diff --git a/src/utils.ts b/src/utils.ts
index 5dc9333c..3d3cecd5 100644
--- a/src/utils.ts
+++ b/src/utils.ts
@@ -475,7 +475,9 @@ export const getNearestScrollableContainer = (
     const hasScrollableContent = parent.scrollHeight > parent.clientHeight;
     if (
       hasScrollableContent &&
-      (overflowY === "auto" || overflowY === "scroll")
+      (overflowY === "auto" ||
+        overflowY === "scroll" ||
+        overflowY === "overlay")
     ) {
       return parent;
     }