diff --git a/services/core/java/com/android/server/wm/DisplayPolicy.java b/services/core/java/com/android/server/wm/DisplayPolicy.java
index df35402e7320a..35e891ce8bbe5 100644
--- a/services/core/java/com/android/server/wm/DisplayPolicy.java
+++ b/services/core/java/com/android/server/wm/DisplayPolicy.java
@@ -271,13 +271,13 @@ public class DisplayPolicy {
     private WindowState mSystemUiControllingWindow;
 
     // Candidate window to determine the color of navigation bar. The window needs to be top
-    // fullscreen-app windows or dim layers that are intersecting with the window frame of status
-    // bar.
+    // fullscreen-app windows or dim layers that are intersecting with the window frame of
+    // navigation bar.
     private WindowState mNavBarColorWindowCandidate;
 
-    // The window to determine opacity and background of translucent navigation bar. The window
-    // needs to be opaque.
-    private WindowState mNavBarBackgroundWindow;
+    // Candidate window to determine opacity and background of translucent navigation bar.
+    // The window frame must intersect the frame of navigation bar.
+    private WindowState mNavBarBackgroundWindowCandidate;
 
     /**
      * A collection of {@link AppearanceRegion} to indicate that which region of status bar applies
@@ -1383,7 +1383,7 @@ public class DisplayPolicy {
         mBottomGestureHost = null;
         mTopFullscreenOpaqueWindowState = null;
         mNavBarColorWindowCandidate = null;
-        mNavBarBackgroundWindow = null;
+        mNavBarBackgroundWindowCandidate = null;
         mStatusBarAppearanceRegionList.clear();
         mLetterboxDetails.clear();
         mStatusBarBackgroundWindows.clear();
@@ -1510,8 +1510,8 @@ public class DisplayPolicy {
                     mNavBarColorWindowCandidate = win;
                     addSystemBarColorApp(win);
                 }
-                if (mNavBarBackgroundWindow == null) {
-                    mNavBarBackgroundWindow = win;
+                if (mNavBarBackgroundWindowCandidate == null) {
+                    mNavBarBackgroundWindowCandidate = win;
                 }
             }
 
@@ -1535,12 +1535,19 @@ public class DisplayPolicy {
             }
             if (isOverlappingWithNavBar(win) && mNavBarColorWindowCandidate == null) {
                 mNavBarColorWindowCandidate = win;
+                addSystemBarColorApp(win);
             }
-        } else if (appWindow && attached == null && mNavBarColorWindowCandidate == null
+        } else if (appWindow && attached == null
+                && (mNavBarColorWindowCandidate == null || mNavBarBackgroundWindowCandidate == null)
                 && win.getFrame().contains(
                         getBarContentFrameForWindow(win, Type.navigationBars()))) {
-            mNavBarColorWindowCandidate = win;
-            addSystemBarColorApp(win);
+            if (mNavBarColorWindowCandidate == null) {
+                mNavBarColorWindowCandidate = win;
+                addSystemBarColorApp(win);
+            }
+            if (mNavBarBackgroundWindowCandidate == null) {
+                mNavBarBackgroundWindowCandidate = win;
+            }
         }
     }
 
@@ -2461,7 +2468,7 @@ public class DisplayPolicy {
         return win.isFullyTransparentBarAllowed(getBarContentFrameForWindow(win, type));
     }
 
-    private boolean drawsBarBackground(WindowState win) {
+    private static boolean drawsBarBackground(WindowState win) {
         if (win == null) {
             return true;
         }
@@ -2501,7 +2508,11 @@ public class DisplayPolicy {
      */
     private int configureNavBarOpacity(int appearance, boolean multiWindowTaskVisible,
             boolean freeformRootTaskVisible) {
-        final boolean drawBackground = drawsBarBackground(mNavBarBackgroundWindow);
+        final WindowState navBackgroundWin = chooseNavigationBackgroundWindow(
+                mNavBarBackgroundWindowCandidate,
+                mDisplayContent.mInputMethodWindow,
+                mNavigationBarPosition);
+        final boolean drawBackground = navBackgroundWin != null;
 
         if (mNavBarOpacityMode == NAV_BAR_FORCE_TRANSPARENT) {
             if (drawBackground) {
@@ -2521,7 +2532,7 @@ public class DisplayPolicy {
             }
         }
 
-        if (!isFullyTransparentAllowed(mNavBarBackgroundWindow, Type.navigationBars())) {
+        if (!isFullyTransparentAllowed(navBackgroundWin, Type.navigationBars())) {
             appearance |= APPEARANCE_SEMI_TRANSPARENT_NAVIGATION_BARS;
         }
 
@@ -2532,6 +2543,20 @@ public class DisplayPolicy {
         return appearance & ~APPEARANCE_OPAQUE_NAVIGATION_BARS;
     }
 
+    @VisibleForTesting
+    @Nullable
+    static WindowState chooseNavigationBackgroundWindow(WindowState candidate,
+            WindowState imeWindow, @NavigationBarPosition int navBarPosition) {
+        if (imeWindow != null && imeWindow.isVisible() && navBarPosition == NAV_BAR_BOTTOM
+                && drawsBarBackground(imeWindow)) {
+            return imeWindow;
+        }
+        if (drawsBarBackground(candidate)) {
+            return candidate;
+        }
+        return null;
+    }
+
     private boolean isImmersiveMode(WindowState win) {
         if (win == null) {
             return false;
@@ -2704,9 +2729,9 @@ public class DisplayPolicy {
             pw.print(prefix); pw.print("mNavBarColorWindowCandidate=");
             pw.println(mNavBarColorWindowCandidate);
         }
-        if (mNavBarBackgroundWindow != null) {
-            pw.print(prefix); pw.print("mNavBarBackgroundWindow=");
-            pw.println(mNavBarBackgroundWindow);
+        if (mNavBarBackgroundWindowCandidate != null) {
+            pw.print(prefix); pw.print("mNavBarBackgroundWindowCandidate=");
+            pw.println(mNavBarBackgroundWindowCandidate);
         }
         if (mLastStatusBarAppearanceRegions != null) {
             pw.print(prefix); pw.println("mLastStatusBarAppearanceRegions=");
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 5ec36048234bf..a422c6893de58 100644
--- a/services/tests/wmtests/src/com/android/server/wm/DisplayPolicyTests.java
+++ b/services/tests/wmtests/src/com/android/server/wm/DisplayPolicyTests.java
@@ -178,6 +178,44 @@ public class DisplayPolicyTests extends WindowTestsBase {
                 dimmingNonImTarget, imeNonDrawNavBar, NAV_BAR_BOTTOM));
     }
 
+    @Test
+    public void testChooseNavigationBackgroundWindow() {
+        final WindowState drawBarWin = createOpaqueFullscreen(false);
+        final WindowState nonDrawBarWin = createDimmingDialogWindow(true);
+
+        final WindowState visibleIme = createInputMethodWindow(true, true, false);
+        final WindowState invisibleIme = createInputMethodWindow(false, true, false);
+        final WindowState nonDrawBarIme = createInputMethodWindow(true, false, false);
+
+        assertEquals(drawBarWin, DisplayPolicy.chooseNavigationBackgroundWindow(
+                drawBarWin, null, NAV_BAR_BOTTOM));
+        assertNull(DisplayPolicy.chooseNavigationBackgroundWindow(
+                null, null, NAV_BAR_BOTTOM));
+        assertNull(DisplayPolicy.chooseNavigationBackgroundWindow(
+                nonDrawBarWin, null, NAV_BAR_BOTTOM));
+
+        assertEquals(visibleIme, DisplayPolicy.chooseNavigationBackgroundWindow(
+                drawBarWin, visibleIme, NAV_BAR_BOTTOM));
+        assertEquals(visibleIme, DisplayPolicy.chooseNavigationBackgroundWindow(
+                null, visibleIme, NAV_BAR_BOTTOM));
+        assertEquals(visibleIme, DisplayPolicy.chooseNavigationBackgroundWindow(
+                nonDrawBarWin, visibleIme, NAV_BAR_BOTTOM));
+
+        assertEquals(drawBarWin, DisplayPolicy.chooseNavigationBackgroundWindow(
+                drawBarWin, invisibleIme, NAV_BAR_BOTTOM));
+        assertNull(DisplayPolicy.chooseNavigationBackgroundWindow(
+                null, invisibleIme, NAV_BAR_BOTTOM));
+        assertNull(DisplayPolicy.chooseNavigationBackgroundWindow(
+                nonDrawBarWin, invisibleIme, NAV_BAR_BOTTOM));
+
+        assertEquals(drawBarWin, DisplayPolicy.chooseNavigationBackgroundWindow(
+                drawBarWin, nonDrawBarIme, NAV_BAR_BOTTOM));
+        assertNull(DisplayPolicy.chooseNavigationBackgroundWindow(
+                null, nonDrawBarIme, NAV_BAR_BOTTOM));
+        assertNull(DisplayPolicy.chooseNavigationBackgroundWindow(
+                nonDrawBarWin, nonDrawBarIme, NAV_BAR_BOTTOM));
+    }
+
     @SetupWindows(addWindows = W_NAVIGATION_BAR)
     @Test
     public void testUpdateLightNavigationBarLw() {