diff --git a/docs/getting-started/changelog.md b/docs/getting-started/changelog.md
index 4436f1da6..0c5d17c6a 100644
--- a/docs/getting-started/changelog.md
+++ b/docs/getting-started/changelog.md
@@ -8,7 +8,8 @@ _During the beta period, these restrictions may be relaxed in the event of a mis
 
 ## Next
 
-- Fix bug where `disabled` could be set when buttons are rendered as links
+- Fixed a bug where `disabled` could be set when buttons are rendered as links
+- Fixed a bug where hoisted dropdowns would render in the wrong position when place inside an `sl-dialog`
 - Improved `sl-dropdown` accessibility by attaching `aria-haspopup` and `aria-expanded` to the slotted trigger
 - Removed `console.log` from modal utility
 
diff --git a/src/components/alert/alert.scss b/src/components/alert/alert.scss
index 14cf57553..aff893653 100644
--- a/src/components/alert/alert.scss
+++ b/src/components/alert/alert.scss
@@ -37,7 +37,7 @@
 
 .alert--open {
   opacity: 1;
-  transform: scale(1);
+  transform: none;
 }
 
 .alert__icon {
diff --git a/src/components/dialog/dialog.scss b/src/components/dialog/dialog.scss
index acbe205f2..9711f24f4 100644
--- a/src/components/dialog/dialog.scss
+++ b/src/components/dialog/dialog.scss
@@ -55,7 +55,7 @@
 .dialog--open .dialog__panel {
   display: flex;
   opacity: 1;
-  transform: scale(1);
+  transform: none;
 }
 
 .dialog__header {
diff --git a/src/components/dropdown/dropdown.scss b/src/components/dropdown/dropdown.scss
index 2a6eafdcd..4ae832ff5 100644
--- a/src/components/dropdown/dropdown.scss
+++ b/src/components/dropdown/dropdown.scss
@@ -53,6 +53,6 @@
 
   &.popover-visible .dropdown__panel {
     opacity: 1;
-    transform: scale(1);
+    transform: none;
   }
 }
diff --git a/src/components/tooltip/tooltip.scss b/src/components/tooltip/tooltip.scss
index 45a6dd8aa..57354d389 100644
--- a/src/components/tooltip/tooltip.scss
+++ b/src/components/tooltip/tooltip.scss
@@ -72,7 +72,7 @@
 
   &.popover-visible .tooltip {
     opacity: 1;
-    transform: scale(1);
+    transform: none;
     transition-delay: var(--show-delay);
     transition-duration: var(--show-duration);
     transition-timing-function: var(--show-timing-function);