diff --git a/.playwright/snapshots/components/Overlay.test.ts-snapshots/Overlay-Setting-Max-Height-dark-colorblind-linux.png b/.playwright/snapshots/components/Overlay.test.ts-snapshots/Overlay-Setting-Max-Height-dark-colorblind-linux.png
index 5feeb9b5bac..f958e59e585 100644
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diff --git a/.playwright/snapshots/components/Overlay.test.ts-snapshots/Overlay-Setting-Max-Height-dark-dimmed-linux.png b/.playwright/snapshots/components/Overlay.test.ts-snapshots/Overlay-Setting-Max-Height-dark-dimmed-linux.png
index 5fb1f3c215f..31a0f588507 100644
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diff --git a/.playwright/snapshots/components/Overlay.test.ts-snapshots/Overlay-Setting-Max-Height-dark-high-contrast-linux.png b/.playwright/snapshots/components/Overlay.test.ts-snapshots/Overlay-Setting-Max-Height-dark-high-contrast-linux.png
index 7f37892af41..423a27297b5 100644
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diff --git a/.playwright/snapshots/components/Overlay.test.ts-snapshots/Overlay-Setting-Max-Height-dark-linux.png b/.playwright/snapshots/components/Overlay.test.ts-snapshots/Overlay-Setting-Max-Height-dark-linux.png
index 5feeb9b5bac..f958e59e585 100644
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diff --git a/.playwright/snapshots/components/Overlay.test.ts-snapshots/Overlay-Setting-Max-Height-dark-tritanopia-linux.png b/.playwright/snapshots/components/Overlay.test.ts-snapshots/Overlay-Setting-Max-Height-dark-tritanopia-linux.png
index 5feeb9b5bac..f958e59e585 100644
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diff --git a/.playwright/snapshots/components/Overlay.test.ts-snapshots/Overlay-Setting-Max-Height-light-colorblind-linux.png b/.playwright/snapshots/components/Overlay.test.ts-snapshots/Overlay-Setting-Max-Height-light-colorblind-linux.png
index b6699ae233a..0ea7245d252 100644
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diff --git a/.playwright/snapshots/components/Overlay.test.ts-snapshots/Overlay-Setting-Max-Height-light-high-contrast-linux.png b/.playwright/snapshots/components/Overlay.test.ts-snapshots/Overlay-Setting-Max-Height-light-high-contrast-linux.png
index 849ae789597..e00c93c5cda 100644
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diff --git a/.playwright/snapshots/components/Overlay.test.ts-snapshots/Overlay-Setting-Max-Height-light-linux.png b/.playwright/snapshots/components/Overlay.test.ts-snapshots/Overlay-Setting-Max-Height-light-linux.png
index b6699ae233a..0ea7245d252 100644
Binary files a/.playwright/snapshots/components/Overlay.test.ts-snapshots/Overlay-Setting-Max-Height-light-linux.png and b/.playwright/snapshots/components/Overlay.test.ts-snapshots/Overlay-Setting-Max-Height-light-linux.png differ
diff --git a/.playwright/snapshots/components/Overlay.test.ts-snapshots/Overlay-Setting-Max-Height-light-tritanopia-linux.png b/.playwright/snapshots/components/Overlay.test.ts-snapshots/Overlay-Setting-Max-Height-light-tritanopia-linux.png
index b6699ae233a..0ea7245d252 100644
Binary files a/.playwright/snapshots/components/Overlay.test.ts-snapshots/Overlay-Setting-Max-Height-light-tritanopia-linux.png and b/.playwright/snapshots/components/Overlay.test.ts-snapshots/Overlay-Setting-Max-Height-light-tritanopia-linux.png differ
diff --git a/packages/react/src/Overlay/Overlay.features.stories.tsx b/packages/react/src/Overlay/Overlay.features.stories.tsx
index 02b88878210..b674df81904 100644
--- a/packages/react/src/Overlay/Overlay.features.stories.tsx
+++ b/packages/react/src/Overlay/Overlay.features.stories.tsx
@@ -606,15 +606,15 @@ export const PositionedOverlays = ({right, role, open}: Args) => {
   )
 }
 
-export const SettingMaxHeight = () => {
+export const SettingMaxHeight = ({open}: Args) => {
   const [isOpen, setIsOpen] = useState(false)
   const buttonRef = useRef<HTMLButtonElement>(null)
-  const confirmButtonRef = useRef<HTMLButtonElement>(null)
+  const closeButtonRef = useRef<HTMLButtonElement>(null)
   const closeOverlay = () => setIsOpen(false)
   const containerRef = useRef<HTMLDivElement>(null)
   useFocusTrap({
     containerRef,
-    disabled: !isOpen,
+    disabled: !isOpen && !open,
   })
 
   return (
@@ -627,9 +627,9 @@ export const SettingMaxHeight = () => {
       >
         Open overlay with max height
       </Button>
-      {isOpen ? (
+      {isOpen || open ? (
         <Overlay
-          initialFocusRef={confirmButtonRef}
+          initialFocusRef={closeButtonRef}
           returnFocusRef={buttonRef}
           ignoreClickRefs={[buttonRef]}
           onEscape={closeOverlay}
@@ -644,7 +644,7 @@ export const SettingMaxHeight = () => {
         >
           <div className={classes.ScrollableContent}>
             <IconButton
-              ref={confirmButtonRef}
+              ref={closeButtonRef}
               aria-label="Close"
               onClick={closeOverlay}
               icon={XIcon}