diff --git a/src/Project.cpp b/src/Project.cpp
index bab32eb4b..bdf7b4ece 100644
--- a/src/Project.cpp
+++ b/src/Project.cpp
@@ -2041,10 +2041,14 @@ void AudacityProject::UpdateLayout()
    if (!mTrackPanel)
       return;
 
-   // Layout first to get our NEW width,
-   // Then and only then we can arrange the toolbars.
+   // 1. Layout panel, to get widths of the docks.
    Layout();
+   // 2. Layout toolbars to pack the toolbars correctly in docks which 
+   // are now the correct width.
    mToolManager->LayoutToolBars();
+   // 3. Layout panel, to resize docks, in particular reducing the height 
+   // of any empty docks, or increasing the height of docks that need it.
+   Layout();
 
    // Retrieve size of this projects window
    wxSize mainsz = GetSize();