diff --git a/packages/palette/src/elements/Dropdown/Dropdown.story.tsx b/packages/palette/src/elements/Dropdown/Dropdown.story.tsx
index 21e70b288..43677da81 100644
--- a/packages/palette/src/elements/Dropdown/Dropdown.story.tsx
+++ b/packages/palette/src/elements/Dropdown/Dropdown.story.tsx
@@ -255,3 +255,37 @@ export const FilterExample = () => {
     </Dropdown>
   )
 }
+
+export const StickyExample = () => {
+  return (
+    <div style={{ height: "100vh", overflow: "scroll" }}>
+      <div style={{ height: "10vh" }} />
+      <div style={{ position: "sticky", top: 0, zIndex: 1 }}>
+        <Dropdown
+          dropdown={
+            <Box p={1}>
+              <Text variant="xs">Example content</Text>
+            </Box>
+          }
+          placement="bottom-start"
+          openDropdownByClick
+        >
+          {({ anchorRef, anchorProps }) => {
+            return (
+              <Pill
+                ref={anchorRef as any}
+                Icon={ChevronSmallDownIcon}
+                iconPosition="right"
+                {...anchorProps}
+              >
+                Example
+              </Pill>
+            )
+          }}
+        </Dropdown>
+      </div>
+
+      <div style={{ height: "200vh" }} />
+    </div>
+  )
+}
diff --git a/packages/palette/src/elements/Popover/Popover.story.tsx b/packages/palette/src/elements/Popover/Popover.story.tsx
index 6ee5a3038..38c1bf8dd 100644
--- a/packages/palette/src/elements/Popover/Popover.story.tsx
+++ b/packages/palette/src/elements/Popover/Popover.story.tsx
@@ -8,6 +8,7 @@ import { Flex } from "../Flex"
 import { Spacer } from "../Spacer"
 import { Text } from "../Text"
 import { Popover, PopoverProps } from "./Popover"
+import { Pill } from "../Pill"
 
 const CONTENT =
   "Lorem ipsum dolor sit amet consectetur adipisicing elit. Modi eius autem aliquid cumque, mollitia incidunt totam. Id ut quae hic in quisquam, cupiditate iure nobis, provident minus voluptatem tenetur consequatur."
@@ -143,6 +144,57 @@ Placement.story = {
   parameters: { chromatic: { disable: true } },
 }
 
+const ExamplePopover: React.FC = ({ children }) => {
+  return (
+    <Popover
+      popover={
+        <>
+          <Text variant="xs" fontWeight="bold">
+            New filters
+          </Text>
+          <Text variant="xs">
+            Choose artist and alert criteria to accurately narrow your results.
+          </Text>
+        </>
+      }
+      width={250}
+      variant="defaultDark"
+      pointer
+      visible
+      ignoreClickOutside
+      manageFocus={false}
+    >
+      {({ anchorRef }) => {
+        return (
+          <Box ref={anchorRef as any} m="auto">
+            {children}
+          </Box>
+        )
+      }}
+    </Popover>
+  )
+}
+
+export const InternalScrollContainer = () => {
+  return (
+    <Box overflow="auto" height="100%">
+      <Box height="300vh" border="1px dotted" borderColor="black60" p={2}>
+        <Spacer y={12} />
+
+        <Box textAlign="center">
+          <ExamplePopover>
+            <Pill>Popover should remain anchored to this element</Pill>
+          </ExamplePopover>
+        </Box>
+      </Box>
+    </Box>
+  )
+}
+
+InternalScrollContainer.story = {
+  parameters: { chromatic: { disable: true } },
+}
+
 export const ManageFocus = () => {
   return (
     <States<Partial<PopoverProps>>
diff --git a/packages/palette/src/utils/__tests__/usePosition.test.ts b/packages/palette/src/utils/__tests__/usePosition.test.ts
index 6e7a2b70d..baaaf2315 100644
--- a/packages/palette/src/utils/__tests__/usePosition.test.ts
+++ b/packages/palette/src/utils/__tests__/usePosition.test.ts
@@ -34,19 +34,12 @@ describe("placeTooltip", () => {
       style: {},
     } as HTMLElement
 
-    const boundaryRect = {
-      top: 0,
-      right: 500,
-      bottom: 600,
-      left: 0,
-    } as DOMRect
-
     placeTooltip({
       anchor,
       tooltip,
       position: "top",
       offset: 0,
-      boundaryRect,
+      scrollableParents: [],
     })
 
     expect(tooltip.style.display).toEqual("block")
diff --git a/packages/palette/src/utils/usePosition.ts b/packages/palette/src/utils/usePosition.ts
index f0c1df3a9..48f8ea32d 100644
--- a/packages/palette/src/utils/usePosition.ts
+++ b/packages/palette/src/utils/usePosition.ts
@@ -68,7 +68,19 @@ export const usePosition = ({
     const { current: tooltip } = tooltipRef
     const { current: anchor } = anchorRef
 
-    setState(placeTooltip({ anchor, tooltip, position, offset, flip, clamp }))
+    const scrollableParents = getScrollableParents(anchor)
+
+    setState(
+      placeTooltip({
+        anchor,
+        tooltip,
+        position,
+        offset,
+        flip,
+        clamp,
+        scrollableParents,
+      })
+    )
   }
 
   // Re-position when there's any change to the tooltip
@@ -90,25 +102,56 @@ export const usePosition = ({
     tooltip.style.top = "0"
     tooltip.style.left = "0"
 
-    const handleScroll = () => {
-      setState(placeTooltip({ anchor, tooltip, position, offset, flip, clamp }))
+    const handle = () => {
+      setState(
+        placeTooltip({
+          anchor,
+          tooltip,
+          position,
+          offset,
+          flip,
+          clamp,
+          scrollableParents,
+        })
+      )
     }
 
-    document.addEventListener("scroll", handleScroll, {
-      passive: true,
+    const scrollableParents = getScrollableParents(anchor)
+    const handlers = scrollableParents.map((scrollableParent) => {
+      return {
+        scrollableParent,
+        handlerScroll: () => {
+          setState(
+            placeTooltip({
+              anchor,
+              tooltip,
+              position,
+              offset,
+              flip,
+              clamp,
+              scrollableParents,
+            })
+          )
+        },
+      }
     })
 
-    const handleResize = () => {
-      setState(placeTooltip({ anchor, tooltip, position, offset, flip, clamp }))
-    }
+    handlers.forEach(({ scrollableParent, handlerScroll }) => {
+      scrollableParent.addEventListener("scroll", handlerScroll, {
+        passive: true,
+      })
+    })
 
-    window.addEventListener("resize", handleResize, { passive: true })
+    window.addEventListener("resize", handle, { passive: true })
 
-    setState(placeTooltip({ anchor, tooltip, position, offset, flip, clamp }))
+    // Initialize
+    handle()
 
     return () => {
-      document.removeEventListener("scroll", handleScroll)
-      window.removeEventListener("resize", handleResize)
+      window.removeEventListener("resize", handle)
+      handlers.forEach(({ scrollableParent, handlerScroll }) => {
+        scrollableParent.removeEventListener("scroll", handlerScroll)
+      })
     }
   }, [active, tooltipRef, anchorRef, position])
 
@@ -126,9 +169,9 @@ interface PlaceTooltip {
   tooltip: HTMLElement
   position: Position
   offset?: number
-  boundaryRect?: DOMRect
   flip?: boolean
   clamp?: boolean
+  scrollableParents: Array<HTMLElement | Document>
 }
 
 export const placeTooltip = ({
@@ -136,9 +179,9 @@ export const placeTooltip = ({
   tooltip,
   position,
   offset = 0,
-  boundaryRect = getDocumentBoundingRect(),
   flip = true,
   clamp = true,
+  scrollableParents,
 }: PlaceTooltip) => {
   const elementRect = anchor.getBoundingClientRect()
   const tooltipRect = tooltip.getBoundingClientRect()
@@ -148,11 +191,13 @@ export const placeTooltip = ({
   // Flip to avoid edges
   const isFlipped =
     flip &&
-    shouldFlip({
-      targetPosition,
-      position,
-      boundaryRect,
-      tooltipRect,
+    scrollableParents.some((scrollableParent) => {
+      return shouldFlip({
+        targetPosition,
+        position,
+        boundaryRect: getBoundingRect(scrollableParent),
+        tooltipRect,
+      })
     })
 
   if (isFlipped) {
@@ -162,20 +207,32 @@ export const placeTooltip = ({
 
   // Clamp position within boundary
   if (clamp) {
-    targetPosition.x = Math.max(boundaryRect.left, targetPosition.x)
-    targetPosition.x = Math.min(
-      boundaryRect.right - tooltipRect.width,
-      targetPosition.x
-    )
-    targetPosition.y = Math.max(boundaryRect.top, targetPosition.y)
-    targetPosition.y = Math.min(
-      boundaryRect.bottom - tooltipRect.height,
-      targetPosition.y
-    )
+    scrollableParents.forEach((scrollableParent) => {
+      const boundaryRect = getBoundingRect(scrollableParent)
+
+      targetPosition.x = Math.max(boundaryRect.left, targetPosition.x)
+      targetPosition.x = Math.min(
+        boundaryRect.right - tooltipRect.width,
+        targetPosition.x
+      )
+      targetPosition.y = Math.max(boundaryRect.top, targetPosition.y)
+      targetPosition.y = Math.min(
+        boundaryRect.bottom - tooltipRect.height,
+        targetPosition.y
+      )
+    })
   }
 
   // Should hide entirely if it scrolls out of view
-  const shouldHide = !isWithin(elementRect, boundaryRect)
+  let shouldHide = false
+  for (const scrollableParent of scrollableParents) {
+    const boundaryRect = getBoundingRect(scrollableParent)
+    if (!isWithin(elementRect, boundaryRect)) {
+      shouldHide = true
+      break
+    }
+  }
+
   tooltip.style.display = shouldHide ? "none" : "block"
 
   tooltip.style.transform = translateWithOffset(
@@ -323,20 +380,6 @@ const getOppositePosition = (position: Position) => {
   }
 }
 
-export const getDocumentBoundingRect = () => {
-  const width = document.body.clientWidth
-  const height = document.body.clientHeight
-
-  return {
-    top: 0,
-    left: 0,
-    right: width,
-    bottom: height,
-    width,
-    height,
-  } as DOMRect
-}
-
 interface ShouldFlip {
   targetPosition: TargetPosition
   position: Position
@@ -378,3 +421,60 @@ const isWithin = (elementRect: DOMRect, boundaryRect: DOMRect) => {
     boundaryRect.right > elementRect.left
   )
 }
+
+const getScrollableParents = (element: HTMLElement) => {
+  let parent = element.parentElement
+  const scrollableParents: Array<HTMLElement | Document> = []
+
+  while (parent) {
+    const computedStyle = getComputedStyle(parent)
+    if (
+      isOverflowSet(computedStyle.overflow) ||
+      isOverflowSet(computedStyle.overflowY) ||
+      isOverflowSet(computedStyle.overflowX)
+    ) {
+      scrollableParents.push(parent)
+    }
+    parent = parent.parentElement
+  }
+
+  scrollableParents.push(document)
+
+  return scrollableParents
+}
+
+const isOverflowSet = (overflowValue: string) => {
+  return (
+    overflowValue === "auto" ||
+    overflowValue === "hidden" ||
+    overflowValue === "scroll" ||
+    overflowValue === "overlay"
+  )
+}
+
+const isDocument = (element: HTMLElement | Document): element is Document => {
+  return element.ownerDocument === null
+}
+
+export const getDocumentBoundingRect = () => {
+  const width = document.body.clientWidth
+  const height = document.body.clientHeight
+
+  return {
+    top: 0,
+    left: 0,
+    right: width,
+    bottom: height,
+    width,
+    height,
+    x: 0,
+    y: 0,
+    toJSON: () => null,
+  }
+}
+
+export const getBoundingRect = (element: HTMLElement | Document): DOMRect => {
+  return isDocument(element)
+    ? getDocumentBoundingRect()
+    : element.getBoundingClientRect()
+}