diff --git a/internal_packages/account-sidebar/lib/account-sidebar.cjsx b/internal_packages/account-sidebar/lib/account-sidebar.cjsx
index 5e86502a6..13425d5bc 100644
--- a/internal_packages/account-sidebar/lib/account-sidebar.cjsx
+++ b/internal_packages/account-sidebar/lib/account-sidebar.cjsx
@@ -1,10 +1,13 @@
 React = require 'react'
-{Actions, MailViewFilter} = require("nylas-exports")
+{Actions, MailViewFilter, AccountStore} = require("nylas-exports")
 {ScrollRegion} = require("nylas-component-kit")
 SidebarDividerItem = require("./account-sidebar-divider-item")
 SidebarSheetItem = require("./account-sidebar-sheet-item")
 AccountSidebarStore = require ("./account-sidebar-store")
 AccountSidebarMailViewItem = require("./account-sidebar-mail-view-item")
+crypto = require 'crypto'
+{RetinaImg} = require 'nylas-component-kit'
+classNames = require 'classnames'
 
 class AccountSidebar extends React.Component
   @displayName: 'AccountSidebar'
@@ -16,10 +19,12 @@ class AccountSidebar extends React.Component
 
   constructor: (@props) ->
     @state = @_getStateFromStores()
+    @state.showing = false
 
   componentDidMount: =>
     @unsubscribers = []
     @unsubscribers.push AccountSidebarStore.listen @_onStoreChange
+    @unsubscribers.push AccountStore.listen @_onStoreChange
 
   # It's important that every React class explicitly stops listening to
   # atom events before it unmounts. Thank you event-kit
@@ -29,11 +34,105 @@ class AccountSidebar extends React.Component
 
   render: =>
     <ScrollRegion style={flex:1} id="account-sidebar">
+      {@_accountSwitcher()}
       <div className="account-sidebar-sections">
         {@_sections()}
       </div>
     </ScrollRegion>
 
+  _accountSwitcher: =>
+    return undefined if @state.accounts.length < 1
+
+    <div id="account-switcher" tabIndex={-1} onBlur={@_onBlur} ref="button">
+      {@_renderAccount @state.account, true}
+      {@_renderDropdown()}
+    </div>
+
+  _renderAccount: (account, isPrimaryItem) =>
+    classes = classNames
+      "account": true
+      "item": true
+      "dropdown-item-padding": not isPrimaryItem
+      "active": account is @state.account
+      "bg-color-hover": not isPrimaryItem
+      "primary-item": isPrimaryItem
+      "account-option": not isPrimaryItem
+
+    email = account.emailAddress.trim().toLowerCase()
+
+    if isPrimaryItem
+      dropdownClasses = classNames
+        "account-switcher-dropdown": true,
+        "account-switcher-dropdown-hidden": @state.showing
+
+      dropdownArrow = <div style={float: 'right', marginTop: -2}>
+        <RetinaImg className={dropdownClasses} name="account-switcher-dropdown.png"
+        mode={RetinaImg.Mode.ContentPreserve} />
+      </div>
+
+      onClick = @_toggleDropdown
+
+    else
+      onClick = =>
+        @_onSwitchAccount account
+
+    <div className={classes}
+         onClick={onClick}
+         key={email}>
+      <div style={float: 'left'}>
+        <div className="gravatar" style={backgroundImage: @_gravatarUrl(email)}></div>
+        <RetinaImg name={"ic-settings-account-#{account.provider}@2x.png"}
+                   style={width: 28, height: 28, marginTop: -10}
+                   fallback="ic-settings-account-imap.png"
+                   mode={RetinaImg.Mode.ContentPreserve} />
+      </div>
+      {dropdownArrow}
+      <div className="name" style={lineHeight: "110%"}>
+        {email}
+      </div>
+      <div style={clear: "both"}>
+      </div>
+    </div>
+
+  _renderNewAccountOption: =>
+    <div className="account item dropdown-item-padding bg-color-hover new-account-option"
+         onClick={@_onAddAccount}
+         tabIndex={999}>
+      <div style={float: 'left'}>
+        <RetinaImg name="icon-accounts-addnew.png"
+                   fallback="ic-settings-account-imap.png"
+                   mode={RetinaImg.Mode.ContentPreserve}
+                   style={width: 28, height: 28, marginTop: -10} />
+      </div>
+      <div className="name" style={lineHeight: "110%", textTransform: 'none'}>
+        Add account&hellip;
+      </div>
+      <div style={clear: "both"}>
+      </div>
+    </div>
+
+  _renderDropdown: =>
+    display = if @state.showing then "block" else "none"
+    # display = "block"
+
+    accounts = @state.accounts.map (a) =>
+      @_renderAccount(a)
+
+    <div style={display: display}
+         ref="account-switcher-dropdown"
+         className="dropdown dropdown-positioning dropdown-colors">
+      {accounts}
+      {@_renderNewAccountOption()}
+    </div>
+
+  _toggleDropdown: =>
+    @setState showing: !@state.showing
+
+  _gravatarUrl: (email) =>
+    hash = crypto.createHash('md5').update(email, 'utf8').digest('hex')
+
+    "url(http://www.gravatar.com/avatar/#{hash}?d=blank&s=56)"
+
   _sections: =>
     return @state.sections.map (section) =>
       <section key={section.label}>
@@ -64,12 +163,25 @@ class AccountSidebar extends React.Component
   _onStoreChange: =>
     @setState @_getStateFromStores()
 
+  _onBlur: (e) =>
+    target = e.nativeEvent.relatedTarget
+    if target? and React.findDOMNode(@refs.button).contains(target)
+      return
+    @setState(showing: false)
+
   _onSwitchAccount: (account) =>
     Actions.selectAccountId(account.id)
+    @setState(showing: false)
+
+  _onAddAccount: =>
+    require('remote').getGlobal('application').windowManager.newOnboardingWindow()
+    @setState showing: false
 
   _getStateFromStores: =>
     sections: AccountSidebarStore.sections()
     selected: AccountSidebarStore.selected()
+    accounts: AccountStore.items()
+    account:  AccountStore.current()
 
 
 module.exports = AccountSidebar
diff --git a/internal_packages/account-sidebar/lib/account-switcher.cjsx b/internal_packages/account-sidebar/lib/account-switcher.cjsx
deleted file mode 100644
index e8bcfde40..000000000
--- a/internal_packages/account-sidebar/lib/account-switcher.cjsx
+++ /dev/null
@@ -1,65 +0,0 @@
-React = require 'react'
-{Actions, AccountStore} = require("nylas-exports")
-{RetinaImg} = require('nylas-component-kit')
-crypto = require 'crypto'
-classNames = require 'classnames'
-
-class AccountSwitcher extends React.Component
-  @displayName: 'AccountSwitcher'
-
-  @containerRequired: false
-  @containerStyles:
-    minWidth: 64
-    maxWidth: 64
-
-  constructor: (@props) ->
-    @state = @_getStateFromStores()
-
-  componentDidMount: =>
-    @unsubscribers = []
-    @unsubscribers.push AccountStore.listen @_onStoreChange
-
-  # It's important that every React class explicitly stops listening to
-  # atom events before it unmounts. Thank you event-kit
-  # This can be fixed via a Reflux mixin
-  componentWillUnmount: =>
-    unsubscribe() for unsubscribe in @unsubscribers
-
-  render: =>
-    if @state.accounts.length is 0
-      return <span></span>
-
-    <div id="account-switcher">
-      {@_accounts()}
-    </div>
-
-  _accounts: =>
-    return @state.accounts.map (account) =>
-      hash = account.emailAddress.trim().toLowerCase()
-      hash = crypto.createHash('md5').update(hash, 'utf8').digest('hex')
-
-      classnames = classNames
-        'account': true
-        'active': account is @state.account
-
-      gravatarUrl = "http://www.gravatar.com/avatar/#{hash}?d=blank&s=44"
-
-      <div title={account.emailAddress} className={classnames} key={account.id} onClick={ => @_onSwitchAccount(account) }>
-        <div style={backgroundImage: "url(#{gravatarUrl})"} className="gravatar"></div>
-        <RetinaImg name={"ic-settings-account-#{account.provider}.png"}
-                   style={width: 44, height: 44}
-                   fallback="ic-settings-account-imap.png"
-                   mode={RetinaImg.Mode.ContentPreserve} />
-      </div>
-
-  _onStoreChange: =>
-    @setState @_getStateFromStores()
-
-  _onSwitchAccount: (account) =>
-    Actions.selectAccountId(account.id)
-
-  _getStateFromStores: =>
-    accounts: AccountStore.items()
-    account: AccountStore.current()
-
-module.exports = AccountSwitcher
diff --git a/internal_packages/account-sidebar/lib/main.cjsx b/internal_packages/account-sidebar/lib/main.cjsx
index 0d57b5528..48bc24ef7 100644
--- a/internal_packages/account-sidebar/lib/main.cjsx
+++ b/internal_packages/account-sidebar/lib/main.cjsx
@@ -1,15 +1,11 @@
 React = require "react"
 AccountSidebar = require "./account-sidebar"
-AccountSwitcher = require "./account-switcher"
 {ComponentRegistry, WorkspaceStore} = require "nylas-exports"
 
 module.exports =
   item: null # The DOM item the main React component renders into
 
   activate: (@state) ->
-    ComponentRegistry.register AccountSwitcher,
-      location: WorkspaceStore.Location.RootSwitcher
-
     ComponentRegistry.register AccountSidebar,
       location: WorkspaceStore.Location.RootSidebar
 
diff --git a/internal_packages/account-sidebar/spec/account-sidebar-spec.cjsx b/internal_packages/account-sidebar/spec/account-sidebar-spec.cjsx
new file mode 100644
index 000000000..5ae935903
--- /dev/null
+++ b/internal_packages/account-sidebar/spec/account-sidebar-spec.cjsx
@@ -0,0 +1,60 @@
+React = require 'react/addons'
+TestUtils = React.addons.TestUtils
+AccountSidebar = require './../lib/account-sidebar'
+{AccountStore} = require 'nylas-exports'
+
+describe "AccountSidebar", ->
+  describe "account switcher", ->
+    sidebar = null
+
+    beforeEach ->
+      spyOn(AccountStore, "items").andCallFake ->
+        [
+          AccountStore.current(),
+          {
+            emailAddress: "dillon@nylas.com",
+            provider: "exchange"
+          }
+        ]
+
+      sidebar = TestUtils.renderIntoDocument(
+        <AccountSidebar />
+      )
+
+    it "doesn't render the dropdown if nothing clicked", ->
+      dropdown = TestUtils.findRenderedDOMComponentWithClass sidebar, "dropdown"
+      dropdownNode = React.findDOMNode dropdown, "account-switcher-dropdown"
+
+      expect(dropdownNode.style.display).toBe "none"
+
+    it "renders the dropdown if clicking the arrow btn", ->
+      toggler = TestUtils.findRenderedDOMComponentWithClass sidebar, 'primary-item'
+      TestUtils.Simulate.click toggler
+      dropdown = TestUtils.findRenderedDOMComponentWithClass sidebar, "dropdown"
+      dropdownNode = React.findDOMNode dropdown, "account-switcher-dropdown"
+
+      expect(dropdownNode.style.display).toBe "block"
+
+    it "removes the dropdown when clicking elsewhere", ->
+      toggler = TestUtils.findRenderedDOMComponentWithClass sidebar, 'primary-item'
+      TestUtils.Simulate.blur toggler
+      dropdown = TestUtils.findRenderedDOMComponentWithClass sidebar, "dropdown"
+      dropdownNode = React.findDOMNode dropdown, "account-switcher-dropdown"
+
+      expect(dropdownNode.style.display).toBe "none"
+
+    it "shows all the accounts in the dropdown", ->
+      toggler = TestUtils.findRenderedDOMComponentWithClass sidebar, 'primary-item'
+      TestUtils.Simulate.click toggler
+      dropdown = TestUtils.findRenderedDOMComponentWithClass sidebar, "dropdown"
+      accounts = TestUtils.scryRenderedDOMComponentsWithClass dropdown, "account-option"
+
+      expect(accounts.length).toBe 2
+
+    it "shows the 'Add Account' button too", ->
+      toggler = TestUtils.findRenderedDOMComponentWithClass sidebar, 'primary-item'
+      TestUtils.Simulate.click toggler
+      dropdown = TestUtils.findRenderedDOMComponentWithClass sidebar, "dropdown"
+      accounts = TestUtils.scryRenderedDOMComponentsWithClass dropdown, "new-account-option"
+
+      expect(accounts.length).toBe 1
diff --git a/internal_packages/account-sidebar/stylesheets/account-sidebar.less b/internal_packages/account-sidebar/stylesheets/account-sidebar.less
index 1598e346c..8f0b03abf 100644
--- a/internal_packages/account-sidebar/stylesheets/account-sidebar.less
+++ b/internal_packages/account-sidebar/stylesheets/account-sidebar.less
@@ -1,45 +1,7 @@
 @import "ui-variables";
 @import "ui-mixins";
 
-#account-switcher {
-  background-color: #212831;
-  flex: 1;
-  .account {
-    position: relative;
-    margin:15px 10px;
-    margin-bottom: 0;
-    display:block;
-    border-radius: 8px;
-    opacity: 0.7;
-    img {
-      -webkit-filter: ~"saturate(0%)";
-    }
-    .gravatar {
-      width: 44px;
-      height: 44px;
-      position: absolute;
-      z-index: 2;
-      border-radius: 7px;
-    }
-  }
-  .account.active {
-    opacity: 1.0;
-    img {
-      -webkit-filter: ~"saturate(100%)";
-    }
-  }
-  .account.active::after {
-    box-shadow: inset 0 0 1px 2px @source-list-active-color;
-    border-radius: 7px;
-    width:100%;
-    height:100%;
-    content: ' ';
-    left: 0;
-    position:absolute;
-    z-index: 3;
-  }
-}
-
+#account-switcher,
 #account-sidebar {
   order: 1;
   height: 100%;
@@ -79,7 +41,6 @@
       float: left;
     }
     .name {
-      text-transform: capitalize;
       padding-left: @padding-small-horizontal;
       position:relative;
       top:1px;
@@ -110,3 +71,85 @@
     padding-bottom: 0.25em;
   }
 }
+
+#account-sidebar {
+  .name {
+    text-transform: capitalize;
+  }
+}
+
+#account-switcher {
+  padding-top: @padding-large-vertical;
+  padding-bottom: @padding-base-vertical;
+  border-bottom: 1px solid @border-color-divider;
+
+  .account {
+    position: relative;
+    margin-bottom: 0;
+    display:block;
+    .gravatar {
+      background-size: 28px 28px;
+      width: 28px;
+      height: 28px;
+      position: absolute;
+      z-index: 2;
+      border-radius: 7px;
+      top: -2px;
+    }
+  }
+  .name {
+    text-transform: lowercase;
+    overflow: hidden;
+    text-overflow: ellipsis;
+    white-space: nowrap;
+  }
+  .account-switcher-dropdown {
+    margin-top: -7px;
+    transform: scale(1, -1);
+
+    &.account-switcher-dropdown-hidden {
+      transform: scale(1, 1);
+    }
+  }
+
+  .dropdown-positioning {
+    display: block;
+    position: absolute;
+    top: 45px;
+    width: 100%;
+    z-index: 999;
+
+    .account .gravatar {
+      top: 6px;
+    }
+  }
+
+  .dropdown-colors {
+    background: lighten(@source-list-bg, 5%);
+    border: 1px solid @border-color-divider;
+    border-radius: @border-radius-base;
+    box-shadow: @standard-shadow;
+  }
+
+  .dropdown-item-padding {
+    padding: 6px 5px 0 14px;
+
+    &:first-child {
+      padding-top: 8px;
+      border-top-left-radius: @list-border-radius;
+      border-top-right-radius: @list-border-radius;
+    }
+    &:last-child {
+      padding-bottom: 2px;
+      border-bottom-left-radius: @list-border-radius;
+      border-bottom-right-radius: @list-border-radius;
+    }
+  }
+
+  .bg-color-hover {
+
+    &:hover {
+      background: @list-hover-bg;
+    }
+  }
+}
diff --git a/internal_packages/settings/lib/main.cjsx b/internal_packages/settings/lib/main.cjsx
index 3b8fe4e26..b6937cf5b 100644
--- a/internal_packages/settings/lib/main.cjsx
+++ b/internal_packages/settings/lib/main.cjsx
@@ -8,7 +8,7 @@ module.exports =
 
   activate: (@state={}) ->
     WorkspaceStore.defineSheet 'Settings', {root: true, supportedModes: ['list'], name: 'Plugins'},
-      list: ['RootSwitcher', 'RootSidebar', 'SettingsSidebar', 'Settings']
+      list: ['RootSidebar', 'SettingsSidebar', 'Settings']
 
     ComponentRegistry.register SettingsTabsView,
       location: WorkspaceStore.Location.SettingsSidebar
diff --git a/internal_packages/thread-list/lib/main.cjsx b/internal_packages/thread-list/lib/main.cjsx
index 2d6e1cd89..d86953a4c 100644
--- a/internal_packages/thread-list/lib/main.cjsx
+++ b/internal_packages/thread-list/lib/main.cjsx
@@ -14,7 +14,7 @@ DraftList = require './draft-list'
 module.exports =
   activate: (@state={}) ->
     WorkspaceStore.defineSheet 'Drafts', {root: true, name: 'Drafts', sidebarComponent: DraftListSidebarItem},
-      list: ['RootSwitcher', 'RootSidebar', 'DraftList']
+      list: ['RootSidebar', 'DraftList']
 
     ComponentRegistry.register ThreadList,
       location: WorkspaceStore.Location.ThreadList
diff --git a/src/flux/stores/workspace-store.coffee b/src/flux/stores/workspace-store.coffee
index 3c61b8c32..f7ced57c7 100644
--- a/src/flux/stores/workspace-store.coffee
+++ b/src/flux/stores/workspace-store.coffee
@@ -46,8 +46,8 @@ class WorkspaceStore extends NylasStore
     if atom.isMainWindow()
       @defineSheet 'Global'
       @defineSheet 'Threads', {root: true},
-        list: ['RootSwitcher', 'RootSidebar', 'ThreadList']
-        split: ['RootSwitcher', 'RootSidebar', 'ThreadList', 'MessageList', 'MessageListSidebar']
+        list: ['RootSidebar', 'ThreadList']
+        split: ['RootSidebar', 'ThreadList', 'MessageList', 'MessageListSidebar']
       @defineSheet 'Thread', {},
         list: ['MessageList', 'MessageListSidebar']
     else
diff --git a/static/images/sidebar/account-switcher-dropdown@2x.png b/static/images/sidebar/account-switcher-dropdown@2x.png
new file mode 100644
index 000000000..3424240a3
Binary files /dev/null and b/static/images/sidebar/account-switcher-dropdown@2x.png differ
diff --git a/static/images/source-list/icon-accounts-addnew@2x.png b/static/images/source-list/icon-accounts-addnew@2x.png
new file mode 100644
index 000000000..e2afaa2cc
Binary files /dev/null and b/static/images/source-list/icon-accounts-addnew@2x.png differ