diff --git a/packages/controls/css/widgets-base.css b/packages/controls/css/widgets-base.css
index 6a16589ddc..52815a2fe8 100644
--- a/packages/controls/css/widgets-base.css
+++ b/packages/controls/css/widgets-base.css
@@ -125,6 +125,14 @@
   flex-direction: column;
 }
 
+.jupyter-widget-output {
+  box-sizing: border-box;
+  display: flex;
+  margin: 0;
+  overflow: auto;
+  flex-direction: column;
+}
+
 /* General Tags Styling */
 
 .jupyter-widget-tagsinput {
@@ -907,7 +915,7 @@
   flex: 1 1 var(--jp-widgets-inline-width-short);
   outline: none !important;
   overflow: auto;
-  height: inherit;
+  height: 100%;
 
   /* Because Firefox defines the baseline of a select as the bottom of the
     control, we align the entire control to the top and add padding to the
diff --git a/python/jupyterlab_widgets/src/output.ts b/python/jupyterlab_widgets/src/output.ts
index 37793bf193..424bcff279 100644
--- a/python/jupyterlab_widgets/src/output.ts
+++ b/python/jupyterlab_widgets/src/output.ts
@@ -3,13 +3,13 @@
 
 import * as outputBase from '@jupyter-widgets/output';
 
-import { JupyterLuminoPanelWidget } from '@jupyter-widgets/base';
-
-import { Panel } from '@lumino/widgets';
-
 import { LabWidgetManager, WidgetManager } from './manager';
 
-import { OutputAreaModel, OutputArea } from '@jupyterlab/outputarea';
+import {
+  OutputArea,
+  SimplifiedOutputArea,
+  OutputAreaModel,
+} from '@jupyterlab/outputarea';
 
 import * as nbformat from '@jupyterlab/nbformat';
 
@@ -17,6 +17,8 @@ import { KernelMessage, Session } from '@jupyterlab/services';
 
 import $ from 'jquery';
 
+import type { Message } from '@lumino/messaging';
+
 export const OUTPUT_WIDGET_VERSION = outputBase.OUTPUT_WIDGET_VERSION;
 
 export class OutputModel extends outputBase.OutputModel {
@@ -125,7 +127,15 @@ export class OutputModel extends outputBase.OutputModel {
 
 export class OutputView extends outputBase.OutputView {
   _createElement(tagName: string): HTMLElement {
-    this.luminoWidget = new JupyterLuminoPanelWidget({ view: this });
+    this.luminoWidget = new JupyterOutputArea({
+      view: this,
+      rendermime: this.model.widget_manager.rendermime,
+      contentFactory: OutputArea.defaultContentFactory,
+      model: this.model.outputs,
+      promptOverlay: false,
+    });
+    this.luminoWidget.addClass('jupyter-widgets');
+    this.luminoWidget.addClass('jupyter-widget-output');
     return this.luminoWidget.node;
   }
 
@@ -139,33 +149,41 @@ export class OutputView extends outputBase.OutputView {
     this.$el = $(this.luminoWidget.node);
   }
 
-  /**
-   * Called when view is rendered.
-   */
-  render(): void {
-    super.render();
-    this._outputView = new OutputArea({
-      rendermime: this.model.widget_manager.rendermime,
-      contentFactory: OutputArea.defaultContentFactory,
-      model: this.model.outputs,
-    });
-    // TODO: why is this a readonly property now?
-    // this._outputView.model = this.model.outputs;
-    // TODO: why is this on the model now?
-    // this._outputView.trusted = true;
-    this.luminoWidget.insertWidget(0, this._outputView);
+  model: OutputModel;
+  luminoWidget: JupyterOutputArea;
+}
 
-    this.luminoWidget.addClass('jupyter-widgets');
-    this.luminoWidget.addClass('widget-output');
-    this.update(); // Set defaults.
+class JupyterOutputArea extends SimplifiedOutputArea {
+  constructor(options: JupyterOutputArea.IOptions & OutputArea.IOptions) {
+    const view = options.view;
+    delete (options as any).view;
+    super(options);
+    this._view = view;
   }
 
-  remove(): any {
-    this._outputView.dispose();
-    return super.remove();
+  processMessage(msg: Message): void {
+    super.processMessage(msg);
+    this._view?.processLuminoMessage(msg);
+  }
+  /**
+   * Dispose the widget.
+   *
+   * This causes the view to be destroyed as well with 'remove'
+   */
+  dispose(): void {
+    if (this.isDisposed) {
+      return;
+    }
+    super.dispose();
+    this._view?.remove();
+    this._view = null!;
   }
 
-  model: OutputModel;
-  _outputView: OutputArea;
-  luminoWidget: Panel;
+  private _view: OutputView;
+}
+
+export namespace JupyterOutputArea {
+  export interface IOptions {
+    view: OutputView;
+  }
 }