diff --git a/.gitignore b/.gitignore
index 847f939..d12644b 100644
--- a/.gitignore
+++ b/.gitignore
@@ -31,6 +31,6 @@ typings
 dist
 *.tgz
 .idea
-spec/ngc/ngfactory/
-spec/ngc/output/
-release
\ No newline at end of file
+spec/ngc*/ngfactory/
+spec/ngc*/output/
+release
diff --git a/package.json b/package.json
index dba0667..f44d389 100644
--- a/package.json
+++ b/package.json
@@ -8,7 +8,8 @@
     "karma": "karma start --single-run",
     "test:unit": "npm run karma",
     "test:ngc": "ngc -p ./spec/ngc/tsconfig.ngc.json",
-    "test": "npm run test:unit && npm run test:ngc",
+    "test:ngc2": "ngc -p ./spec/ngc2/tsconfig.ngc.json",
+    "test": "npm run test:unit && npm run test:ngc && npm run test:ngc2",
     "clean:pre": "rimraf release",
     "clean:post": "rimraf \"src/**/*.ngfactory.ts\"",
     "copy": "cpy LICENSE package.json README.md release",
diff --git a/spec/ngc2/main.ts b/spec/ngc2/main.ts
new file mode 100644
index 0000000..9e63106
--- /dev/null
+++ b/spec/ngc2/main.ts
@@ -0,0 +1,46 @@
+import { NgModule, Component } from '@angular/core';
+import { platformDynamicServer } from '@angular/platform-server';
+import { BrowserModule } from '@angular/platform-browser';
+import { Store, StoreModule } from '../../';
+import { counterReducer, INCREMENT, DECREMENT } from '../fixtures/counter';
+import { Observable } from 'rxjs/Observable';
+
+export interface AppState {
+  count: number;
+}
+
+export const storeConfig = {count: counterReducer};
+export function initialState() {
+  return { count : 0 };
+}
+
+@Component({
+  selector: 'ngc-spec-component',
+  template: `
+    <button (click)="increment()"> + </button>
+    <span>  Count : {{ count | async }}  </span>
+    <button (click)="decrement()"> + </button>
+  `
+})
+export class NgcSpecComponent {
+  count: Observable<number>;
+  constructor(public store:Store<AppState>){
+    this.count = store.select(state => state.count);
+  }
+  increment(){
+    this.store.dispatch({ type: INCREMENT });
+  }
+  decrement(){
+    this.store.dispatch({ type: DECREMENT });
+  }
+}
+
+@NgModule({
+  imports: [
+    BrowserModule,
+    StoreModule.provideStore(storeConfig, initialState)
+  ],
+  declarations: [NgcSpecComponent],
+  bootstrap: [NgcSpecComponent]
+})
+export class NgcSpecModule {}
diff --git a/spec/ngc2/tsconfig.ngc.json b/spec/ngc2/tsconfig.ngc.json
new file mode 100644
index 0000000..5b15db0
--- /dev/null
+++ b/spec/ngc2/tsconfig.ngc.json
@@ -0,0 +1,17 @@
+{
+	"compilerOptions": {
+		"target": "ES5",
+		"emitDecoratorMetadata": true,
+		"experimentalDecorators": true,
+		"module": "commonjs",
+		"moduleResolution": "node",
+		"outDir": "./output",
+    "lib": ["es2015", "dom"]
+	},
+	"files": [
+    "main.ts"
+	],
+  "angularCompilerOptions": {
+    "genDir": "ngfactory"
+  }
+}
diff --git a/spec/store.spec.ts b/spec/store.spec.ts
index 01c8c51..94903c8 100644
--- a/spec/store.spec.ts
+++ b/spec/store.spec.ts
@@ -19,10 +19,7 @@ interface TodoAppSchema {
   todos: Todo[];
 }
 
-
-
-describe('ngRx Store', () => {
-
+const testFun = (initialValue: any | (() => any)) => () => {
   describe('basic store actions', function() {
 
     let injector: ReflectiveInjector;
@@ -36,8 +33,6 @@ describe('ngRx Store', () => {
         counter3: counterReducer
       });
 
-      const initialValue = { counter1: 0, counter2: 1 };
-
       injector = ReflectiveInjector.resolveAndCreate([
         StoreModule.provideStore(rootReducer, initialValue).providers
       ]);
@@ -192,4 +187,9 @@ describe('ngRx Store', () => {
       expect(dispatcherSubscription.closed).toBe(false);
     });
   });
-});
+};
+
+const initialValue = { counter1: 0, counter2: 1 };
+describe('ngRx Store with initial value', testFun(initialValue));
+
+describe('ngRx Store with initial function', testFun(() => initialValue));
diff --git a/src/ng2.ts b/src/ng2.ts
index 2932018..ca70b8a 100644
--- a/src/ng2.ts
+++ b/src/ng2.ts
@@ -23,6 +23,11 @@ export function _initialStateFactory(initialState, reducer) {
   if (!initialState) {
     return reducer(undefined, { type: Dispatcher.INIT });
   }
+  
+  if (typeof initialState === 'function') {
+    initialState = initialState();
+  }
+  
   return initialState;
 }
 
@@ -41,7 +46,7 @@ export function _reducerFactory(dispatcher, reducer) {
 /**
  * @deprecated, use StoreModule.provideStore instead!
  */
-export function provideStore(_reducer: any, _initialState?: any): any[] {
+export function provideStore(_reducer: any, _initialState?: any | (() => any)): any[] {
   return [
     Dispatcher,
     { provide: Store, useFactory: _storeFactory, deps: [Dispatcher, Reducer, State] },
@@ -57,7 +62,7 @@ export function provideStore(_reducer: any, _initialState?: any): any[] {
 
 @NgModule({})
 export class StoreModule {
-  static provideStore(_reducer: any, _initialState?:any): ModuleWithProviders {
+  static provideStore(_reducer: any, _initialState?: any | (() => any)): ModuleWithProviders {
     return {
       ngModule: StoreModule,
       providers: provideStore(_reducer, _initialState)