We present a model of classical hard-core dimers on the square lattice that contains an Ising nematic phase in its phase diagram. We consider a model with an attractive interaction for parallel dimers on a given plaquette of the square lattice and an attractive interaction for neighboring parallel dimers on the same row ({\it viz} column) of the lattice. By extensive Monte carlo simulations we find that with a finite density of holes the phase diagram has, with rising temperatures, a columnar crystalline phase, an Ising nematic liquid phase and a disordered fluid phase, separated by Ising continuous phase transitions. We present strong evidence for the Ising universality class of both transitions. The Ising nematic phase can be interpreted as either an intermediate classical thermodynamic phase (possibly of a strongly correlated antiferromagnet) or as a phase of a 2D quantum dimer model using the Rokhsar-Kivelson construction of exactly solvable quantum Hamiltonians. ; Comment: 13 pages, 24 figures