diff --git a/core/java/android/app/WindowConfiguration.java b/core/java/android/app/WindowConfiguration.java
index 5ef3fc05130c0..e96a986971846 100644
--- a/core/java/android/app/WindowConfiguration.java
+++ b/core/java/android/app/WindowConfiguration.java
@@ -345,6 +345,14 @@ public class WindowConfiguration implements Parcelable, Comparable<WindowConfigu
         mAlwaysOnTop = alwaysOnTop ? ALWAYS_ON_TOP_ON : ALWAYS_ON_TOP_OFF;
     }
 
+    /**
+     * Unsets always-on-top to undefined.
+     * @hide
+     */
+    public void unsetAlwaysOnTop() {
+        mAlwaysOnTop = ALWAYS_ON_TOP_UNDEFINED;
+    }
+
     private void setAlwaysOnTop(@AlwaysOnTop int alwaysOnTop) {
         mAlwaysOnTop = alwaysOnTop;
     }
diff --git a/services/core/java/com/android/server/wm/ConfigurationContainer.java b/services/core/java/com/android/server/wm/ConfigurationContainer.java
index e7c03aa7a099c..fcdf175cb8095 100644
--- a/services/core/java/com/android/server/wm/ConfigurationContainer.java
+++ b/services/core/java/com/android/server/wm/ConfigurationContainer.java
@@ -126,6 +126,10 @@ public abstract class ConfigurationContainer<E extends ConfigurationContainer> {
         mResolvedTmpConfig.setTo(mResolvedOverrideConfiguration);
         resolveOverrideConfiguration(newParentConfig);
         mFullConfiguration.setTo(newParentConfig);
+        // Do not inherit always-on-top property from parent, otherwise the always-on-top
+        // property is propagated to all children. In that case, newly added child is
+        // always being positioned at bottom (behind the always-on-top siblings).
+        mFullConfiguration.windowConfiguration.unsetAlwaysOnTop();
         mFullConfiguration.updateFrom(mResolvedOverrideConfiguration);
         onMergedOverrideConfigurationChanged();
         if (!mResolvedTmpConfig.equals(mResolvedOverrideConfiguration)) {
@@ -228,6 +232,10 @@ public abstract class ConfigurationContainer<E extends ConfigurationContainer> {
         final ConfigurationContainer parent = getParent();
         if (parent != null) {
             mMergedOverrideConfiguration.setTo(parent.getMergedOverrideConfiguration());
+            // Do not inherit always-on-top property from parent, otherwise the always-on-top
+            // property is propagated to all children. In that case, newly added child is
+            // always being positioned at bottom (behind the always-on-top siblings).
+            mMergedOverrideConfiguration.windowConfiguration.unsetAlwaysOnTop();
             mMergedOverrideConfiguration.updateFrom(mResolvedOverrideConfiguration);
         } else {
             mMergedOverrideConfiguration.setTo(mResolvedOverrideConfiguration);
diff --git a/services/tests/wmtests/src/com/android/server/wm/ConfigurationContainerTests.java b/services/tests/wmtests/src/com/android/server/wm/ConfigurationContainerTests.java
index 59b12e406d70c..5d824e9204db0 100644
--- a/services/tests/wmtests/src/com/android/server/wm/ConfigurationContainerTests.java
+++ b/services/tests/wmtests/src/com/android/server/wm/ConfigurationContainerTests.java
@@ -21,6 +21,7 @@ import static android.app.WindowConfiguration.ACTIVITY_TYPE_STANDARD;
 import static android.app.WindowConfiguration.ACTIVITY_TYPE_UNDEFINED;
 import static android.app.WindowConfiguration.WINDOWING_MODE_FREEFORM;
 import static android.app.WindowConfiguration.WINDOWING_MODE_FULLSCREEN;
+import static android.app.WindowConfiguration.WINDOWING_MODE_MULTI_WINDOW;
 import static android.app.WindowConfiguration.WINDOWING_MODE_UNDEFINED;
 import static android.content.pm.ActivityInfo.SCREEN_ORIENTATION_LANDSCAPE;
 import static android.content.pm.ActivityInfo.SCREEN_ORIENTATION_PORTRAIT;
@@ -209,6 +210,20 @@ public class ConfigurationContainerTests {
         assertEquals(mergedConfig2, child2.getConfiguration());
     }
 
+    @Test
+    public void testSetAlwaysOnTop() {
+        final TestConfigurationContainer root = new TestConfigurationContainer();
+        final TestConfigurationContainer child1 = root.addChild();
+        final TestConfigurationContainer child2 = root.addChild();
+        root.setWindowingMode(WINDOWING_MODE_MULTI_WINDOW);
+        root.setAlwaysOnTop(true);
+        final TestConfigurationContainer child3 = root.addChild();
+        assertEquals(true, root.isAlwaysOnTop());
+        assertEquals(false, child1.isAlwaysOnTop());
+        assertEquals(false, child2.isAlwaysOnTop());
+        assertEquals(false, child3.isAlwaysOnTop());
+    }
+
     @Test
     public void testSetWindowingMode() {
         final TestConfigurationContainer root = new TestConfigurationContainer();
diff --git a/services/tests/wmtests/src/com/android/server/wm/TaskDisplayAreaTests.java b/services/tests/wmtests/src/com/android/server/wm/TaskDisplayAreaTests.java
index e5e0145095c1a..e8f1d2390c341 100644
--- a/services/tests/wmtests/src/com/android/server/wm/TaskDisplayAreaTests.java
+++ b/services/tests/wmtests/src/com/android/server/wm/TaskDisplayAreaTests.java
@@ -674,8 +674,6 @@ public class TaskDisplayAreaTests extends WindowTestsBase {
         taskDisplayArea.positionChildAt(POSITION_TOP, alwaysOnTopRootTask,
                 false /* includingParents */);
         assertTrue(alwaysOnTopRootTask.isAlwaysOnTop());
-        // Ensure always on top state is synced to the children of the root task.
-        assertTrue(alwaysOnTopRootTask.getTopNonFinishingActivity().isAlwaysOnTop());
         assertEquals(alwaysOnTopRootTask, taskDisplayArea.getTopRootTask());
 
         final Task pinnedRootTask = taskDisplayArea.createRootTask(