diff --git a/res/values/dimens.xml b/res/values/dimens.xml
index dd8c313..ca74f15 100644
--- a/res/values/dimens.xml
+++ b/res/values/dimens.xml
@@ -182,8 +182,6 @@
     <dimen name="system_shortcut_header_icon_padding">12dp</dimen>
 
 <!-- Icon badges (with notification counts) -->
-    <dimen name="badge_size">24dp</dimen>
-    <dimen name="badge_text_size">12dp</dimen>
     <dimen name="badge_small_padding">0dp</dimen>
     <dimen name="badge_large_padding">3dp</dimen>
 
diff --git a/src/com/android/launcher3/BubbleTextView.java b/src/com/android/launcher3/BubbleTextView.java
index add0185..45dabe9 100644
--- a/src/com/android/launcher3/BubbleTextView.java
+++ b/src/com/android/launcher3/BubbleTextView.java
@@ -16,6 +16,7 @@
 
 package com.android.launcher3;
 
+import android.animation.ObjectAnimator;
 import android.content.Context;
 import android.content.res.ColorStateList;
 import android.content.res.Resources;
@@ -23,9 +24,12 @@
 import android.graphics.Bitmap;
 import android.graphics.Canvas;
 import android.graphics.Paint;
+import android.graphics.Point;
+import android.graphics.Rect;
 import android.graphics.Region;
 import android.graphics.drawable.Drawable;
 import android.util.AttributeSet;
+import android.util.Property;
 import android.util.TypedValue;
 import android.view.KeyEvent;
 import android.view.MotionEvent;
@@ -42,6 +46,7 @@
 import com.android.launcher3.folder.FolderIconPreviewVerifier;
 import com.android.launcher3.graphics.DrawableFactory;
 import com.android.launcher3.graphics.HolographicOutlineHelper;
+import com.android.launcher3.graphics.IconPalette;
 import com.android.launcher3.graphics.PreloadIconDrawable;
 import com.android.launcher3.model.PackageItemInfo;
 import com.android.launcher3.popup.PopupContainerWithArrow;
@@ -90,6 +95,28 @@
     @ViewDebug.ExportedProperty(category = "launcher")
     private int mTextColor;
 
+    private BadgeInfo mBadgeInfo;
+    private BadgeRenderer mBadgeRenderer;
+    private IconPalette mIconPalette;
+    private float mBadgeScale;
+    private boolean mForceHideBadge;
+    private Point mTempSpaceForBadgeOffset = new Point();
+    private Rect mTempIconBounds = new Rect();
+
+    private static final Property<BubbleTextView, Float> BADGE_SCALE_PROPERTY
+            = new Property<BubbleTextView, Float>(Float.TYPE, "badgeScale") {
+        @Override
+        public Float get(BubbleTextView bubbleTextView) {
+            return bubbleTextView.mBadgeScale;
+        }
+
+        @Override
+        public void set(BubbleTextView bubbleTextView, Float value) {
+            bubbleTextView.mBadgeScale = value;
+            bubbleTextView.invalidate();
+        }
+    };
+
     @ViewDebug.ExportedProperty(category = "launcher")
     private boolean mStayPressed;
     @ViewDebug.ExportedProperty(category = "launcher")
@@ -373,6 +400,7 @@
     public void draw(Canvas canvas) {
         if (!mCustomShadowsEnabled) {
             super.draw(canvas);
+            drawBadgeIfNecessary(canvas);
             return;
         }
 
@@ -399,6 +427,7 @@
         if ((getCurrentTextColor() >> 24) == 0) {
             getPaint().clearShadowLayer();
             super.draw(canvas);
+            drawBadgeIfNecessary(canvas);
             return;
         }
 
@@ -414,6 +443,50 @@
                 density * KEY_SHADOW_RADIUS, 0.0f, density * KEY_SHADOW_OFFSET, KEY_SHADOW_COLOR);
         super.draw(canvas);
         canvas.restore();
+
+        drawBadgeIfNecessary(canvas);
+    }
+
+    /**
+     * Draws the icon badge in the top right corner of the icon bounds.
+     * @param canvas The canvas to draw to.
+     */
+    private void drawBadgeIfNecessary(Canvas canvas) {
+        if (!mForceHideBadge && (hasBadge() || mBadgeScale > 0)) {
+            getIconBounds(mTempIconBounds);
+            mTempSpaceForBadgeOffset.set((getWidth() - mIconSize) / 2, getPaddingTop());
+            final int scrollX = getScrollX();
+            final int scrollY = getScrollY();
+            canvas.translate(scrollX, scrollY);
+            mBadgeRenderer.draw(canvas, mIconPalette, mBadgeInfo, mTempIconBounds, mBadgeScale,
+                    mTempSpaceForBadgeOffset);
+            canvas.translate(-scrollX, -scrollY);
+        }
+    }
+
+    public void forceHideBadge(boolean forceHideBadge) {
+        if (mForceHideBadge == forceHideBadge) {
+            return;
+        }
+        mForceHideBadge = forceHideBadge;
+
+        if (forceHideBadge) {
+            invalidate();
+        } else if (hasBadge()) {
+            ObjectAnimator.ofFloat(this, BADGE_SCALE_PROPERTY, 0, 1).start();
+        }
+    }
+
+    private boolean hasBadge() {
+        return (mBadgeInfo != null && mBadgeInfo.getNotificationCount() > 0);
+    }
+
+    public void getIconBounds(Rect outBounds) {
+        int top = getPaddingTop();
+        int left = (getWidth() - mIconSize) / 2;
+        int right = left + mIconSize;
+        int bottom = top + mIconSize;
+        outBounds.set(left, top, right, bottom);
     }
 
     @Override
@@ -519,7 +592,22 @@
             if (popup != null) {
                 popup.updateNotificationHeader(badgeInfo, itemInfo);
             }
-            ((FastBitmapDrawable) mIcon).applyIconBadge(badgeInfo, badgeRenderer, animate);
+
+            boolean wasBadged = mBadgeInfo != null;
+            boolean isBadged = badgeInfo != null;
+            float newBadgeScale = isBadged ? 1f : 0;
+            mBadgeInfo = badgeInfo;
+            mBadgeRenderer = badgeRenderer;
+            if (wasBadged || isBadged) {
+                mIconPalette = ((FastBitmapDrawable) mIcon).getIconPalette();
+                // Animate when a badge is first added or when it is removed.
+                if (animate && (wasBadged ^ isBadged) && isShown()) {
+                    ObjectAnimator.ofFloat(this, BADGE_SCALE_PROPERTY, newBadgeScale).start();
+                } else {
+                    mBadgeScale = newBadgeScale;
+                    invalidate();
+                }
+            }
         }
     }
 
diff --git a/src/com/android/launcher3/DeviceProfile.java b/src/com/android/launcher3/DeviceProfile.java
index 43f7d23..e47031a 100644
--- a/src/com/android/launcher3/DeviceProfile.java
+++ b/src/com/android/launcher3/DeviceProfile.java
@@ -197,8 +197,6 @@
         hotseatBarBottomPaddingPx = 0;
         hotseatLandGutterPx = res.getDimensionPixelSize(R.dimen.dynamic_grid_hotseat_gutter_width);
 
-        mBadgeRenderer = new BadgeRenderer(context);
-
         // Determine sizes.
         widthPx = width;
         heightPx = height;
@@ -213,6 +211,9 @@
         // Calculate the remaining vars
         updateAvailableDimensions(dm, res);
         computeAllAppsButtonSize(context);
+
+        // This is done last, after iconSizePx is calculated above.
+        mBadgeRenderer = new BadgeRenderer(context, iconSizePx);
     }
 
     DeviceProfile getMultiWindowProfile(Context context, Point mwSize) {
diff --git a/src/com/android/launcher3/FastBitmapDrawable.java b/src/com/android/launcher3/FastBitmapDrawable.java
index be3ba90..a096a1d 100644
--- a/src/com/android/launcher3/FastBitmapDrawable.java
+++ b/src/com/android/launcher3/FastBitmapDrawable.java
@@ -32,8 +32,6 @@
 import android.util.Property;
 import android.util.SparseArray;
 
-import com.android.launcher3.badge.BadgeInfo;
-import com.android.launcher3.badge.BadgeRenderer;
 import com.android.launcher3.graphics.IconPalette;
 
 public class FastBitmapDrawable extends Drawable {
@@ -77,24 +75,7 @@
     private boolean mIsPressed;
     private boolean mIsDisabled;
 
-    private BadgeInfo mBadgeInfo;
-    private BadgeRenderer mBadgeRenderer;
     private IconPalette mIconPalette;
-    private float mBadgeScale;
-
-    private static final Property<FastBitmapDrawable, Float> BADGE_SCALE_PROPERTY
-            = new Property<FastBitmapDrawable, Float>(Float.TYPE, "badgeScale") {
-        @Override
-        public Float get(FastBitmapDrawable fastBitmapDrawable) {
-            return fastBitmapDrawable.mBadgeScale;
-        }
-
-        @Override
-        public void set(FastBitmapDrawable fastBitmapDrawable, Float value) {
-            fastBitmapDrawable.mBadgeScale = value;
-            fastBitmapDrawable.invalidateSelf();
-        }
-    };
 
     private static final Property<FastBitmapDrawable, Float> BRIGHTNESS
             = new Property<FastBitmapDrawable, Float>(Float.TYPE, "brightness") {
@@ -124,30 +105,9 @@
         setFilterBitmap(true);
     }
 
-    public void applyIconBadge(final BadgeInfo badgeInfo, BadgeRenderer badgeRenderer,
-            boolean animate) {
-        boolean wasBadged = mBadgeInfo != null;
-        boolean isBadged = badgeInfo != null;
-        float newBadgeScale = isBadged ? 1f : 0;
-        mBadgeInfo = badgeInfo;
-        mBadgeRenderer = badgeRenderer;
-        if (wasBadged || isBadged) {
-            mIconPalette = getIconPalette();
-            // Animate when a badge is first added or when it is removed.
-            if (animate && (wasBadged ^ isBadged) && isVisible()) {
-                ObjectAnimator.ofFloat(this, BADGE_SCALE_PROPERTY, newBadgeScale).start();
-            } else {
-                mBadgeScale = newBadgeScale;
-                invalidateSelf();
-            }
-        }
-    }
-
     @Override
     public void draw(Canvas canvas) {
         drawInternal(canvas);
-        // Draw the icon badge in the top right corner.
-        drawBadgeIfNecessary(canvas);
     }
 
     public void drawWithBrightness(Canvas canvas, float brightness) {
@@ -161,12 +121,6 @@
         canvas.drawBitmap(mBitmap, null, getBounds(), mPaint);
     }
 
-    protected void drawBadgeIfNecessary(Canvas canvas) {
-        if (hasBadge()) {
-            mBadgeRenderer.draw(canvas, mIconPalette, mBadgeInfo, getBounds(), mBadgeScale);
-        }
-    }
-
     public IconPalette getIconPalette() {
         if (mIconPalette == null) {
             mIconPalette = IconPalette.fromDominantColor(Utilities
@@ -175,10 +129,6 @@
         return mIconPalette;
     }
 
-    private boolean hasBadge() {
-        return (mBadgeInfo != null && mBadgeInfo.getNotificationCount() > 0) || mBadgeScale > 0;
-    }
-
     @Override
     public void setColorFilter(ColorFilter cf) {
         // No op
diff --git a/src/com/android/launcher3/Workspace.java b/src/com/android/launcher3/Workspace.java
index 8f8d32c..dd2daca 100644
--- a/src/com/android/launcher3/Workspace.java
+++ b/src/com/android/launcher3/Workspace.java
@@ -2245,16 +2245,12 @@
         Point dragVisualizeOffset = null;
         Rect dragRect = null;
         if (child instanceof BubbleTextView) {
-            int iconSize = grid.iconSizePx;
-            int top = child.getPaddingTop();
-            int left = (b.getWidth() - iconSize) / 2;
-            int right = left + iconSize;
-            int bottom = top + iconSize;
-            dragLayerY += top;
-            // Note: The drag region is used to calculate drag layer offsets, but the
+            dragRect = new Rect();
+            ((BubbleTextView) child).getIconBounds(dragRect);
+            dragLayerY += dragRect.top;
+            // Note: The dragRect is used to calculate drag layer offsets, but the
             // dragVisualizeOffset in addition to the dragRect (the size) to position the outline.
             dragVisualizeOffset = new Point(- halfPadding, halfPadding);
-            dragRect = new Rect(left, top, right, bottom);
         } else if (child instanceof FolderIcon) {
             int previewSize = grid.folderIconSizePx;
             dragVisualizeOffset = new Point(- halfPadding, halfPadding - child.getPaddingTop());
diff --git a/src/com/android/launcher3/badge/BadgeRenderer.java b/src/com/android/launcher3/badge/BadgeRenderer.java
index 5896928..a1ef22f 100644
--- a/src/com/android/launcher3/badge/BadgeRenderer.java
+++ b/src/com/android/launcher3/badge/BadgeRenderer.java
@@ -22,9 +22,11 @@
 import android.graphics.Canvas;
 import android.graphics.Color;
 import android.graphics.Paint;
+import android.graphics.Point;
 import android.graphics.Rect;
 import android.graphics.Shader;
 import android.support.annotation.Nullable;
+import android.util.SparseArray;
 
 import com.android.launcher3.R;
 import com.android.launcher3.graphics.IconPalette;
@@ -36,31 +38,41 @@
  */
 public class BadgeRenderer {
 
+    // The badge sizes are defined as percentages of the app icon size.
+    private static final float SIZE_PERCENTAGE = 0.38f;
+    // Used to expand the width of the badge for each additional digit.
+    private static final float CHAR_SIZE_PERCENTAGE = 0.12f;
+    private static final float TEXT_SIZE_PERCENTAGE = 0.26f;
+    private static final float OFFSET_PERCENTAGE = 0.02f;
+
     private final Context mContext;
     private final int mSize;
+    private final int mCharSize;
     private final int mTextHeight;
+    private final int mOffset;
     private final IconDrawer mLargeIconDrawer;
     private final IconDrawer mSmallIconDrawer;
     private final Paint mTextPaint = new Paint(Paint.ANTI_ALIAS_FLAG);
     private final Paint mBackgroundPaint = new Paint(Paint.ANTI_ALIAS_FLAG
             | Paint.FILTER_BITMAP_FLAG);
-    private final Bitmap mBackgroundWithShadow;
+    private final SparseArray<Bitmap> mBackgroundsWithShadow;
 
-    public BadgeRenderer(final Context context) {
+    public BadgeRenderer(Context context, int iconSizePx) {
         mContext = context;
         Resources res = context.getResources();
-        mSize = res.getDimensionPixelSize(R.dimen.badge_size);
+        mSize = (int) (SIZE_PERCENTAGE * iconSizePx);
+        mCharSize = (int) (CHAR_SIZE_PERCENTAGE * iconSizePx);
+        mOffset = (int) (OFFSET_PERCENTAGE * iconSizePx);
+        mTextPaint.setTextSize(iconSizePx * TEXT_SIZE_PERCENTAGE);
+        mTextPaint.setTextAlign(Paint.Align.CENTER);
         mLargeIconDrawer = new IconDrawer(res.getDimensionPixelSize(R.dimen.badge_small_padding));
         mSmallIconDrawer = new IconDrawer(res.getDimensionPixelSize(R.dimen.badge_large_padding));
-        mTextPaint.setTextAlign(Paint.Align.CENTER);
-        mTextPaint.setTextSize(res.getDimensionPixelSize(R.dimen.badge_text_size));
-        mTextPaint.setFakeBoldText(true);
         // Measure the text height.
         Rect tempTextHeight = new Rect();
         mTextPaint.getTextBounds("0", 0, 1, tempTextHeight);
         mTextHeight = tempTextHeight.height();
 
-        mBackgroundWithShadow = ShadowGenerator.createCircleWithShadow(Color.WHITE, mSize);
+        mBackgroundsWithShadow = new SparseArray<>(3);
     }
 
     /**
@@ -70,29 +82,43 @@
      * @param badgeInfo Contains data to draw on the badge. Could be null if we are animating out.
      * @param iconBounds The bounds of the icon being badged.
      * @param badgeScale The progress of the animation, from 0 to 1.
+     * @param spaceForOffset How much space is available to offset the badge up and to the right.
      */
     public void draw(Canvas canvas, IconPalette palette, @Nullable BadgeInfo badgeInfo,
-            Rect iconBounds, float badgeScale) {
+            Rect iconBounds, float badgeScale, Point spaceForOffset) {
         mTextPaint.setColor(palette.textColor);
-        canvas.save(Canvas.MATRIX_SAVE_FLAG);
-        // We draw the badge relative to its center.
-        canvas.translate(iconBounds.right - mSize / 2, iconBounds.top + mSize / 2);
-        canvas.scale(badgeScale, badgeScale);
-        mBackgroundPaint.setColorFilter(palette.backgroundColorMatrixFilter);
-        int backgroundSize = mBackgroundWithShadow.getHeight(); // Same as width.
-        canvas.drawBitmap(mBackgroundWithShadow, -backgroundSize / 2, -backgroundSize / 2,
-                mBackgroundPaint);
         IconDrawer iconDrawer = badgeInfo != null && badgeInfo.isIconLarge()
                 ? mLargeIconDrawer : mSmallIconDrawer;
         Shader icon = badgeInfo == null ? null : badgeInfo.getNotificationIconForBadge(
                 mContext, palette.backgroundColor, mSize, iconDrawer.mPadding);
+        String notificationCount = icon != null || badgeInfo == null ? "0"
+                : String.valueOf(badgeInfo.getNotificationCount());
+        int numChars = notificationCount.length();
+        int width = mSize + mCharSize * (numChars - 1);
+        // Lazily load the background with shadow.
+        Bitmap backgroundWithShadow = mBackgroundsWithShadow.get(numChars);
+        if (backgroundWithShadow == null) {
+            backgroundWithShadow = ShadowGenerator.createPillWithShadow(Color.WHITE, width, mSize);
+            mBackgroundsWithShadow.put(numChars, backgroundWithShadow);
+        }
+        canvas.save(Canvas.MATRIX_SAVE_FLAG);
+        // We draw the badge relative to its center.
+        int badgeCenterX = iconBounds.right - width / 2;
+        int badgeCenterY = iconBounds.top + mSize / 2;
+        int offsetX = Math.min(mOffset, spaceForOffset.x);
+        int offsetY = Math.min(mOffset, spaceForOffset.y);
+        canvas.translate(badgeCenterX + offsetX, badgeCenterY - offsetY);
+        canvas.scale(badgeScale, badgeScale);
+        // Draw the background and shadow.
+        mBackgroundPaint.setColorFilter(palette.backgroundColorMatrixFilter);
+        int backgroundWithShadowSize = backgroundWithShadow.getHeight(); // Same as width.
+        canvas.drawBitmap(backgroundWithShadow, -backgroundWithShadowSize / 2,
+                -backgroundWithShadowSize / 2, mBackgroundPaint);
         if (icon != null) {
             // Draw the notification icon with padding.
             iconDrawer.drawIcon(icon, canvas);
         } else {
             // Draw the notification count.
-            String notificationCount = badgeInfo == null ? "0"
-                    : String.valueOf(badgeInfo.getNotificationCount());
             canvas.drawText(notificationCount, 0, mTextHeight / 2, mTextPaint);
         }
         canvas.restore();
diff --git a/src/com/android/launcher3/folder/FolderIcon.java b/src/com/android/launcher3/folder/FolderIcon.java
index ced9c9e..6f10d84 100644
--- a/src/com/android/launcher3/folder/FolderIcon.java
+++ b/src/com/android/launcher3/folder/FolderIcon.java
@@ -27,6 +27,7 @@
 import android.graphics.Matrix;
 import android.graphics.Paint;
 import android.graphics.Path;
+import android.graphics.Point;
 import android.graphics.PorterDuff;
 import android.graphics.PorterDuffXfermode;
 import android.graphics.RadialGradient;
@@ -121,7 +122,7 @@
     private PreviewLayoutRule mPreviewLayoutRule;
 
     boolean mAnimating = false;
-    private Rect mOldBounds = new Rect();
+    private Rect mTempBounds = new Rect();
 
     private float mSlop;
 
@@ -135,6 +136,7 @@
     private FolderBadgeInfo mBadgeInfo = new FolderBadgeInfo();
     private BadgeRenderer mBadgeRenderer;
     private float mBadgeScale;
+    private Point mTempSpaceForBadgeOffset = new Point();
 
     private static final Property<FolderIcon, Float> BADGE_SCALE_PROPERTY
             = new Property<FolderIcon, Float>(Float.TYPE, "badgeScale") {
@@ -503,7 +505,7 @@
         Drawable d = params.drawable;
 
         if (d != null) {
-            mOldBounds.set(d.getBounds());
+            mTempBounds.set(d.getBounds());
             d.setBounds(0, 0, mIntrinsicIconSize, mIntrinsicIconSize);
             if (d instanceof FastBitmapDrawable) {
                 FastBitmapDrawable fd = (FastBitmapDrawable) d;
@@ -514,7 +516,7 @@
                 d.draw(canvas);
                 d.clearColorFilter();
             }
-            d.setBounds(mOldBounds);
+            d.setBounds(mTempBounds);
         }
         canvas.restore();
     }
@@ -893,14 +895,16 @@
         }
 
         if ((mBadgeInfo != null && mBadgeInfo.getNotificationCount() > 0) || mBadgeScale > 0) {
-            // If we are animating to the accepting state, animate the badge out.
             int offsetX = mBackground.getOffsetX();
             int offsetY = mBackground.getOffsetY();
             int previewSize = (int) (mBackground.previewSize * mBackground.mScale);
-            Rect bounds = new Rect(offsetX, offsetY, offsetX + previewSize, offsetY + previewSize);
+            mTempBounds.set(offsetX, offsetY, offsetX + previewSize, offsetY + previewSize);
 
+            // If we are animating to the accepting state, animate the badge out.
             float badgeScale = Math.max(0, mBadgeScale - mBackground.getScaleProgress());
-            mBadgeRenderer.draw(canvas, IconPalette.FOLDER_ICON_PALETTE, mBadgeInfo, bounds, badgeScale);
+            mTempSpaceForBadgeOffset.set(getWidth() - mTempBounds.right, mTempBounds.top);
+            mBadgeRenderer.draw(canvas, IconPalette.FOLDER_ICON_PALETTE, mBadgeInfo, mTempBounds,
+                    badgeScale, mTempSpaceForBadgeOffset);
         }
     }
 
diff --git a/src/com/android/launcher3/graphics/IconPalette.java b/src/com/android/launcher3/graphics/IconPalette.java
index cd7cf70..c45f481 100644
--- a/src/com/android/launcher3/graphics/IconPalette.java
+++ b/src/com/android/launcher3/graphics/IconPalette.java
@@ -173,12 +173,12 @@
     }
 
     private static int getMutedColor(int color) {
-        int alpha = (int) (255 * 0.15f);
-        return ColorUtils.compositeColors(ColorUtils.setAlphaComponent(color, alpha), Color.WHITE);
+        int whiteScrim = ColorUtils.setAlphaComponent(Color.WHITE, (int) (255 * 0.87f));
+        return ColorUtils.compositeColors(whiteScrim, color);
     }
 
     private static int getTextColorForBackground(int backgroundColor) {
-        return getLighterOrDarkerVersionOfColor(backgroundColor, 3f);
+        return getLighterOrDarkerVersionOfColor(backgroundColor, 4.5f);
     }
 
     private static int getLowContrastColor(int color) {
diff --git a/src/com/android/launcher3/graphics/ShadowGenerator.java b/src/com/android/launcher3/graphics/ShadowGenerator.java
index 6c603c9..5dd8d20 100644
--- a/src/com/android/launcher3/graphics/ShadowGenerator.java
+++ b/src/com/android/launcher3/graphics/ShadowGenerator.java
@@ -83,34 +83,44 @@
         return result;
     }
 
-    public static Bitmap createCircleWithShadow(int circleColor, int diameter) {
+    public static Bitmap createPillWithShadow(int rectColor, int width, int height) {
 
-        float shadowRadius = diameter * 1f / 32;
-        float shadowYOffset = diameter * 1f / 16;
+        float shadowRadius = height * 1f / 32;
+        float shadowYOffset = height * 1f / 16;
+        int ambientShadowAlpha = AMBIENT_SHADOW_ALPHA / 2;
+        int keyShadowAlpha = KEY_SHADOW_ALPHA / 2;
 
-        int radius = diameter / 2;
+        int radius = height / 2;
 
         Canvas canvas = new Canvas();
         Paint blurPaint = new Paint(Paint.ANTI_ALIAS_FLAG | Paint.FILTER_BITMAP_FLAG);
         blurPaint.setMaskFilter(new BlurMaskFilter(shadowRadius, Blur.NORMAL));
 
-        int center = Math.round(radius + shadowRadius + shadowYOffset);
+        int centerX = Math.round(width / 2 + shadowRadius);
+        int centerY = Math.round(radius + shadowRadius + shadowYOffset);
+        int center = Math.max(centerX, centerY);
         int size = center * 2;
         Bitmap result = Bitmap.createBitmap(size, size, Config.ARGB_8888);
         canvas.setBitmap(result);
 
+        int left = center - width / 2;
+        int top = center - height / 2;
+        int right = center + width / 2;
+        int bottom = center + height / 2;
+
         // Draw ambient shadow, center aligned within size
-        blurPaint.setAlpha(AMBIENT_SHADOW_ALPHA);
-        canvas.drawCircle(center, center, radius, blurPaint);
+        blurPaint.setAlpha(ambientShadowAlpha);
+        canvas.drawRoundRect(left, top, right, bottom, radius, radius, blurPaint);
 
         // Draw key shadow, bottom aligned within size
-        blurPaint.setAlpha(KEY_SHADOW_ALPHA);
-        canvas.drawCircle(center, center + shadowYOffset, radius, blurPaint);
+        blurPaint.setAlpha(keyShadowAlpha);
+        canvas.drawRoundRect(left, top + shadowYOffset, right, bottom + shadowYOffset,
+                radius, radius, blurPaint);
 
         // Draw the circle
         Paint drawPaint = new Paint(Paint.ANTI_ALIAS_FLAG | Paint.FILTER_BITMAP_FLAG);
-        drawPaint.setColor(circleColor);
-        canvas.drawCircle(center, center, radius, drawPaint);
+        drawPaint.setColor(rectColor);
+        canvas.drawRoundRect(left, top, right, bottom, radius, radius, drawPaint);
 
         return result;
     }
diff --git a/src/com/android/launcher3/popup/PopupContainerWithArrow.java b/src/com/android/launcher3/popup/PopupContainerWithArrow.java
index a4823ae..ee64ef9 100644
--- a/src/com/android/launcher3/popup/PopupContainerWithArrow.java
+++ b/src/com/android/launcher3/popup/PopupContainerWithArrow.java
@@ -213,8 +213,8 @@
         animateOpen();
 
         mOriginalIcon = originalIcon;
-
         mLauncher.getDragController().addDragListener(this);
+        mOriginalIcon.forceHideBadge(true);
 
         // Load the shortcuts on a background thread and update the container as it animates.
         final Looper workerLooper = LauncherModel.getWorkerLooper();
@@ -799,6 +799,7 @@
         });
         mOpenCloseAnimator = shortcutAnims;
         shortcutAnims.start();
+        mOriginalIcon.forceHideBadge(false);
     }
 
     /**
@@ -814,6 +815,7 @@
         boolean isInHotseat = ((ItemInfo) mOriginalIcon.getTag()).container
                 == LauncherSettings.Favorites.CONTAINER_HOTSEAT;
         mOriginalIcon.setTextVisibility(!isInHotseat);
+        mOriginalIcon.forceHideBadge(false);
         mLauncher.getDragController().removeDragListener(this);
         mLauncher.getDragLayer().removeView(this);
     }