diff --git a/Source/Editor/GUI/NavigationBar.cs b/Source/Editor/GUI/NavigationBar.cs
index bedf4c070..eb87eaafc 100644
--- a/Source/Editor/GUI/NavigationBar.cs
+++ b/Source/Editor/GUI/NavigationBar.cs
@@ -11,6 +11,9 @@ namespace FlaxEditor.GUI
     /// <seealso cref="FlaxEngine.GUI.Panel" />
     public class NavigationBar : Panel
     {
+        private float _toolstripHeight = 0;
+        private Margin _toolstripMargin;
+
         /// <summary>
         /// The default buttons margin.
         /// </summary>
@@ -50,9 +53,42 @@ namespace FlaxEditor.GUI
         {
             if (toolstrip == null)
                 return;
+
+            if (_toolstripHeight <= 0.0f)
+            {
+                // Cache initial toolstrip state
+                _toolstripHeight = toolstrip.Height;
+                _toolstripMargin = toolstrip.ItemsMargin;
+            }
+
+            // Control toolstrip bottom margin to prevent navigation bar scroll going over the buttons
+            var toolstripLocked = toolstrip.IsLayoutLocked;
+            toolstrip.IsLayoutLocked = true;
+            var toolstripHeight = _toolstripHeight;
+            var toolstripMargin = _toolstripMargin;
+            if (HScrollBar.Visible)
+            {
+                float scrollMargin = 8;
+                toolstripHeight += scrollMargin;
+                toolstripMargin.Bottom += scrollMargin;
+            }
+            toolstrip.Height = toolstripHeight;
+            toolstrip.IsLayoutLocked = toolstripLocked;
+            toolstrip.ItemsMargin = toolstripMargin;
+
             var lastToolstripButton = toolstrip.LastButton;
             var parentSize = Parent.Size;
             Bounds = new Rectangle(lastToolstripButton.Right + 8.0f, 0, parentSize.X - X - 8.0f, toolstrip.Height);
         }
+
+        /// <inheritdoc />
+        public override void PerformLayout(bool force = false)
+        {
+            base.PerformLayout(force);
+
+            // Stretch excluding toolstrip margin to fill the space
+            if (Parent is ToolStrip toolStrip)
+                Height = toolStrip.Height;
+        }
     }
 }
diff --git a/Source/Editor/GUI/ToolStrip.cs b/Source/Editor/GUI/ToolStrip.cs
index 09f61b71d..eeba67cde 100644
--- a/Source/Editor/GUI/ToolStrip.cs
+++ b/Source/Editor/GUI/ToolStrip.cs
@@ -13,15 +13,7 @@ namespace FlaxEditor.GUI
     /// <seealso cref="FlaxEngine.GUI.ContainerControl" />
     public class ToolStrip : ContainerControl
     {
-        /// <summary>
-        /// The default margin vertically.
-        /// </summary>
-        public const int DefaultMarginV = 1;
-
-        /// <summary>
-        /// The default margin horizontally.
-        /// </summary>
-        public const int DefaultMarginH = 2;
+        private Margin _itemsMargin;
 
         /// <summary>
         /// Event fired when button gets clicked with the primary mouse button.
@@ -66,10 +58,26 @@ namespace FlaxEditor.GUI
             }
         }
 
+        /// <summary>
+        /// Gets or sets the space around items.
+        /// </summary>
+        public Margin ItemsMargin
+        {
+            get => _itemsMargin;
+            set
+            {
+                if (_itemsMargin != value)
+                {
+                    _itemsMargin = value;
+                    PerformLayout();
+                }
+            }
+        }
+
         /// <summary>
         /// Gets the height for the items.
         /// </summary>
-        public float ItemsHeight => Height - 2 * DefaultMarginV;
+        public float ItemsHeight => Height - _itemsMargin.Height;
 
         /// <summary>
         /// Initializes a new instance of the <see cref="ToolStrip"/> class.
@@ -82,6 +90,7 @@ namespace FlaxEditor.GUI
             AnchorPreset = AnchorPresets.HorizontalStretchTop;
             BackgroundColor = Style.Current.LightBackground;
             Offsets = new Margin(0, 0, y, height * Editor.Instance.Options.Options.Interface.IconsScale);
+            _itemsMargin = new Margin(2, 2, 1, 1);
         }
 
         /// <summary>
@@ -161,7 +170,7 @@ namespace FlaxEditor.GUI
         protected override void PerformLayoutBeforeChildren()
         {
             // Arrange controls
-            float x = DefaultMarginH;
+            float x = _itemsMargin.Left;
             float h = ItemsHeight;
             for (int i = 0; i < _children.Count; i++)
             {
@@ -169,8 +178,8 @@ namespace FlaxEditor.GUI
                 if (c.Visible)
                 {
                     var w = c.Width;
-                    c.Bounds = new Rectangle(x, DefaultMarginV, w, h);
-                    x += w + DefaultMarginH;
+                    c.Bounds = new Rectangle(x, _itemsMargin.Top, w, h);
+                    x += w + _itemsMargin.Width;
                 }
             }
         }
diff --git a/Source/Editor/Surface/VisjectSurface.cs b/Source/Editor/Surface/VisjectSurface.cs
index 3bdad7eab..8cbcb4a21 100644
--- a/Source/Editor/Surface/VisjectSurface.cs
+++ b/Source/Editor/Surface/VisjectSurface.cs
@@ -543,11 +543,12 @@ namespace FlaxEditor.Surface
                 nodes.Add(context);
                 context = context.Parent;
             }
+            float margin = 1;
             float x = NavigationBar.DefaultButtonsMargin;
-            float h = toolStrip.ItemsHeight - 2 * ToolStrip.DefaultMarginV;
+            float h = toolStrip.ItemsHeight - 2 * margin;
             for (int i = nodes.Count - 1; i >= 0; i--)
             {
-                var button = new VisjectContextNavigationButton(this, nodes[i].Context, x, ToolStrip.DefaultMarginV, h);
+                var button = new VisjectContextNavigationButton(this, nodes[i].Context, x, margin, h);
                 button.PerformLayout();
                 x += button.Width + NavigationBar.DefaultButtonsMargin;
                 navigationBar.AddChild(button);
diff --git a/Source/Editor/Windows/ContentWindow.Navigation.cs b/Source/Editor/Windows/ContentWindow.Navigation.cs
index 1033db472..53dd6447b 100644
--- a/Source/Editor/Windows/ContentWindow.Navigation.cs
+++ b/Source/Editor/Windows/ContentWindow.Navigation.cs
@@ -194,17 +194,18 @@ namespace FlaxEditor.Windows
                 nodes.Add(node);
                 node = node.ParentNode;
             }
+            float margin = 1;
             float x = NavigationBar.DefaultButtonsMargin;
-            float h = _toolStrip.ItemsHeight - 2 * ToolStrip.DefaultMarginV;
+            float h = _toolStrip.ItemsHeight - 2 * margin;
             for (int i = nodes.Count - 1; i >= 0; i--)
             {
-                var button = new ContentNavigationButton(nodes[i], x, ToolStrip.DefaultMarginV, h);
+                var button = new ContentNavigationButton(nodes[i], x, margin, h);
                 button.PerformLayout();
                 x += button.Width + NavigationBar.DefaultButtonsMargin;
                 _navigationBar.AddChild(button);
                 if (i > 0)
                 {
-                    var separator = new ContentNavigationSeparator(button, x, ToolStrip.DefaultMarginV, h);
+                    var separator = new ContentNavigationSeparator(button, x, margin, h);
                     separator.PerformLayout();
                     x += separator.Width + NavigationBar.DefaultButtonsMargin;
                     _navigationBar.AddChild(separator);
@@ -215,6 +216,7 @@ namespace FlaxEditor.Windows
             // Update
             _navigationBar.IsLayoutLocked = wasLayoutLocked;
             _navigationBar.PerformLayout();
+            UpdateNavigationBarBounds();
         }
 
         /// <summary>
diff --git a/Source/Editor/Windows/ContentWindow.cs b/Source/Editor/Windows/ContentWindow.cs
index cf33d0b63..3d2ec4a66 100644
--- a/Source/Editor/Windows/ContentWindow.cs
+++ b/Source/Editor/Windows/ContentWindow.cs
@@ -1016,6 +1016,21 @@ namespace FlaxEditor.Windows
             _navigateUpButton.Enabled = folder != null && _tree.SelectedNode != _root;
         }
 
+        private void UpdateNavigationBarBounds()
+        {
+            if (_navigationBar != null && _toolStrip != null)
+            {
+                var bottomPrev = _toolStrip.Bottom;
+                _navigationBar.UpdateBounds(_toolStrip);
+                if (bottomPrev != _toolStrip.Bottom)
+                {
+                    // Navigation bar changed toolstrip height
+                    _split.Offsets = new Margin(0, 0, _toolStrip.Bottom, 0);
+                    PerformLayout();
+                }
+            }
+        }
+
         /// <inheritdoc />
         public override void OnInit()
         {
@@ -1200,9 +1215,9 @@ namespace FlaxEditor.Windows
         /// <inheritdoc />
         protected override void PerformLayoutBeforeChildren()
         {
-            base.PerformLayoutBeforeChildren();
+            UpdateNavigationBarBounds();
 
-            _navigationBar?.UpdateBounds(_toolStrip);
+            base.PerformLayoutBeforeChildren();
         }
 
         /// <inheritdoc />