diff --git a/sqlglot/parser.py b/sqlglot/parser.py
index c2a8eafb52..26d26fcdb6 100644
--- a/sqlglot/parser.py
+++ b/sqlglot/parser.py
@@ -8749,12 +8749,17 @@ def _parse_revoke(self) -> exp.Revoke | exp.Command:
         )
 
     def _parse_overlay(self) -> exp.Overlay:
+        def _parse_overlay_arg(text: str) -> t.Optional[exp.Expression]:
+            return (
+                self._match(TokenType.COMMA) or self._match_text_seq(text)
+            ) and self._parse_bitwise()
+
         return self.expression(
             exp.Overlay,
             this=self._parse_bitwise(),
-            expression=self._match_text_seq("PLACING") and self._parse_bitwise(),
-            from_=self._match_text_seq("FROM") and self._parse_bitwise(),
-            for_=self._match_text_seq("FOR") and self._parse_bitwise(),
+            expression=_parse_overlay_arg("PLACING"),
+            from_=_parse_overlay_arg("FROM"),
+            for_=_parse_overlay_arg("FOR"),
         )
 
     def _parse_format_name(self) -> exp.Property:
diff --git a/tests/dialects/test_databricks.py b/tests/dialects/test_databricks.py
index 68cbf34d0c..eb54917f69 100644
--- a/tests/dialects/test_databricks.py
+++ b/tests/dialects/test_databricks.py
@@ -425,3 +425,18 @@ def test_to_char_is_numeric_transpile_to_cast(self):
 
     def test_qdcolon(self):
         self.validate_identity("SELECT '20'?::INTEGER", "SELECT TRY_CAST('20' AS INTEGER)")
+
+    def test_overlay(self):
+        self.validate_identity(
+            "SELECT OVERLAY('Spark SQL', 'ANSI ', 7, 0)",
+            "SELECT OVERLAY('Spark SQL' PLACING 'ANSI ' FROM 7 FOR 0)",
+        )
+        self.validate_identity(
+            "SELECT OVERLAY('Spark SQL' PLACING 'CORE' FROM 7)",
+        )
+        self.validate_identity(
+            "SELECT OVERLAY(ENCODE('Spark SQL', 'utf-8') PLACING ENCODE('_', 'utf-8') FROM 6)",
+        )
+        self.validate_identity(
+            "SELECT OVERLAY('Spark SQL' PLACING 'ANSI ' FROM 7 FOR 0)",
+        )