diff --git a/src/vs/base/browser/ui/menu/menu.ts b/src/vs/base/browser/ui/menu/menu.ts
index d9471ad88d4e8dbf0d0b65877c6e3d1b69612ff5..80067f5fb24c2457e85405f2b68ac31fda4ecf59 100644
--- a/src/vs/base/browser/ui/menu/menu.ts
+++ b/src/vs/base/browser/ui/menu/menu.ts
@@ -917,8 +917,9 @@ class SubmenuMenuActionViewItem extends BaseMenuActionViewItem {
 			const viewBox = this.submenuContainer.getBoundingClientRect();
 
 			const { top, left } = this.calculateSubmenuMenuLayout(new Dimension(window.innerWidth, window.innerHeight), Dimension.lift(viewBox), entryBoxUpdated, this.expandDirection);
-			this.submenuContainer.style.left = `${left}px`;
-			this.submenuContainer.style.top = `${top}px`;
+			// subtract offsets caused by transform parent
+			this.submenuContainer.style.left = `${left - viewBox.left}px`;
+			this.submenuContainer.style.top = `${top - viewBox.top}px`;
 
 			this.submenuDisposables.add(addDisposableListener(this.submenuContainer, EventType.KEY_UP, e => {
 				let event = new StandardKeyboardEvent(e);