diff --git a/app/src/main/kotlin/com/simplemobiletools/applauncher/activities/MainActivity.kt b/app/src/main/kotlin/com/simplemobiletools/applauncher/activities/MainActivity.kt
index 698f51a..6a4ae54 100644
--- a/app/src/main/kotlin/com/simplemobiletools/applauncher/activities/MainActivity.kt
+++ b/app/src/main/kotlin/com/simplemobiletools/applauncher/activities/MainActivity.kt
@@ -169,7 +169,7 @@ class MainActivity : SimpleActivity(), RefreshRecyclerViewListener {
 
     private fun toggleAppName() {
         config.showAppName = !config.showAppName
-        launchers_grid.adapter?.notifyDataSetChanged()
+        setupAdapter(displayedLaunchers)
     }
 
     private fun increaseColumnCount() {
diff --git a/app/src/main/kotlin/com/simplemobiletools/applauncher/adapters/LaunchersAdapter.kt b/app/src/main/kotlin/com/simplemobiletools/applauncher/adapters/LaunchersAdapter.kt
index 901b40d..5fa2aa2 100644
--- a/app/src/main/kotlin/com/simplemobiletools/applauncher/adapters/LaunchersAdapter.kt
+++ b/app/src/main/kotlin/com/simplemobiletools/applauncher/adapters/LaunchersAdapter.kt
@@ -4,7 +4,6 @@ import android.view.Menu
 import android.view.MotionEvent
 import android.view.View
 import android.view.ViewGroup
-import androidx.core.view.isVisible
 import androidx.recyclerview.widget.ItemTouchHelper
 import androidx.recyclerview.widget.RecyclerView
 import com.qtalk.recyclerviewfastscroller.RecyclerViewFastScroller
@@ -24,7 +23,7 @@ import com.simplemobiletools.commons.interfaces.ItemTouchHelperContract
 import com.simplemobiletools.commons.interfaces.RefreshRecyclerViewListener
 import com.simplemobiletools.commons.interfaces.StartReorderDragListener
 import com.simplemobiletools.commons.views.MyRecyclerView
-import kotlinx.android.synthetic.main.item_launcher.view.*
+import kotlinx.android.synthetic.main.item_launcher_label.view.*
 import java.util.*
 
 class LaunchersAdapter(
@@ -69,7 +68,15 @@ class LaunchersAdapter(
         }
     }
 
-    override fun onCreateViewHolder(parent: ViewGroup, viewType: Int) = createViewHolder(R.layout.item_launcher, parent)
+    override fun onCreateViewHolder(parent: ViewGroup, viewType: Int): ViewHolder {
+        val layoutId = if (activity.config.showAppName) {
+            R.layout.item_launcher_label
+        } else {
+            R.layout.item_launcher_no_label
+        }
+
+        return createViewHolder(layoutId, parent)
+    }
 
     override fun onBindViewHolder(holder: ViewHolder, position: Int) {
         val launcher = launchers[position]
@@ -174,11 +181,18 @@ class LaunchersAdapter(
         view.apply {
             val isSelected = selectedKeys.contains(launcher.packageName.hashCode())
             launcher_check?.beInvisibleIf(!isSelected)
-            launcher_label.text = launcher.title
-            launcher_label.setTextColor(textColor)
+            launcher_label?.text = launcher.title
+            launcher_label?.setTextColor(textColor)
+            launcher_label?.beVisibleIf(activity.config.showAppName)
             launcher_icon.setImageDrawable(launcher.drawable!!)
-            launcher_icon.setPadding(iconPadding, iconPadding, iconPadding, 0)
 
+            val bottomPadding = if (activity.config.showAppName) {
+                0
+            } else {
+                iconPadding
+            }
+
+            launcher_icon.setPadding(iconPadding, iconPadding, iconPadding, bottomPadding)
             launcher_drag_handle.beVisibleIf(isChangingOrder)
             if (isChangingOrder) {
                 launcher_drag_handle.applyColorFilter(textColor)
@@ -193,8 +207,6 @@ class LaunchersAdapter(
             if (isSelected) {
                 launcher_check?.background?.applyColorFilter(properPrimaryColor)
             }
-
-            launcher_label.isVisible = activity.config.showAppName
         }
     }
 
diff --git a/app/src/main/res/layout/item_launcher.xml b/app/src/main/res/layout/item_launcher_label.xml
similarity index 100%
rename from app/src/main/res/layout/item_launcher.xml
rename to app/src/main/res/layout/item_launcher_label.xml
diff --git a/app/src/main/res/layout/item_launcher_no_label.xml b/app/src/main/res/layout/item_launcher_no_label.xml
new file mode 100644
index 0000000..0bf42dc
--- /dev/null
+++ b/app/src/main/res/layout/item_launcher_no_label.xml
@@ -0,0 +1,41 @@
+<?xml version="1.0" encoding="utf-8"?>
+<RelativeLayout xmlns:android="http://schemas.android.com/apk/res/android"
+    android:id="@+id/launcher_holder"
+    android:layout_width="wrap_content"
+    android:layout_height="wrap_content"
+    android:background="?attr/selectableItemBackground"
+    android:clickable="true"
+    android:focusable="true"
+    android:padding="@dimen/small_margin">
+
+    <com.simplemobiletools.commons.views.MySquareImageView
+        android:id="@+id/launcher_icon"
+        android:layout_width="match_parent"
+        android:layout_height="@dimen/launcher_icon_size"
+        android:layout_gravity="center"
+        android:adjustViewBounds="true"
+        android:scaleType="fitCenter" />
+
+    <ImageView
+        android:id="@+id/launcher_check"
+        android:layout_width="@dimen/selection_check_size"
+        android:layout_height="@dimen/selection_check_size"
+        android:layout_alignParentTop="true"
+        android:layout_alignParentEnd="true"
+        android:layout_margin="@dimen/small_margin"
+        android:background="@drawable/circle_background"
+        android:padding="@dimen/tiny_margin"
+        android:src="@drawable/ic_check_vector"
+        android:visibility="invisible" />
+
+    <ImageView
+        android:id="@+id/launcher_drag_handle"
+        android:layout_width="@dimen/drag_handle_size"
+        android:layout_height="@dimen/drag_handle_size"
+        android:layout_below="@+id/launcher_check"
+        android:layout_alignParentEnd="true"
+        android:padding="@dimen/small_margin"
+        android:src="@drawable/ic_drag_handle_vector"
+        android:visibility="gone" />
+
+</RelativeLayout>