diff --git a/projects/igniteui-angular/src/lib/grids/grid/grid-toolbar.spec.ts b/projects/igniteui-angular/src/lib/grids/grid/grid-toolbar.spec.ts
index 4c94a942292..87839de3fcf 100644
--- a/projects/igniteui-angular/src/lib/grids/grid/grid-toolbar.spec.ts
+++ b/projects/igniteui-angular/src/lib/grids/grid/grid-toolbar.spec.ts
@@ -1,7 +1,7 @@
 import { Component, ViewChild } from '@angular/core';
 import { TestBed, fakeAsync, ComponentFixture, tick, waitForAsync } from '@angular/core/testing';
 import { NoopAnimationsModule } from '@angular/platform-browser/animations';
-import { AbsoluteScrollStrategy, GlobalPositionStrategy, IgxCsvExporterService, IgxExcelExporterService } from '../../services/public_api';
+import { AbsoluteScrollStrategy, AutoPositionStrategy, GlobalPositionStrategy, IgxCsvExporterService, IgxExcelExporterService } from '../../services/public_api';
 import { IgxGridComponent } from './public_api';
 import { GridFunctions } from "../../test-utils/grid-functions.spec";
 import { By } from "@angular/platform-browser";
@@ -207,6 +207,16 @@ describe('IgxGrid - Grid Toolbar #grid - ', () => {
             expect(defaultExportSettings).not.toEqual(instance.exporterAction.overlaySettings);
         });
 
+        it('should use AutoPositionStrategy for toolbar action dropdowns by default', () => {
+            const hidingSettings = instance.hidingAction.overlaySettings;
+            const pinningSettings = instance.pinningAction.overlaySettings;
+            const exporterSettings = instance.exporterAction.overlaySettings;
+
+            expect(hidingSettings.positionStrategy instanceof AutoPositionStrategy).toBe(true);
+            expect(pinningSettings.positionStrategy instanceof AutoPositionStrategy).toBe(true);
+            expect(exporterSettings.positionStrategy instanceof AutoPositionStrategy).toBe(true);
+        });
+
         it('should initialize input property columnsAreaMaxHeight properly', fakeAsync(() => {
             expect(instance.pinningAction.columnsAreaMaxHeight).toEqual('100%');
 
diff --git a/projects/igniteui-angular/src/lib/grids/toolbar/grid-toolbar.base.ts b/projects/igniteui-angular/src/lib/grids/toolbar/grid-toolbar.base.ts
index cb3a3c69c9a..e386ac9fad6 100644
--- a/projects/igniteui-angular/src/lib/grids/toolbar/grid-toolbar.base.ts
+++ b/projects/igniteui-angular/src/lib/grids/toolbar/grid-toolbar.base.ts
@@ -9,7 +9,7 @@ import { IgxColumnActionsComponent } from '../column-actions/column-actions.comp
 import { IgxToggleDirective, ToggleViewCancelableEventArgs, ToggleViewEventArgs } from '../../directives/toggle/toggle.directive';
 import { HorizontalAlignment, OverlaySettings, VerticalAlignment } from '../../services/overlay/utilities';
 import { IgxToolbarToken } from './token';
-import { ConnectedPositioningStrategy } from '../../services/overlay/position/connected-positioning-strategy';
+import { AutoPositionStrategy } from '../../services/overlay/position/auto-position-strategy';
 
 /* blazorInclude */
 /* blazorElement */
@@ -88,7 +88,7 @@ export abstract class BaseToolbarDirective implements OnDestroy {
     private $sub: Subscription;
 
     private _overlaySettings: OverlaySettings = {
-        positionStrategy: new ConnectedPositioningStrategy({
+        positionStrategy: new AutoPositionStrategy({
             horizontalDirection: HorizontalAlignment.Left,
             horizontalStartPoint: HorizontalAlignment.Right,
             verticalDirection: VerticalAlignment.Bottom,