diff --git a/services/core/java/com/android/server/wm/PolicyControl.java b/services/core/java/com/android/server/wm/PolicyControl.java
index 4c8ce9ebb72cc..0f92bc83a6666 100644
--- a/services/core/java/com/android/server/wm/PolicyControl.java
+++ b/services/core/java/com/android/server/wm/PolicyControl.java
@@ -26,6 +26,8 @@ import android.view.View;
 import android.view.WindowManager;
 import android.view.WindowManager.LayoutParams;
 
+import com.android.internal.annotations.VisibleForTesting;
+
 import java.io.PrintWriter;
 import java.io.StringWriter;
 
@@ -51,7 +53,8 @@ class PolicyControl {
     private static final String TAG = "PolicyControl";
     private static final boolean DEBUG = false;
 
-    private static final String NAME_IMMERSIVE_FULL = "immersive.full";
+    @VisibleForTesting
+    static final String NAME_IMMERSIVE_FULL = "immersive.full";
     private static final String NAME_IMMERSIVE_STATUS = "immersive.status";
     private static final String NAME_IMMERSIVE_NAVIGATION = "immersive.navigation";
     private static final String NAME_IMMERSIVE_PRECONFIRMATIONS = "immersive.preconfirms";
@@ -67,15 +70,19 @@ class PolicyControl {
                 : (attrs.systemUiVisibility | attrs.subtreeSystemUiVisibility);
         if (sImmersiveStatusFilter != null && sImmersiveStatusFilter.matches(attrs)) {
             vis |= View.SYSTEM_UI_FLAG_IMMERSIVE_STICKY
-                    | View.SYSTEM_UI_FLAG_FULLSCREEN
-                    | View.SYSTEM_UI_FLAG_LAYOUT_FULLSCREEN;
+                    | View.SYSTEM_UI_FLAG_FULLSCREEN;
+            if (attrs.isFullscreen()) {
+                vis |= View.SYSTEM_UI_FLAG_LAYOUT_FULLSCREEN;
+            }
             vis &= ~(View.SYSTEM_UI_FLAG_LAYOUT_STABLE
                     | View.STATUS_BAR_TRANSLUCENT);
         }
         if (sImmersiveNavigationFilter != null && sImmersiveNavigationFilter.matches(attrs)) {
             vis |= View.SYSTEM_UI_FLAG_IMMERSIVE_STICKY
-                    | View.SYSTEM_UI_FLAG_LAYOUT_HIDE_NAVIGATION
                     | View.SYSTEM_UI_FLAG_HIDE_NAVIGATION;
+            if (attrs.isFullscreen()) {
+                vis |= View.SYSTEM_UI_FLAG_LAYOUT_HIDE_NAVIGATION;
+            }
             vis &= ~(View.SYSTEM_UI_FLAG_LAYOUT_STABLE
                     | View.NAVIGATION_BAR_TRANSLUCENT);
         }
@@ -144,7 +151,8 @@ class PolicyControl {
         }
     }
 
-    private static void setFilters(String value) {
+    @VisibleForTesting
+    static void setFilters(String value) {
         if (DEBUG) Slog.d(TAG, "setFilters: " + value);
         sImmersiveStatusFilter = null;
         sImmersiveNavigationFilter = null;
diff --git a/services/tests/wmtests/src/com/android/server/wm/DisplayPolicyLayoutTests.java b/services/tests/wmtests/src/com/android/server/wm/DisplayPolicyLayoutTests.java
index 2a3731a2e4835..67b7a66b4794e 100644
--- a/services/tests/wmtests/src/com/android/server/wm/DisplayPolicyLayoutTests.java
+++ b/services/tests/wmtests/src/com/android/server/wm/DisplayPolicyLayoutTests.java
@@ -24,6 +24,7 @@ import static android.view.Surface.ROTATION_0;
 import static android.view.Surface.ROTATION_270;
 import static android.view.Surface.ROTATION_90;
 import static android.view.View.SYSTEM_UI_FLAG_FULLSCREEN;
+import static android.view.View.SYSTEM_UI_FLAG_HIDE_NAVIGATION;
 import static android.view.View.SYSTEM_UI_FLAG_LAYOUT_FULLSCREEN;
 import static android.view.View.SYSTEM_UI_FLAG_LAYOUT_HIDE_NAVIGATION;
 import static android.view.ViewGroup.LayoutParams.MATCH_PARENT;
@@ -56,15 +57,23 @@ import android.view.DisplayCutout;
 import android.view.DisplayInfo;
 import android.view.WindowManager;
 
+import androidx.test.filters.FlakyTest;
 import androidx.test.filters.SmallTest;
 
 import com.android.server.policy.WindowManagerPolicy;
 import com.android.server.wm.utils.WmDisplayCutout;
 
+import org.junit.After;
 import org.junit.Before;
 import org.junit.Test;
 import org.junit.runner.RunWith;
 
+/**
+ * Tests for the {@link DisplayPolicy} class.
+ *
+ * Build/Install/Run:
+ *  atest WmTests:DisplayPolicyLayoutTests
+ */
 @SmallTest
 @Presubmit
 @RunWith(WindowTestRunner.class)
@@ -93,6 +102,12 @@ public class DisplayPolicyLayoutTests extends DisplayPolicyTestsBase {
         attrs.format = PixelFormat.TRANSLUCENT;
     }
 
+    @After
+    public void tearDown() {
+        PolicyControl.setFilters("");
+        mWindow.getDisplayContent().mInputMethodTarget = null;
+    }
+
     public void setRotation(int rotation) {
         mRotation = rotation;
         updateDisplayFrames();
@@ -393,6 +408,105 @@ public class DisplayPolicyLayoutTests extends DisplayPolicyTestsBase {
         assertInsetBy(mWindow.getDisplayFrameLw(), 0, 0, 0, 0);
     }
 
+    @FlakyTest(bugId = 129711077)
+    @Test
+    public void layoutWindowLw_withImmersive_SoftInputAdjustResize() {
+        synchronized (mWm.mGlobalLock) {
+            mWindow.mAttrs.softInputMode = SOFT_INPUT_ADJUST_RESIZE;
+            mWindow.mAttrs.flags = 0;
+            mWindow.mAttrs.systemUiVisibility =
+                    SYSTEM_UI_FLAG_LAYOUT_FULLSCREEN | SYSTEM_UI_FLAG_LAYOUT_HIDE_NAVIGATION
+                            | SYSTEM_UI_FLAG_FULLSCREEN | SYSTEM_UI_FLAG_HIDE_NAVIGATION;
+
+            addWindow(mWindow);
+
+            mWindow.getDisplayContent().mInputMethodTarget = mWindow;
+            mDisplayPolicy.beginLayoutLw(mFrames, 0 /* UI mode */);
+            mFrames.mContent.bottom = mFrames.mVoiceContent.bottom = INPUT_METHOD_WINDOW_TOP;
+            mFrames.mCurrent.bottom = INPUT_METHOD_WINDOW_TOP;
+            mDisplayPolicy.layoutWindowLw(mWindow, null, mFrames);
+
+            int bottomInset = mFrames.mDisplayHeight - INPUT_METHOD_WINDOW_TOP;
+            assertInsetByTopBottom(mWindow.getParentFrame(), 0, 0);
+            assertInsetByTopBottom(mWindow.getContentFrameLw(), 0, 0);
+            assertInsetByTopBottom(mWindow.getVisibleFrameLw(), STATUS_BAR_HEIGHT, bottomInset);
+        }
+    }
+
+    @FlakyTest(bugId = 129711077)
+    @Test
+    public void layoutWindowLw_withImmersive_SoftInputAdjustNothing() {
+        synchronized (mWm.mGlobalLock) {
+            mWindow.mAttrs.softInputMode = SOFT_INPUT_ADJUST_NOTHING;
+            mWindow.mAttrs.flags = 0;
+            mWindow.mAttrs.systemUiVisibility =
+                    SYSTEM_UI_FLAG_LAYOUT_FULLSCREEN | SYSTEM_UI_FLAG_LAYOUT_HIDE_NAVIGATION
+                            | SYSTEM_UI_FLAG_FULLSCREEN | SYSTEM_UI_FLAG_HIDE_NAVIGATION;
+
+            addWindow(mWindow);
+
+            mWindow.getDisplayContent().mInputMethodTarget = mWindow;
+            mDisplayPolicy.beginLayoutLw(mFrames, 0 /* UI mode */);
+            mFrames.mContent.bottom = mFrames.mVoiceContent.bottom = INPUT_METHOD_WINDOW_TOP;
+            mFrames.mCurrent.bottom = INPUT_METHOD_WINDOW_TOP;
+            mDisplayPolicy.layoutWindowLw(mWindow, null, mFrames);
+
+            assertInsetByTopBottom(mWindow.getParentFrame(), 0, 0);
+            assertInsetByTopBottom(mWindow.getContentFrameLw(), 0, 0);
+            assertInsetByTopBottom(mWindow.getVisibleFrameLw(), 0, 0);
+        }
+    }
+
+    @FlakyTest(bugId = 129711077)
+    @Test
+    public void layoutWindowLw_withForceImmersive_fullscreen() {
+        synchronized (mWm.mGlobalLock) {
+            mWindow.mAttrs.softInputMode = SOFT_INPUT_ADJUST_RESIZE;
+            mWindow.mAttrs.flags = 0;
+            mWindow.mAttrs.systemUiVisibility = 0;
+            PolicyControl.setFilters(PolicyControl.NAME_IMMERSIVE_FULL + "=*");
+
+            addWindow(mWindow);
+
+            mWindow.getDisplayContent().mInputMethodTarget = mWindow;
+            mDisplayPolicy.beginLayoutLw(mFrames, 0 /* UI mode */);
+            mFrames.mContent.bottom = mFrames.mVoiceContent.bottom = INPUT_METHOD_WINDOW_TOP;
+            mFrames.mCurrent.bottom = INPUT_METHOD_WINDOW_TOP;
+            mDisplayPolicy.layoutWindowLw(mWindow, null, mFrames);
+
+            int bottomInset = mFrames.mDisplayHeight - INPUT_METHOD_WINDOW_TOP;
+            assertInsetByTopBottom(mWindow.getParentFrame(), 0, 0);
+            assertInsetByTopBottom(mWindow.getContentFrameLw(), 0, 0);
+            assertInsetByTopBottom(mWindow.getVisibleFrameLw(), STATUS_BAR_HEIGHT, bottomInset);
+        }
+    }
+
+    @FlakyTest(bugId = 129711077)
+    @Test
+    public void layoutWindowLw_withForceImmersive_nonFullscreen() {
+        synchronized (mWm.mGlobalLock) {
+            mWindow.mAttrs.softInputMode = SOFT_INPUT_ADJUST_RESIZE;
+            mWindow.mAttrs.flags = 0;
+            mWindow.mAttrs.systemUiVisibility = 0;
+            mWindow.mAttrs.width = DISPLAY_WIDTH / 2;
+            mWindow.mAttrs.height = DISPLAY_HEIGHT / 2;
+            PolicyControl.setFilters(PolicyControl.NAME_IMMERSIVE_FULL + "=*");
+
+            addWindow(mWindow);
+
+            mWindow.getDisplayContent().mInputMethodTarget = mWindow;
+            mDisplayPolicy.beginLayoutLw(mFrames, 0 /* UI mode */);
+            mFrames.mContent.bottom = mFrames.mVoiceContent.bottom = INPUT_METHOD_WINDOW_TOP;
+            mFrames.mCurrent.bottom = INPUT_METHOD_WINDOW_TOP;
+            mDisplayPolicy.layoutWindowLw(mWindow, null, mFrames);
+
+            int bottomInset = mFrames.mDisplayHeight - INPUT_METHOD_WINDOW_TOP;
+            assertInsetByTopBottom(mWindow.getParentFrame(), STATUS_BAR_HEIGHT, bottomInset);
+            assertInsetByTopBottom(mWindow.getContentFrameLw(), STATUS_BAR_HEIGHT, bottomInset);
+            assertInsetByTopBottom(mWindow.getVisibleFrameLw(), STATUS_BAR_HEIGHT, bottomInset);
+        }
+    }
+
     @Test
     public void layoutHint_appWindow() {
         // Initialize DisplayFrames
diff --git a/services/tests/wmtests/src/com/android/server/wm/DisplayPolicyTestsBase.java b/services/tests/wmtests/src/com/android/server/wm/DisplayPolicyTestsBase.java
index 2933b4a460d82..d4558dc29fda0 100644
--- a/services/tests/wmtests/src/com/android/server/wm/DisplayPolicyTestsBase.java
+++ b/services/tests/wmtests/src/com/android/server/wm/DisplayPolicyTestsBase.java
@@ -62,6 +62,7 @@ public class DisplayPolicyTestsBase extends WindowTestsBase {
     static final int STATUS_BAR_HEIGHT = 10;
     static final int NAV_BAR_HEIGHT = 15;
     static final int DISPLAY_CUTOUT_HEIGHT = 8;
+    static final int INPUT_METHOD_WINDOW_TOP = 585;
 
     DisplayPolicy mDisplayPolicy;