diff --git a/.changeset/tiny-bananas-beam.md b/.changeset/tiny-bananas-beam.md
new file mode 100644
index 0000000000..0cb528ad53
--- /dev/null
+++ b/.changeset/tiny-bananas-beam.md
@@ -0,0 +1,5 @@
+---
+'@commercetools-uikit/tooltip': patch
+---
+
+Prevents image clipping when Tooltip component is hovered.
diff --git a/packages/components/tooltip/src/tooltip.tsx b/packages/components/tooltip/src/tooltip.tsx
index 8494da7d89..ad7b8addb9 100644
--- a/packages/components/tooltip/src/tooltip.tsx
+++ b/packages/components/tooltip/src/tooltip.tsx
@@ -106,6 +106,12 @@ export type TTooltipProps = {
    * Provides a way to fine-tune an appearance of underlying Popper tooltip element. For more information, please check [Popper.js documentation](https://popper.js.org/popper-documentation.html#modifiers).
    */
   modifiers?: Modifiers;
+  /**
+   * Use CSS `position: fixed` for the popper element instead of `position: absolute`.
+   * Recommended when the tooltip body is rendered in a portal (e.g. via `TooltipWrapperComponent`)
+   * to prevent clipping caused by scrolled ancestors.
+   */
+  positionFixed?: boolean;
   /**
    * Customize the appearance of certain elements of the tooltip.
    */
@@ -185,6 +191,7 @@ const Tooltip = ({
   const { reference, popper, popperInstance } = usePopper({
     placement: placement,
     modifiers: props.modifiers,
+    positionFixed: props.positionFixed,
   });
   const [state, setState] = useState<TTooltipState>('closed');
 
@@ -373,6 +380,21 @@ const Tooltip = ({
     };
   }, [state, off, isControlled, popperInstance, handleLeave]);
 
+  // Recompute position when the tooltip body resizes (e.g. an image that loads
+  // after the initial position was calculated from a 0-height container).
+  useEffect(() => {
+    if (!tooltipIsOpen) return;
+    // eslint-disable-next-line @typescript-eslint/no-explicit-any
+    const inst = popperInstance as any;
+    const popperEl = inst?.popper as HTMLElement | null;
+    if (!popperEl) return;
+    const ro = new ResizeObserver(() => {
+      inst.scheduleUpdate?.();
+    });
+    ro.observe(popperEl);
+    return () => ro.disconnect();
+  }, [tooltipIsOpen, popperInstance]);
+
   const childrenProps = {
     // don't pass event listeners to children
     onFocus: null,
diff --git a/test/setup-tests.js b/test/setup-tests.js
index 16b80cb794..08256d0c75 100644
--- a/test/setup-tests.js
+++ b/test/setup-tests.js
@@ -29,6 +29,11 @@ Object.defineProperty(window, 'TextDecoder', {
   writable: true,
   value: TextDecoder,
 });
+global.ResizeObserver = class ResizeObserver {
+  observe() {}
+  unobserve() {}
+  disconnect() {}
+};
 
 const silenceConsoleWarnings = [];
 const notThrowWarnings = [