diff --git a/packages/big-design-theme/src/system/z-index.ts b/packages/big-design-theme/src/system/z-index.ts
index 4f5765f42..38f17054d 100644
--- a/packages/big-design-theme/src/system/z-index.ts
+++ b/packages/big-design-theme/src/system/z-index.ts
@@ -12,6 +12,6 @@ export const zIndex: ZIndex = {
   fixed: 1030,
   modalBackdrop: 1040,
   modal: 1050,
-  tooltip: 1060,
-  popover: 1070,
+  popover: 1060,
+  tooltip: 1070,
 };
diff --git a/packages/big-design/src/components/Dropdown/Dropdown.tsx b/packages/big-design/src/components/Dropdown/Dropdown.tsx
index 2bc6c4d7d..96365706d 100644
--- a/packages/big-design/src/components/Dropdown/Dropdown.tsx
+++ b/packages/big-design/src/components/Dropdown/Dropdown.tsx
@@ -8,8 +8,9 @@ import { FlexItem } from '../Flex/Item';
 import { Link } from '../Link';
 import { List } from '../List';
 import { ListItem } from '../List/Item';
+import { Tooltip, TooltipProps } from '../Tooltip';
 
-import { DropdownItem, DropdownLinkItem, DropdownProps } from './types';
+import { DropdownLinkItem, DropdownOption, DropdownProps } from './types';
 
 interface DropdownState {
   highlightedItem: HTMLLIElement | null;
@@ -25,6 +26,10 @@ export class Dropdown<T extends any> extends React.PureComponent<DropdownProps<T
   private listRef: HTMLUListElement | null = null;
   private triggerRef: HTMLElement | null = null;
 
+  private readonly tooltipModifiers: TooltipProps['modifiers'] = {
+    preventOverflow: { enabled: true, escapeWithReference: true },
+    offset: { offset: '0, 20' },
+  };
   private readonly uniqueDropdownId = uniqueId('dropdown_');
   private readonly uniqueTriggerId = uniqueId('trigger_');
 
@@ -92,25 +97,44 @@ export class Dropdown<T extends any> extends React.PureComponent<DropdownProps<T
             ref={ref}
             role="option"
           >
-            {option.type === 'link' && !option.disabled ? (
-              <Link href={option.url} target={option.target}>
-                <Flex alignItems="center" flexDirection="row">
-                  {icon && <FlexItem paddingRight="xSmall">{this.renderIcon(option, isHighlighted)}</FlexItem>}
-                  {content}
-                </Flex>
-              </Link>
-            ) : (
-              <Flex alignItems="center" flexDirection="row">
-                {icon && <FlexItem paddingRight="xSmall">{this.renderIcon(option, isHighlighted)}</FlexItem>}
-                {content}
-              </Flex>
-            )}
+            {this.getContent(option, isHighlighted)}
           </ListItem>
         );
       })
     );
   }
 
+  private wrapInLink(option: DropdownLinkItem<T>, content: React.ReactChild) {
+    return (
+      <Link href={option.url} target={option.target}>
+        {content}
+      </Link>
+    );
+  }
+
+  private getContent(option: DropdownOption<T>, isHighlighted: boolean) {
+    const { disabled, icon, tooltip } = option;
+
+    const baseContent = (
+      <Flex alignItems="center" flexDirection="row">
+        {icon && <FlexItem paddingRight="xSmall">{this.renderIcon(option, isHighlighted)}</FlexItem>}
+        {option.content}
+      </Flex>
+    );
+
+    const content = option.type === 'link' && !disabled ? this.wrapInLink(option, baseContent) : baseContent;
+
+    return disabled && tooltip ? this.wrapInTooltip(tooltip, content) : content;
+  }
+
+  private wrapInTooltip(tooltip: DropdownOption<T>['tooltip'], trigger: React.ReactChild) {
+    return (
+      <Tooltip placement="left" trigger={trigger} modifiers={this.tooltipModifiers} inline={false}>
+        {tooltip}
+      </Tooltip>
+    );
+  }
+
   private renderTrigger(ref: RefHandler) {
     const { trigger } = this.props;
 
@@ -129,7 +153,7 @@ export class Dropdown<T extends any> extends React.PureComponent<DropdownProps<T
     );
   }
 
-  private renderIcon(item: DropdownItem<T> | DropdownLinkItem<T>, isHighlighted: boolean) {
+  private renderIcon(item: DropdownOption<T>, isHighlighted: boolean) {
     return (
       React.isValidElement(item.icon) &&
       React.cloneElement(item.icon, {
@@ -139,7 +163,7 @@ export class Dropdown<T extends any> extends React.PureComponent<DropdownProps<T
     );
   }
 
-  private iconColor(item: DropdownItem<T> | DropdownLinkItem<T>, isHighlighted: boolean) {
+  private iconColor(item: DropdownOption<T>, isHighlighted: boolean) {
     if (item.disabled) {
       return 'secondary40';
     }
@@ -179,7 +203,7 @@ export class Dropdown<T extends any> extends React.PureComponent<DropdownProps<T
     return id || this.uniqueDropdownId;
   }
 
-  private getItemId(item: DropdownItem<T> | DropdownLinkItem<T>, index: number) {
+  private getItemId(item: DropdownOption<T>, index: number) {
     const { id } = item;
 
     return id || `${this.getDropdownId()}-item-${index}`;
@@ -220,7 +244,7 @@ export class Dropdown<T extends any> extends React.PureComponent<DropdownProps<T
     this.toggleList();
   };
 
-  private handleOnItemClick = (item: DropdownItem<T> | DropdownLinkItem<T>) => {
+  private handleOnItemClick = (item: DropdownOption<T>) => {
     if (item.disabled) {
       return;
     }
diff --git a/packages/big-design/src/components/Dropdown/spec.tsx b/packages/big-design/src/components/Dropdown/spec.tsx
index fb4f3b7ea..59b2f5e0c 100644
--- a/packages/big-design/src/components/Dropdown/spec.tsx
+++ b/packages/big-design/src/components/Dropdown/spec.tsx
@@ -276,3 +276,56 @@ test('does not forward styles', () => {
   expect(container.getElementsByClassName('test').length).toBe(0);
   expect(getByRole('listbox')).not.toHaveStyle('background: red');
 });
+
+test('renders tooltip with disabled item', () => {
+  const tooltipContent = 'Option with tooltip';
+  const tooltipText = 'This is tooltip message';
+  const { getByRole, getByText } = render(
+    <Dropdown
+      onClick={onClick}
+      options={[
+        { content: 'Option 1', type: 'string', value: '0' },
+        {
+          content: tooltipContent,
+          tooltip: tooltipText,
+          disabled: true,
+          type: 'string',
+        },
+        { content: 'Option 3', type: 'string', value: '2', actionType: 'destructive' },
+      ]}
+      trigger={<Button>Button</Button>}
+    />,
+  );
+  const trigger = getByRole('button');
+
+  fireEvent.click(trigger);
+  fireEvent.mouseEnter(getByText(tooltipContent));
+
+  expect(getByText(tooltipText)).toBeInTheDocument();
+});
+
+test("doesn't render tooltip on enabled item", () => {
+  const tooltipContent = 'Option with tooltip';
+  const tooltipText = 'This is tooltip message';
+  const { getByRole, getByText, queryByText } = render(
+    <Dropdown
+      onClick={onClick}
+      options={[
+        { content: 'Option 1', type: 'string', value: '0' },
+        {
+          content: tooltipContent,
+          tooltip: tooltipText,
+          type: 'string',
+        },
+        { content: 'Option 3', type: 'string', value: '2', actionType: 'destructive' },
+      ]}
+      trigger={<Button>Button</Button>}
+    />,
+  );
+  const trigger = getByRole('button');
+
+  fireEvent.click(trigger);
+  fireEvent.mouseEnter(getByText(tooltipContent));
+
+  expect(queryByText(tooltipText)).not.toBeInTheDocument();
+});
diff --git a/packages/big-design/src/components/Dropdown/types.ts b/packages/big-design/src/components/Dropdown/types.ts
index f7d86269a..5ad287546 100644
--- a/packages/big-design/src/components/Dropdown/types.ts
+++ b/packages/big-design/src/components/Dropdown/types.ts
@@ -2,9 +2,11 @@ import { Placement } from 'popper.js';
 
 import { ListItemProps } from '../List/Item';
 
+export type DropdownOption<T> = DropdownItem<T> | DropdownLinkItem<T>;
+
 export interface DropdownProps<T> extends Omit<React.HTMLAttributes<HTMLUListElement>, 'children'> {
   maxHeight?: number;
-  options: Array<DropdownItem<T> | DropdownLinkItem<T>>;
+  options: Array<DropdownOption<T>>;
   placement?: Placement;
   trigger: React.ReactElement;
 }
@@ -12,8 +14,9 @@ export interface DropdownProps<T> extends Omit<React.HTMLAttributes<HTMLUListEle
 interface BaseItem<T> extends Omit<ListItemProps, 'children' | 'content' | 'onClick' | 'value'> {
   content: string;
   icon?: React.ReactElement;
+  tooltip?: string;
   value?: T;
-  onClick?(item: DropdownItem<T> | DropdownLinkItem<T>): void;
+  onClick?(item: DropdownOption<T>): void;
 }
 
 export interface DropdownItem<T> extends BaseItem<T> {
diff --git a/packages/big-design/src/components/Pagination/__snapshots__/spec.tsx.snap b/packages/big-design/src/components/Pagination/__snapshots__/spec.tsx.snap
index fdeb1eaed..9cacb804c 100644
--- a/packages/big-design/src/components/Pagination/__snapshots__/spec.tsx.snap
+++ b/packages/big-design/src/components/Pagination/__snapshots__/spec.tsx.snap
@@ -100,7 +100,7 @@ exports[`render pagination component 1`] = `
   outline: none;
   overflow-y: scroll;
   padding: 0.5rem 0;
-  z-index: 1070;
+  z-index: 1060;
 }
 
 .c8 {
@@ -596,7 +596,7 @@ exports[`render pagination component with invalid page info 1`] = `
   outline: none;
   overflow-y: scroll;
   padding: 0.5rem 0;
-  z-index: 1070;
+  z-index: 1060;
 }
 
 .c8 {
@@ -1092,7 +1092,7 @@ exports[`render pagination component with invalid range info 1`] = `
   outline: none;
   overflow-y: scroll;
   padding: 0.5rem 0;
-  z-index: 1070;
+  z-index: 1060;
 }
 
 .c8 {
@@ -1589,7 +1589,7 @@ exports[`render pagination component with no items 1`] = `
   outline: none;
   overflow-y: scroll;
   padding: 0.5rem 0;
-  z-index: 1070;
+  z-index: 1060;
 }
 
 .c8 {
diff --git a/packages/big-design/src/components/Table/__snapshots__/spec.tsx.snap b/packages/big-design/src/components/Table/__snapshots__/spec.tsx.snap
index e0915daff..0abf05b96 100644
--- a/packages/big-design/src/components/Table/__snapshots__/spec.tsx.snap
+++ b/packages/big-design/src/components/Table/__snapshots__/spec.tsx.snap
@@ -129,7 +129,7 @@ exports[`renders a pagination component 1`] = `
   outline: none;
   overflow-y: scroll;
   padding: 0.5rem 0;
-  z-index: 1070;
+  z-index: 1060;
 }
 
 .c11 {
diff --git a/packages/big-design/src/components/Tooltip/Tooltip.tsx b/packages/big-design/src/components/Tooltip/Tooltip.tsx
index de8ceb5f8..51e76ba5c 100644
--- a/packages/big-design/src/components/Tooltip/Tooltip.tsx
+++ b/packages/big-design/src/components/Tooltip/Tooltip.tsx
@@ -6,9 +6,11 @@ import { Small } from '../Typography';
 
 import { StyledTooltip, StyledTooltipTrigger } from './styled';
 
-export interface TooltipProps {
+export interface TooltipProps extends React.HTMLAttributes<HTMLDivElement> {
   placement: PopperProps['placement'];
   trigger: React.ReactChild;
+  modifiers?: PopperProps['modifiers'];
+  inline?: boolean;
 }
 
 interface State {
@@ -18,6 +20,7 @@ interface State {
 export class Tooltip extends React.PureComponent<TooltipProps, State> {
   static defaultProps: Partial<TooltipProps> = {
     placement: 'top',
+    inline: true,
   };
 
   state = {
@@ -38,13 +41,14 @@ export class Tooltip extends React.PureComponent<TooltipProps, State> {
   }
 
   render() {
-    const { children, trigger } = this.props;
+    const { children, trigger, inline } = this.props;
 
     return (
       <Manager>
         <Reference>
           {({ ref }) => (
             <StyledTooltipTrigger
+              inline={inline}
               onBlur={this.hideTooltip}
               onFocus={this.showTooltip}
               onKeyDown={this.onKeyDown}
@@ -58,7 +62,10 @@ export class Tooltip extends React.PureComponent<TooltipProps, State> {
         </Reference>
         {this.tooltipContainer
           ? createPortal(
-              <Popper placement={this.props.placement} modifiers={{ offset: { offset: '0, 8' } }}>
+              <Popper
+                placement={this.props.placement}
+                modifiers={{ offset: { offset: '0, 8' }, ...this.props.modifiers }}
+              >
                 {({ placement, ref, style }) =>
                   this.state.visible && (
                     <StyledTooltip ref={ref} style={style} data-placement={placement}>
diff --git a/packages/big-design/src/components/Tooltip/styled.tsx b/packages/big-design/src/components/Tooltip/styled.tsx
index b26defbfd..6b18c9eb5 100644
--- a/packages/big-design/src/components/Tooltip/styled.tsx
+++ b/packages/big-design/src/components/Tooltip/styled.tsx
@@ -1,8 +1,15 @@
 import { theme as defaultTheme } from '@bigcommerce/big-design-theme';
-import styled from 'styled-components';
+import styled, { css } from 'styled-components';
 
-export const StyledTooltipTrigger = styled.div`
+export const StyledTooltipTrigger = styled.div<{ inline?: boolean }>`
   display: inline-block;
+
+  ${({ inline }) =>
+    !inline &&
+    css`
+      display: block;
+      flex-grow: 1;
+    `}
 `;
 
 export const StyledTooltip = styled.div`
diff --git a/packages/docs/PropTables/DropdownPropTable.tsx b/packages/docs/PropTables/DropdownPropTable.tsx
index 539e643b1..6b883de69 100644
--- a/packages/docs/PropTables/DropdownPropTable.tsx
+++ b/packages/docs/PropTables/DropdownPropTable.tsx
@@ -88,6 +88,15 @@ const dropdownItemProps: Prop[] = [
     types: '(item: DropdownItem): void',
     description: 'Returns the item object.',
   },
+  {
+    name: 'tooltip',
+    types: 'string',
+    description: (
+      <>
+        Adds tooltip for disabled item. Default placement is set to <Code highlight={false}>right</Code>.
+      </>
+    ),
+  },
   {
     name: 'type',
     types: "'string'",
@@ -136,6 +145,11 @@ const dropdownLinkProps: Prop[] = [
       </>
     ),
   },
+  {
+    name: 'tooltip',
+    types: "{ message: string, placement?: 'left' | 'right' }",
+    description: "Adds tooltip for disabled item. Placement is optional, if not passed - 'left' is set.",
+  },
   {
     name: 'type',
     types: "'link'",
diff --git a/packages/docs/pages/Dropdown/DropdownPage.tsx b/packages/docs/pages/Dropdown/DropdownPage.tsx
index 25d2d68c7..aaa71e504 100644
--- a/packages/docs/pages/Dropdown/DropdownPage.tsx
+++ b/packages/docs/pages/Dropdown/DropdownPage.tsx
@@ -35,6 +35,7 @@ export default () => (
             value: 'copy',
             icon: <AssignmentIcon />,
             disabled: true,
+            tooltip: 'You cannot copy this item...',
           },
           {
             content: 'Delete',
@@ -43,7 +44,12 @@ export default () => (
             icon: <DeleteIcon />,
             actionType: 'destructive',
           },
-          { content: 'Link', icon: <OpenInNewIcon />, type: 'link', url: '#' },
+          {
+            content: 'Link',
+            icon: <OpenInNewIcon />,
+            type: 'link',
+            url: '#',
+          },
         ]}
         placement="bottom-start"
         trigger={<Button>Open Menu</Button>}