diff --git a/Assets/Translations/de.json b/Assets/Translations/de.json
index 6907ed91..5c1dfeec 100644
--- a/Assets/Translations/de.json
+++ b/Assets/Translations/de.json
@@ -783,6 +783,10 @@
         "description": "Deaktivieren Sie alle Animationen für eine schnellere und reaktionsfreudigere Erfahrung.",
         "label": "UI-Animationen deaktivieren"
       },
+      "panels-overlay": {
+        "label": "Panels in Overlay-Ebene öffnen",
+        "description": "Panels werden über Vollbildfenstern angezeigt"
+      },
       "animation-speed": {
         "description": "Globale Animationsgeschwindigkeit anpassen.",
         "label": "Animationsgeschwindigkeit",
diff --git a/Assets/Translations/en.json b/Assets/Translations/en.json
index f8c8286f..b4814d84 100644
--- a/Assets/Translations/en.json
+++ b/Assets/Translations/en.json
@@ -810,6 +810,10 @@
       "animation-disable": {
         "label": "Disable UI Animations",
         "description": "Disable all animations for a faster, more responsive experience."
+      },
+      "panels-overlay": {
+        "label": "Open panels in overlay layer",
+        "description": "Panels will appear above fullscreen windows"
       }
     },
     "lock-screen": {
diff --git a/Assets/Translations/es.json b/Assets/Translations/es.json
index c6311f6d..10bc18bc 100644
--- a/Assets/Translations/es.json
+++ b/Assets/Translations/es.json
@@ -783,6 +783,10 @@
         "description": "Desactiva todas las animaciones para una experiencia más rápida y con mayor capacidad de respuesta.",
         "label": "Desactivar animaciones de la interfaz de usuario"
       },
+      "panels-overlay": {
+        "label": "Abrir paneles en capa superpuesta",
+        "description": "Los paneles aparecerán sobre las ventanas en pantalla completa"
+      },
       "animation-speed": {
         "description": "Ajustar la velocidad global de la animación.",
         "label": "Velocidad de animación",
diff --git a/Assets/Translations/fr.json b/Assets/Translations/fr.json
index c50cf02e..790220ed 100644
--- a/Assets/Translations/fr.json
+++ b/Assets/Translations/fr.json
@@ -783,6 +783,10 @@
         "description": "Désactiver toutes les animations pour une expérience plus rapide et plus réactive.",
         "label": "Désactiver les animations de l'interface utilisateur"
       },
+      "panels-overlay": {
+        "label": "Ouvrir les panneaux en couche superposée",
+        "description": "Les panneaux apparaîtront au-dessus des fenêtres en plein écran"
+      },
       "animation-speed": {
         "description": "Ajuster la vitesse globale de l'animation.",
         "label": "Vitesse d'animation",
diff --git a/Assets/Translations/pt.json b/Assets/Translations/pt.json
index ccc2cfa1..0be6fdf2 100644
--- a/Assets/Translations/pt.json
+++ b/Assets/Translations/pt.json
@@ -783,6 +783,10 @@
         "description": "Desative todas as animações para uma experiência mais rápida e responsiva.",
         "label": "Desativar animações da interface do usuário"
       },
+      "panels-overlay": {
+        "label": "Abrir painéis na camada de sobreposição",
+        "description": "Os painéis aparecerão sobre janelas em tela cheia"
+      },
       "animation-speed": {
         "description": "Ajustar a velocidade global da animação.",
         "label": "Velocidade da animação",
diff --git a/Assets/Translations/zh-CN.json b/Assets/Translations/zh-CN.json
index e46e952e..90c4cecf 100644
--- a/Assets/Translations/zh-CN.json
+++ b/Assets/Translations/zh-CN.json
@@ -783,6 +783,10 @@
         "description": "禁用所有动画以获得更快、更流畅的体验。",
         "label": "禁用 UI 动画"
       },
+      "panels-overlay": {
+        "label": "在覆盖层中打开面板",
+        "description": "面板将显示在全屏窗口上方"
+      },
       "animation-speed": {
         "description": "调整全局动画速度。",
         "label": "动画速度",
diff --git a/Assets/settings-default.json b/Assets/settings-default.json
index 57033237..904e3961 100644
--- a/Assets/settings-default.json
+++ b/Assets/settings-default.json
@@ -210,7 +210,8 @@
     "fontFixed": "DejaVu Sans Mono",
     "fontDefaultScale": 1,
     "fontFixedScale": 1,
-    "tooltipsEnabled": true
+    "tooltipsEnabled": true,
+    "panelsOverlayLayer": true
   },
   "brightness": {
     "brightnessStep": 5
diff --git a/Commons/Settings.qml b/Commons/Settings.qml
index 2a392176..08005398 100644
--- a/Commons/Settings.qml
+++ b/Commons/Settings.qml
@@ -346,6 +346,7 @@ Singleton {
       property real fontDefaultScale: 1.0
       property real fontFixedScale: 1.0
       property bool tooltipsEnabled: true
+      property bool panelsOverlayLayer: true
     }
 
     // brightness
diff --git a/Modules/Settings/Tabs/UserInterfaceTab.qml b/Modules/Settings/Tabs/UserInterfaceTab.qml
index cffb7489..e3190927 100644
--- a/Modules/Settings/Tabs/UserInterfaceTab.qml
+++ b/Modules/Settings/Tabs/UserInterfaceTab.qml
@@ -33,6 +33,13 @@ ColumnLayout {
       onToggled: checked => Settings.data.ui.tooltipsEnabled = checked
     }
 
+    NToggle {
+      label: I18n.tr("settings.user-interface.panels-overlay.label")
+      description: I18n.tr("settings.user-interface.panels-overlay.description")
+      checked: Settings.data.ui.panelsOverlayLayer
+      onToggled: checked => Settings.data.ui.panelsOverlayLayer = checked
+    }
+
     NDivider {
       Layout.fillWidth: true
       Layout.topMargin: Style.marginL
diff --git a/Widgets/NPanel.qml b/Widgets/NPanel.qml
index 72e4905e..527f31c6 100644
--- a/Widgets/NPanel.qml
+++ b/Widgets/NPanel.qml
@@ -9,6 +9,8 @@ Loader {
 
   property ShellScreen screen
 
+  property bool useOverlay: Settings.data.ui.panelsOverlayLayer
+
   property Component panelContent: null
   property real preferredWidth: 700
   property real preferredHeight: 900
@@ -157,6 +159,7 @@ Loader {
 
       WlrLayershell.exclusionMode: ExclusionMode.Ignore
       WlrLayershell.namespace: "noctalia-panel"
+      WlrLayershell.layer: useOverlay ? WlrLayer.Overlay : WlrLayer.Top
       WlrLayershell.keyboardFocus: root.panelKeyboardFocus ? WlrKeyboardFocus.OnDemand : WlrKeyboardFocus.None
 
       Region {