diff --git a/draftlogs/7725_fix.md b/draftlogs/7725_fix.md
new file mode 100644
index 00000000000..45b670d124e
--- /dev/null
+++ b/draftlogs/7725_fix.md
@@ -0,0 +1 @@
+ - Fix sankey nodes being clipped at the bottom edge when using user-positioned nodes (`node.x`/`node.y`) near `y=1.0` or with `arrangement="snap"` collision resolution [[#7725](https://github.com/plotly/plotly.js/pull/7725)]
diff --git a/src/traces/sankey/render.js b/src/traces/sankey/render.js
index a07d18a9c9e..b1e2ff3f54b 100644
--- a/src/traces/sankey/render.js
+++ b/src/traces/sankey/render.js
@@ -200,6 +200,17 @@ function sankeyModel(layout, d, traceIndex) {
                 }
                 y = node.y1 + nodePad;
             }
+            // If the last node extends past the bottom, shift the whole column up
+            if(n > 0) {
+                var lastNode = nodes[n - 1];
+                if(lastNode.y1 > height) {
+                    dy = lastNode.y1 - height;
+                    for(i = 0; i < n; ++i) {
+                        nodes[i].y0 -= dy;
+                        nodes[i].y1 -= dy;
+                    }
+                }
+            }
         });
     }
 
@@ -251,8 +262,12 @@ function sankeyModel(layout, d, traceIndex) {
                 graph.nodes[i].x1 = pos[0] + nodeThickness / 2;
 
                 var nodeHeight = graph.nodes[i].y1 - graph.nodes[i].y0;
-                graph.nodes[i].y0 = pos[1] - nodeHeight / 2;
-                graph.nodes[i].y1 = pos[1] + nodeHeight / 2;
+                var yCenter = pos[1];
+                // Clamp so node doesn't extend past bottom or top
+                yCenter = Math.max(yCenter, nodeHeight / 2);
+                yCenter = Math.min(yCenter, height - nodeHeight / 2);
+                graph.nodes[i].y0 = yCenter - nodeHeight / 2;
+                graph.nodes[i].y1 = yCenter + nodeHeight / 2;
             }
         }
         if(trace.arrangement === 'snap') {
diff --git a/test/image/mocks/sankey_x_y_bottom_clipping.json b/test/image/mocks/sankey_x_y_bottom_clipping.json
new file mode 100644
index 00000000000..bbc2f58bd74
--- /dev/null
+++ b/test/image/mocks/sankey_x_y_bottom_clipping.json
@@ -0,0 +1,23 @@
+{
+  "data": [
+    {
+      "type": "sankey",
+      "arrangement": "snap",
+      "node": {
+        "label": ["A", "B", "C", "D"],
+        "x": [0.1, 0.1, 0.5, 0.9],
+        "y": [0.5, 0.95, 0.95, 0.95]
+      },
+      "link": {
+        "source": [0, 0, 1, 2],
+        "target": [1, 2, 3, 3],
+        "value": [5, 3, 5, 3]
+      }
+    }
+  ],
+  "layout": {
+    "title": { "text": "Sankey with bottom-edge nodes" },
+    "width": 600,
+    "height": 400
+  }
+}
diff --git a/test/jasmine/tests/sankey_test.js b/test/jasmine/tests/sankey_test.js
index 76fa0e9f27c..1dece998400 100644
--- a/test/jasmine/tests/sankey_test.js
+++ b/test/jasmine/tests/sankey_test.js
@@ -578,6 +578,33 @@ describe('sankey tests', function() {
             .then(done, done.fail);
         });
 
+        it('prevents nodes from being clipped at the bottom edge', function(done) {
+            var mockBottom = require('../../image/mocks/sankey_x_y_bottom_clipping.json');
+            var mockCopy = Lib.extendDeep({}, mockBottom);
+
+            Plotly.newPlot(gd, mockCopy)
+            .then(function() {
+                var nodeRects = document.querySelectorAll('.sankey-node .node-rect');
+                var sankeyLayer = document.querySelector('.sankey');
+                var sankeyRect = sankeyLayer.getBoundingClientRect();
+
+                for(var i = 0; i < nodeRects.length; i++) {
+                    var rect = nodeRects[i].getBoundingClientRect();
+                    // Every node's bottom edge must be within the sankey area
+                    expect(rect.bottom).not.toBeGreaterThan(
+                        sankeyRect.bottom + 1, // 1px tolerance
+                        'node ' + i + ' extends past the bottom edge'
+                    );
+                    // Every node's top edge must be within the sankey area
+                    expect(rect.top).not.toBeLessThan(
+                        sankeyRect.top - 1, // 1px tolerance
+                        'node ' + i + ' extends past the top edge'
+                    );
+                }
+            })
+            .then(done, done.fail);
+        });
+
         it('resets each subplot to its initial view (ie. x, y groups) via modebar button', function(done) {
             var mockCopy = Lib.extendDeep({}, require('../../image/mocks/sankey_subplots_circular'));