diff --git a/packages/popup/src/LionPopup.js b/packages/popup/src/LionPopup.js
index a3745d2a0..7a84e72f6 100644
--- a/packages/popup/src/LionPopup.js
+++ b/packages/popup/src/LionPopup.js
@@ -4,29 +4,44 @@ import { overlays, LocalOverlayController } from '@lion/overlays';
 export class LionPopup extends UpdatingElement {
   static get properties() {
     return {
-      position: {
-        type: String,
+      placementConfig: {
+        type: Object,
       },
     };
   }
 
+  get placementConfig() {
+    return this._placementConfig;
+  }
+
+  set placementConfig(config) {
+    this._placementConfig = {
+      ...this._placementConfig,
+      ...config,
+    };
+
+    if (this._controller && this._controller._popper) {
+      this._controller.updatePlacementConfig(this._placementConfig);
+    }
+  }
+
   connectedCallback() {
     super.connectedCallback();
-    this.contenNode = this.querySelector('[slot="content"]');
+    this.contentNode = this.querySelector('[slot="content"]');
     this.invokerNode = this.querySelector('[slot="invoker"]');
 
-    this._popup = overlays.add(
+    this._controller = overlays.add(
       new LocalOverlayController({
         hidesOnEsc: true,
         hidesOnOutsideClick: true,
-        placement: this.position,
-        contentNode: this.contenNode,
+        placementConfig: this.placementConfig,
+        contentNode: this.contentNode,
         invokerNode: this.invokerNode,
       }),
     );
-    this._show = () => this._popup.show();
-    this._hide = () => this._popup.hide();
-    this._toggle = () => this._popup.toggle();
+    this._show = () => this._controller.show();
+    this._hide = () => this._controller.hide();
+    this._toggle = () => this._controller.toggle();
 
     this.invokerNode.addEventListener('click', this._toggle);
   }
diff --git a/packages/popup/stories/index.stories.js b/packages/popup/stories/index.stories.js
index 314bdd804..25f2ecb19 100644
--- a/packages/popup/stories/index.stories.js
+++ b/packages/popup/stories/index.stories.js
@@ -1,4 +1,4 @@
-import { storiesOf, html } from '@open-wc/demoing-storybook';
+import { storiesOf, html, withKnobs, object, text } from '@open-wc/demoing-storybook';
 import { css } from '@lion/core';
 
 import '@lion/icon/lion-icon.js';
@@ -11,11 +11,11 @@ const popupDemoStyle = css`
     background-color: white;
     border-radius: 2px;
     border: 1px solid grey;
-    margin: 250px;
+    margin: 250px 0 0 250px;
     padding: 8px;
   }
 
-  .demo-box_positions {
+  .demo-box_placements {
     display: flex;
     flex-direction: column;
     width: 173px;
@@ -40,6 +40,8 @@ const popupDemoStyle = css`
     background-color: black;
     border-radius: 4px;
     padding: 8px;
+    /* To display on top of elements with no z-index that are appear later in the DOM */
+    z-index: 1;
   }
 
   @media (max-width: 480px) {
@@ -50,6 +52,7 @@ const popupDemoStyle = css`
 `;
 
 storiesOf('Local Overlay System|Popup', module)
+  .addDecorator(withKnobs)
   .add(
     'Button popup',
     () => html`
@@ -57,36 +60,73 @@ storiesOf('Local Overlay System|Popup', module)
         ${popupDemoStyle}
       </style>
       <div class="demo-box">
-        <lion-popup position="right">
-          <div slot="content" class="popup">hey there</div>
+        <lion-popup .placementConfig="${{ placement: 'top' }}">
+          <div slot="content" class="popup">Hello there!</div>
           <lion-button slot="invoker">Popup</lion-button>
         </lion-popup>
       </div>
     `,
   )
   .add(
-    'positions',
+    'placements',
     () => html`
       <style>
         ${popupDemoStyle}
       </style>
-      <div class="demo-box_positions">
-        <lion-popup position="top">
-          <div slot="content" class="popup">Its top position</div>
+      <div class="demo-box_placements">
+        <lion-popup .placementConfig="${{ placement: 'top' }}">
+          <div slot="content" class="popup">Its top placement</div>
           <lion-button slot="invoker">Top</lion-button>
         </lion-popup>
-        <lion-popup position="right">
-          <div slot="content" class="popup">Its right position</div>
+        <lion-popup .placementConfig="${{ placement: 'right' }}">
+          <div slot="content" class="popup">Its right placement</div>
           <lion-button slot="invoker">Right</lion-button>
         </lion-popup>
-        <lion-popup position="bottom">
-          <div slot="content" class="popup">Its bottom position</div>
+        <lion-popup .placementConfig="${{ placement: 'bottom' }}">
+          <div slot="content" class="popup">Its bottom placement</div>
           <lion-button slot="invoker">Bottom</lion-button>
         </lion-popup>
-        <lion-popup position="left">
-          <div slot="content" class="popup">Its left position</div>
+        <lion-popup .placementConfig="${{ placement: 'left' }}">
+          <div slot="content" class="popup">Its left placement</div>
           <lion-button slot="invoker">Left</lion-button>
         </lion-popup>
       </div>
     `,
+  )
+  .add(
+    'Override placement configuration',
+    () => html`
+      <style>
+        ${popupDemoStyle}
+      </style>
+      <p>Use the Storybook Knobs to dynamically change the placement configuration!</p>
+      <div class="demo-box">
+        <lion-popup
+          .placementConfig="${object('Placement Configuration', {
+            placement: 'bottom-start',
+            positionFixed: true,
+            modifiers: {
+              keepTogether: {
+                enabled: true /* Prevents detachment of content element from reference element */,
+              },
+              preventOverflow: {
+                enabled: true /* disables shifting/sliding behavior on secondary axis */,
+                padding: 16 /* when enabled, this is the viewport-margin for shifting/sliding */,
+              },
+              flip: {
+                boundariesElement: 'viewport',
+                padding: 4 /* viewport-margin for flipping on primary axis */,
+              },
+              offset: {
+                enabled: true,
+                offset: `0, 4px` /* horizontal and vertical margin (distance between popper and referenceElement) */,
+              },
+            },
+          })}"
+        >
+          <div slot="content" class="popup">${text('Content text', 'Hello, World!')}</div>
+          <lion-button slot="invoker">${text('Invoker text', 'Click me!')}</lion-button>
+        </lion-popup>
+      </div>
+    `,
   );
diff --git a/packages/popup/test/lion-popup.test.js b/packages/popup/test/lion-popup.test.js
index 31f0d61a0..8e854d2cf 100644
--- a/packages/popup/test/lion-popup.test.js
+++ b/packages/popup/test/lion-popup.test.js
@@ -1,4 +1,4 @@
-import { expect, fixture, html } from '@open-wc/testing';
+import { expect, fixture, html, aTimeout } from '@open-wc/testing';
 
 import '../lion-popup.js';
 
@@ -25,6 +25,7 @@ describe('lion-popup', () => {
       const eventOnClick = new Event('click');
       invoker.dispatchEvent(eventOnClick);
       await el.updateComplete;
+      await aTimeout();
       expect(el.querySelector('[slot="content"]').style.display).to.be.equal('inline-block');
       invoker.dispatchEvent(eventOnClick);
       await el.updateComplete;
@@ -44,6 +45,21 @@ describe('lion-popup', () => {
       await el.updateComplete;
       expect(el.querySelector('strong')).to.not.be.undefined;
     });
+
+    it('should respond to dynamically changing the placementConfig', async () => {
+      const el = await fixture(html`
+        <lion-popup>
+          <div slot="content" class="popup">Hey there</div>
+          <lion-button slot="invoker">Popup button</lion-button>
+        </lion-popup>
+      `);
+      await el._controller.show();
+      expect(el._controller._popper.options.placement).to.equal('top');
+      el.placementConfig = { placement: 'left' };
+      // placementConfig setter calls updateConfig method which recreates popper instance and this process is async..
+      await aTimeout();
+      expect(el._controller._popper.options.placement).to.equal('left');
+    });
   });
 
   describe('Accessibility', () => {