diff --git a/packages/base-styles/CHANGELOG.md b/packages/base-styles/CHANGELOG.md
index 74ebd7b570c307..76f5d303cf0ce1 100644
--- a/packages/base-styles/CHANGELOG.md
+++ b/packages/base-styles/CHANGELOG.md
@@ -2,6 +2,10 @@
 
 ## Unreleased
 
+### Enhancements
+
+-   Bump `.components-draggable__clone` z-index from `1000000000` to `1000000004` so an active drag stays above the `@wordpress/ui` compat overlay slot (`1000000003`) introduced in [#77851](https://github.com/WordPress/gutenberg/pull/77851).
+
 ### Breaking Changes
 
 -   Remove the following entries from the `z-index()` helper ([#77753](https://github.com/WordPress/gutenberg/pull/77753), [#77759](https://github.com/WordPress/gutenberg/pull/77759), [#77772](https://github.com/WordPress/gutenberg/pull/77772), [#77806](https://github.com/WordPress/gutenberg/pull/77806), [#77807](https://github.com/WordPress/gutenberg/pull/77807), [#77808](https://github.com/WordPress/gutenberg/pull/77808)):
diff --git a/packages/base-styles/_z-index.scss b/packages/base-styles/_z-index.scss
index 550f680ecf4a56..e57cf780a3bdb6 100644
--- a/packages/base-styles/_z-index.scss
+++ b/packages/base-styles/_z-index.scss
@@ -23,8 +23,9 @@ $z-layers: (
 	".has-child .wp-block-navigation__submenu-container": 28,
 	".has-child:hover .wp-block-navigation__submenu-container": 29,
 
-	// The draggable element should show up above the entire UI
-	".components-draggable__clone": 1000000000,
+	// The draggable element should show up above the entire UI, including
+	// the `@wordpress/ui` compat overlay slot at `1000000003`.
+	".components-draggable__clone": 1000000004,
 
 	// Show drop zone above most standard content, but below any overlays
 	".components-drop-zone": 40,