diff --git a/components/layout_2020/flow/inline.rs b/components/layout_2020/flow/inline.rs
index f71187e1118..9f98174e2cd 100644
--- a/components/layout_2020/flow/inline.rs
+++ b/components/layout_2020/flow/inline.rs
@@ -12,7 +12,10 @@ use crate::fragments::{
     DebugId, Fragment, TextFragment,
 };
 use crate::geom::flow_relative::{Rect, Sides, Vec2};
-use crate::positioned::{relative_adjustement, AbsolutelyPositionedBox, PositioningContext};
+use crate::positioned::{
+    relative_adjustement, AbsolutelyPositionedBox, HoistedAbsolutelyPositionedBox,
+    PositioningContext,
+};
 use crate::sizing::ContentSizes;
 use crate::style_ext::{ComputedValuesExt, Display, DisplayGeneratingBox, DisplayOutside};
 use crate::ContainingBlock;
@@ -64,6 +67,7 @@ struct InlineNestingLevelState<'box_tree> {
     fragments_so_far: Vec<Fragment>,
     inline_start: Length,
     max_block_size_of_fragments_so_far: Length,
+    positioning_context: Option<PositioningContext>,
 }
 
 struct PartialInlineBoxFragment<'box_tree> {
@@ -86,6 +90,31 @@ struct InlineFormattingContextState<'box_tree, 'a, 'b> {
     current_nesting_level: InlineNestingLevelState<'box_tree>,
 }
 
+impl<'box_tree, 'a, 'b> InlineFormattingContextState<'box_tree, 'a, 'b> {
+    fn push_hoisted_box_to_positioning_context(
+        &mut self,
+        hoisted_box: HoistedAbsolutelyPositionedBox,
+    ) {
+        if let Some(context) = self.current_nesting_level.positioning_context.as_mut() {
+            context.push(hoisted_box);
+            return;
+        }
+
+        for nesting_level in self.partial_inline_boxes_stack.iter_mut().rev() {
+            if let Some(context) = nesting_level
+                .parent_nesting_level
+                .positioning_context
+                .as_mut()
+            {
+                context.push(hoisted_box);
+                return;
+            }
+        }
+
+        self.positioning_context.push(hoisted_box);
+    }
+}
+
 struct Lines {
     // One anonymous fragment per line
     fragments: Vec<Fragment>,
@@ -226,6 +255,7 @@ impl InlineFormattingContext {
                 fragments_so_far: Vec::with_capacity(self.inline_level_boxes.len()),
                 inline_start: Length::zero(),
                 max_block_size_of_fragments_so_far: Length::zero(),
+                positioning_context: None,
             },
         };
         loop {
@@ -257,15 +287,14 @@ impl InlineFormattingContext {
                                     panic!("display:none does not generate an abspos box")
                                 },
                             };
-                        let hoisted_fragment =
-                            box_.clone().to_hoisted(initial_start_corner, tree_rank);
-                        let hoisted_fragment_id = hoisted_fragment.fragment_id;
-                        ifc.positioning_context.push(hoisted_fragment);
-                        ifc.lines
-                            .fragments
-                            .push(Fragment::AbsoluteOrFixedPositioned(
-                                AbsoluteOrFixedPositionedFragment(hoisted_fragment_id),
-                            ));
+                        let hoisted_box = box_.clone().to_hoisted(initial_start_corner, tree_rank);
+                        let hoisted_fragment_id = hoisted_box.fragment_id;
+                        ifc.push_hoisted_box_to_positioning_context(hoisted_box);
+                        ifc.current_nesting_level.fragments_so_far.push(
+                            Fragment::AbsoluteOrFixedPositioned(AbsoluteOrFixedPositionedFragment(
+                                hoisted_fragment_id,
+                            )),
+                        );
                     },
                     InlineLevelBox::OutOfFlowFloatBox(_box_) => {
                         // TODO
@@ -275,6 +304,7 @@ impl InlineFormattingContext {
             // Reached the end of ifc.remaining_boxes
             if let Some(mut partial) = ifc.partial_inline_boxes_stack.pop() {
                 partial.finish_layout(
+                    layout_context,
                     &mut ifc.current_nesting_level,
                     &mut ifc.inline_position,
                     false,
@@ -392,6 +422,7 @@ impl InlineBox {
         if style.clone_position().is_relative() {
             start_corner += &relative_adjustement(&style, ifc.containing_block)
         }
+        let positioning_context = PositioningContext::new_for_style(&style);
         PartialInlineBoxFragment {
             tag: self.tag,
             style,
@@ -409,6 +440,7 @@ impl InlineBox {
                     fragments_so_far: Vec::with_capacity(self.children.len()),
                     inline_start: ifc.inline_position,
                     max_block_size_of_fragments_so_far: Length::zero(),
+                    positioning_context,
                 },
             ),
         }
@@ -418,6 +450,7 @@ impl InlineBox {
 impl<'box_tree> PartialInlineBoxFragment<'box_tree> {
     fn finish_layout(
         &mut self,
+        layout_context: &LayoutContext,
         nesting_level: &mut InlineNestingLevelState,
         inline_position: &mut Length,
         at_line_break: bool,
@@ -459,6 +492,11 @@ impl<'box_tree> PartialInlineBoxFragment<'box_tree> {
                     fragment.border.block_sum() +
                     fragment.margin.block_sum(),
             );
+
+        if let Some(context) = nesting_level.positioning_context.as_mut() {
+            context.layout_collected_children(layout_context, &mut fragment);
+        }
+
         self.parent_nesting_level
             .fragments_so_far
             .push(Fragment::Box(fragment));
@@ -748,7 +786,12 @@ impl TextRun {
                 ifc.current_nesting_level.inline_start = Length::zero();
                 let mut nesting_level = &mut ifc.current_nesting_level;
                 for partial in ifc.partial_inline_boxes_stack.iter_mut().rev() {
-                    partial.finish_layout(nesting_level, &mut ifc.inline_position, true);
+                    partial.finish_layout(
+                        layout_context,
+                        nesting_level,
+                        &mut ifc.inline_position,
+                        true,
+                    );
                     partial.start_corner.inline = Length::zero();
                     partial.padding.inline_start = Length::zero();
                     partial.border.inline_start = Length::zero();
diff --git a/components/layout_2020/positioned.rs b/components/layout_2020/positioned.rs
index b9dca32db12..a0216ec296c 100644
--- a/components/layout_2020/positioned.rs
+++ b/components/layout_2020/positioned.rs
@@ -172,7 +172,7 @@ impl PositioningContext {
         self.for_nearest_positioned_ancestor.is_some()
     }
 
-    fn new_for_style(style: &ComputedValues) -> Option<Self> {
+    pub(crate) fn new_for_style(style: &ComputedValues) -> Option<Self> {
         if style.establishes_containing_block_for_all_descendants() {
             Some(Self::new_for_containing_block_for_all_descendants())
         } else if style.establishes_containing_block() {
@@ -243,7 +243,7 @@ impl PositioningContext {
 
     // Lay out the hoisted boxes collected into this `PositioningContext` and add them
     // to the given `BoxFragment`.
-    fn layout_collected_children(
+    pub fn layout_collected_children(
         &mut self,
         layout_context: &LayoutContext,
         new_fragment: &mut BoxFragment,
diff --git a/components/layout_2020/style_ext.rs b/components/layout_2020/style_ext.rs
index 7ed41d1cd91..cdde69a7866 100644
--- a/components/layout_2020/style_ext.rs
+++ b/components/layout_2020/style_ext.rs
@@ -245,7 +245,9 @@ impl ComputedValuesExt for ComputedValues {
     /// Returns true if this style establishes a containing block for all descendants
     /// including fixed and absolutely positioned ones.
     fn establishes_containing_block_for_all_descendants(&self) -> bool {
-        if self.has_transform_or_perspective() {
+        if self.get_box().display.outside() != stylo::DisplayOutside::Inline &&
+            self.has_transform_or_perspective()
+        {
             return true;
         }
 
diff --git a/tests/wpt/metadata-layout-2020/css/CSS2/positioning/abspos-inline-008.xht.ini b/tests/wpt/metadata-layout-2020/css/CSS2/positioning/abspos-inline-008.xht.ini
deleted file mode 100644
index f77c2c83d5d..00000000000
--- a/tests/wpt/metadata-layout-2020/css/CSS2/positioning/abspos-inline-008.xht.ini
+++ /dev/null
@@ -1,2 +0,0 @@
-[abspos-inline-008.xht]
-  expected: FAIL
diff --git a/tests/wpt/metadata-layout-2020/css/CSS2/positioning/toogle-abspos-on-relpos-inline-child.html.ini b/tests/wpt/metadata-layout-2020/css/CSS2/positioning/toogle-abspos-on-relpos-inline-child.html.ini
deleted file mode 100644
index 928300474c1..00000000000
--- a/tests/wpt/metadata-layout-2020/css/CSS2/positioning/toogle-abspos-on-relpos-inline-child.html.ini
+++ /dev/null
@@ -1,2 +0,0 @@
-[toogle-abspos-on-relpos-inline-child.html]
-  expected: FAIL
diff --git a/tests/wpt/metadata-layout-2020/css/css-transforms/preserve3d-button.html.ini b/tests/wpt/metadata-layout-2020/css/css-transforms/preserve3d-button.html.ini
deleted file mode 100644
index 0c6784a80ed..00000000000
--- a/tests/wpt/metadata-layout-2020/css/css-transforms/preserve3d-button.html.ini
+++ /dev/null
@@ -1,2 +0,0 @@
-[preserve3d-button.html]
-  expected: FAIL
diff --git a/tests/wpt/metadata-layout-2020/css/filter-effects/filtered-inline-is-container.html.ini b/tests/wpt/metadata-layout-2020/css/filter-effects/filtered-inline-is-container.html.ini
deleted file mode 100644
index b41a8df9ac0..00000000000
--- a/tests/wpt/metadata-layout-2020/css/filter-effects/filtered-inline-is-container.html.ini
+++ /dev/null
@@ -1,2 +0,0 @@
-[filtered-inline-is-container.html]
-  expected: FAIL
diff --git a/tests/wpt/mozilla/meta-layout-2020/css/absolute_inline_containing_block_a.html.ini b/tests/wpt/mozilla/meta-layout-2020/css/absolute_inline_containing_block_a.html.ini
deleted file mode 100644
index eb5471a558b..00000000000
--- a/tests/wpt/mozilla/meta-layout-2020/css/absolute_inline_containing_block_a.html.ini
+++ /dev/null
@@ -1,2 +0,0 @@
-[absolute_inline_containing_block_a.html]
-  expected: FAIL