== undefined) { attrsHtml += ' limit="' + attrs.limit + '"'; }
         if (attrs.onSelect !== undefined) { attrsHtml += ' on-select="' + attrs.onSelect + '"'; }
         if (attrs.removeSelected !== undefined) { attrsHtml += ' remove-selected="' + attrs.removeSelected + '"'; }
-        if (attrs.refresh !== undefined) { choicesAttrsHtml += ' refresh="' + attrs.refresh + '"'; }
-        if (attrs.refreshDelay !== undefined) { choicesAttrsHtml += ' refresh-delay="' + attrs.refreshDelay + '"'; }
         if (attrs.spinnerEnabled !== undefined) { attrsHtml += ' spinner-enabled="' + attrs.spinnerEnabled + '"'; }
         if (attrs.spinnerClass !== undefined) { attrsHtml += ' spinner-class="' + attrs.spinnerClass + '"'; }
+
+        if (attrs.groupBy !== undefined) { choicesAttrsHtml += ' group-by="' + attrs.groupBy + '"'; }
+        if (attrs.uiDisableChoice !== undefined) { choicesAttrsHtml += ' ui-disable-choice="' + attrs.uiDisableChoice + '"'; }
+        if (attrs.refresh !== undefined) { choicesAttrsHtml += ' refresh="' + attrs.refresh + '"'; }
+        if (attrs.refreshDelay !== undefined) { choicesAttrsHtml += ' refresh-delay="' + attrs.refreshDelay + '"'; }
+
+        if (attrs.lockChoice !== undefined) { matchesAttrsHtml += ' ui-lock-choice="' + attrs.lockChoice + '"'; }
       }
 
+      matchesAttrsHtml += ' placeholder="' +  matchesPlaceholder + '"';
+
       return compileTemplate(
         '<ui-select multiple ng-model="selection.selectedMultiple"' + attrsHtml + ' theme="bootstrap" style="width: 800px;"> \
-                <ui-select-match "' + matchesAttrsHtml + ' placeholder="Pick one...">{{$item.name}} &lt;{{$item.email}}&gt;</ui-select-match> \
+                <ui-select-match ' + matchesAttrsHtml + '>{{$item.name}} &lt;{{$item.email}}&gt;</ui-select-match> \
                 <ui-select-choices repeat="person in people | filter: $select.search"' + choicesAttrsHtml + '> \
                   <div ng-bind-html="person.name | highlight: $select.search"></div> \
                   <div ng-bind-html="person.email | highlight: $select.search"></div> \
@@ -2971,6 +2983,65 @@ describe('ui-select tests', function () {
         triggerKeydown(searchInput, Key.Enter);
         expect(el.scope().$select.activeIndex).toBe(2);
       });
+
+      it('should not display the placeholder when tag is selected (by default)', function () {
+        var placeholderText = defaultPlaceholder;
+
+        var el = createUiSelectMultiple({
+          tagging: '',
+          taggingLabel: ''
+        });
+
+        var $select = el.scope().$select; // uiSelectCtrl
+
+        expect($select.selected).toEqual([]);
+        expect($select.getPlaceholder()).toEqual(placeholderText);
+        expect(getMatchPlaceholder(el)).toEqual(placeholderText); // get placeholder
+
+        clickItem(el, scope.people[0].name);
+        expect($select.selected).toEqual([scope.people[0]]);
+        expect(getMatchLabel(el)).toEqual(''); // empty text
+        expect(getMatchPlaceholder(el)).toEqual(''); // empty placeholder
+
+        clickItem(el, scope.people[1].name);
+        expect($select.selected).toEqual([scope.people[0], scope.people[1]]);
+        expect(getMatchLabel(el)).toEqual('');
+        expect(getMatchPlaceholder(el)).toEqual('');
+      });
+
+      // Could be needed when e.g. tag is shown below the input
+      it('should display the placeholder when tag is selected (if user overrides .getPlaceholder())', function () {
+        var placeholderText = defaultPlaceholder;
+
+        var el = createUiSelectMultiple({
+          tagging: '',
+          taggingLabel: ''
+        });
+        var $select = el.scope().$select;
+
+        /**
+         * In case user wants to show placeholder when the text is empty - they can override $select.getPlaceholder.
+         * Cannot do this with $selectMultiple, bc <ui-select-multiple is appended inside the library
+         * This override closes #1796
+         */
+        $select.getPlaceholder = function() {
+          return $select.placeholder;
+        };
+
+        expect($select.selected).toEqual([]);
+        expect(getMatchLabel(el)).toEqual('');
+        expect(getMatchPlaceholder(el)).toEqual(placeholderText);
+
+        clickItem(el, scope.people[0].name);
+        expect($select.selected).toEqual([scope.people[0]]);
+        expect(getMatchLabel(el)).toEqual(''); // empty text
+        expect(getMatchPlaceholder(el)).toEqual(placeholderText); // show placeholder
+
+        clickItem(el, scope.people[1].name);
+        expect($select.selected).toEqual([scope.people[0], scope.people[1]]);
+        expect(getMatchLabel(el)).toEqual('');
+        expect(getMatchPlaceholder(el)).toEqual(placeholderText);
+      });
     });
 
     describe('resetSearchInput option multiple', function () {