diff --git a/src/components/chips/js/chipsController.js b/src/components/chips/js/chipsController.js
index f2747520c6..8a2ad32cbe 100644
--- a/src/components/chips/js/chipsController.js
+++ b/src/components/chips/js/chipsController.js
@@ -136,9 +136,9 @@ MdChipsCtrl.prototype.chipKeydown = function (event) {
  */
 MdChipsCtrl.prototype.getPlaceholder = function() {
   // Allow `secondary-placeholder` to be blank.
-  var useSecondary = (this.items.length &&
+  var useSecondary = (this.items && this.items.length &&
       (this.secondaryPlaceholder == '' || this.secondaryPlaceholder));
-  return useSecondary ? this.placeholder : this.secondaryPlaceholder;
+  return useSecondary ? this.secondaryPlaceholder : this.placeholder;
 };
 
 /**