diff --git a/src/wayland/handlers/compositor.rs b/src/wayland/handlers/compositor.rs
index 19ef2b7d..b972a603 100644
--- a/src/wayland/handlers/compositor.rs
+++ b/src/wayland/handlers/compositor.rs
@@ -281,6 +281,10 @@ impl CompositorHandler for State {
 
         if let Some(popup) = self.common.popups.find_popup(surface) {
             xdg_popup_ensure_initial_configure(&popup);
+            // The IME popup need to be repositioned when the size changed
+            if let PopupKind::InputMethod(_) = popup {
+                shell.unconstrain_popup(&popup);
+            }
             return;
         }
 
diff --git a/src/wayland/handlers/input_method.rs b/src/wayland/handlers/input_method.rs
index 5b4aa59a..8b92461b 100644
--- a/src/wayland/handlers/input_method.rs
+++ b/src/wayland/handlers/input_method.rs
@@ -12,6 +12,11 @@ use tracing::warn;
 
 impl InputMethodHandler for State {
     fn new_popup(&mut self, surface: PopupSurface) {
+        self.common
+            .shell
+            .read()
+            .unconstrain_popup(&PopupKind::from(surface.clone()));
+
         if let Err(err) = self.common.popups.track_popup(PopupKind::from(surface)) {
             warn!("Failed to track popup: {}", err);
         }
@@ -32,7 +37,9 @@ impl InputMethodHandler for State {
             .unwrap_or_default()
     }
 
-    fn popup_repositioned(&mut self, _: PopupSurface) {}
+    fn popup_repositioned(&mut self, popup: PopupSurface) {
+        self.common.shell.read().unconstrain_popup(&popup.into());
+    }
 }
 
 delegate_input_method_manager!(State);
diff --git a/src/wayland/handlers/xdg_shell/popup.rs b/src/wayland/handlers/xdg_shell/popup.rs
index 15aeed31..965e8908 100644
--- a/src/wayland/handlers/xdg_shell/popup.rs
+++ b/src/wayland/handlers/xdg_shell/popup.rs
@@ -4,7 +4,7 @@ use crate::{shell::Shell, utils::prelude::*};
 use smithay::{
     desktop::{
         LayerSurface, PopupKind, PopupManager, WindowSurfaceType, get_popup_toplevel_coords,
-        layer_map_for_output, space::SpaceElement,
+        layer_map_for_output, space::SpaceElement, utils,
     },
     output::Output,
     reexports::{
@@ -175,7 +175,33 @@ fn position_popup_within_rect(
             });
             rect.contains_rect(geometry)
         }
-        PopupKind::InputMethod(_) => false,
+        PopupKind::InputMethod(popup) => {
+            let input_rect = popup.text_input_rectangle();
+
+            // We basically place the IME popup below the input rect.
+            let mut popup_bbox = utils::bbox_from_surface_tree(popup.wl_surface(), input_rect.loc);
+            popup_bbox.loc.y += input_rect.size.h;
+            // tracing::debug!(
+            //     "IME input_rect: {:?}, popup_bbox: {:?}",
+            //     input_rect,
+            //     popup_bbox
+            // );
+
+            // Handle the right edge overflow
+            let popup_right = popup_bbox.loc.x + popup_bbox.size.w;
+            let rect_right = rect.loc.x + rect.size.w;
+            popup_bbox.loc.x -= (popup_right - rect_right).max(0);
+
+            // Flip vertically if the bottom edge overflows
+            let popup_bottom = popup_bbox.loc.y + popup_bbox.size.h;
+            let rect_bottom = rect.loc.y + rect.size.h;
+            if popup_bottom > rect_bottom {
+                popup_bbox.loc.y = input_rect.loc.y - popup_bbox.size.h;
+            }
+
+            popup.set_location(popup_bbox.loc);
+            rect.as_logical().contains_rect(popup_bbox)
+        }
     }
 }