diff --git a/res/layout/system_shortcut_content.xml b/res/layout/system_shortcut_content.xml
index ddcef09..3008339 100644
--- a/res/layout/system_shortcut_content.xml
+++ b/res/layout/system_shortcut_content.xml
@@ -22,15 +22,12 @@
         android:id="@+id/bubble_text"
         android:background="?android:attr/selectableItemBackground"
         android:gravity="start|center_vertical"
-        android:paddingTop="@dimen/bg_popup_item_vertical_padding"
-        android:paddingBottom="@dimen/bg_popup_item_vertical_padding"
         android:minHeight="@dimen/bg_popup_item_height"
         android:textAlignment="viewStart"
         android:paddingStart="@dimen/deep_shortcuts_text_padding_start"
         android:paddingEnd="@dimen/popup_padding_end"
         android:textSize="14sp"
-        android:minLines="1"
-        android:maxLines="2"
+        android:lines="1"
         android:ellipsize="end"
         android:hyphenationFrequency="full"
         android:textColor="@color/system_shortcut_text"
diff --git a/src/com/android/launcher3/popup/ArrowPopup.java b/src/com/android/launcher3/popup/ArrowPopup.java
index 0edf292..5b493c2 100644
--- a/src/com/android/launcher3/popup/ArrowPopup.java
+++ b/src/com/android/launcher3/popup/ArrowPopup.java
@@ -109,7 +109,7 @@
     protected final int mArrowPointRadius;
     protected final View mArrow;
 
-    private final int mMargin;
+    protected final int mChildContainerMargin;
 
     protected boolean mIsLeftAligned;
     protected boolean mIsAboveIcon;
@@ -145,7 +145,7 @@
         // Initialize arrow view
         final Resources resources = getResources();
         mArrowColor = getColorStateList(getContext(), R.color.popup_shade_first).getDefaultColor();
-        mMargin = resources.getDimensionPixelSize(R.dimen.popup_margin);
+        mChildContainerMargin = resources.getDimensionPixelSize(R.dimen.popup_margin);
         mArrowWidth = resources.getDimensionPixelSize(R.dimen.popup_arrow_width);
         mArrowHeight = resources.getDimensionPixelSize(R.dimen.popup_arrow_height);
         mArrow = new View(context);
@@ -249,7 +249,7 @@
             if (view.getVisibility() == VISIBLE) {
                 if (lastView != null) {
                     MarginLayoutParams mlp = (MarginLayoutParams) lastView.getLayoutParams();
-                    mlp.bottomMargin = mMargin;
+                    mlp.bottomMargin = mChildContainerMargin;
                 }
                 lastView = view;
                 MarginLayoutParams mlp = (MarginLayoutParams) lastView.getLayoutParams();
@@ -441,7 +441,7 @@
                 numVisibleChildren++;
             }
         }
-        int childMargins = (numVisibleChildren - 1) * mMargin;
+        int childMargins = (numVisibleChildren - 1) * mChildContainerMargin;
         int height = getMeasuredHeight() + extraVerticalSpace + childMargins;
         int width = getMeasuredWidth() + getPaddingLeft() + getPaddingRight();
 
diff --git a/src/com/android/launcher3/popup/PopupContainerWithArrow.java b/src/com/android/launcher3/popup/PopupContainerWithArrow.java
index 3f75ecc..9cca29a 100644
--- a/src/com/android/launcher3/popup/PopupContainerWithArrow.java
+++ b/src/com/android/launcher3/popup/PopupContainerWithArrow.java
@@ -95,6 +95,8 @@
 
     private static final int SHORTCUT_COLLAPSE_THRESHOLD = 6;
 
+    private final float mShortcutHeight;
+
     private BubbleTextView mOriginalIcon;
     private int mNumNotifications;
     private NotificationContainer mNotificationContainer;
@@ -112,6 +114,7 @@
         mStartDragThreshold = getResources().getDimensionPixelSize(
                 R.dimen.deep_shortcuts_start_drag_threshold);
         mContainerWidth = getResources().getDimensionPixelSize(R.dimen.bg_popup_item_width);
+        mShortcutHeight = getResources().getDimension(R.dimen.system_shortcut_header_height);
     }
 
     public PopupContainerWithArrow(Context context, AttributeSet attrs) {
@@ -387,16 +390,18 @@
      */
     private void addAllShortcutsMaterialU(int deepShortcutCount,
             List<SystemShortcut> systemShortcuts) {
-
         if (deepShortcutCount + systemShortcuts.size() <= SHORTCUT_COLLAPSE_THRESHOLD) {
             // add all system shortcuts including widgets shortcut to same container
             addSystemShortcutsMaterialU(systemShortcuts,
                     R.layout.system_shortcut_rows_container_material_u,
                     R.layout.system_shortcut);
-            addDeepShortcutsMaterialU(deepShortcutCount);
+            float currentHeight = (mShortcutHeight * systemShortcuts.size())
+                    + mChildContainerMargin;
+            addDeepShortcutsMaterialU(deepShortcutCount, currentHeight);
             return;
         }
 
+        float currentHeight = mShortcutHeight + mChildContainerMargin;
         List<SystemShortcut> nonWidgetSystemShortcuts =
                 getNonWidgetSystemShortcuts(systemShortcuts);
         // If total shortcuts over threshold, collapse system shortcuts to single row
@@ -411,8 +416,9 @@
             mWidgetContainer = inflateAndAdd(R.layout.widget_shortcut_container_material_u,
                     this);
             initializeWidgetShortcut(mWidgetContainer, widgetShortcutOpt.get());
+            currentHeight += mShortcutHeight + mChildContainerMargin;
         }
-        addDeepShortcutsMaterialU(deepShortcutCount);
+        addDeepShortcutsMaterialU(deepShortcutCount, currentHeight);
     }
 
     /**
@@ -497,10 +503,14 @@
     /**
      * Inflates and adds [deepShortcutCount] number of DeepShortcutView for the  to a new container
      * @param deepShortcutCount number of DeepShortcutView instances to add
+     * @param currentHeight height of popup before adding deep shortcuts
      */
-    private void addDeepShortcutsMaterialU(int deepShortcutCount) {
+    private void addDeepShortcutsMaterialU(int deepShortcutCount, float currentHeight) {
         mDeepShortcutContainer = inflateAndAdd(R.layout.deep_shortcut_container, this);
         for (int i = deepShortcutCount; i > 0; i--) {
+            currentHeight += mShortcutHeight;
+            // when there is limited vertical screen space, limit total popup rows to fit
+            if (currentHeight >= mActivityContext.getDeviceProfile().availableHeightPx) break;
             DeepShortcutView v = inflateAndAdd(R.layout.deep_shortcut_material_u,
                     mDeepShortcutContainer);
             v.getLayoutParams().width = mContainerWidth;
diff --git a/tests/src/com/android/launcher3/ui/TaplTestsLauncher3.java b/tests/src/com/android/launcher3/ui/TaplTestsLauncher3.java
index f30538d..217bec3 100644
--- a/tests/src/com/android/launcher3/ui/TaplTestsLauncher3.java
+++ b/tests/src/com/android/launcher3/ui/TaplTestsLauncher3.java
@@ -51,7 +51,6 @@
 import com.android.launcher3.tapl.FolderIcon;
 import com.android.launcher3.tapl.HomeAllApps;
 import com.android.launcher3.tapl.HomeAppIcon;
-import com.android.launcher3.tapl.HomeAppIconMenu;
 import com.android.launcher3.tapl.HomeAppIconMenuItem;
 import com.android.launcher3.tapl.Widgets;
 import com.android.launcher3.tapl.Workspace;
@@ -391,23 +390,14 @@
                 .switchToAllApps();
         allApps.freeze();
         try {
-            final HomeAppIconMenu menu = allApps
+            final HomeAppIconMenuItem menuItem = allApps
                     .getAppIcon(APP_NAME)
-                    .openDeepShortcutMenu();
-            final HomeAppIconMenuItem menuItem0 = menu.getMenuItem(0);
-            final HomeAppIconMenuItem menuItem2 = menu.getMenuItem(2);
+                    .openDeepShortcutMenu()
+                    .getMenuItem(0);
+            final String actualShortcutName = menuItem.getText();
+            final String expectedShortcutName = "Shortcut 1";
 
-            final HomeAppIconMenuItem menuItem;
-
-            final String expectedShortcutName = "Shortcut 3";
-            if (menuItem0.getText().equals(expectedShortcutName)) {
-                menuItem = menuItem0;
-            } else {
-                final String shortcutName2 = menuItem2.getText();
-                assertEquals("Wrong menu item", expectedShortcutName, shortcutName2);
-                menuItem = menuItem2;
-            }
-
+            assertEquals(expectedShortcutName, actualShortcutName);
             menuItem.dragToWorkspace(false, false);
             mLauncher.getWorkspace().getWorkspaceAppIcon(expectedShortcutName)
                     .launch(getAppPackageName());