diff --git a/ChangeLog b/ChangeLog
index f5f9f626a6..c048fffaa1 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,5 +1,10 @@
 2006-06-03  David Hampton  <hampton@employees.org>
 
+	* src/register/register-gnome/combocell-gnome.c:
+	* src/register/register-gnome/gnucash-item-list.[ch]: Only use the
+	amount of space required to show all the entries in the popup, not
+	all the available space. Fixes #343242.
+
 	* src/register/register-gnome/gnucash-sheet.c: The register code
 	shouldn't process any keystrokes that have a "modifier" (e.g. Alt,
 	Meta, etc.) key pressed.  This allows Alt-Ctl-Pgup/Down in a
diff --git a/src/register/register-gnome/combocell-gnome.c b/src/register/register-gnome/combocell-gnome.c
index 8925ecec9e..ad6c2de0f0 100644
--- a/src/register/register-gnome/combocell-gnome.c
+++ b/src/register/register-gnome/combocell-gnome.c
@@ -785,7 +785,11 @@ get_popup_height (GnomeCanvasItem *item,
                   int row_height,
                   gpointer user_data)
 {
-        return space_available;
+        PopBox *box = user_data;
+        int count, pad = 4;
+
+        count = gnc_item_list_num_entries(box->item_list);
+        return MIN(space_available, (count * (row_height + pad)) + pad);
 }
 
 static int
diff --git a/src/register/register-gnome/gnucash-item-list.c b/src/register/register-gnome/gnucash-item-list.c
index 13b00fce9b..271c1c5840 100644
--- a/src/register/register-gnome/gnucash-item-list.c
+++ b/src/register/register-gnome/gnucash-item-list.c
@@ -51,6 +51,18 @@ static guint gnc_item_list_signals[LAST_SIGNAL];
 
 gboolean _gnc_item_find_selection(GtkTreeModel *model, GtkTreePath *path, GtkTreeIter *iter, gpointer data);
 
+gint
+gnc_item_list_num_entries (GncItemList *item_list)
+{
+        GtkTreeModel *model;
+
+        g_return_val_if_fail(item_list != NULL, 0);
+        g_return_val_if_fail(IS_GNC_ITEM_LIST(item_list), 0);
+
+        model = GTK_TREE_MODEL(item_list->list_store);
+        return gtk_tree_model_iter_n_children(model, NULL);
+}
+
 
 void
 gnc_item_list_clear (GncItemList *item_list)
diff --git a/src/register/register-gnome/gnucash-item-list.h b/src/register/register-gnome/gnucash-item-list.h
index d3d0614dc5..b2f66f1226 100644
--- a/src/register/register-gnome/gnucash-item-list.h
+++ b/src/register/register-gnome/gnucash-item-list.h
@@ -61,6 +61,8 @@ GType gnc_item_list_get_type (void);
 
 GnomeCanvasItem *gnc_item_list_new (GnomeCanvasGroup *parent, GtkListStore *shared_store);
 
+gint gnc_item_list_num_entries (GncItemList *item_list);
+
 void gnc_item_list_clear (GncItemList *item_list);
 
 void gnc_item_list_append (GncItemList *item_list, char *string);