diff --git a/addon-sdk/source/lib/sdk/panel/utils.js b/addon-sdk/source/lib/sdk/panel/utils.js
index 4f8772c30373..b83df9f38f89 100644
--- a/addon-sdk/source/lib/sdk/panel/utils.js
+++ b/addon-sdk/source/lib/sdk/panel/utils.js
@@ -9,6 +9,7 @@ module.metadata = {
 };
 
 const { Cc, Ci } = require("chrome");
+const { Services } = require("resource://gre/modules/Services.jsm");
 const { setTimeout } = require("../timers");
 const { platform } = require("../system");
 const { getMostRecentBrowserWindow, getOwnerBrowserWindow,
@@ -186,6 +187,13 @@ function display(panel, options, anchor) {
     panel.setAttribute("flip", "both");
   }
 
+  panel.viewFrame = document.importNode(panel.backgroundFrame, false);
+  panel.appendChild(panel.viewFrame);
+
+  let {privateBrowsingId} = getDocShell(panel.viewFrame).getOriginAttributes();
+  let principal = Services.scriptSecurityManager.createNullPrincipal({privateBrowsingId});
+  getDocShell(panel.viewFrame).createAboutBlankContentViewer(principal);
+
   // Resize the iframe instead of using panel.sizeTo
   // because sizeTo doesn't work with arrow panels
   panel.firstChild.style.width = width + "px";
@@ -252,12 +260,10 @@ function make(document, options) {
   document = document || getMostRecentBrowserWindow().document;
   let panel = document.createElementNS(XUL_NS, "panel");
   panel.setAttribute("type", "arrow");
-  panel.setAttribute("sdkscriptenabled", "" + options.allowJavascript);
+  panel.setAttribute("sdkscriptenabled", options.allowJavascript);
 
-  // Note that panel is a parent of `viewFrame` who's `docShell` will be
-  // configured at creation time. If `panel` and there for `viewFrame` won't
-  // have an owner document attempt to access `docShell` will throw. There
-  // for we attach panel to a document.
+  // The panel needs to be attached to a browser window in order for us
+  // to copy browser styles to the content document when it loads.
   attach(panel, document);
 
   let frameOptions =  {
@@ -269,34 +275,29 @@ function make(document, options) {
     // history and in consequence do not dispatch "inner-window-destroyed"
     // notifications.
     browser: false,
-    // Note that use of this URL let's use swap frame loaders earlier
-    // than if we used default "about:blank".
-    uri: "data:text/plain;charset=utf-8,"
   };
 
   let backgroundFrame = createFrame(addonWindow, frameOptions);
   setupPanelFrame(backgroundFrame);
 
-  let viewFrame = createFrame(panel, frameOptions);
-  setupPanelFrame(viewFrame);
+  getDocShell(backgroundFrame).inheritPrivateBrowsingId = false;
 
-  function onDisplayChange({type, target}) {
-    // Events from child element like <select /> may propagate (dropdowns are
-    // popups too), in which case frame loader shouldn't be swapped.
-    // See Bug 886329
-    if (target !== this) return;
+  function onPopupShowing({type, target}) {
+    if (target === this) {
+      let attrs = getDocShell(backgroundFrame).getOriginAttributes();
+      getDocShell(panel.viewFrame).setOriginAttributes(attrs);
 
-    try {
-      swapFrameLoaders(backgroundFrame, viewFrame);
-      // We need to re-set this because... swapFrameLoaders. Or something.
-      let shouldEnableScript = panel.getAttribute("sdkscriptenabled") == "true";
-      getDocShell(backgroundFrame).allowJavascript = shouldEnableScript;
-      getDocShell(viewFrame).allowJavascript = shouldEnableScript;
+      swapFrameLoaders(backgroundFrame, panel.viewFrame);
     }
-    catch(error) {
-      console.exception(error);
+  }
+
+  function onPopupHiding({type, target}) {
+    if (target === this) {
+      swapFrameLoaders(backgroundFrame, panel.viewFrame);
+
+      panel.viewFrame.remove();
+      panel.viewFrame = null;
     }
-    events.emit(type, { subject: panel });
   }
 
   function onContentReady({target, type}) {
@@ -316,14 +317,15 @@ function make(document, options) {
       events.emit(type, { subject: panel });
   }
 
-  function onPanelStateChange({type}) {
-    events.emit(type, { subject: panel })
+  function onPanelStateChange({target, type}) {
+    if (target === this)
+      events.emit(type, { subject: panel })
   }
 
-  panel.addEventListener("popupshowing", onDisplayChange, false);
-  panel.addEventListener("popuphiding", onDisplayChange, false);
-  panel.addEventListener("popupshown", onPanelStateChange, false);
-  panel.addEventListener("popuphidden", onPanelStateChange, false);
+  panel.addEventListener("popupshowing", onPopupShowing);
+  panel.addEventListener("popuphiding", onPopupHiding);
+  for (let event of ["popupshowing", "popuphiding", "popupshown", "popuphidden"])
+    panel.addEventListener(event, onPanelStateChange);
 
   panel.addEventListener("click", onPanelClick, false);
 
@@ -339,9 +341,8 @@ function make(document, options) {
 
   events.on("document-element-inserted", onContentChange);
 
-
   panel.backgroundFrame = backgroundFrame;
-  panel.viewFrame = viewFrame;
+  panel.viewFrame = null;
 
   // Store event listener on the panel instance so that it won't be GC-ed
   // while panel is alive.
@@ -368,9 +369,7 @@ exports.detach = detach;
 
 function dispose(panel) {
   panel.backgroundFrame.remove();
-  panel.viewFrame.remove();
   panel.backgroundFrame = null;
-  panel.viewFrame = null;
   events.off("document-element-inserted", panel.onContentChange);
   panel.onContentChange = null;
   detach(panel);
@@ -392,11 +391,7 @@ function style(panel) {
     let contentDocument = getContentDocument(panel);
     let window = document.defaultView;
     let node = document.getAnonymousElementByAttribute(panel, "class",
-                                                       "panel-arrowcontent") ||
-               // Before bug 764755, anonymous content was different:
-               // TODO: Remove this when targeting FF16+
-                document.getAnonymousElementByAttribute(panel, "class",
-                                                        "panel-inner-arrowcontent");
+                                                       "panel-arrowcontent");
 
     let { color, fontFamily, fontSize, fontWeight } = window.getComputedStyle(node);
 
@@ -424,10 +419,7 @@ function style(panel) {
 }
 exports.style = style;
 
-var getContentFrame = panel =>
-    (isOpen(panel) || isOpening(panel)) ?
-    panel.firstChild :
-    panel.backgroundFrame
+var getContentFrame = panel => panel.viewFrame || panel.backgroundFrame;
 exports.getContentFrame = getContentFrame;
 
 function getContentDocument(panel) {
@@ -436,7 +428,10 @@ function getContentDocument(panel) {
 exports.getContentDocument = getContentDocument;
 
 function setURL(panel, url) {
-  getContentFrame(panel).setAttribute("src", url ? data.url(url) : url);
+  let frame = getContentFrame(panel);
+  let webNav = getDocShell(frame).QueryInterface(Ci.nsIWebNavigation);
+
+  webNav.loadURI(url ? data.url(url) : "about:blank", 0, null, null, null);
 }
 
 exports.setURL = setURL;
diff --git a/addon-sdk/source/test/addons/private-browsing-supported/test-panel.js b/addon-sdk/source/test/addons/private-browsing-supported/test-panel.js
index 53cb3d01a7ea..1ba3e955447e 100644
--- a/addon-sdk/source/test/addons/private-browsing-supported/test-panel.js
+++ b/addon-sdk/source/test/addons/private-browsing-supported/test-panel.js
@@ -7,6 +7,8 @@ const { open, focus, close } = require('sdk/window/helpers');
 const { isPrivate } = require('sdk/private-browsing');
 const { defer } = require('sdk/core/promise');
 const { browserWindows: windows } = require('sdk/windows');
+const { getInnerId, getMostRecentBrowserWindow } = require('sdk/window/utils');
+const { getActiveView } = require('sdk/view/core');
 
 const BROWSER = 'chrome://browser/content/browser.xul';
 
@@ -17,7 +19,7 @@ exports.testRequirePanel = function(assert) {
 
 exports.testShowPanelInPrivateWindow = function(assert, done) {
   let panel = require('sdk/panel').Panel({
-    contentURL: "data:text/html;charset=utf-8,"
+    contentURL: "data:text/html;charset=utf-8,I'm a leaf on the wind"
   });
 
   assert.ok(windows.length > 0, 'there is at least one open window');
@@ -25,7 +27,50 @@ exports.testShowPanelInPrivateWindow = function(assert, done) {
     assert.equal(isPrivate(window), false, 'open window is private');
   }
 
-  testShowPanel(assert, panel).
+  let panelView = getActiveView(panel);
+  let expectedWindowId = getInnerId(panelView.backgroundFrame.contentWindow);
+
+  function checkPanelFrame() {
+    let iframe = panelView.firstChild;
+
+    assert.equal(panelView.viewFrame, iframe, 'panel has the correct viewFrame value');
+
+    let windowId = getInnerId(iframe.contentWindow);
+
+    assert.equal(windowId, expectedWindowId, 'panel has the correct window visible');
+
+    assert.equal(iframe.contentDocument.body.textContent,
+                 "I'm a leaf on the wind",
+                 'the panel has the expected content');
+  }
+
+  function testPanel(window) {
+    let { promise, resolve } = defer();
+
+    assert.ok(!panel.isShowing, 'the panel is not showing [1]');
+
+    panel.once('show', function() {
+      assert.ok(panel.isShowing, 'the panel is showing');
+
+      checkPanelFrame();
+
+      panel.once('hide', function() {
+        assert.ok(!panel.isShowing, 'the panel is not showing [2]');
+
+        resolve(window);
+      });
+
+      panel.hide();
+    });
+
+    panel.show();
+
+    return promise;
+  };
+
+  let initialWindow = getMostRecentBrowserWindow();
+
+  testPanel(initialWindow).
     then(makeEmptyPrivateBrowserWindow).
     then(focus).
     then(function(window) {
@@ -33,28 +78,10 @@ exports.testShowPanelInPrivateWindow = function(assert, done) {
       assert.pass('private window was focused');
       return window;
     }).
-    then(function(window) {
-      let { promise, resolve } = defer();
-
-      assert.ok(!panel.isShowing, 'the panel is not showing [1]');
-
-      panel.once('show', function() {
-        assert.ok(panel.isShowing, 'the panel is showing');
-
-        panel.once('hide', function() {
-          assert.ok(!panel.isShowing, 'the panel is not showing [2]');
-
-          resolve(window);
-        });
-
-        panel.hide();
-      });
-
-      panel.show();
-
-      return promise;
-    }).
+    then(testPanel).
     then(close).
+    then(() => focus(initialWindow)).
+    then(testPanel).
     then(done).
     then(null, assert.fail);
 };
@@ -70,32 +97,3 @@ function makeEmptyPrivateBrowserWindow(options) {
     }
   });
 }
-
-function testShowPanel(assert, panel) {
-  let { promise, resolve } = defer();
-  let shown = false;
-
-  assert.ok(!panel.isShowing, 'the panel is not showing [1]');
-
-  panel.once('hide', function() {
-    assert.ok(!panel.isShowing, 'the panel is not showing [2]');
-    assert.ok(shown, 'the panel was shown')
-
-    resolve(null);
-  });
-
-  panel.once('show', function() {
-    shown = true;
-
-    assert.ok(panel.isShowing, 'the panel is showing');
-
-    panel.hide();
-  });
-
-  panel.show();
-
-  return promise;
-}
-
-//Test disabled because of bug 911071
-module.exports = {}