diff --git a/crates/editor/src/hover_popover.rs b/crates/editor/src/hover_popover.rs
index d962ee9f56..2411b26ff1 100644
--- a/crates/editor/src/hover_popover.rs
+++ b/crates/editor/src/hover_popover.rs
@@ -869,6 +869,7 @@ impl InfoPopover {
         let keyboard_grace = Rc::clone(&self.keyboard_grace);
         div()
             .id("info_popover")
+            .occlude()
             .elevation_2(cx)
             // Prevent a mouse down/move on the popover from being propagated to the editor,
             // because that would dismiss the popover.
diff --git a/crates/gpui/examples/scrollable.rs b/crates/gpui/examples/scrollable.rs
new file mode 100644
index 0000000000..b668c19c40
--- /dev/null
+++ b/crates/gpui/examples/scrollable.rs
@@ -0,0 +1,60 @@
+use gpui::{
+    App, Application, Bounds, Context, Window, WindowBounds, WindowOptions, div, prelude::*, px,
+    size,
+};
+
+struct Scrollable {}
+
+impl Render for Scrollable {
+    fn render(&mut self, _window: &mut Window, _cx: &mut Context<Self>) -> impl IntoElement {
+        div()
+            .size_full()
+            .id("vertical")
+            .p_4()
+            .overflow_scroll()
+            .bg(gpui::white())
+            .child("Example for test 2 way scroll in nested layout")
+            .child(
+                div()
+                    .h(px(5000.))
+                    .border_1()
+                    .border_color(gpui::blue())
+                    .bg(gpui::blue().opacity(0.05))
+                    .p_4()
+                    .child(
+                        div()
+                            .mb_5()
+                            .w_full()
+                            .id("horizontal")
+                            .overflow_scroll()
+                            .child(
+                                div()
+                                    .w(px(2000.))
+                                    .h(px(150.))
+                                    .bg(gpui::green().opacity(0.1))
+                                    .hover(|this| this.bg(gpui::green().opacity(0.2)))
+                                    .border_1()
+                                    .border_color(gpui::green())
+                                    .p_4()
+                                    .child("Scroll Horizontal"),
+                            ),
+                    )
+                    .child("Scroll Vertical"),
+            )
+    }
+}
+
+fn main() {
+    Application::new().run(|cx: &mut App| {
+        let bounds = Bounds::centered(None, size(px(500.), px(500.0)), cx);
+        cx.open_window(
+            WindowOptions {
+                window_bounds: Some(WindowBounds::Windowed(bounds)),
+                ..Default::default()
+            },
+            |_, cx| cx.new(|_| Scrollable {}),
+        )
+        .unwrap();
+        cx.activate(true);
+    });
+}
diff --git a/crates/gpui/src/elements/div.rs b/crates/gpui/src/elements/div.rs
index fd78591dd1..3e9d1e27a9 100644
--- a/crates/gpui/src/elements/div.rs
+++ b/crates/gpui/src/elements/div.rs
@@ -2299,7 +2299,6 @@ impl Interactivity {
                     }
                     scroll_offset.y += delta_y;
                     scroll_offset.x += delta_x;
-                    cx.stop_propagation();
                     if *scroll_offset != old_scroll_offset {
                         cx.notify(current_view);
                     }