diff --git a/site/src/components/OverflowY/OverflowY.tsx b/site/src/components/OverflowY/OverflowY.tsx
index cce9ad68ce..5326d45902 100644
--- a/site/src/components/OverflowY/OverflowY.tsx
+++ b/site/src/components/OverflowY/OverflowY.tsx
@@ -2,6 +2,7 @@
  * @file Provides reusable vertical overflow behavior.
  */
 import type { FC, ReactNode } from "react";
+import { cn } from "#/utils/cn";
 
 type OverflowYProps = {
 	children?: ReactNode;
@@ -12,6 +13,7 @@ type OverflowYProps = {
 
 export const OverflowY: FC<OverflowYProps> = ({
 	children,
+	className,
 	height,
 	maxHeight,
 	...attrs
@@ -27,7 +29,7 @@ export const OverflowY: FC<OverflowYProps> = ({
 
 	return (
 		<div
-			className="w-full overflow-y-auto shrink"
+			className={cn("w-full overflow-y-auto shrink", className)}
 			style={{
 				height: computedHeight,
 				maxHeight: computedMaxHeight,
diff --git a/site/src/pages/WorkspacesPage/WorkspacesButton.tsx b/site/src/pages/WorkspacesPage/WorkspacesButton.tsx
index cc612afacd..fe09deed74 100644
--- a/site/src/pages/WorkspacesPage/WorkspacesButton.tsx
+++ b/site/src/pages/WorkspacesPage/WorkspacesButton.tsx
@@ -63,7 +63,7 @@ export const WorkspacesButton: FC<WorkspacesButtonProps> = ({
 			</PopoverTrigger>
 			<PopoverContent
 				align="end"
-				className="bg-surface-secondary border-surface-quaternary w-[320px]"
+				className="bg-surface-secondary border-surface-quaternary w-[320px] overflow-hidden flex flex-col"
 			>
 				<MenuSearch
 					value={searchTerm}
@@ -73,7 +73,7 @@ export const WorkspacesButton: FC<WorkspacesButtonProps> = ({
 					aria-label="Template select for workspace"
 				/>
 
-				<OverflowY maxHeight={380} className="flex flex-col py-2">
+				<OverflowY maxHeight={380} className="flex flex-col py-2 min-h-0">
 					{templatesFetchStatus === "pending" ? (
 						<Loader size="sm" />
 					) : (