diff --git a/core/java/android/accounts/AccountManager.java b/core/java/android/accounts/AccountManager.java
index 993b53d17d705..3001c2c9ef0fe 100644
--- a/core/java/android/accounts/AccountManager.java
+++ b/core/java/android/accounts/AccountManager.java
@@ -209,7 +209,8 @@ public class AccountManager {
     /**
      * Bundle key used to supply the last time the credentials of the account
      * were authenticated successfully. Time is specified in milliseconds since
-     * epoch.
+     * epoch. Associated time is updated on successful authentication of account
+     * on adding account, confirming credentials, or updating credentials.
      */
     public static final String KEY_LAST_AUTHENTICATED_TIME = "lastAuthenticatedTime";
 
@@ -651,18 +652,25 @@ public class AccountManager {
     }
 
     /**
-     * Adds an account directly to the AccountManager.  Normally used by sign-up
+     * Adds an account directly to the AccountManager. Normally used by sign-up
      * wizards associated with authenticators, not directly by applications.
-     *
+     * <p>Calling this method does not update the last authenticated timestamp,
+     * referred by {@link #KEY_LAST_AUTHENTICATED_TIME}. To update it, call
+     * {@link #notifyAccountAuthenticated(Account)} after getting success.
+     * However, if this method is called when it is triggered by addAccount() or
+     * addAccountAsUser() or similar functions, then there is no need to update
+     * timestamp manually as it is updated automatically by framework on
+     * successful completion of the mentioned functions.
      * <p>It is safe to call this method from the main thread.
      * <p>This method requires the caller to have a signature match with the
      * authenticator that owns the specified account.
      *
      * @param account The {@link Account} to add
      * @param password The password to associate with the account, null for none
-     * @param userdata String values to use for the account's userdata, null for none
+     * @param userdata String values to use for the account's userdata, null for
+     *            none
      * @return True if the account was successfully added, false if the account
-     *     already exists, the account is null, or another error occurs.
+     *         already exists, the account is null, or another error occurs.
      */
     public boolean addAccountExplicitly(Account account, String password, Bundle userdata) {
         if (account == null) throw new IllegalArgumentException("account is null");
@@ -976,17 +984,19 @@ public class AccountManager {
     }
 
     /**
-     * Sets or forgets a saved password.  This modifies the local copy of the
-     * password used to automatically authenticate the user; it does
-     * not change the user's account password on the server.  Intended for use
-     * by the authenticator, not directly by applications.
-     *
+     * Sets or forgets a saved password. This modifies the local copy of the
+     * password used to automatically authenticate the user; it does not change
+     * the user's account password on the server. Intended for use by the
+     * authenticator, not directly by applications.
+     * <p>Calling this method does not update the last authenticated timestamp,
+     * referred by {@link #KEY_LAST_AUTHENTICATED_TIME}. To update it, call
+     * {@link #notifyAccountAuthenticated(Account)} after getting success.
      * <p>It is safe to call this method from the main thread.
-     *
      * <p>This method requires the caller to have a signature match with the
      * authenticator that manages the specified account.
      *
-     * @param account The account whose password is to be set. Cannot be {@code null}.
+     * @param account The account whose password is to be set. Cannot be
+     *            {@code null}.
      * @param password The password to set, null to clear the password
      */
     public void setPassword(final Account account, final String password) {
diff --git a/services/core/java/com/android/server/accounts/AccountManagerService.java b/services/core/java/com/android/server/accounts/AccountManagerService.java
index 3456dbcc6994f..50d311ff27482 100644
--- a/services/core/java/com/android/server/accounts/AccountManagerService.java
+++ b/services/core/java/com/android/server/accounts/AccountManagerService.java
@@ -1591,13 +1591,6 @@ public class AccountManagerService
             try {
                 final ContentValues values = new ContentValues();
                 values.put(ACCOUNTS_PASSWORD, password);
-                long time = 0;
-                // Only set current time, if it is a valid password. For clear password case, it
-                // should not be set.
-                if (password != null) {
-                    time = System.currentTimeMillis();
-                }
-                values.put(ACCOUNTS_LAST_AUTHENTICATE_TIME_EPOCH_MILLIS, time);
                 final long accountId = getAccountIdLocked(db, account);
                 if (accountId >= 0) {
                     final String[] argsAccountId = {String.valueOf(accountId)};
@@ -2130,7 +2123,7 @@ public class AccountManagerService
         try {
             new Session(accounts, response, accountType, expectActivityLaunch,
                     true /* stripAuthTokenFromResult */, null /* accountName */,
-                    false /* authDetailsRequired */) {
+                    false /* authDetailsRequired */, true /* updateLastAuthenticationTime */) {
                 @Override
                 public void run() throws RemoteException {
                     mAuthenticator.addAccount(this, mAccountType, authTokenType, requiredFeatures,
@@ -2207,7 +2200,7 @@ public class AccountManagerService
         try {
             new Session(accounts, response, accountType, expectActivityLaunch,
                     true /* stripAuthTokenFromResult */, null /* accountName */,
-                    false /* authDetailsRequired */) {
+                    false /* authDetailsRequired */, true /* updateLastAuthenticationTime */) {
                 @Override
                 public void run() throws RemoteException {
                     mAuthenticator.addAccount(this, mAccountType, authTokenType, requiredFeatures,
@@ -2940,14 +2933,14 @@ public class AccountManagerService
             if (result != null) {
                 boolean isSuccessfulConfirmCreds = result.getBoolean(
                         AccountManager.KEY_BOOLEAN_RESULT, false);
-                boolean isSuccessfulUpdateCreds =
+                boolean isSuccessfulUpdateCredsOrAddAccount =
                         result.containsKey(AccountManager.KEY_ACCOUNT_NAME)
                         && result.containsKey(AccountManager.KEY_ACCOUNT_TYPE);
                 // We should only update lastAuthenticated time, if
                 // mUpdateLastAuthenticatedTime is true and the confirmRequest
                 // or updateRequest was successful
                 boolean needUpdate = mUpdateLastAuthenticatedTime
-                        && (isSuccessfulConfirmCreds || isSuccessfulUpdateCreds);
+                        && (isSuccessfulConfirmCreds || isSuccessfulUpdateCredsOrAddAccount);
                 if (needUpdate || mAuthDetailsRequired) {
                     boolean accountPresent = isAccountPresentForCaller(mAccountName, mAccountType);
                     if (needUpdate && accountPresent) {