diff --git a/src/DockAreaTitleBar.cpp b/src/DockAreaTitleBar.cpp
index e86b12e..16c690d 100644
--- a/src/DockAreaTitleBar.cpp
+++ b/src/DockAreaTitleBar.cpp
@@ -188,7 +188,7 @@ void DockAreaTitleBarPrivate::createButtons()
 	AutoHideButton->setAutoRaise(true);
 	AutoHideButton->setCheckable(true);
 	AutoHideButton->setChecked(false);
-	internal::setToolTip(AutoHideButton, QObject::tr("Toggle Auto Hide Group"));
+	internal::setToolTip(AutoHideButton, QObject::tr("Toggle Auto Hide"));
 	internal::setButtonIcon(AutoHideButton, QStyle::SP_DialogOkButton, ads::AutoHideIcon);
 	AutoHideButton->setSizePolicy(ButtonSizePolicy);
 	Layout->addWidget(AutoHideButton, 0);
@@ -199,14 +199,7 @@ void DockAreaTitleBarPrivate::createButtons()
 	CloseButton->setObjectName("dockAreaCloseButton");
 	CloseButton->setAutoRaise(true);
 	internal::setButtonIcon(CloseButton, QStyle::SP_TitleBarCloseButton, ads::DockAreaCloseIcon);
-	if (testConfigFlag(CDockManager::DockAreaCloseButtonClosesTab))
-	{
-		internal::setToolTip(CloseButton, QObject::tr("Close Active Tab"));
-	}
-	else
-	{
-		internal::setToolTip(CloseButton, QObject::tr("Close Group"));
-	}
+    internal::setToolTip(CloseButton, _this->closeGroupToolTip());
 	CloseButton->setSizePolicy(ButtonSizePolicy);
 	CloseButton->setIconSize(QSize(16, 16));
 	Layout->addWidget(CloseButton, 0);
@@ -664,6 +657,22 @@ int CDockAreaTitleBar::indexOf(QWidget *widget) const
 	return d->Layout->indexOf(widget);
 }
 
+//============================================================================
+QString CDockAreaTitleBar::closeGroupToolTip() const
+{
+	if (d->DockArea->isOverlayed())
+	{
+		return QObject::tr("Close Overlay");
+	    
+	}
+	if (CDockManager::testConfigFlag(CDockManager::DockAreaCloseButtonClosesTab))
+	{
+		return QObject::tr("Close Active Tab");
+	}
+
+    return QObject::tr("Close Group") ;
+}
+
 //============================================================================
 CTitleBarButton::CTitleBarButton(bool visible, QWidget* parent)
 	: tTitleBarButton(parent),
diff --git a/src/DockAreaTitleBar.h b/src/DockAreaTitleBar.h
index b3af047..63d6749 100644
--- a/src/DockAreaTitleBar.h
+++ b/src/DockAreaTitleBar.h
@@ -155,6 +155,12 @@ public:
 	 */
 	int indexOf(QWidget *widget) const;
 
+	/**
+	 * Close group tool tip based on the current state
+	 * Overlayed widgets can only have one dock widget so it does not make sense for the tooltip to show close group
+	 */
+	QString closeGroupToolTip() const;
+
 Q_SIGNALS:
 	/**
 	 * This signal is emitted if a tab in the tab bar is clicked by the user
diff --git a/src/DockAreaWidget.cpp b/src/DockAreaWidget.cpp
index e471eb0..598ac78 100644
--- a/src/DockAreaWidget.cpp
+++ b/src/DockAreaWidget.cpp
@@ -832,7 +832,7 @@ void CDockAreaWidget::markTitleBarMenuOutdated()
 
 
 //============================================================================
-void CDockAreaWidget::updateAutoHidebuttonCheckState()
+void CDockAreaWidget::updateAutoHideButtonCheckState()
 {
 	auto autoHideButton = titleBarButton(TitleBarButtonAutoHide);
 	autoHideButton->blockSignals(true);
@@ -840,12 +840,21 @@ void CDockAreaWidget::updateAutoHidebuttonCheckState()
 	autoHideButton->blockSignals(false);
 }
 
+
+//============================================================================
 void CDockAreaWidget::updateTitleBarButtonVisibility(bool IsTopLevel) const
 {
 	d->updateTitleBarButtonVisibility(IsTopLevel);
 }
 
 
+//============================================================================
+void CDockAreaWidget::updateTitleBarButtonToolTip()
+{
+	internal::setToolTip(titleBarButton(TitleBarButtonClose), titleBar()->closeGroupToolTip());
+}
+
+
 //============================================================================
 void CDockAreaWidget::saveState(QXmlStreamWriter& s) const
 {
diff --git a/src/DockAreaWidget.h b/src/DockAreaWidget.h
index 503df45..f94fc34 100644
--- a/src/DockAreaWidget.h
+++ b/src/DockAreaWidget.h
@@ -154,13 +154,18 @@ protected:
 	/*
 	 * Update the auto hide button checked state based on if it's overlayed or not
 	 */
-	void updateAutoHidebuttonCheckState();
+	void updateAutoHideButtonCheckState();
 
 	/*
 	 * Update the title bar button visibility based on if it's top level or not
 	 */
 	void updateTitleBarButtonVisibility(bool IsTopLevel) const;
 
+	/*
+	 * Update the title bar button tooltips
+	 */
+	void updateTitleBarButtonToolTip();
+
 protected Q_SLOTS:
 	void toggleView(bool Open);
 
diff --git a/src/DockContainerWidget.cpp b/src/DockContainerWidget.cpp
index fb72c92..312d726 100644
--- a/src/DockContainerWidget.cpp
+++ b/src/DockContainerWidget.cpp
@@ -1058,7 +1058,8 @@ bool DockContainerWidgetPrivate::restoreOverlayDockArea(CDockingStateReader& s,
 
         dockContainer->hide();
         DockArea = dockContainer->dockAreaWidget();
-		DockArea->updateAutoHidebuttonCheckState();
+		DockArea->updateAutoHideButtonCheckState();
+        DockArea->updateTitleBarButtonToolTip();
 	}
 
 	while (s.readNextStartElement())
@@ -1653,7 +1654,8 @@ void CDockContainerWidget::removeDockArea(CDockAreaWidget* area)
         dumpLayout();
         d->emitDockAreasRemoved();
         area->setOverlayDockContainer(nullptr);
-		area->updateAutoHidebuttonCheckState();
+		area->updateAutoHideButtonCheckState();
+        area->updateTitleBarButtonToolTip();
 		return;
 	}
 
diff --git a/src/OverlayDockContainer.cpp b/src/OverlayDockContainer.cpp
index 28be352..d908dcd 100644
--- a/src/OverlayDockContainer.cpp
+++ b/src/OverlayDockContainer.cpp
@@ -83,7 +83,8 @@ COverlayDockContainer::COverlayDockContainer(CDockManager* DockManager, CDockWid
 	d->DockArea = new CDockAreaWidget(DockManager, parent);
 	d->DockArea->setObjectName("OverlayDockArea");
 	d->DockArea->setOverlayDockContainer(this);
-	d->DockArea->updateAutoHidebuttonCheckState();
+	d->DockArea->updateAutoHideButtonCheckState();
+	d->DockArea->updateTitleBarButtonToolTip();
 
 	QBoxLayout* l = new QBoxLayout(QBoxLayout::LeftToRight);
 	d->Splitter = new QSplitter(Qt::Orientation::Horizontal);