diff --git a/res/layout/notification_main.xml b/res/layout/notification_main.xml
index b2443f5..7a8cf6d 100644
--- a/res/layout/notification_main.xml
+++ b/res/layout/notification_main.xml
@@ -30,7 +30,8 @@
         android:gravity="center_vertical"
         android:background="?attr/popupColorPrimary"
         android:paddingStart="@dimen/notification_padding_start"
-        android:paddingEnd="@dimen/notification_main_text_padding_end">
+        android:paddingEnd="@dimen/notification_main_text_padding_end"
+        android:paddingBottom="16dp">
         <TextView
             android:id="@+id/title"
             android:layout_width="match_parent"
@@ -58,6 +59,7 @@
         android:layout_width="@dimen/notification_icon_size"
         android:layout_height="@dimen/notification_icon_size"
         android:layout_marginEnd="@dimen/notification_padding_end"
+        android:layout_marginBottom="8dp"
         android:layout_gravity="center_vertical|end" />
 
 </com.android.launcher3.notification.NotificationMainView>
diff --git a/res/values/dimens.xml b/res/values/dimens.xml
index 8d6b501..b90de82 100644
--- a/res/values/dimens.xml
+++ b/res/values/dimens.xml
@@ -155,6 +155,7 @@
     <dimen name="deep_shortcuts_elevation">9dp</dimen>
     <dimen name="bg_popup_item_width">220dp</dimen>
     <dimen name="bg_popup_item_height">56dp</dimen>
+    <dimen name="bg_popup_item_condensed_height">48dp</dimen>
     <dimen name="pre_drag_view_scale">6dp</dimen>
     <!-- an icon with shortcuts must be dragged this far before the container is removed. -->
     <dimen name="deep_shortcuts_start_drag_threshold">16dp</dimen>
@@ -198,7 +199,7 @@
     <!-- notification_padding_end + (icon_size - footer_icon_size) / 2 -->
     <dimen name="notification_footer_icon_row_padding">15dp</dimen>
     <dimen name="notification_header_height">32dp</dimen>
-    <dimen name="notification_main_height">80dp</dimen>
+    <dimen name="notification_main_height">96dp</dimen>
     <dimen name="notification_footer_height">32dp</dimen>
     <dimen name="notification_header_text_size">13sp</dimen>
     <dimen name="notification_header_count_text_size">12sp</dimen>
diff --git a/src/com/android/launcher3/popup/PopupContainerWithArrow.java b/src/com/android/launcher3/popup/PopupContainerWithArrow.java
index cea4bc2..c5daca0 100644
--- a/src/com/android/launcher3/popup/PopupContainerWithArrow.java
+++ b/src/com/android/launcher3/popup/PopupContainerWithArrow.java
@@ -306,6 +306,12 @@
                         shortcutsItemRoundedCorners &= ~ROUNDED_TOP_CORNERS;
                     }
                 }
+                if (itemTypeToPopulate != PopupPopulator.Item.SYSTEM_SHORTCUT_ICON
+                        && numNotifications > 0) {
+                    // Condense shortcuts height when there are notifications.
+                    item.getLayoutParams().height = res.getDimensionPixelSize(
+                            R.dimen.bg_popup_item_condensed_height);
+                }
                 mShortcutsItemView.addShortcutView(item, itemTypeToPopulate);
                 if (shouldUnroundBottomCorners) {
                     shortcutsItemRoundedCorners &= ~ROUNDED_BOTTOM_CORNERS;
diff --git a/src/com/android/launcher3/shortcuts/ShortcutsItemView.java b/src/com/android/launcher3/shortcuts/ShortcutsItemView.java
index 7f836eb..59a0386 100644
--- a/src/com/android/launcher3/shortcuts/ShortcutsItemView.java
+++ b/src/com/android/launcher3/shortcuts/ShortcutsItemView.java
@@ -23,6 +23,7 @@
 import android.graphics.Point;
 import android.graphics.Rect;
 import android.util.AttributeSet;
+import android.util.Log;
 import android.view.LayoutInflater;
 import android.view.MotionEvent;
 import android.view.View;
@@ -55,6 +56,8 @@
 public class ShortcutsItemView extends PopupItemView implements View.OnLongClickListener,
         View.OnTouchListener, LogContainerProvider {
 
+    private static final String TAG = "ShortcutsItem";
+
     private Launcher mLauncher;
     private LinearLayout mContent;
     private LinearLayout mShortcutsLayout;
@@ -183,14 +186,20 @@
     }
 
     /**
-     * Hides shortcuts until only {@param maxShortcuts} are showing.
+     * Hides shortcuts until only {@param maxShortcuts} are showing. Also sets
+     * {@link #mHiddenShortcutsHeight} to be the amount of extra space that shortcuts will
+     * require when {@link #showAllShortcuts(boolean)} is called.
      */
     public void hideShortcuts(boolean hideFromTop, int maxShortcuts) {
+        // When shortcuts are shown, they get more space allocated to them.
+        final int oldHeight = mShortcutsLayout.getChildAt(0).getLayoutParams().height;
+        final int newHeight = getResources().getDimensionPixelSize(R.dimen.bg_popup_item_height);
+        mHiddenShortcutsHeight = (newHeight - oldHeight) * mShortcutsLayout.getChildCount();
+
         int numToHide = mShortcutsLayout.getChildCount() - maxShortcuts;
         if (numToHide <= 0) {
             return;
         }
-        mHiddenShortcutsHeight = 0;
         final int numShortcuts = mShortcutsLayout.getChildCount();
         final int dir = hideFromTop ? 1 : -1;
         for (int i = hideFromTop ? 0 : numShortcuts - 1; 0 <= i && i < numShortcuts; i += dir) {
@@ -224,8 +233,16 @@
     public Animator showAllShortcuts(boolean showFromTop) {
         // First set all the shortcuts to VISIBLE.
         final int numShortcuts = mShortcutsLayout.getChildCount();
+        if (numShortcuts == 0) {
+            Log.w(TAG, "Tried to show all shortcuts but there were no shortcuts to show");
+            return null;
+        }
+        final int oldHeight = mShortcutsLayout.getChildAt(0).getLayoutParams().height;
+        final int newHeight = getResources().getDimensionPixelSize(R.dimen.bg_popup_item_height);
         for (int i = 0; i < numShortcuts; i++) {
             DeepShortcutView view = (DeepShortcutView) mShortcutsLayout.getChildAt(i);
+            view.getLayoutParams().height = newHeight;
+            view.requestLayout();
             view.setVisibility(VISIBLE);
             if (i < numShortcuts - 1) {
                 view.findViewById(R.id.divider).setVisibility(VISIBLE);
@@ -238,17 +255,13 @@
         if (showFromTop) {
             // The new shortcuts pushed the original shortcuts down, but we want to animate them
             // to that position. So we revert the translation and animate to the new.
-            animation.play(ObjectAnimator.ofFloat(mShortcutsLayout, TRANSLATION_Y,
-                    mShortcutsLayout.getTranslationY() - mHiddenShortcutsHeight,
-                    mShortcutsLayout.getTranslationY()));
+            animation.play(translateYFrom(mShortcutsLayout, -mHiddenShortcutsHeight));
         } else if (mSystemShortcutIcons != null) {
             // When adding the shortcuts from the bottom, things are a little trickier, since
             // that means they push the icons header down. To account for this, we do the same
             // translation trick as above, but on the header. Since this means leaving behind
             // a blank area where the header was, we also need to clip the background.
-            animation.play(ObjectAnimator.ofFloat(mSystemShortcutIcons, TRANSLATION_Y,
-                    mSystemShortcutIcons.getTranslationY() - mHiddenShortcutsHeight,
-                    mSystemShortcutIcons.getTranslationY()));
+            animation.play(translateYFrom(mSystemShortcutIcons, -mHiddenShortcutsHeight));
             // mPillRect is the bounds of this view before the new shortcuts were shown.
             Rect backgroundStartRect = new Rect(mPillRect);
             Rect backgroundEndRect = new Rect(mPillRect);
@@ -257,10 +270,30 @@
                     getBackgroundRadius(), backgroundStartRect, backgroundEndRect, mRoundedCorners)
                     .createRevealAnimator(this, false));
         }
+        for (int i = 0; i < numShortcuts; i++) {
+            // Animate each shortcut to its new height.
+            DeepShortcutView shortcut = (DeepShortcutView) mShortcutsLayout.getChildAt(i);
+            int heightDiff = newHeight - oldHeight;
+            int heightAdjustmentIndex = showFromTop ? numShortcuts - i - 1 : i;
+            int fromDir = showFromTop ? 1 : -1;
+            animation.play(translateYFrom(shortcut, heightDiff * heightAdjustmentIndex * fromDir));
+            // Make sure the text and icon stay centered in the shortcut.
+            animation.play(translateYFrom(shortcut.getBubbleText(), heightDiff / 2 * fromDir));
+            animation.play(translateYFrom(shortcut.getIconView(), heightDiff / 2 * fromDir));
+        }
         return animation;
     }
 
     /**
+     * Animates the translationY of the view from the given offset to the view's current translation
+     * @return an Animator, which should be started by the caller.
+     */
+    private Animator translateYFrom(View v, int diff) {
+        float finalY = v.getTranslationY();
+        return ObjectAnimator.ofFloat(v, TRANSLATION_Y, finalY + diff, finalY);
+    }
+
+    /**
      * Adds a {@link SystemShortcut.Widgets} item if there are widgets for the given ItemInfo.
      */
     public void enableWidgetsIfExist(final BubbleTextView originalIcon) {