diff --git a/src/tooltip.js b/src/tooltip.js
index 2573b1fb9..0cd1d86e1 100644
--- a/src/tooltip.js
+++ b/src/tooltip.js
@@ -1,3 +1,5 @@
+/* global MutationObserver */
+
 'use strict'
 
 const EventKit = require('event-kit')
@@ -46,6 +48,7 @@ Tooltip.prototype.init = function (element, options) {
   this.element = element
   this.options = this.getOptions(options)
   this.disposables = new EventKit.CompositeDisposable()
+  this.mutationObserver = new MutationObserver(this.handleMutations.bind(this))
 
   if (this.options.viewport) {
     if (typeof this.options.viewport === 'function') {
@@ -103,6 +106,24 @@ Tooltip.prototype.init = function (element, options) {
     : this.fixTitle()
 }
 
+Tooltip.prototype.startObservingMutations = function () {
+  this.mutationObserver.observe(this.getTooltipElement(), {
+    attributes: true, childList: true, characterData: true, subtree: true
+  })
+}
+
+Tooltip.prototype.stopObservingMutations = function () {
+  this.mutationObserver.disconnect()
+}
+
+Tooltip.prototype.handleMutations = function () {
+  window.requestAnimationFrame(function () {
+    this.stopObservingMutations()
+    this.recalculatePosition()
+    this.startObservingMutations()
+  }.bind(this))
+}
+
 Tooltip.prototype.getDefaults = function () {
   return Tooltip.DEFAULTS
 }
@@ -202,6 +223,7 @@ Tooltip.prototype.show = function () {
     }
 
     var tip = this.getTooltipElement()
+    this.startObservingMutations()
     var tipId = this.getUID('tooltip')
 
     this.setContent()
@@ -340,6 +362,7 @@ Tooltip.prototype.hide = function (callback) {
   }
 
   this.tip && this.tip.classList.remove('in')
+  this.stopObservingMutations()
 
   if (this.hoverState !== 'in') this.tip && this.tip.remove()
 
@@ -482,6 +505,41 @@ Tooltip.prototype.getDelegateComponent = function (element) {
   return component
 }
 
+Tooltip.prototype.recalculatePosition = function () {
+  var tip = this.getTooltipElement()
+
+  var placement = typeof this.options.placement === 'function'
+    ? this.options.placement.call(this, tip, this.element)
+    : this.options.placement
+
+  var autoToken = /\s?auto?\s?/i
+  var autoPlace = autoToken.test(placement)
+  if (autoPlace) placement = placement.replace(autoToken, '') || 'top'
+
+  tip.classList.add(placement)
+
+  var pos = this.element.getBoundingClientRect()
+  var actualWidth = tip.offsetWidth
+  var actualHeight = tip.offsetHeight
+
+  if (autoPlace) {
+    var orgPlacement = placement
+    var viewportDim = this.viewport.getBoundingClientRect()
+
+    placement = placement === 'bottom' && pos.bottom + actualHeight > viewportDim.bottom ? 'top'
+              : placement === 'top' && pos.top - actualHeight < viewportDim.top ? 'bottom'
+              : placement === 'right' && pos.right + actualWidth > viewportDim.width ? 'left'
+              : placement === 'left' && pos.left - actualWidth < viewportDim.left ? 'right'
+              : placement
+
+    tip.classList.remove(orgPlacement)
+    tip.classList.add(placement)
+  }
+
+  var calculatedOffset = this.getCalculatedOffset(placement, pos, actualWidth, actualHeight)
+  this.applyPlacement(calculatedOffset, placement)
+}
+
 function extend () {
   var args = Array.prototype.slice.apply(arguments)
   var target = args.shift()