diff --git a/Cargo.toml b/Cargo.toml
index f9680441..051e0581 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -114,7 +114,7 @@ members = [
 [workspace.dependencies.iced]
 git = "https://github.com/iced-rs/iced.git"
 #rev = "8221794"
-version = "0.9.0"
+#version = "0.9.0"
 features = ["advanced", "lazy"]
 
 [workspace.dependencies.iced_aw]
diff --git a/examples/floating_element/src/main.rs b/examples/floating_element/src/main.rs
index 707febd5..753f82ee 100644
--- a/examples/floating_element/src/main.rs
+++ b/examples/floating_element/src/main.rs
@@ -59,7 +59,7 @@ impl Application for FloatingElementExample {
         match self {
             FloatingElementExample::Loading => {
                 if let Message::Loaded(_) = message {
-                    *self = FloatingElementExample::Loaded(State { lines: (0..3000).into_iter().map(|_| "This is a newly added line.".into()).collect() })
+                    *self = FloatingElementExample::Loaded(State { lines: (0..3000).map(|_| "This is a newly added line.".into()).collect() })
                 }
             }
             FloatingElementExample::Loaded(State { lines }) => {
diff --git a/src/native/floating_element.rs b/src/native/floating_element.rs
index 1d868f83..98355cc5 100644
--- a/src/native/floating_element.rs
+++ b/src/native/floating_element.rs
@@ -7,7 +7,7 @@ use iced_widget::core::{
     mouse::{self, Cursor},
     overlay, renderer,
     widget::{Operation, Tree},
-    Clipboard, Element, Event, Layout, Length, Point, Rectangle, Shell, Widget,
+    Clipboard, Element, Event, Layout, Length, Rectangle, Shell, Widget,
 };
 
 pub mod anchor;
@@ -222,26 +222,14 @@ where
         if state.children.len() == 2 {
             let bounds = layout.bounds();
 
-            let offset = match self.anchor {
-                Anchor::NorthWest => Point::new(0.0, 0.0),
-                Anchor::NorthEast => Point::new(bounds.width, 0.0),
-                Anchor::SouthWest => Point::new(0.0, bounds.height),
-                Anchor::SouthEast => Point::new(bounds.width, bounds.height),
-                Anchor::North => Point::new(bounds.width / 2.0, 0.0),
-                Anchor::East => Point::new(bounds.width, bounds.height / 2.0),
-                Anchor::South => Point::new(bounds.width / 2.0, bounds.height),
-                Anchor::West => Point::new(0.0, bounds.height / 2.0),
-            };
-
-            let position = Point::new(bounds.x + offset.x, bounds.y + offset.y);
-
             Some(overlay::Element::new(
-                position,
+                bounds.position(),
                 Box::new(FloatingElementOverlay::new(
                     &mut state.children[1],
                     &mut self.element,
                     &self.anchor,
                     &self.offset,
+                    bounds,
                 )),
             ))
         } else {
diff --git a/src/native/overlay/floating_element.rs b/src/native/overlay/floating_element.rs
index 3a59effe..361cb3c9 100644
--- a/src/native/overlay/floating_element.rs
+++ b/src/native/overlay/floating_element.rs
@@ -7,7 +7,7 @@ use iced_widget::core::{
     mouse::{self, Cursor},
     overlay, renderer,
     widget::Tree,
-    Clipboard, Element, Event, Layout, Point, Rectangle, Shell, Size,
+    Clipboard, Element, Event, Layout, Length, Point, Rectangle, Shell, Size
 };
 
 use crate::native::floating_element::{Anchor, Offset};
@@ -24,6 +24,8 @@ pub struct FloatingElementOverlay<'a, 'b, Message, Renderer: core::Renderer> {
     anchor: &'b Anchor,
     /// The offset of the element.
     offset: &'b Offset,
+    /// The bounds of the underlay element.
+    underlay_bounds: Rectangle,
 }
 
 impl<'a, 'b, Message, Renderer> FloatingElementOverlay<'a, 'b, Message, Renderer>
@@ -37,12 +39,14 @@ where
         element: &'b mut Element<'a, Message, Renderer>,
         anchor: &'b Anchor,
         offset: &'b Offset,
+        underlay_bounds: Rectangle,
     ) -> Self {
         FloatingElementOverlay {
             state,
             element,
             anchor,
             offset,
+            underlay_bounds,
         }
     }
 }
@@ -52,68 +56,49 @@ impl<'a, 'b, Message, Renderer> core::Overlay<Message, Renderer>
 where
     Renderer: core::Renderer,
 {
-    fn layout(&self, renderer: &Renderer, bounds: Size, position: Point) -> layout::Node {
-        let limits = layout::Limits::new(Size::ZERO, bounds);
-        let element = self.element.as_widget().layout(renderer, &limits);
-
-        let size = match self.anchor {
-            Anchor::NorthWest | Anchor::North => Size::new(
-                position.x + self.offset.x + element.bounds().width,
-                position.y + self.offset.y + element.bounds().height,
-            ),
-            Anchor::NorthEast => Size::new(
-                position.x - self.offset.x,
-                position.y + self.offset.y + element.bounds().height,
-            ),
-            Anchor::SouthWest | Anchor::South => Size::new(
-                position.x + self.offset.x + element.bounds().width,
-                position.y - self.offset.y,
-            ),
-            Anchor::SouthEast => Size::new(position.x - self.offset.x, position.y - self.offset.y),
-            Anchor::East => Size::new(
-                position.x - self.offset.x,
-                position.y + element.bounds().height / 2.0,
-            ),
-            Anchor::West => Size::new(
-                position.x + self.offset.x + element.bounds().width,
-                position.y + element.bounds().height / 2.0,
-            ),
-        };
+    fn layout(&self, renderer: &Renderer, _bounds: Size, position: Point) -> layout::Node {
+        // Constrain overlay to fit inside the underlay's bounds
+        let limits = layout::Limits::new(Size::ZERO, self.underlay_bounds.size())
+            .width(Length::Fill)
+            .height(Length::Fill);
+        let mut node = self.element.as_widget().layout(renderer, &limits);
 
         let position = match self.anchor {
             Anchor::NorthWest => Point::new(position.x + self.offset.x, position.y + self.offset.y),
             Anchor::NorthEast => Point::new(
-                position.x - element.bounds().width - self.offset.x,
-                position.y + self.offset.y,
+                position.x + self.underlay_bounds.width - node.bounds().width - self.offset.x,
+                 position.y + self.offset.y,
             ),
             Anchor::SouthWest => Point::new(
                 position.x + self.offset.x,
-                position.y - element.bounds().height - self.offset.y,
+                position.y + self.underlay_bounds.height - node.bounds().height - self.offset.y,
             ),
             Anchor::SouthEast => Point::new(
-                position.x - element.bounds().width - self.offset.x,
-                position.y - element.bounds().height - self.offset.y,
+                position.x + self.underlay_bounds.width - node.bounds().width - self.offset.x,
+                position.y + self.underlay_bounds.height - node.bounds().height - self.offset.y,
             ),
             Anchor::North => Point::new(
-                position.x + self.offset.x - element.bounds().width / 2.0,
+                position.x + self.underlay_bounds.width / 2.0 - node.bounds().width / 2.0
+                    + self.offset.x,
                 position.y + self.offset.y,
             ),
             Anchor::East => Point::new(
-                position.x - element.bounds().width - self.offset.x,
-                position.y - element.bounds().height / 2.0,
+                position.x + self.underlay_bounds.width - node.bounds().width - self.offset.x,
+               position.y + self.underlay_bounds.height / 2.0 - node.bounds().height / 2.0
+                   + self.offset.y,
             ),
             Anchor::South => Point::new(
-                position.x + self.offset.x - element.bounds().width / 2.0,
-                position.y - element.bounds().height - self.offset.y,
+                position.x + self.underlay_bounds.width / 2.0 - node.bounds().width / 2.0
+                    + self.offset.x,
+                position.y + self.underlay_bounds.height - node.bounds().height - self.offset.y,
             ),
             Anchor::West => Point::new(
                 position.x + self.offset.x,
-                position.y - element.bounds().height / 2.0,
+                position.y + self.underlay_bounds.height / 2.0 - node.bounds().height / 2.0
+                   + self.offset.y,
             ),
         };
 
-        //element.move_to(position);
-        let mut node = layout::Node::with_children(size, vec![element]);
         node.move_to(position);
         node
     }
@@ -130,10 +115,7 @@ where
         self.element.as_widget_mut().on_event(
             self.state,
             event,
-            layout
-                .children()
-                .next()
-                .expect("Native: Layout should have a content layout."),
+            layout,
             cursor,
             renderer,
             clipboard,
@@ -151,10 +133,7 @@ where
     ) -> mouse::Interaction {
         self.element.as_widget().mouse_interaction(
             self.state,
-            layout
-                .children()
-                .next()
-                .expect("Native: Layout should have a content layout."),
+            layout,
             cursor,
             viewport,
             renderer,
@@ -175,10 +154,7 @@ where
             renderer,
             theme,
             style,
-            layout
-                .children()
-                .next()
-                .expect("Native: Layout should have a content layout."),
+            layout,
             cursor,
             &bounds,
         );
@@ -191,6 +167,6 @@ where
     ) -> Option<overlay::Element<'c, Message, Renderer>> {
         self.element
             .as_widget_mut()
-            .overlay(self.state, layout.children().next()?, renderer)
+            .overlay(self.state, layout, renderer)
     }
 }