diff --git a/packages/SystemUI/src/com/android/systemui/unfold/FoldAodAnimationController.kt b/packages/SystemUI/src/com/android/systemui/unfold/FoldAodAnimationController.kt
index d74906af38daa..eed7950abacbd 100644
--- a/packages/SystemUI/src/com/android/systemui/unfold/FoldAodAnimationController.kt
+++ b/packages/SystemUI/src/com/android/systemui/unfold/FoldAodAnimationController.kt
@@ -154,10 +154,6 @@ constructor(
                 pendingScrimReadyCallback = onReady
             }
         } else if (isFolded && !isFoldHandled && alwaysOnEnabled && isDozing) {
-            // Screen turning on for the first time after folding and we are already dozing
-            // We should play the folding to AOD animation
-            isFoldHandled = true
-
             setAnimationState(playing = true)
             getShadeFoldAnimator().prepareFoldToAodAnimation()
 
@@ -173,6 +169,13 @@ constructor(
             // No animation, call ready callback immediately
             onReady.run()
         }
+
+        if (isFolded) {
+            // Any time the screen turns on, this state needs to be reset if the device has been
+            // folded. Reaching this line implies AOD has been shown in one way or another,
+            // if enabled
+            isFoldHandled = true
+        }
     }
 
     /** Called when keyguard scrim opaque changed */
diff --git a/packages/SystemUI/tests/src/com/android/systemui/unfold/FoldAodAnimationControllerTest.kt b/packages/SystemUI/tests/src/com/android/systemui/unfold/FoldAodAnimationControllerTest.kt
index 8fc0a1acf76b8..62985060e7d40 100644
--- a/packages/SystemUI/tests/src/com/android/systemui/unfold/FoldAodAnimationControllerTest.kt
+++ b/packages/SystemUI/tests/src/com/android/systemui/unfold/FoldAodAnimationControllerTest.kt
@@ -199,6 +199,31 @@ class FoldAodAnimationControllerTest : SysuiTestCase() {
             job.cancel()
         }
 
+    @Test
+    fun onFolded_onScreenTurningOnWithoutDozingThenWithDozing_doesNotLogLatency() =
+        runBlocking(IMMEDIATE) {
+            val job = underTest.listenForDozing(this)
+            keyguardRepository.setDozing(false)
+            setAodEnabled(enabled = true)
+
+            yield()
+
+            fold()
+            simulateScreenTurningOn()
+            reset(latencyTracker)
+
+            // Now enable dozing and trigger a second run through the aod animation code. It should
+            // not rerun the animation
+            keyguardRepository.setDozing(true)
+            yield()
+            simulateScreenTurningOn()
+
+            verify(latencyTracker, never()).onActionStart(any())
+            verify(latencyTracker, never()).onActionEnd(any())
+
+            job.cancel()
+        }
+
     @Test
     fun onFolded_animationCancelled_doesNotLogLatency() =
         runBlocking(IMMEDIATE) {