diff --git a/clutter/clutter-text.c b/clutter/clutter-text.c
index 9ece4b8d7..c57559560 100644
--- a/clutter/clutter-text.c
+++ b/clutter/clutter-text.c
@@ -284,6 +284,7 @@ clutter_text_create_layout_no_cache (ClutterText *text,
   pango_layout_set_alignment (layout, priv->alignment);
   pango_layout_set_single_paragraph_mode (layout, priv->single_line_mode);
   pango_layout_set_justify (layout, priv->justify);
+  pango_layout_set_wrap (layout, priv->wrap_mode);
 
   /* Cases, assuming ellipsize != NONE on actor:
    *
@@ -309,11 +310,14 @@ clutter_text_create_layout_no_cache (ClutterText *text,
         }
     }
 
-  /* we do not limit the layout width on editable, single-line
-   * text actors, since those can scroll the layout
+  /* We do not limit the layout width on editable, single-line text
+   * actors, since those can scroll the layout. For non-editable
+   * actors we only want to set the width if wrapping or ellipsizing
+   * is enabled.
    */
   if (allocation_width > 0 &&
-      !(priv->editable && priv->single_line_mode))
+      (priv->editable ? !priv->single_line_mode
+       : (priv->ellipsize != PANGO_ELLIPSIZE_NONE || priv->wrap)))
     {
       gint width;
 
diff --git a/tests/conform/test-text-cache.c b/tests/conform/test-text-cache.c
index f7237b1d6..ac650528d 100644
--- a/tests/conform/test-text-cache.c
+++ b/tests/conform/test-text-cache.c
@@ -202,7 +202,6 @@ do_tests (CallbackData *data)
   pango_layout_set_wrap (data->test_layout, PANGO_WRAP_WORD);
   g_assert (check_result (data, "Enable line wrap", TRUE) == FALSE);
 
-#if 0
   /* TEST 11: change wrap mode
    * FIXME - broken
    */
@@ -210,7 +209,6 @@ do_tests (CallbackData *data)
 				    PANGO_WRAP_CHAR);
   pango_layout_set_wrap (data->test_layout, PANGO_WRAP_CHAR);
   g_assert (check_result (data, "Change wrap mode", TRUE) == FALSE);
-#endif
 
   /* TEST 12: enable justify */
   clutter_text_set_justify (CLUTTER_TEXT (data->label), TRUE);