diff --git a/package-lock.json b/package-lock.json
index 32c634d381f..3de1baac556 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,6 +1,6 @@
 {
   "name": "angular-material-source",
-  "version": "1.1.22",
+  "version": "1.1.23",
   "lockfileVersion": 1,
   "requires": true,
   "dependencies": {
diff --git a/src/components/panel/panel.js b/src/components/panel/panel.js
index aeb44e667d5..e7a3737a9a6 100644
--- a/src/components/panel/panel.js
+++ b/src/components/panel/panel.js
@@ -2023,6 +2023,7 @@ MdPanelRef.prototype._updatePosition = function(init) {
     // Hide the panel now that position is known.
     if (init) {
       this.panelEl.removeClass('_md-panel-offscreen');
+      this.innerWrapper.removeClass('_md-panel-offscreen');
       this.panelContainer.addClass(MD_PANEL_HIDDEN);
     }