diff --git a/lua/nui/menu/init.lua b/lua/nui/menu/init.lua
index dff06a75..28554bb8 100644
--- a/lua/nui/menu/init.lua
+++ b/lua/nui/menu/init.lua
@@ -283,7 +283,7 @@ function Menu:init(popup_options, options)
   self._.sep = options.separator
 
   self._.should_skip_item = defaults(options.should_skip_item, default_should_skip_item)
-  self._.prepare_item = defaults(options.prepare_item, make_default_prepare_node(self))
+  self._.prepare_item = defaults(options.prepare_item, self._.prepare_item)
 
   self.menu_props = {}
 
@@ -316,6 +316,13 @@ function Menu:init(popup_options, options)
   end
 end
 
+---@param config? nui_layout_options
+function Menu:update_layout(config)
+  Menu.super.update_layout(self, config)
+
+  self._.prepare_item = defaults(self._.prepare_item, make_default_prepare_node(self))
+end
+
 function Menu:mount()
   Menu.super.mount(self)
 
diff --git a/tests/nui/menu/init_spec.lua b/tests/nui/menu/init_spec.lua
index ad42db0d..b90f5d06 100644
--- a/tests/nui/menu/init_spec.lua
+++ b/tests/nui/menu/init_spec.lua
@@ -1,6 +1,7 @@
 pcall(require, "luacov")
 
 local Menu = require("nui.menu")
+local Layout = require("nui.layout")
 local Line = require("nui.line")
 local Text = require("nui.text")
 local h = require("tests.helpers")
@@ -571,4 +572,30 @@ describe("nui.menu", function()
       h.assert_extmark(extmarks[4], linenr, "*", hl_group)
     end)
   end)
+
+  describe("w/ Layout", function()
+    it("can be used", function()
+      menu = Menu({}, {
+        lines = {
+          Menu.item("A"),
+        },
+      })
+
+      local layout = Layout(
+        {
+          position = "50%",
+          size = "100%",
+        },
+        Layout.Box({
+          Layout.Box(menu, { size = "100%" }),
+        })
+      )
+
+      layout:mount()
+
+      h.assert_buf_lines(menu.bufnr, {
+        "A",
+      })
+    end)
+  end)
 end)