diff --git a/packages/SystemUI/src/com/android/systemui/dreams/touch/BouncerSwipeTouchHandler.java b/packages/SystemUI/src/com/android/systemui/dreams/touch/BouncerSwipeTouchHandler.java
index c147fde65cf75..517fce1b16a69 100644
--- a/packages/SystemUI/src/com/android/systemui/dreams/touch/BouncerSwipeTouchHandler.java
+++ b/packages/SystemUI/src/com/android/systemui/dreams/touch/BouncerSwipeTouchHandler.java
@@ -144,6 +144,8 @@ public class BouncerSwipeTouchHandler implements DreamTouchHandler {
 
     private void setPanelExpansion(float expansion) {
         mCurrentExpansion = expansion;
+        mCentralSurfaces.setBouncerShowingOverDream(
+                mCurrentExpansion != KeyguardBouncer.EXPANSION_HIDDEN);
         mStatusBarKeyguardViewManager.onPanelExpansionChanged(mCurrentExpansion, false, true);
     }
 
diff --git a/packages/SystemUI/src/com/android/systemui/statusbar/phone/CentralSurfaces.java b/packages/SystemUI/src/com/android/systemui/statusbar/phone/CentralSurfaces.java
index c77b0d6721fb6..2d3bef6319267 100644
--- a/packages/SystemUI/src/com/android/systemui/statusbar/phone/CentralSurfaces.java
+++ b/packages/SystemUI/src/com/android/systemui/statusbar/phone/CentralSurfaces.java
@@ -468,6 +468,7 @@ public class CentralSurfaces extends CoreStartable implements
      */
     protected int mState; // TODO: remove this. Just use StatusBarStateController
     protected boolean mBouncerShowing;
+    private boolean mBouncerShowingOverDream;
 
     private final PhoneStatusBarPolicy mIconPolicy;
 
@@ -3472,6 +3473,16 @@ public class CentralSurfaces extends CoreStartable implements
         }
     }
 
+    /**
+     * Sets whether the bouncer over dream is showing. Note that the bouncer over dream is handled
+     * independently of the rest of the notification panel. As a result, setting this state via
+     * {@link #setBouncerShowing(boolean)} leads to unintended side effects from states modified
+     * behind the dream.
+     */
+    public void setBouncerShowingOverDream(boolean bouncerShowingOverDream) {
+        mBouncerShowingOverDream = bouncerShowingOverDream;
+    }
+
     /**
      * Propagate the bouncer state to status bar components.
      *
@@ -4145,7 +4156,7 @@ public class CentralSurfaces extends CoreStartable implements
     }
 
     public boolean isBouncerShowingOverDream() {
-        return isBouncerShowing() && mDreamOverlayStateController.isOverlayActive();
+        return mBouncerShowingOverDream;
     }
 
     /**
diff --git a/packages/SystemUI/src/com/android/systemui/statusbar/phone/PanelViewController.java b/packages/SystemUI/src/com/android/systemui/statusbar/phone/PanelViewController.java
index 518a9181ec985..ad304c54eee05 100644
--- a/packages/SystemUI/src/com/android/systemui/statusbar/phone/PanelViewController.java
+++ b/packages/SystemUI/src/com/android/systemui/statusbar/phone/PanelViewController.java
@@ -424,6 +424,8 @@ public abstract class PanelViewController {
                     // situations, such keeping your finger down while swiping to unlock to an app
                     // that is locked in landscape (the rotation will cancel the touch event).
                     expand = false;
+                } else if (mCentralSurfaces.isBouncerShowingOverDream()) {
+                    expand = false;
                 } else {
                     // If we get a cancel, put the shade back to the state it was in when the
                     // gesture started
diff --git a/packages/SystemUI/tests/src/com/android/systemui/dreams/touch/BouncerSwipeTouchHandlerTest.java b/packages/SystemUI/tests/src/com/android/systemui/dreams/touch/BouncerSwipeTouchHandlerTest.java
index e175af7a037d5..535023fa08c54 100644
--- a/packages/SystemUI/tests/src/com/android/systemui/dreams/touch/BouncerSwipeTouchHandlerTest.java
+++ b/packages/SystemUI/tests/src/com/android/systemui/dreams/touch/BouncerSwipeTouchHandlerTest.java
@@ -420,7 +420,31 @@ public class BouncerSwipeTouchHandlerTest extends SysuiTestCase {
         verify(mUiEventLogger).log(BouncerSwipeTouchHandler.DreamEvent.DREAM_BOUNCER_FULLY_VISIBLE);
     }
 
+    /**
+     * Ensures {@link CentralSurfaces}
+     */
+    @Test
+    public void testInformBouncerShowingOnExpand() {
+        swipeToPosition(1f, Direction.UP, 0);
+        verify(mCentralSurfaces).setBouncerShowingOverDream(true);
+    }
+
+    /**
+     * Ensures {@link CentralSurfaces}
+     */
+    @Test
+    public void testInformBouncerHidingOnCollapse() {
+        // Must swipe up to set initial state.
+        swipeToPosition(1f, Direction.UP, 0);
+        Mockito.clearInvocations(mCentralSurfaces);
+
+        swipeToPosition(0f, Direction.DOWN, 0);
+        verify(mCentralSurfaces).setBouncerShowingOverDream(false);
+    }
+
+
     private void swipeToPosition(float percent, Direction direction, float velocityY) {
+        Mockito.clearInvocations(mTouchSession);
         mTouchHandler.onSessionStart(mTouchSession);
         ArgumentCaptor<GestureDetector.OnGestureListener> gestureListenerCaptor =
                 ArgumentCaptor.forClass(GestureDetector.OnGestureListener.class);