diff --git a/packages/react/package.json b/packages/react/package.json
index 5e5cde8efc..661a30dcdb 100644
--- a/packages/react/package.json
+++ b/packages/react/package.json
@@ -60,7 +60,7 @@
   "dependencies": {
     "@blocknote/core": "0.37.0",
     "@emoji-mart/data": "^1.2.1",
-    "@floating-ui/react": "^0.26.4",
+    "@floating-ui/react": "^0.27.16",
     "@tiptap/core": "^2.26.1",
     "@tiptap/pm": "^2.26.1",
     "@tiptap/react": "^2.26.1",
diff --git a/packages/react/src/components/SuggestionMenu/SuggestionMenuController.tsx b/packages/react/src/components/SuggestionMenu/SuggestionMenuController.tsx
index 9a6e4748ba..f904b8169e 100644
--- a/packages/react/src/components/SuggestionMenu/SuggestionMenuController.tsx
+++ b/packages/react/src/components/SuggestionMenu/SuggestionMenuController.tsx
@@ -123,6 +123,7 @@ export function SuggestionMenuController<
           apply({ availableHeight, elements }) {
             Object.assign(elements.floating.style, {
               maxHeight: `${availableHeight - 10}px`,
+              minHeight: "300px",
             });
           },
         }),
diff --git a/packages/react/src/hooks/useUIElementPositioning.ts b/packages/react/src/hooks/useUIElementPositioning.ts
index f941926212..a23773faee 100644
--- a/packages/react/src/hooks/useUIElementPositioning.ts
+++ b/packages/react/src/hooks/useUIElementPositioning.ts
@@ -51,10 +51,6 @@ export function useUIElementPositioning(
 
   const { getReferenceProps, getFloatingProps } = useInteractions([dismiss]);
 
-  useEffect(() => {
-    update();
-  }, [referencePos, update]);
-
   useEffect(() => {
     // Will be null on initial render when used in UI component controllers.
     if (referencePos === null) {
@@ -70,7 +66,9 @@ export function useUIElementPositioning(
         getBoundingClientRect: () => referencePos,
       });
     }
-  }, [referencePos, refs]);
+
+    update();
+  }, [referencePos, refs, update]);
 
   return useMemo(() => {
     return {
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 535c258f9f..4df93ecf07 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -3807,8 +3807,8 @@ importers:
         specifier: ^1.2.1
         version: 1.2.1
       '@floating-ui/react':
-        specifier: ^0.26.4
-        version: 0.26.28(react-dom@19.1.0(react@19.1.0))(react@19.1.0)
+        specifier: ^0.27.16
+        version: 0.27.16(react-dom@19.1.0(react@19.1.0))(react@19.1.0)
       '@tiptap/core':
         specifier: ^2.26.1
         version: 2.26.1(@tiptap/pm@2.26.1)
@@ -6378,21 +6378,42 @@ packages:
   '@floating-ui/core@1.6.9':
     resolution: {integrity: sha512-uMXCuQ3BItDUbAMhIXw7UPXRfAlOAvZzdK9BWpE60MCn+Svt3aLn9jsPTi/WNGlRUu2uI0v5S7JiIUsbsvh3fw==}
 
+  '@floating-ui/core@1.7.3':
+    resolution: {integrity: sha512-sGnvb5dmrJaKEZ+LDIpguvdX3bDlEllmv4/ClQ9awcmCZrlx5jQyyMWFM5kBI+EyNOCDDiKk8il0zeuX3Zlg/w==}
+
   '@floating-ui/dom@1.6.13':
     resolution: {integrity: sha512-umqzocjDgNRGTuO7Q8CU32dkHkECqI8ZdMZ5Swb6QAM0t5rnlrN3lGo1hdpscRd3WS8T6DKYK4ephgIH9iRh3w==}
 
+  '@floating-ui/dom@1.7.4':
+    resolution: {integrity: sha512-OOchDgh4F2CchOX94cRVqhvy7b3AFb+/rQXyswmzmGakRfkMgoWVjfnLWkRirfLEfuD4ysVW16eXzwt3jHIzKA==}
+
   '@floating-ui/react-dom@2.1.2':
     resolution: {integrity: sha512-06okr5cgPzMNBy+Ycse2A6udMi4bqwW/zgBF/rwjcNqWkyr82Mcg8b0vjX8OJpZFy/FKjJmw6wV7t44kK6kW7A==}
     peerDependencies:
       react: '>=16.8.0'
       react-dom: '>=16.8.0'
 
+  '@floating-ui/react-dom@2.1.6':
+    resolution: {integrity: sha512-4JX6rEatQEvlmgU80wZyq9RT96HZJa88q8hp0pBd+LrczeDI4o6uA2M+uvxngVHo4Ihr8uibXxH6+70zhAFrVw==}
+    peerDependencies:
+      react: '>=16.8.0'
+      react-dom: '>=16.8.0'
+
   '@floating-ui/react@0.26.28':
     resolution: {integrity: sha512-yORQuuAtVpiRjpMhdc0wJj06b9JFjrYF4qp96j++v2NBpbi6SEGF7donUJ3TMieerQ6qVkAv1tgr7L4r5roTqw==}
     peerDependencies:
       react: '>=16.8.0'
       react-dom: '>=16.8.0'
 
+  '@floating-ui/react@0.27.16':
+    resolution: {integrity: sha512-9O8N4SeG2z++TSM8QA/KTeKFBVCNEz/AGS7gWPJf6KFRzmRWixFRnCnkPHRDwSVZW6QPDO6uT0P2SpWNKCc9/g==}
+    peerDependencies:
+      react: '>=17.0.0'
+      react-dom: '>=17.0.0'
+
+  '@floating-ui/utils@0.2.10':
+    resolution: {integrity: sha512-aGTxbpbg8/b5JfU1HXSrbH3wXZuLPJcNEcZQFMxLs3oSzgtVu6nFPkbbGGUvBcUjKV2YyB9Wxxabo+HEH9tcRQ==}
+
   '@floating-ui/utils@0.2.9':
     resolution: {integrity: sha512-MDWhGtE+eHw5JW7lq4qhc5yRLS11ERl1c7Z6Xd0a58DozHES6EnNNwUWbMiG4J9Cgj053Bhk8zvlhFYKVhULwg==}
 
@@ -17107,17 +17128,32 @@ snapshots:
     dependencies:
       '@floating-ui/utils': 0.2.9
 
+  '@floating-ui/core@1.7.3':
+    dependencies:
+      '@floating-ui/utils': 0.2.10
+
   '@floating-ui/dom@1.6.13':
     dependencies:
       '@floating-ui/core': 1.6.9
       '@floating-ui/utils': 0.2.9
 
+  '@floating-ui/dom@1.7.4':
+    dependencies:
+      '@floating-ui/core': 1.7.3
+      '@floating-ui/utils': 0.2.10
+
   '@floating-ui/react-dom@2.1.2(react-dom@19.1.0(react@19.1.0))(react@19.1.0)':
     dependencies:
       '@floating-ui/dom': 1.6.13
       react: 19.1.0
       react-dom: 19.1.0(react@19.1.0)
 
+  '@floating-ui/react-dom@2.1.6(react-dom@19.1.0(react@19.1.0))(react@19.1.0)':
+    dependencies:
+      '@floating-ui/dom': 1.7.4
+      react: 19.1.0
+      react-dom: 19.1.0(react@19.1.0)
+
   '@floating-ui/react@0.26.28(react-dom@19.1.0(react@19.1.0))(react@19.1.0)':
     dependencies:
       '@floating-ui/react-dom': 2.1.2(react-dom@19.1.0(react@19.1.0))(react@19.1.0)
@@ -17126,6 +17162,16 @@ snapshots:
       react-dom: 19.1.0(react@19.1.0)
       tabbable: 6.2.0
 
+  '@floating-ui/react@0.27.16(react-dom@19.1.0(react@19.1.0))(react@19.1.0)':
+    dependencies:
+      '@floating-ui/react-dom': 2.1.6(react-dom@19.1.0(react@19.1.0))(react@19.1.0)
+      '@floating-ui/utils': 0.2.10
+      react: 19.1.0
+      react-dom: 19.1.0(react@19.1.0)
+      tabbable: 6.2.0
+
+  '@floating-ui/utils@0.2.10': {}
+
   '@floating-ui/utils@0.2.9': {}
 
   '@formatjs/intl-localematcher@0.6.1':