diff --git a/src/vs/workbench/browser/parts/activitybar/media/activitybarpart.css b/src/vs/workbench/browser/parts/activitybar/media/activitybarpart.css
index 0219d6aa22cc331db990e11f11c7e156995dab1e..51871f7106e3f565e40827fbdca6acafcdfad168 100644
--- a/src/vs/workbench/browser/parts/activitybar/media/activitybarpart.css
+++ b/src/vs/workbench/browser/parts/activitybar/media/activitybarpart.css
@@ -19,6 +19,7 @@
 	 * macOS: does not render LCD-anti-aliased.
 	 */
 	transform: translate3d(0px, 0px, 0px);
+	overflow: visible; /* when a new layer is created, we need to set overflow visible to avoid clipping the menubar */
 }
 
 .monaco-workbench .activitybar > .content {