diff --git a/src/plasmaquick/dialog.cpp b/src/plasmaquick/dialog.cpp
--- a/src/plasmaquick/dialog.cpp
+++ b/src/plasmaquick/dialog.cpp
@@ -902,15 +902,28 @@
         return QPoint();
     }
 
-    //if the item is in a dock or in a window that ignores WM we want to position the popups outside of the dock
     const KWindowInfo winInfo = KWindowSystem::windowInfo(item->window()->winId(), NET::WMWindowType);
+
+    //if the item is in a panel/dock or in a window that ignores WM we want to position the popups outside of the dock.
+    // Tooltip windows can be ignored from the check because they should be allowed to be inside the main window
     const bool outsideParentWindow = ((winInfo.windowType(NET::AllTypesMask) == NET::Dock) || (item->window()->flags() & Qt::X11BypassWindowManagerHint))
-            && item->window()->mask().isNull();
+                    && !flags().testFlag(Qt::ToolTip);
 
     QRect parentGeometryBounds;
     if (outsideParentWindow) {
-        parentGeometryBounds = item->window()->geometry();
+        // [1] placement according to window
+
+        //use the mask as boundary when it is available in order to not place window far from the window mask
+        // fixes also the !compositing case that plasma panels are not placing their popups correctly
+        if (!item->window()->mask().isNull()) {
+            QRect maskRect = item->window()->mask().boundingRect();
+            maskRect.moveTopLeft(item->window()->mapToGlobal(maskRect.topLeft()));
+            parentGeometryBounds = maskRect;
+        } else {
+            parentGeometryBounds = item->window()->geometry();
+        }
     } else {
+        // [2] placement according to item
         parentGeometryBounds = item->mapRectToScene(item->boundingRect()).toRect();
         if (item->window()) {
             parentGeometryBounds.moveTopLeft(item->window()->mapToGlobal(parentGeometryBounds.topLeft()));