diff --git a/app/assets/javascripts/search_autocomplete.js.coffee b/app/assets/javascripts/search_autocomplete.js.coffee
index 6a7b4ad1db7..2122e80f57a 100644
--- a/app/assets/javascripts/search_autocomplete.js.coffee
+++ b/app/assets/javascripts/search_autocomplete.js.coffee
@@ -20,8 +20,7 @@ class @SearchAutocomplete
     @dropdown = @wrap.find('.dropdown')
     @dropdownContent = @dropdown.find('.dropdown-content')
 
-    @locationBadgeEl = @getElement('.search-location-badge')
-    @locationText = @getElement('.location-text')
+    @locationBadgeEl = @getElement('.location-badge')
     @scopeInputEl = @getElement('#scope')
     @searchInput = @getElement('.search-input')
     @projectInputEl = @getElement('#search_project_id')
@@ -133,7 +132,7 @@ class @SearchAutocomplete
       scope: @scopeInputEl.val()
 
       # Location badge
-      _location: @locationText.text()
+      _location: @locationBadgeEl.text()
     }
 
   bindEvents: ->
@@ -143,12 +142,14 @@ class @SearchAutocomplete
     @searchInput.on 'click', @onSearchInputClick
     @searchInput.on 'focus', @onSearchInputFocus
     @clearInput.on 'click', @onClearInputClick
+    @locationBadgeEl.on 'click', =>
+      @searchInput.focus()
 
   onDocumentClick: (e) =>
     # If clicking outside the search box
     # And search input is not focused
     # And we are not clicking inside a suggestion
-    if not $.contains(@dropdown[0], e.target) and @isFocused and not $(e.target).parents('ul').length
+    if not $.contains(@dropdown[0], e.target) and @isFocused and not $(e.target).closest('.search-form').length
       @onSearchInputBlur()
 
   enableAutocomplete: ->
@@ -221,10 +222,8 @@ class @SearchAutocomplete
     category = if item.category? then "#{item.category}: " else ''
     value = if item.value? then item.value else ''
 
-    html = "<span class='location-badge'>
-              <i class='location-text'>#{category}#{value}</i>
-            </span>"
-    @locationBadgeEl.html(html)
+    badgeText = "#{category}#{value}"
+    @locationBadgeEl.text(badgeText).show()
     @wrap.addClass('has-location-badge')
 
   restoreOriginalState: ->
@@ -233,9 +232,8 @@ class @SearchAutocomplete
     for input in inputs
       @getElement("##{input}").val(@originalState[input])
 
-
     if @originalState._location is ''
-      @locationBadgeEl.empty()
+      @locationBadgeEl.hide()
     else
       @addLocationBadge(
         value: @originalState._location
@@ -244,7 +242,7 @@ class @SearchAutocomplete
     @dropdown.removeClass 'open'
 
   badgePresent: ->
-    @locationBadgeEl.children().length
+    @locationBadgeEl.length
 
   resetSearchState: ->
     inputs = Object.keys @originalState
@@ -257,7 +255,7 @@ class @SearchAutocomplete
       @getElement("##{input}").val('')
 
   removeLocationBadge: ->
-    @locationBadgeEl.empty()
+    @locationBadgeEl.hide()
 
     # Reset state
     @resetSearchState()
diff --git a/app/assets/stylesheets/pages/search.scss b/app/assets/stylesheets/pages/search.scss
index 2bff70c8c64..037ad520545 100644
--- a/app/assets/stylesheets/pages/search.scss
+++ b/app/assets/stylesheets/pages/search.scss
@@ -28,6 +28,7 @@
   }
 
   .search-input {
+    padding-right: 20px;
     border: none;
     font-size: 14px;
     outline: none;
@@ -47,6 +48,7 @@
     display: inline-block;
     background-color: $location-badge-bg;
     vertical-align: top;
+    cursor: default;
   }
 
   .search-input-container {
@@ -55,7 +57,7 @@
     position: relative;
   }
 
-  .search-location-badge, .search-input-wrap {
+  .search-input-wrap {
     // Fallback if flexbox is not supported
     display: inline-block;
   }
diff --git a/app/views/layouts/_search.html.haml b/app/views/layouts/_search.html.haml
index 6b208c3d0bb..b49207fc315 100644
--- a/app/views/layouts/_search.html.haml
+++ b/app/views/layouts/_search.html.haml
@@ -6,11 +6,8 @@
 .search.search-form{class: "#{'has-location-badge' if label.present?}"}
   = form_tag search_path, method: :get, class: 'navbar-form' do |f|
     .search-input-container
-      .search-location-badge
-        - if label.present?
-          %span.location-badge
-            %i.location-text
-              = label
+      - if label.present?
+        .location-badge= label
       .search-input-wrap
         .dropdown{ data: {url: search_autocomplete_path } }
           = search_field_tag "search", nil, placeholder: 'Search', class: "search-input dropdown-menu-toggle", spellcheck: false, tabindex: "1", autocomplete: 'off',  data: { toggle: 'dropdown' }