diff --git a/.gitignore b/.gitignore
index 6716155984..21835254a9 100644
--- a/.gitignore
+++ b/.gitignore
@@ -10,6 +10,7 @@ lib-cov
 *.swo
 .DS_Store
 .idea
+.vscode
 
 pids
 logs
diff --git a/src/datepickerPopup/popup.js b/src/datepickerPopup/popup.js
index 02c0e88a1c..22a24a9806 100644
--- a/src/datepickerPopup/popup.js
+++ b/src/datepickerPopup/popup.js
@@ -125,11 +125,22 @@ function($scope, $element, $attrs, $compile, $log, $parse, $window, $document, $
 
         $scope.date = dateParser.fromTimezone(value, ngModelOptions.getOption('timezone'));
 
+        if (ngModelOptions.getOption('allowInvalid') && isNaN($scope.date)) {
+            $scope.date = value;
+            return value;
+        }
+
         return dateParser.filter($scope.date, dateFormat);
       });
     } else {
       ngModel.$formatters.push(function(value) {
         $scope.date = dateParser.fromTimezone(value, ngModelOptions.getOption('timezone'));
+
+        if (ngModelOptions.getOption('allowInvalid') && isNaN($scope.date)) {
+            $scope.date = value;
+            return value;
+        }
+
         return value;
       });
     }
@@ -191,7 +202,7 @@ function($scope, $element, $attrs, $compile, $log, $parse, $window, $document, $
       } else if (angular.isDate($scope.datepickerOptions[key])) {
         dates[key] = new Date($scope.datepickerOptions[key]);
       } else {
-        if ($datepickerPopupLiteralWarning) {
+        if ($datepickerPopupLiteralWarning && !ngModelOptions.getOption('allowInvalid')) {
           $log.warn('Literal date support has been deprecated, please switch to date object usage');
         }
 
diff --git a/src/datepickerPopup/test/popup.spec.js b/src/datepickerPopup/test/popup.spec.js
index 227fdb3596..1830521c85 100644
--- a/src/datepickerPopup/test/popup.spec.js
+++ b/src/datepickerPopup/test/popup.spec.js
@@ -580,6 +580,31 @@ describe('datepicker popup', function() {
     });
   });
 
+ describe('works with ngModelOptions allowInvalid', function() {
+    var $timeout, wrapElement;
+
+    beforeEach(inject(function(_$document_, _$sniffer_, _$timeout_) {
+      $document = _$document_;
+      $timeout = _$timeout_;
+      $rootScope.date = 'Invalid Date';
+      wrapElement = $compile('<div><input ng-model="date" ' +
+        'ng-model-options="{allowInvalid: true}" ' +
+        'uib-datepicker-popup><div>')($rootScope);
+      $rootScope.$digest();
+      assignElements(wrapElement);
+    }));
+
+    it('should initially display invalid date', function() {
+      expect(inputEl.val()).toEqual('Invalid Date');
+    });
+
+    it('should display invalid date on change', function(){
+      $rootScope.date = 'Another Invalid Date';
+      $rootScope.$digest();
+      expect(inputEl.val()).toEqual('Another Invalid Date');
+    });
+  });
+
   describe('attribute `datepickerOptions`', function() {
     describe('show-weeks', function() {
       beforeEach(function() {