diff --git a/indra/newview/llfloaterimnearbychat.cpp b/indra/newview/llfloaterimnearbychat.cpp
index 257b39a7dda1f4cafa3153fd6c153411f83ec597..7d0ff22ed328d55983130efdacdaaad454a295f1 100644
--- a/indra/newview/llfloaterimnearbychat.cpp
+++ b/indra/newview/llfloaterimnearbychat.cpp
@@ -304,6 +304,13 @@ void LLFloaterIMNearbyChat::onClose(bool app_quitting)
 {
 	// Override LLFloaterIMSessionTab::onClose() so that Nearby Chat is not removed from the conversation floater
 	LLFloaterIMSessionTab::restoreFloater();
+	if (app_quitting)
+	{
+		// We are starting and closing floater in "expanded" state
+		// Update expanded (restored) rect and position for use in next session
+		forceReshape();
+		storeRectControl();
+	}
 }
 
 // virtual