diff --git a/src/typeahead/test/typeahead.spec.js b/src/typeahead/test/typeahead.spec.js
index e2c3eebf64..746a5a2854 100644
--- a/src/typeahead/test/typeahead.spec.js
+++ b/src/typeahead/test/typeahead.spec.js
@@ -200,7 +200,7 @@ describe('typeahead tests', function () {
     };
 
     var findDropDown = function(element) {
-      return element.find('div.dropdown');
+      return element.find('ul.typeahead');
     };
 
     var findMatches = function(element) {
@@ -222,7 +222,7 @@ describe('typeahead tests', function () {
           this.message = function() {
             return "Expected '" + angular.mock.dump(this.actual) + "' to be closed.";
           };
-          return !typeaheadEl.hasClass('open') && findMatches(this.actual).length === 0;
+          return typeaheadEl.css('display')==='none' && findMatches(this.actual).length === 0;
 
         }, toBeOpenWithActive: function(noOfMatches, activeIdx) {
 
@@ -232,7 +232,7 @@ describe('typeahead tests', function () {
           this.message = function() {
             return "Expected '" + angular.mock.dump(this.actual) + "' to be opened.";
           };
-          return typeaheadEl.hasClass('open') && liEls.length === noOfMatches && $(liEls[activeIdx]).hasClass('active');
+          return typeaheadEl.css('display')==='block' && liEls.length === noOfMatches && $(liEls[activeIdx]).hasClass('active');
         }
       });
     });
@@ -391,12 +391,11 @@ describe('typeahead tests', function () {
         var inputEl = findInput(element);
 
         changeInputValueTo(element, 'b');
-        var dropdown = findDropDown(element);
 
         $document.find('body').click();
         $scope.$digest();
 
-        expect(dropdown).not.toHaveClass('open');
+        expect(element).toBeClosed();
       });
     });
 
diff --git a/src/typeahead/typeahead.js b/src/typeahead/typeahead.js
index 901f4ccbaa..6bb4ad3eaf 100644
--- a/src/typeahead/typeahead.js
+++ b/src/typeahead/typeahead.js
@@ -1,4 +1,4 @@
-angular.module('ui.bootstrap.typeahead', [])
+angular.module('ui.bootstrap.typeahead', ['ui.bootstrap.position'])
 
 /**
  * A helper service that can parse typeahead's syntax (string provided by users)
@@ -29,8 +29,7 @@ angular.module('ui.bootstrap.typeahead', [])
   };
 }])
 
-  //options - min length
-  .directive('typeahead', ['$compile', '$parse', '$q', '$document', 'typeaheadParser', function ($compile, $parse, $q, $document, typeaheadParser) {
+  .directive('typeahead', ['$compile', '$parse', '$q', '$document', '$position', 'typeaheadParser', function ($compile, $parse, $q, $document, $position, typeaheadParser) {
 
   var HOT_KEYS = [9, 13, 27, 38, 40];
 
@@ -51,6 +50,16 @@ angular.module('ui.bootstrap.typeahead', [])
 
       var isLoadingSetter = $parse(attrs.typeaheadLoading).assign || angular.noop;
 
+      //pop-up element used to display matches
+      var popUpEl = angular.element(
+        "<typeahead-popup " +
+          "matches='matches' " +
+          "active='activeIdx' " +
+          "select='select(activeIdx)' "+
+          "query='query' "+
+          "position='position'>"+
+        "</typeahead-popup>");
+
       //create a child scope for the typeahead directive so we are not polluting original scope
       //with typeahead-specific data (matches, query etc.)
       var scope = originalScope.$new();
@@ -87,6 +96,11 @@ angular.module('ui.bootstrap.typeahead', [])
               }
 
               scope.query = inputValue;
+              //position pop-up with matches - we need to re-calculate its position each time we are opening a window
+              //with matches as a pop-up might be absolute-positioned and position of an input might have changed on a page
+              //due to other elements being rendered
+              scope.position = $position.position(element);
+              scope.position.top = scope.position.top + element.prop('offsetHeight');
 
             } else {
               resetMatches();
@@ -167,15 +181,12 @@ angular.module('ui.bootstrap.typeahead', [])
         }
       });
 
-      $document.find('body').bind('click', function(){
-
+      $document.bind('click', function(){
         resetMatches();
         scope.$digest();
       });
 
-      var tplElCompiled = $compile("<typeahead-popup matches='matches' active='activeIdx' select='select(activeIdx)' "+
-        "query='query'></typeahead-popup>")(scope);
-      element.after(tplElCompiled);
+      element.after($compile(popUpEl)(scope));
     }
   };
 
@@ -188,6 +199,7 @@ angular.module('ui.bootstrap.typeahead', [])
         matches:'=',
         query:'=',
         active:'=',
+        position:'=',
         select:'&'
       },
       replace:true,
diff --git a/template/typeahead/typeahead.html b/template/typeahead/typeahead.html
index 8d4a6908b5..d535f0e438 100644
--- a/template/typeahead/typeahead.html
+++ b/template/typeahead/typeahead.html
@@ -1,7 +1,5 @@
-<div class="dropdown clearfix" ng-class="{open: isOpen()}">
-    <ul class="typeahead dropdown-menu">
-        <li ng-repeat="match in matches" ng-class="{active: isActive($index) }" ng-mouseenter="selectActive($index)">
-            <a tabindex="-1" ng-click="selectMatch($index)" ng-bind-html-unsafe="match.label | typeaheadHighlight:query"></a>
-        </li>
-    </ul>
-</div>
\ No newline at end of file
+<ul class="typeahead dropdown-menu" ng-style="{display: isOpen()&&'block' || 'none', top: position.top+'px', left: position.left+'px'}">
+    <li ng-repeat="match in matches" ng-class="{active: isActive($index) }" ng-mouseenter="selectActive($index)">
+        <a tabindex="-1" ng-click="selectMatch($index)" ng-bind-html-unsafe="match.label | typeaheadHighlight:query"></a>
+    </li>
+</ul>
\ No newline at end of file