diff --git a/sdk/lib/rendering/box.dart b/sdk/lib/rendering/box.dart
index f6de4f4e61b..515f58c9f43 100644
--- a/sdk/lib/rendering/box.dart
+++ b/sdk/lib/rendering/box.dart
@@ -494,7 +494,35 @@ class RenderConstrainedBox extends RenderProxyBox {
 }
 
 class RenderShrinkWrapWidth extends RenderProxyBox {
-  RenderShrinkWrapWidth({ RenderBox child }) : super(child);
+  RenderShrinkWrapWidth({
+    double stepWidth,
+    double stepHeight,
+    RenderBox child
+  }) : _stepWidth = stepWidth, _stepHeight = stepHeight, super(child);
+
+  double _stepWidth;
+  double get stepWidth => _stepWidth;
+  void set stepWidth(double value) {
+    if (value == _stepWidth)
+      return;
+    _stepWidth = value;
+    markNeedsLayout();
+  }
+
+  double _stepHeight;
+  double get stepHeight => _stepHeight;
+  void set stepHeight(double value) {
+    if (value == _stepHeight)
+      return;
+    _stepHeight = value;
+    markNeedsLayout();
+  }
+
+  static double applyStep(double input, double step) {
+    if (step == null)
+      return input;
+    return (input / step).ceil() * step;
+  }
 
   BoxConstraints _getInnerConstraints(BoxConstraints constraints) {
     double width = child.getMaxIntrinsicWidth(constraints);
@@ -503,33 +531,37 @@ class RenderShrinkWrapWidth extends RenderProxyBox {
   }
 
   double getMinIntrinsicWidth(BoxConstraints constraints) {
-    if (child != null)
-      return child.getMaxIntrinsicWidth(constraints);
-    return constraints.constrainWidth(0.0);
+    if (child == null)
+      return constraints.constrainWidth(0.0);
+    double childResult = child.getMinIntrinsicWidth(constraints);
+    return constraints.constrainWidth(applyStep(childResult, _stepWidth));
   }
 
   double getMaxIntrinsicWidth(BoxConstraints constraints) {
-    if (child != null)
-      return child.getMaxIntrinsicWidth(constraints);
-    return constraints.constrainWidth(0.0);
+    if (child == null)
+      return constraints.constrainWidth(0.0);
+    double childResult = child.getMaxIntrinsicWidth(constraints);
+    return constraints.constrainWidth(applyStep(childResult, _stepWidth));
   }
 
   double getMinIntrinsicHeight(BoxConstraints constraints) {
-    if (child != null)
-      return child.getMinIntrinsicHeight(_getInnerConstraints(constraints));
-    return constraints.constrainWidth(0.0);
+    if (child == null)
+      return constraints.constrainWidth(0.0);
+    double childResult = child.getMinIntrinsicHeight(_getInnerConstraints(constraints));
+    return constraints.constrainHeight(applyStep(childResult, _stepHeight));
   }
 
   double getMaxIntrinsicHeight(BoxConstraints constraints) {
-    if (child != null)
-      return child.getMaxIntrinsicHeight(_getInnerConstraints(constraints));
-    return constraints.constrainWidth(0.0);
+    if (child == null)
+      return constraints.constrainWidth(0.0);
+    double childResult = child.getMaxIntrinsicHeight(_getInnerConstraints(constraints));
+    return constraints.constrainHeight(applyStep(childResult, _stepHeight));
   }
 
   void performLayout() {
     if (child != null) {
       child.layout(_getInnerConstraints(constraints), parentUsesSize: true);
-      size = child.size;
+      size = new Size(applyStep(child.size.width, _stepWidth), applyStep(child.size.height, _stepHeight));
     } else {
       performResize();
     }
diff --git a/sdk/lib/widgets/basic.dart b/sdk/lib/widgets/basic.dart
index d64ec052740..cfbbdf8a764 100644
--- a/sdk/lib/widgets/basic.dart
+++ b/sdk/lib/widgets/basic.dart
@@ -231,11 +231,27 @@ class ConstrainedBox extends OneChildRenderObjectWrapper {
 }
 
 class ShrinkWrapWidth extends OneChildRenderObjectWrapper {
-  ShrinkWrapWidth({ String key, Widget child })
-    : super(key: key, child: child);
+
+  ShrinkWrapWidth({
+    String key,
+    this.stepWidth,
+    this.stepHeight,
+    Widget child
+  }): super(key: key, child: child);
 
   RenderShrinkWrapWidth get root => super.root;
+
+  final double stepWidth;
+  final double stepHeight;
+
   RenderShrinkWrapWidth createNode() => new RenderShrinkWrapWidth();
+
+  void syncRenderObject(ShrinkWrapWidth old) {
+    super.syncRenderObject(old);
+    root.stepWidth = stepWidth;
+    root.stepHeight = stepHeight;
+  }
+
 }
 
 class SizeObserver extends OneChildRenderObjectWrapper {
diff --git a/sdk/lib/widgets/popup_menu.dart b/sdk/lib/widgets/popup_menu.dart
index 336b90280b7..6fdf366dc30 100644
--- a/sdk/lib/widgets/popup_menu.dart
+++ b/sdk/lib/widgets/popup_menu.dart
@@ -17,6 +17,10 @@ import 'popup_menu_item.dart';
 const double _kMenuOpenDuration = 300.0;
 const double _kMenuCloseDuration = 200.0;
 const double _kMenuCloseDelay = 100.0;
+const double _kMenuWidthStep = 56.0;
+const double _kMenuMinWidth = 1.5 * _kMenuWidthStep;
+const double _kMenuHorizontalPadding = 16.0;
+const double _kMenuVerticalPadding = 8.0;
 
 enum MenuState { hidden, opening, open, closing }
 
@@ -64,7 +68,7 @@ class PopupMenu extends AnimatedComponent {
   }
 
   PopupMenuController controller;
-  List<Widget> items;
+  List<PopupMenuItem> items;
   int level;
 
   void syncFields(PopupMenu source) {
@@ -95,16 +99,25 @@ class PopupMenu extends AnimatedComponent {
 
     return new Opacity(
       opacity: math.min(1.0, controller.position.value * 3.0),
-      child: new ShrinkWrapWidth(
-        child: new CustomPaint(
-          callback: (sky.Canvas canvas, Size size) {
-            double width = math.min(size.width, size.width * (0.5 + controller.position.value * 2.0));
-            double height = math.min(size.height, size.height * controller.position.value * 1.5);
-            _painter.paint(canvas, new Rect.fromLTRB(size.width - width, 0.0, width, height));
-          },
-          child: new Container(
-            padding: const EdgeDims.all(8.0),
-            child: new Block(children)
+      child: new CustomPaint(
+        callback: (sky.Canvas canvas, Size size) {
+          double width = math.min(size.width, size.width * (0.5 + controller.position.value * 2.0));
+          double height = math.min(size.height, size.height * controller.position.value * 1.5);
+          _painter.paint(canvas, new Rect.fromLTRB(size.width - width, 0.0, width, height));
+        },
+        child: new ConstrainedBox(
+          constraints: new BoxConstraints(
+            minWidth: _kMenuMinWidth
+          ),
+          child: new ShrinkWrapWidth(
+            stepWidth: _kMenuWidthStep,
+            child: new Container(
+              padding: const EdgeDims.symmetric(
+                horizontal: _kMenuHorizontalPadding,
+                vertical: _kMenuVerticalPadding
+              ),
+              child: new Block(children)
+            )
           )
         )
       )
diff --git a/sdk/lib/widgets/popup_menu_item.dart b/sdk/lib/widgets/popup_menu_item.dart
index 42c0ce40ad6..17147cd10a8 100644
--- a/sdk/lib/widgets/popup_menu_item.dart
+++ b/sdk/lib/widgets/popup_menu_item.dart
@@ -21,8 +21,7 @@ class PopupMenuItem extends Component {
       opacity: opacity,
       child: new InkWell(
         child: new Container(
-          constraints: const BoxConstraints(minWidth: 112.0),
-          padding: const EdgeDims.all(16.0),
+          height: 48.0,
           child: new DefaultTextStyle(
             style: textStyle,
             child: child