diff --git a/indra/newview/llfloaterpreference.cpp b/indra/newview/llfloaterpreference.cpp
index 6a7b5171b5..338b6555ff 100644
--- a/indra/newview/llfloaterpreference.cpp
+++ b/indra/newview/llfloaterpreference.cpp
@@ -342,6 +342,8 @@ BOOL LLFloaterPreference::postBuild()
 
 	gSavedSettings.getControl("ChatFontSize")->getSignal()->connect(boost::bind(&LLNearbyChat::processChatHistoryStyleUpdate, _2));
 
+	gSavedSettings.getControl("ChatBubbleOpacity")->getSignal()->connect(boost::bind(&LLFloaterPreference::onNameTagOpacityChange, this, _2));
+
 	LLTabContainer* tabcontainer = getChild<LLTabContainer>("pref core");
 	if (!tabcontainer->selectTab(gSavedSettings.getS32("LastPrefTab")))
 		tabcontainer->selectFirstTab();
@@ -745,6 +747,16 @@ void LLFloaterPreference::onLanguageChange()
 	}
 }
 
+void LLFloaterPreference::onNameTagOpacityChange(const LLSD& newvalue)
+{
+	LLColorSwatchCtrl* color_swatch = findChild<LLColorSwatchCtrl>("background");
+	if (color_swatch)
+	{
+		LLColor4 new_color = color_swatch->get();
+		color_swatch->set( new_color.setAlpha(newvalue.asReal()) );
+	}
+}
+
 void LLFloaterPreference::onClickSetCache()
 {
 	std::string cur_name(gSavedSettings.getString("CacheLocation"));
diff --git a/indra/newview/llfloaterpreference.h b/indra/newview/llfloaterpreference.h
index bb871e7e25..0f51189853 100644
--- a/indra/newview/llfloaterpreference.h
+++ b/indra/newview/llfloaterpreference.h
@@ -84,6 +84,7 @@ protected:
 
 	void		onClickBrowserClearCache();
 	void		onLanguageChange();
+	void		onNameTagOpacityChange(const LLSD& newvalue);
 
 	// set value of "BusyResponseChanged" in account settings depending on whether busy response
 	// string differs from default after user changes.
diff --git a/indra/newview/skins/default/xui/en/panel_preferences_colors.xml b/indra/newview/skins/default/xui/en/panel_preferences_colors.xml
index 5797a63f4e..8a37822413 100644
--- a/indra/newview/skins/default/xui/en/panel_preferences_colors.xml
+++ b/indra/newview/skins/default/xui/en/panel_preferences_colors.xml
@@ -275,9 +275,9 @@
    height="12"
    name="bubble_chat"
    top_pad="20"
-   width="140"
+   width="450"
    >
-    Bubble chat background:
+    Name tag background color (also affects Bubble Chat):
   </text>
   <color_swatch
    can_apply_immediately="true"
@@ -290,7 +290,7 @@
    left_delta="10"
    top_pad="5"
    name="background"
-   tool_tip="Choose color for bubble chat"
+   tool_tip="Choose name tag color"
    width="44">
    <color_swatch.init_callback
     function="Pref.getUIColor"
@@ -310,6 +310,7 @@
    left_pad="10"
    label_width="70"
    name="bubble_chat_opacity"
+   tool_tip="Choose name tag opacity"
    top_delta = "6"
    width="378" />
   <text