diff --git a/res/css/views/elements/_MessageEditor.scss b/res/css/views/elements/_MessageEditor.scss
index ec6d903753b..cc5649a2247 100644
--- a/res/css/views/elements/_MessageEditor.scss
+++ b/res/css/views/elements/_MessageEditor.scss
@@ -16,17 +16,22 @@ limitations under the License.
 
 .mx_MessageEditor {
     border-radius: 4px;
-    background-color: $header-panel-bg-color;
-    padding: 11px 13px 7px 56px;
+    padding: 3px;
+    // this is to try not make the text move but still have some
+    // padding around and in the editor.
+    // Actual values from fiddling around in inspector
+    margin: -7px -10px -5px -10px;
 
     .mx_MessageEditor_editor {
         border-radius: 4px;
-        border: solid 1px #e9edf1;
-        background-color: #ffffff;
-        padding: 10px;
+        border: solid 1px $primary-hairline-color;
+        background-color: $primary-bg-color;
+        padding: 3px 6px;
         white-space: pre-wrap;
         word-wrap: break-word;
         outline: none;
+        max-height: 200px;
+        overflow-x: auto;
 
         span {
             display: inline-block;
@@ -48,8 +53,15 @@ limitations under the License.
     .mx_MessageEditor_buttons {
         display: flex;
         flex-direction: row;
-        justify-content: end;
-        padding: 5px 0;
+        justify-content: flex-end;
+        padding: 5px;
+        position: absolute;
+        left: 0;
+        background: $header-panel-bg-color;
+        z-index: 100;
+        right: 0;
+        margin: 0 -110px 0 0;
+        padding-right: 104px;
 
         .mx_AccessibleButton {
             margin-left: 5px;
@@ -62,3 +74,8 @@ limitations under the License.
         height: 0;
     }
 }
+
+.mx_EventTile_last .mx_MessageEditor_buttons {
+    position: static;
+    margin-right: -103px;
+}
diff --git a/res/css/views/rooms/_EventTile.scss b/res/css/views/rooms/_EventTile.scss
index aa473ec3177..dfc560e6709 100644
--- a/res/css/views/rooms/_EventTile.scss
+++ b/res/css/views/rooms/_EventTile.scss
@@ -43,6 +43,10 @@ limitations under the License.
     padding-top: 0px ! important;
 }
 
+.mx_EventTile_isEditing {
+    background-color: $header-panel-bg-color;
+}
+
 .mx_EventTile .mx_SenderProfile {
     color: $primary-fg-color;
     font-size: 14px;
@@ -72,6 +76,10 @@ limitations under the License.
     }
 }
 
+.mx_EventTile_isEditing .mx_MessageTimestamp {
+    visibility: hidden !important;
+}
+
 .mx_EventTile .mx_MessageTimestamp {
     display: block;
     visibility: hidden;
diff --git a/src/HtmlUtils.js b/src/HtmlUtils.js
index 1032c52e326..97f547ceb47 100644
--- a/src/HtmlUtils.js
+++ b/src/HtmlUtils.js
@@ -541,8 +541,8 @@ export function bodyToHtml(content, highlights, opts={}) {
     });
 
     return isDisplayedWithHtml ?
-        <span className={className} dangerouslySetInnerHTML={{ __html: safeBody }} dir="auto" /> :
-        <span className={className} dir="auto">{ strippedBody }</span>;
+        <span key="body" className={className} dangerouslySetInnerHTML={{ __html: safeBody }} dir="auto" /> :
+        <span key="body" className={className} dir="auto">{ strippedBody }</span>;
 }
 
 export function emojifyText(text, addAlt) {
diff --git a/src/components/structures/MessagePanel.js b/src/components/structures/MessagePanel.js
index dbaab57adff..001097f8462 100644
--- a/src/components/structures/MessagePanel.js
+++ b/src/components/structures/MessagePanel.js
@@ -450,14 +450,10 @@ module.exports = React.createClass({
 
     _getTilesForEvent: function(prevEvent, mxEv, last) {
         const EventTile = sdk.getComponent('rooms.EventTile');
-        const MessageEditor = sdk.getComponent('elements.MessageEditor');
         const DateSeparator = sdk.getComponent('messages.DateSeparator');
         const ret = [];
 
-        if (this.props.editEvent && this.props.editEvent.getId() === mxEv.getId()) {
-            return [<MessageEditor key={mxEv.getId()} event={mxEv} />];
-        }
-
+        const isEditing = this.props.editEvent && this.props.editEvent.getId() === mxEv.getId();
         // is this a continuation of the previous message?
         let continuation = false;
 
@@ -527,6 +523,7 @@ module.exports = React.createClass({
                     continuation={continuation}
                     isRedacted={mxEv.isRedacted()}
                     replacingEventId={mxEv.replacingEventId()}
+                    isEditing={isEditing}
                     onHeightChanged={this._onHeightChanged}
                     readReceipts={readReceipts}
                     readReceiptMap={this._readReceiptMap}
diff --git a/src/components/views/elements/MessageEditor.js b/src/components/views/elements/MessageEditor.js
index c18d1f56fde..0c249d067b9 100644
--- a/src/components/views/elements/MessageEditor.js
+++ b/src/components/views/elements/MessageEditor.js
@@ -107,10 +107,12 @@ export default class MessageEditor extends React.Component {
         } else if (event.key === "Enter") {
             this._sendEdit();
             event.preventDefault();
+        } else if (event.key === "Escape") {
+            this._cancelEdit();
         }
     }
 
-    _onCancelClicked = () => {
+    _cancelEdit = () => {
         dis.dispatch({action: "edit_event", event: null});
     }
 
@@ -185,7 +187,7 @@ export default class MessageEditor extends React.Component {
                     ref={ref => this._editorRef = ref}
                 ></div>
                 <div className="mx_MessageEditor_buttons">
-                    <AccessibleButton kind="secondary" onClick={this._onCancelClicked}>{_t("Cancel")}</AccessibleButton>
+                    <AccessibleButton kind="secondary" onClick={this._cancelEdit}>{_t("Cancel")}</AccessibleButton>
                     <AccessibleButton kind="primary" onClick={this._sendEdit}>{_t("Save")}</AccessibleButton>
                 </div>
             </div>;
diff --git a/src/components/views/messages/MessageEvent.js b/src/components/views/messages/MessageEvent.js
index 357da1cd10b..8c90ec5a460 100644
--- a/src/components/views/messages/MessageEvent.js
+++ b/src/components/views/messages/MessageEvent.js
@@ -90,6 +90,7 @@ module.exports = React.createClass({
             tileShape={this.props.tileShape}
             maxImageHeight={this.props.maxImageHeight}
             replacingEventId={this.props.replacingEventId}
+            isEditing={this.props.isEditing}
             onHeightChanged={this.props.onHeightChanged} />;
     },
 });
diff --git a/src/components/views/messages/TextualBody.js b/src/components/views/messages/TextualBody.js
index 44c807e4e48..380d04d1db2 100644
--- a/src/components/views/messages/TextualBody.js
+++ b/src/components/views/messages/TextualBody.js
@@ -89,7 +89,9 @@ module.exports = React.createClass({
 
     componentDidMount: function() {
         this._unmounted = false;
-        this._applyFormatting();
+        if (!this.props.isEditing) {
+            this._applyFormatting();
+        }
     },
 
     _applyFormatting() {
@@ -128,11 +130,14 @@ module.exports = React.createClass({
     },
 
     componentDidUpdate: function(prevProps) {
-        const messageWasEdited = prevProps.replacingEventId !== this.props.replacingEventId;
-        if (messageWasEdited) {
-            this._applyFormatting();
+        if (!this.props.isEditing) {
+            const stoppedEditing = prevProps.isEditing && !this.props.isEditing;
+            const messageWasEdited = prevProps.replacingEventId !== this.props.replacingEventId;
+            if (messageWasEdited || stoppedEditing) {
+                this._applyFormatting();
+            }
+            this.calculateUrlPreview();
         }
-        this.calculateUrlPreview();
     },
 
     componentWillUnmount: function() {
@@ -148,6 +153,7 @@ module.exports = React.createClass({
                 nextProps.replacingEventId !== this.props.replacingEventId ||
                 nextProps.highlightLink !== this.props.highlightLink ||
                 nextProps.showUrlPreview !== this.props.showUrlPreview ||
+                nextProps.isEditing !== this.props.isEditing ||
                 nextState.links !== this.state.links ||
                 nextState.editedMarkerHovered !== this.state.editedMarkerHovered ||
                 nextState.widgetHidden !== this.state.widgetHidden);
@@ -463,6 +469,10 @@ module.exports = React.createClass({
     },
 
     render: function() {
+        if (this.props.isEditing) {
+            const MessageEditor = sdk.getComponent('elements.MessageEditor');
+            return <MessageEditor event={this.props.mxEvent} />;
+        }
         const EmojiText = sdk.getComponent('elements.EmojiText');
         const mxEvent = this.props.mxEvent;
         const content = mxEvent.getContent();
diff --git a/src/components/views/rooms/EventTile.js b/src/components/views/rooms/EventTile.js
index f38e3c39462..39e830a2286 100644
--- a/src/components/views/rooms/EventTile.js
+++ b/src/components/views/rooms/EventTile.js
@@ -540,6 +540,7 @@ module.exports = withMatrixClient(React.createClass({
 
         const classes = classNames({
             mx_EventTile: true,
+            mx_EventTile_isEditing: this.props.isEditing,
             mx_EventTile_info: isInfoMessage,
             mx_EventTile_12hr: this.props.isTwelveHour,
             mx_EventTile_encrypting: this.props.eventSendStatus === 'encrypting',
@@ -617,14 +618,14 @@ module.exports = withMatrixClient(React.createClass({
         }
 
         const MessageActionBar = sdk.getComponent('messages.MessageActionBar');
-        const actionBar = <MessageActionBar
+        const actionBar = !this.props.isEditing ? <MessageActionBar
             mxEvent={this.props.mxEvent}
             reactions={this.state.reactions}
             permalinkCreator={this.props.permalinkCreator}
             getTile={this.getTile}
             getReplyThread={this.getReplyThread}
             onFocusChange={this.onActionBarFocusChange}
-        />;
+        /> : undefined;
 
         const timestamp = this.props.mxEvent.getTs() ?
             <MessageTimestamp showTwelveHour={this.props.isTwelveHour} ts={this.props.mxEvent.getTs()} /> : null;
@@ -780,6 +781,7 @@ module.exports = withMatrixClient(React.createClass({
                             <EventTileType ref="tile"
                                            mxEvent={this.props.mxEvent}
                                            replacingEventId={this.props.replacingEventId}
+                                           isEditing={this.props.isEditing}
                                            highlights={this.props.highlights}
                                            highlightLink={this.props.highlightLink}
                                            showUrlPreview={this.props.showUrlPreview}