diff --git a/virtualkeyboard.h b/virtualkeyboard.h
--- a/virtualkeyboard.h
+++ b/virtualkeyboard.h
@@ -25,6 +25,8 @@
 #include <kwinglobals.h>
 #include <kwin_export.h>
 
+#include <abstract_client.h>
+
 class QQuickView;
 class QWindow;
 class KStatusNotifierItem;
@@ -53,10 +55,12 @@
     void hide();
     void setEnabled(bool enable);
     void updateSni();
+    void updateInputPanelState();
 
     bool m_enabled = false;
     KStatusNotifierItem *m_sni = nullptr;
     QScopedPointer<QQuickView> m_inputWindow;
+    QPointer<AbstractClient> m_trackedClient;
     QMetaObject::Connection m_waylandShowConnection;
     QMetaObject::Connection m_waylandHideConnection;
     QMetaObject::Connection m_waylandHintsConnection;
diff --git a/virtualkeyboard.cpp b/virtualkeyboard.cpp
--- a/virtualkeyboard.cpp
+++ b/virtualkeyboard.cpp
@@ -30,10 +30,13 @@
 #include <KWayland/Server/display.h>
 #include <KWayland/Server/seat_interface.h>
 #include <KWayland/Server/textinput_interface.h>
+#include <KWayland/Server/surface_interface.h>
 
 #include <KStatusNotifierItem>
 #include <KLocalizedString>
 
+#include <KDecoration2/Decoration>
+
 #include <QDBusConnection>
 #include <QDBusPendingCall>
 #include <QDBusMessage>
@@ -146,8 +149,15 @@
                             qApp->inputMethod()->update(Qt::ImQueryAll);
                         }
                     );
-                    // TODO: calculate overlap
-                    t->setInputPanelState(m_inputWindow->isVisible(), QRect(0, 0, 0, 0));
+
+                    disconnect(m_trackedClient.data(), nullptr, this, nullptr);
+                    m_trackedClient = waylandServer()->findAbstractClient(waylandServer()->seat()->focusedTextInputSurface());
+
+                    if (m_trackedClient) {
+                        connect(m_trackedClient.data(), &AbstractClient::geometryChanged, this, &VirtualKeyboard::updateInputPanelState);
+                    }
+
+                    updateInputPanelState();
                 } else {
                     m_waylandShowConnection = QMetaObject::Connection();
                     m_waylandHideConnection = QMetaObject::Connection();
@@ -176,20 +186,15 @@
             m_inputWindow->setMask(m_inputWindow->rootObject()->childrenRect().toRect());
         }
     );
-    connect(qApp->inputMethod(), &QInputMethod::visibleChanged, m_inputWindow.data(),
-        [this] {
-            m_inputWindow->setVisible(qApp->inputMethod()->isVisible());
-            if (qApp->inputMethod()->isVisible()) {
-                m_inputWindow->setMask(m_inputWindow->rootObject()->childrenRect().toRect());
-            }
-            if (waylandServer()) {
-                if (auto t = waylandServer()->seat()->focusedTextInput()) {
-                    // TODO: calculate overlap
-                    t->setInputPanelState(m_inputWindow->isVisible(), QRect(0, 0, 0, 0));
-                }
-            }
-        }
-    );
+
+    //TODO: move to method
+    auto adjustInputWindow = [this] {
+        
+    };
+    
+    connect(qApp->inputMethod(), &QInputMethod::visibleChanged, this, &VirtualKeyboard::updateInputPanelState);
+
+    connect(m_inputWindow->rootObject(), &QQuickItem::childrenRectChanged, this, &VirtualKeyboard::updateInputPanelState);
 }
 
 void VirtualKeyboard::setEnabled(bool enabled)
@@ -226,6 +231,31 @@
     }
 }
 
+void VirtualKeyboard::updateInputPanelState()
+{
+    m_inputWindow->setVisible(qApp->inputMethod()->isVisible());
+    if (qApp->inputMethod()->isVisible()) {
+        m_inputWindow->setMask(m_inputWindow->rootObject()->childrenRect().toRect());
+    }
+    if (waylandServer()) {
+        if (auto t = waylandServer()->seat()->focusedTextInput()) {
+            if (m_inputWindow->isVisible() && m_trackedClient && m_inputWindow->rootObject()) {
+                QRect activeWindowGeom = m_trackedClient->geometry();
+                const QRect inputPanelGeom = m_inputWindow->rootObject()->childrenRect().toRect().translated(m_inputWindow->geometry().topLeft());
+
+                auto *dec = m_trackedClient->decoration();
+                if (dec) {
+                    activeWindowGeom.adjust(dec->borderLeft(), dec->borderTop(), -dec->borderRight(), -dec->borderBottom());
+                }
+
+                t->setInputPanelState(true, activeWindowGeom.intersected(inputPanelGeom));
+            } else {
+                t->setInputPanelState(false, QRect(0, 0, 0, 0));
+            }
+        }
+    }
+}
+
 void VirtualKeyboard::show()
 {
     if (m_inputWindow.isNull() || !m_enabled) {