diff --git a/frontend/src/components/SourcesPopup.tsx b/frontend/src/components/SourcesPopup.tsx
index 0da27718..9f8ce8ce 100644
--- a/frontend/src/components/SourcesPopup.tsx
+++ b/frontend/src/components/SourcesPopup.tsx
@@ -1,4 +1,4 @@
-import React, { useRef, useEffect, useState } from 'react';
+import React, { useRef, useEffect, useState, useLayoutEffect } from 'react';
 import { useTranslation } from 'react-i18next';
 import { useDispatch, useSelector } from 'react-redux';
 import { Doc } from '../models/misc';
@@ -32,6 +32,7 @@ export default function SourcesPopup({
   const { t } = useTranslation();
   const popupRef = useRef<HTMLDivElement>(null);
   const [searchTerm, setSearchTerm] = useState('');
+  const [popupPosition, setPopupPosition] = useState({ top: 0, left: 0, maxHeight: 0, showAbove: false });
   
   const embeddingsName =
     import.meta.env.VITE_EMBEDDINGS_NAME ||
@@ -44,19 +45,36 @@ export default function SourcesPopup({
     option.name.toLowerCase().includes(searchTerm.toLowerCase())
   );
 
-  const getPopupPosition = () => {
-    if (!anchorRef.current) return {};
-
-    const rect = anchorRef.current.getBoundingClientRect();
-
-    return {
-      position: 'fixed' as const,
-      top: `${rect.top - 8}px`,
-      left: `${rect.left}px`,
-      minWidth: `${rect.width}px`,
-      transform: 'translateY(-100%)',
+  useLayoutEffect(() => {
+    if (!isOpen || !anchorRef.current) return;
+    
+    const updatePosition = () => {
+      if (!anchorRef.current) return;
+      
+      const rect = anchorRef.current.getBoundingClientRect();
+      const viewportHeight = window.innerHeight;
+      const viewportWidth = window.innerWidth;
+      const spaceAbove = rect.top;
+      const spaceBelow = viewportHeight - rect.bottom;
+      const showAbove = spaceAbove > spaceBelow && spaceAbove >= 300;
+      const maxHeight = showAbove ? spaceAbove - 16 : spaceBelow - 16;
+      const left = Math.min(
+        rect.left,
+        viewportWidth - Math.min(480, viewportWidth * 0.95) - 10
+      );
+      
+      setPopupPosition({
+        top: showAbove ? rect.top - 8 : rect.bottom + 8,
+        left,
+        maxHeight: Math.min(600, maxHeight),
+        showAbove
+      });
     };
-  };
+    
+    updatePosition();
+    window.addEventListener('resize', updatePosition);
+    return () => window.removeEventListener('resize', updatePosition);
+  }, [isOpen, anchorRef]);
 
   const handleEmptyDocumentSelect = () => {
     dispatch(setSelectedDocs(null));
@@ -93,112 +111,118 @@ export default function SourcesPopup({
   return (
     <div
       ref={popupRef}
-      style={getPopupPosition()}
-      className="bg-lotion dark:bg-charleston-green-2 rounded-xl shadow-[0px_9px_46px_8px_#0000001F,0px_24px_38px_3px_#00000024,0px_11px_15px_-7px_#00000033] w-full max-w-[95vw] md:max-w-md flex flex-col z-50 fixed"
+      className="fixed z-50 bg-lotion dark:bg-charleston-green-2 rounded-xl shadow-[0px_9px_46px_8px_#0000001F,0px_24px_38px_3px_#00000024,0px_11px_15px_-7px_#00000033] flex flex-col"
+      style={{
+        top: popupPosition.showAbove ? popupPosition.top : undefined,
+        bottom: popupPosition.showAbove ? undefined : window.innerHeight - popupPosition.top,
+        left: popupPosition.left,
+        maxWidth: Math.min(480, window.innerWidth * 0.95),
+        width: '100%',
+        height: popupPosition.maxHeight,
+        transform: popupPosition.showAbove ? 'translateY(-100%)' : 'none',
+      }}
     >
-      <div className="px-4 md:px-6 py-4">
-        <h2 className="text-lg font-bold text-[#141414] dark:text-bright-gray mb-4 dark:text-[20px]">
-          {t('conversation.sources.text')}
-        </h2>
-        
-        <Input
-          id="source-search"
-          name="source-search"
-          type="text"
-          value={searchTerm}
-          onChange={(e) => setSearchTerm(e.target.value)}
-          placeholder={t('settings.documents.searchPlaceholder')}
-          borderVariant="thin"
-          className="mb-4"
-          labelBgClassName="bg-lotion dark:bg-charleston-green-2"
-        />
-      </div>
+      <div className="flex flex-col h-full">
+        <div className="px-4 md:px-6 py-4 flex-shrink-0">
+          <h2 className="text-lg font-bold text-[#141414] dark:text-bright-gray mb-4 dark:text-[20px]">
+            {t('conversation.sources.text')}
+          </h2>
+          
+          <Input
+            id="source-search"
+            name="source-search"
+            type="text"
+            value={searchTerm}
+            onChange={(e) => setSearchTerm(e.target.value)}
+            placeholder={t('settings.documents.searchPlaceholder')}
+            borderVariant="thin"
+            className="mb-4"
+            labelBgClassName="bg-lotion dark:bg-charleston-green-2"
+          />
+        </div>
 
-      <div className="overflow-y-auto mx-4 border border-[#D9D9D9] dark:border-dim-gray rounded-md [&::-webkit-scrollbar-thumb]:bg-[#888] [&::-webkit-scrollbar-thumb]:hover:bg-[#555] [&::-webkit-scrollbar-track]:bg-[#E2E8F0] dark:[&::-webkit-scrollbar-track]:bg-[#2C2E3C]"
-           style={{
-             height: 'min(488px, calc(100vh - 220px))',
-             maxHeight: 'calc(100vh - 220px)'
-           }}>
-        {options ? (
-          <>
-            {filteredOptions?.map((option: any, index: number) => {
-              if (option.model === embeddingsName) {
-                return (
-                  <div
-                    key={index}
-                    className="flex cursor-pointer items-center p-3 hover:bg-gray-100 dark:hover:bg-[#2C2E3C] transition-colors border-b border-[#D9D9D9] dark:border-dim-gray border-opacity-80 dark:text-[14px]"
-                    onClick={() => {
-                      dispatch(setSelectedDocs(option));
-                      handlePostDocumentSelect(option);
-                      onClose();
-                    }}
-                  >
-                    <img
-                      src={SourceIcon}
-                      alt="Source"
-                      width={14} height={14}
-                      className="mr-3 flex-shrink-0"
-                    />
-                    <span className="text-[#5D5D5D] dark:text-bright-gray font-medium flex-grow overflow-hidden overflow-ellipsis whitespace-nowrap mr-3">
-                      {option.name}
-                    </span>
-                    <div className={`w-4 h-4 border flex-shrink-0 flex items-center justify-center p-[0.5px] dark:border-[#757783] border-[#C6C6C6]`}>
-                      {selectedDocs && 
-                        (option.id ? 
-                          selectedDocs.id === option.id :  // For documents with MongoDB IDs
-                          selectedDocs.date === option.date) &&  // For preloaded sources
-                        <img
-                          src={CheckIcon}
-                          alt="Selected"
-                          className="h-3 w-3"
-                        />
-                      }
+        <div className="flex-grow overflow-y-auto mx-4 border border-[#D9D9D9] dark:border-dim-gray rounded-md [&::-webkit-scrollbar-thumb]:bg-[#888] [&::-webkit-scrollbar-thumb]:hover:bg-[#555] [&::-webkit-scrollbar-track]:bg-[#E2E8F0] dark:[&::-webkit-scrollbar-track]:bg-[#2C2E3C]">
+          {options ? (
+            <>
+              {filteredOptions?.map((option: any, index: number) => {
+                if (option.model === embeddingsName) {
+                  return (
+                    <div
+                      key={index}
+                      className="flex cursor-pointer items-center p-3 hover:bg-gray-100 dark:hover:bg-[#2C2E3C] transition-colors border-b border-[#D9D9D9] dark:border-dim-gray border-opacity-80 dark:text-[14px]"
+                      onClick={() => {
+                        dispatch(setSelectedDocs(option));
+                        handlePostDocumentSelect(option);
+                        onClose();
+                      }}
+                    >
+                      <img
+                        src={SourceIcon}
+                        alt="Source"
+                        width={14} height={14}
+                        className="mr-3 flex-shrink-0"
+                      />
+                      <span className="text-[#5D5D5D] dark:text-bright-gray font-medium flex-grow overflow-hidden overflow-ellipsis whitespace-nowrap mr-3">
+                        {option.name}
+                      </span>
+                      <div className={`w-4 h-4 border flex-shrink-0 flex items-center justify-center p-[0.5px] dark:border-[#757783] border-[#C6C6C6]`}>
+                        {selectedDocs && 
+                          (option.id ? 
+                            selectedDocs.id === option.id :  // For documents with MongoDB IDs
+                            selectedDocs.date === option.date) &&  // For preloaded sources
+                          <img
+                            src={CheckIcon}
+                            alt="Selected"
+                            className="h-3 w-3"
+                          />
+                        }
+                      </div>
                     </div>
-                  </div>
-                );
-              }
-              return null;
-            })}
-            <div
-              className="flex cursor-pointer items-center p-3 hover:bg-gray-100 dark:hover:bg-[#2C2E3C] transition-colors border-b border-[#D9D9D9] dark:border-dim-gray border-opacity-80 dark:text-[14px]"
-              onClick={handleEmptyDocumentSelect}
-            >
-              <img width={14} height={14} src={SourceIcon} alt="Source" className="mr-3 flex-shrink-0" />
-              <span className="text-[#5D5D5D] dark:text-bright-gray font-medium flex-grow mr-3">
-                {t('none')}
-              </span>
-              <div className={`w-4 h-4 border flex-shrink-0 flex items-center justify-center p-[0.5px] dark:border-[#757783] border-[#C6C6C6]`}>
-                {selectedDocs === null && (
-                  <img src={CheckIcon} alt="Selected" className="h-3 w-3" />
-                )}
+                  );
+                }
+                return null;
+              })}
+              <div
+                className="flex cursor-pointer items-center p-3 hover:bg-gray-100 dark:hover:bg-[#2C2E3C] transition-colors border-b border-[#D9D9D9] dark:border-dim-gray border-opacity-80 dark:text-[14px]"
+                onClick={handleEmptyDocumentSelect}
+              >
+                <img width={14} height={14} src={SourceIcon} alt="Source" className="mr-3 flex-shrink-0" />
+                <span className="text-[#5D5D5D] dark:text-bright-gray font-medium flex-grow mr-3">
+                  {t('none')}
+                </span>
+                <div className={`w-4 h-4 border flex-shrink-0 flex items-center justify-center p-[0.5px] dark:border-[#757783] border-[#C6C6C6]`}>
+                  {selectedDocs === null && (
+                    <img src={CheckIcon} alt="Selected" className="h-3 w-3" />
+                  )}
+                </div>
               </div>
+            </>
+          ) : (
+            <div className="p-4 text-center text-gray-500 dark:text-bright-gray dark:text-[14px]">
+              {t('noSourcesAvailable')}
             </div>
-          </>
-        ) : (
-          <div className="p-4 text-center text-gray-500 dark:text-bright-gray dark:text-[14px]">
-            {t('noSourcesAvailable')}
-          </div>
-        )}
-      </div>
+          )}
+        </div>
 
-      <div className="px-4 md:px-6 py-4 opacity-75 hover:opacity-100 transition-opacity duration-200">
-        <a 
-          href="/settings/documents" 
-          className="text-violets-are-blue text-base font-medium flex items-center gap-2"
-          onClick={onClose}
-        >
-          Go to Documents
-          <img src={RedirectIcon} alt="Redirect" className="w-3 h-3" />
-        </a>
-      </div>
+        <div className="px-4 md:px-6 py-4 opacity-75 hover:opacity-100 transition-opacity duration-200 flex-shrink-0">
+          <a 
+            href="/settings/documents" 
+            className="text-violets-are-blue text-base font-medium flex items-center gap-2"
+            onClick={onClose}
+          >
+            Go to Documents
+            <img src={RedirectIcon} alt="Redirect" className="w-3 h-3" />
+          </a>
+        </div>
 
-      <div className="px-4 md:px-6 py-3 flex justify-start">
-        <button
-          onClick={handleUploadClick}
-          className="py-2 px-4 rounded-full border text-violets-are-blue hover:bg-violets-are-blue border-violets-are-blue hover:text-white transition-colors duration-200 text-[14px] font-medium w-auto"
-        >
-          Upload new
-        </button>
+        <div className="px-4 md:px-6 py-3 flex justify-start flex-shrink-0">
+          <button
+            onClick={handleUploadClick}
+            className="py-2 px-4 rounded-full border text-violets-are-blue hover:bg-violets-are-blue border-violets-are-blue hover:text-white transition-colors duration-200 text-[14px] font-medium w-auto"
+          >
+            Upload new
+          </button>
+        </div>
       </div>
     </div>
   );
diff --git a/frontend/src/components/ToolsPopup.tsx b/frontend/src/components/ToolsPopup.tsx
index 4e13aa2a..929e7ada 100644
--- a/frontend/src/components/ToolsPopup.tsx
+++ b/frontend/src/components/ToolsPopup.tsx
@@ -29,7 +29,7 @@ export default function ToolsPopup({
   const [searchTerm, setSearchTerm] = useState('');
   const [isDarkTheme] = useDarkTheme();
   const popupRef = useRef<HTMLDivElement>(null);
-  const [popupPosition, setPopupPosition] = useState({ bottom: 0, left: 0 });
+  const [popupPosition, setPopupPosition] = useState({ top: 0, left: 0, maxHeight: 0, showAbove: false });
 
   useLayoutEffect(() => {
     if (!isOpen || !anchorRef.current) return;
@@ -38,15 +38,24 @@ export default function ToolsPopup({
       if (!anchorRef.current) return;
       
       const rect = anchorRef.current.getBoundingClientRect();
+      const viewportHeight = window.innerHeight;
+      const viewportWidth = window.innerWidth;
+      
+      const spaceAbove = rect.top;
+      const spaceBelow = viewportHeight - rect.bottom;
+      const showAbove = spaceAbove > spaceBelow && spaceAbove >= 300;
+      const maxHeight = showAbove ? spaceAbove - 16 : spaceBelow - 16;
+
+      const left = Math.min(
+        rect.left,
+        viewportWidth - Math.min(462, viewportWidth * 0.95) - 10
+      );
+      
       setPopupPosition({
-        bottom: Math.min(
-          window.innerHeight - rect.top + 10,
-          window.innerHeight - 20
-        ),
-        left: Math.min(
-          rect.left,
-          window.innerWidth - Math.min(462, window.innerWidth * 0.95) - 10
-        )
+        top: showAbove ? rect.top - 8 : rect.bottom + 8,
+        left,
+        maxHeight: Math.min(600, maxHeight),
+        showAbove
       });
     };
     
@@ -67,11 +76,13 @@ export default function ToolsPopup({
       }
     };
 
-    document.addEventListener('mousedown', handleClickOutside);
+    if (isOpen) {
+      document.addEventListener('mousedown', handleClickOutside);
+    }
     return () => {
       document.removeEventListener('mousedown', handleClickOutside);
     };
-  }, [onClose, anchorRef]);
+  }, [onClose, anchorRef, isOpen]);
 
   useEffect(() => {
     if (isOpen) {
@@ -113,45 +124,51 @@ export default function ToolsPopup({
 
   if (!isOpen) return null;
 
+  const filteredTools = userTools.filter((tool) =>
+    tool.displayName.toLowerCase().includes(searchTerm.toLowerCase())
+  );
+
   return (
     <div
       ref={popupRef}
-      className="absolute z-10 w-[462px] max-w-[95vw] rounded-lg border border-light-silver dark:border-dim-gray bg-lotion dark:bg-charleston-green-2 shadow-[0px_9px_46px_8px_#0000001F,0px_24px_38px_3px_#00000024,0px_11px_15px_-7px_#00000033]"
+      className="fixed z-[9999] rounded-lg border border-light-silver dark:border-dim-gray bg-lotion dark:bg-charleston-green-2 shadow-[0px_9px_46px_8px_#0000001F,0px_24px_38px_3px_#00000024,0px_11px_15px_-7px_#00000033]"
       style={{
-        bottom: popupPosition.bottom,
+        top: popupPosition.showAbove ? popupPosition.top : undefined,
+        bottom: popupPosition.showAbove ? undefined : window.innerHeight - popupPosition.top,
         left: popupPosition.left,
-        position: 'fixed',
-        zIndex: 9999,
+        maxWidth: Math.min(462, window.innerWidth * 0.95),
+        width: '100%',
+        height: popupPosition.maxHeight,
+        transform: popupPosition.showAbove ? 'translateY(-100%)' : 'none',
       }}
     >
-      <div className="p-4">
-        <h3 className="text-lg font-medium text-gray-900 dark:text-white mb-4">
-          {t('settings.tools.label')}
-        </h3>
+      <div className="flex flex-col h-full">
+        <div className="p-4 flex-shrink-0">
+          <h3 className="text-lg font-medium text-gray-900 dark:text-white mb-4">
+            {t('settings.tools.label')}
+          </h3>
 
-        <Input
-          id="tool-search"
-          name="tool-search"
-          type="text"
-          value={searchTerm}
-          onChange={(e) => setSearchTerm(e.target.value)}
-          placeholder={t('settings.tools.searchPlaceholder')}
-          labelBgClassName="bg-lotion dark:bg-charleston-green-2"
-          borderVariant="thin"
-          className="mb-4"
-        />
+          <Input
+            id="tool-search"
+            name="tool-search"
+            type="text"
+            value={searchTerm}
+            onChange={(e) => setSearchTerm(e.target.value)}
+            placeholder={t('settings.tools.searchPlaceholder')}
+            labelBgClassName="bg-lotion dark:bg-charleston-green-2"
+            borderVariant="thin"
+            className="mb-4"
+          />
+        </div>
 
         {loading ? (
-          <div className="flex justify-center py-4">
+          <div className="flex justify-center py-4 flex-grow">
             <div className="animate-spin rounded-full h-6 w-6 border-b-2 border-gray-900 dark:border-white"></div>
           </div>
         ) : (
-          <div className="border border-[#D9D9D9] dark:border-dim-gray rounded-md overflow-hidden">
-            <div 
-              className="h-[calc(min(480px,100vh-220px))] overflow-y-auto [&::-webkit-scrollbar-thumb]:bg-[#888] [&::-webkit-scrollbar-thumb]:hover:bg-[#555] [&::-webkit-scrollbar-track]:bg-[#E2E8F0] dark:[&::-webkit-scrollbar-track]:bg-[#2C2E3C]"
-             
-            >
-              {userTools.length === 0 ? (
+          <div className="mx-4 border border-[#D9D9D9] dark:border-dim-gray rounded-md overflow-hidden flex-grow">
+            <div className="h-full overflow-y-auto [&::-webkit-scrollbar-thumb]:bg-[#888] [&::-webkit-scrollbar-thumb]:hover:bg-[#555] [&::-webkit-scrollbar-track]:bg-[#E2E8F0] dark:[&::-webkit-scrollbar-track]:bg-[#2C2E3C]">
+              {filteredTools.length === 0 ? (
                 <div className="flex flex-col items-center justify-center h-full py-8">
                   <img
                     src={isDarkTheme ? NoFilesDarkIcon : NoFilesIcon}
@@ -163,50 +180,44 @@ export default function ToolsPopup({
                   </p>
                 </div>
               ) : (
-                userTools
-                  .filter((tool) =>
-                    tool.displayName
-                      .toLowerCase()
-                      .includes(searchTerm.toLowerCase()),
-                  )
-                  .map((tool) => (
-                    <div
-                      key={tool.id}
-                      onClick={() => updateToolStatus(tool.id, !tool.status)}
-                      className="flex items-center justify-between p-3 border-b border-[#D9D9D9] dark:border-dim-gray hover:bg-gray-100 dark:hover:bg-charleston-green-3"
-                    >
-                      <div className="flex items-center flex-grow mr-3">
-                        <img
-                          src={`/toolIcons/tool_${tool.name}.svg`}
-                          alt={`${tool.displayName} icon`}
-                          className="h-5 w-5 mr-4 flex-shrink-0"
-                        />
-                        <div className="overflow-hidden">
-                          <p className="text-xs font-medium text-gray-900 dark:text-white overflow-hidden overflow-ellipsis whitespace-nowrap">
-                            {tool.displayName}
-                          </p>
-                        </div>
-                      </div>
-                      <div className="flex items-center flex-shrink-0">
-                        <div className={`w-4 h-4 border flex items-center justify-center p-[0.5px] dark:border-[#757783] border-[#C6C6C6]`}>
-                          {tool.status && (
-                            <img
-                              src={CheckmarkIcon}
-                              alt="Tool enabled"
-                              width={12}
-                              height={12}
-                            />
-                          )}
-                        </div>
+                filteredTools.map((tool) => (
+                  <div
+                    key={tool.id}
+                    onClick={() => updateToolStatus(tool.id, !tool.status)}
+                    className="flex items-center justify-between p-3 border-b border-[#D9D9D9] dark:border-dim-gray hover:bg-gray-100 dark:hover:bg-charleston-green-3"
+                  >
+                    <div className="flex items-center flex-grow mr-3">
+                      <img
+                        src={`/toolIcons/tool_${tool.name}.svg`}
+                        alt={`${tool.displayName} icon`}
+                        className="h-5 w-5 mr-4 flex-shrink-0"
+                      />
+                      <div className="overflow-hidden">
+                        <p className="text-xs font-medium text-gray-900 dark:text-white overflow-hidden overflow-ellipsis whitespace-nowrap">
+                          {tool.displayName}
+                        </p>
                       </div>
                     </div>
-                  ))
+                    <div className="flex items-center flex-shrink-0">
+                      <div className={`w-4 h-4 border flex items-center justify-center p-[0.5px] dark:border-[#757783] border-[#C6C6C6]`}>
+                        {tool.status && (
+                          <img
+                            src={CheckmarkIcon}
+                            alt="Tool enabled"
+                            width={12}
+                            height={12}
+                          />
+                        )}
+                      </div>
+                    </div>
+                  </div>
+                ))
               )}
             </div>
           </div>
         )}
 
-        <div className="mt-4 flex justify-start">
+        <div className="p-4 flex-shrink-0">
           <a
             href="/settings/tools"
             className="text-base text-purple-30 font-medium hover:text-violets-are-blue flex items-center"
@@ -222,4 +233,4 @@ export default function ToolsPopup({
       </div>
     </div>
   );
-}
+}
\ No newline at end of file