diff --git a/packages/react-navigation/examples/NavigationPlayground/App.test.js b/packages/react-navigation/examples/NavigationPlayground/App.test.js
index fc6f975e..15668c90 100644
--- a/packages/react-navigation/examples/NavigationPlayground/App.test.js
+++ b/packages/react-navigation/examples/NavigationPlayground/App.test.js
@@ -5,5 +5,6 @@ import renderer from 'react-test-renderer';
 
 it('renders without crashing', () => {
   const rendered = renderer.create(<App />).toJSON();
-  expect(rendered).toBeTruthy();
+  // Will be null because the playground uses state persistence which happens asyncronously
+  expect(rendered).toEqual(null);
 });
diff --git a/packages/react-navigation/examples/NavigationPlayground/js/App.js b/packages/react-navigation/examples/NavigationPlayground/js/App.js
index 2326bbe5..6c56bb91 100644
--- a/packages/react-navigation/examples/NavigationPlayground/js/App.js
+++ b/packages/react-navigation/examples/NavigationPlayground/js/App.js
@@ -307,7 +307,7 @@ const AppNavigator = createStackNavigator(
   }
 );
 
-export default () => <AppNavigator />;
+export default () => <AppNavigator persistenceKey="NavState" />;
 
 const styles = StyleSheet.create({
   item: {
diff --git a/packages/react-navigation/flow/react-navigation.js b/packages/react-navigation/flow/react-navigation.js
index 7e0154c3..d385a0fe 100644
--- a/packages/react-navigation/flow/react-navigation.js
+++ b/packages/react-navigation/flow/react-navigation.js
@@ -538,6 +538,8 @@ declare module 'react-navigation' {
       NavigationAction
     ) => void,
     navigation?: NavigationScreenProp<S>,
+    persistenceKey?: ?string,
+    renderLoadingExperimental?: React$ComponentType<{}>,
     screenProps?: *,
     navigationOptions?: O,
   }>;
diff --git a/packages/react-navigation/src/createNavigationContainer.js b/packages/react-navigation/src/createNavigationContainer.js
index 59fb591a..baa0dea0 100644
--- a/packages/react-navigation/src/createNavigationContainer.js
+++ b/packages/react-navigation/src/createNavigationContainer.js
@@ -1,6 +1,6 @@
 import React from 'react';
-import { Linking } from 'react-native';
 import withLifecyclePolyfill from 'react-lifecycles-compat';
+import { Linking, AsyncStorage } from 'react-native';
 
 import { BackHandler } from './PlatformHelpers';
 import NavigationActions from './NavigationActions';
@@ -32,6 +32,13 @@ function validateProps(props) {
   }
 }
 
+// We keep a global flag to catch errors during the state persistence hydrating scenario.
+// The innermost navigator who catches the error will dispatch a new init action.
+let _reactNavigationIsHydratingState = false;
+// Unfortunate to use global state here, but it seems necessesary for the time being. There seems to
+// be some problems with cascading componentDidCatch handlers. Ideally the inner non-stateful navigator
+// catches the error and re-throws it, to be caught by the top-level stateful navigator.
+
 /**
  * Create an HOC that injects the navigation and manages the navigation state
  * in case it's not passed from above.
@@ -73,16 +80,44 @@ export default function createNavigationContainer(Component) {
       }
 
       this.state = {
-        nav: this._isStateful()
-          ? Component.router.getStateForAction(this._initialAction)
-          : null,
+        nav:
+          this._isStateful() && !props.persistenceKey
+            ? Component.router.getStateForAction(this._initialAction)
+            : null,
       };
     }
 
+    _renderLoading() {
+      return this.props.renderLoadingExperimental
+        ? this.props.renderLoadingExperimental()
+        : null;
+    }
+
     _isStateful() {
       return isStateful(this.props);
     }
 
+    _validateProps(props) {
+      if (this._isStateful()) {
+        return;
+      }
+
+      const { navigation, screenProps, ...containerProps } = props;
+
+      const keys = Object.keys(containerProps);
+
+      if (keys.length !== 0) {
+        throw new Error(
+          'This navigator has both navigation and container props, so it is ' +
+            `unclear if it should own its own state. Remove props: "${keys.join(
+              ', '
+            )}" ` +
+            'if the navigator should get its state from the navigation prop. If the ' +
+            'navigator should maintain its own state, do not pass a navigation prop.'
+        );
+      }
+    }
+
     _urlToPathAndParams(url) {
       const params = {};
       const delimiter = this.props.uriPrefix || '://';
@@ -145,7 +180,7 @@ export default function createNavigationContainer(Component) {
       }
     }
 
-    componentDidMount() {
+    async componentDidMount() {
       this._isMounted = true;
       if (!this._isStateful()) {
         return;
@@ -153,18 +188,71 @@ export default function createNavigationContainer(Component) {
 
       Linking.addEventListener('url', this._handleOpenURL);
 
-      Linking.getInitialURL().then(url => url && this._handleOpenURL({ url }));
+      const { persistenceKey } = this.props;
+      const startupStateJSON =
+        persistenceKey && (await AsyncStorage.getItem(persistenceKey));
+      let startupState = null;
+      try {
+        startupState = startupStateJSON && JSON.parse(startupStateJSON);
+        _reactNavigationIsHydratingState = true;
+      } catch (e) {}
 
-      this._actionEventSubscribers.forEach(subscriber =>
-        subscriber({
-          type: 'action',
-          action: this._initialAction,
-          state: this.state.nav,
-          lastState: null,
-        })
-      );
+      let action = this._initialAction;
+      if (!startupState) {
+        !!process.env.REACT_NAV_LOGGING &&
+          console.log('Init new Navigation State');
+        startupState = Component.router.getStateForAction(action);
+      }
+
+      const url = await Linking.getInitialURL();
+      const parsedUrl = url && this._urlToPathAndParams(url);
+      if (parsedUrl) {
+        const { path, params } = parsedUrl;
+        const urlAction = Component.router.getActionForPathAndParams(
+          path,
+          params
+        );
+        if (urlAction) {
+          !!process.env.REACT_NAV_LOGGING &&
+            console.log('Applying Navigation Action for Initial URL:', url);
+          action = urlAction;
+          startupState = Component.router.getStateForAction(
+            urlAction,
+            startupState
+          );
+        }
+      }
+      this.setState({ nav: startupState }, () => {
+        _reactNavigationIsHydratingState = false;
+        this._actionEventSubscribers.forEach(subscriber =>
+          subscriber({
+            type: 'action',
+            action,
+            state: this.state.nav,
+            lastState: null,
+          })
+        );
+      });
     }
 
+    componentDidCatch(e, errorInfo) {
+      if (_reactNavigationIsHydratingState) {
+        _reactNavigationIsHydratingState = false;
+        console.warn(
+          'Uncaught exception while starting app from persisted navigation state! Trying to render again with a fresh navigation state..'
+        );
+        this.dispatch(NavigationActions.init());
+      }
+    }
+
+    _persistNavigationState = async nav => {
+      const { persistenceKey } = this.props;
+      if (!persistenceKey) {
+        return;
+      }
+      await AsyncStorage.setItem(persistenceKey, JSON.stringify(nav));
+    };
+
     componentWillUnmount() {
       this._isMounted = false;
       Linking.removeEventListener('url', this._handleOpenURL);
@@ -174,8 +262,8 @@ export default function createNavigationContainer(Component) {
     // Per-tick temporary storage for state.nav
 
     dispatch = action => {
-      if (!this._isStateful()) {
-        return false;
+      if (this.props.navigation) {
+        return this.props.navigation.dispatch(action);
       }
       this._nav = this._nav || this.state.nav;
       const oldNav = this._nav;
@@ -197,6 +285,7 @@ export default function createNavigationContainer(Component) {
         this.setState({ nav }, () => {
           this._onNavigationStateChange(oldNav, nav, action);
           dispatchActionEvents();
+          this._persistNavigationState(nav);
         });
         return true;
       } else {
@@ -209,7 +298,9 @@ export default function createNavigationContainer(Component) {
       let navigation = this.props.navigation;
       if (this._isStateful()) {
         const nav = this.state.nav;
-        invariant(nav, 'should be set in constructor if stateful');
+        if (!nav) {
+          return this._renderLoading();
+        }
         if (!this._navigation || this._navigation.state !== nav) {
           this._navigation = addNavigationHelpers({
             dispatch: this.dispatch,