diff --git a/Changelog b/Changelog
index ec95ba29..0bb1028e 100644
--- a/Changelog
+++ b/Changelog
@@ -23,6 +23,7 @@
   - 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 cd5c936b..36ed2346 100644
--- a/src/private/DockRegistry.cpp
+++ b/src/private/DockRegistry.cpp
@@ -637,7 +637,16 @@ 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 406a1ba6..012c9223 100644
--- a/tests/tst_docks.cpp
+++ b/tests/tst_docks.cpp
@@ -263,6 +263,7 @@ private Q_SLOTS:
     void tst_restoreSideBar();
     void tst_toggleActionOnSideBar();
     void tst_deleteOnCloseWhenOnSideBar();
+    void tst_sidebarOverlayGetsHiddenOnClick();
 
     // And fix these
     void tst_floatingWindowDeleted();
@@ -5215,6 +5216,61 @@ void TestDocks::tst_deleteOnCloseWhenOnSideBar()
     QVERIFY(dock1);
 }
 
+void TestDocks::tst_sidebarOverlayGetsHiddenOnClick()
+{
+    EnsureTopLevelsDeleted e;
+    KDDockWidgets::Config::self().setFlags(KDDockWidgets::Config::Flag_AutoHideSupport);
+
+    {
+        // Case #1 click on another dockwidget should hide the overlay
+
+        auto m1 = createMainWindow(QSize(1000, 1000), MainWindowOption_None, "MW1");
+        auto dw1 = new DockWidgetType(QStringLiteral("1"));
+        auto dw2 = new DockWidgetType(QStringLiteral("2"));
+
+        m1->addDockWidget(dw1, Location_OnBottom);
+        m1->addDockWidget(dw2, Location_OnBottom);
+
+        m1->moveToSideBar(dw1);
+        m1->overlayOnSideBar(dw1);
+
+        QVERIFY(dw1->isOverlayed());
+
+        Tests::clickOn(dw2->mapToGlobal(dw2->rect().bottomLeft() + QPoint(5, -5)), dw2);
+        QVERIFY(!dw1->isOverlayed());
+
+        auto widget2 = new MyWidget("foo");
+        dw2->setWidget(widget2);
+        m1->overlayOnSideBar(dw1);
+        QVERIFY(dw1->isOverlayed());
+
+        Tests::clickOn(widget2->mapToGlobal(widget2->rect().bottomLeft() + QPoint(5, -5)), widget2);
+        QVERIFY(!dw1->isOverlayed());
+
+        delete dw1;
+    }
+
+    {
+        // Case #1 click on empty main window space, should hide the overlay
+
+        auto m1 = createMainWindow(QSize(1000, 1000), MainWindowOption_None, "MW1");
+        auto dw1 = new DockWidgetType(QStringLiteral("1"));
+
+        m1->addDockWidget(dw1, Location_OnBottom);
+
+        m1->moveToSideBar(dw1);
+        m1->overlayOnSideBar(dw1);
+
+        QVERIFY(dw1->isOverlayed());
+
+        const QPoint localPt(100, 250);
+        Tests::clickOn(m1->mapToGlobal(m1->rect().topLeft() + localPt), m1->childAt(localPt));
+        QVERIFY(!dw1->isOverlayed());
+
+        delete dw1;
+    }
+}
+
 void TestDocks::tst_embeddedMainWindow()
 {
     EnsureTopLevelsDeleted e;