diff --git a/src/servers/app/ViewLayer.cpp b/src/servers/app/ViewLayer.cpp
index 17594d00b3..d13c72c817 100644
--- a/src/servers/app/ViewLayer.cpp
+++ b/src/servers/app/ViewLayer.cpp
@@ -515,6 +515,28 @@ ViewLayer::_UpdateOverlayView() const
 }
 
 
+/*!
+	This method is called whenever the window is resized or moved - would
+	be nice to have a better solution for this, though.
+*/
+void
+ViewLayer::UpdateOverlay()
+{
+	if (!IsVisible())
+		return;
+
+	if (_Overlay() != NULL) {
+		_UpdateOverlayView();
+	} else {
+		// recursively ask children of this view
+
+		for (ViewLayer* child = FirstChild(); child; child = child->NextSibling()) {
+			child->UpdateOverlay();
+		}
+	}
+}
+
+
 void
 ViewLayer::ConvertToParent(BPoint* point) const
 {
@@ -756,9 +778,6 @@ ViewLayer::MoveBy(int32 x, int32 y, BRegion* dirtyRegion)
 		// the screen clipping
 		InvalidateScreenClipping(true);
 	}
-
-	// overlay handling
-	_UpdateOverlayView();
 }
 
 // ResizeBy
@@ -822,9 +841,6 @@ ViewLayer::ResizeBy(int32 x, int32 y, BRegion* dirtyRegion)
 	// TODO: when the implementation of Hide() and Show() is
 	// complete, see if this should be avoided
 	RebuildClipping(false);
-
-	// overlay handling
-	_UpdateOverlayView();
 }
 
 // ParentResized
diff --git a/src/servers/app/ViewLayer.h b/src/servers/app/ViewLayer.h
index 3e3a7080c6..daf99403fe 100644
--- a/src/servers/app/ViewLayer.h
+++ b/src/servers/app/ViewLayer.h
@@ -183,6 +183,8 @@ class ViewLayer {
 			// according to the parents visibility
 			void			UpdateVisibleDeep(bool parentVisible);
 
+			void			UpdateOverlay();
+
 			void			MarkBackgroundDirty();
 			bool			IsBackgroundDirty() const
 								{ return fBackgroundDirty; }
diff --git a/src/servers/app/WindowLayer.cpp b/src/servers/app/WindowLayer.cpp
index a828387fff..f1dcfeba28 100644
--- a/src/servers/app/WindowLayer.cpp
+++ b/src/servers/app/WindowLayer.cpp
@@ -316,8 +316,10 @@ WindowLayer::MoveBy(int32 x, int32 y)
 	if (fDecorator)
 		fDecorator->MoveBy(x, y);
 
-	if (fTopLayer != NULL)
+	if (fTopLayer != NULL) {
 		fTopLayer->MoveBy(x, y, NULL);
+		fTopLayer->UpdateOverlay();
+	}
 
 	// the desktop will take care of dirty regions
 
@@ -373,8 +375,10 @@ WindowLayer::ResizeBy(int32 x, int32 y, BRegion* dirtyRegion)
 //}
 	}
 
-	if (fTopLayer != NULL)
+	if (fTopLayer != NULL) {
 		fTopLayer->ResizeBy(x, y, dirtyRegion);
+		fTopLayer->UpdateOverlay();
+	}
 
 //if (dirtyRegion)
 //fDrawingEngine->FillRegion(*dirtyRegion, RGBColor(0, 255, 255, 255));