diff --git a/src/ChangeLog b/src/ChangeLog
index babfb66bacc..51d77283ffd 100644
--- a/src/ChangeLog
+++ b/src/ChangeLog
@@ -1,3 +1,9 @@
+2014-07-23  Dmitry Antipov  <dmantipov@yandex.ru>
+
+	* frame.c (Fset_frame_height): Take frame top margin into account.
+	Incorrect behavior was reported by Martin Rudalics <rudalics@gmx.at> in
+	<http://lists.gnu.org/archive/html/emacs-devel/2014-07/msg00258.html>
+
 2014-07-22  Dmitry Antipov  <dmantipov@yandex.ru>
 
 	* xterm.h (struct x_output) [USE_X_TOOLKIT || USE_GTK]: Define
diff --git a/src/frame.c b/src/frame.c
index 731a62705bd..e68a3db24ea 100644
--- a/src/frame.c
+++ b/src/frame.c
@@ -2584,8 +2584,9 @@ FRAME should be HEIGHT pixels high.  */)
     {
       if (NILP (pixelwise))
 	{
-	  if (XINT (height) != FRAME_LINES (f))
-	    x_set_window_size (f, 1, FRAME_COLS (f), XINT (height), 0);
+	  if (FRAME_LINES (f) - FRAME_TOP_MARGIN (f) != XINT (height))
+	    x_set_window_size (f, 1, FRAME_COLS (f),
+			       XINT (height) + FRAME_TOP_MARGIN (f), 0);
 
 	  do_pending_window_change (0);
 	}