diff --git a/addons/web_editor/static/src/js/editor/odoo-editor/src/OdooEditor.js b/addons/web_editor/static/src/js/editor/odoo-editor/src/OdooEditor.js
index 8e299ab276c..ee68cd8acbb 100644
--- a/addons/web_editor/static/src/js/editor/odoo-editor/src/OdooEditor.js
+++ b/addons/web_editor/static/src/js/editor/odoo-editor/src/OdooEditor.js
@@ -216,6 +216,7 @@ export class OdooEditor extends EventTarget {
                 getContextFromParentRect: () => {
                     return { top: 0, left: 0 };
                 },
+                getScrollContainerRect: () => document.body.getBoundingClientRect(),
                 toSanitize: true,
                 isRootEditable: true,
                 placeholder: false,
@@ -3070,7 +3071,8 @@ export class OdooEditor extends EventTarget {
     _positionToolbar() {
         const OFFSET = 10;
         let isBottom = false;
-        this.toolbar.classList.toggle('toolbar-bottom', false);
+        // Toolbar display must not be none in order to calculate width and height.
+        this.toolbar.classList.toggle('d-none', false);
         this.toolbar.style.maxWidth = window.innerWidth - OFFSET * 2 + 'px';
         const sel = this.document.getSelection();
         const range = sel.getRangeAt(0);
@@ -3095,6 +3097,7 @@ export class OdooEditor extends EventTarget {
         const toolbarHeight = this.toolbar.offsetHeight;
         const editorRect = this.editable.getBoundingClientRect();
         const parentContextRect = this.options.getContextFromParentRect();
+        const scrollContainerRect = this.options.getScrollContainerRect();
         const editorTopPos = Math.max(0, editorRect.top);
         const scrollX = document.defaultView.scrollX;
         const scrollY = document.defaultView.scrollY;
@@ -3111,14 +3114,12 @@ export class OdooEditor extends EventTarget {
 
         // Get top position.
         let top = correctedSelectionRect.top - toolbarHeight - OFFSET;
-        // Ensure the toolbar doesn't overflow the editor on the top.
-        if (top < editorTopPos) {
+        // Ensure the toolbar doesn't overflow the editor or scroll container on the top.
+        if (top < editorTopPos || top + parentContextRect.top - scrollContainerRect.top < OFFSET / 2) {
             // Position the toolbar below the selection.
             top = correctedSelectionRect.bottom + OFFSET;
             isBottom = true;
         }
-        // Ensure the toolbar doesn't overflow the editor on the bottom.
-        top = Math.min(window.innerHeight - OFFSET - toolbarHeight, top);
         // Offset top to compensate for parent context position (eg. Iframe).
         top += parentContextRect.top;
         this.toolbar.style.top = scrollY + top + 'px';
@@ -3130,12 +3131,18 @@ export class OdooEditor extends EventTarget {
         // Ensure the arrow doesn't overflow the toolbar on the right.
         arrowLeftPos = Math.min(toolbarWidth - OFFSET - 20, arrowLeftPos);
         this.toolbar.style.setProperty('--arrow-left-pos', arrowLeftPos + 'px');
-        if (isBottom) {
-            this.toolbar.classList.toggle('toolbar-bottom', true);
-            this.toolbar.style.setProperty('--arrow-top-pos', -17 + 'px');
-        } else {
-            this.toolbar.style.setProperty('--arrow-top-pos', toolbarHeight - 3 + 'px');
-        }
+        const arrowTopPos = isBottom ? -17 : toolbarHeight - 3;
+        this.toolbar.classList.toggle('toolbar-bottom', isBottom);
+        this.toolbar.style.setProperty('--arrow-top-pos', arrowTopPos + 'px');
+
+        // Calculate toolbar dimensions including the arrow.
+        const toolbarTop = Math.min(top , top + arrowTopPos);
+        const toolbarBottom = Math.max(top + toolbarHeight, top + arrowTopPos + 20);
+
+        // Hide toolbar if it overflows the scroll container.
+        const distToScrollContainer = Math.min(toolbarTop - scrollContainerRect.top,
+                                                scrollContainerRect.bottom - toolbarBottom);
+        this.toolbar.classList.toggle('d-none', distToScrollContainer < OFFSET / 2);
     }
 
     // PASTING / DROPPING
diff --git a/addons/web_editor/static/src/js/wysiwyg/wysiwyg.js b/addons/web_editor/static/src/js/wysiwyg/wysiwyg.js
index 63853bb2f28..ae413bc1872 100644
--- a/addons/web_editor/static/src/js/wysiwyg/wysiwyg.js
+++ b/addons/web_editor/static/src/js/wysiwyg/wysiwyg.js
@@ -368,6 +368,12 @@ export class Wysiwyg extends Component {
             allowInlineAtRoot: this.options.allowInlineAtRoot,
             getYoutubeVideoElement: getYoutubeVideoElement,
             getContextFromParentRect: options.getContextFromParentRect,
+            getScrollContainerRect: () => {
+                if (!this.scrollContainer || !this.scrollContainer.getBoundingClientRect) {
+                    this.scrollContainer = document.querySelector('.o_action_manager');
+                }
+                return this.scrollContainer.getBoundingClientRect();
+            },
             getPowerboxElement: () => {
                 const selection = (this.options.document || document).getSelection();
                 if (selection.isCollapsed && selection.rangeCount) {
@@ -2760,6 +2766,7 @@ export class Wysiwyg extends Component {
     }
     _onScroll(ev) {
         if (ev.target.contains(this.$editable[0])) {
+            this.scrollContainer = ev.target;
             this.odooEditor.updateToolbarPosition();
         }
     }
diff --git a/addons/web_editor/static/src/js/wysiwyg/wysiwyg_iframe.js b/addons/web_editor/static/src/js/wysiwyg/wysiwyg_iframe.js
index f6eef88e415..46e450ae622 100644
--- a/addons/web_editor/static/src/js/wysiwyg/wysiwyg_iframe.js
+++ b/addons/web_editor/static/src/js/wysiwyg/wysiwyg_iframe.js
@@ -204,7 +204,12 @@ patch(Wysiwyg.prototype, {
         if (this.options.inIframe) {
             const iframeDocument = this.$iframe[0].contentDocument;
             const scrollInIframe = ev.target === iframeDocument || ev.target.ownerDocument === iframeDocument;
-            if (ev.target.contains(this.$iframe[0]) || scrollInIframe) {
+            if (ev.target.contains(this.$iframe[0]))  {
+                this.scrollContainer = ev.target;
+                this.odooEditor.updateToolbarPosition();
+            } else if (scrollInIframe) {
+                // UpdateToolbarPosition needs a scroll container in the top document.
+                this.scrollContainer = this.$iframe[0];
                 this.odooEditor.updateToolbarPosition();
             }
         } else {