diff --git a/packages/trace-viewer/src/ui/defaultSettingsView.tsx b/packages/trace-viewer/src/ui/defaultSettingsView.tsx
new file mode 100644
index 0000000000..c36ddd1458
--- /dev/null
+++ b/packages/trace-viewer/src/ui/defaultSettingsView.tsx
@@ -0,0 +1,29 @@
+/**
+ * Copyright (c) Microsoft Corporation.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import * as React from 'react';
+import { SettingsView } from './settingsView';
+import { useDarkModeSetting } from '@web/theme';
+
+export const DefaultSettingsView: React.FC<{}> = () => {
+  const [darkMode, setDarkMode] = useDarkModeSetting();
+
+  return (
+    <SettingsView
+      settings={[{ value: darkMode, set: setDarkMode, title: 'Dark mode' }]}
+    />
+  );
+};
diff --git a/packages/trace-viewer/src/ui/settingsToolbar.css b/packages/trace-viewer/src/ui/settingsToolbar.css
new file mode 100644
index 0000000000..6ef44cd8de
--- /dev/null
+++ b/packages/trace-viewer/src/ui/settingsToolbar.css
@@ -0,0 +1,21 @@
+/*
+  Copyright (c) Microsoft Corporation.
+
+  Licensed under the Apache License, Version 2.0 (the "License");
+  you may not use this file except in compliance with the License.
+  You may obtain a copy of the License at
+
+      http://www.apache.org/licenses/LICENSE-2.0
+
+  Unless required by applicable law or agreed to in writing, software
+  distributed under the License is distributed on an "AS IS" BASIS,
+  WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+  See the License for the specific language governing permissions and
+  limitations under the License.
+*/
+
+.settings-toolbar-dialog {
+  background-color: var(--vscode-sideBar-background);
+
+  padding: 4px 8px;
+}
\ No newline at end of file
diff --git a/packages/trace-viewer/src/ui/settingsToolbar.tsx b/packages/trace-viewer/src/ui/settingsToolbar.tsx
new file mode 100644
index 0000000000..c83dde7d66
--- /dev/null
+++ b/packages/trace-viewer/src/ui/settingsToolbar.tsx
@@ -0,0 +1,47 @@
+/*
+  Copyright (c) Microsoft Corporation.
+
+  Licensed under the Apache License, Version 2.0 (the "License");
+  you may not use this file except in compliance with the License.
+  You may obtain a copy of the License at
+
+      http://www.apache.org/licenses/LICENSE-2.0
+
+  Unless required by applicable law or agreed to in writing, software
+  distributed under the License is distributed on an "AS IS" BASIS,
+  WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+  See the License for the specific language governing permissions and
+  limitations under the License.
+*/
+
+import * as React from 'react';
+import { Dialog } from './shared/dialog';
+import { ToolbarButton } from '@web/components/toolbarButton';
+import { DefaultSettingsView } from './defaultSettingsView';
+import './settingsToolbar.css';
+
+export const SettingsToolbar: React.FC<{}> = () => {
+  const hostingRef = React.useRef<HTMLButtonElement>(null);
+
+  const [open, setOpen] = React.useState(false);
+
+  return (
+    <>
+      <ToolbarButton
+        ref={hostingRef}
+        icon='settings-gear'
+        title='Settings'
+        onClick={() => setOpen(current => !current)}
+      />
+      <Dialog
+        className='settings-toolbar-dialog'
+        open={open}
+        width={150}
+        requestClose={() => setOpen(false)}
+        hostingElement={hostingRef}
+      >
+        <DefaultSettingsView />
+      </Dialog>
+    </>
+  );
+};
diff --git a/packages/trace-viewer/src/ui/settingsView.css b/packages/trace-viewer/src/ui/settingsView.css
index 3ac8597e35..816c1038e3 100644
--- a/packages/trace-viewer/src/ui/settingsView.css
+++ b/packages/trace-viewer/src/ui/settingsView.css
@@ -16,7 +16,7 @@
 
 .settings-view {
   flex: none;
-  margin-top: 4px;
+  user-select: none;
 }
 
 .settings-view .setting label {
@@ -24,6 +24,7 @@
   flex-direction: row;
   align-items: center;
   margin: 4px 2px;
+  cursor: pointer;
 }
 
 .settings-view .setting:first-of-type label {
diff --git a/packages/trace-viewer/src/ui/shared/dialog.tsx b/packages/trace-viewer/src/ui/shared/dialog.tsx
new file mode 100644
index 0000000000..8e74c97b85
--- /dev/null
+++ b/packages/trace-viewer/src/ui/shared/dialog.tsx
@@ -0,0 +1,147 @@
+/*
+  Copyright (c) Microsoft Corporation.
+
+  Licensed under the Apache License, Version 2.0 (the "License");
+  you may not use this file except in compliance with the License.
+  You may obtain a copy of the License at
+
+      http://www.apache.org/licenses/LICENSE-2.0
+
+  Unless required by applicable law or agreed to in writing, software
+  distributed under the License is distributed on an "AS IS" BASIS,
+  WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+  See the License for the specific language governing permissions and
+  limitations under the License.
+*/
+
+import * as React from 'react';
+
+export interface DialogProps {
+  className?: string;
+
+  open: boolean;
+  width: number;
+
+  requestClose?: () => void;
+
+  hostingElement?: React.RefObject<HTMLElement>;
+}
+
+export const Dialog: React.FC<React.PropsWithChildren<DialogProps>> = ({
+  className,
+  open,
+  width,
+  requestClose,
+  hostingElement,
+  children,
+}) => {
+  const dialogRef = React.useRef<HTMLDialogElement>(null);
+
+  let style: React.CSSProperties | undefined = undefined;
+
+  if (hostingElement?.current) {
+    // For now, always place dialog below hosting element
+    const bounds = hostingElement.current.getBoundingClientRect();
+
+    style = {
+      // Override default `<dialog>` positioning
+      margin: 0,
+      top: bounds.bottom,
+      left: buildTopLeftCoord(bounds, width),
+      width,
+      // For some reason the dialog is placed behind the timeline, but there's a stacking context that allows the dialog to be placed above
+      zIndex: 1,
+    };
+  }
+
+  React.useEffect(() => {
+    const onClick = (event: MouseEvent) => {
+      if (!dialogRef.current || !(event.target instanceof Node))
+        return;
+
+      if (!dialogRef.current.contains(event.target)) {
+        // Click outside of dialog bounds
+        requestClose?.();
+      }
+    };
+
+    const onKeyDown = (event: KeyboardEvent) => {
+      if (event.key === 'Escape')
+        requestClose?.();
+    };
+
+    if (open) {
+      document.addEventListener('mousedown', onClick);
+      document.addEventListener('keydown', onKeyDown);
+
+      return () => {
+        document.removeEventListener('mousedown', onClick);
+        document.removeEventListener('keydown', onKeyDown);
+      };
+    }
+
+    return () => {};
+  }, [open, requestClose]);
+
+  return (
+    open && (
+      <dialog
+        ref={dialogRef}
+        style={style}
+        className={className}
+        open
+      >
+        {children}
+      </dialog>
+    )
+  );
+};
+
+const buildTopLeftCoord = (bounds: DOMRect, width: number): number => {
+  // Default to left aligned
+  const leftAlignCoord = buildTopLeftCoordWithAlignment(bounds, width, 'left');
+
+  if (leftAlignCoord.inBounds)
+    return leftAlignCoord.value;
+
+  const rightAlignCoord = buildTopLeftCoordWithAlignment(
+      bounds,
+      width,
+      'right'
+  );
+
+  if (rightAlignCoord.inBounds)
+    return rightAlignCoord.value;
+
+  // Fallback to left align, even if it will go off screen
+  return leftAlignCoord.value;
+};
+
+const buildTopLeftCoordWithAlignment = (
+  bounds: DOMRect,
+  width: number,
+  alignment: 'left' | 'right'
+): {
+  value: number;
+  inBounds: boolean;
+} => {
+  const maxLeft = document.documentElement.clientWidth;
+
+  if (alignment === 'left') {
+    const value = bounds.left;
+
+    return {
+      value,
+      // Would extend off of right side of screen
+      inBounds: value + width <= maxLeft,
+    };
+  } else {
+    const value = bounds.right - width;
+
+    return {
+      value,
+      // Would extend off of left side of screen
+      inBounds: bounds.right - width >= 0,
+    };
+  }
+};
diff --git a/packages/trace-viewer/src/ui/uiModeView.tsx b/packages/trace-viewer/src/ui/uiModeView.tsx
index be0dd8f55f..d44a50f247 100644
--- a/packages/trace-viewer/src/ui/uiModeView.tsx
+++ b/packages/trace-viewer/src/ui/uiModeView.tsx
@@ -28,7 +28,6 @@ import { ToolbarButton } from '@web/components/toolbarButton';
 import { Toolbar } from '@web/components/toolbar';
 import type { XtermDataSource } from '@web/components/xtermWrapper';
 import { XtermWrapper } from '@web/components/xtermWrapper';
-import { useDarkModeSetting } from '@web/theme';
 import { clsx, settings, useSetting } from '@web/uiUtils';
 import { statusEx, TestTree } from '@testIsomorphic/testTree';
 import type { TreeItem  } from '@testIsomorphic/testTree';
@@ -37,6 +36,7 @@ import { FiltersView } from './uiModeFiltersView';
 import { TestListView } from './uiModeTestListView';
 import { TraceView } from './uiModeTraceView';
 import { SettingsView } from './settingsView';
+import { DefaultSettingsView } from './defaultSettingsView';
 
 let xtermSize = { cols: 80, rows: 24 };
 const xtermDataSource: XtermDataSource = {
@@ -106,7 +106,6 @@ export const UIModeView: React.FC<{}> = ({
   const [singleWorker, setSingleWorker] = React.useState(false);
   const [showBrowser, setShowBrowser] = React.useState(false);
   const [updateSnapshots, setUpdateSnapshots] = React.useState(false);
-  const [darkMode, setDarkMode] = useDarkModeSetting();
 
   const inputRef = React.useRef<HTMLInputElement>(null);
 
@@ -523,9 +522,7 @@ export const UIModeView: React.FC<{}> = ({
           />
           <div className='section-title'>Settings</div>
         </Toolbar>
-        {settingsVisible && <SettingsView settings={[
-          { value: darkMode, set: setDarkMode, title: 'Dark mode' },
-        ]} />}
+        {settingsVisible && <DefaultSettingsView />}
       </div>
       }
     />
diff --git a/packages/trace-viewer/src/ui/workbenchLoader.tsx b/packages/trace-viewer/src/ui/workbenchLoader.tsx
index 9f3fe83fc4..91df653686 100644
--- a/packages/trace-viewer/src/ui/workbenchLoader.tsx
+++ b/packages/trace-viewer/src/ui/workbenchLoader.tsx
@@ -22,6 +22,7 @@ import './workbenchLoader.css';
 import { toggleTheme } from '@web/theme';
 import { Workbench } from './workbench';
 import { TestServerConnection, WebSocketTestServerTransport } from '@testIsomorphic/testServerConnection';
+import { SettingsToolbar } from './settingsToolbar';
 
 export const WorkbenchLoader: React.FunctionComponent<{
 }> = () => {
@@ -161,7 +162,7 @@ export const WorkbenchLoader: React.FunctionComponent<{
       <div className='product'>Playwright</div>
       {model.title && <div className='title'>{model.title}</div>}
       <div className='spacer'></div>
-      <ToolbarButton icon='color-mode' title='Toggle color mode' toggled={false} onClick={() => toggleTheme()}></ToolbarButton>
+      <SettingsToolbar />
     </div>
     <div className='progress'>
       <div className='inner-progress' style={{ width: progress.total ? (100 * progress.done / progress.total) + '%' : 0 }}></div>
diff --git a/packages/web/src/components/toolbarButton.tsx b/packages/web/src/components/toolbarButton.tsx
index 2cdd85b9b7..3e754b6a45 100644
--- a/packages/web/src/components/toolbarButton.tsx
+++ b/packages/web/src/components/toolbarButton.tsx
@@ -31,7 +31,7 @@ export interface ToolbarButtonProps {
   ariaLabel?: string,
 }
 
-export const ToolbarButton: React.FC<React.PropsWithChildren<ToolbarButtonProps>> = ({
+export const ToolbarButton = React.forwardRef<HTMLButtonElement, React.PropsWithChildren<ToolbarButtonProps>>(function ToolbarButton({
   children,
   title = '',
   icon,
@@ -42,8 +42,9 @@ export const ToolbarButton: React.FC<React.PropsWithChildren<ToolbarButtonProps>
   testId,
   className,
   ariaLabel,
-}) => {
+}, ref) {
   return <button
+    ref={ref}
     className={clsx(className, 'toolbar-button', icon, toggled && 'toggled')}
     onMouseDown={preventDefault}
     onClick={onClick}
@@ -57,7 +58,7 @@ export const ToolbarButton: React.FC<React.PropsWithChildren<ToolbarButtonProps>
     {icon && <span className={`codicon codicon-${icon}`} style={children ? { marginRight: 5 } : {}}></span>}
     {children}
   </button>;
-};
+});
 
 export const ToolbarSeparator: React.FC<{ style?: React.CSSProperties }> = ({
   style,