diff --git a/indra/newview/app_settings/settings.xml b/indra/newview/app_settings/settings.xml
index 35a57e811..96c77bbcc 100644
--- a/indra/newview/app_settings/settings.xml
+++ b/indra/newview/app_settings/settings.xml
@@ -762,7 +762,7 @@ Found in Advanced->Rendering->Info Displays</string>
     <key>ShowLocalChatFloaterBar</key>
     <map>
       <key>Comment</key>
-	  <string>Whether or not local chat should have an input bar when undocked, requires docking and undocking if already undocked.</string>
+	  <string>Whether or not local chat should have an input bar when undocked.</string>
       <key>Persist</key>
       <integer>1</integer>
       <key>Type</key>
diff --git a/indra/newview/llfloaterchatterbox.cpp b/indra/newview/llfloaterchatterbox.cpp
index 178ddc4c3..e4bebeec3 100644
--- a/indra/newview/llfloaterchatterbox.cpp
+++ b/indra/newview/llfloaterchatterbox.cpp
@@ -44,6 +44,15 @@
 #include "llimview.h"
 #include "llimpanel.h"
 #include "llstring.h"
+
+namespace
+{
+	void handleLocalChatBar(LLFloaterChat* floater_chat, bool show_bar)
+	{
+		floater_chat->childSetVisible("chat_layout_panel", show_bar || !gSavedSettings.getBOOL("ChatHistoryTornOff"));
+	}
+}
+
 //
 // LLFloaterMyFriends
 //
@@ -119,9 +128,9 @@ LLFloaterChatterBox::LLFloaterChatterBox(const LLSD& seed) :
 		addFloater(LLFloaterMyFriends::getInstance(0), TRUE);
 	}
 
+	LLFloaterChat* floater_chat = LLFloaterChat::getInstance();
 	if (gSavedSettings.getBOOL("ChatHistoryTornOff"))
 	{
-		LLFloaterChat* floater_chat = LLFloaterChat::getInstance();
 		// add then remove to set up relationship for re-attach
 		addFloater(floater_chat, FALSE);
 		removeFloater(floater_chat);
@@ -130,8 +139,9 @@ LLFloaterChatterBox::LLFloaterChatterBox(const LLSD& seed) :
 	}
 	else
 	{
-		addFloater(LLFloaterChat::getInstance(LLSD()), FALSE);
+		addFloater(floater_chat, FALSE);
 	}
+	gSavedSettings.getControl("ShowLocalChatFloaterBar")->getSignal()->connect(boost::bind(handleLocalChatBar, floater_chat, _2));
 	mTabContainer->lockTabs();
 }
 
diff --git a/indra/newview/skins/default/xui/en-us/panel_preferences_ascent_chat.xml b/indra/newview/skins/default/xui/en-us/panel_preferences_ascent_chat.xml
index d51e91454..475ce06fa 100644
--- a/indra/newview/skins/default/xui/en-us/panel_preferences_ascent_chat.xml
+++ b/indra/newview/skins/default/xui/en-us/panel_preferences_ascent_chat.xml
@@ -70,7 +70,7 @@
       <check_box bottom_delta="-25" left="10" follows="top" initial_value="false" control_name="WoLfVerticalIMTabs"
         label="Use Vertical IMs (Requires a restart)" name="use_vertical_ims_check"/>
       <check_box bottom_delta="-20" follows="top" control_name="OtherChatsTornOff" label="Open new IMs in separate floaters" name="chats_torn_off"/>
-      <check_box bottom_delta="-20" follows="left|top" control_name="ShowLocalChatFloaterBar" label="Show chat bar in torn-off local chat floater (Takes effect upon next tear-off)" name="show_local_chat_floater_bar"/>
+      <check_box bottom_delta="-20" follows="left|top" control_name="ShowLocalChatFloaterBar" label="Show chat bar in torn-off local chat floater" name="show_local_chat_floater_bar"/>
       <check_box bottom_delta="-20" control_name="ContactsUseHorizontalButtons" follows="top" height="16" label="Use horizontal buttons for contacts floater (Needs restart)" tool_tip="When enabled, the buttons on the Friends and Groups panels will be at the bottom, horizontally arranged, instead of vertically arranged on the right." name="horiz_butt"/>	  
       <check_box bottom_delta="-20" control_name="UseConciseIMButtons" follows="top" height="16" label="Buttons on the same line as name for IMs (Affects new IMs)" name="im_concise_butt"/>
       <check_box bottom_delta="-20" control_name="UseConciseGroupChatButtons" follows="top" height="16" label="Buttons on group chat name line (Affects new group chats)" name="group_concise_butt"/>