diff --git a/.changeset/hover-card-inline-positioning.md b/.changeset/hover-card-inline-positioning.md
new file mode 100644
index 0000000000..bfa17b0c7a
--- /dev/null
+++ b/.changeset/hover-card-inline-positioning.md
@@ -0,0 +1,6 @@
+---
+"@zag-js/hover-card": patch
+"@zag-js/popper": patch
+---
+
+Add `positioning.inline` support for hover cards to improve positioning when the trigger wraps across multiple lines.
diff --git a/examples/next-ts/pages/hover-card/inline-positioning.tsx b/examples/next-ts/pages/hover-card/inline-positioning.tsx
new file mode 100644
index 0000000000..600aaadcb9
--- /dev/null
+++ b/examples/next-ts/pages/hover-card/inline-positioning.tsx
@@ -0,0 +1,90 @@
+import * as hoverCard from "@zag-js/hover-card"
+import { normalizeProps, Portal, useMachine } from "@zag-js/react"
+import { useId } from "react"
+
+export default function Page() {
+  const service = useMachine(hoverCard.machine, {
+    id: useId(),
+    openDelay: 100,
+    positioning: {
+      placement: "right",
+      inline: true,
+      gutter: 8,
+    },
+  })
+
+  const api = hoverCard.connect(service, normalizeProps)
+
+  return (
+    <main
+      style={{
+        display: "grid",
+        minHeight: "100vh",
+        padding: "80px",
+        placeItems: "center",
+      }}
+    >
+      <article
+        style={{
+          border: "1px solid #e5e7eb",
+          borderRadius: "16px",
+          boxShadow: "0 12px 30px rgba(15, 23, 42, 0.08)",
+          maxWidth: "360px",
+          padding: "24px",
+        }}
+      >
+        <h1 style={{ fontSize: "20px", marginBottom: "16px" }}>Inline positioning</h1>
+        <p style={{ lineHeight: 1.7, marginBottom: "16px" }}>
+          Hover this:{" "}
+          <a
+            href="https://zagjs.com"
+            rel="noreferrer"
+            target="_blank"
+            {...api.getTriggerProps()}
+            style={{
+              color: "#2563eb",
+              fontWeight: 600,
+              textDecoration: "underline",
+              textUnderlineOffset: "3px",
+            }}
+          >
+            Zag.js inline preview
+            <br />
+            API
+          </a>
+          , which keeps the preview anchored to the visible text fragment.
+        </p>
+        <p style={{ color: "#64748b", fontSize: "14px", lineHeight: 1.6 }}>
+          The trigger is intentionally split across two inline lines so you can compare how the card anchors to each
+          fragment.
+        </p>
+      </article>
+
+      {api.open && (
+        <Portal>
+          <div {...api.getPositionerProps()}>
+            <div
+              {...api.getContentProps()}
+              style={{
+                background: "white",
+                border: "1px solid #cbd5e1",
+                borderRadius: "12px",
+                boxShadow: "0 16px 40px rgba(15, 23, 42, 0.16)",
+                padding: "14px",
+                width: "260px",
+              }}
+            >
+              <div {...api.getArrowProps()}>
+                <div {...api.getArrowTipProps()} />
+              </div>
+              <strong>Anchored to inline text</strong>
+              <p style={{ color: "#475569", fontSize: "14px", lineHeight: 1.5, marginTop: "8px" }}>
+                The inline middleware picks the text rect closest to the pointer, instead of the whole wrapped link box.
+              </p>
+            </div>
+          </div>
+        </Portal>
+      )}
+    </main>
+  )
+}
diff --git a/packages/machines/hover-card/src/hover-card.connect.ts b/packages/machines/hover-card/src/hover-card.connect.ts
index b308bb9458..f6fb5d1277 100644
--- a/packages/machines/hover-card/src/hover-card.connect.ts
+++ b/packages/machines/hover-card/src/hover-card.connect.ts
@@ -66,10 +66,12 @@ export function connect<T extends PropTypes>(service: HoverCardService, normaliz
           if (event.pointerType === "touch") return
           if (prop("disabled")) return
           const shouldSwitch = open && value != null && !current
+          const point = { x: event.clientX, y: event.clientY }
           send({
             type: shouldSwitch ? "TRIGGER_VALUE.SET" : "POINTER_ENTER",
             src: "trigger",
             value,
+            point,
           })
         },
         onPointerLeave(event) {
diff --git a/packages/machines/hover-card/src/hover-card.machine.ts b/packages/machines/hover-card/src/hover-card.machine.ts
index 24be139b39..9c25341aae 100644
--- a/packages/machines/hover-card/src/hover-card.machine.ts
+++ b/packages/machines/hover-card/src/hover-card.machine.ts
@@ -1,11 +1,19 @@
 import { createGuards, createMachine } from "@zag-js/core"
 import { trackDismissableElement } from "@zag-js/dismissable"
-import { getPlacement } from "@zag-js/popper"
+import { getPlacement, type PositioningOptions } from "@zag-js/popper"
 import * as dom from "./hover-card.dom"
 import type { HoverCardSchema, Placement } from "./hover-card.types"
 
+type Point = { x: number; y: number }
+
 const { not, and } = createGuards<HoverCardSchema>()
 
+function getPositioningOptions(positioning: PositioningOptions, point: Point | null): PositioningOptions {
+  if (!positioning.inline || point == null) return positioning
+  if (positioning.inline === true) return { ...positioning, inline: point }
+  return { ...positioning, inline: { ...point, ...positioning.inline } }
+}
+
 export const machine = createMachine<HoverCardSchema>({
   props({ props }) {
     return {
@@ -15,6 +23,7 @@ export const machine = createMachine<HoverCardSchema>({
       ...props,
       positioning: {
         placement: "bottom",
+        inline: false,
         ...props.positioning,
       },
     }
@@ -37,6 +46,9 @@ export const machine = createMachine<HoverCardSchema>({
       isPointer: bindable<boolean>(() => ({
         defaultValue: false,
       })),
+      pointerPoint: bindable<Point | null>(() => ({
+        defaultValue: null,
+      })),
       triggerValue: bindable<string | null>(() => ({
         defaultValue: prop("defaultTriggerValue") ?? null,
         value: prop("triggerValue"),
@@ -63,29 +75,29 @@ export const machine = createMachine<HoverCardSchema>({
 
   on: {
     "TRIGGER_VALUE.SET": {
-      actions: ["setTriggerValue", "reposition"],
+      actions: ["setPointerPoint", "setTriggerValue", "reposition"],
     },
   },
 
   states: {
     closed: {
       tags: ["closed"],
-      entry: ["clearIsPointer"],
+      entry: ["clearIsPointer", "clearPointerPoint"],
       on: {
         "CONTROLLED.OPEN": {
           target: "open",
         },
         POINTER_ENTER: {
           target: "opening",
-          actions: ["setIsPointer", "setTriggerValue"],
+          actions: ["setIsPointer", "setPointerPoint", "setTriggerValue"],
         },
         TRIGGER_FOCUS: {
           target: "opening",
-          actions: ["setTriggerValue"],
+          actions: ["clearPointerPoint", "setTriggerValue"],
         },
         OPEN: {
           target: "opening",
-          actions: ["setTriggerValue"],
+          actions: ["clearPointerPoint", "setTriggerValue"],
         },
       },
     },
@@ -146,7 +158,7 @@ export const machine = createMachine<HoverCardSchema>({
         ],
         "TRIGGER_VALUE.SET": {
           // Stay in opening state but update trigger value (will reposition when opened)
-          actions: ["setTriggerValue"],
+          actions: ["setPointerPoint", "setTriggerValue"],
         },
       },
     },
@@ -159,7 +171,7 @@ export const machine = createMachine<HoverCardSchema>({
           target: "closed",
         },
         POINTER_ENTER: {
-          actions: ["setIsPointer"],
+          actions: ["setIsPointer", "setPointerPoint"],
         },
         POINTER_LEAVE: {
           target: "closing",
@@ -214,15 +226,15 @@ export const machine = createMachine<HoverCardSchema>({
         POINTER_ENTER: {
           target: "open",
           // no need to invokeOnOpen here because it's still open (but about to close)
-          actions: ["setIsPointer"],
+          actions: ["setIsPointer", "setPointerPoint"],
         },
         TRIGGER_FOCUS: {
           target: "open",
-          actions: ["setTriggerValue"],
+          actions: ["clearPointerPoint", "setTriggerValue"],
         },
         "TRIGGER_VALUE.SET": {
           target: "open",
-          actions: ["setTriggerValue", "reposition"],
+          actions: ["setPointerPoint", "setTriggerValue", "reposition"],
         },
       },
     },
@@ -257,8 +269,9 @@ export const machine = createMachine<HoverCardSchema>({
         }
         const getPositionerEl = () => dom.getPositionerEl(scope)
         const getTriggerEl = () => dom.getActiveTriggerEl(scope, context.get("triggerValue"))
+        const positioning = getPositioningOptions(prop("positioning"), context.get("pointerPoint"))
         return getPlacement(getTriggerEl, getPositionerEl, {
-          ...prop("positioning"),
+          ...positioning,
           defer: true,
           onComplete(data) {
             context.set("currentPlacement", data.placement)
@@ -298,12 +311,22 @@ export const machine = createMachine<HoverCardSchema>({
       clearIsPointer({ context }) {
         context.set("isPointer", false)
       },
+      setPointerPoint({ context, event }) {
+        if (!event.point) return
+        context.set("pointerPoint", event.point)
+      },
+      clearPointerPoint({ context }) {
+        context.set("pointerPoint", null)
+      },
       reposition({ context, prop, scope, event }) {
         const getPositionerEl = () => dom.getPositionerEl(scope)
         const getTriggerEl = () => dom.getActiveTriggerEl(scope, context.get("triggerValue"))
+        const positioning = getPositioningOptions(
+          { ...prop("positioning"), ...event.options },
+          context.get("pointerPoint"),
+        )
         getPlacement(getTriggerEl, getPositionerEl, {
-          ...prop("positioning"),
-          ...event.options,
+          ...positioning,
           defer: true,
           listeners: false,
           onComplete(data) {
diff --git a/packages/machines/hover-card/src/hover-card.types.ts b/packages/machines/hover-card/src/hover-card.types.ts
index 574ddea52c..f419e14f11 100644
--- a/packages/machines/hover-card/src/hover-card.types.ts
+++ b/packages/machines/hover-card/src/hover-card.types.ts
@@ -95,6 +95,10 @@ interface PrivateContext {
    * Whether the hover card is open by pointer
    */
   isPointer: boolean
+  /**
+   * The last pointer position used to select an inline trigger rect.
+   */
+  pointerPoint: { x: number; y: number } | null
   /**
    * Whether the hover card is open
    */
diff --git a/packages/utilities/popper/src/get-anchor.ts b/packages/utilities/popper/src/get-anchor.ts
index b29739bc90..669730e119 100644
--- a/packages/utilities/popper/src/get-anchor.ts
+++ b/packages/utilities/popper/src/get-anchor.ts
@@ -29,15 +29,25 @@ export function getAnchorElement(
   anchorElement: MaybeRectElement,
   getAnchorRect?: (anchor: MaybeRectElement) => AnchorRect | null,
 ): VirtualElement {
+  const getRect = () => {
+    const anchor = anchorElement
+    const anchorRect = getAnchorRect?.(anchor)
+    if (anchorRect || !anchor) {
+      return getDOMRect(anchorRect)
+    }
+    return anchor.getBoundingClientRect()
+  }
+
   return {
     contextElement: isHTMLElement(anchorElement) ? anchorElement : anchorElement?.contextElement,
-    getBoundingClientRect: () => {
+    getBoundingClientRect: getRect,
+    getClientRects: () => {
       const anchor = anchorElement
       const anchorRect = getAnchorRect?.(anchor)
       if (anchorRect || !anchor) {
-        return getDOMRect(anchorRect)
+        return [getDOMRect(anchorRect)]
       }
-      return anchor.getBoundingClientRect()
+      return "getClientRects" in anchor ? Array.from(anchor.getClientRects()) : [anchor.getBoundingClientRect()]
     },
   } as VirtualElement
 }
diff --git a/packages/utilities/popper/src/get-placement.ts b/packages/utilities/popper/src/get-placement.ts
index a545fb661c..d2af35957d 100644
--- a/packages/utilities/popper/src/get-placement.ts
+++ b/packages/utilities/popper/src/get-placement.ts
@@ -1,5 +1,16 @@
 import type { AutoUpdateOptions, Middleware, Placement } from "@floating-ui/dom"
-import { arrow, autoUpdate, computePosition, flip, hide, limitShift, offset, shift, size } from "@floating-ui/dom"
+import {
+  arrow,
+  autoUpdate,
+  computePosition,
+  flip,
+  hide,
+  inline,
+  limitShift,
+  offset,
+  shift,
+  size,
+} from "@floating-ui/dom"
 import { getComputedStyle, getWindow, isHTMLElement, raf } from "@zag-js/dom-query"
 import { compact, isNull, noop } from "@zag-js/utils"
 import { getAnchorElement } from "./get-anchor"
@@ -14,6 +25,7 @@ const defaultOptions: PositioningOptions = {
   restoreStyles: false,
   gutter: 8,
   flip: true,
+  inline: false,
   slide: true,
   overlap: false,
   sameWidth: false,
@@ -32,6 +44,7 @@ interface Options extends RequiredBy<
   | "listeners"
   | "gutter"
   | "flip"
+  | "inline"
   | "slide"
   | "overlap"
   | "sameWidth"
@@ -92,6 +105,11 @@ function getFlipMiddleware(opts: Options) {
   })
 }
 
+function getInlineMiddleware(opts: Options) {
+  if (!opts.inline) return
+  return inline(opts.inline === true ? undefined : opts.inline)
+}
+
 function getShiftMiddleware(opts: Options) {
   if (!opts.slide && !opts.overlap) return
   return shift(() => {
@@ -249,6 +267,7 @@ function getPlacementImpl(
     restoreArrowStyles = options.restoreStyles ? createStyleCleanup(arrowEl, arrowStyleProps) : undefined
 
     middleware = [
+      getInlineMiddleware(options),
       getOffsetMiddleware(arrowEl, options),
       getFlipMiddleware(options),
       getShiftMiddleware(options),
diff --git a/packages/utilities/popper/src/index.ts b/packages/utilities/popper/src/index.ts
index 3ad2e4c26e..9b9ad39cd0 100644
--- a/packages/utilities/popper/src/index.ts
+++ b/packages/utilities/popper/src/index.ts
@@ -6,6 +6,7 @@ export type {
   AutoUpdateOptions,
   Boundary,
   ComputePositionReturn,
+  InlineOptions,
   Placement,
   PlacementAlign,
   PlacementSide,
diff --git a/packages/utilities/popper/src/types.ts b/packages/utilities/popper/src/types.ts
index fdb12ef0aa..76df1c17d7 100644
--- a/packages/utilities/popper/src/types.ts
+++ b/packages/utilities/popper/src/types.ts
@@ -1,4 +1,11 @@
-import type { AutoUpdateOptions, Boundary, ComputePositionReturn, Placement, VirtualElement } from "@floating-ui/dom"
+import type {
+  AutoUpdateOptions,
+  Boundary,
+  ComputePositionReturn,
+  InlineOptions,
+  Placement,
+  VirtualElement,
+} from "@floating-ui/dom"
 
 export type MaybeRectElement = HTMLElement | VirtualElement | null
 
@@ -58,6 +65,10 @@ export interface PositioningOptions {
    * Whether to flip the placement
    */
   flip?: boolean | Placement[] | undefined
+  /**
+   * Whether to use the inline middleware to improve positioning for inline reference elements that span multiple lines.
+   */
+  inline?: boolean | InlineOptions | undefined
   /**
    * Whether the popover should slide when it overflows.
    */
@@ -121,4 +132,4 @@ export interface PositioningOptions {
     | undefined
 }
 
-export type { AutoUpdateOptions, Boundary, ComputePositionReturn, Placement }
+export type { AutoUpdateOptions, Boundary, ComputePositionReturn, InlineOptions, Placement }
diff --git a/shared/src/routes.ts b/shared/src/routes.ts
index 9aa280ac5f..0dfcc7e5f9 100644
--- a/shared/src/routes.ts
+++ b/shared/src/routes.ts
@@ -333,6 +333,7 @@ export const componentRoutes: ComponentRoute[] = [
     examples: [
       { slug: "basic", title: "Basic" },
       { slug: "hovercard-in-dialog", title: "With Dialog" },
+      { slug: "inline-positioning", title: "Inline Positioning" },
       { slug: "multiple-trigger", title: "Multiple Trigger" },
     ],
   },
diff --git a/website/data/components/hover-card.mdx b/website/data/components/hover-card.mdx
index 2a6540c1c6..dde46477e5 100644
--- a/website/data/components/hover-card.mdx
+++ b/website/data/components/hover-card.mdx
@@ -98,6 +98,19 @@ const service = useMachine(hoverCard.machine, {
 })
 ```
 
+Use `positioning.inline` when the trigger is inline text that can wrap across
+multiple lines. The hover card will choose the trigger rect closest to the
+pointer that opened it.
+
+```tsx
+const service = useMachine(hoverCard.machine, {
+  positioning: {
+    placement: "top",
+    inline: true,
+  },
+})
+```
+
 ### Multiple triggers
 
 A single hover card instance can be shared across multiple trigger elements.