diff --git a/web/react/components/edit_channel_purpose_modal.jsx b/web/react/components/edit_channel_purpose_modal.jsx
index 4cb96a3ff0..65e8183de8 100644
--- a/web/react/components/edit_channel_purpose_modal.jsx
+++ b/web/react/components/edit_channel_purpose_modal.jsx
@@ -3,6 +3,8 @@
 
 const AsyncClient = require('../utils/async_client.jsx');
 const Client = require('../utils/client.jsx');
+const Utils = require('../utils/utils.jsx');
+
 const Modal = ReactBootstrap.Modal;
 
 export default class EditChannelPurposeModal extends React.Component {
@@ -75,11 +77,6 @@ export default class EditChannelPurposeModal extends React.Component {
             title = <span>{'Edit Purpose for '}<span className='name'>{this.props.channel.display_name}</span></span>;
         }
 
-        let channelTerm = 'Channel';
-        if (this.props.channel.channelType === 'P') {
-            channelTerm = 'Group';
-        }
-
         return (
             <Modal
                 className='modal-edit-channel-purpose'
@@ -93,7 +90,7 @@ export default class EditChannelPurposeModal extends React.Component {
                     </Modal.Title>
                 </Modal.Header>
                 <Modal.Body>
-                    <p>{`Describe how this ${channelTerm} should be used.`}</p>
+                    <p>{`Describe how this ${Utils.getChannelTerm(this.props.channel.channelType)} should be used.`}</p>
                     <textarea
                         ref='purpose'
                         className='form-control no-resize'
diff --git a/web/react/components/search_autocomplete.jsx b/web/react/components/search_autocomplete.jsx
index 03e14ec49d..736919697b 100644
--- a/web/react/components/search_autocomplete.jsx
+++ b/web/react/components/search_autocomplete.jsx
@@ -3,14 +3,15 @@
 
 const ChannelStore = require('../stores/channel_store.jsx');
 const KeyCodes = require('../utils/constants.jsx').KeyCodes;
+const Popover = ReactBootstrap.Popover;
 const UserStore = require('../stores/user_store.jsx');
 const Utils = require('../utils/utils.jsx');
+const Constants = require('../utils/constants.jsx');
 
 const patterns = new Map([
     ['channels', /\b(?:in|channel):\s*(\S*)$/i],
     ['users', /\bfrom:\s*(\S*)$/i]
 ]);
-const Popover = ReactBootstrap.Popover;
 
 export default class SearchAutocomplete extends React.Component {
     constructor(props) {
@@ -22,8 +23,13 @@ export default class SearchAutocomplete extends React.Component {
         this.handleKeyDown = this.handleKeyDown.bind(this);
 
         this.completeWord = this.completeWord.bind(this);
+        this.getSelection = this.getSelection.bind(this);
+        this.scrollToItem = this.scrollToItem.bind(this);
         this.updateSuggestions = this.updateSuggestions.bind(this);
 
+        this.renderChannelSuggestion = this.renderChannelSuggestion.bind(this);
+        this.renderUserSuggestion = this.renderUserSuggestion.bind(this);
+
         this.state = {
             show: false,
             mode: '',
@@ -37,9 +43,18 @@ export default class SearchAutocomplete extends React.Component {
         $(document).on('click', this.handleDocumentClick);
     }
 
-    componentDidUpdate() {
-        $(ReactDOM.findDOMNode(this.refs.searchPopover)).find('.popover-content').perfectScrollbar();
-        $(ReactDOM.findDOMNode(this.refs.searchPopover)).find('.popover-content').css('max-height', $(window).height() - 200);
+    componentDidUpdate(prevProps, prevState) {
+        const content = $(ReactDOM.findDOMNode(this.refs.searchPopover)).find('.popover-content');
+
+        if (this.state.show) {
+            if (!prevState.show) {
+                content.perfectScrollbar();
+                content.css('max-height', $(window).height() - 200);
+            }
+
+            // keep the keyboard selection visible when scrolling
+            this.scrollToItem(this.getSelection());
+        }
     }
 
     componentWillUnmount() {
@@ -51,7 +66,7 @@ export default class SearchAutocomplete extends React.Component {
     }
 
     handleDocumentClick(e) {
-        const container = $(ReactDOM.findDOMNode(this.refs.container));
+        const container = $(ReactDOM.findDOMNode(this.refs.searchPopover));
 
         if (!(container.is(e.target) || container.has(e.target).length > 0)) {
             this.setState({
@@ -111,15 +126,7 @@ export default class SearchAutocomplete extends React.Component {
         } else if (e.which === KeyCodes.ENTER || e.which === KeyCodes.SPACE) {
             e.preventDefault();
 
-            this.completeSelectedWord();
-        }
-    }
-
-    completeSelectedWord() {
-        if (this.state.mode === 'channels') {
-            this.completeWord(this.state.suggestions[this.state.selection].name);
-        } else if (this.state.mode === 'users') {
-            this.completeWord(this.state.suggestions[this.state.selection].username);
+            this.completeWord(this.getSelection());
         }
     }
 
@@ -135,6 +142,40 @@ export default class SearchAutocomplete extends React.Component {
         });
     }
 
+    getSelection() {
+        if (this.state.mode === 'channels') {
+            return this.state.suggestions[this.state.selection].name;
+        } else if (this.state.mode === 'users') {
+            return this.state.suggestions[this.state.selection].username;
+        }
+
+        return '';
+    }
+
+    scrollToItem(itemName) {
+        const content = $(ReactDOM.findDOMNode(this.refs.searchPopover)).find('.popover-content');
+        const visibleContentHeight = content[0].clientHeight;
+        const actualContentHeight = content[0].scrollHeight;
+
+        if (this.state.suggestions.length > 0 && visibleContentHeight < actualContentHeight) {
+            const contentTop = content.scrollTop();
+            const contentTopPadding = parseInt(content.css('padding-top'), 10);
+            const contentBottomPadding = parseInt(content.css('padding-top'), 10);
+
+            const item = $(this.refs[itemName]);
+            const itemTop = item[0].offsetTop - parseInt(item.css('margin-top'), 10);
+            const itemBottom = item[0].offsetTop + item.height() + parseInt(item.css('margin-bottom'), 10);
+
+            if (itemTop - contentTopPadding < contentTop) {
+                // the item is off the top of the visible space
+                content.scrollTop(itemTop - contentTopPadding);
+            } else if (itemBottom + contentTopPadding + contentBottomPadding > contentTop + visibleContentHeight) {
+                // the item has gone off the bottom of the visible space
+                content.scrollTop(itemBottom - visibleContentHeight + contentTopPadding + contentBottomPadding);
+            }
+        }
+    }
+
     updateSuggestions(mode, filter) {
         let suggestions = [];
 
@@ -193,6 +234,46 @@ export default class SearchAutocomplete extends React.Component {
         });
     }
 
+    renderChannelSuggestion(channel) {
+        let className = 'search-autocomplete__item';
+        if (channel.name === this.getSelection()) {
+            className += ' selected';
+        }
+
+        return (
+            <div
+                key={channel.name}
+                ref={channel.name}
+                onClick={this.handleClick.bind(this, channel.name)}
+                className={className}
+            >
+                {channel.name}
+            </div>
+        );
+    }
+
+    renderUserSuggestion(user) {
+        let className = 'search-autocomplete__item';
+        if (user.username === this.getSelection()) {
+            className += ' selected';
+        }
+
+        return (
+            <div
+                key={user.username}
+                ref={user.username}
+                onClick={this.handleClick.bind(this, user.username)}
+                className={className}
+            >
+                <img
+                    className='profile-img rounded'
+                    src={'/api/v1/users/' + user.id + '/image?time=' + user.update_at}
+                />
+                {user.username}
+            </div>
+        );
+    }
+
     render() {
         if (!this.state.show || this.state.suggestions.length === 0) {
             return null;
@@ -201,45 +282,33 @@ export default class SearchAutocomplete extends React.Component {
         let suggestions = [];
 
         if (this.state.mode === 'channels') {
-            suggestions = this.state.suggestions.map((channel, index) => {
-                let className = 'search-autocomplete__item';
-                if (this.state.selection === index) {
-                    className += ' selected';
-                }
-
-                return (
+            const publicChannels = this.state.suggestions.filter((channel) => channel.type === Constants.OPEN_CHANNEL);
+            if (publicChannels.length > 0) {
+                suggestions.push(
                     <div
-                        key={channel.name}
-                        ref={channel.name}
-                        onClick={this.handleClick.bind(this, channel.name)}
-                        className={className}
+                        key='public-channel-divider'
+                        className='search-autocomplete__divider'
                     >
-                        {channel.name}
+                        {'Public ' + Utils.getChannelTerm(Constants.OPEN_CHANNEL) + 's'}
                     </div>
                 );
-            });
+                suggestions = suggestions.concat(publicChannels.map(this.renderChannelSuggestion));
+            }
+
+            const privateChannels = this.state.suggestions.filter((channel) => channel.type === Constants.PRIVATE_CHANNEL);
+            if (privateChannels.length > 0) {
+                suggestions.push(
+                    <div
+                        key='private-channel-divider'
+                        className='search-autocomplete__divider'
+                    >
+                        {'Private ' + Utils.getChannelTerm(Constants.PRIVATE_CHANNEL) + 's'}
+                    </div>
+                );
+                suggestions = suggestions.concat(privateChannels.map(this.renderChannelSuggestion));
+            }
         } else if (this.state.mode === 'users') {
-            suggestions = this.state.suggestions.map((user, index) => {
-                let className = 'search-autocomplete__item';
-                if (this.state.selection === index) {
-                    className += ' selected';
-                }
-
-                return (
-                    <div
-                        key={user.username}
-                        ref={user.username}
-                        onClick={this.handleClick.bind(this, user.username)}
-                        className={className}
-                    >
-                        <img
-                            className='profile-img rounded'
-                            src={'/api/v1/users/' + user.id + '/image?time=' + user.update_at}
-                        />
-                        {user.username}
-                    </div>
-                );
-            });
+            suggestions = this.state.suggestions.map(this.renderUserSuggestion);
         }
 
         return (
diff --git a/web/react/utils/utils.jsx b/web/react/utils/utils.jsx
index 9ce7ca1e8b..5a3000dffa 100644
--- a/web/react/utils/utils.jsx
+++ b/web/react/utils/utils.jsx
@@ -1129,3 +1129,12 @@ export function sortByDisplayName(a, b) {
     }
     return 0;
 }
+
+export function getChannelTerm(channelType) {
+    let channelTerm = 'Channel';
+    if (channelType === Constants.PRIVATE_CHANNEL) {
+        channelTerm = 'Group';
+    }
+
+    return channelTerm;
+}