diff --git a/scriptengines/qml/plasmoid/appletinterface.cpp b/scriptengines/qml/plasmoid/appletinterface.cpp
index b8963f42e..f5b421178 100644
--- a/scriptengines/qml/plasmoid/appletinterface.cpp
+++ b/scriptengines/qml/plasmoid/appletinterface.cpp
@@ -372,6 +372,65 @@ QStringList AppletInterface::downloadedFiles() const
     return dir.entryList(QDir::Files | QDir::NoSymLinks | QDir::Readable);
 }
 
+void AppletInterface::geometryChanged(const QRectF &newGeometry, const QRectF &oldGeometry)
+{
+    Q_UNUSED(oldGeometry)
+
+    QQuickItem::geometryChanged(newGeometry, oldGeometry);
+   
+    if (!m_uiObject || qobject_cast<ContainmentInterface *>(this)) {
+        return;
+    }
+
+    //TODO: completely arbitrary for now
+    if (newGeometry.width() < 100 || newGeometry.height() < 100) {
+        //we are already an icon: nothing to do
+        if (m_compactUiObject) {
+            return;
+        }
+
+        QQmlComponent *component = new QQmlComponent(m_appletScriptEngine->engine(), this);
+        component->loadUrl(QUrl::fromLocalFile(applet()->containment()->corona()->package().filePath("ui", "CompactApplet.qml")));
+        m_compactUiObject = component->create();
+
+        if (m_compactUiObject) {
+            //for memory management
+            component->setParent(m_compactUiObject.data());
+
+            //replace the full applet with the collapsed view
+            m_compactUiObject.data()->setProperty("visible", true);
+            m_compactUiObject.data()->setProperty("parent", QVariant::fromValue(this));
+            //set anchors
+            QQmlExpression expr(m_appletScriptEngine->engine()->rootContext(), m_compactUiObject.data(), "parent");
+            QQmlProperty prop(m_compactUiObject.data(), "anchors.fill");
+            prop.write(expr.evaluate());
+            
+            m_uiObject.data()->setProperty("parent", QVariant::fromValue(m_compactUiObject.data()));
+            m_compactUiObject.data()->setProperty("applet", QVariant::fromValue(m_uiObject.data()));
+        
+        //failed to create UI, don't do anything
+        } else {
+            qWarning() << component->errors();
+            delete component;
+        }
+
+    } else {
+        //we are already expanded: nothing to do
+        if (!m_compactUiObject) {
+            return;
+        }
+
+        m_uiObject.data()->setProperty("parent", QVariant::fromValue(this));
+        m_compactUiObject.data()->deleteLater();
+    }
+}
+
+
+
+
+
+
+
 
 ///////////// ContainmentInterface
 
@@ -463,6 +522,7 @@ void ContainmentInterface::appletAddedForward(Plasma::Applet *applet, const QPoi
     if (applet && contGraphicObject && appletGraphicObject) {
         appletGraphicObject->setProperty("visible", false);
         appletGraphicObject->setProperty("parent", QVariant::fromValue(contGraphicObject));
+
     //if an appletGraphicObject is not set, we have to display some error message
     } else if (applet && contGraphicObject) {
         QQmlComponent *component = new QQmlComponent(m_appletScriptEngine->engine(), applet);
diff --git a/scriptengines/qml/plasmoid/appletinterface.h b/scriptengines/qml/plasmoid/appletinterface.h
index 3456c4a18..1598304d7 100644
--- a/scriptengines/qml/plasmoid/appletinterface.h
+++ b/scriptengines/qml/plasmoid/appletinterface.h
@@ -215,6 +215,8 @@ Q_SIGNALS:
     void busyChanged();
 
 protected:
+    void geometryChanged(const QRectF &newGeometry, const QRectF &oldGeometry);
+
     DeclarativeAppletScript *m_appletScriptEngine;
 
 private:
@@ -226,6 +228,7 @@ private:
 
 //UI-specific members ------------------
     QWeakPointer<QObject> m_uiObject;
+    QWeakPointer<QObject> m_compactUiObject;
 
     Plasma::BackgroundHints m_backgroundHints;
     bool m_busy : 1;
diff --git a/shell/qmlpackages/desktop/contents/ui/CompactApplet.qml b/shell/qmlpackages/desktop/contents/ui/CompactApplet.qml
new file mode 100644
index 000000000..523536b51
--- /dev/null
+++ b/shell/qmlpackages/desktop/contents/ui/CompactApplet.qml
@@ -0,0 +1,51 @@
+/*
+ *  Copyright 2013 Marco Martin <mart@kde.org>
+ *
+ *  This program is free software; you can redistribute it and/or modify
+ *  it under the terms of the GNU General Public License as published by
+ *  the Free Software Foundation; either version 2 of the License, or
+ *  (at your option) any later version.
+ *
+ *  This program is distributed in the hope that it will be useful,
+ *  but WITHOUT ANY WARRANTY; without even the implied warranty of
+ *  MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+ *  GNU General Public License for more details.
+ *
+ *  You should have received a copy of the GNU General Public License
+ *  along with this program; if not, write to the Free Software
+ *  Foundation, Inc., 51 Franklin Street, Fifth Floor, Boston, MA  02110-1301, USA.
+ */
+
+import QtQuick 2.0
+import QtQuick.Window 2.0
+
+import org.kde.plasma.core 0.1 as PlasmaCore
+import org.kde.plasma.components 0.1 as PlasmaComponents
+
+Rectangle {
+    id: root
+    color: "darkgreen"
+
+    property Item applet
+
+
+    onAppletChanged: applet.parent = appletParent
+
+
+    MouseArea {
+        anchors.fill: parent
+        onClicked: popupWindow.visible = !popupWindow.visible
+    }
+
+    Window {
+        id: popupWindow
+        visible: false
+        width: 200
+        height: 200
+        Item {
+            id: appletParent
+            width: applet.implicitWidth
+            height: applet.implicitHeight
+        }
+    }
+}
diff --git a/shell/testcontainment/contents/ui/main.qml b/shell/testcontainment/contents/ui/main.qml
index 8dd2817d9..199c3af67 100644
--- a/shell/testcontainment/contents/ui/main.qml
+++ b/shell/testcontainment/contents/ui/main.qml
@@ -53,23 +53,26 @@ Rectangle {
             id: frame
             x: 50
             y: 50
-            width: 150
-            height: 150
+            width: 200
+            height: 200
+
             property alias applet: appletContainer.children
             property int small: 100
-            property int large: parent.width - width - 150
+            property int large: root.width /2
             imagePath: applet[0].backgroundHints == 0 ? "" : "widgets/background"
             MouseArea {
                 anchors.fill: parent
                 drag.target: parent
                 onClicked: {
-                    var s = (frame.x == frame.large) ? frame.small : frame.large;
+                    var s = (frame.width == frame.large) ? frame.small : frame.large;
                     frame.x = s
                     frame.height = s
+                    frame.width = s
                 }
             }
             Behavior on x { PropertyAnimation { easing.type: Easing.OutElastic; duration: 800 } }
             //Behavior on y { PropertyAnimation { easing.type: Easing.OutElastic; duration: 800 } }
+            Behavior on width { PropertyAnimation { easing.type: Easing.InOutDouble; duration: 300 } }
             Behavior on height { PropertyAnimation { easing.type: Easing.InOutDouble; duration: 300 } }
 
             Item {