diff --git a/Changelog b/Changelog
index 6ea830d7..8cbf8ba3 100644
--- a/Changelog
+++ b/Changelog
@@ -8,6 +8,7 @@
   - DockWidgetBase::eventFilter() is protected instead of private (regression vs v1.1) (#148)
     It's recommended that you rebuild your application when updating KDDW, as MSVC encodes private/protected in the name mangling.
   - Fixed WASM build on Windows (#163)
+  - Fixed sidebar overlay not getting hidden when clicking on the main window docking area (#157)
 
 * v1.2.0 (17 December 2020)
   - Wayland support
diff --git a/src/private/DockRegistry.cpp b/src/private/DockRegistry.cpp
index ec74835c..93864a85 100644
--- a/src/private/DockRegistry.cpp
+++ b/src/private/DockRegistry.cpp
@@ -636,7 +636,16 @@ bool DockRegistry::eventFilter(QObject *watched, QEvent *event)
         auto p = watched;
         while (p) {
             if (auto dw = qobject_cast<DockWidgetBase*>(p))
-                return onDockWidgetPressed(dw, static_cast<QMouseEvent*>(event));
+                return onDockWidgetPressed(dw, static_cast<QMouseEvent *>(event));
+
+            if (auto dropArea = qobject_cast<DropArea *>(p)) {
+                if (auto mw = dropArea->mainWindow()) {
+                    // The user clicked somewhere in the main window's drop area, but outside of the
+                    // overlayed dock widget
+                    mw->clearSideBarOverlay();
+                    return false;
+                }
+            }
 
             p = p->parent();
         }
diff --git a/tests/tst_docks.cpp b/tests/tst_docks.cpp
index ff7eef3e..e6012f20 100644
--- a/tests/tst_docks.cpp
+++ b/tests/tst_docks.cpp
@@ -5263,7 +5263,6 @@ void TestDocks::tst_sidebarOverlayGetsHiddenOnClick()
 
         const QPoint localPt(100, 250);
         Tests::clickOn(m1->mapToGlobal(m1->rect().topLeft() + localPt), m1->childAt(localPt));
-        QEXPECT_FAIL("", "will fix", Continue);
         QVERIFY(!dw1->isOverlayed());
 
         delete dw1;