diff --git a/projects/packages/premium-analytics/changelog/storybook-drawer-stacking b/projects/packages/premium-analytics/changelog/storybook-drawer-stacking
new file mode 100644
index 000000000000..f0599714e1fa
--- /dev/null
+++ b/projects/packages/premium-analytics/changelog/storybook-drawer-stacking
@@ -0,0 +1,4 @@
+Significance: patch
+Type: fixed
+
+Keep the widget settings drawer above widget chrome in dashboard Storybook stories.
diff --git a/projects/packages/premium-analytics/widgets/stories/widget-dashboard-with-widget.tsx b/projects/packages/premium-analytics/widgets/stories/widget-dashboard-with-widget.tsx
index 213eda1c0a26..830363fea513 100644
--- a/projects/packages/premium-analytics/widgets/stories/widget-dashboard-with-widget.tsx
+++ b/projects/packages/premium-analytics/widgets/stories/widget-dashboard-with-widget.tsx
@@ -188,6 +188,14 @@ export function WidgetDashboardWithWidget( {
 				 * wp-admin viewport. Without a definite height the page collapses to its
 				 * content height and the fixed-row-height grid resizes it back on every
 				 * vertical widget resize, so the two oscillate and the grid flickers.
+				 *
+				 * `isolation: isolate` keeps dashboard-internal z-indexes (widget
+				 * headers, resize handles) inside this box's stacking context. The
+				 * settings drawer has no z-index of its own (`--wp-ui-drawer-z-index`
+				 * defaults to `initial`), so without the isolation those `z-index: 1`
+				 * elements escalate to the document level and paint over the
+				 * body-portaled drawer — in the real dashboard the wp-admin shell
+				 * provides this containing stacking context.
 				 */ }
 				<div
 					style={ {
@@ -195,6 +203,7 @@ export function WidgetDashboardWithWidget( {
 						display: 'flex',
 						flexDirection: 'column',
 						inlineSize: '100%',
+						isolation: 'isolate',
 						overflowX: 'auto',
 					} }
 				>