diff --git a/packages/overlay/package.json b/packages/overlay/package.json
index d924bf8343..6e6aef42bd 100644
--- a/packages/overlay/package.json
+++ b/packages/overlay/package.json
@@ -102,7 +102,7 @@
         "lit-html"
     ],
     "dependencies": {
-        "@floating-ui/dom": "^1.0.4",
+        "@floating-ui/dom": "^1.1.0",
         "@spectrum-web-components/action-button": "^0.10.9",
         "@spectrum-web-components/base": "^0.7.3",
         "@spectrum-web-components/shared": "^0.15.4",
diff --git a/packages/overlay/src/ActiveOverlay.ts b/packages/overlay/src/ActiveOverlay.ts
index f420a94a56..bca813980b 100644
--- a/packages/overlay/src/ActiveOverlay.ts
+++ b/packages/overlay/src/ActiveOverlay.ts
@@ -288,7 +288,7 @@ export class ActiveOverlay extends SpectrumElement {
             await this.updateOverlayPosition();
             document.addEventListener(
                 'sp-update-overlays',
-                this.setOverlayPosition
+                this.resetOverlayPosition
             );
         }
         if (this.placement && this.placement !== 'none') {
@@ -400,7 +400,7 @@ export class ActiveOverlay extends SpectrumElement {
         }
     }
 
-    private initialHeight!: number;
+    private initialHeight: number | undefined;
     private isConstrained = false;
 
     public async placeOverlay(): Promise<void> {
@@ -426,6 +426,16 @@ export class ActiveOverlay extends SpectrumElement {
         this.setOverlayPosition();
     };
 
+    public resetOverlayPosition = (): void => {
+        this.style.setProperty('max-height', '');
+        this.style.setProperty('height', '');
+        this.initialHeight = undefined;
+        this.isConstrained = false;
+        // force paint
+        this.offsetHeight;
+        this.setOverlayPosition();
+    };
+
     public setOverlayPosition = async (): Promise<void> => {
         if (!this.placement || this.placement === 'none') {
             return;
@@ -651,7 +661,7 @@ export class ActiveOverlay extends SpectrumElement {
     override disconnectedCallback(): void {
         document.removeEventListener(
             'sp-update-overlays',
-            this.setOverlayPosition
+            this.resetOverlayPosition
         );
         super.disconnectedCallback();
     }
diff --git a/packages/overlay/src/active-overlay.css b/packages/overlay/src/active-overlay.css
index 247ee91ce3..fac7c0b2ed 100644
--- a/packages/overlay/src/active-overlay.css
+++ b/packages/overlay/src/active-overlay.css
@@ -41,6 +41,7 @@ governing permissions and limitations under the License.
     pointer-events: none;
     top: -9999em;
     left: -9999em;
+    max-height: 100%;
 }
 
 :host(:focus) {
diff --git a/packages/overlay/stories/overlay.stories.ts b/packages/overlay/stories/overlay.stories.ts
index 4d723f684d..9d0091ee91 100644
--- a/packages/overlay/stories/overlay.stories.ts
+++ b/packages/overlay/stories/overlay.stories.ts
@@ -40,6 +40,8 @@ import '@spectrum-web-components/radio/sp-radio-group.js';
 import '@spectrum-web-components/tooltip/sp-tooltip.js';
 import '@spectrum-web-components/theme/sp-theme.js';
 import '@spectrum-web-components/theme/src/themes.js';
+import '@spectrum-web-components/accordion/sp-accordion.js';
+import '@spectrum-web-components/accordion/sp-accordion-item.js';
 import '../../../projects/story-decorator/src/types.js';
 
 import './overlay-story-components.js';
@@ -1138,3 +1140,86 @@ export const updating = (): TemplateResult => {
 updating.swc_vrt = {
     skip: true,
 };
+
+export const accordion = (): TemplateResult => {
+    const handleToggle = (): void => {
+        Overlay.update();
+        console.log('hi');
+    };
+    return html`
+        <overlay-trigger type="modal" placement="right">
+            <sp-button variant="primary" slot="trigger">
+                Open overlay w/ accordion
+            </sp-button>
+            <div slot="click-content" style="max-height: 100%;display: flex;">
+                <sp-popover
+                    open
+                    dialog
+                    style="overflow-y: scroll;position: static;"
+                >
+                    <sp-accordion
+                        allow-multiple
+                        @sp-accordion-item-toggle=${handleToggle}
+                    >
+                        <sp-accordion-item label="Some things">
+                            <p>
+                                Thing
+                                <br />
+                                <br />
+                                <br />
+                                <br />
+                                <br />
+                                <br />
+                                <br />
+                                more things
+                            </p>
+                        </sp-accordion-item>
+                        <sp-accordion-item label="Other things">
+                            <p>
+                                Thing
+                                <br />
+                                <br />
+                                <br />
+                                <br />
+                                <br />
+                                <br />
+                                <br />
+                                more things
+                            </p>
+                        </sp-accordion-item>
+                        <sp-accordion-item label="More things">
+                            <p>
+                                Thing
+                                <br />
+                                <br />
+                                <br />
+                                <br />
+                                <br />
+                                <br />
+                                <br />
+                                more things
+                            </p>
+                        </sp-accordion-item>
+                        <sp-accordion-item label="Additional things">
+                            <p>
+                                Thing
+                                <br />
+                                <br />
+                                <br />
+                                <br />
+                                <br />
+                                <br />
+                                <br />
+                                more things
+                            </p>
+                        </sp-accordion-item>
+                    </sp-accordion>
+                </sp-popover>
+            </div>
+        </overlay-trigger>
+    `;
+};
+
+accordion.swc_vrt = {
+    skip: true,
+};
diff --git a/yarn.lock b/yarn.lock
index ac7e07fd78..188e36b586 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -1996,17 +1996,17 @@
   dependencies:
     "@types/chai" "^4.2.12"
 
-"@floating-ui/core@^1.0.3":
-  version "1.0.3"
-  resolved "https://registry.yarnpkg.com/@floating-ui/core/-/core-1.0.3.tgz#eab273554bdd883fa2cb48d5218fedda3afbbc1f"
-  integrity sha512-27FDAEVHrAEQI1UV+7FIjZrFK862gBoAG0USoPMU7RoBCmaTDt6bnKVW/J2uPnOPI6TWqiWGtS7RFN+tN/k+vQ==
+"@floating-ui/core@^1.0.5":
+  version "1.1.0"
+  resolved "https://registry.yarnpkg.com/@floating-ui/core/-/core-1.1.0.tgz#0a1dee4bbce87ff71602625d33f711cafd8afc08"
+  integrity sha512-zbsLwtnHo84w1Kc8rScAo5GMk1GdecSlrflIbfnEBJwvTSj1SL6kkOYV+nHraMCPEy+RNZZUaZyL8JosDGCtGQ==
 
-"@floating-ui/dom@^1.0.4":
-  version "1.0.8"
-  resolved "https://registry.yarnpkg.com/@floating-ui/dom/-/dom-1.0.8.tgz#207c6fdaf21a73166c877e99cc49c69f2e816c2d"
-  integrity sha512-uUm1xYQ0xdmFLhtetKgjK9AtF4INwDVwuJZvpK19ENHg1wYn7T0w9phYyCL5+HEpgJtX4ZYG6HJkDbtd2yP6cg==
+"@floating-ui/dom@^1.1.0":
+  version "1.1.0"
+  resolved "https://registry.yarnpkg.com/@floating-ui/dom/-/dom-1.1.0.tgz#29fea1344fdef15b6ba270a733d20b7134fee5c2"
+  integrity sha512-TSogMPVxbRe77QCj1dt8NmRiJasPvuc+eT5jnJ6YpLqgOD2zXc5UA3S1qwybN+GVCDNdKfpKy1oj8RpzLJvh6A==
   dependencies:
-    "@floating-ui/core" "^1.0.3"
+    "@floating-ui/core" "^1.0.5"
 
 "@formatjs/ecma402-abstract@1.9.3":
   version "1.9.3"