diff --git a/src/gui/src/helpers/toolbarEmbed.js b/src/gui/src/helpers/toolbarEmbed.js
index 7a7ccf816..a3a35ba47 100644
--- a/src/gui/src/helpers/toolbarEmbed.js
+++ b/src/gui/src/helpers/toolbarEmbed.js
@@ -22,12 +22,32 @@ export function shouldShowUpgrade (user) {
     return !user.subscription?.active && !user.team?.uid;
 }
 
+const MIN_PANEL_WIDTH = 280;
+const MIN_PANEL_HEIGHT = 240;
+
+/**
+ * Places the expanded toolbar frame inside the viewport. It grows left and down
+ * from the collapsed frame and shrinks rather than shifts when there is room, so
+ * the toolbar buttons stay under the pointer.
+ */
 export function toolbarBounds (anchor, viewport, panel, requestedHeight) {
-    const width = Math.min(panel === 'apps' ? 440 : 360, viewport.width - 16);
-    const height = Math.min(panel === 'apps' ? 620 : (Number.isFinite(requestedHeight) ? Math.max(180, Math.min(requestedHeight, 800)) : 560), viewport.height - 16);
-    return {
-        width: Math.max(0, width), height: Math.max(0, height),
-        left: Math.max(8, Math.min(anchor.right - width, viewport.width - width - 8)),
-        top: Math.max(8, Math.min(anchor.top, viewport.height - height - 8)),
-    };
+    let width = Math.max(0, Math.min(panel === 'apps' ? 440 : 360, viewport.width - 16));
+    let height = Math.max(0, Math.min(panel === 'apps' ? 620 : (Number.isFinite(requestedHeight) ? Math.max(180, Math.min(requestedHeight, 800)) : 560), viewport.height - 16));
+    let left;
+    let top;
+    const roomLeft = anchor.right - 8;
+    if ( anchor.right <= viewport.width - 8 && roomLeft >= Math.min(width, MIN_PANEL_WIDTH) ) {
+        width = Math.min(width, roomLeft);
+        left = anchor.right - width;
+    } else {
+        left = Math.max(8, Math.min(anchor.right - width, viewport.width - width - 8));
+    }
+    const roomBelow = viewport.height - anchor.top - 8;
+    if ( anchor.top >= 8 && roomBelow >= Math.min(height, MIN_PANEL_HEIGHT) ) {
+        height = Math.min(height, roomBelow);
+        top = anchor.top;
+    } else {
+        top = Math.max(8, Math.min(anchor.top, viewport.height - height - 8));
+    }
+    return { width, height, left, top };
 }
diff --git a/src/gui/src/helpers/toolbarEmbed.test.js b/src/gui/src/helpers/toolbarEmbed.test.js
index 742232174..237d575d0 100644
--- a/src/gui/src/helpers/toolbarEmbed.test.js
+++ b/src/gui/src/helpers/toolbarEmbed.test.js
@@ -34,6 +34,21 @@ describe('toolbar integration', () => {
             }
         }
     });
+    it('keeps the toolbar buttons in place when the menu fits beside them', () => {
+        for ( const [viewport, anchor] of [
+            [{ width: 390, height: 700 }, { right: 374, top: 8 }],
+            [{ width: 320, height: 560 }, { right: 304, top: 12 }],
+            [{ width: 1100, height: 600 }, { right: 1084, top: 12 }],
+        ] ) {
+            for ( const panel of ['apps', 'account'] ) {
+                const box = toolbarBounds(anchor, viewport, panel);
+                expect(box.left + box.width).toBe(anchor.right);
+                expect(box.top).toBe(anchor.top);
+                expect(box.left).toBeGreaterThanOrEqual(8);
+                expect(box.top + box.height).toBeLessThanOrEqual(viewport.height - 8);
+            }
+        }
+    });
     it('opens an upgrade deep link once the billing UI is ready', () => {
         let opens = 0;
         const target = { location: { href: 'https://puter.com/dashboard?upgrade=1#usage' } };