diff --git a/src/com/android/ex/chips/RecipientEditTextView.java b/src/com/android/ex/chips/RecipientEditTextView.java
index 8f71782..e89e029 100644
--- a/src/com/android/ex/chips/RecipientEditTextView.java
+++ b/src/com/android/ex/chips/RecipientEditTextView.java
@@ -516,7 +516,8 @@
                 // Set the dropdown height to be the remaining height from the anchor to the bottom.
                 mDropdownAnchor.getLocationInWindow(mCoords);
                 getWindowVisibleDisplayFrame(mRect);
-                setDropDownHeight(mRect.bottom - mCoords[1] - mDropdownAnchor.getHeight());
+                setDropDownHeight(mRect.bottom - mCoords[1] - mDropdownAnchor.getHeight() -
+                    getDropDownVerticalOffset());
 
                 mCurrentSuggestionCount = entries == null ? 0 : entries.size();
             }