diff --git a/src/vs/workbench/common/editor/untitledEditorModel.ts b/src/vs/workbench/common/editor/untitledEditorModel.ts
index 0b1f4904cdc..b431eda418c 100644
--- a/src/vs/workbench/common/editor/untitledEditorModel.ts
+++ b/src/vs/workbench/common/editor/untitledEditorModel.ts
@@ -50,7 +50,7 @@ export class UntitledEditorModel extends StringEditorModel implements IEncodingS
 		super(value, modeId, resource, modeService, modelService);
 
 		this.hasAssociatedFilePath = hasAssociatedFilePath;
-		this.dirty = hasAssociatedFilePath || value !== ''; // untitled associated to file path are dirty right away
+		this.dirty = hasAssociatedFilePath || !!value; // untitled associated to file path are dirty right away as well as untitled with content
 
 		this._onDidChangeContent = new Emitter<void>();
 		this._onDidChangeDirty = new Emitter<void>();
@@ -59,6 +59,13 @@ export class UntitledEditorModel extends StringEditorModel implements IEncodingS
 		this.contentChangeEventScheduler = new RunOnceScheduler(() => this._onDidChangeContent.fire(), UntitledEditorModel.DEFAULT_CONTENT_CHANGE_BUFFER_DELAY);
 
 		this.registerListeners();
+
+		// Indicate dirty state to listeners
+		if (this.dirty) {
+			setTimeout(() => {
+				this._onDidChangeDirty.fire();
+			}, 0 /* prevent race condition between creating input and emitting dirty event */);
+		}
 	}
 
 	public get onDidChangeContent(): Event<void> {
diff --git a/src/vs/workbench/parts/backup/common/backup.contribution.ts b/src/vs/workbench/parts/backup/common/backup.contribution.ts
index 3693b0b9285..c531ff3baa3 100644
--- a/src/vs/workbench/parts/backup/common/backup.contribution.ts
+++ b/src/vs/workbench/parts/backup/common/backup.contribution.ts
@@ -8,8 +8,14 @@
 import { Registry } from 'vs/platform/platform';
 import { IWorkbenchContributionsRegistry, Extensions as WorkbenchExtensions } from 'vs/workbench/common/contributions';
 import { BackupModelTracker } from 'vs/workbench/parts/backup/common/backupModelTracker';
+import { BackupRestorer } from 'vs/workbench/parts/backup/common/backupRestorer';
 
-// Register Dirty Files Tracker
-(<IWorkbenchContributionsRegistry>Registry.as(WorkbenchExtensions.Workbench)).registerWorkbenchContribution(
+// Register Backup Model Tracker
+Registry.as<IWorkbenchContributionsRegistry>(WorkbenchExtensions.Workbench).registerWorkbenchContribution(
 	BackupModelTracker
+);
+
+// Register Backup Restorer
+Registry.as<IWorkbenchContributionsRegistry>(WorkbenchExtensions.Workbench).registerWorkbenchContribution(
+	BackupRestorer
 );
\ No newline at end of file
diff --git a/src/vs/workbench/parts/backup/common/backupRestorer.ts b/src/vs/workbench/parts/backup/common/backupRestorer.ts
new file mode 100644
index 00000000000..c3a1fbe566f
--- /dev/null
+++ b/src/vs/workbench/parts/backup/common/backupRestorer.ts
@@ -0,0 +1,45 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+'use strict';
+
+import { TPromise } from 'vs/base/common/winjs.base';
+import { IUntitledEditorService } from 'vs/workbench/services/untitled/common/untitledEditorService';
+import { IEnvironmentService } from 'vs/platform/environment/common/environment';
+import { IWorkbenchContribution } from 'vs/workbench/common/contributions';
+import { IPartService } from 'vs/workbench/services/part/common/partService';
+import errors = require('vs/base/common/errors');
+
+// TODO@ben TODO@tyriar this should restore any backup that exists on disk and not rely
+// on the editors to be restored already in the stacks model. For that a method is needed
+// to get all backups that exist on disk.
+export class BackupRestorer implements IWorkbenchContribution {
+
+	public _serviceBrand: any;
+
+	constructor(
+		@IUntitledEditorService private untitledEditorService: IUntitledEditorService,
+		@IEnvironmentService private environmentService: IEnvironmentService,
+		@IPartService private partService: IPartService
+	) {
+		if (!this.environmentService.isExtensionDevelopment) {
+			this.restoreBackups();
+		}
+	}
+
+	private restoreBackups(): void {
+
+		// Wait for all editors being restored before restoring backups
+		this.partService.joinCreation().then(() => {
+
+			// Resolve all untitled so that their backups get loaded
+			TPromise.join(this.untitledEditorService.getAll().map(untitled => untitled.resolve())).done(null, errors.onUnexpectedError);
+		});
+	}
+
+	public getId(): string {
+		return 'vs.backup.backupRestorer';
+	}
+}
\ No newline at end of file
diff --git a/src/vs/workbench/services/untitled/common/untitledEditorService.ts b/src/vs/workbench/services/untitled/common/untitledEditorService.ts
index cf28c9df72e..3749c9a1416 100644
--- a/src/vs/workbench/services/untitled/common/untitledEditorService.ts
+++ b/src/vs/workbench/services/untitled/common/untitledEditorService.ts
@@ -186,11 +186,6 @@ export class UntitledEditorService implements IUntitledEditorService {
 		}
 
 		const input = this.instantiationService.createInstance(UntitledEditorInput, resource, hasAssociatedFilePath, modeId);
-		if (input.isDirty()) {
-			setTimeout(() => {
-				this._onDidChangeDirty.fire(resource);
-			}, 0 /* prevent race condition between creating input and emitting dirty event */);
-		}
 
 		const contentListener = input.onDidModelChangeContent(() => {
 			this._onDidChangeContent.fire(resource);