I have created Form and Grid Panel in Extjs now i want to display a form over a grid when i click on a “Add Record” button
example

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What you’re looking for is a modal Window. A la..
You can put the standard form panel inside of the items in the Window itself (thus the ‘yourFormPanel’ variable), along with any other configuration options. Once you have everything in the window, you just use the show() method to put the Window on the screen. Which probably would be done from the button handler in this case. Should look something like this.
That’s it!