diff --git a/dev.html b/dev.html
index 7dbd414..99e4128 100644
--- a/dev.html
+++ b/dev.html
@@ -40,17 +40,21 @@
         <v-select placeholder="search github.." label="full_name" @search="search" :options="ajaxRes"></v-select>
         <v-select placeholder="custom option template" :options="options" multiple>
             <template slot="selected-option" scope="option">
-                <img :src='"https://www.kidlink.org/icons/f0-" + option.value.toLowerCase() + ".gif"'/> 
                 {{option.label}}
             </template>
             <template slot="option" scope="option">
-                <img :src='"https://www.kidlink.org/icons/f0-" + option.value.toLowerCase() + ".gif"'/> 
                 {{option.label}} ({{option.value}})
             </template>
         </v-select>
         <v-select placeholder="disabled" disabled  value="disabled"></v-select>
-        <v-select placeholder="disabled multiple" disabled multiple  :value="['disabled', 'multiple']"></v-select>
+        <v-select placeholder="disabled multiple" disabled multiple :value="['disabled', 'multiple']"></v-select>
         <v-select placeholder="filterable=false, @search=searchPeople" label="first_name" :filterable="false" @search="searchPeople" :options="people"></v-select>
+        <v-select placeholder="filtering with fuse.js" label="title" :options="fuseSearchOptions" :filter="fuseSearch">
+            <template slot="option" scope="option">
+                <strong>{{ option.title }}</strong><br>
+                <em>{{ `${option.author.firstName} ${option.author.lastName}` }}</em>
+            </template>
+        </v-select>
     </div>
 </body>
 
diff --git a/src/components/Select.vue b/src/components/Select.vue
index 911449e..c2a994f 100644
--- a/src/components/Select.vue
+++ b/src/components/Select.vue
@@ -522,34 +522,6 @@
         }
       },
 
-      /**
-       * Callback to filter the search result the label text.
-       * @type   {Function}
-       * @param  {Object || String} option
-       * @param  {String} label
-       * @param  {String} search
-       * @return {Boolean}
-       */
-      filterFunction: {
-        type: Function,
-        default(option, label, search) {
-          return (label || '').toLowerCase().indexOf(search.toLowerCase()) > -1
-        }
-      },
-
-      filter: {
-        "type": Function,
-        default(vm) {
-          return vm.mutableOptions.filter((option) => {
-            let label = vm.getOptionLabel(option)
-            if (typeof label === 'number') {
-              label = label.toString()
-            }
-            return this.filterFunction(option, label, vm.search)
-          });
-        }
-      },
-
       /**
        * An optional callback function that is called each time the selected
        * value(s) change. When integrating with Vuex, use this callback to trigger
@@ -603,6 +575,44 @@
         default: true
       },
 
+      /**
+       * Callback to determine if the provided option
+       * should match the current search text.
+       * @type   {Function}
+       * @param  {Object || String} option
+       * @param  {String} label
+       * @param  {String} search
+       * @return {Boolean}
+       */
+      filterComparator: {
+        type: Function,
+        default(option, label, search) {
+          return (label || '').toLowerCase().indexOf(search.toLowerCase()) > -1
+        }
+      },
+
+      /**
+       * Callback to filter results when
+       * search text is provided.
+       * @type   {Function}
+       * @param  {Array} list of options
+       * @param  {String} search text
+       * @param  {Object} vSelect instance
+       * @return {Boolean}
+       */
+      filter: {
+        "type": Function,
+        default(options, search) {
+          return options.filter((option) => {
+            let label = this.getOptionLabel(option)
+            if (typeof label === 'number') {
+              label = label.toString()
+            }
+            return this.filterComparator(option, label, search)
+          });
+        }
+      },
+
       /**
        * User defined function for adding Options
        * @type {Function}
@@ -995,8 +1005,11 @@
        * @return {array}
        */
       filteredOptions() {
-        let options = this.search.length ? this.filter(this) : this.mutableOptions;
-        if (this.taggable && !this.optionExists(this.search)) {
+        if (!this.filterable && !this.taggable) {
+          return this.mutableOptions.slice()
+        }
+        let options = this.search.length ? this.filter(this.mutableOptions, this.search, this) : this.mutableOptions;
+        if (this.taggable && this.search.length && !this.optionExists(this.search)) {
           options.unshift(this.search)
         }
         return options
diff --git a/src/dev.js b/src/dev.js
index d4e8c83..385059b 100644
--- a/src/dev.js
+++ b/src/dev.js
@@ -1,9 +1,9 @@
 import Vue from 'vue'
 import Fuse from 'fuse.js'
+import debounce from 'lodash/debounce'
 import resource from 'vue-resource'
 import vSelect from './components/Select.vue'
 import countries from 'docs/data/advanced.js'
-import debounce from 'lodash/debounce'
 import fuseSearchOptions from './fuseSearchOptions'
 
 Vue.use(resource)
@@ -20,6 +20,7 @@ new Vue({
     value: null,
     options: countries,
     ajaxRes: [],
+    people: [],
     fuseSearchOptions
   },
   methods: {
@@ -43,8 +44,8 @@ new Vue({
         loading(false)
       })
     }, 250),
-    fuse({mutableOptions, search}) {
-      return new Fuse(mutableOptions, {
+    fuseSearch(options, search) {
+      return new Fuse(options, {
         keys: ['title', 'author.firstName', 'author.lastName'],
       }).search(search);
     }
diff --git a/test/unit/specs/Select.spec.js b/test/unit/specs/Select.spec.js
index d6184a8..10d6c95 100644
--- a/test/unit/specs/Select.spec.js
+++ b/test/unit/specs/Select.spec.js
@@ -322,7 +322,7 @@ describe('Select.vue', () => {
 			expect(JSON.stringify(vm.$refs.select.filteredOptions)).toEqual(JSON.stringify([{label: 'Bar', value: 'bar'}, {label: 'Baz', value: 'baz'}]))
 		})
 
-		it('can use a custom filterFunction passed via props', ()=>{
+		it('can determine if a given option should match the current search text', () => {
 			const vm = new Vue({
 				template: `<div><v-select ref="select" :filterFunction="customFn" :options="[{label: 'Aoo', value: 'foo'}, {label: 'Bar', value: 'bar'}, {label: 'Baz', value: 'baz'}]" v-model="value"></v-select></div>`,
 				data: {value: 'foo'},
@@ -333,6 +333,23 @@ describe('Select.vue', () => {
 			vm.$refs.select.search = 'a'
 			expect(JSON.stringify(vm.$refs.select.filteredOptions)).toEqual(JSON.stringify([{label: 'Aoo', value: 'foo'}]))
 		})
+
+		it('can use a custom filtering method', () => {
+      const vm = new Vue({
+        template: `<div><v-select ref="select" :filter="customFn" :options="options" v-model="value"></v-select></div>`,
+        data: {
+        	options: ['foo','bar','baz'],
+        	value: 'foo'
+				},
+        methods:{
+          customFn(options, search, vm) {
+          	return options.filter(option => option.indexOf(search) > 0)
+					}
+        }
+      }).$mount()
+      vm.$refs.select.search = 'a'
+      expect(JSON.stringify(vm.$refs.select.filteredOptions)).toEqual(JSON.stringify(['bar','baz']))
+		})
 	})
 
 	describe('Toggling Dropdown', () => {
@@ -780,6 +797,7 @@ describe('Select.vue', () => {
 			const vm = new Vue({
 				template: '<div><v-select :options="[{}]"></v-select></div>',
 			}).$mount()
+			vm.$children[0].open = true
 			Vue.nextTick(() => {
 				expect(console.warn).toHaveBeenCalledWith(
 						'[vue-select warn]: Label key "option.label" does not exist in options object {}.' +