diff --git a/services/core/java/com/android/server/wm/KeyguardController.java b/services/core/java/com/android/server/wm/KeyguardController.java
index 4a8c36f9bc475..c630e91ee3062 100644
--- a/services/core/java/com/android/server/wm/KeyguardController.java
+++ b/services/core/java/com/android/server/wm/KeyguardController.java
@@ -109,13 +109,13 @@ class KeyguardController {
     }
 
     /**
-     * @return {@code true} for default display when AOD is showing. Otherwise, same as
-     *         {@link #isKeyguardOrAodShowing(int)}
+     * @return {@code true} for default display when AOD is showing, not going away. Otherwise, same
+     *         as {@link #isKeyguardOrAodShowing(int)}
      * TODO(b/125198167): Replace isKeyguardOrAodShowing() by this logic.
      */
     boolean isKeyguardUnoccludedOrAodShowing(int displayId) {
         if (displayId == DEFAULT_DISPLAY && mAodShowing) {
-            return true;
+            return !mKeyguardGoingAway;
         }
         return isKeyguardOrAodShowing(displayId);
     }
@@ -488,7 +488,7 @@ class KeyguardController {
         final KeyguardDisplayState state = getDisplayState(displayId);
         if (isKeyguardUnoccludedOrAodShowing(displayId)) {
             state.mSleepTokenAcquirer.acquire(displayId);
-        } else if (!isKeyguardUnoccludedOrAodShowing(displayId)) {
+        } else {
             state.mSleepTokenAcquirer.release(displayId);
         }
     }
diff --git a/services/tests/wmtests/src/com/android/server/wm/DisplayContentTests.java b/services/tests/wmtests/src/com/android/server/wm/DisplayContentTests.java
index 4ee0c60905047..6918bdd3f4bd6 100644
--- a/services/tests/wmtests/src/com/android/server/wm/DisplayContentTests.java
+++ b/services/tests/wmtests/src/com/android/server/wm/DisplayContentTests.java
@@ -2172,6 +2172,21 @@ public class DisplayContentTests extends WindowTestsBase {
         assertEquals(top, display.topRunningActivity(true /* considerKeyguardState */));
     }
 
+    @Test
+    public void testKeyguardGoingAwayWhileAodShown() {
+        mDisplayContent.getDisplayPolicy().setAwake(true);
+
+        final WindowState appWin = createWindow(null, TYPE_APPLICATION, mDisplayContent, "appWin");
+        final ActivityRecord activity = appWin.mActivityRecord;
+
+        mAtm.mKeyguardController.setKeyguardShown(true /* keyguardShowing */,
+                true /* aodShowing */);
+        assertFalse(activity.isVisibleRequested());
+
+        mAtm.mKeyguardController.keyguardGoingAway(0 /* flags */);
+        assertTrue(activity.isVisibleRequested());
+    }
+
     @Test
     public void testRemoveRootTaskInWindowingModes() {
         removeRootTaskTests(() -> mRootWindowContainer.removeRootTasksInWindowingModes(