diff --git a/docs/pages/examples.vue b/docs/pages/examples.vue
index d09cf6fe..baf704e4 100644
--- a/docs/pages/examples.vue
+++ b/docs/pages/examples.vue
@@ -165,6 +165,20 @@
       <UButton icon="heroicons-outline:bell" variant="red" label="Trigger an error" @click="onNotificationClick" />
     </div>
 
+    <div>
+      <div class="font-medium text-sm mb-1 u-text-gray-700">
+        Context menu:
+      </div>
+
+      <UCard ref="contextMenuRef" class="relative" body-class="h-64" @click="isContextMenuOpen = false" @contextmenu.prevent="isContextMenuOpen = true">
+        <UContextMenu v-model="isContextMenuOpen" :virtual-element="virtualElement" width-class="w-48">
+          <UCard @click.stop>
+            Menu
+          </UCard>
+        </UContextMenu>
+      </UCard>
+    </div>
+
     <div>
       <div class="font-medium text-sm mb-1 u-text-gray-700">
         Command palette:
@@ -266,6 +280,32 @@ const form = reactive({
 
 const { $toast } = useNuxtApp()
 
+const x = ref(0)
+const y = ref(0)
+const isContextMenuOpen = ref(false)
+const contextMenuRef = ref(null)
+
+onMounted(() => {
+  document.addEventListener('mousemove', ({ clientX, clientY }) => {
+    x.value = clientX
+    y.value = clientY
+  })
+})
+
+const virtualElement = computed(() => ({
+  getBoundingClientRect () {
+    return {
+      width: 0,
+      height: 0,
+      top: y.value,
+      right: x.value,
+      bottom: y.value,
+      left: x.value
+    }
+  },
+  contextElement: contextMenuRef.value?.$el
+}))
+
 const customQuery = query => computed(() => query.value ? `${query.value} | =1` : '')
 
 function toggleModalIsOpen () {
diff --git a/src/runtime/components/overlays/ContextMenu.vue b/src/runtime/components/overlays/ContextMenu.vue
new file mode 100644
index 00000000..d6608ebd
--- /dev/null
+++ b/src/runtime/components/overlays/ContextMenu.vue
@@ -0,0 +1,73 @@
+<template>
+  <div v-if="isOpen" ref="container" :class="[containerClass, widthClass]">
+    <transition appear v-bind="transitionClass">
+      <div :class="baseClass">
+        <slot />
+      </div>
+    </transition>
+  </div>
+</template>
+
+<script setup lang="ts">
+import { PropType, computed, toRef } from 'vue'
+import { defu } from 'defu'
+import { usePopper } from '../../composables/usePopper'
+import type { PopperOptions } from './../types'
+import $ui from '#build/ui'
+
+const props = defineProps({
+  modelValue: {
+    type: Boolean,
+    default: false
+  },
+  virtualElement: {
+    type: Object,
+    required: true
+  },
+  wrapperClass: {
+    type: String,
+    default: () => $ui.contextMenu.wrapper
+  },
+  containerClass: {
+    type: String,
+    default: () => $ui.contextMenu.container
+  },
+  widthClass: {
+    type: String,
+    default: () => $ui.contextMenu.width
+  },
+  baseClass: {
+    type: String,
+    default: () => $ui.contextMenu.base
+  },
+  transitionClass: {
+    type: Object,
+    default: () => $ui.contextMenu.transition
+  },
+  popperOptions: {
+    type: Object as PropType<Pick<PopperOptions, 'strategy' | 'placement'>>,
+    default: () => ({})
+  }
+})
+
+const emit = defineEmits(['update:modelValue', 'close'])
+
+const isOpen = computed({
+  get () {
+    return props.modelValue
+  },
+  set (value) {
+    emit('update:modelValue', value)
+  }
+})
+
+const virtualElement = toRef(props, 'virtualElement')
+
+const popperOptions = computed(() => defu({}, props.popperOptions, { placement: 'bottom-start' }))
+
+const [, container] = usePopper(popperOptions.value, virtualElement)
+</script>
+
+<script lang="ts">
+export default { name: 'UContextMenu' }
+</script>
diff --git a/src/runtime/composables/usePopper.ts b/src/runtime/composables/usePopper.ts
index f2b97b5d..b18b0f79 100644
--- a/src/runtime/composables/usePopper.ts
+++ b/src/runtime/composables/usePopper.ts
@@ -1,11 +1,13 @@
 import { ref, onMounted, watchEffect } from 'vue'
+import type { Ref } from 'vue'
 import { popperGenerator, defaultModifiers } from '@popperjs/core/lib/popper-lite'
+import type { Instance } from '@popperjs/core'
 import { omitBy, isUndefined } from 'lodash-es'
 import flip from '@popperjs/core/lib/modifiers/flip'
 import offset from '@popperjs/core/lib/modifiers/offset'
 import preventOverflow from '@popperjs/core/lib/modifiers/preventOverflow'
 
-const createPopper = popperGenerator({
+export const createPopper = popperGenerator({
   defaultModifiers: [...defaultModifiers, offset, flip, preventOverflow]
 })
 
@@ -16,22 +18,23 @@ export function usePopper ({
   offsetSkid = 0,
   placement,
   strategy
-}) {
-  const reference = ref(null)
-  const popper = ref(null)
+}, virtualReference) {
+  const reference: Ref<HTMLElement> = ref(null)
+  const popper: Ref<HTMLElement> = ref(null)
+  const instance: Ref<Instance> = ref(null)
 
   onMounted(() => {
     watchEffect((onInvalidate) => {
       if (!popper.value) { return }
-      if (!reference.value) { return }
+      if (!reference.value && !virtualReference.value) { return }
 
       const popperEl = popper.value.$el || popper.value
-      const referenceEl = reference.value.$el || reference.value
+      const referenceEl = virtualReference?.value || reference.value.$el || reference.value
 
-      if (!(referenceEl instanceof HTMLElement)) { return }
+      // if (!(referenceEl instanceof HTMLElement)) { return }
       if (!(popperEl instanceof HTMLElement)) { return }
 
-      const { destroy } = createPopper(referenceEl, popperEl, omitBy({
+      instance.value = createPopper(referenceEl, popperEl, omitBy({
         placement,
         strategy,
         modifiers: [{
@@ -50,9 +53,9 @@ export function usePopper ({
         }]
       }, isUndefined))
 
-      onInvalidate(destroy)
+      onInvalidate(instance.value.destroy)
     })
   })
 
-  return [reference, popper]
+  return [reference, popper, instance]
 }
diff --git a/src/runtime/presets/default.ts b/src/runtime/presets/default.ts
index 8c9e4551..0d0cec6f 100644
--- a/src/runtime/presets/default.ts
+++ b/src/runtime/presets/default.ts
@@ -503,6 +503,21 @@ export default (variantColors: string[]) => {
     }
   }
 
+  const contextMenu = {
+    wrapper: 'relative',
+    container: 'z-20',
+    width: '',
+    base: '',
+    transition: {
+      enterActiveClass: 'transition ease-out duration-200',
+      enterFromClass: 'opacity-0 translate-y-1',
+      enterToClass: 'opacity-100 translate-y-0',
+      leaveActiveClass: 'transition ease-in duration-150',
+      leaveFromClass: 'opacity-100 translate-y-0',
+      leaveToClass: 'opacity-0 translate-y-1'
+    }
+  }
+
   return {
     card,
     modal,
@@ -527,6 +542,7 @@ export default (variantColors: string[]) => {
     slideover,
     notification,
     tooltip,
-    popover
+    popover,
+    contextMenu
   }
 }