diff --git a/web/react/components/channel_header.jsx b/web/react/components/channel_header.jsx
index 39f2837460..101fd85e5f 100644
--- a/web/react/components/channel_header.jsx
+++ b/web/react/components/channel_header.jsx
@@ -11,6 +11,7 @@ const TextFormatting = require('../utils/text_formatting.jsx');
 const Utils = require('../utils/utils.jsx');
 const MessageWrapper = require('./message_wrapper.jsx');
 const PopoverListMembers = require('./popover_list_members.jsx');
+const EditChannelPurposeModal = require('./edit_channel_purpose_modal.jsx');
 
 const AppDispatcher = require('../dispatcher/app_dispatcher.jsx');
 const Constants = require('../utils/constants.jsx');
@@ -27,7 +28,9 @@ export default class ChannelHeader extends React.Component {
         this.handleLeave = this.handleLeave.bind(this);
         this.searchMentions = this.searchMentions.bind(this);
 
-        this.state = this.getStateFromStores();
+        const state = this.getStateFromStores();
+        state.showEditChannelPurposeModal = false;
+        this.state = state;
     }
     getStateFromStores() {
         return {
@@ -232,6 +235,20 @@ export default class ChannelHeader extends React.Component {
                     </a>
                 </li>
             );
+            dropdownContents.push(
+                <li
+                    key='set_channel_purpose'
+                    role='presentation'
+                >
+                    <a
+                        role='menuitem'
+                        href='#'
+                        onClick={() => this.setState({showEditChannelPurposeModal: true})}
+                    >
+                        Set {channelTerm} Purpose...
+                    </a>
+                </li>
+            );
             dropdownContents.push(
                 <li
                     key='notification_preferences'
@@ -307,84 +324,91 @@ export default class ChannelHeader extends React.Component {
         }
 
         return (
-            <table className='channel-header alt'>
-                <tbody>
-                    <tr>
-                        <th>
-                            <div className='channel-header__info'>
-                                <div className='dropdown'>
+            <div>
+                <table className='channel-header alt'>
+                    <tbody>
+                        <tr>
+                            <th>
+                                <div className='channel-header__info'>
+                                    <div className='dropdown'>
+                                        <a
+                                            href='#'
+                                            className='dropdown-toggle theme'
+                                            type='button'
+                                            id='channel_header_dropdown'
+                                            data-toggle='dropdown'
+                                            aria-expanded='true'
+                                        >
+                                            <strong className='heading'>{channelTitle} </strong>
+                                            <span className='glyphicon glyphicon-chevron-down header-dropdown__icon' />
+                                        </a>
+                                        <ul
+                                            className='dropdown-menu'
+                                            role='menu'
+                                            aria-labelledby='channel_header_dropdown'
+                                        >
+                                            {dropdownContents}
+                                        </ul>
+                                    </div>
+                                    <OverlayTrigger
+                                        trigger={['hover', 'focus']}
+                                        placement='bottom'
+                                        overlay={popoverContent}
+                                        ref='headerOverlay'
+                                    >
+                                    <div
+                                        onClick={TextFormatting.handleClick}
+                                        className='description'
+                                        dangerouslySetInnerHTML={{__html: TextFormatting.formatText(channel.header, {singleline: true, mentionHighlight: false})}}
+                                    />
+                                    </OverlayTrigger>
+                                </div>
+                            </th>
+                            <th>
+                                <PopoverListMembers
+                                    members={this.state.users}
+                                    channelId={channel.id}
+                                />
+                            </th>
+                            <th className='search-bar__container'><NavbarSearchBox /></th>
+                            <th>
+                                <div className='dropdown channel-header__links'>
                                     <a
                                         href='#'
                                         className='dropdown-toggle theme'
                                         type='button'
-                                        id='channel_header_dropdown'
+                                        id='channel_header_right_dropdown'
                                         data-toggle='dropdown'
                                         aria-expanded='true'
                                     >
-                                        <strong className='heading'>{channelTitle} </strong>
-                                        <span className='glyphicon glyphicon-chevron-down header-dropdown__icon' />
+                                        <span dangerouslySetInnerHTML={{__html: Constants.MENU_ICON}} />
                                     </a>
                                     <ul
-                                        className='dropdown-menu'
+                                        className='dropdown-menu dropdown-menu-right'
                                         role='menu'
-                                        aria-labelledby='channel_header_dropdown'
+                                        aria-labelledby='channel_header_right_dropdown'
                                     >
-                                        {dropdownContents}
+                                        <li role='presentation'>
+                                            <a
+                                                role='menuitem'
+                                                href='#'
+                                                onClick={this.searchMentions}
+                                            >
+                                                Recent Mentions
+                                            </a>
+                                        </li>
                                     </ul>
                                 </div>
-                                <OverlayTrigger
-                                    trigger={['hover', 'focus']}
-                                    placement='bottom'
-                                    overlay={popoverContent}
-                                    ref='headerOverlay'
-                                >
-                                <div
-                                    onClick={TextFormatting.handleClick}
-                                    className='description'
-                                    dangerouslySetInnerHTML={{__html: TextFormatting.formatText(channel.header, {singleline: true, mentionHighlight: false})}}
-                                />
-                                </OverlayTrigger>
-                            </div>
-                        </th>
-                        <th>
-                            <PopoverListMembers
-                                members={this.state.users}
-                                channelId={channel.id}
-                            />
-                        </th>
-                        <th className='search-bar__container'><NavbarSearchBox /></th>
-                        <th>
-                            <div className='dropdown channel-header__links'>
-                                <a
-                                    href='#'
-                                    className='dropdown-toggle theme'
-                                    type='button'
-                                    id='channel_header_right_dropdown'
-                                    data-toggle='dropdown'
-                                    aria-expanded='true'
-                                >
-                                    <span dangerouslySetInnerHTML={{__html: Constants.MENU_ICON}} />
-                                </a>
-                                <ul
-                                    className='dropdown-menu dropdown-menu-right'
-                                    role='menu'
-                                    aria-labelledby='channel_header_right_dropdown'
-                                >
-                                    <li role='presentation'>
-                                        <a
-                                            role='menuitem'
-                                            href='#'
-                                            onClick={this.searchMentions}
-                                        >
-                                            Recent Mentions
-                                        </a>
-                                    </li>
-                                </ul>
-                            </div>
-                        </th>
-                    </tr>
-                </tbody>
-            </table>
+                            </th>
+                        </tr>
+                    </tbody>
+                </table>
+                <EditChannelPurposeModal
+                    show={this.state.showEditChannelPurposeModal}
+                    onModalDismissed={() => this.setState({showEditChannelPurposeModal: false})}
+                    channel={channel}
+                />
+            </div>
         );
     }
 }
diff --git a/web/react/components/edit_channel_purpose_modal.jsx b/web/react/components/edit_channel_purpose_modal.jsx
new file mode 100644
index 0000000000..d8102642e8
--- /dev/null
+++ b/web/react/components/edit_channel_purpose_modal.jsx
@@ -0,0 +1,118 @@
+// Copyright (c) 2015 Mattermost, Inc. All Rights Reserved.
+// See License.txt for license information.
+
+const AsyncClient = require('../utils/async_client.jsx');
+const Client = require('../utils/client.jsx');
+const Modal = ReactBootstrap.Modal;
+
+export default class EditChannelPurposeModal extends React.Component {
+    constructor(props) {
+        super(props);
+
+        this.handleHide = this.handleHide.bind(this);
+        this.handleSave = this.handleSave.bind(this);
+
+        this.state = {serverError: ''};
+    }
+
+    handleHide() {
+        this.setState({serverError: ''});
+
+        if (this.props.onModalDismissed) {
+            this.props.onModalDismissed();
+        }
+    }
+
+    handleSave() {
+        if (!this.props.channel) {
+            return;
+        }
+
+        const data = {
+            channel_id: this.props.channel.id,
+            channel_purpose: ReactDOM.findDOMNode(this.refs.purpose).value.trim()
+        };
+
+        Client.updateChannelPurpose(data,
+            () => {
+                AsyncClient.getChannel(this.props.channel.id);
+
+                this.handleHide();
+            },
+            (err) => {
+                if (err.message === 'Invalid channel_purpose parameter') {
+                    this.setState({serverError: 'This channel purpose is too long, please enter a shorter one'});
+                } else {
+                    this.setState({serverError: err.message});
+                }
+            }
+        );
+    }
+
+    render() {
+        if (!this.props.show) {
+            return null;
+        }
+
+        let serverError = null;
+        if (this.state.serverError) {
+            serverError = (
+                <div className='form-group has-error'>
+                    <br/>
+                    <label className='control-label'>{this.state.serverError}</label>
+                </div>
+            );
+        }
+
+        let title = <span>{'Edit Purpose'}</span>;
+        if (this.props.channel.display_name) {
+            title = <span>{'Edit Purpose for '}<span className='name'>{this.props.channel.display_name}</span></span>;
+        }
+
+        return (
+            <Modal
+                className='modal-edit-channel-purpose'
+                show={this.props.show}
+                onHide={this.handleHide}
+            >
+                <Modal.Header closeButton={true}>
+                    <Modal.Title>
+                        {title}
+                    </Modal.Title>
+                </Modal.Header>
+                <Modal.Body>
+                    <textarea
+                        ref='purpose'
+                        className='form-control no-resize'
+                        rows='6'
+                        maxLength='128'
+                        defaultValue={this.props.channel.purpose}
+                    />
+                    {serverError}
+                </Modal.Body>
+                <Modal.Footer>
+                    <button
+                        type='button'
+                        className='btn btn-default'
+                        onClick={this.handleHide}
+                    >
+                        {'Cancel'}
+                    </button>
+                    <button
+                        type='button'
+                        className='btn btn-primary'
+                        onClick={this.handleSave}
+                    >
+                        {'Save'}
+                    </button>
+                </Modal.Footer>
+            </Modal>
+        );
+    }
+}
+
+EditChannelPurposeModal.propTypes = {
+    show: React.PropTypes.bool.isRequired,
+    channel: React.PropTypes.object,
+    onModalDismissed: React.PropTypes.func.isRequired
+};
diff --git a/web/react/components/more_channels.jsx b/web/react/components/more_channels.jsx
index 585baee017..c4f831c2ea 100644
--- a/web/react/components/more_channels.jsx
+++ b/web/react/components/more_channels.jsx
@@ -105,12 +105,11 @@ export default class MoreChannels extends React.Component {
                                         );
                                 }
 
-                                // TODO Switch channel.header to channel.purpose once that has been added
                                 return (
                                     <tr key={channel.id}>
                                         <td>
                                             <p className='more-name'>{channel.display_name}</p>
-                                            <p className='more-header'>{channel.header}</p>
+                                            <p className='more-purpose'>{channel.purpose}</p>
                                         </td>
                                         <td className='td--action'>
                                             {joinButton}
diff --git a/web/react/components/navbar.jsx b/web/react/components/navbar.jsx
index e3030383ae..f7778f25f4 100644
--- a/web/react/components/navbar.jsx
+++ b/web/react/components/navbar.jsx
@@ -8,6 +8,7 @@ var ChannelStore = require('../stores/channel_store.jsx');
 var TeamStore = require('../stores/team_store.jsx');
 var MessageWrapper = require('./message_wrapper.jsx');
 var NotifyCounts = require('./notify_counts.jsx');
+const EditChannelPurposeModal = require('./edit_channel_purpose_modal.jsx');
 const Utils = require('../utils/utils.jsx');
 
 var Constants = require('../utils/constants.jsx');
@@ -26,7 +27,9 @@ export default class Navbar extends React.Component {
         this.createCollapseButtons = this.createCollapseButtons.bind(this);
         this.createDropdown = this.createDropdown.bind(this);
 
-        this.state = this.getStateFromStores();
+        const state = this.getStateFromStores();
+        state.showEditChannelPurposeModal = false;
+        this.state = state;
     }
     getStateFromStores() {
         return {
@@ -122,6 +125,19 @@ export default class Navbar extends React.Component {
                 </li>
             );
 
+            var setChannelPurposeOption = null;
+            if (!isDirect) {
+                setChannelPurposeOption = (
+                    <li role='presentation'>
+                        <a
+                            role='menuitem'
+                            href='#'
+                            onClick={() => this.setState({showEditChannelPurposeModal: true})}
+                        />
+                    </li>
+                );
+            }
+
             var addMembersOption;
             var leaveChannelOption;
             if (!isDirect && !ChannelStore.isDefault(channel)) {
@@ -250,6 +266,7 @@ export default class Navbar extends React.Component {
                             {addMembersOption}
                             {manageMembersOption}
                             {setChannelHeaderOption}
+                            {setChannelPurposeOption}
                             {notificationPreferenceOption}
                             {renameChannelOption}
                             {deleteChannelOption}
@@ -392,17 +409,24 @@ export default class Navbar extends React.Component {
         var channelMenuDropdown = this.createDropdown(channel, channelTitle, isAdmin, isDirect, popoverContent);
 
         return (
-            <nav
-                className='navbar navbar-default navbar-fixed-top'
-                role='navigation'
-            >
-                <div className='container-fluid theme'>
-                    <div className='navbar-header'>
-                        {collapseButtons}
-                        {channelMenuDropdown}
+            <div>
+                <nav
+                    className='navbar navbar-default navbar-fixed-top'
+                    role='navigation'
+                >
+                    <div className='container-fluid theme'>
+                        <div className='navbar-header'>
+                            {collapseButtons}
+                            {channelMenuDropdown}
+                        </div>
                     </div>
-                </div>
-            </nav>
+                </nav>
+                <EditChannelPurposeModal
+                    show={this.state.showEditChannelPurposeModal}
+                    onModalDismissed={() => this.setState({showEditChannelPurposeModal: false})}
+                    channel={channel}
+                />
+            </div>
         );
     }
 }
diff --git a/web/react/components/new_channel_flow.jsx b/web/react/components/new_channel_flow.jsx
index 8bcd0dacda..d6280d1183 100644
--- a/web/react/components/new_channel_flow.jsx
+++ b/web/react/components/new_channel_flow.jsx
@@ -30,7 +30,7 @@ export default class NewChannelFlow extends React.Component {
             flowState: SHOW_NEW_CHANNEL,
             channelDisplayName: '',
             channelName: '',
-            channelHeader: '',
+            channelPurpose: '',
             nameModified: false
         };
     }
@@ -43,7 +43,7 @@ export default class NewChannelFlow extends React.Component {
                 flowState: SHOW_NEW_CHANNEL,
                 channelDisplayName: '',
                 channelName: '',
-                channelHeader: '',
+                channelPurpose: '',
                 nameModified: false
             });
         }
@@ -65,7 +65,7 @@ export default class NewChannelFlow extends React.Component {
 
         const cu = UserStore.getCurrentUser();
         channel.team_id = cu.team_id;
-        channel.header = this.state.channelHeader;
+        channel.purpose = this.state.channelPurpose;
         channel.type = this.state.channelType;
 
         Client.createChannel(channel,
@@ -109,7 +109,7 @@ export default class NewChannelFlow extends React.Component {
     channelDataChanged(data) {
         this.setState({
             channelDisplayName: data.displayName,
-            channelHeader: data.header
+            channelPurpose: data.purpose
         });
         if (!this.state.nameModified) {
             this.setState({channelName: Utils.cleanUpUrlable(data.displayName.trim())});
@@ -119,7 +119,7 @@ export default class NewChannelFlow extends React.Component {
         const channelData = {
             name: this.state.channelName,
             displayName: this.state.channelDisplayName,
-            header: this.state.channelHeader
+            purpose: this.state.channelPurpose
         };
 
         let showChannelModal = false;
diff --git a/web/react/components/new_channel_modal.jsx b/web/react/components/new_channel_modal.jsx
index 09acad15f5..c0cea496fe 100644
--- a/web/react/components/new_channel_modal.jsx
+++ b/web/react/components/new_channel_modal.jsx
@@ -36,7 +36,7 @@ export default class NewChannelModal extends React.Component {
     handleChange() {
         const newData = {
             displayName: ReactDOM.findDOMNode(this.refs.display_name).value,
-            header: ReactDOM.findDOMNode(this.refs.channel_header).value
+            purpose: ReactDOM.findDOMNode(this.refs.channel_purpose).value
         };
         this.props.onDataChanged(newData);
     }
@@ -136,22 +136,22 @@ export default class NewChannelModal extends React.Component {
                             </div>
                             <div className='form-group less'>
                                 <div className='col-sm-3'>
-                                    <label className='form__label control-label'>{'Header'}</label>
+                                    <label className='form__label control-label'>{'Purpose'}</label>
                                     <label className='form__label light'>{'(optional)'}</label>
                                 </div>
                                 <div className='col-sm-9'>
                                     <textarea
                                         className='form-control no-resize'
-                                        ref='channel_header'
+                                        ref='channel_purpose'
                                         rows='4'
-                                        placeholder='Header'
-                                        maxLength='1024'
-                                        value={this.props.channelData.header}
+                                        placeholder='Purpose'
+                                        maxLength='128'
+                                        value={this.props.channelData.purpose}
                                         onChange={this.handleChange}
                                         tabIndex='2'
                                     />
                                     <p className='input__help'>
-                                        {'This text is shown in the channel header and supports markdown formatting.'}
+                                        {`Describe how this ${channelTerm} should be used.`}
                                     </p>
                                     {serverError}
                                 </div>
diff --git a/web/react/utils/client.jsx b/web/react/utils/client.jsx
index 6fe373c504..8b37b995fc 100644
--- a/web/react/utils/client.jsx
+++ b/web/react/utils/client.jsx
@@ -592,6 +592,23 @@ export function updateChannelHeader(data, success, error) {
     track('api', 'api_channels_header');
 }
 
+export function updateChannelPurpose(data, success, error) {
+    $.ajax({
+        url: '/api/v1/channels/update_purpose',
+        dataType: 'json',
+        contentType: 'application/json',
+        type: 'POST',
+        data: JSON.stringify(data),
+        success,
+        error: function onError(xhr, status, err) {
+            var e = handleError('updateChannelPurpose', xhr, status, err);
+            error(e);
+        }
+    });
+
+    track('api', 'api_channels_purpose');
+}
+
 export function updateNotifyProps(data, success, error) {
     $.ajax({
         url: '/api/v1/channels/update_notify_props',
diff --git a/web/sass-files/sass/partials/_modal.scss b/web/sass-files/sass/partials/_modal.scss
index a352df5f12..9c6a39c945 100644
--- a/web/sass-files/sass/partials/_modal.scss
+++ b/web/sass-files/sass/partials/_modal.scss
@@ -377,7 +377,7 @@
 		@include opacity(0.8);
 	}
 
-	.more-header {
+	.more-purpose {
 		@include opacity(0.7);
 	}