diff --git a/app/javascript/controllers/components/async_search_dropdown_controller.js b/app/javascript/controllers/components/async_search_dropdown_controller.js
index 82d1abfe..68389ea9 100644
--- a/app/javascript/controllers/components/async_search_dropdown_controller.js
+++ b/app/javascript/controllers/components/async_search_dropdown_controller.js
@@ -1,4 +1,5 @@
 import { Controller } from "@hotwired/stimulus"
+import { computePosition, autoUpdate, flip, shift, offset, size } from "@floating-ui/dom"
 import { debounce } from "../../utils"
 
 /**
@@ -26,9 +27,9 @@ export default class extends Controller {
     // Disable browser autocomplete
     this.input.setAttribute('autocomplete', 'off')
 
-    // Create dropdown
+    // Create dropdown and append to the appropriate container
     this.dropdown = this.createDropdown()
-    this.element.appendChild(this.dropdown)
+    this.getDropdownContainer().appendChild(this.dropdown)
 
     // Bind search handler with debounce
     this.searchHandler = debounce(this.performSearch.bind(this), this.getDebounceDelay())
@@ -37,6 +38,8 @@ export default class extends Controller {
     // Handle click outside to close dropdown
     this.clickOutsideHandler = this.handleClickOutside.bind(this)
     document.addEventListener('click', this.clickOutsideHandler)
+
+    this.cleanupAutoUpdate = null
   }
 
   disconnect() {
@@ -44,14 +47,52 @@ export default class extends Controller {
       this.input.removeEventListener('input', this.searchHandler)
     }
     document.removeEventListener('click', this.clickOutsideHandler)
+    if (this.cleanupAutoUpdate) {
+      this.cleanupAutoUpdate()
+    }
+    if (this.dropdown && this.dropdown.parentNode) {
+      this.dropdown.parentNode.removeChild(this.dropdown)
+    }
   }
 
   createDropdown() {
     const dropdown = document.createElement('ul')
-    dropdown.className = 'hidden absolute z-10 w-full mt-1 menu bg-neutral block rounded-box shadow-lg max-h-[300px] overflow-y-auto'
+    dropdown.className = 'hidden z-50 menu bg-neutral rounded-box shadow-lg max-h-[300px] overflow-y-auto'
+    dropdown.style.position = 'absolute'
+    dropdown.style.top = '0'
+    dropdown.style.left = '0'
     return dropdown
   }
 
+  getDropdownContainer() {
+    // Check if we're inside a modal and append there to maintain stacking context
+    const modal = this.element.closest('.modal, [role="dialog"], dialog')
+    return modal || document.body
+  }
+
+  updatePosition() {
+    computePosition(this.input, this.dropdown, {
+      placement: 'bottom-start',
+      middleware: [
+        offset(4),
+        flip({ fallbackPlacements: ['top-start'] }),
+        shift({ padding: 8 }),
+        size({
+          apply({ rects, elements }) {
+            Object.assign(elements.floating.style, {
+              minWidth: `${rects.reference.width}px`
+            })
+          }
+        })
+      ]
+    }).then(({ x, y }) => {
+      Object.assign(this.dropdown.style, {
+        left: `${x}px`,
+        top: `${y}px`
+      })
+    })
+  }
+
   getInputElement() {
     return this.element.querySelector('input')
   }
@@ -121,11 +162,26 @@ export default class extends Controller {
 
   showDropdown() {
     this.dropdown.classList.remove('hidden')
+    this.updatePosition()
+
+    // Set up auto-update to keep position in sync during scroll/resize
+    if (this.cleanupAutoUpdate) {
+      this.cleanupAutoUpdate()
+    }
+    this.cleanupAutoUpdate = autoUpdate(this.input, this.dropdown, () => {
+      this.updatePosition()
+    })
   }
 
   hideDropdown() {
     this.dropdown.classList.add('hidden')
     this.dropdown.innerHTML = ''
+
+    // Clean up auto-update listener
+    if (this.cleanupAutoUpdate) {
+      this.cleanupAutoUpdate()
+      this.cleanupAutoUpdate = null
+    }
   }
 
   showLoading() {
@@ -157,7 +213,7 @@ export default class extends Controller {
   }
 
   handleClickOutside(event) {
-    if (!this.element.contains(event.target)) {
+    if (!this.element.contains(event.target) && !this.dropdown.contains(event.target)) {
       this.hideDropdown()
     }
   }
diff --git a/package.json b/package.json
index 779aed7a..2c38b23d 100644
--- a/package.json
+++ b/package.json
@@ -13,6 +13,7 @@
     "@codemirror/state": "^6.5.2",
     "@codemirror/theme-one-dark": "^6.1.3",
     "@codemirror/view": "^6.38.1",
+    "@floating-ui/dom": "^1.7.4",
     "@gorails/ninja-keys": "^1.2.1",
     "@hotwired/stimulus": "^3.2.2",
     "@hotwired/turbo-rails": "^8.0.20",
diff --git a/yarn.lock b/yarn.lock
index 8df07aee..dad22462 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -217,6 +217,26 @@
   resolved "https://registry.yarnpkg.com/@esbuild/win32-x64/-/win32-x64-0.24.0.tgz#168ab1c7e1c318b922637fad8f339d48b01e1244"
   integrity sha512-7IAFPrjSQIJrGsK6flwg7NFmwBoSTyF3rl7If0hNUFQU4ilTsEPL6GuMuU9BfIWVVGuRnuIidkSMC+c0Otu8IA==
 
+"@floating-ui/core@^1.7.3":
+  version "1.7.3"
+  resolved "https://registry.yarnpkg.com/@floating-ui/core/-/core-1.7.3.tgz#462d722f001e23e46d86fd2bd0d21b7693ccb8b7"
+  integrity sha512-sGnvb5dmrJaKEZ+LDIpguvdX3bDlEllmv4/ClQ9awcmCZrlx5jQyyMWFM5kBI+EyNOCDDiKk8il0zeuX3Zlg/w==
+  dependencies:
+    "@floating-ui/utils" "^0.2.10"
+
+"@floating-ui/dom@^1.7.4":
+  version "1.7.4"
+  resolved "https://registry.yarnpkg.com/@floating-ui/dom/-/dom-1.7.4.tgz#ee667549998745c9c3e3e84683b909c31d6c9a77"
+  integrity sha512-OOchDgh4F2CchOX94cRVqhvy7b3AFb+/rQXyswmzmGakRfkMgoWVjfnLWkRirfLEfuD4ysVW16eXzwt3jHIzKA==
+  dependencies:
+    "@floating-ui/core" "^1.7.3"
+    "@floating-ui/utils" "^0.2.10"
+
+"@floating-ui/utils@^0.2.10":
+  version "0.2.10"
+  resolved "https://registry.yarnpkg.com/@floating-ui/utils/-/utils-0.2.10.tgz#a2a1e3812d14525f725d011a73eceb41fef5bc1c"
+  integrity sha512-aGTxbpbg8/b5JfU1HXSrbH3wXZuLPJcNEcZQFMxLs3oSzgtVu6nFPkbbGGUvBcUjKV2YyB9Wxxabo+HEH9tcRQ==
+
 "@gorails/ninja-keys@^1.2.1":
   version "1.2.1"
   resolved "https://registry.npmjs.org/@gorails/ninja-keys/-/ninja-keys-1.2.1.tgz"