diff --git a/res/layout/item_group_membership.xml b/res/layout/item_group_membership.xml
index 47f99b2..91480cc 100644
--- a/res/layout/item_group_membership.xml
+++ b/res/layout/item_group_membership.xml
@@ -16,6 +16,7 @@
 
 <com.android.contacts.editor.GroupMembershipView
     xmlns:android="http://schemas.android.com/apk/res/android"
+    android:id="@+id/group_membership_view"
     android:layout_width="match_parent"
     android:layout_height="wrap_content"
     android:orientation="vertical">
diff --git a/res/values/strings.xml b/res/values/strings.xml
index bf4be1a..1c375e8 100644
--- a/res/values/strings.xml
+++ b/res/values/strings.xml
@@ -1505,7 +1505,7 @@
     <string name="create_group_dialog_title">Create new group</string>
 
     <!-- An item in the popup list of groups that triggers creation of a contact group [CHAR LIMIT=128] -->
-    <string name="create_group_item_label">[Create new group]</string>
+    <string name="create_group_item_label">Create new group</string>
 
     <!-- Shows how many groups are from the specified account [CHAR LIMIT=15] -->
     <plurals name="num_groups_in_account">
diff --git a/src/com/android/contacts/editor/GroupMembershipView.java b/src/com/android/contacts/editor/GroupMembershipView.java
index a92c49c..a8e8d03 100644
--- a/src/com/android/contacts/editor/GroupMembershipView.java
+++ b/src/com/android/contacts/editor/GroupMembershipView.java
@@ -19,6 +19,7 @@
 import com.android.contacts.GroupMetaDataLoader;
 import com.android.contacts.R;
 import com.android.contacts.interactions.GroupCreationDialogFragment;
+import com.android.contacts.interactions.GroupCreationDialogFragment.OnGroupCreatedListener;
 import com.android.contacts.model.DataKind;
 import com.android.contacts.model.EntityDelta;
 import com.android.contacts.model.EntityDelta.ValuesDelta;
@@ -35,9 +36,11 @@
 import android.util.AttributeSet;
 import android.view.View;
 import android.view.View.OnClickListener;
+import android.view.ViewGroup;
 import android.widget.AdapterView;
 import android.widget.AdapterView.OnItemClickListener;
 import android.widget.ArrayAdapter;
+import android.widget.CheckedTextView;
 import android.widget.LinearLayout;
 import android.widget.ListPopupWindow;
 import android.widget.ListView;
@@ -83,19 +86,61 @@
         }
     }
 
+    /**
+     * Extends the array adapter to show checkmarks on all but the last list item for
+     * the group membership popup.  Note that this is highly specific to the fact that the
+     * group_membership_list_item.xml is a CheckedTextView object.
+     */
+    private class GroupMembershipAdapter<T> extends ArrayAdapter<T> {
+
+        public GroupMembershipAdapter(Context context, int textViewResourceId) {
+            super(context, textViewResourceId);
+        }
+
+        public boolean getItemIsCheckable(int position) {
+            // Item is checkable if it is NOT the last one in the list
+            return position != getCount()-1;
+        }
+
+        @Override
+        public int getItemViewType(int position) {
+            return getItemIsCheckable(position) ? 0 : 1;
+        }
+
+        @Override
+        public int getViewTypeCount() {
+            return 2;
+        }
+
+        @Override
+        public View getView(int position, View convertView, ViewGroup parent) {
+            final View itemView = super.getView(position, convertView, parent);
+
+            // Hide the checkable drawable.  This assumes that the item views
+            // are CheckedTextView objects
+            final CheckedTextView checkedTextView = (CheckedTextView)itemView;
+            if (!getItemIsCheckable(position)) {
+                checkedTextView.setCheckMarkDrawable(null);
+            }
+
+            return checkedTextView;
+        }
+    }
+
     private EntityDelta mState;
     private Cursor mGroupMetaData;
     private String mAccountName;
     private String mAccountType;
     private String mDataSet;
     private TextView mGroupList;
-    private ArrayAdapter<GroupSelectionItem> mAdapter;
+    private GroupMembershipAdapter<GroupSelectionItem> mAdapter;
     private long mDefaultGroupId;
     private long mFavoritesGroupId;
     private ListPopupWindow mPopup;
     private DataKind mKind;
     private boolean mDefaultGroupVisibilityKnown;
     private boolean mDefaultGroupVisible;
+    private boolean mCreatedNewGroup;
 
     private String mNoGroupString;
     private int mPrimaryTextColor;
@@ -135,6 +180,21 @@
     public void setGroupMetaData(Cursor groupMetaData) {
         this.mGroupMetaData = groupMetaData;
         updateView();
+        // Open up the list of groups if a new group was just created.
+        if (mCreatedNewGroup) {
+            mCreatedNewGroup = false;
+            onClick(this); // This causes the popup to open.
+            if (mPopup != null) {
+                // Ensure that the newly created group is checked.
+                int position = mAdapter.getCount() - 2;
+                ListView listView = mPopup.getListView();
+                if (!listView.isItemChecked(position)) {
+                    // Newly created group is not checked, so check it.
+                    listView.setItemChecked(position, true);
+                    onItemClick(listView, null, position, listView.getItemIdAtPosition(position));
+                }
+            }
+        }
     }
 
     public void setState(EntityDelta state) {
@@ -144,6 +204,7 @@
         mAccountName = values.getAsString(RawContacts.ACCOUNT_NAME);
         mDataSet = values.getAsString(RawContacts.DATA_SET);
         mDefaultGroupVisibilityKnown = false;
+        mCreatedNewGroup = false;
         updateView();
     }
 
@@ -226,7 +287,7 @@
             return;
         }
 
-        mAdapter = new ArrayAdapter<GroupSelectionItem>(
+        mAdapter = new GroupMembershipAdapter<GroupSelectionItem>(
                 getContext(), R.layout.group_membership_list_item);
 
         mGroupMetaData.moveToPosition(-1);
@@ -356,7 +417,16 @@
         }
 
         GroupCreationDialogFragment.show(
-                ((Activity) getContext()).getFragmentManager(), mAccountType, mAccountName,
-                mDataSet);
+                ((Activity) getContext()).getFragmentManager(),
+                mAccountType,
+                mAccountName,
+                mDataSet,
+                new OnGroupCreatedListener() {
+                    @Override
+                    public void onGroupCreated() {
+                        mCreatedNewGroup = true;
+                    }
+                });
     }
+
 }
diff --git a/src/com/android/contacts/interactions/GroupCreationDialogFragment.java b/src/com/android/contacts/interactions/GroupCreationDialogFragment.java
index 224b4a0..051dc13 100644
--- a/src/com/android/contacts/interactions/GroupCreationDialogFragment.java
+++ b/src/com/android/contacts/interactions/GroupCreationDialogFragment.java
@@ -33,16 +33,38 @@
     private static final String ARG_ACCOUNT_NAME = "accountName";
     private static final String ARG_DATA_SET = "dataSet";
 
+    public static final String FRAGMENT_TAG = "createGroupDialog";
+
+    private final OnGroupCreatedListener mListener;
+
+    public interface OnGroupCreatedListener {
+        public void onGroupCreated();
+    }
+
     public static void show(
             FragmentManager fragmentManager, String accountType, String accountName,
-            String dataSet) {
-        GroupCreationDialogFragment dialog = new GroupCreationDialogFragment();
+            String dataSet, OnGroupCreatedListener listener) {
+        GroupCreationDialogFragment dialog = new GroupCreationDialogFragment(listener);
         Bundle args = new Bundle();
         args.putString(ARG_ACCOUNT_TYPE, accountType);
         args.putString(ARG_ACCOUNT_NAME, accountName);
         args.putString(ARG_DATA_SET, dataSet);
         dialog.setArguments(args);
-        dialog.show(fragmentManager, "createGroup");
+        dialog.show(fragmentManager, FRAGMENT_TAG);
+    }
+
+    public GroupCreationDialogFragment() {
+        super();
+        mListener = null;
+    }
+
+    private GroupCreationDialogFragment(OnGroupCreatedListener listener) {
+        super();
+        mListener = listener;
+    }
+
+    public OnGroupCreatedListener getOnGroupCreatedListener() {
+        return mListener;
     }
 
     @Override
@@ -61,6 +83,13 @@
         String accountName = arguments.getString(ARG_ACCOUNT_NAME);
         String dataSet = arguments.getString(ARG_DATA_SET);
 
+        // Indicate to the listener that a new group will be created.
+        // If the device is rotated, mListener will become null, so that the
+        // popup from GroupMembershipView will not be shown.
+        if (mListener != null) {
+            mListener.onGroupCreated();
+        }
+
         Activity activity = getActivity();
         activity.startService(ContactSaveService.createNewGroupIntent(activity,
                 new AccountWithDataSet(accountName, accountType, dataSet), groupLabel,