diff --git a/src/vs/workbench/browser/parts/editor/editorPart.ts b/src/vs/workbench/browser/parts/editor/editorPart.ts
index f033d29b1a585829f6469a03063702354e00bbac..0b58b8a33fd07592a031ee23566e229d830d8747 100644
--- a/src/vs/workbench/browser/parts/editor/editorPart.ts
+++ b/src/vs/workbench/browser/parts/editor/editorPart.ts
@@ -104,6 +104,9 @@ export class EditorPart extends Part implements IEditorPart, IEditorGroupService
 	private pendingEditorInputsToClose: EditorIdentifier[];
 	private pendingEditorInputCloseTimeout: number;
 
+	private onLayoutEmitter = new Emitter<Dimension>();
+	public onLayout = this.onLayoutEmitter.event;
+
 	constructor(
 		id: string,
 		restoreFromStorage: boolean,
@@ -1191,6 +1194,8 @@ export class EditorPart extends Part implements IEditorPart, IEditorGroupService
 		this.dimension = sizes[1];
 		this.editorGroupsControl.layout(this.dimension);
 
+		this.onLayoutEmitter.fire(dimension);
+
 		return sizes;
 	}
 
diff --git a/src/vs/workbench/electron-browser/workbench.ts b/src/vs/workbench/electron-browser/workbench.ts
index 373522006c3dd9df8c83a0474a79cdbfa8561042..77b924928db69533c1c925935f0bcc96633975db 100644
--- a/src/vs/workbench/electron-browser/workbench.ts
+++ b/src/vs/workbench/electron-browser/workbench.ts
@@ -9,7 +9,7 @@ import 'vs/css!./media/workbench';
 
 import { TPromise, ValueCallback } from 'vs/base/common/winjs.base';
 import { IDisposable, dispose } from 'vs/base/common/lifecycle';
-import Event, { Emitter } from 'vs/base/common/event';
+import Event, { Emitter, chain } from 'vs/base/common/event';
 import DOM = require('vs/base/browser/dom');
 import { Builder, $ } from 'vs/base/browser/builder';
 import { Delayer } from 'vs/base/common/async';
@@ -236,6 +236,12 @@ export class Workbench implements IPartService {
 		return this._onTitleBarVisibilityChange.event;
 	}
 
+	public get onEditorLayout(): Event<void> {
+		return chain(this.editorPart.onLayout)
+			.map(() => void 0)
+			.event;
+	}
+
 	/**
 	 * Starts the workbench and creates the HTML elements on the container. A workbench can only be started
 	 * once. Use the shutdown function to free up resources created by the workbench on startup.
diff --git a/src/vs/workbench/parts/watermark/electron-browser/watermark.css b/src/vs/workbench/parts/watermark/electron-browser/watermark.css
index 98e7b49601cf7165eb391d1d3c615056bb51333b..9bf79ce1d5264a0264fe7990ff4dc797e11be8c3 100644
--- a/src/vs/workbench/parts/watermark/electron-browser/watermark.css
+++ b/src/vs/workbench/parts/watermark/electron-browser/watermark.css
@@ -27,19 +27,11 @@
 	border-spacing: 13px 17px;
 }
 
-@media (min-height: 501px) {
-	.monaco-workbench > .part.editor.empty > .content > .watermark {
-		display: block;
-	}
-}
-
-@media (max-height: 500px) {
-	.monaco-workbench > .part.editor.empty > .content > .watermark {
-		display: none;
-	}
-	.monaco-workbench .part.editor.empty {
-		background-position-y: 50%;
-	}
+.monaco-workbench > .part.editor.empty.max-height-478px > .content > .watermark {
+	display: none;
+}
+.monaco-workbench .part.editor.empty.max-height-478px {
+	background-position-y: 50%;
 }
 
 .monaco-workbench > .part.editor.empty > .content > .watermark dl {
diff --git a/src/vs/workbench/parts/watermark/electron-browser/watermark.ts b/src/vs/workbench/parts/watermark/electron-browser/watermark.ts
index ec7dbbb33eae9b9fe2bfc536ed2a83678a2ccba7..0c8015001eac7bacc559a137f5b8ded119fee447 100644
--- a/src/vs/workbench/parts/watermark/electron-browser/watermark.ts
+++ b/src/vs/workbench/parts/watermark/electron-browser/watermark.ts
@@ -175,9 +175,15 @@ export class WatermarkContribution implements IWorkbenchContribution {
 				});
 			});
 		};
+		const layout = () => {
+			const { height } = container.getBoundingClientRect();
+			container.classList[height <= 478 ? 'add' : 'remove']('max-height-478px');
+		};
 		update();
-		watermark.build(container.firstChild as HTMLElement, 0);
+		watermark.build(container.firstElementChild as HTMLElement, 0);
+		layout();
 		this.toDispose.push(this.keybindingService.onDidUpdateKeybindings(update));
+		this.toDispose.push(this.partService.onEditorLayout(layout));
 	}
 
 	public dispose(): void {
diff --git a/src/vs/workbench/services/part/common/partService.ts b/src/vs/workbench/services/part/common/partService.ts
index 47cca47baed27155ddad202ad73eda7b5a1a6884..e52358f54b8f6eac381c41c42caaa1d89fa070c2 100644
--- a/src/vs/workbench/services/part/common/partService.ts
+++ b/src/vs/workbench/services/part/common/partService.ts
@@ -36,6 +36,11 @@ export interface IPartService {
 	 */
 	onTitleBarVisibilityChange: Event<void>;
 
+	/**
+	 * Emits when the editor part's layout changes.
+	 */
+	onEditorLayout: Event<void>;
+
 	/**
 	 * Asks the part service to layout all parts.
 	 */
diff --git a/src/vs/workbench/test/workbenchTestServices.ts b/src/vs/workbench/test/workbenchTestServices.ts
index 6fcfa139324a1cbae24dd1b117c116e4eeaceb8a..28e07e643377928c04834bdf4550f12537f8312b 100644
--- a/src/vs/workbench/test/workbenchTestServices.ts
+++ b/src/vs/workbench/test/workbenchTestServices.ts
@@ -240,11 +240,16 @@ export class TestPartService implements IPartService {
 	public _serviceBrand: any;
 
 	private _onTitleBarVisibilityChange = new Emitter<void>();
+	private _onEditorLayout = new Emitter<void>();
 
 	public get onTitleBarVisibilityChange(): Event<void> {
 		return this._onTitleBarVisibilityChange.event;
 	}
 
+	public get onEditorLayout(): Event<void> {
+		return this._onEditorLayout.event;
+	}
+
 	public layout(): void { }
 
 	public isCreated(): boolean {