diff --git a/src/compile/nodes/Element.ts b/src/compile/nodes/Element.ts
index c060edc1f868..9fa630124e1a 100644
--- a/src/compile/nodes/Element.ts
+++ b/src/compile/nodes/Element.ts
@@ -14,6 +14,7 @@ import mapChildren from './shared/mapChildren';
 import { dimensions } from '../../utils/patterns';
 import fuzzymatch from '../validate/utils/fuzzymatch';
 import Ref from './Ref';
+import list from '../../utils/list';
 
 const svg = /^(?:altGlyph|altGlyphDef|altGlyphItem|animate|animateColor|animateMotion|animateTransform|circle|clipPath|color-profile|cursor|defs|desc|discard|ellipse|feBlend|feColorMatrix|feComponentTransfer|feComposite|feConvolveMatrix|feDiffuseLighting|feDisplacementMap|feDistantLight|feDropShadow|feFlood|feFuncA|feFuncB|feFuncG|feFuncR|feGaussianBlur|feImage|feMerge|feMergeNode|feMorphology|feOffset|fePointLight|feSpecularLighting|feSpotLight|feTile|feTurbulence|filter|font|font-face|font-face-format|font-face-name|font-face-src|font-face-uri|foreignObject|g|glyph|glyphRef|hatch|hatchpath|hkern|image|line|linearGradient|marker|mask|mesh|meshgradient|meshpatch|meshrow|metadata|missing-glyph|mpath|path|pattern|polygon|polyline|radialGradient|rect|set|solidcolor|stop|switch|symbol|text|textPath|tref|tspan|unknown|use|view|vkern)$/;
 
@@ -56,6 +57,22 @@ const a11yRequiredContent = new Set([
 
 const invisibleElements = new Set(['meta', 'html', 'script', 'style']);
 
+const validModifiers = new Set([
+	'preventDefault',
+	'stopPropagation',
+	'capture',
+	'once',
+	'passive'
+]);
+
+const passiveEvents = new Set([
+	'wheel',
+	'touchstart',
+	'touchmove',
+	'touchend',
+	'touchcancel'
+]);
+
 export default class Element extends Node {
 	type: 'Element';
 	name: string;
@@ -228,6 +245,7 @@ export default class Element extends Node {
 		this.validateAttributes();
 		this.validateBindings();
 		this.validateContent();
+		this.validateEventHandlers();
 	}
 
 	validateAttributes() {
@@ -563,6 +581,58 @@ export default class Element extends Node {
 		}
 	}
 
+	validateEventHandlers() {
+		const { component } = this;
+
+		this.handlers.forEach(handler => {
+			if (handler.modifiers.has('passive') && handler.modifiers.has('preventDefault')) {
+				component.error(handler, {
+					code: 'invalid-event-modifier',
+					message: `The 'passive' and 'preventDefault' modifiers cannot be used together`
+				});
+			}
+
+			handler.modifiers.forEach(modifier => {
+				if (!validModifiers.has(modifier)) {
+					component.error(handler, {
+						code: 'invalid-event-modifier',
+						message: `Valid event modifiers are ${list([...validModifiers])}`
+					});
+				}
+
+				if (modifier === 'passive') {
+					if (passiveEvents.has(handler.name)) {
+						if (!handler.usesEventObject) {
+							component.warn(handler, {
+								code: 'redundant-event-modifier',
+								message: `Touch event handlers that don't use the 'event' object are passive by default`
+							});
+						}
+					} else {
+						component.warn(handler, {
+							code: 'redundant-event-modifier',
+							message: `The passive modifier only works with wheel and touch events`
+						});
+					}
+				}
+
+				if (component.options.legacy && (modifier === 'once' || modifier === 'passive')) {
+					// TODO this could be supported, but it would need a few changes to
+					// how event listeners work
+					component.error(handler, {
+						code: 'invalid-event-modifier',
+						message: `The '${modifier}' modifier cannot be used in legacy mode`
+					});
+				}
+			});
+
+			if (passiveEvents.has(handler.name) && !handler.usesEventObject && !handler.modifiers.has('preventDefault')) {
+				// touch/wheel events should be passive by default
+				handler.modifiers.add('passive');
+			}
+		});
+	}
+
 	getStaticAttributeValue(name: string) {
 		const attribute = this.attributes.find(
 			(attr: Attribute) => attr.type === 'Attribute' && attr.name.toLowerCase() === name
diff --git a/src/compile/nodes/EventHandler.ts b/src/compile/nodes/EventHandler.ts
index 05aa51d1da6f..9676923d8105 100644
--- a/src/compile/nodes/EventHandler.ts
+++ b/src/compile/nodes/EventHandler.ts
@@ -9,12 +9,14 @@ const validBuiltins = new Set(['set', 'fire', 'destroy']);
 
 export default class EventHandler extends Node {
 	name: string;
+	modifiers: Set<string>;
 	dependencies: Set<string>;
 	expression: Node;
 	callee: any; // TODO
 
 	usesComponent: boolean;
 	usesContext: boolean;
+	usesEventObject: boolean;
 	isCustomEvent: boolean;
 	shouldHoist: boolean;
 
@@ -26,6 +28,8 @@ export default class EventHandler extends Node {
 		super(component, parent, scope, info);
 
 		this.name = info.name;
+		this.modifiers = new Set(info.modifiers);
+
 		component.used.events.add(this.name);
 
 		this.dependencies = new Set();
@@ -39,11 +43,13 @@ export default class EventHandler extends Node {
 
 			this.usesComponent = !validCalleeObjects.has(this.callee.name);
 			this.usesContext = false;
+			this.usesEventObject = this.callee.name === 'event';
 
 			this.args = info.expression.arguments.map(param => {
 				const expression = new Expression(component, this, scope, param);
 				addToSet(this.dependencies, expression.dependencies);
 				if (expression.usesContext) this.usesContext = true;
+				if (expression.usesEvent) this.usesEventObject = true;
 				return expression;
 			});
 
@@ -55,6 +61,7 @@ export default class EventHandler extends Node {
 			this.args = null;
 			this.usesComponent = true;
 			this.usesContext = false;
+			this.usesEventObject = true;
 
 			this.snippet = null; // TODO handle shorthand events here?
 		}
diff --git a/src/compile/nodes/shared/Expression.ts b/src/compile/nodes/shared/Expression.ts
index 6acb6282ec29..dc6f77d82e34 100644
--- a/src/compile/nodes/shared/Expression.ts
+++ b/src/compile/nodes/shared/Expression.ts
@@ -57,11 +57,12 @@ export default class Expression {
 	component: Component;
 	node: any;
 	snippet: string;
-
-	usesContext: boolean;
 	references: Set<string>;
 	dependencies: Set<string>;
 
+	usesContext = false;
+	usesEvent = false;
+
 	thisReferences: Array<{ start: number, end: number }>;
 
 	constructor(component, parent, scope, info) {
@@ -77,8 +78,6 @@ export default class Expression {
 
 		this.snippet = `[✂${info.start}-${info.end}✂]`;
 
-		this.usesContext = false;
-
 		const dependencies = new Set();
 
 		const { code, helpers } = component;
@@ -109,7 +108,12 @@ export default class Expression {
 				if (isReference(node, parent)) {
 					const { name, nodes } = flattenReference(node);
 
-					if (currentScope.has(name) || (name === 'event' && isEventHandler)) return;
+					if (name === 'event' && isEventHandler) {
+						expression.usesEvent = true;
+						return;
+					}
+
+					if (currentScope.has(name)) return;
 
 					if (component.helpers.has(name)) {
 						let object = node;
diff --git a/src/compile/render-dom/wrappers/Element/index.ts b/src/compile/render-dom/wrappers/Element/index.ts
index 58b215889b78..47c1bc57f32e 100644
--- a/src/compile/render-dom/wrappers/Element/index.ts
+++ b/src/compile/render-dom/wrappers/Element/index.ts
@@ -649,8 +649,13 @@ export default class ElementWrapper extends Wrapper {
 					${handlerName}.destroy();
 				`);
 			} else {
+				const modifiers = [];
+				if (handler.modifiers.has('preventDefault')) modifiers.push('event.preventDefault();');
+				if (handler.modifiers.has('stopPropagation')) modifiers.push('event.stopPropagation();');
+
 				const handlerFunction = deindent`
 					function ${handlerName}(event) {
+						${modifiers}
 						${handlerBody}
 					}
 				`;
@@ -661,13 +666,28 @@ export default class ElementWrapper extends Wrapper {
 					block.builders.init.addBlock(handlerFunction);
 				}
 
-				block.builders.hydrate.addLine(
-					`@addListener(${this.var}, "${handler.name}", ${handlerName});`
-				);
+				const opts = ['passive', 'once', 'capture'].filter(mod => handler.modifiers.has(mod));
+				if (opts.length) {
+					const optString = (opts.length === 1 && opts[0] === 'capture')
+						? 'true'
+						: `{ ${opts.map(opt => `${opt}: true`).join(', ')} }`;
 
-				block.builders.destroy.addLine(
-					`@removeListener(${this.var}, "${handler.name}", ${handlerName});`
-				);
+					block.builders.hydrate.addLine(
+						`@addListener(${this.var}, "${handler.name}", ${handlerName}, ${optString});`
+					);
+
+					block.builders.destroy.addLine(
+						`@removeListener(${this.var}, "${handler.name}", ${handlerName}, ${optString});`
+					);
+				} else {
+					block.builders.hydrate.addLine(
+						`@addListener(${this.var}, "${handler.name}", ${handlerName});`
+					);
+
+					block.builders.destroy.addLine(
+						`@removeListener(${this.var}, "${handler.name}", ${handlerName});`
+					);
+				}
 			}
 		});
 	}
diff --git a/src/compile/render-dom/wrappers/shared/EventHandler.ts b/src/compile/render-dom/wrappers/shared/EventHandler.ts
deleted file mode 100644
index 08d3a0e14afb..000000000000
--- a/src/compile/render-dom/wrappers/shared/EventHandler.ts
+++ /dev/null
@@ -1,62 +0,0 @@
-import Renderer from '../../Renderer';
-import Block from '../../Block';
-import Wrapper from './Wrapper';
-import EventHandler from '../../../nodes/EventHandler';
-import validCalleeObjects from '../../../../utils/validCalleeObjects';
-
-export default class EventHandlerWrapper extends Wrapper {
-	node: EventHandler;
-
-	constructor(
-		renderer: Renderer,
-		block: Block,
-		parent: Wrapper,
-		node: EventHandler,
-		stripWhitespace: boolean,
-		nextSibling: Wrapper
-	) {
-		super(renderer, block, parent, node);
-	}
-
-	render(block: Block, parentNode: string, parentNodes: string) {
-		const { renderer } = this;
-		const { component } = renderer;
-
-		const hoisted = this.node.shouldHoist;
-
-		if (this.node.insertionPoint === null) return; // TODO handle shorthand events here?
-
-		if (!validCalleeObjects.has(this.node.callee.name)) {
-			const component_name = hoisted ? `component` : block.alias(`component`);
-
-			// allow event.stopPropagation(), this.select() etc
-			// TODO verify that it's a valid callee (i.e. built-in or declared method)
-			if (this.node.callee.name[0] === '$' && !component.methods.has(this.node.callee.name)) {
-				component.code.overwrite(
-					this.node.insertionPoint,
-					this.node.insertionPoint + 1,
-					`${component_name}.store.`
-				);
-			} else {
-				component.code.prependRight(
-					this.node.insertionPoint,
-					`${component_name}.`
-				);
-			}
-		}
-
-		if (this.node.isCustomEvent) {
-			this.node.args.forEach(arg => {
-				arg.overwriteThis(this.parent.var);
-			});
-
-			if (this.node.callee && this.node.callee.name === 'this') {
-				const node = this.node.callee.nodes[0];
-				component.code.overwrite(node.start, node.end, this.parent.var, {
-					storeName: true,
-					contentOnly: true
-				});
-			}
-		}
-	}
-}
\ No newline at end of file
diff --git a/src/parse/read/directives.ts b/src/parse/read/directives.ts
index f1955ffcbc2d..6993f3ebdadd 100644
--- a/src/parse/read/directives.ts
+++ b/src/parse/read/directives.ts
@@ -25,8 +25,9 @@ const DIRECTIVES: Record<string, {
 
 	EventHandler: {
 		names: ['on'],
-		attribute(start, end, type, name, expression) {
-			return { start, end, type, name, expression };
+		attribute(start, end, type, lhs, expression) {
+			const [name, ...modifiers] = lhs.split('|');
+			return { start, end, type, name, modifiers, expression };
 		},
 		allowedExpressionTypes: ['CallExpression'],
 		error: 'Expected a method call'
diff --git a/src/shared/dom.js b/src/shared/dom.js
index 06eb0c410a8c..1411a7693e03 100644
--- a/src/shared/dom.js
+++ b/src/shared/dom.js
@@ -73,12 +73,12 @@ export function createComment() {
 	return document.createComment('');
 }
 
-export function addListener(node, event, handler) {
-	node.addEventListener(event, handler, false);
+export function addListener(node, event, handler, options) {
+	node.addEventListener(event, handler, options);
 }
 
-export function removeListener(node, event, handler) {
-	node.removeEventListener(event, handler, false);
+export function removeListener(node, event, handler, options) {
+	node.removeEventListener(event, handler, options);
 }
 
 export function setAttribute(node, attribute, value) {
diff --git a/test/js/samples/event-modifiers/expected.js b/test/js/samples/event-modifiers/expected.js
new file mode 100644
index 000000000000..e0b355f21677
--- /dev/null
+++ b/test/js/samples/event-modifiers/expected.js
@@ -0,0 +1,91 @@
+/* generated by Svelte vX.Y.Z */
+import { addListener, append, assign, createElement, createText, detachNode, init, insert, noop, proto, removeListener } from "svelte/shared.js";
+
+var methods = {
+	handleTouchstart() {
+		// ...
+	},
+
+	handleClick() {
+		// ...
+	}
+};
+
+function create_main_fragment(component, ctx) {
+	var div, button0, text1, button1, text3, button2;
+
+	function click_handler(event) {
+		event.preventDefault();
+		event.stopPropagation();
+		component.handleClick();
+	}
+
+	function click_handler_1(event) {
+		component.handleClick();
+	}
+
+	function click_handler_2(event) {
+		component.handleClick();
+	}
+
+	function touchstart_handler(event) {
+		component.handleTouchstart();
+	}
+
+	return {
+		c() {
+			div = createElement("div");
+			button0 = createElement("button");
+			button0.textContent = "click me";
+			text1 = createText("\n\t");
+			button1 = createElement("button");
+			button1.textContent = "or me";
+			text3 = createText("\n\t");
+			button2 = createElement("button");
+			button2.textContent = "or me!";
+			addListener(button0, "click", click_handler);
+			addListener(button1, "click", click_handler_1, { once: true, capture: true });
+			addListener(button2, "click", click_handler_2, true);
+			addListener(div, "touchstart", touchstart_handler, { passive: true });
+		},
+
+		m(target, anchor) {
+			insert(target, div, anchor);
+			append(div, button0);
+			append(div, text1);
+			append(div, button1);
+			append(div, text3);
+			append(div, button2);
+		},
+
+		p: noop,
+
+		d(detach) {
+			if (detach) {
+				detachNode(div);
+			}
+
+			removeListener(button0, "click", click_handler);
+			removeListener(button1, "click", click_handler_1, { once: true, capture: true });
+			removeListener(button2, "click", click_handler_2, true);
+			removeListener(div, "touchstart", touchstart_handler, { passive: true });
+		}
+	};
+}
+
+function SvelteComponent(options) {
+	init(this, options);
+	this._state = assign({}, options.data);
+	this._intro = true;
+
+	this._fragment = create_main_fragment(this, this._state);
+
+	if (options.target) {
+		this._fragment.c();
+		this._mount(options.target, options.anchor);
+	}
+}
+
+assign(SvelteComponent.prototype, proto);
+assign(SvelteComponent.prototype, methods);
+export default SvelteComponent;
\ No newline at end of file
diff --git a/test/js/samples/event-modifiers/input.html b/test/js/samples/event-modifiers/input.html
new file mode 100644
index 000000000000..4726d96c70b3
--- /dev/null
+++ b/test/js/samples/event-modifiers/input.html
@@ -0,0 +1,19 @@
+<div on:touchstart="handleTouchstart()">
+	<button on:click|stopPropagation|preventDefault="handleClick()">click me</button>
+	<button on:click|once|capture="handleClick()">or me</button>
+	<button on:click|capture="handleClick()">or me!</button>
+</div>
+
+<script>
+	export default {
+		methods: {
+			handleTouchstart() {
+				// ...
+			},
+
+			handleClick() {
+				// ...
+			}
+		}
+	};
+</script>
\ No newline at end of file
diff --git a/test/parser/samples/event-handler/output.json b/test/parser/samples/event-handler/output.json
index c297572b1645..617c2fde71b7 100644
--- a/test/parser/samples/event-handler/output.json
+++ b/test/parser/samples/event-handler/output.json
@@ -15,6 +15,7 @@
 						"end": 45,
 						"type": "EventHandler",
 						"name": "click",
+						"modifiers": [],
 						"expression": {
 							"type": "CallExpression",
 							"start": 18,
diff --git a/test/validator/index.js b/test/validator/index.js
index 852ac4191be8..0f5ad18a6e44 100644
--- a/test/validator/index.js
+++ b/test/validator/index.js
@@ -32,6 +32,7 @@ describe("validate", () => {
 						warnings.push({ code, message, pos, start, end });
 					},
 					dev: config.dev,
+					legacy: config.legacy,
 					generate: false
 				});
 
diff --git a/test/validator/samples/event-modifiers-invalid-passive/errors.json b/test/validator/samples/event-modifiers-invalid-passive/errors.json
new file mode 100644
index 000000000000..90fce9eb4458
--- /dev/null
+++ b/test/validator/samples/event-modifiers-invalid-passive/errors.json
@@ -0,0 +1,15 @@
+[{
+	"message": "The 'passive' and 'preventDefault' modifiers cannot be used together",
+	"code": "invalid-event-modifier",
+	"start": {
+		"line": 1,
+		"column": 5,
+		"character": 5
+	},
+	"end": {
+		"line": 1,
+		"column": 52,
+		"character": 52
+	},
+	"pos": 5
+}]
diff --git a/test/validator/samples/event-modifiers-invalid-passive/input.html b/test/validator/samples/event-modifiers-invalid-passive/input.html
new file mode 100644
index 000000000000..e51cd57ae79e
--- /dev/null
+++ b/test/validator/samples/event-modifiers-invalid-passive/input.html
@@ -0,0 +1,3 @@
+<div on:wheel|passive|preventDefault="handleWheel()">
+	oops
+</div>
\ No newline at end of file
diff --git a/test/validator/samples/event-modifiers-invalid/errors.json b/test/validator/samples/event-modifiers-invalid/errors.json
new file mode 100644
index 000000000000..0de4e9aacf38
--- /dev/null
+++ b/test/validator/samples/event-modifiers-invalid/errors.json
@@ -0,0 +1,15 @@
+[{
+	"message": "Valid event modifiers are preventDefault, stopPropagation, capture, once or passive",
+	"code": "invalid-event-modifier",
+	"start": {
+		"line": 1,
+		"column": 8,
+		"character": 8
+	},
+	"end": {
+		"line": 1,
+		"column": 36,
+		"character": 36
+	},
+	"pos": 8
+}]
diff --git a/test/validator/samples/event-modifiers-invalid/input.html b/test/validator/samples/event-modifiers-invalid/input.html
new file mode 100644
index 000000000000..27dacdbc2d3a
--- /dev/null
+++ b/test/validator/samples/event-modifiers-invalid/input.html
@@ -0,0 +1 @@
+<button on:click|stop|bad="doThat()"></button>
\ No newline at end of file
diff --git a/test/validator/samples/event-modifiers-legacy/_config.js b/test/validator/samples/event-modifiers-legacy/_config.js
new file mode 100644
index 000000000000..0179e05ec474
--- /dev/null
+++ b/test/validator/samples/event-modifiers-legacy/_config.js
@@ -0,0 +1,3 @@
+export default {
+	legacy: true
+};
\ No newline at end of file
diff --git a/test/validator/samples/event-modifiers-legacy/errors.json b/test/validator/samples/event-modifiers-legacy/errors.json
new file mode 100644
index 000000000000..2e340b7b2f6c
--- /dev/null
+++ b/test/validator/samples/event-modifiers-legacy/errors.json
@@ -0,0 +1,15 @@
+[{
+	"message": "The 'once' modifier cannot be used in legacy mode",
+	"code": "invalid-event-modifier",
+	"start": {
+		"line": 1,
+		"column": 8,
+		"character": 8
+	},
+	"end": {
+		"line": 1,
+		"column": 37,
+		"character": 37
+	},
+	"pos": 8
+}]
diff --git a/test/validator/samples/event-modifiers-legacy/input.html b/test/validator/samples/event-modifiers-legacy/input.html
new file mode 100644
index 000000000000..3ef8edeee9bb
--- /dev/null
+++ b/test/validator/samples/event-modifiers-legacy/input.html
@@ -0,0 +1 @@
+<button on:click|once="handleClick()"></button>
\ No newline at end of file
diff --git a/test/validator/samples/event-modifiers-redundant/input.html b/test/validator/samples/event-modifiers-redundant/input.html
new file mode 100644
index 000000000000..2a2d390da421
--- /dev/null
+++ b/test/validator/samples/event-modifiers-redundant/input.html
@@ -0,0 +1,16 @@
+<button on:click|passive="handleClick()"></button>
+<div on:touchstart|passive="handleTouchstart()"></div>
+
+<script>
+	export default {
+		methods: {
+			handleTouchstart() {
+				// ...
+			},
+
+			handleClick() {
+				// ...
+			}
+		}
+	};
+</script>
\ No newline at end of file
diff --git a/test/validator/samples/event-modifiers-redundant/warnings.json b/test/validator/samples/event-modifiers-redundant/warnings.json
new file mode 100644
index 000000000000..7b6cae16d487
--- /dev/null
+++ b/test/validator/samples/event-modifiers-redundant/warnings.json
@@ -0,0 +1,32 @@
+[
+	{
+		"message": "The passive modifier only works with wheel and touch events",
+		"code": "redundant-event-modifier",
+		"start": {
+			"line": 1,
+			"column": 8,
+			"character": 8
+		},
+		"end": {
+			"line": 1,
+			"column": 40,
+			"character": 40
+		},
+		"pos": 8
+	},
+	{
+		"message": "Touch event handlers that don't use the 'event' object are passive by default",
+		"code": "redundant-event-modifier",
+		"start": {
+			"line": 2,
+			"column": 5,
+			"character": 56
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+		},
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+	}
+]