diff --git a/src/game.cpp b/src/game.cpp
index 45b879ff2..a8f6bc992 100644
--- a/src/game.cpp
+++ b/src/game.cpp
@@ -1102,8 +1102,16 @@ static void updateChat(Client& client, f32 dtime, bool show_debug,
 	if (show_debug)
 		chat_y += line_height;
 
-	core::rect<s32> rect(10, chat_y, font->getDimension(recent_chat.c_str()).Width +10,
-			chat_y + (recent_chat_count * line_height));
+	// first pass to calculate height of text to be set
+	s32 width = std::min(font->getDimension(recent_chat.c_str()).Width + 10,
+			porting::getWindowSize().X - 20);
+	core::rect<s32> rect(10, chat_y, width, chat_y + porting::getWindowSize().Y);
+	guitext_chat->setRelativePosition(rect);
+
+	//now use real height of text and adjust rect according to this size	
+	rect = core::rect<s32>(10, chat_y, width,
+			chat_y + guitext_chat->getTextHeight());
+
 
 	guitext_chat->setRelativePosition(rect);
 	// Don't show chat if disabled or empty or profiler is enabled