diff --git a/packages/block-editor/src/components/url-popover/image-url-input-ui.js b/packages/block-editor/src/components/url-popover/image-url-input-ui.js
index 1066b50e1ed2bf..f3680358c436a9 100644
--- a/packages/block-editor/src/components/url-popover/image-url-input-ui.js
+++ b/packages/block-editor/src/components/url-popover/image-url-input-ui.js
@@ -51,6 +51,7 @@ const ImageURLInputUI = ( {
 	rel,
 } ) => {
 	const [ isOpen, setIsOpen ] = useState( false );
+	const buttonRef = useRef( null );
 	const openLinkUI = useCallback( () => {
 		setIsOpen( true );
 	} );
@@ -245,9 +246,11 @@ const ImageURLInputUI = ( {
 				label={ url ? __( 'Edit link' ) : __( 'Insert link' ) }
 				aria-expanded={ isOpen }
 				onClick={ openLinkUI }
+				ref={ buttonRef }
 			/>
 			{ isOpen && (
 				<URLPopover
+					anchorRef={ buttonRef }
 					onFocusOutside={ onFocusOutside() }
 					onClose={ closeLinkUI }
 					renderSettings={ () => advancedOptions }
diff --git a/packages/components/CHANGELOG.md b/packages/components/CHANGELOG.md
index f3b42ea3a185bb..71f81688c2e234 100644
--- a/packages/components/CHANGELOG.md
+++ b/packages/components/CHANGELOG.md
@@ -13,6 +13,7 @@
 -   `Popover`: fix arrow placement and design ([#42874](https://github.com/WordPress/gutenberg/pull/42874/)).
 -   `Popover`: fix minor glitch in arrow [#42903](https://github.com/WordPress/gutenberg/pull/42903)).
 -   `ToolsPanel`: Constrain grid columns to 50% max-width ([#42795](https://github.com/WordPress/gutenberg/pull/42795)).
+-   `Popover`: anchor correctly to parent node when no explicit anchor is passed ([#42971](https://github.com/WordPress/gutenberg/pull/42971)).
 
 ### Enhancements
 
diff --git a/packages/components/src/popover/index.js b/packages/components/src/popover/index.js
index ef3d515587fd25..0dac37685281d9 100644
--- a/packages/components/src/popover/index.js
+++ b/packages/components/src/popover/index.js
@@ -351,7 +351,9 @@ const Popover = (
 				},
 			};
 		} else if ( anchorRefFallback.current ) {
-			resultingReferenceRef = anchorRefFallback.current;
+			// If no explicit ref is passed via props, fall back to
+			// anchoring to the popover's parent node.
+			resultingReferenceRef = anchorRefFallback.current.parentNode;
 		}
 
 		if ( ! resultingReferenceRef ) {
diff --git a/packages/components/src/popover/style.scss b/packages/components/src/popover/style.scss
index 13649142c2caec..d8b57e50013766 100644
--- a/packages/components/src/popover/style.scss
+++ b/packages/components/src/popover/style.scss
@@ -65,6 +65,7 @@ $arrow-triangle-base-size: 14px;
 	width: $arrow-triangle-base-size;
 	height: $arrow-triangle-base-size;
 	pointer-events: none;
+	display: flex;
 
 	// Thin line that helps to make sure that the underlying
 	// popover__content's outline is fully overlapped by the
@@ -103,9 +104,8 @@ $arrow-triangle-base-size: 14px;
 }
 
 .components-popover__triangle {
-	position: absolute;
-	height: 100%;
-	width: 100%;
+	display: block;
+	flex: 1;
 }
 
 .components-popover__triangle-bg {