diff --git a/CHANGELOG.md b/CHANGELOG.md
index 1c2d0b1..ef81dff 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -28,6 +28,9 @@ Additions
 - Added the ability to set the anchor that should be used when a tooltip attaches to an element or the mouse
 - Added the ability to display tooltips using the auto-nav style even when using the mouse
 
+Improvements
+- Allow scrolling panels to set height based on children with TreatSizeAsMaximum
+
 ## 6.3.1
 
 No code changes
diff --git a/Demos/UiDemo.cs b/Demos/UiDemo.cs
index 934d010..c401601 100644
--- a/Demos/UiDemo.cs
+++ b/Demos/UiDemo.cs
@@ -223,14 +223,16 @@ namespace Demos {
                 PositionOffset = new Vector2(0, 1)
             });
 
-            var subPanel = this.root.AddChild(new Panel(Anchor.AutoLeft, new Vector2(1, 25), Vector2.Zero, false, true) {
-                PositionOffset = new Vector2(0, 1),
+            this.root.AddChild(new VerticalSpace(3));
+            var dynamicSubPanel = this.root.AddChild(new Panel(Anchor.AutoLeft, new Vector2(1, 50), Vector2.Zero, true, true) {
                 Texture = null,
-                ChildPadding = Padding.Empty
+                ChildPadding = Padding.Empty,
+                TreatSizeAsMaximum = true
+            });
+            dynamicSubPanel.AddChild(new Paragraph(Anchor.AutoLeft, 1, "This is a dynamic height nested panel with a maximum height, at which point it starts displaying a scroll bar instead!"));
+            dynamicSubPanel.AddChild(new Button(Anchor.AutoLeft, new Vector2(1, 10), "Press to add more") {
+                OnPressed = _ => dynamicSubPanel.AddChild(new Button(Anchor.AutoLeft, new Vector2(1, 10), "I do nothing"))
             });
-            subPanel.AddChild(new Paragraph(Anchor.AutoLeft, 1, "This is a nested scrolling panel!"));
-            for (var i = 1; i <= 5; i++)
-                subPanel.AddChild(new Button(Anchor.AutoLeft, new Vector2(1, 10), $"Button {i}") {PositionOffset = new Vector2(0, 1)});
 
             const string alignText = "Paragraphs can have <l Left>left</l> aligned text, <l Right>right</l> aligned text and <l Center>center</l> aligned text.";
             this.root.AddChild(new VerticalSpace(3));
diff --git a/MLEM.Ui/Elements/Panel.cs b/MLEM.Ui/Elements/Panel.cs
index 2f1dc9d..2da13d3 100644
--- a/MLEM.Ui/Elements/Panel.cs
+++ b/MLEM.Ui/Elements/Panel.cs
@@ -119,8 +119,8 @@ namespace MLEM.Ui.Elements {
         public override void ForceUpdateArea() {
             if (this.scrollOverflow) {
                 // sanity check
-                if (this.SetHeightBasedOnChildren)
-                    throw new NotSupportedException("A panel can't both set height based on children and scroll overflow");
+                if (this.SetHeightBasedOnChildren && !this.TreatSizeAsMaximum)
+                    throw new NotSupportedException("A panel can't both scroll overflow and set height based on children without a maximum");
                 foreach (var child in this.Children) {
                     if (child != this.ScrollBar && !child.Anchor.IsAuto())
                         throw new NotSupportedException($"A panel that handles overflow can't contain non-automatic anchors ({child})");
@@ -295,7 +295,7 @@ namespace MLEM.Ui.Elements {
             if (this.Children.Count > 1) {
                 var highestValidChild = this.Children.FirstOrDefault(c => c != this.ScrollBar && !c.IsHidden);
                 var lowestChild = this.GetLowestChild(c => c != this.ScrollBar && !c.IsHidden, true);
-                childrenHeight = lowestChild.GetTotalCoveredArea(false).Bottom - highestValidChild.Area.Top;
+                childrenHeight = lowestChild.GetTotalCoveredArea(true).Bottom - highestValidChild.UnscrolledArea.Top;
             } else {
                 // if we only have one child (the scroll bar), then the children take up no visual height
                 childrenHeight = 0;