--- a/browser/components/customizableui/content/panelUI.xml
+++ b/browser/components/customizableui/content/panelUI.xml
@@ -268,28 +268,23 @@
           }
           switch (aEvent.type) {
             case "click":
               if (aEvent.originalTarget == this._clickCapturer) {
                 this.showMainView();
               }
               break;
             case "overflow":
-              switch (aEvent.target.localName) {
-                case "vbox":
-                  // Resize the right view on the next tick.
-                  if (this.showingSubView) {
-                    setTimeout(this._syncContainerWithSubView.bind(this), 0);
-                  } else if (!this.transitioning) {
-                    setTimeout(this._syncContainerWithMainView.bind(this), 0);
-                  }
-                  break;
-                case "toolbarbutton":
-                  aEvent.target.setAttribute("fadelabel", "true");
-                  break;
+              if (aEvent.target.localName == "vbox") {
+                // Resize the right view on the next tick.
+                if (this.showingSubView) {
+                  setTimeout(this._syncContainerWithSubView.bind(this), 0);
+                } else if (!this.transitioning) {
+                  setTimeout(this._syncContainerWithMainView.bind(this), 0);
+                }
               }
               break;
             case "popupshowing":
               this.setAttribute("panelopen", "true");
               // Bug 941196 - The panel can get taller when opening a subview. Disabling
               // autoPositioning means that the panel won't jump around if an opened
               // subview causes the panel to exceed the dimensions of the screen in the
               // direction that the panel originally opened in. This property resets

--- a/browser/themes/shared/customizableui/panelUIOverlay.inc.css
+++ b/browser/themes/shared/customizableui/panelUIOverlay.inc.css
@@ -117,20 +117,21 @@
 .cui-widget-panel > .panel-arrowcontainer > .panel-arrowcontent > .popup-internal-box {
   padding: 0;
 }
 
 .panelUI-grid .toolbarbutton-1 > .toolbarbutton-menubutton-button > .toolbarbutton-multiline-text,
 .panelUI-grid .toolbarbutton-1 > .toolbarbutton-multiline-text {
   -moz-hyphens: auto;
   line-height: 1.1;
+  max-height: 2.2em;
 }
 
-.panelUI-grid:not([customize-transitioning]) .toolbarbutton-1[fadelabel] > .toolbarbutton-menubutton-button > .toolbarbutton-multiline-text,
-.panelUI-grid:not([customize-transitioning]) .toolbarbutton-1[fadelabel] > .toolbarbutton-multiline-text {
+.panelUI-grid:not([customize-transitioning]) .toolbarbutton-1 > .toolbarbutton-menubutton-button > .toolbarbutton-multiline-text,
+.panelUI-grid:not([customize-transitioning]) .toolbarbutton-1 > .toolbarbutton-multiline-text {
   position: absolute;
   clip: rect(auto, auto, 2.2em, auto);
 }
 
 .panelUI-grid .toolbarbutton-1 > .toolbarbutton-text,
 .panelUI-grid .toolbarbutton-1 > .toolbarbutton-multiline-text {
   text-align: center;
   margin: 2px 0 0;
@@ -215,24 +216,16 @@ toolbarbutton[sdk-button="true"][cui-are
   -moz-appearance: none;
   -moz-box-orient: vertical;
   width: calc(@menuPanelButtonWidth@ - 2px);
   height: calc(49px + 2.2em);
   margin-top: 3px; /* Hack needed to get type=menu-button to properly align vertically. */
   border: 0;
 }
 
-toolbaritem[cui-areatype="menu-panel"][sdkstylewidget="true"]:not(.panel-wide-item),
-.panelUI-grid .toolbarbutton-1:not([type="menu-button"]),
-.panelUI-grid .toolbarbutton-1 > .toolbarbutton-menubutton-button,
-.customization-palette .toolbarbutton-1,
-.panel-customization-placeholder-child {
-  overflow: hidden;
-}
-
 .panel-customization-placeholder-child {
   margin: 6px 0 0;
   padding: 2px 6px;
   border: 1px solid transparent;
 }
 
 .panelUI-grid .toolbarbutton-1[type="menu"] {
   background-image: url("chrome://browser/skin/toolbarbutton-dropdown-arrow.png");