diff --git a/client.c b/client.c
index c252a3b9..39d6328c 100644
--- a/client.c
+++ b/client.c
@@ -422,8 +422,23 @@ client_manage(Window w, XWindowAttributes *wa, int screen)
         client_setfloating(c, rettrans || c->isfixed);
 
     if(!(flags & (USPosition | PPosition)))
-        c->f_geometry =
-            globalconf.screens[c->screen].floating_placement(c->f_geometry, c->border, c->screen);
+    {
+        c->f_geometry = globalconf.screens[c->screen].floating_placement(c->f_geometry,
+                                                                         c->border,
+                                                                         c->screen);
+        /* remove effects of the titlebar */
+        switch(c->titlebar.position)
+        {
+          case Top:
+            c->f_geometry.y += c->titlebar.sw->geometry.height;
+            break;
+          case Left:
+            c->f_geometry.x += c->titlebar.sw->geometry.width;
+            break;
+          default:
+            break;
+        }
+    }
 
     XSelectInput(globalconf.display, w, StructureNotifyMask | PropertyChangeMask | EnterWindowMask);
 
@@ -567,7 +582,7 @@ client_resize(Client *c, area_t geometry, Bool hints)
         {
             if(!c->ismax)
                 c->f_geometry = geometry;
-                titlebar_update_geometry_floating(c);
+            titlebar_update_geometry_floating(c);
         }
 
         XConfigureWindow(globalconf.display, c->win,
diff --git a/placement.c b/placement.c
index 7927fb4f..691a1353 100644
--- a/placement.c
+++ b/placement.c
@@ -55,6 +55,35 @@ placement_fix_offscreen(area_t geometry, int screen, int border)
     return newgeometry;
 }
 
+static area_t
+placement_geometry_add_titlebar(Titlebar *t, area_t geometry)
+{
+    if(!t->sw)
+        return geometry;
+
+    switch(t->position)
+    {
+      default:
+        break;
+      case Top:
+        geometry.y -= t->sw->geometry.height;
+        geometry.height += t->sw->geometry.height;
+        break;
+      case Bottom:
+        geometry.y += t->sw->geometry.height;
+        break;
+      case Left:
+        geometry.x -= t->sw->geometry.width;
+        geometry.width += t->sw->geometry.width;
+        break;
+      case Right:
+        geometry.width += t->sw->geometry.width;
+        break;
+    }
+
+    return geometry;
+}
+
 /** Compute smart coordinates for a client window
  * \param geometry current/requested client geometry
  * \param screen screen used
@@ -82,6 +111,7 @@ placement_smart(area_t geometry, int border, int screen)
             newgeometry = c->f_geometry;
             newgeometry.width += 2 * c->border;
             newgeometry.height += 2 * c->border;
+            newgeometry = placement_geometry_add_titlebar(&c->titlebar, newgeometry);
             area_list_remove(&arealist, &newgeometry);
         }