Index: desktop_aura/desktop_screen_win.cc
===================================================================
--- desktop_aura/desktop_screen_win.cc	(revision 280796)
+++ desktop_aura/desktop_screen_win.cc	(working copy)
@@ -54,6 +54,8 @@
 }
 
 HWND DesktopScreenWin::GetHWNDFromNativeView(gfx::NativeView window) const {
+  if (!window)
+    return NULL;
   aura::WindowTreeHost* host = window->GetHost();
   return host ? host->GetAcceleratedWidget() : NULL;
 }
Index: desktop_aura/desktop_screen_x11.cc
===================================================================
--- desktop_aura/desktop_screen_x11.cc	(revision 280796)
+++ desktop_aura/desktop_screen_x11.cc	(working copy)
@@ -220,6 +220,9 @@
 
 gfx::Display DesktopScreenX11::GetDisplayNearestWindow(
     gfx::NativeView window) const {
+  if (!window)
+    return GetPrimaryDisplay();
+
   // Getting screen bounds here safely is hard.
   //
   // You'd think we'd be able to just call window->GetBoundsInScreen(), but we
Index: desktop_aura/desktop_window_tree_host_win.cc
===================================================================
--- desktop_aura/desktop_window_tree_host_win.cc	(revision 280796)
+++ desktop_aura/desktop_window_tree_host_win.cc	(working copy)
@@ -129,7 +129,9 @@
                         native_widget_delegate_);
 
   HWND parent_hwnd = NULL;
-  if (params.parent && params.parent->GetHost())
+  if (params.parent_widget)
+    parent_hwnd = params.parent_widget;
+  else if (params.parent && params.parent->GetHost())
     parent_hwnd = params.parent->GetHost()->GetAcceleratedWidget();
 
   message_handler_->set_remove_standard_frame(params.remove_standard_frame);
@@ -770,6 +772,7 @@
 
 void DesktopWindowTreeHostWin::HandleNativeFocus(HWND last_focused_window) {
   // TODO(beng): inform the native_widget_delegate_.
+  GetWidget()->GetNativeWindow()->Focus();
   InputMethod* input_method = GetInputMethod();
   if (input_method)
     input_method->OnFocus();
@@ -777,6 +780,7 @@
 
 void DesktopWindowTreeHostWin::HandleNativeBlur(HWND focused_window) {
   // TODO(beng): inform the native_widget_delegate_.
+  GetWidget()->GetNativeWindow()->Blur();
   InputMethod* input_method = GetInputMethod();
   if (input_method)
     input_method->OnBlur();
Index: desktop_aura/desktop_window_tree_host_x11.cc
===================================================================
--- desktop_aura/desktop_window_tree_host_x11.cc	(revision 280796)
+++ desktop_aura/desktop_window_tree_host_x11.cc	(working copy)
@@ -148,7 +148,8 @@
       window_parent_(NULL),
       window_shape_(NULL),
       custom_window_shape_(false),
-      urgency_hint_set_(false) {
+      urgency_hint_set_(false),
+      xwindow_destroyed_(false) {
 }
 
 DesktopWindowTreeHostX11::~DesktopWindowTreeHostX11() {
@@ -347,7 +348,8 @@
   // Actually free our native resources.
   if (ui::PlatformEventSource::GetInstance())
     ui::PlatformEventSource::GetInstance()->RemovePlatformEventDispatcher(this);
-  XDestroyWindow(xdisplay_, xwindow_);
+  if (!xwindow_destroyed_)
+    XDestroyWindow(xdisplay_, xwindow_);
   xwindow_ = None;
 
   desktop_native_widget_aura_->OnHostClosed();
@@ -443,6 +445,8 @@
 }
 
 gfx::Rect DesktopWindowTreeHostX11::GetWindowBoundsInScreen() const {
+  if (!screen_bounds_.IsEmpty())
+    return screen_bounds_;
   return bounds_;
 }
 
@@ -455,6 +459,8 @@
   // Attempts to calculate the rect by asking the NonClientFrameView what it
   // thought its GetBoundsForClientView() were broke combobox drop down
   // placement.
+  if (!screen_bounds_.IsEmpty())
+    return screen_bounds_;
   return bounds_;
 }
 
@@ -899,6 +905,8 @@
 }
 
 gfx::Point DesktopWindowTreeHostX11::GetLocationOnNativeScreen() const {
+  if (!screen_bounds_.IsEmpty())
+    return screen_bounds_.origin();
   return bounds_.origin();
 }
 
@@ -1042,9 +1050,13 @@
     }
   }
 
+  gfx::AcceleratedWidget parent_widget = params.parent_widget;
+  if (parent_widget == gfx::kNullAcceleratedWidget)
+    parent_widget = x_root_window_;
+
   bounds_ = params.bounds;
   xwindow_ = XCreateWindow(
-      xdisplay_, x_root_window_,
+      xdisplay_, parent_widget,
       bounds_.x(), bounds_.y(),
       bounds_.width(), bounds_.height(),
       0,               // border width
@@ -1600,6 +1612,10 @@
       }
       break;
     }
+    case DestroyNotify:
+      xwindow_destroyed_ = true;
+      CloseNow();
+      break;
     case FocusOut:
       if (xev->xfocus.mode != NotifyGrab) {
         ReleaseCapture();
Index: desktop_aura/desktop_window_tree_host_x11.h
===================================================================
--- desktop_aura/desktop_window_tree_host_x11.h	(revision 280796)
+++ desktop_aura/desktop_window_tree_host_x11.h	(working copy)
@@ -84,6 +84,8 @@
   // Deallocates the internal list of open windows.
   static void CleanUpWindowList();
 
+  void set_screen_bounds(const gfx::Rect& bounds) { screen_bounds_ = bounds; }
+
  protected:
   // Overridden from DesktopWindowTreeHost:
   virtual void Init(aura::Window* content_window,
@@ -250,6 +252,9 @@
   // The bounds of |xwindow_|.
   gfx::Rect bounds_;
 
+  // Override the screen bounds when the host is a child window.
+  gfx::Rect screen_bounds_;
+
   // Whenever the bounds are set, we keep the previous set of bounds around so
   // we can have a better chance of getting the real |restored_bounds_|. Window
   // managers tend to send a Configure message with the maximized bounds, and
@@ -331,6 +336,9 @@
   // the frame when |xwindow_| gains focus or handles a mouse button event.
   bool urgency_hint_set_;
 
+  // True if the xwindow has already been destroyed.
+  bool xwindow_destroyed_;
+
   DISALLOW_COPY_AND_ASSIGN(DesktopWindowTreeHostX11);
 };
 
Index: widget.cc
===================================================================
--- widget.cc	(revision 280796)
+++ widget.cc	(working copy)
@@ -116,6 +116,7 @@
       show_state(ui::SHOW_STATE_DEFAULT),
       double_buffer(false),
       parent(NULL),
+      parent_widget(gfx::kNullAcceleratedWidget),
       native_widget(NULL),
       desktop_window_tree_host(NULL),
       layer_type(aura::WINDOW_LAYER_TEXTURED),
@@ -140,6 +141,7 @@
       show_state(ui::SHOW_STATE_DEFAULT),
       double_buffer(false),
       parent(NULL),
+      parent_widget(gfx::kNullAcceleratedWidget),
       native_widget(NULL),
       desktop_window_tree_host(NULL),
       layer_type(aura::WINDOW_LAYER_TEXTURED),
@@ -314,7 +316,7 @@
   InitParams params = in_params;
 
   params.child |= (params.type == InitParams::TYPE_CONTROL);
-  is_top_level_ = !params.child;
+  is_top_level_ = !params.child || params.parent_widget;
 
   if (params.opacity == views::Widget::InitParams::INFER_OPACITY &&
       params.type != views::Widget::InitParams::TYPE_WINDOW &&
@@ -375,7 +377,12 @@
       Minimize();
   } else if (params.delegate) {
     SetContentsView(params.delegate->GetContentsView());
-    SetInitialBoundsForFramelessWindow(params.bounds);
+    if (params.parent_widget) {
+      // Set the bounds directly instead of applying an inset.
+      SetBounds(params.bounds);
+    } else {
+      SetInitialBoundsForFramelessWindow(params.bounds);
+    }
   }
   // This must come after SetContentsView() or it might not be able to find
   // the correct NativeTheme (on Linux). See http://crbug.com/384492
Index: widget.h
===================================================================
--- widget.h	(revision 280796)
+++ widget.h	(working copy)
@@ -222,6 +222,7 @@
     // Should the widget be double buffered? Default is false.
     bool double_buffer;
     gfx::NativeView parent;
+    gfx::AcceleratedWidget parent_widget;
     // Specifies the initial bounds of the Widget. Default is empty, which means
     // the NativeWidget may specify a default size. If the parent is specified,
     // |bounds| is in the parent's coordinate system. If the parent is not