diff --git a/HISTORY.md b/HISTORY.md
index 5715e4d..910b054 100644
--- a/HISTORY.md
+++ b/HISTORY.md
@@ -3,8 +3,10 @@
 https://github.com/josdejong/jsoneditor
 
 
-## not yet published, version 8.0.1
+## not yet published, version 8.1.0
 
+- Implemented `popupAnchor` allowing to select a custom anchor element. 
+  See #869 and #870.  
 - Fixed #502: CSS rule `* { font-family: ... }` resulting in Ace editor (`code` 
   mode) not having a mono-space font anymore.
 
diff --git a/docs/api.md b/docs/api.md
index 8e16c43..7cd79f3 100644
--- a/docs/api.md
+++ b/docs/api.md
@@ -567,6 +567,17 @@ Constructs a new JSONEditor.
   The container element where modals (like for sorting and filtering) are attached: an overlay will be created on top
   of this container, and the modal will be created in the center of this container.
 
+- `{HTMLElement} popupAnchor`
+
+  The container element where popups (for example drop down menus, for JSON Schema error
+  tooltips, and color pickers) will be absolutely positioned. 
+  By default, this is the root DIV element of the editor itself. 
+  
+  When the JSONEditor is inside a DIV element which hides overflowing contents 
+  (CSS `overflow: auto` or `overflow: hidden`), tooltips will be visible only partly. 
+  In this case, a `popupAnchor` outside of the element without hidden overflow will allow 
+  the tooltips to be visible when overflowing the DIV element of the JSONEditor.
+
 - `{boolean} enableSort`
 
   Enable sorting of arrays and object properties. Only applicable for mode 'tree'. `true` by default.
diff --git a/src/js/JSONEditor.js b/src/js/JSONEditor.js
index f8fd63e..6fd4482 100644
--- a/src/js/JSONEditor.js
+++ b/src/js/JSONEditor.js
@@ -183,7 +183,8 @@ JSONEditor.VALID_OPTIONS = [
   'timestampTag', 'timestampFormat',
   'escapeUnicode', 'history', 'search', 'mode', 'modes', 'name', 'indentation',
   'sortObjectKeys', 'navigationBar', 'statusBar', 'mainMenuBar', 'languages', 'language', 'enableSort', 'enableTransform',
-  'maxVisibleChilds', 'onValidationError'
+  'maxVisibleChilds', 'onValidationError',
+  'modalAnchor', 'popupAnchor'
 ]
 
 /**
diff --git a/src/js/Node.js b/src/js/Node.js
index 6345a2e..49f2498 100644
--- a/src/js/Node.js
+++ b/src/js/Node.js
@@ -303,7 +303,7 @@ export class Node {
 
       const createPopup = (destroyOnMouseOut) => {
         const frame = this.editor.frame
-        this.dom.popupAnchor = createAbsoluteAnchor(button, frame, onDestroy, destroyOnMouseOut)
+        this.dom.popupAnchor = createAbsoluteAnchor(button, this.editor.getPopupAnchor(), onDestroy, destroyOnMouseOut)
 
         const popupWidth = 200 // must correspond to what's configured in the CSS
         const buttonRect = button.getBoundingClientRect()
@@ -3021,7 +3021,7 @@ export class Node {
       node._deleteDomColor()
       node.updateDom()
 
-      const colorAnchor = createAbsoluteAnchor(this.dom.color, this.editor.frame)
+      const colorAnchor = createAbsoluteAnchor(this.dom.color, this.editor.getPopupAnchor())
 
       this.editor.options.onColorPicker(colorAnchor, this.value, function onChange (value) {
         if (typeof value === 'string' && value !== node.value) {
@@ -3835,7 +3835,7 @@ export class Node {
     }
 
     const menu = new ContextMenu(items, { close: onClose })
-    menu.show(anchor, this.editor.frame)
+    menu.show(anchor, this.editor.getPopupAnchor())
   }
 
   /**
diff --git a/src/js/appendNodeFactory.js b/src/js/appendNodeFactory.js
index 07cf7f4..a307a06 100644
--- a/src/js/appendNodeFactory.js
+++ b/src/js/appendNodeFactory.js
@@ -207,7 +207,7 @@ export function appendNodeFactory (Node) {
     }
 
     const menu = new ContextMenu(items, { close: onClose })
-    menu.show(anchor, this.editor.frame)
+    menu.show(anchor, this.editor.getPopupAnchor())
   }
 
   /**
diff --git a/src/js/createAbsoluteAnchor.js b/src/js/createAbsoluteAnchor.js
index a6ec62d..3963fb6 100644
--- a/src/js/createAbsoluteAnchor.js
+++ b/src/js/createAbsoluteAnchor.js
@@ -14,13 +14,13 @@ export function createAbsoluteAnchor (anchor, parent, onDestroy, destroyOnMouseO
   const eventListeners = {}
 
   const anchorRect = anchor.getBoundingClientRect()
-  const frameRect = parent.getBoundingClientRect()
+  const parentRect = parent.getBoundingClientRect()
 
   const absoluteAnchor = document.createElement('div')
   absoluteAnchor.className = 'jsoneditor-anchor'
   absoluteAnchor.style.position = 'absolute'
-  absoluteAnchor.style.left = (anchorRect.left - frameRect.left) + 'px'
-  absoluteAnchor.style.top = (anchorRect.top - frameRect.top) + 'px'
+  absoluteAnchor.style.left = (anchorRect.left - parentRect.left) + 'px'
+  absoluteAnchor.style.top = (anchorRect.top - parentRect.top) + 'px'
   absoluteAnchor.style.width = (anchorRect.width - 2) + 'px'
   absoluteAnchor.style.height = (anchorRect.height - 2) + 'px'
   absoluteAnchor.style.boxSizing = 'border-box'
diff --git a/src/js/treemode.js b/src/js/treemode.js
index 7cc4c8b..d8329dd 100644
--- a/src/js/treemode.js
+++ b/src/js/treemode.js
@@ -135,13 +135,12 @@ treemode._setOptions = function (options) {
         const pickerHeight = 300 // estimated height of the color picker
         const top = parent.getBoundingClientRect().top
         const windowHeight = window.innerHeight
+        const showOnTop = ((windowHeight - top) < pickerHeight && top > pickerHeight)
 
         new VanillaPicker({
           parent: parent,
           color: color,
-          popup: ((windowHeight - top) < pickerHeight && top > pickerHeight)
-            ? 'top'
-            : 'bottom',
+          popup: showOnTop ? 'top' : 'bottom',
           onDone: function (color) {
             const alpha = color.rgba[3]
             const hex = (alpha === 1)
@@ -1063,7 +1062,7 @@ treemode._createFrame = function () {
     this.navBar.className = 'jsoneditor-navigation-bar nav-bar-empty'
     this.frame.appendChild(this.navBar)
 
-    this.treePath = new TreePath(this.navBar, this.frame)
+    this.treePath = new TreePath(this.navBar, this.getPopupAnchor())
     this.treePath.onSectionSelected(this._onTreePathSectionSelected.bind(this))
     this.treePath.onContextMenuItemSelected(this._onTreePathMenuItemSelected.bind(this))
   }
@@ -1681,7 +1680,11 @@ treemode.showContextMenu = function (anchor, onClose) {
   }
 
   const menu = new ContextMenu(items, { close: onClose })
-  menu.show(anchor, this.frame)
+  menu.show(anchor, this.getPopupAnchor())
+}
+
+treemode.getPopupAnchor = function () {
+  return this.options.popupAnchor || this.frame
 }
 
 /**
diff --git a/test/test_tooltip_anchor.html b/test/test_tooltip_anchor.html
new file mode 100644
index 0000000..08cfd74
--- /dev/null
+++ b/test/test_tooltip_anchor.html
@@ -0,0 +1,146 @@
+<!DOCTYPE HTML>
+<html>
+<head>
+  <title>JSONEditor | JSON schema validation</title>
+
+  <link href="../dist/jsoneditor.css" rel="stylesheet" type="text/css">
+  <script src="../dist/jsoneditor.js"></script>
+
+  <style type="text/css">
+    body {
+      width: 600px;
+      font: 11pt sans-serif;
+    }
+
+    #anchor {
+      position: relative;
+    }
+
+    #jsoneditor {
+      width: 320px;
+      height: 300px;
+      position: relative;
+      overflow: hidden;
+    }
+
+    /* custom bold styling for non-default JSON schema values */
+    .jsoneditor-is-not-default {
+      font-weight: bold;
+    }
+  </style>
+</head>
+<body>
+<h1>Test custom tooltip anchor</h1>
+<p>
+  The JSON Schema error tooltips and the color picker should have correct placing and overflow the editor, also in combination with scrolling.
+</p>
+
+<div id="anchor">
+  <div id="jsoneditor"></div>
+</div>
+<div style="height: 2000px"></div>
+
+<script>
+  const schema = {
+    "title": "Employee",
+    "description": "Object containing employee details",
+    "type": "object",
+    "properties": {
+      "firstName": {
+        "title": "First Name",
+        "description": "The given name.",
+        "examples": [
+          "John"
+        ],
+        "type": "string"
+      },
+      "lastName": {
+        "title": "Last Name",
+        "description": "The family name.",
+        "examples": [
+          "Smith"
+        ],
+        "type": "string"
+      },
+      "gender": {
+        "title": "Gender",
+        "enum": ["male", "female"]
+      },
+      "availableToHire": {
+        "type": "boolean",
+        "default": false
+      },
+      "age": {
+        "description": "Age in years",
+        "type": "integer",
+        "minimum": 0,
+        "examples": [28, 32]
+      },
+      "job": {
+        "$ref": "job"
+      }
+    },
+    "required": ["firstName", "lastName"]
+  }
+
+  const job = {
+    "title": "Job description",
+    "type": "object",
+    "required": ["address"],
+    "properties": {
+      "company": {
+        "type": "string",
+        "examples": [
+          "ACME",
+          "Dexter Industries"
+        ]
+      },
+      "role": {
+        "description": "Job title.",
+        "type": "string",
+        "examples": [
+          "Human Resources Coordinator",
+          "Software Developer"
+        ],
+        "default": "Software Developer"
+      },
+      "address": {
+        "type": "string"
+      },
+      "salary": {
+        "type": "number",
+        "minimum": 120,
+        "examples": [100, 110, 120]
+      }
+    }
+  }
+
+  const json = {
+    firstName: 'John',
+    lastName: 'Doe',
+    gender: null,
+    age: "28",
+    availableToHire: true,
+    favoriteColor: 'red',
+    job: {
+      company: 'freelance',
+      role: 'developer',
+      salary: 100
+    }
+  }
+
+  const options = {
+    schema: schema,
+    schemaRefs: {"job": job},
+    mode: 'tree',
+    modes: ['code', 'text', 'tree', 'preview'],
+    popupAnchor: document.getElementById('anchor')
+  }
+
+  // create the editor
+  const container = document.getElementById('jsoneditor')
+  const editor = new JSONEditor(container, options, json)
+  editor.expandAll()
+</script>
+</body>
+</html>