diff --git a/js/ui/overlay/popoverEngine.js b/js/ui/overlay/popoverEngine.js
index 00285ebd..431e58c0 100644
--- a/js/ui/overlay/popoverEngine.js
+++ b/js/ui/overlay/popoverEngine.js
@@ -5,6 +5,11 @@ import {
   readDesignToken,
 } from "../../designSystem/metrics.js";
 import { ensureOverlayRoot } from "./overlayRoot.js";
+import {
+  isEditableTarget,
+  movePanelIntoPortal,
+  restorePanelToOrigin,
+} from "./popoverPanelDom.js";
 import {
   arrow as arrowMiddleware,
   autoUpdate,
@@ -245,6 +250,9 @@ export function createPopover(trigger, render, options = {}) {
   let autoUpdateCleanup = null;
   let isOpen = false;
   let previousActiveElement = null;
+  // Origin of a pre-existing app-owned panel relocated into the portal on open
+  // (see movePanelIntoPortal); used to put it back on close/destroy.
+  let panelOrigin = null;
   let menuItemIdCounter = 0;
   const menuHandlers = {
     keydown: null,
@@ -582,6 +590,13 @@ export function createPopover(trigger, render, options = {}) {
       return;
     }
 
+    // Never hijack keys while the user types in a form field inside the panel
+    // (zap comment/amount, search boxes, etc.) — let characters and caret keys
+    // through instead of routing them to menu typeahead/navigation.
+    if (isEditableTarget(event.target)) {
+      return;
+    }
+
     menuState.items = findMenuItems(menuState.panel);
 
     switch (event.key) {
@@ -915,6 +930,13 @@ export function createPopover(trigger, render, options = {}) {
       overlayRoot.appendChild(portal);
     }
 
+    // Pull a pre-existing in-host panel out to the portal so fixed positioning is
+    // viewport-relative (fixes the zap/embed dialog anchoring to the modal edge).
+    const movedOrigin = movePanelIntoPortal(panel, portal);
+    if (movedOrigin) {
+      panelOrigin = movedOrigin;
+    }
+
     if (activePopoverInstance && activePopoverInstance !== api) {
       activePopoverInstance.close({ restoreFocus: false });
     }
@@ -992,6 +1014,11 @@ export function createPopover(trigger, render, options = {}) {
     setExpandedAttribute(anchor, false);
     resetTypeaheadBuffer();
 
+    // Return a relocated app-owned panel to its original DOM home (no-op for
+    // fresh portal-owned panels) so the host DOM stays intact and re-open works.
+    restorePanelToOrigin(panel, panelOrigin);
+    panelOrigin = null;
+
     if (restoreFocus && restoreFocusOnClose) {
       restoreTriggerFocus();
     }
diff --git a/js/ui/overlay/popoverPanelDom.js b/js/ui/overlay/popoverPanelDom.js
new file mode 100644
index 00000000..f73119e0
--- /dev/null
+++ b/js/ui/overlay/popoverPanelDom.js
@@ -0,0 +1,64 @@
+// Pure DOM helpers for the popover engine, extracted to keep popoverEngine.js
+// under its size budget.
+
+function isElement(node) {
+  return Boolean(node) && typeof node === "object" && node.nodeType === 1;
+}
+
+// True when the event target is a form control / editable element. The engine
+// treats panels as ARIA menus (arrow-key nav + single-char typeahead, both
+// preventDefault'd); that must NOT hijack keystrokes when the user is typing in a
+// panel that contains inputs (e.g. the zap comment/amount fields) — otherwise
+// letters and caret keys never reach the field and "you can't type" in the popup.
+export function isEditableTarget(target) {
+  if (!isElement(target)) {
+    return false;
+  }
+  const tag = typeof target.tagName === "string" ? target.tagName.toLowerCase() : "";
+  if (tag === "input" || tag === "textarea" || tag === "select") {
+    return true;
+  }
+  if (target.isContentEditable === true) {
+    return true;
+  }
+  const role =
+    typeof target.getAttribute === "function" ? target.getAttribute("role") : "";
+  return role === "textbox" || role === "searchbox" || role === "combobox";
+}
+
+// Move a panel into the portal (body-level overlay root) for the duration of the
+// open state, so `position: fixed` is viewport-relative rather than resolving
+// against a transformed/contained in-modal ancestor. Fresh render-created panels
+// are already in the portal (no-op); this only relocates pre-existing, app-owned
+// panels. Returns the origin { parent, nextSibling } to restore later, or null.
+export function movePanelIntoPortal(panel, portal) {
+  if (!panel || !portal || panel.parentNode === portal) {
+    return null;
+  }
+  const origin = panel.parentNode
+    ? { parent: panel.parentNode, nextSibling: panel.nextSibling }
+    : null;
+  portal.appendChild(panel);
+  return origin;
+}
+
+// Put a relocated app-owned panel back exactly where it came from so the host
+// (e.g. the video modal) keeps an intact DOM and the popover can be re-opened.
+export function restorePanelToOrigin(panel, origin) {
+  if (!panel || !origin) {
+    return;
+  }
+  const { parent, nextSibling } = origin;
+  if (!parent || typeof parent.insertBefore !== "function") {
+    return;
+  }
+  try {
+    if (nextSibling && nextSibling.parentNode === parent) {
+      parent.insertBefore(panel, nextSibling);
+    } else {
+      parent.appendChild(panel);
+    }
+  } catch (error) {
+    // Best-effort: a failed restore must not break close().
+  }
+}
diff --git a/tests/ui/popoverEngine.test.mjs b/tests/ui/popoverEngine.test.mjs
index bbad1da7..7b8a1c5e 100644
--- a/tests/ui/popoverEngine.test.mjs
+++ b/tests/ui/popoverEngine.test.mjs
@@ -762,3 +762,143 @@ test("applies token-based sizing and arrow positioning", async () => {
 
   popover.destroy();
 });
+
+test("relocates a pre-existing in-host panel into the overlay portal on open and restores it on close", async () => {
+  // Regression for pre-launch TODO #3a: the in-modal zap/embed dialog is a
+  // pre-existing element returned verbatim by its render fn. It was never moved
+  // into the body-level portal, so its `position: fixed` resolved against a
+  // transformed/contained modal ancestor and the panel anchored to the modal edge
+  // instead of bottom-end under its trigger. The engine must relocate such panels
+  // into the portal on open (viewport-relative positioning) and restore them on
+  // close so the host DOM stays intact and re-open still works.
+  const trigger = documentRef.getElementById("trigger");
+  setupBoundingClientRect(trigger, {
+    x: 100,
+    y: 100,
+    top: 100,
+    bottom: 140,
+    left: 100,
+    right: 140,
+    width: 40,
+    height: 40,
+  });
+
+  const modal = documentRef.createElement("div");
+  modal.id = "host-modal";
+  const preExistingPanel = documentRef.createElement("div");
+  preExistingPanel.id = "zap-like-panel";
+  setupBoundingClientRect(preExistingPanel, {
+    x: 0,
+    y: 0,
+    top: 0,
+    bottom: 120,
+    left: 0,
+    right: 200,
+    width: 200,
+    height: 120,
+  });
+  const sibling = documentRef.createElement("span");
+  modal.appendChild(preExistingPanel);
+  modal.appendChild(sibling); // gives the panel a nextSibling to restore before
+  documentRef.body.appendChild(modal);
+
+  // render returns the pre-existing panel verbatim (does NOT append to container).
+  const popover = createPopover(trigger, () => preExistingPanel, {
+    document: documentRef,
+  });
+
+  assert.equal(
+    preExistingPanel.parentNode,
+    modal,
+    "panel starts in the host modal",
+  );
+
+  await popover.open();
+
+  const overlayRoot = documentRef.getElementById("uiOverlay");
+  const portal = overlayRoot.querySelector('[data-popover-portal="true"]');
+  assert.ok(portal, "portal should exist under the overlay root");
+  assert.equal(
+    preExistingPanel.parentNode,
+    portal,
+    "panel should be relocated into the body-level portal while open",
+  );
+
+  popover.close({ restoreFocus: false });
+
+  assert.equal(
+    preExistingPanel.parentNode,
+    modal,
+    "panel should be restored to the host modal on close",
+  );
+  assert.equal(
+    preExistingPanel.nextSibling,
+    sibling,
+    "panel should be restored to its original position (before its sibling)",
+  );
+
+  await popover.open();
+  assert.equal(
+    preExistingPanel.parentNode,
+    portal,
+    "panel should relocate again on re-open (element not lost)",
+  );
+
+  popover.destroy();
+  assert.equal(
+    preExistingPanel.parentNode,
+    modal,
+    "destroy should leave the app-owned panel back in its host, not remove it",
+  );
+});
+
+test("typing in a form field inside a panel is not hijacked by menu typeahead", async () => {
+  // Regression for pre-launch #3a/#3: the engine treats panels as ARIA menus and
+  // preventDefault'd single-character + arrow keys. For a panel with inputs (the
+  // zap comment/amount fields) that swallowed every keystroke -> "can't type in
+  // the popup". Keys originating from an editable control must pass through.
+  const trigger = documentRef.getElementById("trigger");
+  setupBoundingClientRect(trigger, {
+    x: 100, y: 100, top: 100, bottom: 140, left: 100, right: 140, width: 40, height: 40,
+  });
+
+  let panelRef;
+  let inputRef;
+  const popover = createPopover(
+    trigger,
+    ({ container }) => {
+      const panel = documentRef.createElement("div");
+      panel.className = "popover__panel";
+      setupBoundingClientRect(panel, {
+        x: 0, y: 0, top: 0, bottom: 120, left: 0, right: 200, width: 200, height: 120,
+      });
+      const input = documentRef.createElement("textarea");
+      panel.appendChild(input);
+      container.appendChild(panel);
+      panelRef = panel;
+      inputRef = input;
+      return panel;
+    },
+    { document: documentRef },
+  );
+
+  await popover.open();
+
+  // A printable character typed in the textarea must NOT be preventDefault'd.
+  const charEvent = new windowRef.KeyboardEvent("keydown", { key: "a", bubbles: true, cancelable: true });
+  inputRef.dispatchEvent(charEvent);
+  assert.equal(charEvent.defaultPrevented, false, "character keys must reach the input");
+
+  // Caret movement (ArrowLeft) inside the textarea must also pass through.
+  const arrowEvent = new windowRef.KeyboardEvent("keydown", { key: "ArrowLeft", bubbles: true, cancelable: true });
+  inputRef.dispatchEvent(arrowEvent);
+  assert.equal(arrowEvent.defaultPrevented, false, "caret keys must reach the input");
+
+  // Sanity: a non-editable target in the same panel is still handled as a menu
+  // (printable key is consumed for typeahead).
+  const menuKey = new windowRef.KeyboardEvent("keydown", { key: "x", bubbles: true, cancelable: true });
+  panelRef.dispatchEvent(menuKey);
+  assert.equal(menuKey.defaultPrevented, true, "menu typeahead still applies to non-editable targets");
+
+  popover.destroy();
+});