diff --git a/packages/react/__tests__/__snapshots__/PublicAPI-test.js.snap b/packages/react/__tests__/__snapshots__/PublicAPI-test.js.snap
index 57ad9ac6f903..dd260f938d5f 100644
--- a/packages/react/__tests__/__snapshots__/PublicAPI-test.js.snap
+++ b/packages/react/__tests__/__snapshots__/PublicAPI-test.js.snap
@@ -2824,6 +2824,9 @@ Map {
         "type": "string",
       },
       "ariaLabel": [Function],
+      "autoAlign": Object {
+        "type": "bool",
+      },
       "className": Object {
         "type": "string",
       },
diff --git a/packages/react/src/components/Dropdown/Dropdown-test.js b/packages/react/src/components/Dropdown/Dropdown-test.js
index bfe9a8a8560e..e1cf0c25e604 100644
--- a/packages/react/src/components/Dropdown/Dropdown-test.js
+++ b/packages/react/src/components/Dropdown/Dropdown-test.js
@@ -14,6 +14,7 @@ import {
   openMenu,
   generateItems,
   generateGenericItem,
+  waitForPosition,
 } from '../ListBox/test-helpers';
 import Dropdown from '../Dropdown';
 import DropdownSkeleton from '../Dropdown/Dropdown.Skeleton';
@@ -35,8 +36,9 @@ describe('Dropdown', () => {
     };
   });
 
-  it('should initially render with the menu not open', () => {
+  it('should initially render with the menu not open', async () => {
     render(<Dropdown {...mockProps} />);
+    await waitForPosition();
     assertMenuClosed();
   });
 
@@ -65,7 +67,7 @@ describe('Dropdown', () => {
     expect(itemToElement).toHaveBeenCalled();
   });
 
-  it('should render selectedItem as an element', () => {
+  it('should render selectedItem as an element', async () => {
     render(
       <Dropdown
         {...mockProps}
@@ -81,6 +83,7 @@ describe('Dropdown', () => {
         )}
       />
     );
+    await waitForPosition();
     // custom element should be rendered for the selected item
     expect(
       // eslint-disable-next-line testing-library/no-node-access
@@ -92,24 +95,27 @@ describe('Dropdown', () => {
   });
 
   describe('title', () => {
-    it('renders a title', () => {
+    it('renders a title', async () => {
       render(<Dropdown {...mockProps} titleText="Email Input" />);
+      await waitForPosition();
       expect(screen.getByText('Email Input')).toBeInTheDocument();
     });
 
-    it('has the expected classes', () => {
+    it('has the expected classes', async () => {
       render(<Dropdown {...mockProps} titleText="Email Input" />);
+      await waitForPosition();
       expect(screen.getByText('Email Input')).toHaveClass(`${prefix}--label`);
     });
   });
 
   describe('helper', () => {
-    it('renders a helper', () => {
+    it('renders a helper', async () => {
       render(<Dropdown helperText="Email Input" {...mockProps} />);
+      await waitForPosition();
       expect(screen.getByText('Email Input')).toBeInTheDocument();
     });
 
-    it('renders children as expected', () => {
+    it('renders children as expected', async () => {
       render(
         <Dropdown
           helperText={
@@ -120,6 +126,7 @@ describe('Dropdown', () => {
           {...mockProps}
         />
       );
+      await waitForPosition();
 
       expect(screen.getByRole('link')).toBeInTheDocument();
     });
@@ -128,7 +135,6 @@ describe('Dropdown', () => {
   it('should let the user select an option by clicking on the option node', async () => {
     render(<Dropdown {...mockProps} />);
     await openMenu();
-
     await userEvent.click(screen.getByText('Item 0'));
     expect(mockProps.onChange).toHaveBeenCalledTimes(1);
     expect(mockProps.onChange).toHaveBeenCalledWith({
@@ -161,15 +167,16 @@ describe('Dropdown', () => {
   });
 
   describe('should display initially selected item found in `initialSelectedItem`', () => {
-    it('using an object type for the `initialSelectedItem` prop', () => {
+    it('using an object type for the `initialSelectedItem` prop', async () => {
       render(
         <Dropdown {...mockProps} initialSelectedItem={mockProps.items[0]} />
       );
+      await waitForPosition();
 
       expect(screen.getByText(mockProps.items[0].label)).toBeInTheDocument();
     });
 
-    it('using a string type for the `initialSelectedItem` prop', () => {
+    it('using a string type for the `initialSelectedItem` prop', async () => {
       // Replace the 'items' property in mockProps with a list of strings
       mockProps = {
         ...mockProps,
@@ -179,20 +186,23 @@ describe('Dropdown', () => {
       render(
         <Dropdown {...mockProps} initialSelectedItem={mockProps.items[1]} />
       );
+      await waitForPosition();
 
       expect(screen.getByText(mockProps.items[1])).toBeInTheDocument();
     });
   });
 
   describe('Component API', () => {
-    it('should accept a `ref` for the underlying button element', () => {
+    it('should accept a `ref` for the underlying button element', async () => {
       const ref = React.createRef();
       render(<Dropdown {...mockProps} ref={ref} />);
+      await waitForPosition();
       expect(ref.current).toHaveAttribute('aria-haspopup', 'listbox');
     });
 
-    it('should respect slug prop', () => {
+    it('should respect slug prop', async () => {
       const { container } = render(<Dropdown {...mockProps} slug={<Slug />} />);
+      await waitForPosition();
       expect(container.firstChild).toHaveClass(
         `${prefix}--list-box__wrapper--slug`
       );
diff --git a/packages/react/src/components/Dropdown/Dropdown.stories.js b/packages/react/src/components/Dropdown/Dropdown.stories.js
index e0347e877b51..394916ab7799 100644
--- a/packages/react/src/components/Dropdown/Dropdown.stories.js
+++ b/packages/react/src/components/Dropdown/Dropdown.stories.js
@@ -69,6 +69,24 @@ const items = [
   },
 ];
 
+export const ExperimentalAutoAlign = () => (
+  <div style={{ width: 400 }}>
+    <div style={{ height: 300 }}></div>
+    <Dropdown
+      autoAlign={true}
+      id="default"
+      titleText="Dropdown label"
+      helperText="This is some helper text"
+      initialSelectedItem={items[1]}
+      label="Option 1"
+      items={items}
+      itemToString={(item) => (item ? item.text : '')}
+      direction="top"
+    />
+    <div style={{ height: 800 }}></div>
+  </div>
+);
+
 export const Playground = (args) => (
   <div style={{ width: 400 }}>
     <Dropdown
diff --git a/packages/react/src/components/Dropdown/Dropdown.tsx b/packages/react/src/components/Dropdown/Dropdown.tsx
index 35d90000a9fb..172db2034886 100644
--- a/packages/react/src/components/Dropdown/Dropdown.tsx
+++ b/packages/react/src/components/Dropdown/Dropdown.tsx
@@ -13,6 +13,7 @@ import React, {
   ForwardedRef,
   MouseEvent,
   ReactNode,
+  useEffect,
 } from 'react';
 import {
   useSelect,
@@ -40,6 +41,12 @@ import { usePrefix } from '../../internal/usePrefix';
 import { FormContext } from '../FluidForm';
 import { ReactAttr } from '../../types/common';
 import setupGetInstanceId from '../../tools/setupGetInstanceId';
+import {
+  useFloating,
+  flip,
+  autoUpdate,
+  size as floatingSize,
+} from '@floating-ui/react';
 
 const getInstanceId = setupGetInstanceId();
 
@@ -92,6 +99,11 @@ export interface DropdownProps<ItemType>
    */
   ariaLabel?: string;
 
+  /**
+   * **Experimental**: Will attempt to automatically align the floating element to avoid collisions with the viewport and being clipped by ancestor elements.
+   */
+  autoAlign?: boolean;
+
   /**
    * Specify the direction of the dropdown. Can be either top or bottom.
    */
@@ -238,6 +250,7 @@ export type DropdownTranslationKey = ListBoxMenuIconTranslationKey;
 const Dropdown = React.forwardRef(
   <ItemType,>(
     {
+      autoAlign = false,
       className: containerClassName,
       disabled = false,
       direction = 'bottom',
@@ -270,6 +283,43 @@ const Dropdown = React.forwardRef(
     }: DropdownProps<ItemType>,
     ref: ForwardedRef<HTMLButtonElement>
   ) => {
+    const { refs, floatingStyles } = useFloating(
+      autoAlign
+        ? {
+            placement: direction,
+
+            // The floating element is positioned relative to its nearest
+            // containing block (usually the viewport). It will in many cases also
+            // “break” the floating element out of a clipping ancestor.
+            // https://floating-ui.com/docs/misc#clipping
+            strategy: 'fixed',
+
+            // Middleware order matters, arrow should be last
+            middleware: [
+              floatingSize({
+                apply({ rects, elements }) {
+                  Object.assign(elements.floating.style, {
+                    width: `${rects.reference.width}px`,
+                  });
+                },
+              }),
+              flip(),
+            ],
+            whileElementsMounted: autoUpdate,
+          }
+        : {} // When autoAlign is turned off, floating-ui will not be used
+    );
+
+    useEffect(() => {
+      if (autoAlign) {
+        Object.keys(floatingStyles).forEach((style) => {
+          if (refs.floating.current) {
+            refs.floating.current.style[style] = floatingStyles[style];
+          }
+        });
+      }
+    }, [floatingStyles, autoAlign, refs.floating]);
+
     const prefix = usePrefix();
     const { isFluid } = useContext(FormContext);
 
@@ -340,6 +390,7 @@ const Dropdown = React.forwardRef(
       [`${prefix}--dropdown--readonly`]: readOnly,
       [`${prefix}--dropdown--${size}`]: size,
       [`${prefix}--list-box--up`]: direction === 'top',
+      [`${prefix}--dropdown--autoalign`]: autoAlign,
     });
 
     const titleClasses = cx(`${prefix}--label`, {
@@ -447,6 +498,7 @@ const Dropdown = React.forwardRef(
         };
 
     const menuProps = getMenuProps();
+    const menuRef = mergeRefs(menuProps.ref, refs.setFloating);
 
     // Slug is always size `mini`
     let normalizedSlug;
@@ -475,6 +527,7 @@ const Dropdown = React.forwardRef(
           warnText={warnText}
           light={light}
           isOpen={isOpen}
+          ref={refs.setReference}
           id={id}>
           {invalid && (
             <WarningFilled className={`${prefix}--list-box__invalid-icon`} />
@@ -514,7 +567,7 @@ const Dropdown = React.forwardRef(
             />
           </button>
           {normalizedSlug}
-          <ListBox.Menu {...menuProps}>
+          <ListBox.Menu {...menuProps} ref={menuRef}>
             {isOpen &&
               items.map((item, index) => {
                 const isObject = item !== null && typeof item === 'object';
@@ -592,6 +645,11 @@ Dropdown.propTypes = {
     'This prop syntax has been deprecated. Please use the new `aria-label`.'
   ),
 
+  /**
+   * **Experimental**: Will attempt to automatically align the floating element to avoid collisions with the viewport and being clipped by ancestor elements.
+   */
+  autoAlign: PropTypes.bool,
+
   /**
    * Provide a custom className to be applied on the cds--dropdown node
    */
diff --git a/packages/react/src/components/FluidDropdown/__tests__/FluidDropdown-test.js b/packages/react/src/components/FluidDropdown/__tests__/FluidDropdown-test.js
index 94998f0c8b3d..6edb4c8f2fb5 100644
--- a/packages/react/src/components/FluidDropdown/__tests__/FluidDropdown-test.js
+++ b/packages/react/src/components/FluidDropdown/__tests__/FluidDropdown-test.js
@@ -14,6 +14,7 @@ import {
   openMenu,
   generateItems,
   generateGenericItem,
+  waitForPosition,
 } from '../../ListBox/test-helpers';
 import FluidDropdown from '../FluidDropdown';
 
@@ -33,22 +34,25 @@ describe('FluidDropdown', () => {
     };
   });
 
-  it('should render with fluid classes', () => {
+  it('should render with fluid classes', async () => {
     const { container } = render(<FluidDropdown {...mockProps} />);
+    await waitForPosition();
     expect(container.firstChild).toHaveClass(
       `${prefix}--list-box__wrapper--fluid`
     );
   });
 
-  it('should render with condensed styles if isCondensed is provided', () => {
+  it('should render with condensed styles if isCondensed is provided', async () => {
     const { container } = render(<FluidDropdown isCondensed {...mockProps} />);
+    await waitForPosition();
     expect(container.firstChild).toHaveClass(
       `${prefix}--list-box__wrapper--fluid--condensed`
     );
   });
 
-  it('should initially render with the menu not open', () => {
+  it('should initially render with the menu not open', async () => {
     render(<FluidDropdown {...mockProps} />);
+    await waitForPosition();
     assertMenuClosed();
   });
 
@@ -77,7 +81,7 @@ describe('FluidDropdown', () => {
     expect(itemToElement).toHaveBeenCalled();
   });
 
-  it('should render selectedItem as an element', () => {
+  it('should render selectedItem as an element', async () => {
     render(
       <FluidDropdown
         {...mockProps}
@@ -93,6 +97,7 @@ describe('FluidDropdown', () => {
         )}
       />
     );
+    await waitForPosition();
     // custom element should be rendered for the selected item
     expect(
       // eslint-disable-next-line testing-library/no-node-access
@@ -104,13 +109,15 @@ describe('FluidDropdown', () => {
   });
 
   describe('title', () => {
-    it('renders a title', () => {
+    it('renders a title', async () => {
       render(<FluidDropdown {...mockProps} titleText="Email Input" />);
+      await waitForPosition();
       expect(screen.getByText('Email Input')).toBeInTheDocument();
     });
 
-    it('has the expected classes', () => {
+    it('has the expected classes', async () => {
       render(<FluidDropdown {...mockProps} titleText="Email Input" />);
+      await waitForPosition();
       expect(screen.getByText('Email Input')).toHaveClass(`${prefix}--label`);
     });
   });
@@ -138,18 +145,19 @@ describe('FluidDropdown', () => {
   });
 
   describe('should display initially selected item found in `initialSelectedItem`', () => {
-    it('using an object type for the `initialSelectedItem` prop', () => {
+    it('using an object type for the `initialSelectedItem` prop', async () => {
       render(
         <FluidDropdown
           {...mockProps}
           initialSelectedItem={mockProps.items[0]}
         />
       );
+      await waitForPosition();
 
       expect(screen.getByText(mockProps.items[0].label)).toBeInTheDocument();
     });
 
-    it('using a string type for the `initialSelectedItem` prop', () => {
+    it('using a string type for the `initialSelectedItem` prop', async () => {
       // Replace the 'items' property in mockProps with a list of strings
       mockProps = {
         ...mockProps,
@@ -162,15 +170,17 @@ describe('FluidDropdown', () => {
           initialSelectedItem={mockProps.items[1]}
         />
       );
+      await waitForPosition();
 
       expect(screen.getByText(mockProps.items[1])).toBeInTheDocument();
     });
   });
 
   describe('Component API', () => {
-    it('should accept a `ref` for the underlying button element', () => {
+    it('should accept a `ref` for the underlying button element', async () => {
       const ref = React.createRef();
       render(<FluidDropdown {...mockProps} ref={ref} />);
+      await waitForPosition();
       expect(ref.current).toHaveAttribute('aria-haspopup', 'listbox');
     });
   });