diff --git a/spec/text-editor-spec.coffee b/spec/text-editor-spec.coffee
index d504b1b2d..b892f59eb 100644
--- a/spec/text-editor-spec.coffee
+++ b/spec/text-editor-spec.coffee
@@ -100,7 +100,8 @@ describe "TextEditor", ->
       editor.onDidChange(changeSpy = jasmine.createSpy('onDidChange'))
       editor.update({
         tabLength: 6, softTabs: false, softWrapped: true, editorWidthInChars: 40,
-        ignoreInvisibles: true, mini: false, lineNumberGutterVisible: false, scrollPastEnd: true
+        ignoreInvisibles: true, mini: false, lineNumberGutterVisible: false, scrollPastEnd: true,
+        autoHeight: false
       })
       expect(changeSpy.callCount).toBe(1)
       expect(editor.getTabLength()).toBe(6)
@@ -111,6 +112,7 @@ describe "TextEditor", ->
       expect(editor.isMini()).toBe(false)
       expect(editor.isLineNumberGutterVisible()).toBe(false)
       expect(editor.getScrollPastEnd()).toBe(true)
+      expect(editor.getAutoHeight()).toBe(false)
 
   describe "config defaults", ->
     it "uses the `editor.tabLength`, `editor.softWrap`, and `editor.softTabs`, and `core.fileEncoding` config values", ->
diff --git a/src/text-editor.coffee b/src/text-editor.coffee
index 9ff67ce92..560d06768 100644
--- a/src/text-editor.coffee
+++ b/src/text-editor.coffee
@@ -188,7 +188,7 @@ class TextEditor extends Model
   update: (params) ->
     {
       softTabs, tabLength, softWrapped, mini, placeholderText, lineNumberGutterVisible,
-      showInvisibles, ignoreInvisibles, editorWidthInChars, scrollPastEnd
+      showInvisibles, ignoreInvisibles, editorWidthInChars, scrollPastEnd, autoHeight
     } = params
 
     resetDisplayLayer = false
@@ -228,6 +228,9 @@ class TextEditor extends Model
     if scrollPastEnd? and scrollPastEnd isnt @scrollPastEnd
       @setScrollPastEnd(scrollPastEnd)
 
+    if autoHeight? and autoHeight isnt @autoHeight
+      @setAutoHeight(autoHeight)
+
     if resetDisplayLayer
       @resetDisplayLayer()