diff --git a/modules/HoverPanel.qml b/modules/HoverPanel.qml
index 59f1e44..2b3a80b 100644
--- a/modules/HoverPanel.qml
+++ b/modules/HoverPanel.qml
@@ -44,16 +44,19 @@ PanelWindow {
     property bool _winVisible: false
     property bool _pinned: false
     property real _dragStartX: 0
+    property real _dragStartY: 0
+    property bool _dragging: false
 
-    // When pinned, only the header bar receives input — content passes through to desktop.
-    // Full header width allows drag-to-reposition; pin button tap is within that region too.
-    mask: _pinned ? _pinMask : null
+    // When pinned: mask = full panel so content is interactive, desktop accessible outside.
+    // When dragging: mask = null (full screen) so Niri keeps delivering events when cursor
+    // leaves the panel bounds mid-drag.
+    mask: (_pinned && !_dragging) ? _pinMask : null
 
     property Region _pinMask: Region {
         x: panelContainer.x
-        y: 0
+        y: panelContainer.y
         width: panelContainer.width
-        height: 24
+        height: panelContainer.height
     }
 
     WlrLayershell.layer: WlrLayer.Overlay
@@ -84,10 +87,12 @@ PanelWindow {
 
     // Grace period: after _show(), suppress auto-close briefly so Niri has time
     // to route wl_pointer.enter to the new overlay surface (cursor may be stationary).
+    // Popup mode gets a longer window (1500ms) so the user can move the cursor to the
+    // panel content after clicking the bar without accidentally dismissing it.
     property bool _grace: false
     Timer {
         id: _graceTimer
-        interval: 400
+        interval: root.popupMode ? 1500 : 400
         onTriggered: {
             root._grace = false;
             if (!root.showPanel && !root._pinned)
@@ -203,7 +208,8 @@ PanelWindow {
             enabled: !root._grace
             onTapped: {
                 const p = point.position;
-                if (p.x < panelContainer.x || p.x > panelContainer.x + panelContainer.width || p.y < panelContainer.y || p.y > panelContainer.y + panelContainer.height)
+                const pad = 8;
+                if (p.x < panelContainer.x - pad || p.x > panelContainer.x + panelContainer.width + pad || p.y < panelContainer.y - pad || p.y > panelContainer.y + panelContainer.height + pad)
                     root.dismiss();
             }
         }
@@ -244,16 +250,24 @@ PanelWindow {
                 width: parent.width
                 height: 24
 
-                // Drag header to reposition panel while pinned (hover mode only)
+                // Drag header to freely reposition panel while pinned (hover mode only).
+                // _dragging clears the input mask so Niri keeps delivering events when the
+                // cursor leaves the panel bounds during a fast drag.
                 DragHandler {
                     enabled: root._pinned && !root.popupMode
-                    yAxis.enabled: false
-                    onActiveChanged: if (active)
-                        root._dragStartX = panelContainer.x
+                    onActiveChanged: {
+                        root._dragging = active;
+                        if (active) {
+                            root._dragStartX = panelContainer.x;
+                            root._dragStartY = panelContainer.y;
+                        }
+                    }
                     onActiveTranslationChanged: {
                         if (active) {
                             const sw = root.screen?.width ?? 1920;
+                            const sh = root.screen?.height ?? 1080;
                             panelContainer.x = Math.max(0, Math.min(root._dragStartX + activeTranslation.x, sw - root.contentWidth));
+                            panelContainer.y = Math.max(0, Math.min(root._dragStartY + activeTranslation.y, sh - panelContainer.height));
                         }
                     }
                 }
@@ -261,7 +275,7 @@ PanelWindow {
                 // Show move cursor on header when pinned
                 HoverHandler {
                     enabled: root._pinned && !root.popupMode
-                    cursorShape: Qt.SizeHorCursor
+                    cursorShape: Qt.SizeAllCursor
                 }
 
                 Text {