diff --git a/browser/base/content/tabview/groupitems.js b/browser/base/content/tabview/groupitems.js
index 664d48eb445..5f2fd8d858a 100644
--- a/browser/base/content/tabview/groupitems.js
+++ b/browser/base/content/tabview/groupitems.js
@@ -300,7 +300,9 @@ GroupItem.prototype = Utils.extend(new Item(), new Subscribable(), {
         "tab must be null (if no children) or a TabItem");
 
     this._activeTab = tab;
-    this.arrange({immediately: true});
+
+    if (this.isStacked())
+      this.arrange({immediately: true});
   },
 
   // -----------
diff --git a/browser/base/content/test/tabview/Makefile.in b/browser/base/content/test/tabview/Makefile.in
index de7335c91ad..76b6ec7cbe3 100644
--- a/browser/base/content/test/tabview/Makefile.in
+++ b/browser/base/content/test/tabview/Makefile.in
@@ -150,6 +150,7 @@ _BROWSER_FILES = \
                  browser_tabview_bug656778.js \
                  browser_tabview_bug656913.js \
                  browser_tabview_bug662266.js \
+                 browser_tabview_bug665502.js \
                  browser_tabview_dragdrop.js \
                  browser_tabview_exit_button.js \
                  browser_tabview_expander.js \
diff --git a/browser/base/content/test/tabview/browser_tabview_bug665502.js b/browser/base/content/test/tabview/browser_tabview_bug665502.js
new file mode 100644
index 00000000000..bf986dd1c7b
--- /dev/null
+++ b/browser/base/content/test/tabview/browser_tabview_bug665502.js
@@ -0,0 +1,33 @@
+/* Any copyright is dedicated to the Public Domain.
+   http://creativecommons.org/publicdomain/zero/1.0/ */
+
+function test() {
+  waitForExplicitFinish();
+
+  let onLoad = function (win) {
+    for (let i = 0; i < 2; i++)
+      win.gBrowser.addTab();
+  };
+
+  let onShow = function (win) {
+    registerCleanupFunction(function () win.close());
+
+    let cw = win.TabView.getContentWindow();
+    let groupItem = cw.GroupItems.groupItems[0];
+
+    groupItem.setSize(400, 200, true);
+
+    let tabItem = groupItem.getChild(0);
+    let bounds = tabItem.getBounds();
+
+    is(groupItem.getActiveTab(), tabItem, "the first tab is active");
+    tabItem.close();
+
+    is(groupItem.getChildren().indexOf(tabItem), -1, "tabItem got removed");
+    ok(bounds.equals(groupItem.getChild(0).getBounds()), "tabItem bounds didn't change");
+
+    finish();
+  };
+
+  newWindowWithTabView(onShow, onLoad);
+}