diff --git a/src/servers/app/ViewLayer.cpp b/src/servers/app/ViewLayer.cpp
index 2bbb1ec913..bb68f85ade 100644
--- a/src/servers/app/ViewLayer.cpp
+++ b/src/servers/app/ViewLayer.cpp
@@ -522,6 +522,9 @@ ViewLayer::_UpdateOverlayView() const
 void
 ViewLayer::UpdateOverlay()
 {
+	if (!IsVisible())
+		return;
+
 	if (_Overlay() != NULL) {
 		_UpdateOverlayView();
 	} else {
@@ -1262,9 +1265,10 @@ ViewLayer::UpdateVisibleDeep(bool parentVisible)
 	if (overlay == NULL)
 		return;
 
-	if (fVisible && !overlay->IsVisible())
+	if (fVisible && !overlay->IsVisible()) {
+		_UpdateOverlayView();
 		overlay->Show();
-	else if (!fVisible && overlay->IsVisible())
+	} else if (!fVisible && overlay->IsVisible())
 		overlay->Hide();
 }
 
diff --git a/src/servers/app/drawing/Overlay.cpp b/src/servers/app/drawing/Overlay.cpp
index 620621b40a..04e499876a 100644
--- a/src/servers/app/drawing/Overlay.cpp
+++ b/src/servers/app/drawing/Overlay.cpp
@@ -20,7 +20,8 @@ Overlay::Overlay(HWInterface& interface)
 	fHWInterface(interface),
 	fOverlayBuffer(NULL),
 	fClientData(NULL),
-	fOverlayToken(NULL)
+	fOverlayToken(NULL),
+	fVisible(false)
 {
 	fSemaphore = create_sem(1, "overlay lock");
 	fColor.SetColor(21, 16, 21, 16);
@@ -118,6 +119,7 @@ Overlay::Show()
 			return;
 	}
 
+	fVisible = true;
 	fHWInterface.ShowOverlay(this);
 }
 
@@ -128,6 +130,7 @@ Overlay::Hide()
 	if (fOverlayToken == NULL)
 		return;
 
+	fVisible = false;
 	fHWInterface.HideOverlay(this);
 }
 
@@ -186,6 +189,7 @@ Overlay::SetView(const BRect& source, const BRect& destination)
 	fWindow.width = (uint16)destination.IntegerWidth() + 1;
 	fWindow.height = (uint16)destination.IntegerHeight() + 1;
 
-	fHWInterface.UpdateOverlay(this);
+	if (fVisible)
+		fHWInterface.UpdateOverlay(this);
 }
 
diff --git a/src/servers/app/drawing/Overlay.h b/src/servers/app/drawing/Overlay.h
index f012d10b60..b95f8224df 100644
--- a/src/servers/app/drawing/Overlay.h
+++ b/src/servers/app/drawing/Overlay.h
@@ -47,8 +47,6 @@ class Overlay {
 		const RGBColor& Color() const
 			{ return fColor; }
 
-		void SetVisible(bool visible)
-			{ fVisible = visible; }
 		bool IsVisible() const
 			{ return fVisible; }