diff --git a/packages/flutter/lib/src/widgets/app.dart b/packages/flutter/lib/src/widgets/app.dart
index 06482436d47..6c344b322be 100644
--- a/packages/flutter/lib/src/widgets/app.dart
+++ b/packages/flutter/lib/src/widgets/app.dart
@@ -1623,6 +1623,7 @@ class _WidgetsAppState extends State<WidgetsApp> with WidgetsBindingObserver {
         debugLabel: 'Navigator Scope',
         autofocus: true,
         child: Navigator(
+          clipBehavior: Clip.none,
           restorationScopeId: 'nav',
           key: _navigator,
           initialRoute: _initialRouteName,
diff --git a/packages/flutter/lib/src/widgets/overlay.dart b/packages/flutter/lib/src/widgets/overlay.dart
index 61e75d41464..77088b105a9 100644
--- a/packages/flutter/lib/src/widgets/overlay.dart
+++ b/packages/flutter/lib/src/widgets/overlay.dart
@@ -702,8 +702,6 @@ class _RenderTheatre extends RenderBox with ContainerRenderObjectMixin<RenderBox
     addAll(children);
   }
 
-  bool _hasVisualOverflow = false;
-
   @override
   void setupParentData(RenderBox child) {
     if (child.parentData is! StackParentData) {
@@ -827,8 +825,6 @@ class _RenderTheatre extends RenderBox with ContainerRenderObjectMixin<RenderBox
 
   @override
   void performLayout() {
-    _hasVisualOverflow = false;
-
     if (_onstageChildCount == 0) {
       return;
     }
@@ -847,7 +843,7 @@ class _RenderTheatre extends RenderBox with ContainerRenderObjectMixin<RenderBox
         child.layout(nonPositionedConstraints, parentUsesSize: true);
         childParentData.offset = _resolvedAlignment!.alongOffset(size - child.size as Offset);
       } else {
-        _hasVisualOverflow = RenderStack.layoutPositionedChild(child, childParentData, size, _resolvedAlignment!) || _hasVisualOverflow;
+        RenderStack.layoutPositionedChild(child, childParentData, size, _resolvedAlignment!);
       }
 
       assert(child.parentData == childParentData);
@@ -889,7 +885,7 @@ class _RenderTheatre extends RenderBox with ContainerRenderObjectMixin<RenderBox
 
   @override
   void paint(PaintingContext context, Offset offset) {
-    if (_hasVisualOverflow && clipBehavior != Clip.none) {
+    if (clipBehavior != Clip.none) {
       _clipRectLayer.layer = context.pushClipRect(
         needsCompositing,
         offset,
@@ -930,7 +926,7 @@ class _RenderTheatre extends RenderBox with ContainerRenderObjectMixin<RenderBox
       case Clip.hardEdge:
       case Clip.antiAlias:
       case Clip.antiAliasWithSaveLayer:
-        return _hasVisualOverflow ? Offset.zero & size : null;
+        return Offset.zero & size;
     }
   }
 
diff --git a/packages/flutter/test/cupertino/action_sheet_test.dart b/packages/flutter/test/cupertino/action_sheet_test.dart
index b8ba5780684..92476ab19df 100644
--- a/packages/flutter/test/cupertino/action_sheet_test.dart
+++ b/packages/flutter/test/cupertino/action_sheet_test.dart
@@ -953,7 +953,7 @@ void main() {
     );
 
     await tester.tap(find.text('Go'));
-    await tester.pump();
+    await tester.pumpAndSettle();
 
     expect(
       semantics,
diff --git a/packages/flutter/test/widgets/overlay_test.dart b/packages/flutter/test/widgets/overlay_test.dart
index eef17b9c6ad..b154f77c15c 100644
--- a/packages/flutter/test/widgets/overlay_test.dart
+++ b/packages/flutter/test/widgets/overlay_test.dart
@@ -6,6 +6,7 @@ import 'package:flutter/foundation.dart';
 import 'package:flutter/widgets.dart';
 import 'package:flutter_test/flutter_test.dart';
 
+import '../rendering/mock_canvas.dart';
 import 'semantics_tester.dart';
 
 void main() {
@@ -1119,6 +1120,28 @@ void main() {
     }
   });
 
+  testWidgets('Overlay always applies clip', (WidgetTester tester) async {
+    await tester.pumpWidget(
+      Directionality(
+        textDirection: TextDirection.ltr,
+        child: Overlay(
+          initialEntries: <OverlayEntry>[
+            OverlayEntry(
+              builder: (BuildContext context) => Positioned(left: 10, right: 10, child: Container()),
+            ),
+          ],
+        ),
+      ),
+    );
+    final RenderObject renderObject = tester.renderObject(find.byType(Overlay));
+    // ignore: avoid_dynamic_calls
+    expect((renderObject as dynamic).paint, paints
+      ..save()
+      ..clipRect(rect: const Rect.fromLTWH(0.0, 0.0, 800.0, 600.0))
+      ..restore(),
+    );
+  });
+
   group('OverlayEntry listenable', () {
     final GlobalKey overlayKey = GlobalKey();
     final Widget emptyOverlay = Directionality(