diff --git a/crates/assistant2/src/message_editor.rs b/crates/assistant2/src/message_editor.rs
index 54a818c7db..c11f4056cc 100644
--- a/crates/assistant2/src/message_editor.rs
+++ b/crates/assistant2/src/message_editor.rs
@@ -10,7 +10,7 @@ use language_model::{LanguageModelRegistry, LanguageModelRequestTool};
 use language_model_selector::LanguageModelSelector;
 use rope::Point;
 use settings::Settings;
-use theme::ThemeSettings;
+use theme::{get_ui_font_size, ThemeSettings};
 use ui::{
     prelude::*, ButtonLike, ElevationIndex, KeyBinding, PopoverMenu, PopoverMenuHandle,
     SwitchWithLabel,
@@ -276,7 +276,7 @@ impl Render for MessageEditor {
                             .anchor(gpui::Corner::BottomLeft)
                             .offset(gpui::Point {
                                 x: px(0.0),
-                                y: px(-16.0),
+                                y: (-get_ui_font_size(cx) * 2) - px(4.0),
                             })
                             .with_handle(self.inline_context_picker_menu_handle.clone()),
                     )
diff --git a/crates/gpui/src/elements/anchored.rs b/crates/gpui/src/elements/anchored.rs
index 2991353f7c..4dba2b580a 100644
--- a/crates/gpui/src/elements/anchored.rs
+++ b/crates/gpui/src/elements/anchored.rs
@@ -19,6 +19,7 @@ pub struct Anchored {
     fit_mode: AnchoredFitMode,
     anchor_position: Option<Point<Pixels>>,
     position_mode: AnchoredPositionMode,
+    offset: Option<Point<Pixels>>,
 }
 
 /// anchored gives you an element that will avoid overflowing the window bounds.
@@ -30,6 +31,7 @@ pub fn anchored() -> Anchored {
         fit_mode: AnchoredFitMode::SwitchAnchor,
         anchor_position: None,
         position_mode: AnchoredPositionMode::Window,
+        offset: None,
     }
 }
 
@@ -47,6 +49,13 @@ impl Anchored {
         self
     }
 
+    /// Offset the final position by this amount.
+    /// Useful when you want to anchor to an element but offset from it, such as in PopoverMenu.
+    pub fn offset(mut self, offset: Point<Pixels>) -> Self {
+        self.offset = Some(offset);
+        self
+    }
+
     /// Sets the position mode for this anchored element. Local will have this
     /// interpret its [`Anchored::position`] as relative to the parent element.
     /// While Window will have it interpret the position as relative to the window.
@@ -129,6 +138,7 @@ impl Element for Anchored {
             self.anchor_corner,
             size,
             bounds,
+            self.offset,
         );
 
         let limits = Bounds {
@@ -245,18 +255,22 @@ impl AnchoredPositionMode {
         anchor_corner: Corner,
         size: Size<Pixels>,
         bounds: Bounds<Pixels>,
+        offset: Option<Point<Pixels>>,
     ) -> (Point<Pixels>, Bounds<Pixels>) {
+        let offset = offset.unwrap_or_default();
+
         match self {
             AnchoredPositionMode::Window => {
                 let anchor_position = anchor_position.unwrap_or(bounds.origin);
-                let bounds = Bounds::from_corner_and_size(anchor_corner, anchor_position, size);
+                let bounds =
+                    Bounds::from_corner_and_size(anchor_corner, anchor_position + offset, size);
                 (anchor_position, bounds)
             }
             AnchoredPositionMode::Local => {
                 let anchor_position = anchor_position.unwrap_or_default();
                 let bounds = Bounds::from_corner_and_size(
                     anchor_corner,
-                    bounds.origin + anchor_position,
+                    bounds.origin + anchor_position + offset,
                     size,
                 );
                 (anchor_position, bounds)
diff --git a/crates/ui/src/components/popover_menu.rs b/crates/ui/src/components/popover_menu.rs
index 100d5f6332..28fc881baf 100644
--- a/crates/ui/src/components/popover_menu.rs
+++ b/crates/ui/src/components/popover_menu.rs
@@ -254,13 +254,14 @@ impl<M: ManagedView> Element for PopoverMenu<M> {
                 let mut menu_layout_id = None;
 
                 let menu_element = element_state.menu.borrow_mut().as_mut().map(|menu| {
+                    let offset = self.resolved_offset(cx);
                     let mut anchored = anchored()
                         .snap_to_window_with_margin(px(8.))
-                        .anchor(self.anchor);
+                        .anchor(self.anchor)
+                        .offset(offset);
                     if let Some(child_bounds) = element_state.child_bounds {
-                        anchored = anchored.position(
-                            child_bounds.corner(self.resolved_attach()) + self.resolved_offset(cx),
-                        );
+                        anchored =
+                            anchored.position(child_bounds.corner(self.resolved_attach()) + offset);
                     }
                     let mut element = deferred(anchored.child(div().occlude().child(menu.clone())))
                         .with_priority(1)