diff --git a/src/screen.c b/src/screen.c
index 0a93f86..fae9fe7 100644
--- a/src/screen.c
+++ b/src/screen.c
@@ -3957,12 +3957,11 @@
     /*
      * Handle highlighting the last used search pattern and matches.
      * Do this for both search_hl and the match list.
-     * Not in a popup window.
+     * Do not use search_hl in a popup window.
      */
     cur = wp->w_match_head;
-    shl_flag = FALSE;
-    while ((cur != NULL || shl_flag == FALSE) && !number_only
-					   && !(screen_line_flags & SLF_POPUP))
+    shl_flag = (screen_line_flags & SLF_POPUP);
+    while ((cur != NULL || shl_flag == FALSE) && !number_only)
     {
 	if (shl_flag == FALSE)
 	{
@@ -4438,7 +4437,7 @@
 		 */
 		v = (long)(ptr - line);
 		cur = wp->w_match_head;
-		shl_flag = FALSE;
+		shl_flag = (screen_line_flags & SLF_POPUP);
 		while (cur != NULL || shl_flag == FALSE)
 		{
 		    if (shl_flag == FALSE
diff --git a/src/testdir/dumps/Test_popupwin_matches.dump b/src/testdir/dumps/Test_popupwin_matches.dump
new file mode 100644
index 0000000..ba3e720
--- /dev/null
+++ b/src/testdir/dumps/Test_popupwin_matches.dump
@@ -0,0 +1,10 @@
+|1+0#ffffff16#e000002@2| +0#0000000#ffffff0|2@2| |3@2| @63
+>4+0#ffffff16#e000002@2| +0#0000000#ffffff0|5@2| |6+0&#ffff4012@2| +0&#ffffff0@63
+|~+0#4040ff13&| @7|╔+0#0000001#ffd7ff255|═@10|╗| +0#4040ff13#ffffff0@52
+|~| @7|║+0#0000001#ffd7ff255|1+0#ffffff16#e000002@2| +0#0000001#ffd7ff255|2@2| |3@2|║| +0#4040ff13#ffffff0@52
+|~| @7|║+0#0000001#ffd7ff255|4@2| |5+0#ffffff16#e000002@2| +0#0000001#ffd7ff255|6@2|║| +0#4040ff13#ffffff0@52
+|~| @7|╚+0#0000001#ffd7ff255|═@10|╝| +0#4040ff13#ffffff0@52
+|~| @73
+|~| @73
+|~| @73
+| +0#0000000&@56|2|,|1| @10|A|l@1| 
diff --git a/src/testdir/test_popupwin.vim b/src/testdir/test_popupwin.vim
index 5983dfb..f275a49 100644
--- a/src/testdir/test_popupwin.vim
+++ b/src/testdir/test_popupwin.vim
@@ -188,6 +188,32 @@
   call delete('XtestPopup')
 endfunc
 
+func Test_popup_with_matches()
+  if !CanRunVimInTerminal()
+    throw 'Skipped: cannot make screendumps'
+  endif
+  let lines =<< trim END
+	call setline(1, ['111 222 333', '444 555 666'])
+	let winid = popup_create([
+	    \ '111 222 333',
+	    \ '444 555 666',
+	    \], {'line': 3, 'col': 10, 'border': []})
+	set hlsearch
+	/666
+	call matchadd('ErrorMsg', '111')
+	call matchadd('ErrorMsg', '444')
+	call win_execute(winid, "call matchadd('ErrorMsg', '111')")
+	call win_execute(winid, "call matchadd('ErrorMsg', '555')")
+  END
+  call writefile(lines, 'XtestPopupMatches')
+  let buf = RunVimInTerminal('-S XtestPopupMatches', {'rows': 10})
+  call VerifyScreenDump(buf, 'Test_popupwin_matches', {})
+
+  " clean up
+  call StopVimInTerminal(buf)
+  call delete('XtestPopupMatches')
+endfunc
+
 func Test_popup_all_corners()
   if !CanRunVimInTerminal()
     throw 'Skipped: cannot make screendumps'
diff --git a/src/version.c b/src/version.c
index 79faf7b..97dc393 100644
--- a/src/version.c
+++ b/src/version.c
@@ -778,6 +778,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    1511,
+/**/
     1510,
 /**/
     1509,