diff --git a/ui/jquery.ui.datepicker.js b/ui/jquery.ui.datepicker.js
index 789afe1f1..551b22551 100644
--- a/ui/jquery.ui.datepicker.js
+++ b/ui/jquery.ui.datepicker.js
@@ -651,6 +651,10 @@ $.extend(Datepicker.prototype, {
 			if (inst.input.is(':visible') && !inst.input.is(':disabled'))
 				inst.input[0].focus();
 			$.datepicker._curInst = inst;
+			
+			// find the dialog wrapping the input, if any, and bind to close event
+			inst._dialog = $(input).closest('.ui-dialog-content')
+								.bind('dialogclose.datepicker', function() { $.datepicker._hideDatepicker(input); });
 		}
 	},
 
@@ -775,6 +779,9 @@ $.extend(Datepicker.prototype, {
 				}
 			}
 			this._inDialog = false;
+			
+			if (inst._dialog)
+				inst._dialog.unbind('dialogclose.datepicker');
 		}
 	},
 
diff --git a/ui/jquery.ui.dialog.js b/ui/jquery.ui.dialog.js
index 7694810b1..7d4b3c8cd 100644
--- a/ui/jquery.ui.dialog.js
+++ b/ui/jquery.ui.dialog.js
@@ -601,7 +601,7 @@ $.extend($.ui.dialog.overlay, {
 				if ($.ui.dialog.overlay.instances.length) {
 					$(document).bind($.ui.dialog.overlay.events, function(event) {
 						// stop events if the z-index of the target is <= the z-index of the overlay
-						return ($(event.target).zIndex() > $.ui.dialog.overlay.maxZ);
+						return ($(event.target).zIndex() >= $.ui.dialog.overlay.maxZ);
 					});
 				}
 			}, 1);