diff --git a/CHANGELOG.md b/CHANGELOG.md
index 8b07abae..47e0ac4d 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,9 @@
 ### Changed
 - Improved syntax highlighting for f-strings, operators and numeric literals.
 
+### Fixed
+- Fixed clipping of code completion popup by terminal.
+
 ## [2.1.0-beta.2] - 2022-12-26
 
 ### Changed
diff --git a/src/app/app.scss b/src/app/app.scss
index 0372b916..5bb272b6 100644
--- a/src/app/app.scss
+++ b/src/app/app.scss
@@ -167,8 +167,10 @@ $dark-splitter-color-hover: color.adjust(
     }
 }
 
-.splitter-layout .layout-pane {
-    overflow: hidden;
+// we want overflow visible for editor overlays but it breaks resizing
+// so we can only apply this when not resizing
+.splitter-layout:not(.layout-changing) > .layout-pane {
+    overflow: visible;
 }
 
 // hide the docs and resize separator