diff --git a/third_party/blink/renderer/core/layout/layout_replaced.cc b/third_party/blink/renderer/core/layout/layout_replaced.cc
index b94e2aec3eecb..c6624dbf7ea33 100644
--- a/third_party/blink/renderer/core/layout/layout_replaced.cc
+++ b/third_party/blink/renderer/core/layout/layout_replaced.cc
@@ -172,7 +172,8 @@ bool LayoutReplaced::NodeAtPoint(HitTestResult& result,
     return true;
   }

-  if (StyleRef().HasBorderRadius() &&
+  if (!result.GetHitTestRequest().IsHitTestVisualOverflow() &&
+      StyleRef().HasBorderRadius() &&
       HitTestClippedOutByBorder(hit_test_location, accumulated_offset)) {
     return false;
   }
diff --git a/third_party/blink/renderer/core/paint/box_fragment_painter.cc b/third_party/blink/renderer/core/paint/box_fragment_painter.cc
index fb374f6b8c869..e013281d41faa 100644
--- a/third_party/blink/renderer/core/paint/box_fragment_painter.cc
+++ b/third_party/blink/renderer/core/paint/box_fragment_painter.cc
@@ -2353,17 +2353,23 @@ bool BoxFragmentPainter::NodeAtPoint(const HitTestContext& hit_test,
     }
   }

-  // Check border-shape and border-radius clipping.
-  if (style.HasBorderShape()) {
-    PhysicalRect rect(physical_offset, size);
-    const Path outer_path = ComputeBorderShapeOuterPath(
-        style, rect, box_fragment_.GetLayoutObject());
-    if (!hit_test.location.Intersects(outer_path)) {
+  // Check border-shape and border-radius clipping. Skip this when hit-testing
+  // visual overflow (IntersectionObserver V2 occlusion), because the rounded
+  // border-box does not include painted ink overflow such as box-shadow; the
+  // InkOverflowIncludingFilters() check below handles that case.
+  if (!hit_test.result->GetHitTestRequest().IsHitTestVisualOverflow())
+      [[likely]] {
+    if (style.HasBorderShape()) {
+      PhysicalRect rect(physical_offset, size);
+      const Path outer_path = ComputeBorderShapeOuterPath(
+          style, rect, box_fragment_.GetLayoutObject());
+      if (!hit_test.location.Intersects(outer_path)) {
+        return false;
+      }
+    } else if (style.HasBorderRadius() &&
+               HitTestClippedOutByBorder(hit_test.location, physical_offset)) {
       return false;
     }
-  } else if (style.HasBorderRadius() &&
-             HitTestClippedOutByBorder(hit_test.location, physical_offset)) {
-    return false;
   }

   bool pointer_events_bounding_box = false;