diff --git a/src/common.css b/src/common.css
index e1026d4a1..3ea3fb857 100644
--- a/src/common.css
+++ b/src/common.css
@@ -56,7 +56,8 @@ body > .select2-container.open {
 
     box-shadow: 0 -4px 8px rgba(0, 0, 0, 0.25);
 
-    margin-top: -4px; /* FIXME hardcoded value :-/ */
+    margin-top: 1px;  /* FIXME hardcoded value :-/ */
+    border-bottom-width: 0;
 }
 .ui-select-container[theme="select2"].direction-up .ui-select-dropdown .select2-search {
     margin-top: 4px; /* FIXME hardcoded value :-/ */
diff --git a/src/uiSelectDirective.js b/src/uiSelectDirective.js
index 0f537d196..874b90243 100644
--- a/src/uiSelectDirective.js
+++ b/src/uiSelectDirective.js
@@ -256,6 +256,21 @@ uis.directive('uiSelect',
         var dropdown = null,
             directionUpClassName = 'direction-up';
 
+        var repositionUpwardDropdown = function () {
+          if (!$select.open || !element.hasClass(directionUpClassName)) {
+            return;
+          }
+
+          if ($select.open) {
+            dropdown = angular.element(element).querySelectorAll('.ui-select-dropdown');
+            if (dropdown === null) {
+              return;
+            }
+            var offsetDropdown = uisOffset(dropdown);
+            dropdown[0].style.top = offsetDropdown.height * -1 + 'px';
+          }
+        };
+
         // Support changing the direction of the dropdown if there isn't enough space to render it.
         scope.$watch('$select.open', function(isOpen) {
           if (isOpen) {
@@ -274,9 +289,14 @@ uis.directive('uiSelect',
 
               // Determine if the direction of the dropdown needs to be changed.
               if (offset.top + offset.height + offsetDropdown.height > $document[0].documentElement.scrollTop + $document[0].documentElement.clientHeight) {
+                element.addClass(directionUpClassName);
+                offsetDropdown = uisOffset(dropdown); // recalculate after class changed
                 dropdown[0].style.position = 'absolute';
                 dropdown[0].style.top = (offsetDropdown.height * -1) + 'px';
-                element.addClass(directionUpClassName);
+                // Reposition upward dropdown each time the collection of items changes
+                scope.$watchCollection('$select.items', function() {
+                  $timeout(repositionUpwardDropdown);
+                });
               }
 
               // Display the dropdown once it has been positioned.