diff --git a/src/evalfunc.c b/src/evalfunc.c
index 8c8bb4d..b98c7e7 100644
--- a/src/evalfunc.c
+++ b/src/evalfunc.c
@@ -816,10 +816,12 @@
     {"popup_close",	1, 2, f_popup_close},
     {"popup_create",	2, 2, f_popup_create},
     {"popup_dialog",	2, 2, f_popup_dialog},
+    {"popup_filter_menu", 2, 2, f_popup_filter_menu},
     {"popup_filter_yesno", 2, 2, f_popup_filter_yesno},
     {"popup_getoptions", 1, 1, f_popup_getoptions},
     {"popup_getpos",	1, 1, f_popup_getpos},
     {"popup_hide",	1, 1, f_popup_hide},
+    {"popup_menu",	2, 2, f_popup_menu},
     {"popup_move",	2, 2, f_popup_move},
     {"popup_notification", 2, 2, f_popup_notification},
     {"popup_settext",	2, 2, f_popup_settext},
diff --git a/src/popupwin.c b/src/popupwin.c
index ea1a1e1..ccf1f66 100644
--- a/src/popupwin.c
+++ b/src/popupwin.c
@@ -651,7 +651,11 @@
     if (wp->w_width > maxwidth)
 	wp->w_width = maxwidth;
     if (center_hor)
-	wp->w_wincol = (Columns - wp->w_width) / 2;
+    {
+	wp->w_wincol = (Columns - wp->w_width - extra_width) / 2;
+	if (wp->w_wincol < 0)
+	    wp->w_wincol = 0;
+    }
     else if (wp->w_popup_pos == POPPOS_BOTRIGHT
 	    || wp->w_popup_pos == POPPOS_TOPRIGHT)
     {
@@ -671,7 +675,11 @@
 	wp->w_height = Rows - wp->w_winrow;
 
     if (center_vert)
-	wp->w_winrow = (Rows - wp->w_height) / 2;
+    {
+	wp->w_winrow = (Rows - wp->w_height - extra_height) / 2;
+	if (wp->w_winrow < 0)
+	    wp->w_winrow = 0;
+    }
     else if (wp->w_popup_pos == POPPOS_BOTRIGHT
 	    || wp->w_popup_pos == POPPOS_BOTLEFT)
     {
@@ -702,7 +710,8 @@
     TYPE_NORMAL,
     TYPE_ATCURSOR,
     TYPE_NOTIFICATION,
-    TYPE_DIALOG
+    TYPE_DIALOG,
+    TYPE_MENU
 } create_type_T;
 
 /*
@@ -751,7 +760,7 @@
  * popup_create({text}, {options})
  * popup_atcursor({text}, {options})
  */
-    static void
+    static win_T *
 popup_create(typval_T *argvars, typval_T *rettv, create_type_T type)
 {
     win_T   *wp;
@@ -764,25 +773,25 @@
 	&& !(argvars[0].v_type == VAR_LIST && argvars[0].vval.v_list != NULL))
     {
 	emsg(_(e_listreq));
-	return;
+	return NULL;
     }
     if (argvars[1].v_type != VAR_DICT || argvars[1].vval.v_dict == NULL)
     {
 	emsg(_(e_dictreq));
-	return;
+	return NULL;
     }
     d = argvars[1].vval.v_dict;
 
     // Create the window and buffer.
     wp = win_alloc_popup_win();
     if (wp == NULL)
-	return;
+	return NULL;
     rettv->vval.v_number = wp->w_id;
     wp->w_popup_pos = POPPOS_TOPLEFT;
 
     buf = buflist_new(NULL, NULL, (linenr_T)0, BLN_NEW|BLN_LISTED|BLN_DUMMY);
     if (buf == NULL)
-	return;
+	return NULL;
     ml_open(buf);
 
     win_init_popup_win(wp, buf);
@@ -898,7 +907,7 @@
 		OPT_FREE|OPT_LOCAL, 0);
     }
 
-    if (type == TYPE_DIALOG)
+    if (type == TYPE_DIALOG || type == TYPE_MENU)
     {
 	int i;
 
@@ -912,6 +921,20 @@
 	}
     }
 
+    if (type == TYPE_MENU)
+    {
+	typval_T	tv;
+	callback_T	callback;
+
+	tv.v_type = VAR_STRING;
+	tv.vval.v_string = (char_u *)"popup_filter_menu";
+	callback = get_callback(&tv);
+	if (callback.cb_name != NULL)
+	    set_callback(&wp->w_filter_cb, &callback);
+
+	wp->w_p_wrap = 0;
+    }
+
     // Deal with options.
     apply_options(wp, buf, argvars[1].vval.v_dict);
 
@@ -924,6 +947,8 @@
 
     redraw_all_later(NOT_VALID);
     popup_mask_refresh = TRUE;
+
+    return wp;
 }
 
 /*
@@ -1000,6 +1025,93 @@
 }
 
 /*
+ * In a filter: check if the typed key is a mouse event that is used for
+ * dragging the popup.
+ */
+    static void
+filter_handle_drag(win_T *wp, int c, typval_T *rettv)
+{
+    int	row = mouse_row;
+    int	col = mouse_col;
+
+    if (wp->w_popup_drag
+	    && is_mouse_key(c)
+	    && (wp == popup_dragwin
+			  || wp == mouse_find_win(&row, &col, FIND_POPUP)))
+	// do not consume the key, allow for dragging the popup
+	rettv->vval.v_number = 0;
+}
+
+    static void
+popup_highlight_curline(win_T *wp)
+{
+    int	    id;
+    char    buf[100];
+
+    match_delete(wp, 1, FALSE);
+
+    id = syn_name2id((char_u *)"PopupSelected");
+    vim_snprintf(buf, sizeof(buf), "\\%%%dl.*", (int)wp->w_cursor.lnum);
+    match_add(wp, (char_u *)(id == 0 ? "PmenuSel" : "PopupSelected"),
+					     (char_u *)buf, 10, 1, NULL, NULL);
+}
+
+/*
+ * popup_filter_menu({text}, {options})
+ */
+    void
+f_popup_filter_menu(typval_T *argvars, typval_T *rettv)
+{
+    int		id = tv_get_number(&argvars[0]);
+    win_T	*wp = win_id2wp(id);
+    char_u	*key = tv_get_string(&argvars[1]);
+    typval_T	res;
+    int		c;
+    linenr_T	old_lnum;
+
+    // If the popup has been closed do not consume the key.
+    if (wp == NULL)
+	return;
+
+    c = *key;
+    if (c == K_SPECIAL && key[1] != NUL)
+	c = TO_SPECIAL(key[1], key[2]);
+
+    // consume all keys until done
+    rettv->vval.v_number = 1;
+    res.v_type = VAR_NUMBER;
+
+    old_lnum = wp->w_cursor.lnum;
+    if ((c == 'k' || c == 'K' || c == K_UP) && wp->w_cursor.lnum > 1)
+	--wp->w_cursor.lnum;
+    if ((c == 'j' || c == 'J' || c == K_DOWN)
+		       && wp->w_cursor.lnum < wp->w_buffer->b_ml.ml_line_count)
+	++wp->w_cursor.lnum;
+    if (old_lnum != wp->w_cursor.lnum)
+    {
+	popup_highlight_curline(wp);
+	return;
+    }
+
+    if (c == 'x' || c == 'X' || c == ESC || c == Ctrl_C)
+    {
+	// Cancelled, invoke callback with -1
+	res.vval.v_number = -1;
+	popup_close_and_callback(wp, &res);
+	return;
+    }
+    if (c == ' ' || c == K_KENTER || c == CAR || c == NL)
+    {
+	// Invoke callback with current index.
+	res.vval.v_number = wp->w_cursor.lnum;
+	popup_close_and_callback(wp, &res);
+	return;
+    }
+
+    filter_handle_drag(wp, c, rettv);
+}
+
+/*
  * popup_filter_yesno({text}, {options})
  */
     void
@@ -1009,36 +1121,26 @@
     win_T	*wp = win_id2wp(id);
     char_u	*key = tv_get_string(&argvars[1]);
     typval_T	res;
+    int		c;
 
     // If the popup has been closed don't consume the key.
     if (wp == NULL)
 	return;
 
+    c = *key;
+    if (c == K_SPECIAL && key[1] != NUL)
+	c = TO_SPECIAL(key[1], key[2]);
+
     // consume all keys until done
     rettv->vval.v_number = 1;
 
-    if (STRCMP(key, "y") == 0 || STRCMP(key, "Y") == 0)
+    if (c == 'y' || c == 'Y')
 	res.vval.v_number = 1;
-    else if (STRCMP(key, "n") == 0 || STRCMP(key, "N") == 0
-	    || STRCMP(key, "x") == 0 || STRCMP(key, "X") == 0
-	    || STRCMP(key, "\x1b") == 0)
+    else if (c == 'n' || c == 'N' || c == 'x' || c == 'X' || c == ESC)
 	res.vval.v_number = 0;
     else
     {
-	int	c = *key;
-	int	row = mouse_row;
-	int	col = mouse_col;
-
-	if (c == K_SPECIAL && key[1] != NUL)
-	    c = TO_SPECIAL(key[1], key[2]);
-	if (wp->w_popup_drag
-		&& is_mouse_key(c)
-		&& (wp == popup_dragwin
-			      || wp == mouse_find_win(&row, &col, FIND_POPUP)))
-	    // allow for dragging the popup
-	    rettv->vval.v_number = 0;
-
-	// ignore this key
+	filter_handle_drag(wp, c, rettv);
 	return;
     }
 
@@ -1057,6 +1159,18 @@
 }
 
 /*
+ * popup_menu({text}, {options})
+ */
+    void
+f_popup_menu(typval_T *argvars, typval_T *rettv)
+{
+    win_T *wp = popup_create(argvars, rettv, TYPE_MENU);
+
+    if (wp != NULL)
+	popup_highlight_curline(wp);
+}
+
+/*
  * popup_notification({text}, {options})
  */
     void
diff --git a/src/proto/popupwin.pro b/src/proto/popupwin.pro
index 1eb2c10..fefb031 100644
--- a/src/proto/popupwin.pro
+++ b/src/proto/popupwin.pro
@@ -8,8 +8,10 @@
 void f_popup_clear(typval_T *argvars, typval_T *rettv);
 void f_popup_create(typval_T *argvars, typval_T *rettv);
 void f_popup_atcursor(typval_T *argvars, typval_T *rettv);
+void f_popup_filter_menu(typval_T *argvars, typval_T *rettv);
 void f_popup_filter_yesno(typval_T *argvars, typval_T *rettv);
 void f_popup_dialog(typval_T *argvars, typval_T *rettv);
+void f_popup_menu(typval_T *argvars, typval_T *rettv);
 void f_popup_notification(typval_T *argvars, typval_T *rettv);
 void f_popup_close(typval_T *argvars, typval_T *rettv);
 void f_popup_hide(typval_T *argvars, typval_T *rettv);
diff --git a/src/screen.c b/src/screen.c
index 8708fd7..9886267 100644
--- a/src/screen.c
+++ b/src/screen.c
@@ -4183,7 +4183,7 @@
 		 */
 		v = (long)(ptr - line);
 		cur = wp->w_match_head;
-		shl_flag = (screen_line_flags & SLF_POPUP);
+		shl_flag = FALSE;
 		while (cur != NULL || shl_flag == FALSE)
 		{
 		    if (shl_flag == FALSE
@@ -4193,6 +4193,8 @@
 		    {
 			shl = &search_hl;
 			shl_flag = TRUE;
+			if (screen_line_flags & SLF_POPUP)
+			    continue;  // do not use search_hl
 		    }
 		    else
 			shl = &cur->hl;
@@ -4272,9 +4274,9 @@
 
 		/* Use attributes from match with highest priority among
 		 * 'search_hl' and the match list. */
-		search_attr = search_hl.attr_cur;
 		cur = wp->w_match_head;
 		shl_flag = FALSE;
+		search_attr = 0;
 		while (cur != NULL || shl_flag == FALSE)
 		{
 		    if (shl_flag == FALSE
@@ -4284,6 +4286,8 @@
 		    {
 			shl = &search_hl;
 			shl_flag = TRUE;
+			if (screen_line_flags & SLF_POPUP)
+			    continue;  // do not use search_hl
 		    }
 		    else
 			shl = &cur->hl;
@@ -5564,7 +5568,6 @@
 		{
 		    /* Use attributes from match with highest priority among
 		     * 'search_hl' and the match list. */
-		    char_attr = search_hl.attr;
 		    cur = wp->w_match_head;
 		    shl_flag = FALSE;
 		    while (cur != NULL || shl_flag == FALSE)
@@ -5576,6 +5579,8 @@
 			{
 			    shl = &search_hl;
 			    shl_flag = TRUE;
+			    if (screen_line_flags & SLF_POPUP)
+				continue;  // do not use search_hl
 			}
 			else
 			    shl = &cur->hl;
diff --git a/src/testdir/dumps/Test_popupwin_drag_01.dump b/src/testdir/dumps/Test_popupwin_drag_01.dump
index e47fbc4..c8867e3 100644
--- a/src/testdir/dumps/Test_popupwin_drag_01.dump
+++ b/src/testdir/dumps/Test_popupwin_drag_01.dump
@@ -3,8 +3,8 @@
 |3| @73
 |4| @73
 |5| @73
-|6| @32|╔+0#0000001#ffd7ff255|═@5|╗| +0#0000000#ffffff0@32
-|7| @32|║+0#0000001#ffd7ff255|1@3| @1|║| +0#0000000#ffffff0@32
-|8| @32|║+0#0000001#ffd7ff255|2@5|║| +0#0000000#ffffff0@32
-|9| @32|║+0#0000001#ffd7ff255|3@4| |║| +0#0000000#ffffff0@32
-@34|╚+0#0000001#ffd7ff255|═@5|╝| +0#0000000#ffffff0@14|1|,|1| @10|T|o|p| 
+|6| @31|╔+0#0000001#ffd7ff255|═@5|╗| +0#0000000#ffffff0@33
+|7| @31|║+0#0000001#ffd7ff255|1@3| @1|║| +0#0000000#ffffff0@33
+|8| @31|║+0#0000001#ffd7ff255|2@5|║| +0#0000000#ffffff0@33
+|9| @31|║+0#0000001#ffd7ff255|3@4| |║| +0#0000000#ffffff0@33
+@33|╚+0#0000001#ffd7ff255|═@5|╝| +0#0000000#ffffff0@15|1|,|1| @10|T|o|p| 
diff --git a/src/testdir/dumps/Test_popupwin_drag_02.dump b/src/testdir/dumps/Test_popupwin_drag_02.dump
index 7e8c30e..f03ecb8 100644
--- a/src/testdir/dumps/Test_popupwin_drag_02.dump
+++ b/src/testdir/dumps/Test_popupwin_drag_02.dump
@@ -1,9 +1,9 @@
 >1+0&#ffffff0| @73
-|2| @32|╔+0#0000001#ffd7ff255|═@5|╗| +0#0000000#ffffff0@32
-|3| @32|║+0#0000001#ffd7ff255|1@3| @1|║| +0#0000000#ffffff0@32
-|4| @32|║+0#0000001#ffd7ff255|2@5|║| +0#0000000#ffffff0@32
-|5| @32|║+0#0000001#ffd7ff255|3@4| |║| +0#0000000#ffffff0@32
-|6| @32|╚+0#0000001#ffd7ff255|═@5|╝| +0#0000000#ffffff0@32
+|2| @31|╔+0#0000001#ffd7ff255|═@5|╗| +0#0000000#ffffff0@33
+|3| @31|║+0#0000001#ffd7ff255|1@3| @1|║| +0#0000000#ffffff0@33
+|4| @31|║+0#0000001#ffd7ff255|2@5|║| +0#0000000#ffffff0@33
+|5| @31|║+0#0000001#ffd7ff255|3@4| |║| +0#0000000#ffffff0@33
+|6| @31|╚+0#0000001#ffd7ff255|═@5|╝| +0#0000000#ffffff0@33
 |7| @73
 |8| @73
 |9| @73
diff --git a/src/testdir/dumps/Test_popupwin_menu_01.dump b/src/testdir/dumps/Test_popupwin_menu_01.dump
new file mode 100644
index 0000000..debd962
--- /dev/null
+++ b/src/testdir/dumps/Test_popupwin_menu_01.dump
@@ -0,0 +1,10 @@
+>1+0&#ffffff0| @73
+|2| @30|╔+0#0000001#ffd7ff255|═@8|╗| +0#0000000#ffffff0@31
+|3| @30|║+0#0000001#ffd7ff255| @8|║| +0#0000000#ffffff0@31
+|4| @30|║+0#0000001#ffd7ff255| |o+0#0000000#5fd7ff255|n|e| +0#0000001#ffd7ff255@4|║| +0#0000000#ffffff0@31
+|5| @30|║+0#0000001#ffd7ff255| |t|w|o| @4|║| +0#0000000#ffffff0@31
+|6| @30|║+0#0000001#ffd7ff255| |a|n|o|t|h|e|r| |║| +0#0000000#ffffff0@31
+|7| @30|║+0#0000001#ffd7ff255| @8|║| +0#0000000#ffffff0@31
+|8| @30|╚+0#0000001#ffd7ff255|═@8|╝| +0#0000000#ffffff0@31
+|9| @73
+@57|1|,|1| @10|T|o|p| 
diff --git a/src/testdir/dumps/Test_popupwin_menu_02.dump b/src/testdir/dumps/Test_popupwin_menu_02.dump
new file mode 100644
index 0000000..2495edf
--- /dev/null
+++ b/src/testdir/dumps/Test_popupwin_menu_02.dump
@@ -0,0 +1,10 @@
+>1+0&#ffffff0| @73
+|2| @30|╔+0#0000001#ffd7ff255|═@8|╗| +0#0000000#ffffff0@31
+|3| @30|║+0#0000001#ffd7ff255| @8|║| +0#0000000#ffffff0@31
+|4| @30|║+0#0000001#ffd7ff255| |o|n|e| @4|║| +0#0000000#ffffff0@31
+|5| @30|║+0#0000001#ffd7ff255| |t|w|o| @4|║| +0#0000000#ffffff0@31
+|6| @30|║+0#0000001#ffd7ff255| |a+0#0000000#5fd7ff255|n|o|t|h|e|r| +0#0000001#ffd7ff255|║| +0#0000000#ffffff0@31
+|7| @30|║+0#0000001#ffd7ff255| @8|║| +0#0000000#ffffff0@31
+|8| @30|╚+0#0000001#ffd7ff255|═@8|╝| +0#0000000#ffffff0@31
+|9| @73
+@57|1|,|1| @10|T|o|p| 
diff --git a/src/testdir/dumps/Test_popupwin_menu_03.dump b/src/testdir/dumps/Test_popupwin_menu_03.dump
new file mode 100644
index 0000000..1aa7fe8
--- /dev/null
+++ b/src/testdir/dumps/Test_popupwin_menu_03.dump
@@ -0,0 +1,10 @@
+>1+0&#ffffff0| @73
+|2| @73
+|3| @73
+|4| @73
+|5| @73
+|6| @73
+|7| @73
+|8| @73
+|9| @73
+|s|e|l|e|c|t|e|d| |3| @46|1|,|1| @10|T|o|p| 
diff --git a/src/testdir/test_popupwin.vim b/src/testdir/test_popupwin.vim
index ebe2400..477cda3 100644
--- a/src/testdir/test_popupwin.vim
+++ b/src/testdir/test_popupwin.vim
@@ -902,6 +902,64 @@
   delfunc QuitCallback
 endfunc
 
+func ShowMenu(key, result)
+  let s:cb_res = 999
+  let winid = popup_menu(['one', 'two', 'something else'], {
+	  \ 'callback': 'QuitCallback',
+	  \ })
+  redraw
+  call feedkeys(a:key, "xt")
+  call assert_equal(winid, s:cb_winid)
+  call assert_equal(a:result, s:cb_res)
+endfunc
+
+func Test_popup_menu()
+  func QuitCallback(id, res)
+    let s:cb_winid = a:id
+    let s:cb_res = a:res
+  endfunc
+
+  let winid = ShowMenu(" ", 1)
+  let winid = ShowMenu("j \<CR>", 2)
+  let winid = ShowMenu("JjK \<CR>", 2)
+  let winid = ShowMenu("jjjjjj ", 3)
+  let winid = ShowMenu("kkk ", 1)
+  let winid = ShowMenu("x", -1)
+  let winid = ShowMenu("X", -1)
+  let winid = ShowMenu("\<Esc>", -1)
+  let winid = ShowMenu("\<C-C>", -1)
+
+  delfunc QuitCallback
+endfunc
+
+func Test_popup_menu_screenshot()
+  if !CanRunVimInTerminal()
+    throw 'Skipped: cannot make screendumps'
+  endif
+
+  let lines =<< trim END
+	call setline(1, range(1, 20))
+	hi PopupSelected ctermbg=lightblue
+	call popup_menu(['one', 'two', 'another'], {'callback': 'MenuDone'})
+	func MenuDone(id, res)
+	  echomsg "selected " .. a:res
+	endfunc
+  END
+  call writefile(lines, 'XtestPopupMenu')
+  let buf = RunVimInTerminal('-S XtestPopupMenu', {'rows': 10})
+  call VerifyScreenDump(buf, 'Test_popupwin_menu_01', {})
+
+  call term_sendkeys(buf, "jj")
+  call VerifyScreenDump(buf, 'Test_popupwin_menu_02', {})
+
+  call term_sendkeys(buf, " ")
+  call VerifyScreenDump(buf, 'Test_popupwin_menu_03', {})
+
+  " clean up
+  call StopVimInTerminal(buf)
+  call delete('XtestPopupMenu')
+endfunc
+
 func Test_popup_close_callback()
   func PopupDone(id, result)
     let g:result = a:result
diff --git a/src/version.c b/src/version.c
index f6bb71c..a59803b 100644
--- a/src/version.c
+++ b/src/version.c
@@ -778,6 +778,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    1558,
+/**/
     1557,
 /**/
     1556,