diff --git a/extensions/theme-2026/themes/2026-dark.json b/extensions/theme-2026/themes/2026-dark.json
index 2aca9467744..44d0d3273f3 100644
--- a/extensions/theme-2026/themes/2026-dark.json
+++ b/extensions/theme-2026/themes/2026-dark.json
@@ -94,7 +94,7 @@
 		"menu.foreground": "#bfbfbf",
 		"menu.selectionBackground": "#3994BC26",
 		"menu.selectionForeground": "#bfbfbf",
-		"menu.separatorBackground": "#838485",
+		"menu.separatorBackground": "#2A2B2C",
 		"menu.border": "#2A2B2CFF",
 		"commandCenter.foreground": "#bfbfbf",
 		"commandCenter.activeForeground": "#bfbfbf",
diff --git a/extensions/theme-2026/themes/styles.css b/extensions/theme-2026/themes/styles.css
index 035e15149e7..c6393ee9a98 100644
--- a/extensions/theme-2026/themes/styles.css
+++ b/extensions/theme-2026/themes/styles.css
@@ -283,10 +283,19 @@
 
 /* Context Menus */
 .monaco-workbench .monaco-menu .monaco-action-bar.vertical {
-	box-shadow: var(--shadow-lg);
 	border-radius: var(--radius-lg);
+}
+
+/* Use ::before for backdrop-filter so it doesn't create a containing block
+   for position:fixed submenu children (which would clip them via overflow:hidden). */
+.monaco-workbench .monaco-menu .monaco-action-bar.vertical::before {
+	content: '';
+	position: absolute;
+	inset: 0;
+	border-radius: inherit;
 	backdrop-filter: var(--backdrop-blur-md);
 	-webkit-backdrop-filter: var(--backdrop-blur-md);
+	z-index: -1;
 }
 
 .monaco-workbench .context-view .monaco-menu {
@@ -295,6 +304,11 @@
 	border-radius: var(--radius-lg);
 }
 
+.monaco-workbench .monaco-menu-container > .monaco-scrollable-element {
+	border-radius: var(--radius-lg) !important;
+	box-shadow: var(--shadow-lg) !important;
+}
+
 .monaco-workbench .action-widget {
 	background: color-mix(in srgb, var(--vscode-menu-background) 60%, transparent) !important;
 	backdrop-filter: var(--backdrop-blur-md);