diff --git a/sway/input/cursor.c b/sway/input/cursor.c
index 1e3e16d6..d8b1abeb 100644
--- a/sway/input/cursor.c
+++ b/sway/input/cursor.c
@@ -83,7 +83,28 @@ static struct wlr_surface *layer_surface_popup_at(struct sway_output *output,
 struct sway_node *node_at_coords(
 		struct sway_seat *seat, double lx, double ly,
 		struct wlr_surface **surface, double *sx, double *sy) {
-	// check for unmanaged views first
+	// find the output the cursor is on
+	struct wlr_output *wlr_output = wlr_output_layout_output_at(
+			root->output_layout, lx, ly);
+	if (wlr_output == NULL) {
+		return NULL;
+	}
+	struct sway_output *output = wlr_output->data;
+	if (!output || !output->enabled) {
+		// output is being destroyed or is being enabled
+		return NULL;
+	}
+	double ox = lx, oy = ly;
+	wlr_output_layout_output_coords(root->output_layout, wlr_output, &ox, &oy);
+
+	// layer surfaces on the overlay layer are rendered on top
+	if ((*surface = layer_surface_at(output,
+				&output->layers[ZWLR_LAYER_SHELL_V1_LAYER_OVERLAY],
+				ox, oy, sx, sy))) {
+		return NULL;
+	}
+
+	// check for unmanaged views
 #if HAVE_XWAYLAND
 	struct wl_list *unmanaged = &root->xwayland_unmanaged;
 	struct sway_xwayland_unmanaged *unmanaged_surface;
@@ -101,19 +122,6 @@ struct sway_node *node_at_coords(
 		}
 	}
 #endif
-	// find the output the cursor is on
-	struct wlr_output *wlr_output = wlr_output_layout_output_at(
-			root->output_layout, lx, ly);
-	if (wlr_output == NULL) {
-		return NULL;
-	}
-	struct sway_output *output = wlr_output->data;
-	if (!output || !output->enabled) {
-		// output is being destroyed or is being enabled
-		return NULL;
-	}
-	double ox = lx, oy = ly;
-	wlr_output_layout_output_coords(root->output_layout, wlr_output, &ox, &oy);
 
 	if (root->fullscreen_global) {
 		// Try fullscreen container
@@ -131,11 +139,6 @@ struct sway_node *node_at_coords(
 		return NULL;
 	}
 
-	if ((*surface = layer_surface_at(output,
-				&output->layers[ZWLR_LAYER_SHELL_V1_LAYER_OVERLAY],
-				ox, oy, sx, sy))) {
-		return NULL;
-	}
 	if (ws->fullscreen) {
 		// Try transient containers
 		for (int i = 0; i < ws->floating->length; ++i) {