How do I create a ListView with rounded corners in Android?

Question

Here is one way of doing it (Thanks to Android Documentation though!):

Add the following into a file (say customshape.xml) and then place it in (res/drawable/customshape.xml)

<?xml version="1.0" encoding="UTF-8"?> 
<shape xmlns:android="http://schemas.android.com/apk/res/android" 
     android:shape="rectangle"> 
     <gradient 
         android:startColor="#SomeGradientBeginColor"
         android:endColor="#SomeGradientEndColor" 
         android:angle="270"/> 

    <corners 
         android:bottomRightRadius="7dp" 
         android:bottomLeftRadius="7dp" 
         android:topLeftRadius="7dp" 
         android:topRightRadius="7dp"/> 
</shape> 

Once you are done with creating this file, just set the background in one of the following ways:

Through Code: listView.setBackgroundResource(R.drawable.customshape);

Through XML, just add the following attribute to the container (ex: LinearLayout or to any fields):

android:background="@drawable/customshape"

Hope someone finds it useful...

Although that did work, it took out the entire background colour as well. I was looking for a way to do just the border and just replace that XML layout code with this one and I was good to go!

<shape xmlns:android="http://schemas.android.com/apk/res/android">
    <stroke android:width="4dp" android:color="#FF00FF00" />
    <padding android:left="7dp" android:top="7dp"
            android:right="7dp" android:bottom="7dp" />
    <corners android:radius="4dp" />
</shape> 

@kris-van-bael

For those having issues with selection highlight for the top and bottom row where the background rectangle shows up on selection you need to set the selector for your listview to transparent color.

listView.setSelector(R.color.transparent);

In color.xml just add the following -

<color name="transparent">#00000000</color>

Update

The solution these days is to use a CardView with support for rounded corners built in.

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Original answer*

Another way I found was to mask out your layout by drawing an image over the top of the layout. It might help you. Check out Android XML rounded clipped corners