diff --git a/demos/menu/contextmenu.html b/demos/menu/contextmenu.html
index e031c2c4c..961cdd450 100644
--- a/demos/menu/contextmenu.html
+++ b/demos/menu/contextmenu.html
@@ -14,17 +14,17 @@
 	<link href="../demos.css" rel="stylesheet" />
 	<script>
 	$(function() {
-		$(".demo button").button({
+		var btn = $(".demo button").button({
 			icons: {
 				primary: "ui-icon-home",
 				secondary: "ui-icon-triangle-1-s"
 			}
-		}).next().menu({
+		});
+		$("#cities").menu({
 			select: function(event, ui) {
-				$(this).hide();
 				$("#log").append("<div>Selected " + ui.item.text() + "</div>");
-			}
-		}).popup();
+			},
+			trigger : btn});
 	});
 	</script>
 	<style>
@@ -36,7 +36,7 @@
 <div class="demo">
 
 	<button>Select a city</button>
-	<ul>
+	<ul id="cities">
 		<li><a href="#Amsterdam">Amsterdam</a></li>
 		<li><a href="#Anaheim">Anaheim</a></li>
 		<li><a href="#Cologne">Cologne</a></li>
diff --git a/demos/popup/popup-menu.html b/demos/popup/popup-menu.html
index ddcef4957..8041e2fa3 100644
--- a/demos/popup/popup-menu.html
+++ b/demos/popup/popup-menu.html
@@ -16,16 +16,13 @@
 		function log( msg ) {
 			$( "<div/>" ).text( msg ).appendTo( "#log" );
 		}
-		var selected = {
-			select: function( event, ui ) {
-				log( "Selected: " + ui.item.text() );
-				$(this).popup("close");
-			}
-		};
+		var selected = function( event, ui ) {
+			log( "Selected: " + ui.item.text() );
+			$(this).popup( "close" );
+		}
+
+		$("#button1").button().next().menu( {select: selected, trigger: $("#button1")} );
 
-		$("#button1").button()
-			.next().menu(selected).popup();
-		
 		$( "#rerun" )
 			.button()
 			.click(function() {
@@ -39,10 +36,7 @@
 					}
 				})
 				.next()
-					.menu(selected)
-					.popup({
-						trigger: $("#select")
-					})
+					.menu( {select: selected, trigger: $("#select")} )
 				.parent()
 					.buttonset({
 						items: "button"
@@ -69,8 +63,8 @@
 		<li><a href="#">Utrecht</a></li>
 		<li><a href="#">Zurich</a></li>
 	</ul>
-	
-	
+
+
 	<div>
 		<div>
 			<button id="rerun">Run last action</button>
diff --git a/ui/jquery.ui.menu.js b/ui/jquery.ui.menu.js
index 944e47b7c..f2f758d96 100644
--- a/ui/jquery.ui.menu.js
+++ b/ui/jquery.ui.menu.js
@@ -24,7 +24,8 @@ $.widget( "ui.menu", {
 		position: {
 			my: "left top",
 			at: "right top"
-		}
+		},
+		trigger: null
 	},
 	_create: function() {
 		this.activeMenu = this.element;
@@ -39,6 +40,16 @@ $.widget( "ui.menu", {
 				id: this.menuId,
 				role: "menu"
 			})
+			// Prevent focus from sticking to links inside menu after clicking
+			// them (focus should always stay on UL during navigation).
+			// If the link is clicked, redirect focus to the menu.
+			// TODO move to _bind below
+			.bind( "mousedown.menu", function( event ) {
+				if ( $( event.target).is( "a" ) ) {
+					event.preventDefault();
+					$( this ).focus( 1 );
+				}
+			})
 			// need to catch all clicks on disabled menu
 			// not possible through _bind
 			.bind( "click.menu", $.proxy( function( event ) {
@@ -203,10 +214,24 @@ $.widget( "ui.menu", {
 				}
 			}
 		});
+
+		if ( this.options.trigger ) {
+			this.element.popup({
+				trigger: this.options.trigger,
+				managed: true,
+				focusPopup: $.proxy( function( event, ui ) {
+					this.focus( event, this.element.children( ".ui-menu-item" ).first() );
+					this.element.focus( 1 );
+				}, this)
+			});
+		}
 	},
 
 	_destroy: function() {
 		//destroy (sub)menus
+		if ( this.options.trigger ) {
+			this.element.popup( "destroy" );
+		}
 		this.element
 			.removeAttr( "aria-activedescendant" )
 			.find( ".ui-menu" )
@@ -508,6 +533,10 @@ $.widget( "ui.menu", {
 			item: this.active
 		};
 		this.collapseAll( event, true );
+		if ( this.options.trigger ) {
+			$( this.options.trigger ).focus( 1 );
+			this.element.popup( "close" );
+		}
 		this._trigger( "select", event, ui );
 	}
 });
diff --git a/ui/jquery.ui.popup.js b/ui/jquery.ui.popup.js
index 4726f3a61..8b8c4796c 100644
--- a/ui/jquery.ui.popup.js
+++ b/ui/jquery.ui.popup.js
@@ -14,7 +14,8 @@
  */
 (function($) {
 
-var idIncrement = 0;
+var idIncrement = 0,
+	suppressExpandOnFocus = false;
 
 $.widget( "ui.popup", {
 	version: "@VERSION",
@@ -23,6 +24,8 @@ $.widget( "ui.popup", {
 			my: "left top",
 			at: "left bottom"
 		},
+		managed: false,
+		expandOnFocus: false,
 		show: {
 			effect: "slideDown",
 			duration: "fast"
@@ -43,9 +46,10 @@ $.widget( "ui.popup", {
 		}
 
 		if ( !this.element.attr( "role" ) ) {
-			// TODO alternatives to tooltip are dialog and menu, all three aren't generic popups
-			this.element.attr( "role", "dialog" );
-			this.generatedRole = true;
+			if ( !this.options.managed  ) {
+				this.element.attr( "role", "dialog" );
+				this.generatedRole = true;
+			}
 		}
 
 		this.options.trigger
@@ -59,37 +63,90 @@ $.widget( "ui.popup", {
 
 		this._bind(this.options.trigger, {
 			keydown: function( event ) {
-				// prevent space-to-open to scroll the page, only happens for anchor ui.button
-				if ( $.ui.button && this.options.trigger.is( "a:ui-button" ) && event.keyCode == $.ui.keyCode.SPACE ) {
-					event.preventDefault();
-				}
-				// TODO handle SPACE to open popup? only when not handled by ui.button
-				if ( event.keyCode == $.ui.keyCode.SPACE && this.options.trigger.is( "a:not(:ui-button)" ) ) {
-					this.options.trigger.trigger( "click", event );
-				}
-				// translate keydown to click
-				// opens popup and let's tooltip hide itself
-				if ( event.keyCode == $.ui.keyCode.DOWN ) {
-					// prevent scrolling
-					event.preventDefault();
-					this.options.trigger.trigger( "click", event );
+				switch ( event.keyCode ) {
+					case $.ui.keyCode.TAB:
+						// Waiting for close() will make popup hide too late, which breaks tab key behavior
+						this.element.hide();
+						this.close( event );
+						break;
+					case $.ui.keyCode.ESCAPE:
+						if ( this.isOpen ) {
+							this.close( event );
+						}
+						break;
+					case $.ui.keyCode.SPACE:
+						// prevent space-to-open to scroll the page, only happens for anchor ui.button
+						// TODO check for $.ui.button before using custom selector, once more below
+						if ( this.options.trigger.is( "a:ui-button" ) ) {
+							event.preventDefault();
+						}
+
+						else if (this.options.trigger.is( "a:not(:ui-button)" ) ) {
+							this.options.trigger.trigger( "click", event );
+						}
+						break;
+					case $.ui.keyCode.DOWN:
+					case $.ui.keyCode.UP:
+						// prevent scrolling
+						event.preventDefault();
+						var that = this;
+						clearTimeout( this.closeTimer );
+						setTimeout(function() {
+							that.open( event );
+							that.focusPopup( event );
+						}, 1);
+						break;
 				}
 			},
 			click: function( event ) {
+				event.stopPropagation();
 				event.preventDefault();
+			},
+			mousedown: function( event ) {
+				var noFocus = false;
+				/* TODO: Determine in which cases focus should stay on the trigger after the popup opens
+				(should apply for any trigger that has other interaction besides opening the popup, e.g. a text field) */
+				if ( $( event.target ).is( "input" ) ) {
+					noFocus = true;
+				}
 				if (this.isOpen) {
-					// let it propagate to close
+					suppressExpandOnFocus = true;
+					this.close();
 					return;
 				}
+				this.open( event );
+				var that = this;
 				clearTimeout( this.closeTimer );
 				this._delay(function() {
-					this.open( event );
+					if ( !noFocus ) {
+						that.focusPopup();
+					}
 				}, 1);
 			}
 		});
 
-		if ( !$.ui.menu || !this.element.is( ":ui-menu" ) ) {
-			// default use case, wrap tab order in popup
+		if ( this.options.expandOnFocus ) {
+			this._bind( this.options.trigger, {
+				focus : function( event ) {
+					if ( !suppressExpandOnFocus ) {
+						var that = this;
+						setTimeout(function() {
+							if ( !that.isOpen ) {
+								that.open( event );
+							}
+						}, 1);
+					}
+					setTimeout(function() {
+						suppressExpandOnFocus = false;
+					}, 100);
+				},
+				blur: function( event ) {
+					suppressExpandOnFocus = false;
+				}
+			});
+		}
+		if ( !this.options.managed ) {
+			//default use case, wrap tab order in popup
 			this._bind({ keydown : function( event ) {
 					if ( event.keyCode !== $.ui.keyCode.TAB ) {
 						return;
@@ -109,21 +166,34 @@ $.widget( "ui.popup", {
 		}
 
 		this._bind({
-			// TODO only triggered on element if it can receive focus
-			// bind to document instead?
-			// either element itself or a child should be focusable
+			focusout: function( event ) {
+				var that = this;
+				// use a timer to allow click to clear it and letting that
+				// handle the closing instead of opening again
+				that.closeTimer = setTimeout( function() {
+					that.close( event );
+				}, 100);
+			},
+			focusin: function( event ) {
+				clearTimeout( this.closeTimer );
+			},
+			mouseup: function( event ) {
+				clearTimeout( this.closeTimer );
+			}
+		});
+
+		this._bind({
 			keyup: function( event ) {
 				if ( event.keyCode == $.ui.keyCode.ESCAPE && this.element.is( ":visible" ) ) {
 					this.close( event );
-					// TODO move this to close()? would allow menu.select to call popup.close, and get focus back to trigger
-					this.options.trigger.focus();
+					this.focusTrigger();
 				}
 			}
 		});
 
 		this._bind(document, {
 			click: function( event ) {
-				if ( this.isOpen && !$(event.target).closest(".ui-popup").length ) {
+				if ( this.isOpen && !$( event.target ).closest( this.element.add( this.options.trigger ) ).length ) {
 					this.close( event );
 				}
 			}
@@ -161,11 +231,14 @@ $.widget( "ui.popup", {
 			.attr( "aria-expanded", "true" )
 			.position( position );
 
-		// can't use custom selector when menu isn't loaded
-		if ( $.ui.menu && this.element.is( ":ui-menu" ) ) {
-			this.element.menu( "focus", event, this.element.children( "li" ).first() );
-			this.element.focus();
-		} else {
+		// take trigger out of tab order to allow shift-tab to skip trigger
+		this.options.trigger.attr( "tabindex", -1 );
+		this.isOpen = true;
+		this._trigger( "open", event );
+	},
+
+	focusPopup: function( event ) {
+		if ( !this.options.managed ) {
 			// set focus to the first tabbable element in the popup container
 			// if there are no tabbable elements, set focus on the popup itself
 			var tabbables = this.element.find( ":tabbable" );
@@ -179,11 +252,13 @@ $.widget( "ui.popup", {
 			}
 			tabbables.first().focus( 1 );
 		}
+		this._trigger( "focusPopup", event );
+	},
 
-		// take trigger out of tab order to allow shift-tab to skip trigger
-		this.options.trigger.attr( "tabindex", -1 );
-		this.isOpen = true;
-		this._trigger( "open", event );
+	focusTrigger: function( event ) {
+		suppressExpandOnFocus = true;
+		this.options.trigger.focus();
+		this._trigger( "focusTrigger", event );
 	},
 
 	close: function( event ) {