diff --git a/app/src/main/java/org/mozilla/fenix/compose/cfr/CFRPopup.kt b/app/src/main/java/org/mozilla/fenix/compose/cfr/CFRPopup.kt
index 49e96719ec..84aeaa263d 100644
--- a/app/src/main/java/org/mozilla/fenix/compose/cfr/CFRPopup.kt
+++ b/app/src/main/java/org/mozilla/fenix/compose/cfr/CFRPopup.kt
@@ -25,6 +25,8 @@ import java.lang.ref.WeakReference
  * @property overlapAnchor How the popup's indicator will be shown in relation to the anchor:
  *   - true - indicator will be shown exactly in the middle horizontally and vertically
  *   - false - indicator will be shown horizontally in the middle of the anchor but immediately below or above it
+ * @property popupVerticalOffset Vertical distance between the indicator arrow and the anchor.
+ * This only applies if [overlapAnchor] is `false`.
  * @property indicatorArrowStartOffset Maximum distance between the popup start and the indicator arrow.
  * If there isn't enough space this could automatically be overridden up to 0 such that
  * the indicator arrow will be pointing to the middle of the anchor.
@@ -36,6 +38,7 @@ data class CFRPopupProperties(
     val dismissOnBackPress: Boolean = true,
     val dismissOnClickOutside: Boolean = true,
     val overlapAnchor: Boolean = false,
+    val popupVerticalOffset: Dp = CFRPopup.DEFAULT_VERTICAL_OFFSET.dp,
     val indicatorArrowStartOffset: Dp = CFRPopup.DEFAULT_INDICATOR_START_OFFSET.dp,
 )
 
@@ -145,5 +148,10 @@ class CFRPopup(
          * Corner radius for the popup body.
          */
         internal const val DEFAULT_CORNER_RADIUS = 12
+
+        /**
+         * Vertical distance between the indicator arrow and the anchor.
+         */
+        internal const val DEFAULT_VERTICAL_OFFSET = 9
     }
 }
diff --git a/app/src/main/java/org/mozilla/fenix/compose/cfr/CFRPopupFullscreenLayout.kt b/app/src/main/java/org/mozilla/fenix/compose/cfr/CFRPopupFullscreenLayout.kt
index ac5a362755..4174782e7c 100644
--- a/app/src/main/java/org/mozilla/fenix/compose/cfr/CFRPopupFullscreenLayout.kt
+++ b/app/src/main/java/org/mozilla/fenix/compose/cfr/CFRPopupFullscreenLayout.kt
@@ -201,13 +201,14 @@ internal class CFRPopupFullScreenLayout(
                         UP -> {
                             when (properties.overlapAnchor) {
                                 true -> anchorLocation.last() + anchor.height / 2
-                                else -> anchorLocation.last() + anchor.height
+                                else -> anchorLocation.last() + anchor.height + properties.popupVerticalOffset.toPx()
                             }
                         }
                         DOWN -> {
                             when (properties.overlapAnchor) {
                                 true -> anchorLocation.last() - popupContentSize.height + anchor.height / 2
-                                else -> anchorLocation.last() - popupContentSize.height
+                                else -> anchorLocation.last() - popupContentSize.height -
+                                    properties.popupVerticalOffset.toPx()
                             }
                         }
                     }