diff --git a/src/sidebar/components/MarkdownEditor.tsx b/src/sidebar/components/MarkdownEditor.tsx
index 9938b9bb1de..d6eabe03643 100644
--- a/src/sidebar/components/MarkdownEditor.tsx
+++ b/src/sidebar/components/MarkdownEditor.tsx
@@ -1,4 +1,10 @@
-import { Button, IconButton, Link } from '@hypothesis/frontend-shared';
+import {
+  Button,
+  IconButton,
+  Link,
+  Popover,
+  useSyncedRef,
+} from '@hypothesis/frontend-shared';
 import {
   EditorLatexIcon,
   EditorQuoteIcon,
@@ -16,6 +22,7 @@ import classnames from 'classnames';
 import type { Ref, JSX } from 'preact';
 import { useEffect, useMemo, useRef, useState } from 'preact/hooks';
 
+import { ListenerCollection } from '../../shared/listener-collection';
 import { isMacOS } from '../../shared/user-agent';
 import {
   LinkType,
@@ -24,6 +31,7 @@ import {
   toggleSpanStyle,
 } from '../markdown-commands';
 import type { EditorState } from '../markdown-commands';
+import { useSidebarStore } from '../store';
 import MarkdownView from './MarkdownView';
 
 /**
@@ -173,6 +181,20 @@ function ToolbarButton({
   );
 }
 
+/**
+ * Get the word right before the caret in a textarea.
+ * A word is anything delimited by spaces or newlines.
+ */
+function getTermBeforeCaret(textarea: HTMLTextAreaElement): string {
+  const caretPosition = textarea.selectionStart;
+  const textBeforeCaret = textarea.value
+    .slice(0, caretPosition)
+    .replace(/\n/g, ' ');
+  const lastSpaceIndex = textBeforeCaret.lastIndexOf(' ');
+
+  return textBeforeCaret.slice(lastSpaceIndex + 1);
+}
+
 type TextAreaProps = {
   classes?: string;
   containerRef?: Ref<HTMLTextAreaElement>;
@@ -183,17 +205,58 @@ function TextArea({
   containerRef,
   ...restProps
 }: TextAreaProps & JSX.TextareaHTMLAttributes<HTMLTextAreaElement>) {
+  const [popoverOpen, setPopoverOpen] = useState(false);
+  const textareaRef = useSyncedRef(containerRef);
+  const store = useSidebarStore();
+  const areMentionsEnabled = store.isFeatureEnabled('at_mentions');
+
+  useEffect(() => {
+    if (!areMentionsEnabled) {
+      return () => {};
+    }
+
+    const textarea = textareaRef.current!;
+    const listenerCollection = new ListenerCollection();
+
+    // We listen for `keyup` to make sure the text in the textarea reflects the
+    // just-pressed key when we evaluate it
+    listenerCollection.add(textarea, 'keyup', e => {
+      // `Esc` key is used to close the popover. Do nothing and let users close
+      // it that way, even if the caret is in a mention
+      if (e.key === 'Escape') {
+        return;
+      }
+      setPopoverOpen(getTermBeforeCaret(textarea).startsWith('@'));
+    });
+
+    return () => {
+      listenerCollection.removeAll();
+    };
+  }, [areMentionsEnabled, popoverOpen, textareaRef]);
+
   return (
-    <textarea
-      className={classnames(
-        'border rounded p-2',
-        'text-color-text-light bg-grey-0',
-        'focus:bg-white focus:outline-none focus:shadow-focus-inner',
-        classes,
+    <div className="relative">
+      <textarea
+        className={classnames(
+          'border rounded p-2',
+          'text-color-text-light bg-grey-0',
+          'focus:bg-white focus:outline-none focus:shadow-focus-inner',
+          classes,
+        )}
+        {...restProps}
+        ref={textareaRef}
+      />
+      {areMentionsEnabled && (
+        <Popover
+          open={popoverOpen}
+          onClose={() => setPopoverOpen(false)}
+          anchorElementRef={textareaRef}
+          classes="p-2"
+        >
+          Suggestions
+        </Popover>
       )}
-      {...restProps}
-      ref={containerRef}
-    />
+    </div>
   );
 }