diff --git a/draftlogs/7558_fix.md b/draftlogs/7558_fix.md
new file mode 100644
index 00000000000..2074f5f689a
--- /dev/null
+++ b/draftlogs/7558_fix.md
@@ -0,0 +1 @@
+ - Set `cliponaxis: false` by default for bar traces with `text` and `textposition: 'auto'` or `'outside'`, to prevent text clipping [#7558](https://github.com/plotly/plotly.js/pull/7558)
diff --git a/src/traces/bar/defaults.js b/src/traces/bar/defaults.js
index 66cd408b06f..931f9871a76 100644
--- a/src/traces/bar/defaults.js
+++ b/src/traces/bar/defaults.js
@@ -148,7 +148,18 @@ function handleText(traceIn, traceOut, layout, coerce, textposition, opts) {
         if(moduleHasSelected) coerce('selected.textfont.color');
         if(moduleHasUnselected) coerce('unselected.textfont.color');
         if(moduleHasConstrain) coerce('constraintext');
-        if(moduleHasCliponaxis) coerce('cliponaxis');
+        if(moduleHasCliponaxis) {
+            if(traceOut.text && ['auto', 'outside'].includes(textposition)) {
+                // When `textposition` is `'outside'` (or `auto`), bar labels outside
+                // the bar are very frequently clipped since text is not included
+                // in autorange calculations. So we set `cliponaxis` to `false` by default
+                // in that case to prevent clipping; otherwise we use the normal default
+                // for `cliponaxis`, which is `true`.
+                coerce('cliponaxis', false);
+            } else {
+                coerce('cliponaxis');
+            }
+        }
         if(moduleHasTextangle) coerce('textangle');
 
         coerce('texttemplate');
diff --git a/src/traces/scatter/attributes.js b/src/traces/scatter/attributes.js
index 84844d8fc60..4c8e537e05f 100644
--- a/src/traces/scatter/attributes.js
+++ b/src/traces/scatter/attributes.js
@@ -362,7 +362,9 @@ module.exports = {
             'Determines whether or not markers and text nodes',
             'are clipped about the subplot axes.',
             'To show markers and text nodes above axis lines and tick labels,',
-            'make sure to set `xaxis.layer` and `yaxis.layer` to *below traces*.'
+            'make sure to set `xaxis.layer` and `yaxis.layer` to *below traces*.',
+            'Defaults to *true*, except for bar traces with `textposition` set to *auto* or *outside*',
+            'in which case the default is *false*.'
         ].join(' ')
     },
 
diff --git a/test/image/baselines/zz-pattern_bars-path.png b/test/image/baselines/zz-pattern_bars-path.png
index cff51494b5b..a6405eab1fc 100644
Binary files a/test/image/baselines/zz-pattern_bars-path.png and b/test/image/baselines/zz-pattern_bars-path.png differ
diff --git a/test/jasmine/tests/bar_test.js b/test/jasmine/tests/bar_test.js
index 10e6413659b..cc11c9001d3 100644
--- a/test/jasmine/tests/bar_test.js
+++ b/test/jasmine/tests/bar_test.js
@@ -217,6 +217,65 @@ describe('Bar.supplyDefaults', function() {
         expect(traceOut.insidetextfont.size).toBe(20);
     });
 
+    it('should set cliponaxis to false when text has value and textposition is outside', function() {
+        traceIn = {
+            y: [1, 2, 3],
+            text: ['A', 'B', 'C'],
+            textposition: 'outside'
+        };
+        supplyDefaults(traceIn, traceOut, defaultColor, {});
+        expect(traceOut.cliponaxis).toBe(false);
+    });
+
+    it('should set cliponaxis to false when text has value and textposition is auto', function() {
+        traceIn = {
+            y: [1, 2, 3],
+            text: ['A', 'B', 'C'],
+            textposition: 'auto'
+        };
+        supplyDefaults(traceIn, traceOut, defaultColor, {});
+        expect(traceOut.cliponaxis).toBe(false);
+    });
+
+    it('should set cliponaxis to false when text has value and textposition is unspecified', function() {
+        traceIn = {
+            y: [1, 2, 3],
+            text: ['A', 'B', 'C'],
+        };
+        supplyDefaults(traceIn, traceOut, defaultColor, {});
+        expect(traceOut.cliponaxis).toBe(false);
+    });
+
+    it('should set cliponaxis to default (true) when text is not provided', function() {
+        traceIn = {
+            y: [1, 2, 3],
+            textposition: 'outside'
+        };
+        supplyDefaults(traceIn, traceOut, defaultColor, {});
+        expect(traceOut.cliponaxis).toBe(true);
+    });
+
+    it('should set cliponaxis to default (true) when textposition is not outside', function() {
+        traceIn = {
+            y: [1, 2, 3],
+            text: ['A', 'B', 'C'],
+            textposition: 'inside'
+        };
+        supplyDefaults(traceIn, traceOut, defaultColor, {});
+        expect(traceOut.cliponaxis).toBe(true);
+    });
+
+    it('should respect explicit cliponaxis setting even with text and outside position', function() {
+        traceIn = {
+            y: [1, 2, 3],
+            text: ['A', 'B', 'C'],
+            textposition: 'outside',
+            cliponaxis: true
+        };
+        supplyDefaults(traceIn, traceOut, defaultColor, {});
+        expect(traceOut.cliponaxis).toBe(true);
+    });
+
     it('should inherit layout.calendar', function() {
         traceIn = {
             x: [1, 2, 3],
diff --git a/test/plot-schema.json b/test/plot-schema.json
index dbc320a4631..33d699f9615 100644
--- a/test/plot-schema.json
+++ b/test/plot-schema.json
@@ -58647,7 +58647,7 @@
      "valType": "string"
     },
     "cliponaxis": {
-     "description": "Determines whether or not markers and text nodes are clipped about the subplot axes. To show markers and text nodes above axis lines and tick labels, make sure to set `xaxis.layer` and `yaxis.layer` to *below traces*.",
+     "description": "Determines whether or not markers and text nodes are clipped about the subplot axes. To show markers and text nodes above axis lines and tick labels, make sure to set `xaxis.layer` and `yaxis.layer` to *below traces*. Defaults to *true*, except for bar traces with `textposition` set to *auto* or *outside* in which case the default is *false*.",
      "dflt": true,
      "editType": "plot",
      "valType": "boolean"
@@ -74276,7 +74276,7 @@
    "animatable": false,
    "attributes": {
     "cliponaxis": {
-     "description": "Determines whether or not markers and text nodes are clipped about the subplot axes. To show markers and text nodes above axis lines and tick labels, make sure to set `xaxis.layer` and `yaxis.layer` to *below traces*.",
+     "description": "Determines whether or not markers and text nodes are clipped about the subplot axes. To show markers and text nodes above axis lines and tick labels, make sure to set `xaxis.layer` and `yaxis.layer` to *below traces*. Defaults to *true*, except for bar traces with `textposition` set to *auto* or *outside* in which case the default is *false*.",
      "dflt": false,
      "editType": "plot",
      "valType": "boolean"
@@ -78753,7 +78753,7 @@
    "animatable": false,
    "attributes": {
     "cliponaxis": {
-     "description": "Determines whether or not markers and text nodes are clipped about the subplot axes. To show markers and text nodes above axis lines and tick labels, make sure to set `xaxis.layer` and `yaxis.layer` to *below traces*.",
+     "description": "Determines whether or not markers and text nodes are clipped about the subplot axes. To show markers and text nodes above axis lines and tick labels, make sure to set `xaxis.layer` and `yaxis.layer` to *below traces*. Defaults to *true*, except for bar traces with `textposition` set to *auto* or *outside* in which case the default is *false*.",
      "dflt": false,
      "editType": "plot",
      "valType": "boolean"
@@ -81062,7 +81062,7 @@
      "valType": "data_array"
     },
     "cliponaxis": {
-     "description": "Determines whether or not markers and text nodes are clipped about the subplot axes. To show markers and text nodes above axis lines and tick labels, make sure to set `xaxis.layer` and `yaxis.layer` to *below traces*.",
+     "description": "Determines whether or not markers and text nodes are clipped about the subplot axes. To show markers and text nodes above axis lines and tick labels, make sure to set `xaxis.layer` and `yaxis.layer` to *below traces*. Defaults to *true*, except for bar traces with `textposition` set to *auto* or *outside* in which case the default is *false*.",
      "dflt": true,
      "editType": "plot",
      "valType": "boolean"