diff --git a/src/msw/frame.cpp b/src/msw/frame.cpp
index f6344c7c0c..2784af2f23 100644
--- a/src/msw/frame.cpp
+++ b/src/msw/frame.cpp
@@ -495,6 +495,8 @@ void wxFrame::PositionToolBar()
         else
         {
             tw = width;
+            if ( toolbar->GetWindowStyleFlag() & wxTB_FLAT )
+                th -= 3;
         }
 
         // use the 'real' MSW position here, don't offset relativly to the
diff --git a/src/msw/tbar95.cpp b/src/msw/tbar95.cpp
index 13b388e509..004af499a5 100644
--- a/src/msw/tbar95.cpp
+++ b/src/msw/tbar95.cpp
@@ -1177,7 +1177,10 @@ bool wxToolBar::HandleSize(WXWPARAM wParam, WXLPARAM lParam)
         else
         {
             w = LOWORD(lParam);
-            h = r.bottom - r.top;
+            if (HasFlag( wxTB_FLAT ))
+                h = r.bottom - r.top - 3;
+            else
+                h = r.bottom - r.top;
             if ( m_maxRows )
             {
                 // FIXME: 6 is hardcoded separator line height...