diff --git a/data/gnome-shell.schemas b/data/gnome-shell.schemas
index 4e1f49620..6da8e3231 100644
--- a/data/gnome-shell.schemas
+++ b/data/gnome-shell.schemas
@@ -73,6 +73,20 @@
 	</locale>
       </schema>
 
+      <schema>
+        <key>/schemas/desktop/gnome/shell/sidebar/autohide</key>
+	<applyto>/desktop/gnome/shell/sidebar/autohide</applyto>
+	<owner>gnome-shell</owner>
+	<type>bool</type>
+	<default>true</default>
+	<locale name="C">
+	  <short>Whether the sidebar should automatically hide itself in compact mode</short>
+	  <long>
+	    Controls the autohide state of the sidebar.
+	  </long>
+	</locale>
+      </schema>
+
       <schema>
         <key>/schemas/desktop/gnome/shell/sidebar/widgets</key>
 	<applyto>/desktop/gnome/shell/sidebar/widgets</applyto>
diff --git a/js/ui/sidebar.js b/js/ui/sidebar.js
index 5389f251a..6d12db3dc 100644
--- a/js/ui/sidebar.js
+++ b/js/ui/sidebar.js
@@ -4,6 +4,7 @@ const Big = imports.gi.Big;
 const Clutter = imports.gi.Clutter;
 const Shell = imports.gi.Shell;
 const Lang = imports.lang;
+const Mainloop = imports.mainloop;
 
 const Main = imports.ui.main;
 const Panel = imports.ui.panel;
@@ -58,6 +59,8 @@ Sidebar.prototype = {
         if (this._visible)
             Main.chrome.addActor(this.actor);
 
+        this._hidden = false;
+        this._hideTimeoutId = 0;
         this._widgets = [];
         this.addWidget(new ToggleWidget());
 
@@ -69,8 +72,14 @@ Sidebar.prototype = {
                             Lang.bind(this, this._expandedChanged));
         this._gconf.connect('changed::sidebar/visible',
                             Lang.bind(this, this._visibleChanged));
+        this._gconf.connect('changed::sidebar/autohide',
+                            Lang.bind(this, this._autohideChanged));
+
+        this.actor.connect('enter-event',Lang.bind(this,this._restoreHidden));
+        this.actor.connect('leave-event',Lang.bind(this,this._startHideTimeout));
 
         this._adjustPosition();
+        this._autohideChanged();
     },
 
     addWidget: function(widget) {
@@ -90,7 +99,7 @@ Sidebar.prototype = {
     _adjustPosition: function() {
         let primary=global.get_primary_monitor();
 
-        this.actor.y = Math.max(primary.y + Panel.PANEL_HEIGHT,primary.height/2 - this.actor.height/2);
+        this.actor.y = Math.floor(Math.max(primary.y + Panel.PANEL_HEIGHT,primary.height/2 - this.actor.height/2));
         this.actor.x = primary.x;
     },
 
@@ -118,6 +127,21 @@ Sidebar.prototype = {
             this._collapse();
     },
 
+    _autohideChanged: function() {
+        let autohide = this._gconf.get_boolean("sidebar/autohide");
+        if (autohide == this._autohide)
+            return;
+
+        this._autohide = autohide;
+        if (autohide) {
+            this.actor.set_reactive(true);
+            this._hide();
+        } else {
+            this.actor.set_reactive(false);
+            this._restore();
+        }
+    },
+
     _expand: function() {
         this._expanded = true;
         for (let i = 0; i < this._widgets.length; i++)
@@ -135,16 +159,70 @@ Sidebar.prototype = {
         for (let i = 0; i < this._widgets.length; i++)
             this._widgets[i].collapse();
 
-        // Updated the strut/stage area after the animation completes
+        // Update the strut/stage area after the animation completes
         Tweener.addTween(this, { time: WidgetBox.ANIMATION_TIME,
-                                 onComplete: function () {
+                                 onComplete: Lang.bind(this, function () {
                                      this.actor.width = SIDEBAR_COLLAPSED_WIDTH;
-                                 } });
+                                 }) });
+    },
+
+    _hide: function() {
+        if (!this._expanded) {
+            this._hidden = true;
+            for (let i = 0; i < this._widgets.length; i++)
+                this._widgets[i].hide();
+
+            // Update the strut/stage area after the animation completes
+            Tweener.addTween(this, { time: WidgetBox.ANIMATION_TIME / 2,
+                                     onComplete: Lang.bind(this, function () {
+                                         this.actor.width = Math.floor(WidgetBox.WIDGETBOX_PADDING * 2 + SIDEBAR_PADDING);
+                                     }) });
+        }
+    },
+
+    _restore: function() {
+        if (!this._expanded) {
+            this._hidden = false;
+            for (let i = 0; i < this._widgets.length; i++)
+                this._widgets[i].restore();
+
+            // Updated the strut/stage area after the animation completes
+            Tweener.addTween(this, { time: WidgetBox.ANIMATION_TIME / 2,
+                                     onComplete: function () {
+                                         this.actor.width = SIDEBAR_COLLAPSED_WIDTH;
+                                     } });
+        }
+    },
+
+    _restoreHidden: function(actor, event) {
+        this._cancelHideTimeout();
+        if (this._hidden)
+            this._restore();
+        return false;
+    },
+
+    _startHideTimeout: function(actor, event) {
+        if (!this._expanded) {
+            this._cancelHideTimeout();
+            this._hideTimeoutId = Mainloop.timeout_add_seconds(2, Lang.bind(this,this._hideTimeoutFunc));
+        }
+        return false;
+    },
+
+    _cancelHideTimeout: function() {
+        if (this._hideTimeoutId != 0) {
+            Mainloop.source_remove(this._hideTimeoutId);
+            this._hideTimeoutId = 0;
+        }
+    },
+
+    _hideTimeoutFunc: function() {
+        this._hide();
+        return false;
     },
 
     destroy: function() {
         this.hide();
-
         for (let i = 0; i < this._widgets.length; i++)
             this._widgets[i].destroy();
         this.actor.destroy();
diff --git a/js/ui/widgetBox.js b/js/ui/widgetBox.js
index b7dae7459..1455160e2 100644
--- a/js/ui/widgetBox.js
+++ b/js/ui/widgetBox.js
@@ -373,6 +373,20 @@ WidgetBox.prototype = {
         Main.chrome.untrackActor(this._hbox);
     },
 
+    hide: function() {
+        if (this.state == Widget.STATE_COLLAPSED)
+            Tweener.addTween(this._cbox, { x: -Widget.COLLAPSED_WIDTH,
+                                           time: ANIMATION_TIME / 2,
+                                           transition: "easeOutQuad" });
+    },
+
+    restore: function() {
+        if (this.state == Widget.STATE_COLLAPSED)
+            Tweener.addTween(this._cbox, { x: 0,
+                                           time: ANIMATION_TIME / 2,
+                                           transition: "easeOutQuad" });
+    },
+
     destroy: function() {
         if (this._widget.destroy)
             this._widget.destroy();