diff --git a/src/definitions/modules/dropdown.js b/src/definitions/modules/dropdown.js
index 9b46b5327..7f7d33dbf 100644
--- a/src/definitions/modules/dropdown.js
+++ b/src/definitions/modules/dropdown.js
@@ -49,6 +49,7 @@ $.fn.dropdown = function(parameters) {
         $module         = $(this),
         $text           = $module.find(selector.text),
         $search         = $module.find(selector.search),
+        $labels         = $module.find(selector.labels),
         $input          = $module.find(selector.input),
 
         $combo = ($module.prev().find(selector.text).length > 0)
@@ -65,7 +66,8 @@ $.fn.dropdown = function(parameters) {
 
         elementNamespace,
         id,
-        observer,
+        selectObserver,
+        menuObserver,
         module
       ;
 
@@ -117,25 +119,37 @@ $.fn.dropdown = function(parameters) {
           $document
             .off(elementNamespace)
           ;
+          if(selectObserver) {
+            selectObserver.disconnect();
+          }
+          if(menuObserver) {
+            menuObserver.disconnect();
+          }
         },
 
         observeChanges: function() {
           if('MutationObserver' in window) {
-            observer = new MutationObserver(function(mutations) {
-              if( module.is.selectMutation(mutations) ) {
-                module.debug('<select> modified, recreating menu');
-                module.setup.select();
-              }
-              else {
-                module.debug('DOM tree modified, updating selector cache');
-                module.refresh();
-              }
+            selectObserver = new MutationObserver(function(mutations) {
+              module.debug('<select> modified, recreating menu');
+              module.setup.select();
             });
-            observer.observe(element, {
-              childList : true,
-              subtree   : true
+            menuObserver = new MutationObserver(function(mutations) {
+              module.debug('Menu modified, updating selector cache');
+              module.refresh();
             });
-            module.debug('Setting up mutation observer', observer);
+            if(module.has.input()) {
+              selectObserver.observe($input[0], {
+                childList : true,
+                subtree   : true
+              });
+            }
+            if(module.has.menu()) {
+              menuObserver.observe($menu[0], {
+                childList : true,
+                subtree   : true
+              });
+            }
+            module.debug('Setting up mutation observer', selectObserver, menuObserver);
           }
         },
 
@@ -165,12 +179,15 @@ $.fn.dropdown = function(parameters) {
             if( $module.is('select') ) {
               module.setup.select();
             }
-            if( module.is.search() && !module.is.searchable() ) {
+            if( module.is.search() && !module.has.search() ) {
               $search = $('<input />')
                 .addClass(className.search)
                 .insertBefore($text)
               ;
             }
+            if( module.is.multiple() && !module.has.labels()) {
+              $labels = $('<div />').addClass(className.labels).insertBefore($search);
+            }
             if(settings.allowTab) {
               module.set.tabbable();
             }
@@ -238,8 +255,10 @@ $.fn.dropdown = function(parameters) {
             ? $module.prev().find(selector.text)
             : $module.prev()
           ;
-          $menu   = $module.children(selector.menu);
-          $item   = $menu.find(selector.item);
+          $menu    = $module.children(selector.menu);
+          $item    = $menu.find(selector.item);
+          // multiple
+          $labels  = $module.find(selector.labels);
         },
 
         toggle: function() {
@@ -310,7 +329,7 @@ $.fn.dropdown = function(parameters) {
             $module
               .on('keydown' + eventNamespace, module.event.keydown)
             ;
-            if( module.is.searchable() ) {
+            if( module.has.search() ) {
               $module
                 .on(module.get.inputEvent(), selector.search, module.event.input)
               ;
@@ -1071,7 +1090,7 @@ $.fn.dropdown = function(parameters) {
             }
           },
           tabbable: function() {
-            if( module.is.searchable() ) {
+            if( module.has.search() ) {
               module.debug('Searchable dropdown initialized');
               $search
                 .val('')
@@ -1224,7 +1243,7 @@ $.fn.dropdown = function(parameters) {
             $item.removeClass(className.selected);
           },
           tabbable: function() {
-            if( module.is.searchable() ) {
+            if( module.has.search() ) {
               module.debug('Searchable dropdown initialized');
               $search
                 .attr('tabindex', '-1')
@@ -1245,6 +1264,21 @@ $.fn.dropdown = function(parameters) {
           }
         },
 
+        has: {
+          labels: function() {
+            return ($labels.length > 0);
+          },
+          search: function() {
+            return ($search.length > 0);
+          },
+          input: function() {
+            return ($input.length > 0);
+          },
+          menu: function() {
+            return ($menu.length > 0);
+          }
+        },
+
         is: {
           active: function() {
             return $module.hasClass(className.active);
@@ -1267,6 +1301,9 @@ $.fn.dropdown = function(parameters) {
               : $menu.is(':hidden')
             ;
           },
+          multiple: function() {
+            return $module.hasClass(className.multiple) || ($module.is('select') && $module.attr('multiple'));
+          },
           selectMutation: function(mutations) {
             var
               selectChanged = false
@@ -1282,11 +1319,8 @@ $.fn.dropdown = function(parameters) {
           search: function() {
             return $module.hasClass(className.search);
           },
-          searchable: function() {
-            return ($search.length > 0);
-          },
           searchSelection: function() {
-            return ( module.is.searchable() && $search.parent().is($module) );
+            return ( module.has.search() && $search.closest(selector.menu).length == 0 );
           },
           selection: function() {
             return $module.hasClass(className.selection);
@@ -1732,9 +1766,10 @@ $.fn.dropdown.settings = {
     dropdown : '.ui.dropdown',
     input    : '> input[type="hidden"], > select',
     item     : '.item',
+    labels   : '> .labels',
     menu     : '.menu',
     menuIcon : '.dropdown.icon',
-    search   : '> input.search, .menu > .search > input, .menu > input.search',
+    search   : 'input.search, .menu > .search > input',
     text     : '> .text:not(.icon)'
   },
 
@@ -1744,8 +1779,10 @@ $.fn.dropdown.settings = {
     disabled    : 'disabled',
     dropdown    : 'ui dropdown',
     filtered    : 'filtered',
+    labels      : 'labels',
     loading     : 'loading',
     menu        : 'menu',
+    multiple    : 'multiple',
     placeholder : 'default',
     search      : 'search',
     selected    : 'selected',
diff --git a/src/definitions/modules/dropdown.less b/src/definitions/modules/dropdown.less
index c5bdde85c..2992f0f45 100755
--- a/src/definitions/modules/dropdown.less
+++ b/src/definitions/modules/dropdown.less
@@ -457,7 +457,7 @@ select.ui.dropdown {
   box-shadow: @selectionVisibleHoverBoxShadow;
 }
 .ui.selection.visible.dropdown:hover .menu {
-  border: @selectionVisibleHoverMenuBorder;
+  border-color: @selectionVisibleHoverBorderColor;
   box-shadow: @selectionVisibleHoverMenuBoxShadow;
 }
 
@@ -513,10 +513,12 @@ select.ui.dropdown {
 }
 
 /* Text Layering */
+.ui.search.dropdown > .pointer > input.search,
 .ui.search.dropdown > input.search {
   position: absolute;
   z-index: 2;
 }
+.ui.search.dropdown > .pointer > .text,
 .ui.search.dropdown > .text {
   cursor: text;
   position: relative;
@@ -524,22 +526,33 @@ select.ui.dropdown {
 }
 
 /* Search Selection */
+.ui.search.selection.dropdown > .pointer > input.search,
 .ui.search.selection.dropdown > input.search {
   line-height: @searchSelectionLineHeight;
   padding: @searchSelectionInputPadding;
 }
 
 /* Active/Visible Search */
+.ui.search.dropdown.active > .pointer > input.search,
+.ui.search.dropdown.visible > .pointer > input.search,
 .ui.search.dropdown.active > input.search,
 .ui.search.dropdown.visible > input.search {
   cursor: auto;
 }
+.ui.search.dropdown.active > .pointer > .text,
+.ui.search.dropdown.visible > .pointer > .text,
 .ui.search.dropdown.active > .text,
 .ui.search.dropdown.visible > .text {
   pointer-events: none;
 }
-.ui.active.search.dropdown > input.search:focus + .text {
-  color: @unselectedTextColor !important;
+
+/* Filtered Text */
+.ui.active.search.dropdown input.search:focus + .text .icon,
+.ui.active.search.dropdown input.search:focus + .text .flag {
+  opacity: @selectionTextUnderlayIconOpacity;
+}
+.ui.active.search.dropdown input.search:focus + .text {
+  color: @selectionTextUnderlayColor !important;
 }
 
 /* Search Menu */
@@ -570,6 +583,30 @@ select.ui.dropdown {
   }
 }
 
+/*--------------
+    Multiple
+---------------*/
+
+/* Multiple Search Selection */
+.ui.multiple.dropdown > .labels {
+  display: inline-block;
+  vertical-align: middle;
+}
+
+/* Search Selection */
+.ui.multiple.search.selection.dropdown > .labels {
+  margin: -@selectionVerticalPadding 0em;
+}
+.ui.multiple.search.selection.dropdown > input.search {
+  left: auto;
+  min-width: 200px;
+  padding-left: 0;
+}
+.ui.multiple.search.selection.dropdown > .labels + input.search,
+.ui.multiple.search.selection.dropdown > .labels ~ .text {
+  padding-left: 0.5em;
+}
+
 
 /*--------------
      Inline
diff --git a/src/themes/default/modules/dropdown.variables b/src/themes/default/modules/dropdown.variables
index f79baf5cd..473d24aaf 100644
--- a/src/themes/default/modules/dropdown.variables
+++ b/src/themes/default/modules/dropdown.variables
@@ -114,7 +114,7 @@
 @selectionMinWidth: 180px;
 @selectionBackground: @white;
 @selectionDisplay: inline-block;
-@selectionItemDivider: 1px solid rgba(0, 0, 0, 0.05);
+@selectionItemDivider: 1px solid @borderColor;
 @selectionVerticalPadding: 0.8em;
 @selectionHorizontalPadding: 1.1em;
 @selectionPadding: @selectionVerticalPadding @selectionHorizontalPadding;
@@ -129,6 +129,9 @@
 @selectionTextIconDistance: 2em;
 @selectionTextColor: @textColor;
 
+@selectionTextUnderlayIconOpacity: @disabledOpacity;
+@selectionTextUnderlayColor: @unselectedTextColor;
+
 @selectionBoxShadow: none;
 @selectionBorderColor: @borderColor;
 @selectionBorder: 1px solid @selectionBorderColor;