diff --git a/doc/api.rst b/doc/api.rst
index ae4803e5e62..1814b874b3e 100644
--- a/doc/api.rst
+++ b/doc/api.rst
@@ -24,6 +24,7 @@ Top-level functions
    full_like
    zeros_like
    ones_like
+   dot
 
 Dataset
 =======
diff --git a/doc/whats-new.rst b/doc/whats-new.rst
index 963a0454f88..e60d98340c9 100644
--- a/doc/whats-new.rst
+++ b/doc/whats-new.rst
@@ -38,6 +38,10 @@ Documentation
 Enhancements
 ~~~~~~~~~~~~
 
+- Addition of :py:func:`~xarray.dot`, equivalent to ``np.einsum``.
+  Also, :py:func:`~xarray.DataArray.dot` now supports ``dims`` option,
+  which specifies the dimensions to sum over.
+  (:issue:`1951`)
 - Support for writing xarray datasets to netCDF files (netcdf4 backend only)
   when using the `dask.distributed <https://distributed.readthedocs.io>`_
   scheduler (:issue:`1464`).
@@ -49,7 +53,6 @@ Enhancements
   as orthogonal/vectorized indexing, becomes possible for all the backend
   arrays. Also, lazy ``transpose`` is now also supported. (:issue:`1897`)
   By `Keisuke Fujii <https://github.com/fujiisoup>`_.
-
 - Improve :py:func:`~xarray.DataArray.rolling` logic.
   :py:func:`~xarray.DataArrayRolling` object now supports
   :py:func:`~xarray.DataArrayRolling.construct` method that returns a view
diff --git a/xarray/__init__.py b/xarray/__init__.py
index 3e80acd1572..1a2bf3fe283 100644
--- a/xarray/__init__.py
+++ b/xarray/__init__.py
@@ -6,7 +6,7 @@
 from .core.alignment import align, broadcast, broadcast_arrays
 from .core.common import full_like, zeros_like, ones_like
 from .core.combine import concat, auto_combine
-from .core.computation import apply_ufunc, where
+from .core.computation import apply_ufunc, where, dot
 from .core.extensions import (register_dataarray_accessor,
                               register_dataset_accessor)
 from .core.variable import as_variable, Variable, IndexVariable, Coordinate
diff --git a/xarray/core/computation.py b/xarray/core/computation.py
index 858936aad6c..685a3c66c54 100644
--- a/xarray/core/computation.py
+++ b/xarray/core/computation.py
@@ -6,13 +6,14 @@
 import functools
 import itertools
 import operator
+from collections import Counter
 
 import numpy as np
 
-from . import duck_array_ops, utils
+from . import duck_array_ops, utils, dtypes
 from .alignment import deep_align
 from .merge import expand_and_merge_variables
-from .pycompat import OrderedDict, dask_array_type
+from .pycompat import OrderedDict, dask_array_type, basestring
 from .utils import is_dict_like
 
 _DEFAULT_FROZEN_SET = frozenset()
@@ -937,6 +938,111 @@ def earth_mover_distance(first_samples,
         return apply_array_ufunc(func, *args, dask=dask)
 
 
+def dot(*arrays, **kwargs):
+    """ dot(*arrays, dims=None)
+
+    Generalized dot product for xarray objects. Like np.einsum, but
+    provides a simpler interface based on array dimensions.
+
+    Parameters
+    ----------
+    arrays: DataArray (or Variable) objects
+        Arrays to compute.
+    dims: str or tuple of strings, optional
+        Which dimensions to sum over.
+        If not speciified, then all the common dimensions are summed over.
+
+    Returns
+    -------
+    dot: DataArray
+
+    Examples
+    --------
+
+    >>> da_a = xr.DataArray(np.arange(3 * 4).reshape(3, 4), dims=['a', 'b'])
+    >>> da_b = xr.DataArray(np.arange(3 * 4 * 5).reshape(3, 4, 5),
+    >>>                     dims=['a', 'b', 'c'])
+    >>> da_c = xr.DataArray(np.arange(5 * 6).reshape(5, 6), dims=['c', 'd'])
+    >>>
+    >>> xr.dot(da_a, da_b, dims=['a', 'b']).dims
+    ('c', )
+    >>> xr.dot(da_a, da_b, dims=['a']).dims
+    ('b', 'c')
+    >>> xr.dot(da_a, da_b, da_c, dims=['b', 'c']).dims
+    ('a', 'd')
+    """
+    from .dataarray import DataArray
+    from .variable import Variable
+
+    dims = kwargs.pop('dims', None)
+    if len(kwargs) > 0:
+        raise TypeError('Invalid keyward arguments {} are given'.format(
+            list(kwargs.keys())))
+
+    if any(not isinstance(arr, (Variable, DataArray)) for arr in arrays):
+        raise TypeError('Only xr.DataArray and xr.Variable are supported.'
+                        'Given {}.'.format([type(arr) for arr in arrays]))
+
+    if len(arrays) == 0:
+        raise TypeError('At least one array should be given.')
+
+    if isinstance(dims, basestring):
+        dims = (dims, )
+
+    common_dims = set.intersection(*[set(arr.dims) for arr in arrays])
+    all_dims = []
+    for arr in arrays:
+        all_dims += [d for d in arr.dims if d not in all_dims]
+
+    einsum_axes = 'abcdefghijklmnopqrstuvwxyz'
+    dim_map = {d: einsum_axes[i] for i, d in enumerate(all_dims)}
+
+    if dims is None:
+        # find dimensions that occur more than one times
+        dim_counts = Counter()
+        for arr in arrays:
+            dim_counts.update(arr.dims)
+        dims = tuple(d for d, c in dim_counts.items() if c > 1)
+
+    dims = tuple(dims)  # make dims a tuple
+
+    # dimensions to be parallelized
+    broadcast_dims = tuple(d for d in all_dims
+                           if d in common_dims and d not in dims)
+    input_core_dims = [[d for d in arr.dims if d not in broadcast_dims]
+                       for arr in arrays]
+    output_core_dims = [tuple(d for d in all_dims if d not in
+                              dims + broadcast_dims)]
+
+    # we use tensordot if possible, because it is more efficient for dask
+    if len(broadcast_dims) == 0 and len(arrays) == 2:
+        axes = [[arr.get_axis_num(d) for d in arr.dims if d in dims]
+                for arr in arrays]
+        return apply_ufunc(duck_array_ops.tensordot, *arrays, dask='allowed',
+                           input_core_dims=input_core_dims,
+                           output_core_dims=output_core_dims,
+                           kwargs={'axes': axes})
+
+    # construct einsum subscripts, such as '...abc,...ab->...c'
+    # Note: input_core_dims are always moved to the last position
+    subscripts_list = ['...' + ''.join([dim_map[d] for d in ds]) for ds
+                       in input_core_dims]
+    subscripts = ','.join(subscripts_list)
+    subscripts += '->...' + ''.join([dim_map[d] for d in output_core_dims[0]])
+
+    # dtype estimation is necessary for dask='parallelized'
+    out_dtype = dtypes.result_type(*arrays)
+
+    # subscripts should be passed to np.einsum as arg, not as kwargs. We need
+    # to construct a partial function for parallelized computation.
+    func = functools.partial(np.einsum, subscripts)
+    result = apply_ufunc(func, *arrays,
+                         input_core_dims=input_core_dims,
+                         output_core_dims=output_core_dims,
+                         dask='parallelized', output_dtypes=[out_dtype])
+    return result.transpose(*[d for d in all_dims if d in result.dims])
+
+
 def where(cond, x, y):
     """Return elements from `x` or `y` depending on `cond`.
 
diff --git a/xarray/core/dataarray.py b/xarray/core/dataarray.py
index 8c0360df8a9..3c022752174 100644
--- a/xarray/core/dataarray.py
+++ b/xarray/core/dataarray.py
@@ -6,7 +6,7 @@
 import numpy as np
 import pandas as pd
 
-from . import duck_array_ops, groupby, indexing, ops, resample, rolling, utils
+from . import computation, groupby, indexing, ops, resample, rolling, utils
 from ..plot.plot import _PlotMethods
 from .accessors import DatetimeAccessor
 from .alignment import align, reindex_like_indexers
@@ -1926,7 +1926,7 @@ def real(self):
     def imag(self):
         return self._replace(self.variable.imag)
 
-    def dot(self, other):
+    def dot(self, other, dims=None):
         """Perform dot product of two DataArrays along their shared dims.
 
         Equivalent to taking taking tensordot over all shared dims.
@@ -1935,6 +1935,9 @@ def dot(self, other):
         ----------
         other : DataArray
             The other array with which the dot product is performed.
+        dims: list of strings, optional
+            Along which dimensions to be summed over. Default all the common
+            dimensions are summed over.
 
         Returns
         -------
@@ -1943,6 +1946,7 @@ def dot(self, other):
 
         See also
         --------
+        dot
         numpy.tensordot
 
         Examples
@@ -1968,23 +1972,7 @@ def dot(self, other):
         if not isinstance(other, DataArray):
             raise TypeError('dot only operates on DataArrays.')
 
-        # sum over the common dims
-        dims = set(self.dims) & set(other.dims)
-        if len(dims) == 0:
-            raise ValueError('DataArrays have no shared dimensions over which '
-                             'to perform dot.')
-
-        self, other = align(self, other, join='inner', copy=False)
-
-        axes = (self.get_axis_num(dims), other.get_axis_num(dims))
-        new_data = duck_array_ops.tensordot(self.data, other.data, axes=axes)
-
-        new_coords = self.coords.merge(other.coords)
-        new_coords = new_coords.drop([d for d in dims if d in new_coords])
-        new_dims = ([d for d in self.dims if d not in dims] +
-                    [d for d in other.dims if d not in dims])
-
-        return type(self)(new_data, new_coords.variables, new_dims)
+        return computation.dot(self, other, dims=dims)
 
     def sortby(self, variables, ascending=True):
         """
diff --git a/xarray/tests/test_computation.py b/xarray/tests/test_computation.py
index ebd51d04857..88710e55091 100644
--- a/xarray/tests/test_computation.py
+++ b/xarray/tests/test_computation.py
@@ -14,7 +14,7 @@
     join_dict_keys, ordered_set_intersection, ordered_set_union, result_name,
     unified_dim_sizes)
 
-from . import raises_regex, requires_dask
+from . import raises_regex, requires_dask, has_dask
 
 
 def assert_identical(a, b):
@@ -744,6 +744,100 @@ def test_vectorize_dask():
     assert_identical(expected, actual)
 
 
+@pytest.mark.parametrize('dask', [True, False])
+def test_dot(dask):
+    if not has_dask:
+        pytest.skip('test for dask.')
+
+    a = np.arange(30 * 4).reshape(30, 4)
+    b = np.arange(30 * 4 * 5).reshape(30, 4, 5)
+    c = np.arange(5 * 60).reshape(5, 60)
+    da_a = xr.DataArray(a, dims=['a', 'b'],
+                        coords={'a': np.linspace(0, 1, 30)})
+    da_b = xr.DataArray(b, dims=['a', 'b', 'c'],
+                        coords={'a': np.linspace(0, 1, 30)})
+    da_c = xr.DataArray(c, dims=['c', 'e'])
+    if dask:
+        da_a = da_a.chunk({'a': 3})
+        da_b = da_b.chunk({'a': 3})
+        da_c = da_c.chunk({'c': 3})
+
+    actual = xr.dot(da_a, da_b, dims=['a', 'b'])
+    assert actual.dims == ('c', )
+    assert (actual.data == np.einsum('ij,ijk->k', a, b)).all()
+    assert isinstance(actual.variable.data, type(da_a.variable.data))
+
+    actual = xr.dot(da_a, da_b)
+    assert actual.dims == ('c', )
+    assert (actual.data == np.einsum('ij,ijk->k', a, b)).all()
+    assert isinstance(actual.variable.data, type(da_a.variable.data))
+
+    # for only a single array is passed without dims argument, just return
+    # as is
+    actual = xr.dot(da_a)
+    assert da_a.identical(actual)
+
+    # test for variable
+    actual = xr.dot(da_a.variable, da_b.variable)
+    assert actual.dims == ('c', )
+    assert (actual.data == np.einsum('ij,ijk->k', a, b)).all()
+    assert isinstance(actual.data, type(da_a.variable.data))
+
+    if dask:
+        da_a = da_a.chunk({'a': 3})
+        da_b = da_b.chunk({'a': 3})
+        actual = xr.dot(da_a, da_b, dims=['b'])
+        assert actual.dims == ('a', 'c')
+        assert (actual.data == np.einsum('ij,ijk->ik', a, b)).all()
+        assert isinstance(actual.variable.data, type(da_a.variable.data))
+
+        pytest.skip('dot for dask array requires rechunking for core '
+                    'dimensions.')
+
+    # following requires rechunking
+    actual = xr.dot(da_a, da_b, dims=['b'])
+    assert actual.dims == ('a', 'c')
+    assert (actual.data == np.einsum('ij,ijk->ik', a, b)).all()
+
+    actual = xr.dot(da_a, da_b, dims='b')
+    assert actual.dims == ('a', 'c')
+    assert (actual.data == np.einsum('ij,ijk->ik', a, b)).all()
+
+    actual = xr.dot(da_a, da_b, dims='a')
+    assert actual.dims == ('b', 'c')
+    assert (actual.data == np.einsum('ij,ijk->jk', a, b)).all()
+
+    actual = xr.dot(da_a, da_b, dims='c')
+    assert actual.dims == ('a', 'b')
+    assert (actual.data == np.einsum('ij,ijk->ij', a, b)).all()
+
+    actual = xr.dot(da_a, da_b, da_c, dims=['a', 'b'])
+    assert actual.dims == ('c', 'e')
+    assert (actual.data == np.einsum('ij,ijk,kl->kl ', a, b, c)).all()
+
+    # should work with tuple
+    actual = xr.dot(da_a, da_b, dims=('c', ))
+    assert actual.dims == ('a', 'b')
+    assert (actual.data == np.einsum('ij,ijk->ij', a, b)).all()
+
+    # default dims
+    actual = xr.dot(da_a, da_b, da_c)
+    assert actual.dims == ('e', )
+    assert (actual.data == np.einsum('ij,ijk,kl->l ', a, b, c)).all()
+
+    # 1 array summation
+    actual = xr.dot(da_a, dims='a')
+    assert actual.dims == ('b', )
+    assert (actual.data == np.einsum('ij->j ', a)).all()
+
+    with pytest.raises(TypeError):
+        actual = xr.dot(da_a, dims='a', invalid=None)
+    with pytest.raises(TypeError):
+        actual = xr.dot(da_a.to_dataset(name='da'), dims='a')
+    with pytest.raises(TypeError):
+        actual = xr.dot(dims='a')
+
+
 def test_where():
     cond = xr.DataArray([True, False], dims='x')
     actual = xr.where(cond, 1, 0)
diff --git a/xarray/tests/test_dataarray.py b/xarray/tests/test_dataarray.py
index f42df1cbabb..059e93fc70c 100644
--- a/xarray/tests/test_dataarray.py
+++ b/xarray/tests/test_dataarray.py
@@ -3200,8 +3200,6 @@ def test_dot(self):
             da.dot(dm.to_dataset(name='dm'))
         with pytest.raises(TypeError):
             da.dot(dm.values)
-        with raises_regex(ValueError, 'no shared dimensions'):
-            da.dot(DataArray(1))
 
     def test_binary_op_join_setting(self):
         dim = 'x'