diff --git a/api/config.lua b/api/config.lua
index b12f2d93..0c3a4eb5 100644
--- a/api/config.lua
+++ b/api/config.lua
@@ -165,6 +165,7 @@ function pfUI:LoadConfig()
   pfUI:UpdateConfig("appearance", "bags",        "borderlimit",      "1")
   pfUI:UpdateConfig("appearance", "bags",        "borderonlygear",   "0")
   pfUI:UpdateConfig("appearance", "bags",        "movable",          "0")
+  pfUI:UpdateConfig("appearance", "bags",        "abovechat",        "0")
   pfUI:UpdateConfig("appearance", "bags",        "hidechat",         "0")
   pfUI:UpdateConfig("appearance", "bags",        "icon_size",        "-1")
   pfUI:UpdateConfig("appearance", "bags",        "bagrowlength",     "10")
diff --git a/modules/bags.lua b/modules/bags.lua
index bbe516de..efd19cd4 100644
--- a/modules/bags.lua
+++ b/modules/bags.lua
@@ -208,7 +208,7 @@ pfUI:RegisterModule("bags", "vanilla:tbc", function ()
 
     if object == "bank" then
       if not pfUI.bag.left then pfUI.bag.left = CreateFrame("Frame", "pfBank", UIParent) end
-      anchor = { "BOTTOMLEFT", (pfUI.chat and pfUI.chat.left or nil), "BOTTOMRIGHT" }
+      anchor = { "BOTTOMLEFT", (pfUI.chat and pfUI.chat.left or nil), "BOTTOMRIGHT", "TOPLEFT", "TOPRIGHT" }
       rowlength = tonumber(C.appearance.bags.bankrowlength)
       cwidth = C.chat.left.width
       iterate = pfUI.BANK
@@ -216,7 +216,7 @@ pfUI:RegisterModule("bags", "vanilla:tbc", function ()
     else
       if not pfUI.bag.right then pfUI.bag.right = CreateFrame("Frame", "pfBag", UIParent) end
       rowlength = tonumber(C.appearance.bags.bagrowlength)
-      anchor = { "BOTTOMRIGHT", (pfUI.chat and pfUI.chat.right or nil), "BOTTOMLEFT" }
+      anchor = { "BOTTOMRIGHT", (pfUI.chat and pfUI.chat.right or nil), "BOTTOMLEFT", "TOPRIGHT", "TOPLEFT" }
       cwidth = C.chat.right.width
       iterate = pfUI.BACKPACK
       frame = pfUI.bag.right
@@ -246,8 +246,13 @@ pfUI:RegisterModule("bags", "vanilla:tbc", function ()
       frame:SetPoint(anchor[1], anchor[2], anchor[1], 0, 0)
     elseif pfUI.chat then
       -- use chat frame as anchor if existing
-      frame:SetPoint(anchor[1], anchor[2], anchor[1], 0, 0)
-      frame:SetPoint(anchor[3], anchor[2], anchor[3], 0, 0)
+      if C.appearance.bags.abovechat == "0" then
+        frame:SetPoint(anchor[1], anchor[2], anchor[1], 0, 0)
+        frame:SetPoint(anchor[3], anchor[2], anchor[3], 0, 0)
+      else
+        frame:SetPoint(anchor[3], anchor[2], anchor[5], 0, 3*default_border)
+        frame:SetPoint(anchor[1], anchor[2], anchor[4], 0, 3*default_border)
+      end
     else
       -- align frame to UIParent if no anchor is available
       frame:SetPoint(anchor[1], UIParent, anchor[1], 5, 5)
diff --git a/modules/gui.lua b/modules/gui.lua
index c5c4a82c..367f9fc1 100644
--- a/modules/gui.lua
+++ b/modules/gui.lua
@@ -1825,6 +1825,7 @@ pfUI:RegisterModule("gui", "vanilla:tbc", function ()
       CreateConfig(nil, T["Highlight Unusable Items"], C.appearance.bags, "unusable", "checkbox")
       CreateConfig(nil, T["Unusable Item Color"], C.appearance.bags, "unusable_color", "color")
       CreateConfig(nil, T["Enable Movable Bags"], C.appearance.bags, "movable", "checkbox")
+      CreateConfig(nil, T["Anchor Bags Above Chat"], C.appearance.bags, "abovechat", "checkbox")
       CreateConfig(nil, T["Hide Chat When Bags Are Opened"], C.appearance.bags, "hidechat", "checkbox")
       CreateConfig(nil, T["Bagslots Per Row"], C.appearance.bags, "bagrowlength")
       CreateConfig(nil, T["Bankslots Per Row"], C.appearance.bags, "bankrowlength")