diff --git a/runtime/optwin.vim b/runtime/optwin.vim
index 41f9fc0373..ce4590f01b 100644
--- a/runtime/optwin.vim
+++ b/runtime/optwin.vim
@@ -1,7 +1,7 @@
 " These commands create the option window.
 "
 " Maintainer:	The Vim Project <https://github.com/vim/vim>
-" Last Change:	2025 Mar 27
+" Last Change:	2025 Mar 28
 " Former Maintainer:	Bram Moolenaar <Bram@vim.org>
 
 " If there already is an option window, jump to that one.
@@ -736,7 +736,7 @@ if has("insert_expand")
   call <SID>OptionG("ph", &ph)
   call <SID>AddOption("pumwidth", gettext("minimum width of the popup menu"))
   call <SID>OptionG("pw", &pw)
-  call <SID>AddOption("pumaxmwidth", gettext("maximum width of the popup menu"))
+  call <SID>AddOption("pummaxwidth", gettext("maximum width of the popup menu"))
   call <SID>OptionG("pmw", &pmw)
   call <SID>AddOption("completefunc", gettext("user defined function for Insert mode completion"))
   call append("$", "\t" .. s:local_to_buffer)
diff --git a/src/nvim/popupmenu.c b/src/nvim/popupmenu.c
index 75f1c93ed7..4ce4f9632f 100644
--- a/src/nvim/popupmenu.c
+++ b/src/nvim/popupmenu.c
@@ -391,6 +391,8 @@ void pum_display(pumitem_T *array, int size, int selected, bool array_changed, i
           if (p_pmw > 0 && pum_width > p_pmw) {
             pum_width = (int)p_pmw;
           }
+        } else if (p_pmw > 0 && pum_width > p_pmw) {
+          pum_width = (int)p_pmw;
         }
       }
     } else if (max_col - min_col < def_width) {
diff --git a/test/functional/ui/popupmenu_spec.lua b/test/functional/ui/popupmenu_spec.lua
index 7469269a1b..d82c24bb83 100644
--- a/test/functional/ui/popupmenu_spec.lua
+++ b/test/functional/ui/popupmenu_spec.lua
@@ -5621,6 +5621,42 @@ describe('builtin popupmenu', function()
         ]])
       end
       feed('<Esc>3Gdd"zp')
+
+      screen:try_resize(32, 10)
+      feed('GA<C-X><C-N>')
+      if multigrid then
+        screen:expect({
+          grid = [[
+        ## grid 1
+          [2:--------------------------------]|*9
+          [3:--------------------------------]|
+        ## grid 2
+          123456789_123456789_123456789_a |
+          123456789_123456789_123456789_b |
+                      123456789_123456789_|
+          123456789_a^                     |
+          {1:~                               }|*5
+        ## grid 3
+          {2:-- }{5:match 1 of 2}                 |
+        ## grid 4
+          {s: 12345...}|
+          {n: 12345...}|
+        ]],
+          float_pos = { [4] = { -1, 'NW', 2, 4, 11, false, 100 } },
+        })
+      else
+        screen:expect([[
+          123456789_123456789_123456789_a |
+          123456789_123456789_123456789_b |
+                      123456789_123456789_|
+          123456789_a^                     |
+          {1:~          }{s: 12345...}{1:            }|
+          {1:~          }{n: 12345...}{1:            }|
+          {1:~                               }|*3
+          {2:-- }{5:match 1 of 2}                 |
+        ]])
+      end
+      feed('<Esc>3Gdd"zp')
     end)
 
     -- oldtest: Test_pum_maxwidth_multibyte()
diff --git a/test/old/testdir/test_popup.vim b/test/old/testdir/test_popup.vim
index 631a81d5cc..94e437ee93 100644
--- a/test/old/testdir/test_popup.vim
+++ b/test/old/testdir/test_popup.vim
@@ -2023,6 +2023,11 @@ func Test_pum_maxwidth()
   call VerifyScreenDump(buf, 'Test_pum_maxwidth_04', {'rows': 8})
   call term_sendkeys(buf, "\<Esc>3Gdd\"zp")
 
+  call term_sendkeys(buf, ":set lines=10 columns=32\<CR>")
+  call term_sendkeys(buf, "GA\<C-N>")
+  call VerifyScreenDump(buf, 'Test_pum_maxwidth_09', {'rows': 10, 'cols': 32})
+  call term_sendkeys(buf, "\<Esc>3Gdd\"zp")
+
   call StopVimInTerminal(buf)
 endfunc