diff --git a/public/app/core/components/NavBar/Next/NavBarItemMenu.tsx b/public/app/core/components/NavBar/Next/NavBarItemMenu.tsx
index 9b9695a8f97..6b902ea6f03 100644
--- a/public/app/core/components/NavBar/Next/NavBarItemMenu.tsx
+++ b/public/app/core/components/NavBar/Next/NavBarItemMenu.tsx
@@ -78,14 +78,11 @@ function getStyles(theme: GrafanaTheme2, reverseDirection?: boolean) {
     menu: css`
       background-color: ${theme.colors.background.primary};
       border: 1px solid ${theme.components.panel.borderColor};
-      bottom: ${reverseDirection ? 0 : 'auto'};
       box-shadow: ${theme.shadows.z3};
       display: flex;
       flex-direction: column;
-      left: 100%;
       list-style: none;
       min-width: 140px;
-      top: ${reverseDirection ? 'auto' : 0};
       transition: ${theme.transitions.create('opacity')};
       z-index: ${theme.zIndex.sidemenu};
     `,
diff --git a/public/app/core/components/NavBar/Next/NavBarItemMenuTrigger.tsx b/public/app/core/components/NavBar/Next/NavBarItemMenuTrigger.tsx
index 1d2e94978e5..30e44e6d463 100644
--- a/public/app/core/components/NavBar/Next/NavBarItemMenuTrigger.tsx
+++ b/public/app/core/components/NavBar/Next/NavBarItemMenuTrigger.tsx
@@ -1,6 +1,6 @@
 import React, { ReactElement, useEffect, useState } from 'react';
 import { css, cx } from '@emotion/css';
-import { getPortalContainer, Icon, IconName, Link, useTheme2 } from '@grafana/ui';
+import { Icon, IconName, Link, useTheme2 } from '@grafana/ui';
 import { GrafanaTheme2, NavModelItem } from '@grafana/data';
 import { MenuTriggerProps } from '@react-types/menu';
 import { useMenuTriggerState } from '@react-stately/menu';
@@ -14,6 +14,7 @@ import { FocusScope } from '@react-aria/focus';
 import { NavBarItemMenuContext, useNavBarContext } from '../context';
 import { NavFeatureHighlight } from '../NavFeatureHighlight';
 import { reportExperimentView } from '@grafana/runtime';
+import { getNavMenuPortalContainer } from './NavBarMenuPortalContainer';
 
 export interface NavBarItemMenuTriggerProps extends MenuTriggerProps {
   children: ReactElement;
@@ -185,7 +186,7 @@ export function NavBarItemMenuTrigger(props: NavBarItemMenuTriggerProps): ReactE
     <div className={cx(styles.element, 'dropdown')} {...focusWithinProps}>
       {element}
       {state.isOpen && (
-        <OverlayContainer portalContainer={getPortalContainer()}>
+        <OverlayContainer portalContainer={getNavMenuPortalContainer()}>
           <NavBarItemMenuContext.Provider
             value={{
               menuProps,
diff --git a/public/app/core/components/NavBar/Next/NavBarMenuItem.tsx b/public/app/core/components/NavBar/Next/NavBarMenuItem.tsx
index 60caa5c074f..4b63b03fb49 100644
--- a/public/app/core/components/NavBar/Next/NavBarMenuItem.tsx
+++ b/public/app/core/components/NavBar/Next/NavBarMenuItem.tsx
@@ -99,6 +99,7 @@ const getStyles = (theme: GrafanaTheme2, isActive: Props['isActive'], hasIcon: b
     overflowWrap: 'anywhere',
     padding: !hasIcon ? `${theme.spacing(0.5, 2)}` : '5px 12px 5px 10px',
     textAlign: 'left',
+    width: '100%',
     '&:hover, &:focus-visible': {
       backgroundColor: theme.colors.action.hover,
       color: theme.colors.text.primary,
diff --git a/public/app/core/components/NavBar/Next/NavBarMenuPortalContainer.tsx b/public/app/core/components/NavBar/Next/NavBarMenuPortalContainer.tsx
new file mode 100644
index 00000000000..7597f8f78b4
--- /dev/null
+++ b/public/app/core/components/NavBar/Next/NavBarMenuPortalContainer.tsx
@@ -0,0 +1,26 @@
+import React from 'react';
+import { css } from '@emotion/css';
+import { GrafanaTheme2 } from '@grafana/data';
+import { useTheme2 } from '@grafana/ui';
+
+const NAV_MENU_PORTAL_CONTAINER_ID = 'navbar-menu-portal-container';
+
+export const getNavMenuPortalContainer = () => document.getElementById(NAV_MENU_PORTAL_CONTAINER_ID) ?? document.body;
+
+export const NavBarMenuPortalContainer = () => {
+  const theme = useTheme2();
+  const styles = getStyles(theme);
+  return <div className={styles.menuPortalContainer} id={NAV_MENU_PORTAL_CONTAINER_ID} />;
+};
+
+NavBarMenuPortalContainer.displayName = 'NavBarMenuPortalContainer';
+
+const getStyles = (theme: GrafanaTheme2) => ({
+  menuPortalContainer: css({
+    left: 0,
+    position: 'fixed',
+    right: 0,
+    top: 0,
+    zIndex: theme.zIndex.sidemenu,
+  }),
+});
diff --git a/public/app/core/components/NavBar/Next/NavBarNext.tsx b/public/app/core/components/NavBar/Next/NavBarNext.tsx
index a2a07fbac5e..0612dc02d13 100644
--- a/public/app/core/components/NavBar/Next/NavBarNext.tsx
+++ b/public/app/core/components/NavBar/Next/NavBarNext.tsx
@@ -16,6 +16,7 @@ import { NavBarItemWithoutMenu } from './NavBarItemWithoutMenu';
 import { FocusScope } from '@react-aria/focus';
 import { NavBarContext } from '../context';
 import { NavBarToggle } from './NavBarToggle';
+import { NavBarMenuPortalContainer } from './NavBarMenuPortalContainer';
 
 const onOpenSearch = () => {
   locationService.partial({ search: 'open' });
@@ -85,6 +86,8 @@ export const NavBarNext = React.memo(() => {
               onClick={() => setMenuOpen(!menuOpen)}
             />
 
+            <NavBarMenuPortalContainer />
+
             <ul className={styles.itemList}>
               <NavBarItemWithoutMenu
                 isActive={isMatchOrChildMatch(homeItem, activeItem)}
diff --git a/public/app/core/components/NavBar/Next/NavBarToggle.tsx b/public/app/core/components/NavBar/Next/NavBarToggle.tsx
index 617958cc046..3d923604257 100644
--- a/public/app/core/components/NavBar/Next/NavBarToggle.tsx
+++ b/public/app/core/components/NavBar/Next/NavBarToggle.tsx
@@ -33,7 +33,7 @@ const getStyles = (theme: GrafanaTheme2) => ({
     border: `1px solid ${theme.colors.border.weak}`,
     borderRadius: '50%',
     marginRight: 0,
-    zIndex: theme.zIndex.sidemenu,
+    zIndex: theme.zIndex.sidemenu + 1,
 
     [theme.breakpoints.down('md')]: {
       display: 'none',
diff --git a/public/app/features/variables/inspect/VariablesUnknownTable.test.tsx b/public/app/features/variables/inspect/VariablesUnknownTable.test.tsx
index bb0cad35a6e..231bc03134c 100644
--- a/public/app/features/variables/inspect/VariablesUnknownTable.test.tsx
+++ b/public/app/features/variables/inspect/VariablesUnknownTable.test.tsx
@@ -115,10 +115,9 @@ describe('VariablesUnknownTable', () => {
           await userEvent.click(screen.getByRole('heading', { name: /renamed or missing variables/i }));
 
           // make sure we report the interaction for slow expansion
-          await waitFor(() => expect(reportInteractionSpy).toHaveBeenCalledTimes(2));
-          expect(reportInteractionSpy.mock.calls[0][0]).toEqual('Unknown variables section expanded');
-          expect(reportInteractionSpy.mock.calls[1][0]).toEqual('Slow unknown variables expansion');
-          expect(reportInteractionSpy.mock.calls[1][1]).toEqual({ elapsed: 1000 });
+          await waitFor(() =>
+            expect(reportInteractionSpy).toHaveBeenCalledWith('Slow unknown variables expansion', { elapsed: 1000 })
+          );
         });
       });
     });