diff --git a/packages/cxl-lumo-styles/scss/themes/vaadin-context-menu-item.scss b/packages/cxl-lumo-styles/scss/themes/vaadin-context-menu-item.scss
index e15f2d360..7258ccd7b 100644
--- a/packages/cxl-lumo-styles/scss/themes/vaadin-context-menu-item.scss
+++ b/packages/cxl-lumo-styles/scss/themes/vaadin-context-menu-item.scss
@@ -3,6 +3,13 @@
   padding-bottom: 0;
 }
 
+:host([theme~="cxl-marketing-nav"]:not(.has-description).section-header) {
+  color: var(--lumo-body-text-color);
+  background: var(--lumo-shade-10pct);
+  font-weight: 300;
+  text-transform: uppercase;
+}
+
 :host([theme~="cxl-marketing-nav"]:hover),
 :host([theme~="cxl-marketing-nav"][expanded]) {
   color: var(--lumo-primary-color);
diff --git a/packages/cxl-lumo-styles/scss/themes/vaadin-context-menu-list-box.scss b/packages/cxl-lumo-styles/scss/themes/vaadin-context-menu-list-box.scss
index 652cb6c41..61989a4ea 100644
--- a/packages/cxl-lumo-styles/scss/themes/vaadin-context-menu-list-box.scss
+++ b/packages/cxl-lumo-styles/scss/themes/vaadin-context-menu-list-box.scss
@@ -22,7 +22,7 @@
   :host([theme~="cxl-marketing-nav"]) {
     display: block;
     width: var(--cxl-vaadin-context-menu-item-max-width);
-    padding: 0 8px;
+    padding: 0 var(--lumo-space-s);
   }
 }
 
diff --git a/packages/cxl-lumo-styles/scss/themes/vaadin-overlay.scss b/packages/cxl-lumo-styles/scss/themes/vaadin-overlay.scss
index 75c429d00..6b7d45b79 100644
--- a/packages/cxl-lumo-styles/scss/themes/vaadin-overlay.scss
+++ b/packages/cxl-lumo-styles/scss/themes/vaadin-overlay.scss
@@ -14,8 +14,7 @@
 }
 
 :host([theme~="cxl-marketing-nav"]) [part="content"] {
-  padding-right: 0;
-  padding-left: 0;
+  padding: 0;
 }
 
 @media screen and (min-width: 750px) {
@@ -25,12 +24,13 @@
     right: 0;
     bottom: 0;
     left: 0 !important; /* stylelint-disable-line declaration-no-important */
-    display: flex;
+    display: none;
     align-items: unset !important; /* stylelint-disable-line declaration-no-important */
     justify-content: unset !important; /* stylelint-disable-line declaration-no-important */
     width: 376px;
     margin: 0;
     overflow: auto;
+    opacity: 0; // hide while in the body, to avoid flickering render, show after being moved to the overlays-wrapper element
   }
 
   :host([theme~="cxl-marketing-nav"]) [part="overlay"] {
diff --git a/packages/cxl-ui/scss/cxl-marketing-nav.scss b/packages/cxl-ui/scss/cxl-marketing-nav.scss
index e979ba5b8..b3d7b26ab 100644
--- a/packages/cxl-ui/scss/cxl-marketing-nav.scss
+++ b/packages/cxl-ui/scss/cxl-marketing-nav.scss
@@ -20,12 +20,30 @@
 #overlays-wrapper {
   position: fixed;
   display: flex;
-  border: 1px solid #d2d5da;
+  border: 1px solid var(--lumo-base-color);
+  // Use top and bottom border prevent panel divider from reaching full height.
+  border-top-width: var(--lumo-space-m);
+  border-bottom-width: var(--lumo-space-m);
   border-radius: 6px;
-  box-shadow: 0 8px 24px 0 rgba(0, 0, 0, 0.25);
+  // Second shadow set to emulate border
+  box-shadow: 0 8px 24px 0 rgba(0, 0, 0, 0.25), 0 0 1px 1px #D2D5DA;
+  opacity: 1;
+  transition: opacity 0.2s, left 0.1s;
+
+  vaadin-context-menu-overlay {
+    display: flex;
+    opacity: 1; // show after being moved to the overlays-wrapper element
+    transition: all 0.25s;
+
+    &+ vaadin-context-menu-overlay {
+      border-left: 1px solid var(--lumo-shade-20pct);
+    }
+  }
 
-  vaadin-context-menu-overlay + vaadin-context-menu-overlay {
-    border-left: 1px solid var(--lumo-shade-20pct);
+  &[hidden] {
+    visibility: hidden;
+    opacity: 0;
+    transition: all 0.1s;
   }
 }
 
diff --git a/packages/cxl-ui/src/components/cxl-marketing-nav.js b/packages/cxl-ui/src/components/cxl-marketing-nav.js
index 020264155..7d8d6176b 100644
--- a/packages/cxl-ui/src/components/cxl-marketing-nav.js
+++ b/packages/cxl-ui/src/components/cxl-marketing-nav.js
@@ -22,6 +22,9 @@ export class CXLMarketingNavElement extends LitElement {
   @query('.menu-items')
   menuShadowItemsElement;
 
+  @query('#overlays-wrapper')
+  overlaysWrapperElement;
+
   @property({ type: HTMLElement })
   get menuItemSearchElement() {
     return this.shadowRoot.querySelector('.menu-item-search');
@@ -109,7 +112,7 @@ export class CXLMarketingNavElement extends LitElement {
       </vaadin-tabs>
 
       <nav>
-        <slot></slot>
+        <slot @slotchange=${this._setupSlottedMenuItems} ></slot>
       </nav>
 
       <div id="overlays-wrapper"></div>
@@ -132,6 +135,16 @@ export class CXLMarketingNavElement extends LitElement {
     );
   }
 
+  connectedCallback() {
+    super.connectedCallback();
+    this._boundOnOverlayOpen = this._onOverlayOpen.bind(this);
+  }
+
+  disconnectedCallback() {
+    super.disconnectedCallback();
+    document.body.removeEventListener('vaadin-overlay-open', this._boundOnOverlayOpen);
+  }
+
   firstUpdated(changedProperties) {
     /**
      * Global styles.
@@ -205,11 +218,43 @@ export class CXLMarketingNavElement extends LitElement {
       }, 1000)
     );
 
-    document.body.addEventListener('vaadin-overlay-open', this._onOverlayOpen.bind(this));
+    document.body.addEventListener('vaadin-overlay-open', this._boundOnOverlayOpen);
 
     super.firstUpdated(changedProperties);
   }
 
+  /*
+  * Setup listeners on nav items to handle overlays events.
+  */
+  _setupSlottedMenuItems () {
+    const navItems = this.querySelectorAll('vaadin-tab');
+    navItems.forEach(tab => tab.addEventListener('click', (e) => {
+      const overlays = document
+        .querySelector("cxl-marketing-nav")
+        .shadowRoot.querySelectorAll(
+          'vaadin-context-menu-overlay[theme="cxl-marketing-nav"]'
+        );
+
+      this.overlaysWrapperElement.style.top = `${tab.parentElement.offsetTop + (0.75 * tab.clientHeight)}px`;
+      this.overlaysWrapperElement.style.left = `${e.clientX}px`;
+
+      [...overlays].forEach((overlay) => {
+        overlay.close();
+      });
+    }))
+  }
+
+  _onOverlayClose (e) {
+    const overlay = e.target;
+    if (!overlay.opened) {
+      this.overlaysWrapperElement.removeChild(overlay);
+      document.body.appendChild(overlay);
+      if (!this.overlaysWrapperElement.children.length) {
+        this.overlaysWrapperElement.toggleAttribute('hidden', true);
+      }
+    }
+  }
+
   /**
    * Store overlay when triggered for `vaadin-context-menu-item` sub menu.
    *
@@ -219,19 +264,18 @@ export class CXLMarketingNavElement extends LitElement {
    */
   _onOverlayOpen(e) {
     const overlay = e.target;
+    overlay.addEventListener('opened-changed', this._onOverlayClose.bind(this));
 
     if (window.matchMedia(this._wideMediaQuery).matches) {
       const target = this.shadowRoot.querySelector('#overlays-wrapper');
-      const firstOverlay = document.querySelector(
-        'vaadin-context-menu-overlay[theme="cxl-marketing-nav"]'
-      );
+      const overlays = document.querySelectorAll('vaadin-context-menu-overlay[theme="cxl-marketing-nav"]')
+      const firstOverlay = overlays[0];
 
       if (target) {
-        target.style.top = target?.style?.top ? target.style.top : firstOverlay.style.top;
-        target.style.left = target?.style?.left ? target.style.left : firstOverlay.style.left;
-        target.style.maxHeight = `${window.innerHeight - (target?.style?.maxHeight ? target.style.maxHeight : firstOverlay.offsetTop)}px`;
+        target.style.maxHeight = `${window.innerHeight - (target.style?.maxHeight || firstOverlay.offsetTop)}px`;
 
         target.appendChild(overlay);
+        target.toggleAttribute('hidden', false);
 
         // to fix wrong overlay error after changing the parent
         overlay._placeholder = null;
@@ -318,7 +362,11 @@ export class CXLMarketingNavElement extends LitElement {
 
         menuItem.appendChild(link);
 
+        // If item is at depth 1 and had no children, assume it's a section header, do not show description
+        if (item.sectionHeader && !item.children) {
+          menuItem.classList.add('section-header');
         // Add `description` element, if WordPress Menu Item has `description` field set.
+        } else
         if (item.description) {
           const descriptionItem = document.createElement('div');
 
@@ -398,7 +446,7 @@ export class CXLMarketingNavElement extends LitElement {
 
         // Prevent close on upstream events: clicks, keydown, etc
         contextMenu.addEventListener('item-selected', (e) => {
-          e.stopImmediatePropagation();
+          // e.stopImmediatePropagation();
         });
       });
     });
diff --git a/packages/storybook/cxl-ui/cxl-marketing-nav.data.json b/packages/storybook/cxl-ui/cxl-marketing-nav.data.json
index 60c4af520..1e529b541 100644
--- a/packages/storybook/cxl-ui/cxl-marketing-nav.data.json
+++ b/packages/storybook/cxl-ui/cxl-marketing-nav.data.json
@@ -83,7 +83,8 @@
           "component": "a",
           "href": "#",
           "id": 361,
-          "parent": 36
+          "parent": 36,
+          "sectionHeader": true
         },
         {
           "depth": 1,
@@ -170,7 +171,8 @@
           "href": "#",
           "description": "Supporting knowledge base for wider success",
           "id": 365,
-          "parent": 36
+          "parent": 36,
+          "sectionHeader": true
         },
         {
           "depth": 1,
@@ -234,18 +236,6 @@
           "id": 372,
           "parent": 36,
           "children": []
-        },
-        {
-          "component": "hr"
-        },
-        {
-          "depth": 1,
-          "text": "<b>Fast marketing</b>",
-          "description": "Marketing experimentation - new hot tactics every week, crazy enough they just might work!",
-          "component": "a",
-          "href": "#",
-          "id": 373,
-          "parent": 36
         }
       ]
     },