diff --git a/packages/edit-post/src/components/visual-editor/index.js b/packages/edit-post/src/components/visual-editor/index.js
index aebef455fe74d1..f888630afeca19 100644
--- a/packages/edit-post/src/components/visual-editor/index.js
+++ b/packages/edit-post/src/components/visual-editor/index.js
@@ -346,7 +346,7 @@ export default function VisualEditor( { styles } ) {
 			__unstableContentRef={ ref }
 			className={ classnames( 'edit-post-visual-editor', {
 				'is-template-mode': isTemplateMode,
-				'is-isolated': isToBeIframed,
+				'has-inline-canvas': ! isToBeIframed,
 			} ) }
 		>
 			<motion.div
diff --git a/packages/edit-post/src/components/visual-editor/style.scss b/packages/edit-post/src/components/visual-editor/style.scss
index 456790eb5bc0cf..fa61cc9889cf9c 100644
--- a/packages/edit-post/src/components/visual-editor/style.scss
+++ b/packages/edit-post/src/components/visual-editor/style.scss
@@ -2,7 +2,9 @@
 	position: relative;
 	display: flex;
 	flex-flow: column;
-	&.is-isolated {
+	// In the iframed canvas this keeps extra scrollbars from appearing (when block toolbars overflow). In the
+	// legacy (non-iframed) canvas, overflow must not be hidden in order to maintain support for sticky positioning.
+	&:not(.has-inline-canvas) {
 		overflow: hidden;
 	}