diff --git a/HISTORY.md b/HISTORY.md
index 3c4f09d..56b5b39 100644
--- a/HISTORY.md
+++ b/HISTORY.md
@@ -30,6 +30,8 @@ https://github.com/josdejong/jsoneditor
 - Fixed #38: clear search results after a new JSON object is set.
 - Fixed #242: row stays highlighted when dragging outside editor.
 - Fixed quick-keys Shift+Alt+Arrows not registering actions in history.
+- Fixed #104: context menus are now positioned relative to the elements of the 
+  editor instead of an absolute position in the window.
 
 
 ## 2015-06-13, version 4.2.1
diff --git a/src/css/contextmenu.css b/src/css/contextmenu.css
index 2e0303e..2d3e776 100644
--- a/src/css/contextmenu.css
+++ b/src/css/contextmenu.css
@@ -1,6 +1,12 @@
 
 /* ContextMenu - main menu */
 
+div.jsoneditor-contextmenu-root {
+  position: relative;
+  width: 0;
+  height: 0;
+}
+
 div.jsoneditor-contextmenu {
   position: absolute;
   z-index: 99999;
diff --git a/src/css/jsoneditor.css b/src/css/jsoneditor.css
index 830ae9e..4d41bfd 100644
--- a/src/css/jsoneditor.css
+++ b/src/css/jsoneditor.css
@@ -142,7 +142,7 @@ div.jsoneditor-tree button.jsoneditor-contextmenu {
 
 div.jsoneditor-tree button.jsoneditor-contextmenu:hover,
 div.jsoneditor-tree button.jsoneditor-contextmenu:focus,
-div.jsoneditor-tree button.jsoneditor-contextmenu.selected,
+div.jsoneditor-tree button.jsoneditor-contextmenu.jsoneditor-selected,
 tr.jsoneditor-selected.jsoneditor-first button.jsoneditor-contextmenu {
   background-position: -48px -48px;
 }
@@ -174,7 +174,7 @@ div.jsoneditor {
 
   width: 100%;
   height: 100%;
-  overflow: auto;
+  overflow: hidden;
   position: relative;
   padding: 0;
   line-height: 100%;
@@ -197,8 +197,6 @@ div.jsoneditor-outer {
   -moz-box-sizing: border-box;
   -webkit-box-sizing: border-box;
   box-sizing: border-box;
-
-  overflow: hidden;
 }
 
 div.jsoneditor-tree {
diff --git a/src/css/menu.css b/src/css/menu.css
index 2b7ac61..6a4f44c 100644
--- a/src/css/menu.css
+++ b/src/css/menu.css
@@ -4,7 +4,6 @@ div.jsoneditor-menu {
   height: 35px;
   padding: 2px;
   margin: 0;
-  overflow: hidden;
   -moz-box-sizing: border-box;
   -webkit-box-sizing: border-box;
   box-sizing: border-box;
@@ -14,7 +13,8 @@ div.jsoneditor-menu {
   border-bottom: 1px solid #3883fa;
 }
 
-div.jsoneditor-menu > button {
+div.jsoneditor-menu > button,
+div.jsoneditor-menu > div.jsoneditor-modes > button {
   width: 26px;
   height: 26px;
   margin: 2px;
@@ -31,15 +31,19 @@ div.jsoneditor-menu > button {
   float: left;
 }
 
-div.jsoneditor-menu > button:hover {
+div.jsoneditor-menu > button:hover,
+div.jsoneditor-menu > div.jsoneditor-modes > button:hover {
   background-color: rgba(255,255,255,0.2);
   border: 1px solid rgba(255,255,255,0.4);
 }
 div.jsoneditor-menu > button:focus,
-div.jsoneditor-menu > button:active {
+div.jsoneditor-menu > button:active,
+div.jsoneditor-menu > div.jsoneditor-modes > button:focus,
+div.jsoneditor-menu > div.jsoneditor-modes > button:active {
   background-color: rgba(255,255,255,0.3);
 }
-div.jsoneditor-menu > button:disabled {
+div.jsoneditor-menu > button:disabled,
+div.jsoneditor-menu > div.jsoneditor-modes > button:disabled {
   opacity: 0.5;
 }
 
@@ -68,14 +72,20 @@ div.jsoneditor-menu > button.jsoneditor-format {
   background-position: -72px -120px;
 }
 
-div.jsoneditor-menu > button.jsoneditor-modes {
+div.jsoneditor-menu > div.jsoneditor-modes {
+  display: inline-block;
+  float: left;
+}
+
+div.jsoneditor-menu > div.jsoneditor-modes > button {
   background-image: none;
   width: auto;
   padding-left: 6px;
   padding-right: 6px;
 }
 
-div.jsoneditor-menu > button.jsoneditor-separator {
+div.jsoneditor-menu > button.jsoneditor-separator,
+div.jsoneditor-menu > div.jsoneditor-modes > button.jsoneditor-separator {
   margin-left: 10px;
 }
 
@@ -98,5 +108,3 @@ div.jsoneditor-menu a.jsoneditor-poweredBy {
   top: 0;
   padding: 10px;
 }
-
-/* TODO: css for button:disabled is not supported by IE8 */
diff --git a/src/js/ContextMenu.js b/src/js/ContextMenu.js
index edff281..01c7ff9 100644
--- a/src/js/ContextMenu.js
+++ b/src/js/ContextMenu.js
@@ -18,13 +18,18 @@ function ContextMenu (items, options) {
   this.items = items;
   this.eventListeners = {};
   this.selection = undefined; // holds the selection before the menu was opened
-  this.visibleSubmenu = undefined;
   this.onClose = options ? options.close : undefined;
 
+  // create root element
+  var root = document.createElement('div');
+  root.className = 'jsoneditor-contextmenu-root';
+  dom.root = root;
+
   // create a container element
   var menu = document.createElement('div');
   menu.className = 'jsoneditor-contextmenu';
   dom.menu = menu;
+  root.appendChild(menu);
 
   // create a list to hold the menu items
   var list = document.createElement('ul');
@@ -176,60 +181,65 @@ ContextMenu.visibleMenu = undefined;
 
 /**
  * Attach the menu to an anchor
- * @param {HTMLElement} anchor
+ * @param {HTMLElement} anchor          Anchor where the menu will be attached
+ *                                      as sibling.
+ * @param {HTMLElement} [contentWindow] The DIV with with the (scrollable) contents
  */
-ContextMenu.prototype.show = function (anchor) {
+ContextMenu.prototype.show = function (anchor, contentWindow) {
   this.hide();
 
-  // calculate whether the menu fits below the anchor
-  var windowHeight = window.innerHeight,
-      windowScroll = (window.pageYOffset || document.scrollTop || 0),
-      windowBottom = windowHeight + windowScroll,
-      anchorHeight = anchor.offsetHeight,
-      menuHeight = this.maxHeight;
+  // determine whether to display the menu below or above the anchor
+  var showBelow = true;
+  if (contentWindow) {
+    var anchorRect = anchor.getBoundingClientRect();
+    var contentRect = contentWindow.getBoundingClientRect();
+
+    if (anchorRect.bottom + this.maxHeight < contentRect.bottom) {
+      // fits below -> show below
+    }
+    else if (anchorRect.top - this.maxHeight > contentRect.top) {
+      // fits above -> show above
+      showBelow = false;
+    }
+    else {
+      // doesn't fit above nor below -> show below
+    }
+  }
 
   // position the menu
-  var left = util.getAbsoluteLeft(anchor);
-  var top = util.getAbsoluteTop(anchor);
-  if (top + anchorHeight + menuHeight < windowBottom) {
+  if (showBelow) {
     // display the menu below the anchor
-    this.dom.menu.style.left = left + 'px';
-    this.dom.menu.style.top = (top + anchorHeight) + 'px';
+    var anchorHeight = anchor.offsetHeight;
+    this.dom.menu.style.left = '0px';
+    this.dom.menu.style.top = anchorHeight + 'px';
     this.dom.menu.style.bottom = '';
   }
   else {
     // display the menu above the anchor
-    this.dom.menu.style.left = left + 'px';
+    this.dom.menu.style.left = '0px';
     this.dom.menu.style.top = '';
-    this.dom.menu.style.bottom = (windowHeight - top) + 'px';
+    this.dom.menu.style.bottom = '0px';
   }
 
-  // attach the menu to the document
-  document.body.appendChild(this.dom.menu);
+  // attach the menu to the parent of the anchor
+  var parent = anchor.parentNode;
+  parent.insertBefore(this.dom.root, parent.firstChild);
 
   // create and attach event listeners
   var me = this;
   var list = this.dom.list;
-  this.eventListeners.mousedown = util.addEventListener(
-      document, 'mousedown', function (event) {
-        // hide menu on click outside of the menu
-        var target = event.target;
-        if ((target != list) && !me._isChildOf(target, list)) {
-          me.hide();
-          event.stopPropagation();
-          event.preventDefault();
-        }
-      });
-  this.eventListeners.mousewheel = util.addEventListener(
-      document, 'mousewheel', function (event) {
-        // block scrolling when context menu is visible
-        event.stopPropagation();
-        event.preventDefault();
-      });
-  this.eventListeners.keydown = util.addEventListener(
-      document, 'keydown', function (event) {
-        me._onKeyDown(event);
-      });
+  this.eventListeners.mousedown = util.addEventListener(window, 'mousedown', function (event) {
+    // hide menu on click outside of the menu
+    var target = event.target;
+    if ((target != list) && !me._isChildOf(target, list)) {
+      me.hide();
+      event.stopPropagation();
+      event.preventDefault();
+    }
+  });
+  this.eventListeners.keydown = util.addEventListener(window, 'keydown', function (event) {
+    me._onKeyDown(event);
+  });
 
   // move focus to the first button in the context menu
   this.selection = util.getSelection();
@@ -249,8 +259,8 @@ ContextMenu.prototype.show = function (anchor) {
  */
 ContextMenu.prototype.hide = function () {
   // remove the menu from the DOM
-  if (this.dom.menu.parentNode) {
-    this.dom.menu.parentNode.removeChild(this.dom.menu);
+  if (this.dom.root.parentNode) {
+    this.dom.root.parentNode.removeChild(this.dom.root);
     if (this.onClose) {
       this.onClose();
     }
@@ -262,7 +272,7 @@ ContextMenu.prototype.hide = function () {
     if (this.eventListeners.hasOwnProperty(name)) {
       var fn = this.eventListeners[name];
       if (fn) {
-        util.removeEventListener(document, name, fn);
+        util.removeEventListener(window, name, fn);
       }
       delete this.eventListeners[name];
     }
diff --git a/src/js/Node.js b/src/js/Node.js
index e95a5b1..3993df8 100644
--- a/src/js/Node.js
+++ b/src/js/Node.js
@@ -2786,7 +2786,8 @@ Node.TYPE_TITLES = {
 
 /**
  * Show a contextmenu for this node
- * @param {HTMLElement} anchor   Anchor element to attache the context menu to.
+ * @param {HTMLElement} anchor   Anchor element to attach the context menu to
+ *                               as sibling.
  * @param {function} [onClose]   Callback method called when the context menu
  *                               is being closed.
  */
@@ -2996,7 +2997,7 @@ Node.prototype.showContextMenu = function (anchor, onClose) {
   }
 
   var menu = new ContextMenu(items, {close: onClose});
-  menu.show(anchor);
+  menu.show(anchor, this.editor.content);
 };
 
 /**
diff --git a/src/js/appendNodeFactory.js b/src/js/appendNodeFactory.js
index c3d4381..a2f219e 100644
--- a/src/js/appendNodeFactory.js
+++ b/src/js/appendNodeFactory.js
@@ -179,7 +179,7 @@ function appendNodeFactory(Node) {
     ];
 
     var menu = new ContextMenu(items, {close: onClose});
-    menu.show(anchor);
+    menu.show(anchor, this.editor.content);
   };
 
   /**
diff --git a/src/js/modeswitcher.js b/src/js/modeswitcher.js
index ed4c1f6..b0d8a65 100644
--- a/src/js/modeswitcher.js
+++ b/src/js/modeswitcher.js
@@ -94,7 +94,12 @@ function createModeSwitcher(editor, modes, current) {
     menu.show(box);
   };
 
-  return box;
+  var div = document.createElement('div');
+  div.className = 'jsoneditor-modes';
+  div.style.position = 'relative';
+  div.appendChild(box);
+
+  return div;
 }
 
 exports.create = createModeSwitcher;
diff --git a/src/js/treemode.js b/src/js/treemode.js
index 1f3360d..d39366d 100644
--- a/src/js/treemode.js
+++ b/src/js/treemode.js
@@ -653,7 +653,7 @@ treemode._onEvent = function (event) {
   if (node && node.selected) {
     if (event.type == 'click') {
       if (event.target == node.dom.menu) {
-        this.showContextMenu(event.target);
+        this.showContextMenu(event.target.parentNode);
 
         // stop propagation (else we will open the context menu of a single node)
         return;
@@ -701,6 +701,10 @@ treemode._startDragDistance = function (event) {
 };
 
 treemode._updateDragDistance = function (event) {
+  if (!this.dragDistanceEvent) {
+    this._startDragDistance(event);
+  }
+
   var diffX = event.pageX - this.dragDistanceEvent.initialPageX;
   var diffY = event.pageY - this.dragDistanceEvent.initialPageY;
 
@@ -1024,7 +1028,7 @@ treemode.showContextMenu = function (anchor, onClose) {
   });
 
   var menu = new ContextMenu(items, {close: onClose});
-  menu.show(anchor);
+  menu.show(anchor, this.content);
 };