diff --git a/cypress/component/SubmenuPlacement.spec.tsx b/cypress/component/SubmenuPlacement.spec.tsx
new file mode 100644
index 0000000000..96e8852dac
--- /dev/null
+++ b/cypress/component/SubmenuPlacement.spec.tsx
@@ -0,0 +1,144 @@
+import {ScrollableSubmenu} from '../../modules/react/menu/stories/examples/ScrollableSubmenu';
+
+describe('Submenu placement', () => {
+  (['ltr', 'rtl'] as const).forEach(dir => {
+    [false, true].forEach(atEnd => {
+      const side = (dir === 'ltr') !== atEnd ? 'right' : 'left';
+
+      context(`given a scrollable ${dir} menu at the ${atEnd ? 'end' : 'start'} edge`, () => {
+        beforeEach(() => {
+          cy.mount(<ScrollableSubmenu dir={dir} atEnd={atEnd} />);
+          cy.document().then(document => {
+            const style = document.createElement('style');
+            style.id = 'submenu-scrollbar-test';
+            style.textContent = `
+              [data-testid="scrollable-menu"] [data-part="list-box-container"] {
+                scrollbar-gutter: stable both-edges;
+              }
+              [data-testid="scrollable-menu"] [data-part="list-box-container"]::-webkit-scrollbar {
+                width: 16px;
+              }
+            `;
+            document.head.appendChild(style);
+          });
+          cy.findByRole('button', {name: 'Open Menu'}).click();
+          cy.findByRole('menuitem', {name: 'More Items'}).realHover();
+          cy.findByTestId('submenu').should('be.visible');
+        });
+
+        afterEach(() => {
+          cy.document().then(document =>
+            document.getElementById('submenu-scrollbar-test')?.remove()
+          );
+        });
+
+        it('should pass axe checks', () => {
+          cy.checkA11y();
+        });
+
+        it(`should open beside the parent on the ${side}`, () => {
+          cy.findByTestId('submenu')
+            .closest('[data-popper-placement]')
+            .should('have.attr', 'data-popper-placement', `${side}-start`);
+        });
+
+        context('when the parent menu is scrolled', () => {
+          beforeEach(() => {
+            cy.findByTestId('scrollable-menu')
+              .find('[data-part="list-box-container"]')
+              .scrollTo(0, 280);
+            cy.findByTestId('submenu')
+              .closest('[data-popper-placement]')
+              .should('have.attr', 'data-popper-reference-hidden');
+          });
+
+          it('should remain beside the parent without covering it', () => {
+            cy.findByTestId('scrollable-menu').then($parent => {
+              const parent = $parent[0].getBoundingClientRect();
+              cy.findByTestId('submenu').should($submenu => {
+                const submenu = $submenu[0].getBoundingClientRect();
+                if (side === 'right') {
+                  expect(submenu.left).to.be.at.least(parent.right);
+                } else {
+                  expect(submenu.right).to.be.at.most(parent.left);
+                }
+              });
+            });
+          });
+        });
+      });
+    });
+  });
+
+  context('given an explicit submenu placement', () => {
+    beforeEach(() => {
+      cy.mount(
+        <ScrollableSubmenu
+          submenuPopperProps={{placement: 'bottom-start', fallbackPlacements: ['top-start']}}
+        />
+      );
+      cy.findByRole('button', {name: 'Open Menu'}).click();
+      cy.findByRole('menuitem', {name: 'More Items'}).realHover();
+      cy.findByTestId('submenu').should('be.visible');
+    });
+
+    it('should preserve the custom placement', () => {
+      cy.findByTestId('submenu')
+        .closest('[data-popper-placement]')
+        .should('have.attr', 'data-popper-placement', 'bottom-start');
+    });
+
+    it('should pass axe checks', () => {
+      cy.checkA11y();
+    });
+  });
+
+  context('given an empty fallback list at the right edge', () => {
+    beforeEach(() => {
+      cy.mount(<ScrollableSubmenu atEnd submenuPopperProps={{fallbackPlacements: []}} />);
+      cy.findByRole('button', {name: 'Open Menu'}).click();
+      cy.findByRole('menuitem', {name: 'More Items'}).realHover();
+      cy.findByTestId('submenu').should('be.visible');
+    });
+
+    it('should still allow the opposite placement', () => {
+      cy.findByTestId('submenu')
+        .closest('[data-popper-placement]')
+        .should('have.attr', 'data-popper-placement', 'left-start');
+    });
+
+    it('should pass axe checks', () => {
+      cy.checkA11y();
+    });
+  });
+
+  context('given custom Popper options', () => {
+    beforeEach(() => {
+      cy.mount(
+        <ScrollableSubmenu
+          submenuPopperProps={{
+            popperOptions: {modifiers: [{name: 'offset', options: {offset: [0, 24]}}]},
+          }}
+        />
+      );
+      cy.findByRole('button', {name: 'Open Menu'}).click();
+      cy.findByRole('menuitem', {name: 'More Items'}).realHover();
+      cy.findByTestId('submenu').should('be.visible');
+    });
+
+    it('should preserve the custom offset', () => {
+      cy.findByRole('menuitem', {name: 'More Items'}).then($target => {
+        const target = $target[0].getBoundingClientRect();
+        cy.findByTestId('submenu')
+          .closest('[data-popper-placement]')
+          .should($popper => {
+            expect($popper[0].getBoundingClientRect().left).to.be.closeTo(target.right + 24, 1);
+          });
+      });
+    });
+
+    it('should pass axe checks', () => {
+      cy.checkA11y();
+    });
+  });
+});
diff --git a/modules/react/menu/lib/Submenu.tsx b/modules/react/menu/lib/Submenu.tsx
index d2038dfdf5..16b9204dd5 100644
--- a/modules/react/menu/lib/Submenu.tsx
+++ b/modules/react/menu/lib/Submenu.tsx
@@ -14,7 +14,7 @@ import {
   subModelHook,
   useForkRef,
 } from '@workday/canvas-kit-react/common';
-import {Popper} from '@workday/canvas-kit-react/popup';
+import {Placement, Popper} from '@workday/canvas-kit-react/popup';
 import {chevronRightSmallIcon} from '@workday/canvas-system-icons-web';
 
 import {MenuCard} from './MenuCard';
@@ -40,13 +40,62 @@ export interface SubmenuProps
 export const SubmenuPopper = createSubcomponent('div')({
   modelHook: useMenuModel,
   elemPropsHook: useMenuPopper,
-})<ExtractProps<typeof Popper>>(({children, ...elemProps}) => {
-  return (
-    <Popper placement="right-start" popperOptions={defaultMenuPopperOptions} {...elemProps}>
-      {children}
-    </Popper>
-  );
-});
+})<ExtractProps<typeof Popper>>(
+  ({children, fallbackPlacements, popperOptions, ...elemProps}, Element, model) => {
+    const parentContainerRef = model.UNSTABLE_parentModel?.state.containerRef;
+    const targetRef = model.state.targetRef;
+    const submenuPopperOptions = React.useMemo(
+      () => ({
+        ...popperOptions,
+        modifiers: [
+          // Keep the default submenu beside its parent when scrolling clips the target vertically.
+          // Explicit fallback placements retain the caller's existing positioning behavior.
+          ...(fallbackPlacements === undefined
+            ? [
+                {name: 'fallbackModifier', enabled: false},
+                {name: 'flip', options: {altAxis: false, flipVariations: false}},
+              ]
+            : []),
+          ...(popperOptions?.modifiers ?? [
+            {
+              name: 'offset',
+              options: {
+                offset: ({placement}: {placement: Placement}) => {
+                  const [skidding, distance] =
+                    defaultMenuPopperOptions.modifiers[0].options.offset();
+                  const parent = parentContainerRef?.current?.getBoundingClientRect();
+                  const target = targetRef.current?.getBoundingClientRect();
+                  // Scrollbar gutters narrow the target without narrowing the parent menu.
+                  const gutter =
+                    parent && target
+                      ? placement.startsWith('right')
+                        ? parent.right - target.right
+                        : placement.startsWith('left')
+                          ? target.left - parent.left
+                          : 0
+                      : 0;
+                  return [skidding, distance + Math.max(0, gutter)];
+                },
+              },
+            },
+          ]),
+        ],
+      }),
+      [fallbackPlacements, popperOptions, parentContainerRef, targetRef]
+    );
+
+    return (
+      <Popper
+        placement="right-start"
+        fallbackPlacements={fallbackPlacements}
+        popperOptions={submenuPopperOptions}
+        {...elemProps}
+      >
+        {children}
+      </Popper>
+    );
+  }
+);
 
 const useIntentTimer = (fn: Function, waitMs: number = 0): {start(): void; clear(): void} => {
   const timer = React.useRef<number | undefined>(undefined);
diff --git a/modules/react/menu/stories/Menu.stories.ts b/modules/react/menu/stories/Menu.stories.ts
index 8d565371f6..34916a6a07 100644
--- a/modules/react/menu/stories/Menu.stories.ts
+++ b/modules/react/menu/stories/Menu.stories.ts
@@ -11,6 +11,7 @@ import {Icons as IconsExample} from './examples/Icons';
 import {Nested as NestedExample} from './examples/Nested';
 import {NestedDynamic as NestedDynamicExample} from './examples/NestedDynamic';
 import {NestedSiblings as NestedSiblingsExample} from './examples/NestedSiblings';
+import {ScrollableSubmenu as ScrollableSubmenuExample} from './examples/ScrollableSubmenu';
 import {SelectableMenu as SelectableMenuExample} from './examples/SelectableMenu';
 
 export default {
@@ -50,6 +51,9 @@ export const NestedDynamic: Story = {
 export const NestedSiblings: Story = {
   render: NestedSiblingsExample,
 };
+export const ScrollableSubmenu: StoryObj<typeof ScrollableSubmenuExample> = {
+  render: ScrollableSubmenuExample,
+};
 export const Alt: Story = {
   render: AltExample,
 };
diff --git a/modules/react/menu/stories/examples/ScrollableSubmenu.tsx b/modules/react/menu/stories/examples/ScrollableSubmenu.tsx
new file mode 100644
index 0000000000..29086093d1
--- /dev/null
+++ b/modules/react/menu/stories/examples/ScrollableSubmenu.tsx
@@ -0,0 +1,57 @@
+import {CanvasProvider} from '@workday/canvas-kit-react/common';
+import {Menu, menuCardStencil} from '@workday/canvas-kit-react/menu';
+import {PopperProps} from '@workday/canvas-kit-react/popup';
+import {createStencil, createStyles, handleCsProp, px2rem} from '@workday/canvas-kit-styling';
+
+const containerStencil = createStencil({
+  base: {display: 'flex'},
+  modifiers: {atEnd: {true: {justifyContent: 'flex-end'}}},
+});
+
+// A fixed height makes the parent list scroll independently of the page.
+const cardStyles = createStyles({[menuCardStencil.vars.maxHeight]: px2rem(280)});
+
+export const ScrollableSubmenu = ({
+  dir = 'ltr',
+  atEnd = false,
+  submenuPopperProps,
+}: {
+  dir?: 'ltr' | 'rtl';
+  atEnd?: boolean;
+  submenuPopperProps?: Pick<PopperProps, 'placement' | 'fallbackPlacements' | 'popperOptions'>;
+}) => (
+  <CanvasProvider dir={dir}>
+    <div {...handleCsProp({}, containerStencil({atEnd}))}>
+      <Menu>
+        <Menu.Target>Open Menu</Menu.Target>
+        <Menu.Popper>
+          <Menu.Card cs={cardStyles} data-testid="scrollable-menu">
+            <Menu.List>
+              <Menu.Item data-id="first">First Item</Menu.Item>
+              <Menu.Item data-id="second">Second Item</Menu.Item>
+              <Menu.Submenu>
+                <Menu.Submenu.TargetItem data-id="submenu">More Items</Menu.Submenu.TargetItem>
+                <Menu.Submenu.Popper {...submenuPopperProps}>
+                  <Menu.Submenu.Card>
+                    <Menu.Submenu.List data-testid="submenu">
+                      {Array.from({length: 6}, (_, index) => (
+                        <Menu.Submenu.Item key={index} data-id={`sub-${index}`}>
+                          Additional Menu Item {index + 1}
+                        </Menu.Submenu.Item>
+                      ))}
+                    </Menu.Submenu.List>
+                  </Menu.Submenu.Card>
+                </Menu.Submenu.Popper>
+              </Menu.Submenu>
+              {Array.from({length: 15}, (_, index) => (
+                <Menu.Item key={index} data-id={`item-${index}`}>
+                  Item {index + 1}
+                </Menu.Item>
+              ))}
+            </Menu.List>
+          </Menu.Card>
+        </Menu.Popper>
+      </Menu>
+    </div>
+  </CanvasProvider>
+);