--- a/browser/base/content/browser-places.js
+++ b/browser/base/content/browser-places.js
@@ -1068,18 +1068,28 @@ var PlacesStarButton = {
 let PlacesToolbarHelper = {
   _place: "place:folder=TOOLBAR",
 
   get _viewElt() {
     return document.getElementById("PlacesToolbar");
   },
 
   init: function PTH_init() {
-    if (this._viewElt)
-      new PlacesToolbar(this._place);
+    let viewElt = this._viewElt;
+    if (!viewElt || viewElt._placesView)
+      return;
+
+    // If the bookmarks toolbar item is hidden because the parent toolbar is
+    // collapsed or hidden (i.e. in a popup), spare the initialization.
+    let toolbar = viewElt.parentNode.parentNode;
+    if (toolbar.collapsed ||
+        getComputedStyle(toolbar, "").display == "none")
+      return;
+
+    new PlacesToolbar(this._place);
   },
 
   customizeStart: function PTH_customizeStart() {
     let viewElt = this._viewElt;
     if (viewElt && viewElt._placesView)
       viewElt._placesView.uninit();
   },
 

--- a/browser/base/content/browser.js
+++ b/browser/base/content/browser.js
@@ -4669,23 +4669,28 @@ function onViewToolbarsPopupShowing(aEve
     }
     toolbar = toolbar.nextSibling;
   }
 }
 
 function onViewToolbarCommand(aEvent) {
   var index = aEvent.originalTarget.getAttribute("toolbarindex");
   var toolbar = gNavToolbox.childNodes[index];
+  var visible = aEvent.originalTarget.getAttribute("checked") == "true";
+  setToolbarVisibility(toolbar, visible);
+}
+
+function setToolbarVisibility(toolbar, visible) {
   var hidingAttribute = toolbar.getAttribute("type") == "menubar" ?
                         "autohide" : "collapsed";
 
-  toolbar.setAttribute(hidingAttribute,
-                       aEvent.originalTarget.getAttribute("checked") != "true");
+  toolbar.setAttribute(hidingAttribute, !visible);
   document.persist(toolbar.id, hidingAttribute);
 
+  PlacesToolbarHelper.init();
   BookmarksMenuButton.updatePosition();
 
 #ifdef MENUBAR_CAN_AUTOHIDE
   updateAppButtonDisplay();
 #endif
 }
 
 var TabsOnTop = {

--- a/browser/components/places/tests/browser/browser_drag_bookmarks_on_toolbar.js
+++ b/browser/components/places/tests/browser/browser_drag_bookmarks_on_toolbar.js
@@ -242,25 +242,25 @@ function nextTest() {
     info("Start of test: " + test.desc);
     test.run();
 
     setTimeout(nextTest, 0);
   }
   else {
     // Collapse the personal toolbar if needed.
     if (wasCollapsed)
-      toolbar.collapsed = true;
+      setToolbarVisibility(toolbar, false);
     finish();
   }
 }
 
 let toolbar = document.getElementById("PersonalToolbar");
 let wasCollapsed = toolbar.collapsed;
 
 function test() {
   // Uncollapse the personal toolbar if needed.
   if (wasCollapsed)
-    toolbar.collapsed = false;
+    setToolbarVisibility(toolbar, true);
 
   waitForExplicitFinish();
   nextTest();
 }
 

--- a/browser/components/places/tests/browser/browser_views_liveupdate.js
+++ b/browser/components/places/tests/browser/browser_views_liveupdate.js
@@ -43,17 +43,17 @@ const Cc = Components.classes;
 const Ci = Components.interfaces;
 
 let toolbar = document.getElementById("PersonalToolbar");
 let wasCollapsed = toolbar.collapsed;
 
 function test() {
   // Uncollapse the personal toolbar if needed.
   if (wasCollapsed)
-    toolbar.collapsed = false;
+    setToolbarVisibility(toolbar, true);
 
   waitForExplicitFinish();
 
   // Sanity checks.
   ok(PlacesUtils, "PlacesUtils in context");
   ok(PlacesUIUtils, "PlacesUIUtils in context");
 
   // Open bookmarks menu.
@@ -199,17 +199,17 @@ function startTest() {
  * Restores browser state and calls finish.
  */
 function finishTest() {
   // Close bookmarks sidebar.
   toggleSidebar("viewBookmarksSidebar", false);
 
   // Collapse the personal toolbar if needed.
   if (wasCollapsed)
-    toolbar.collapsed = true;
+    setToolbarVisibility(toolbar, false);
 
   finish();
 }
 
 /**
  * The observer is where magic happens, for every change we do it will look for
  * nodes positions in the affected views.
  */