diff --git a/Cargo.lock b/Cargo.lock
index 14be49b0..722e256b 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -1258,7 +1258,7 @@ dependencies = [
 [[package]]
 name = "collections"
 version = "0.1.0"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 dependencies = [
  "gpui_util",
  "indexmap",
@@ -1812,7 +1812,7 @@ dependencies = [
 [[package]]
 name = "derive_refineable"
 version = "0.1.0"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 dependencies = [
  "proc-macro2",
  "quote",
@@ -3003,7 +3003,7 @@ dependencies = [
 [[package]]
 name = "gpui"
 version = "0.2.2"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 dependencies = [
  "accesskit",
  "anyhow",
@@ -3232,7 +3232,7 @@ dependencies = [
 [[package]]
 name = "gpui_linux"
 version = "0.1.0"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 dependencies = [
  "accesskit",
  "accesskit_unix",
@@ -3286,7 +3286,7 @@ dependencies = [
 [[package]]
 name = "gpui_macos"
 version = "0.1.0"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 dependencies = [
  "accesskit",
  "accesskit_macos",
@@ -3333,7 +3333,7 @@ dependencies = [
 [[package]]
 name = "gpui_macros"
 version = "0.1.0"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 dependencies = [
  "heck 0.5.0",
  "proc-macro2",
@@ -3344,7 +3344,7 @@ dependencies = [
 [[package]]
 name = "gpui_platform"
 version = "0.1.0"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 dependencies = [
  "console_error_panic_hook",
  "gpui",
@@ -3357,7 +3357,7 @@ dependencies = [
 [[package]]
 name = "gpui_shared_string"
 version = "0.1.0"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 dependencies = [
  "schemars",
  "serde",
@@ -3367,7 +3367,7 @@ dependencies = [
 [[package]]
 name = "gpui_util"
 version = "0.1.0"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 dependencies = [
  "anyhow",
  "log",
@@ -3377,7 +3377,7 @@ dependencies = [
 [[package]]
 name = "gpui_web"
 version = "0.1.0"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 dependencies = [
  "anyhow",
  "console_error_panic_hook",
@@ -3401,7 +3401,7 @@ dependencies = [
 [[package]]
 name = "gpui_wgpu"
 version = "0.1.0"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 dependencies = [
  "anyhow",
  "bytemuck",
@@ -3430,7 +3430,7 @@ dependencies = [
 [[package]]
 name = "gpui_windows"
 version = "0.1.0"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 dependencies = [
  "accesskit",
  "accesskit_windows",
@@ -3740,7 +3740,7 @@ dependencies = [
 [[package]]
 name = "http_client"
 version = "0.1.0"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 dependencies = [
  "anyhow",
  "async-compression",
@@ -4751,7 +4751,7 @@ dependencies = [
 [[package]]
 name = "media"
 version = "0.1.0"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 dependencies = [
  "anyhow",
  "bindgen",
@@ -5678,7 +5678,7 @@ checksum = "9b4f627cb1b25917193a259e49bdad08f671f8d9708acfd5fe0a8c1455d87220"
 [[package]]
 name = "perf"
 version = "0.1.0"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 dependencies = [
  "collections",
  "serde",
@@ -6668,7 +6668,7 @@ dependencies = [
 [[package]]
 name = "refineable"
 version = "0.1.0"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 dependencies = [
  "derive_refineable",
 ]
@@ -7122,7 +7122,7 @@ dependencies = [
 [[package]]
 name = "scheduler"
 version = "0.1.0"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 dependencies = [
  "async-task",
  "backtrace",
@@ -7755,7 +7755,7 @@ checksum = "13c2bddecc57b384dee18652358fb23172facb8a2c51ccc10d74c157bdea3292"
 [[package]]
 name = "sum_tree"
 version = "0.1.0"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 dependencies = [
  "heapless",
  "log",
@@ -9133,7 +9133,7 @@ checksum = "b6c140620e7ffbb22c2dee59cafe6084a59b5ffc27a8859a5f0d494b5d52b6be"
 [[package]]
 name = "util"
 version = "0.1.0"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 dependencies = [
  "anyhow",
  "async-fs",
@@ -9172,7 +9172,7 @@ dependencies = [
 [[package]]
 name = "util_macros"
 version = "0.1.0"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 dependencies = [
  "perf",
  "quote",
@@ -11105,7 +11105,7 @@ dependencies = [
 [[package]]
 name = "zlog"
 version = "0.1.0"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 dependencies = [
  "anyhow",
  "chrono",
@@ -11122,7 +11122,7 @@ checksum = "b8848ee67ecc8aedbaf3e4122217aff892639231befc6a1b58d29fff4c2cabaa"
 [[package]]
 name = "ztracing"
 version = "0.1.0"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 dependencies = [
  "tracing",
  "tracing-subscriber",
@@ -11133,7 +11133,7 @@ dependencies = [
 [[package]]
 name = "ztracing_macro"
 version = "0.1.0"
-source = "git+https://github.com/BumpyClock/gpui?rev=24cfa81ca2a9f954b96320e14b393dd519078618#24cfa81ca2a9f954b96320e14b393dd519078618"
+source = "git+https://github.com/BumpyClock/gpui?rev=4332ea7deae4838c12bad6ea64292ca22a33cf98#4332ea7deae4838c12bad6ea64292ca22a33cf98"
 
 [[package]]
 name = "zune-core"
diff --git a/Cargo.toml b/Cargo.toml
index 5fe438bd..9216cf83 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -28,8 +28,8 @@ gpui-component-macros = { path = "crates/macros", version = "0.5.1" }
 gpui-component-assets = { path = "crates/assets", version = "0.5.1" }
 story = { path = "crates/story" }
 
-gpui = { git = "https://github.com/BumpyClock/gpui", rev = "24cfa81ca2a9f954b96320e14b393dd519078618", features = ["font-kit"] }
-gpui_platform = { git = "https://github.com/BumpyClock/gpui", rev = "24cfa81ca2a9f954b96320e14b393dd519078618", features = ["font-kit"] }
+gpui = { git = "https://github.com/BumpyClock/gpui", rev = "4332ea7deae4838c12bad6ea64292ca22a33cf98", features = ["font-kit"] }
+gpui_platform = { git = "https://github.com/BumpyClock/gpui", rev = "4332ea7deae4838c12bad6ea64292ca22a33cf98", features = ["font-kit"] }
 gpui-macros = "0.2.2"
 sum-tree = { version = "0.2.0", package = "zed-sum-tree" }
 # reqwest = { version = "0.12.15-zed", package = "zed-reqwest" }
diff --git a/crates/story/src/stories/floating_sidebar_story.rs b/crates/story/src/stories/floating_sidebar_story.rs
index 58c5c5c6..efcd90e1 100644
--- a/crates/story/src/stories/floating_sidebar_story.rs
+++ b/crates/story/src/stories/floating_sidebar_story.rs
@@ -4,7 +4,8 @@ use gpui::{
 };
 
 use gpui_component::{
-    ActiveTheme, FloatingSidebar, Icon, IconName, Side, h_flex,
+    ActiveTheme, ElevationToken, FloatingSidebar, Icon, IconName, Side, h_flex,
+    radio::RadioGroup,
     sidebar::{SidebarFooter, SidebarGroup, SidebarHeader, SidebarMenu, SidebarMenuItem},
     switch::Switch,
     v_flex,
@@ -17,6 +18,7 @@ pub struct FloatingSidebarStory {
     collapsed: bool,
     side: Side,
     wide_inset: bool,
+    elevation: ElevationToken,
 }
 
 impl FloatingSidebarStory {
@@ -26,6 +28,7 @@ impl FloatingSidebarStory {
             collapsed: false,
             side: Side::Left,
             wide_inset: false,
+            elevation: ElevationToken::Sm,
         }
     }
 
@@ -33,6 +36,14 @@ impl FloatingSidebarStory {
         cx.new(|cx| Self::new(window, cx))
     }
 
+    fn elevation_index(&self) -> usize {
+        match self.elevation {
+            ElevationToken::None => 0,
+            ElevationToken::Lg => 2,
+            _ => 1,
+        }
+    }
+
     fn render_example(
         &self,
         id: &'static str,
@@ -46,13 +57,14 @@ impl FloatingSidebarStory {
             collapsed_width
         } else {
             sidebar_width
-        } + inset;
+        } + inset * 2.0;
 
         let sidebar = FloatingSidebar::new(id)
             .side(self.side)
             .collapsed(self.collapsed)
             .width(sidebar_width)
             .inset(inset)
+            .elevation(self.elevation)
             .header_with(|collapsed, _, _cx| {
                 SidebarHeader::new()
                     .child(Icon::new(IconName::PanelLeft).size_4())
@@ -166,6 +178,20 @@ impl Render for FloatingSidebarStory {
                                         this.wide_inset = *checked;
                                         cx.notify();
                                     })),
+                            )
+                            .child(
+                                RadioGroup::horizontal("floating-sidebar-elevation")
+                                    .children(["None", "Small", "Large"])
+                                    .selected_index(Some(self.elevation_index()))
+                                    .on_click(cx.listener(|this, selected_ix: &usize, _, cx| {
+                                        this.elevation = match selected_ix {
+                                            0 => ElevationToken::None,
+                                            1 => ElevationToken::Sm,
+                                            2 => ElevationToken::Lg,
+                                            _ => return,
+                                        };
+                                        cx.notify();
+                                    })),
                             ),
                     )
                     .child(self.render_example("floating-sidebar-example", inset, window, cx)),
diff --git a/crates/ui/src/floating_sidebar/mod.rs b/crates/ui/src/floating_sidebar/mod.rs
index 7777ad39..956b0481 100644
--- a/crates/ui/src/floating_sidebar/mod.rs
+++ b/crates/ui/src/floating_sidebar/mod.rs
@@ -39,6 +39,9 @@ impl FloatingSidebarState {
 }
 
 /// A floating sidebar that composes SidebarShell and Sidebar with internal resize handling.
+///
+/// The default elevation is [`ElevationToken::Sm`]. Large elevations may require
+/// a larger inset near window edges to avoid native-window clipping.
 #[derive(IntoElement)]
 pub struct FloatingSidebar<E: SidebarItem + 'static> {
     id: ElementId,
@@ -76,7 +79,7 @@ impl<E: SidebarItem> FloatingSidebar<E> {
             inset: Some(DEFAULT_INSET),
             top_inset: px(0.0),
             blur_enabled: None,
-            elevation: ElevationToken::Lg,
+            elevation: ElevationToken::Sm,
             on_resize_end: None,
         }
     }
@@ -161,7 +164,10 @@ impl<E: SidebarItem> FloatingSidebar<E> {
         self
     }
 
-    /// Set the shadow elevation level for the sidebar panel.
+    /// Set the shadow elevation level for the complete sidebar panel.
+    ///
+    /// Default is [`ElevationToken::Sm`]. Large elevations may require a larger
+    /// inset near window edges to avoid native-window clipping.
     pub fn elevation(mut self, elevation: ElevationToken) -> Self {
         self.elevation = elevation;
         self
@@ -351,6 +357,7 @@ impl<E: SidebarItem> RenderOnce for FloatingSidebar<E> {
                     .collapsed(collapsed)
                     .width(expanded_width)
                     .animate_width(false)
+                    .bg(gpui::transparent_black())
                     .refine_style(&style),
             )
             .child(resize_tracker)
@@ -479,6 +486,12 @@ mod tests {
 
     #[gpui::test]
     fn test_floating_sidebar_builder(_cx: &mut gpui::TestAppContext) {
+        let default_sidebar = FloatingSidebar::<SidebarMenu>::new("default-floating-sidebar");
+        assert_eq!(default_sidebar.elevation, ElevationToken::Sm);
+        assert_eq!(default_sidebar.width, DEFAULT_WIDTH);
+        assert_eq!(default_sidebar.inset, Some(DEFAULT_INSET));
+        assert_eq!(default_sidebar.resizer_width, DEFAULT_RESIZER_WIDTH);
+
         let sidebar = FloatingSidebar::<SidebarMenu>::new("floating-sidebar")
             .side(Side::Right)
             .collapsed(true)
@@ -503,8 +516,16 @@ mod tests {
         assert_eq!(sidebar.inset, Some(px(6.0)));
         assert_eq!(sidebar.top_inset, px(12.0));
         assert_eq!(sidebar.blur_enabled, Some(false));
-        assert!(matches!(sidebar.elevation, ElevationToken::Md));
+        assert_eq!(sidebar.elevation, ElevationToken::Md);
         assert!(sidebar.on_resize_end.is_some());
+
+        let no_shadow =
+            FloatingSidebar::<SidebarMenu>::new("no-shadow").elevation(ElevationToken::None);
+        assert_eq!(no_shadow.elevation, ElevationToken::None);
+
+        let large_shadow =
+            FloatingSidebar::<SidebarMenu>::new("large-shadow").elevation(ElevationToken::Lg);
+        assert_eq!(large_shadow.elevation, ElevationToken::Lg);
     }
 
     #[gpui::test]
diff --git a/crates/ui/src/scroll/scrollable_mask.rs b/crates/ui/src/scroll/scrollable_mask.rs
index 36a57d23..06046ce9 100644
--- a/crates/ui/src/scroll/scrollable_mask.rs
+++ b/crates/ui/src/scroll/scrollable_mask.rs
@@ -108,7 +108,11 @@ impl Element for ScrollableMask {
         let line_height = window.line_height();
         let bounds = hitbox.bounds;
 
-        window.with_content_mask(Some(ContentMask { bounds }), |window| {
+        let content_mask = ContentMask {
+            bounds,
+            ..Default::default()
+        };
+        window.with_content_mask(Some(content_mask), |window| {
             if let Some(color) = self.debug {
                 window.paint_quad(PaintQuad {
                     bounds,
diff --git a/crates/ui/src/scroll/scrollbar.rs b/crates/ui/src/scroll/scrollbar.rs
index 01e31ee8..67de63f3 100644
--- a/crates/ui/src/scroll/scrollbar.rs
+++ b/crates/ui/src/scroll/scrollbar.rs
@@ -531,7 +531,11 @@ impl Element for Scrollbar {
         window: &mut Window,
         cx: &mut App,
     ) -> Self::PrepaintState {
-        let hitbox = window.with_content_mask(Some(ContentMask { bounds }), |window| {
+        let content_mask = ContentMask {
+            bounds,
+            ..Default::default()
+        };
+        let hitbox = window.with_content_mask(Some(content_mask), |window| {
             window.insert_hitbox(bounds, HitboxBehavior::Normal)
         });
 
@@ -698,7 +702,11 @@ impl Element for Scrollbar {
                 )
             };
 
-            let bar_hitbox = window.with_content_mask(Some(ContentMask { bounds }), |window| {
+            let content_mask = ContentMask {
+                bounds,
+                ..Default::default()
+            };
+            let bar_hitbox = window.with_content_mask(Some(content_mask), |window| {
                 window.insert_hitbox(bounds, gpui::HitboxBehavior::Normal)
             });
 
@@ -756,6 +764,7 @@ impl Element for Scrollbar {
         window.with_content_mask(
             Some(ContentMask {
                 bounds: hitbox_bounds,
+                ..Default::default()
             }),
             |window| {
                 for state in prepaint.states.iter() {
diff --git a/crates/ui/src/sidebar_shell/mod.rs b/crates/ui/src/sidebar_shell/mod.rs
index c4d00174..34aa8d7a 100644
--- a/crates/ui/src/sidebar_shell/mod.rs
+++ b/crates/ui/src/sidebar_shell/mod.rs
@@ -2,7 +2,7 @@
 //!
 //! This module provides a reusable sidebar shell that handles:
 //! - Resizable panel with configurable min/max width constraints
-//! - Built-in shadow elevation effects
+//! - Theme-controlled panel shadow elevation
 //! - Glass surface effects via SurfacePreset
 //! - Draggable resize handle on the inner edge
 //! - Support for left/right placement
@@ -88,14 +88,17 @@ pub fn sidebar_shadow() -> Vec<BoxShadow> {
     ]
 }
 
-/// A resizable sidebar panel with built-in shadow and glass surface effects.
+/// A resizable sidebar panel with a theme-controlled shadow and glass surface effects.
 ///
 /// SidebarShell provides a container for sidebar content that handles:
 /// - Absolute positioning with configurable inset from window edges
-/// - 3-layer shadow elevation for depth perception
+/// - A single complete panel shadow, controlled by its elevation
 /// - Glass blur and noise effects via SurfacePreset::panel()
 /// - Draggable resize handle with hover feedback
 ///
+/// The default elevation is [`ElevationToken::Sm`]. Large elevations may require
+/// a larger inset near window edges to avoid native-window clipping.
+///
 /// The component uses a builder pattern for configuration and implements
 /// `ParentElement` for adding child content, `Styled` for style refinement,
 /// and `RenderOnce` for rendering.
@@ -110,12 +113,10 @@ pub fn sidebar_shadow() -> Vec<BoxShadow> {
 ///
 /// ```text
 /// +-- Outer Container (absolute, inset from edges) --+
-/// |  +-- Shadow Wrapper (3-layer shadow) ----------+ |
-/// |  |  +-- Surface (glass effects) -------------+ | |
-/// |  |  |                                        | | |
-/// |  |  |  [Child Content]                       | | |
-/// |  |  |                                        | | |
-/// |  |  +----------------------------------------+ | |
+/// |  +-- Surface (shadow + glass effects) --------+ |
+/// |  |                                            | |
+/// |  |  [Child Content]                           | |
+/// |  |                                            | |
 /// |  +--------------------------------------------+ |
 /// |  [Resizer Handle] (on inner edge)              |
 /// +------------------------------------------------+
@@ -137,8 +138,8 @@ pub struct SidebarShell {
     on_resize_start: Option<Rc<dyn Fn(Pixels, Pixels, &mut Window, &mut App)>>,
     /// Callback invoked when resize ends (mouse up).
     on_resize_end: Option<Rc<dyn Fn(&mut Window, &mut App)>>,
-    /// Shadow elevation level for the sidebar panel.
-    /// Default: `ElevationToken::Lg` for a prominent floating appearance.
+    /// Shadow elevation level for the complete sidebar panel.
+    /// Default: `ElevationToken::Sm`.
     elevation: ElevationToken,
     /// Placement side (left or right).
     side: Side,
@@ -196,7 +197,7 @@ impl SidebarShell {
             resizer_hover_bg: None,
             on_resize_start: None,
             on_resize_end: None,
-            elevation: ElevationToken::Lg,
+            elevation: ElevationToken::Sm,
             side,
             inset: None,
             top_inset: px(0.0),
@@ -322,11 +323,11 @@ impl SidebarShell {
         self
     }
 
-    /// Sets the shadow elevation level for the sidebar panel.
+    /// Sets the shadow elevation level for the complete sidebar panel.
     ///
-    /// Controls the shadow depth and intensity using the theme's elevation
-    /// system. Higher values create more pronounced floating appearance.
-    /// Default: `ElevationToken::Lg`.
+    /// Controls the single panel shadow using the theme's elevation system.
+    /// Default: `ElevationToken::Sm`. Large elevations may require a larger
+    /// inset near window edges to avoid native-window clipping.
     ///
     /// # Example
     ///
@@ -375,6 +376,7 @@ impl RenderOnce for SidebarShell {
             .unwrap_or_else(|| GlobalState::global(cx).blur_enabled());
 
         let sidebar_surface = SurfacePreset::panel()
+            .with_elevation(self.elevation)
             .wrap_with_bounds(
                 div(),
                 sidebar_width,
@@ -411,11 +413,7 @@ impl RenderOnce for SidebarShell {
                     el.right(inset)
                 }
             })
-            .child(
-                self.elevation
-                    .apply(div().id("sidebar-shell-shadow-wrapper").size_full(), cx)
-                    .child(sidebar_surface),
-            )
+            .child(sidebar_surface)
             .child(
                 div()
                     .id("sidebar-shell-resizer")
@@ -452,3 +450,31 @@ impl RenderOnce for SidebarShell {
         outer
     }
 }
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[test]
+    fn test_sidebar_shell_defaults_and_elevation_builder() {
+        let default_shell = SidebarShell::left(px(260.0));
+        assert_eq!(default_shell.elevation, ElevationToken::Sm);
+        assert_eq!(default_shell.min_width, px(DEFAULT_MIN_WIDTH));
+        assert_eq!(default_shell.max_width, px(DEFAULT_MAX_WIDTH));
+        assert_eq!(default_shell.resizer_width, px(DEFAULT_RESIZER_WIDTH));
+        assert_eq!(default_shell.inset, None);
+        assert_eq!(default_shell.side, Side::Left);
+
+        let no_shadow = SidebarShell::left(px(260.0)).elevation(ElevationToken::None);
+        assert_eq!(no_shadow.elevation, ElevationToken::None);
+
+        let large_shadow = SidebarShell::right(px(300.0))
+            .inset(px(12.0))
+            .resizer_width(px(8.0))
+            .elevation(ElevationToken::Lg);
+        assert_eq!(large_shadow.elevation, ElevationToken::Lg);
+        assert_eq!(large_shadow.inset, Some(px(12.0)));
+        assert_eq!(large_shadow.resizer_width, px(8.0));
+        assert_eq!(large_shadow.side, Side::Right);
+    }
+}
diff --git a/crates/ui/src/surface/mod.rs b/crates/ui/src/surface/mod.rs
index 023e1f8b..b8d6f911 100644
--- a/crates/ui/src/surface/mod.rs
+++ b/crates/ui/src/surface/mod.rs
@@ -347,10 +347,9 @@ impl SurfacePreset {
     /// Wraps content in a surface container with all configured effects.
     ///
     /// This method creates a complete surface element with:
-    /// - Background color with transparency
-    /// - Backdrop blur (if enabled and configured)
-    /// - Border/stroke styling
-    /// - Elevation shadows
+    /// - One rounded clip shared by the background, backdrop blur, noise, and content
+    /// - Border/stroke styling using the same rounded geometry
+    /// - Elevation shadows painted outside the rounded clip
     /// - Noise overlay (if blur is enabled)
     pub fn wrap_with_bounds(
         &self,
@@ -392,10 +391,9 @@ impl SurfacePreset {
         surface = elevation.apply(surface, cx);
 
         if should_render_noise {
-            surface = surface.child(render_noise_overlay(
+            surface = surface.child(render_noise_overlay_unclipped(
                 width,
                 height,
-                radius,
                 noise_opacity,
                 scale_factor,
             ));
@@ -483,40 +481,163 @@ pub fn render_noise_overlay(
     opacity: f32,
     scale_factor: f32,
 ) -> impl IntoElement {
-    let tile_size_value = (GLASS_NOISE_TILE_SIZE_BASE / scale_factor.max(1.0)).round();
-    let tile_size = px(tile_size_value);
-    let cols = ((width / tile_size).max(0.0).ceil() as usize).max(1) + 12;
-    let rows = ((height / tile_size).max(0.0).ceil() as usize).max(1) + 12;
-    let tiled_width = px(tile_size_value * cols as f32);
-    let tiled_height = px(tile_size_value * rows as f32);
-    let tiles = cols.saturating_mul(rows);
-
     div()
         .absolute()
         .inset_0()
         .size_full()
-        .overflow_hidden()
         .rounded(radius)
-        .child(
+        .overflow_hidden()
+        .child(render_noise_tiles(width, height, opacity, scale_factor))
+}
+
+fn render_noise_overlay_unclipped(
+    width: Pixels,
+    height: Pixels,
+    opacity: f32,
+    scale_factor: f32,
+) -> Div {
+    div()
+        .absolute()
+        .inset_0()
+        .size_full()
+        .child(render_noise_tiles(width, height, opacity, scale_factor))
+}
+
+#[derive(Clone, Copy, Debug, PartialEq)]
+struct NoiseTileLayout {
+    tile_size: Pixels,
+    cols: usize,
+    rows: usize,
+    last_tile_width: Pixels,
+    last_tile_height: Pixels,
+}
+
+fn noise_tile_layout(width: Pixels, height: Pixels, scale_factor: f32) -> NoiseTileLayout {
+    let tile_size_value = (GLASS_NOISE_TILE_SIZE_BASE / scale_factor.max(1.0)).round();
+    let tile_size = px(tile_size_value);
+
+    if width <= px(0.0) || height <= px(0.0) {
+        return NoiseTileLayout {
+            tile_size,
+            cols: 0,
+            rows: 0,
+            last_tile_width: px(0.0),
+            last_tile_height: px(0.0),
+        };
+    }
+
+    let cols = (width / tile_size).ceil() as usize;
+    let rows = (height / tile_size).ceil() as usize;
+    let last_tile_width = width - px(tile_size_value * cols.saturating_sub(1) as f32);
+    let last_tile_height = height - px(tile_size_value * rows.saturating_sub(1) as f32);
+
+    NoiseTileLayout {
+        tile_size,
+        cols,
+        rows,
+        last_tile_width,
+        last_tile_height,
+    }
+}
+
+fn render_noise_tiles(width: Pixels, height: Pixels, opacity: f32, scale_factor: f32) -> Div {
+    let layout = noise_tile_layout(width, height, scale_factor);
+    let tiles = layout.cols.saturating_mul(layout.rows);
+
+    div()
+        .absolute()
+        .top_0()
+        .left_0()
+        .w(width)
+        .h(height)
+        .flex()
+        .flex_wrap()
+        .items_start()
+        .justify_start()
+        .children((0..tiles).map(move |ix| {
+            let col = ix % layout.cols;
+            let row = ix / layout.cols;
+            let tile_width = if col + 1 == layout.cols {
+                layout.last_tile_width
+            } else {
+                layout.tile_size
+            };
+            let tile_height = if row + 1 == layout.rows {
+                layout.last_tile_height
+            } else {
+                layout.tile_size
+            };
+
             div()
-                .absolute()
-                .top_0()
-                .left_0()
-                .w(tiled_width)
-                .h(tiled_height)
-                .flex()
-                .flex_wrap()
-                .items_start()
-                .justify_start()
-                .children((0..tiles).map(move |_| {
+                .w(tile_width)
+                .h(tile_height)
+                .flex_none()
+                .overflow_hidden()
+                .child(
                     img(ImageSource::Resource(Resource::Embedded(
                         GLASS_NOISE_ASSET_PATH.into(),
                     )))
-                    .w(tile_size)
-                    .h(tile_size)
+                    .w(layout.tile_size)
+                    .h(layout.tile_size)
                     .flex_none()
-                    .object_fit(ObjectFit::Cover)
-                    .opacity(opacity)
-                })),
-        )
+                    .object_fit(ObjectFit::Fill)
+                    .opacity(opacity),
+                )
+        }))
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[test]
+    fn test_surface_preset_builder() {
+        let panel = SurfacePreset::panel();
+        assert_eq!(panel.elevation, ElevationToken::Lg);
+        assert!(panel.use_theme_elevation_defaults);
+
+        let overridden = panel.with_elevation(ElevationToken::Sm);
+        assert_eq!(overridden.elevation, ElevationToken::Sm);
+        assert!(!overridden.use_theme_elevation_defaults);
+    }
+
+    #[test]
+    fn noise_tile_layout_handles_exact_multiples() {
+        let layout = noise_tile_layout(px(256.0), px(128.0), 1.0);
+
+        assert_eq!(layout.cols, 2);
+        assert_eq!(layout.rows, 1);
+        assert_eq!(layout.last_tile_width, px(128.0));
+        assert_eq!(layout.last_tile_height, px(128.0));
+    }
+
+    #[test]
+    fn noise_tile_layout_handles_partial_edges() {
+        let layout = noise_tile_layout(px(200.0), px(150.0), 1.0);
+
+        assert_eq!(layout.cols, 2);
+        assert_eq!(layout.rows, 2);
+        assert_eq!(layout.last_tile_width, px(72.0));
+        assert_eq!(layout.last_tile_height, px(22.0));
+    }
+
+    #[test]
+    fn noise_tile_layout_handles_dimensions_smaller_than_a_tile() {
+        let layout = noise_tile_layout(px(40.0), px(60.0), 1.0);
+
+        assert_eq!(layout.cols, 1);
+        assert_eq!(layout.rows, 1);
+        assert_eq!(layout.last_tile_width, px(40.0));
+        assert_eq!(layout.last_tile_height, px(60.0));
+    }
+
+    #[test]
+    fn noise_tile_layout_handles_zero_dimensions() {
+        let layout = noise_tile_layout(px(0.0), px(0.0), 1.0);
+
+        assert_eq!(layout.cols, 0);
+        assert_eq!(layout.rows, 0);
+        assert_eq!(layout.last_tile_width, px(0.0));
+        assert_eq!(layout.last_tile_height, px(0.0));
+    }
 }
diff --git a/crates/ui/src/virtual_list.rs b/crates/ui/src/virtual_list.rs
index 4aef0239..c4edd9a1 100644
--- a/crates/ui/src/virtual_list.rs
+++ b/crates/ui/src/virtual_list.rs
@@ -636,7 +636,10 @@ impl Element for VirtualList {
 
                     let items = (self.render_items)(visible_range.clone(), window, cx);
 
-                    let content_mask = ContentMask { bounds };
+                    let content_mask = ContentMask {
+                        bounds,
+                        ..Default::default()
+                    };
                     window.with_content_mask(Some(content_mask), |window| {
                         for (mut item, ix) in items.into_iter().zip(visible_range.clone()) {
                             let item_origin = content_bounds.origin
diff --git a/crates/webview/src/lib.rs b/crates/webview/src/lib.rs
index 382b0c38..90d15109 100644
--- a/crates/webview/src/lib.rs
+++ b/crates/webview/src/lib.rs
@@ -275,7 +275,11 @@ impl Element for WebViewElement {
         _: &mut App,
     ) {
         let bounds = hitbox.clone().map(|h| h.bounds).unwrap_or(bounds);
-        window.with_content_mask(Some(ContentMask { bounds }), |window| {
+        let content_mask = ContentMask {
+            bounds,
+            ..Default::default()
+        };
+        window.with_content_mask(Some(content_mask), |window| {
             let webview = self.view.clone();
             window.on_mouse_event(move |event: &MouseDownEvent, _, _, _| {
                 if !bounds.contains(&event.position) {
diff --git a/docs/docs/components/sidebar.md b/docs/docs/components/sidebar.md
index b6001273..88f00747 100644
--- a/docs/docs/components/sidebar.md
+++ b/docs/docs/components/sidebar.md
@@ -89,7 +89,9 @@ SidebarToggleButton::new()
 ### Floating Sidebar (SidebarShell + Sidebar)
 
 `FloatingSidebar` composes `SidebarShell` with `Sidebar`, handling resize internally.
-It defaults to an 8px inset from the window edges and can be resized when expanded.
+It defaults to an 8px inset, `ElevationToken::Sm`, and can be resized when expanded.
+The shell elevation controls the complete panel shadow. Larger elevations may need a larger
+inset near window edges to avoid native-window clipping; the inset is never adjusted automatically.
 
 ```rust
 use gpui_component::{FloatingSidebar, Side};
diff --git a/vendor/gpui b/vendor/gpui
index 24cfa81c..4332ea7d 160000
--- a/vendor/gpui
+++ b/vendor/gpui
@@ -1 +1 @@
-Subproject commit 24cfa81ca2a9f954b96320e14b393dd519078618
+Subproject commit 4332ea7deae4838c12bad6ea64292ca22a33cf98