diff --git a/services/core/java/com/android/server/wm/DisplayPolicy.java b/services/core/java/com/android/server/wm/DisplayPolicy.java
index d31fe23bf2be3..6ed20257f829e 100644
--- a/services/core/java/com/android/server/wm/DisplayPolicy.java
+++ b/services/core/java/com/android/server/wm/DisplayPolicy.java
@@ -1122,7 +1122,6 @@ public class DisplayPolicy {
                     inOutFrame.set(windowContainer.getBounds());
                     break;
                 case SOURCE_FRAME:
-                    inOutFrame.inset(win.mGivenContentInsets);
                     extendByCutout =
                             (lp.privateFlags & PRIVATE_FLAG_LAYOUT_SIZE_EXTENDED_BY_CUTOUT) != 0;
                     break;
diff --git a/services/core/java/com/android/server/wm/InsetsSourceProvider.java b/services/core/java/com/android/server/wm/InsetsSourceProvider.java
index 3b23f97171753..3e03b9983a5db 100644
--- a/services/core/java/com/android/server/wm/InsetsSourceProvider.java
+++ b/services/core/java/com/android/server/wm/InsetsSourceProvider.java
@@ -218,8 +218,6 @@ class InsetsSourceProvider {
         if (mFrameProvider != null) {
             mFrameProvider.accept(mWindowContainer.getDisplayContent().mDisplayFrames,
                     mWindowContainer, mSourceFrame);
-        } else {
-            mSourceFrame.inset(win.mGivenContentInsets);
         }
         updateSourceFrameForServerVisibility();
 
diff --git a/services/core/java/com/android/server/wm/WindowState.java b/services/core/java/com/android/server/wm/WindowState.java
index 680f6052f36ab..23934e00408a5 100644
--- a/services/core/java/com/android/server/wm/WindowState.java
+++ b/services/core/java/com/android/server/wm/WindowState.java
@@ -428,8 +428,9 @@ class WindowState extends WindowContainer<WindowState> implements WindowManagerP
     boolean mGivenInsetsPending;
 
     /**
-     * These are the content insets that were given during layout for
-     * this window, to be applied to windows behind it.
+     * These are the content insets that were given during layout for this window, to be applied to
+     * windows behind it.
+     * This is only applied to IME windows when corresponding process in DisplayPolicy executed.
      */
     final Rect mGivenContentInsets = new Rect();
 
diff --git a/services/tests/wmtests/src/com/android/server/wm/DisplayPolicyTests.java b/services/tests/wmtests/src/com/android/server/wm/DisplayPolicyTests.java
index 2914de115efff..c8fdee06f3e41 100644
--- a/services/tests/wmtests/src/com/android/server/wm/DisplayPolicyTests.java
+++ b/services/tests/wmtests/src/com/android/server/wm/DisplayPolicyTests.java
@@ -352,27 +352,28 @@ public class DisplayPolicyTests extends WindowTestsBase {
         assertTrue(imeSource.getFrame().contains(navBarSource.getFrame()));
     }
 
-    @SetupWindows(addWindows = W_NAVIGATION_BAR)
+    @SetupWindows(addWindows = W_INPUT_METHOD)
     @Test
-    public void testInsetsGivenContentFrame() {
+    public void testImeInsetsGivenContentFrame() {
         final DisplayPolicy displayPolicy = mDisplayContent.getDisplayPolicy();
         final DisplayInfo displayInfo = new DisplayInfo();
         displayInfo.logicalWidth = 1000;
         displayInfo.logicalHeight = 2000;
         displayInfo.rotation = ROTATION_0;
 
-        WindowManager.LayoutParams attrs = mNavBarWindow.mAttrs;
-        displayPolicy.addWindowLw(mNavBarWindow, attrs);
-        mNavBarWindow.setRequestedSize(attrs.width, attrs.height);
-        mNavBarWindow.getControllableInsetProvider().setServerVisible(true);
+        mDisplayContent.setInputMethodWindowLocked(mImeWindow);
+        mImeWindow.getControllableInsetProvider().setServerVisible(true);
 
-        mNavBarWindow.mGivenContentInsets.set(0, 10, 0, 0);
+        mImeWindow.mGivenContentInsets.set(0, 10, 0, 0);
 
-        displayPolicy.layoutWindowLw(mNavBarWindow, null, mDisplayContent.mDisplayFrames);
+        displayPolicy.layoutWindowLw(mImeWindow, null, mDisplayContent.mDisplayFrames);
         final InsetsState state = mDisplayContent.getInsetsStateController().getRawInsetsState();
-        final InsetsSource navBarSource = state.peekSource(
-                mNavBarWindow.getControllableInsetProvider().getSource().getId());
-        assertEquals(attrs.height - 10, navBarSource.getFrame().height());
+        final InsetsSource imeSource = state.peekSource(ID_IME);
+
+        assertNotNull(imeSource);
+        assertFalse(imeSource.getFrame().isEmpty());
+        assertEquals(mImeWindow.getWindowFrames().mFrame.height() - 10,
+                imeSource.getFrame().height());
     }
 
     @SetupWindows(addWindows = { W_ACTIVITY, W_NAVIGATION_BAR })
diff --git a/services/tests/wmtests/src/com/android/server/wm/InsetsSourceProviderTest.java b/services/tests/wmtests/src/com/android/server/wm/InsetsSourceProviderTest.java
index b35eceb6dd11a..5e513f1a0d010 100644
--- a/services/tests/wmtests/src/com/android/server/wm/InsetsSourceProviderTest.java
+++ b/services/tests/wmtests/src/com/android/server/wm/InsetsSourceProviderTest.java
@@ -75,25 +75,6 @@ public class InsetsSourceProviderTest extends WindowTestsBase {
                 mProvider.getSource().calculateVisibleInsets(new Rect(0, 0, 500, 500)));
     }
 
-    @Test
-    public void testPostLayout_givenInsets() {
-        final WindowState ime = createWindow(null, TYPE_APPLICATION, "ime");
-        ime.getFrame().set(0, 0, 500, 100);
-        ime.mGivenContentInsets.set(0, 0, 0, 60);
-        ime.mGivenVisibleInsets.set(0, 0, 0, 75);
-        ime.mHasSurface = true;
-        mProvider.setWindowContainer(ime, null, null);
-        mProvider.updateSourceFrame(ime.getFrame());
-        mProvider.onPostLayout();
-        assertEquals(new Rect(0, 0, 500, 40), mProvider.getSource().getFrame());
-        assertEquals(new Rect(0, 0, 500, 25), mProvider.getSource().getVisibleFrame());
-        assertEquals(Insets.of(0, 40, 0, 0),
-                mProvider.getSource().calculateInsets(new Rect(0, 0, 500, 500),
-                        false /* ignoreVisibility */));
-        assertEquals(Insets.of(0, 25, 0, 0),
-                mProvider.getSource().calculateVisibleInsets(new Rect(0, 0, 500, 500)));
-    }
-
     @Test
     public void testPostLayout_invisible() {
         final WindowState statusBar = createWindow(null, TYPE_APPLICATION, "statusBar");