diff --git a/packages/SystemUI/src/com/android/systemui/biometrics/UdfpsController.java b/packages/SystemUI/src/com/android/systemui/biometrics/UdfpsController.java
index b5378cd22904e..69447d5bd0880 100644
--- a/packages/SystemUI/src/com/android/systemui/biometrics/UdfpsController.java
+++ b/packages/SystemUI/src/com/android/systemui/biometrics/UdfpsController.java
@@ -785,6 +785,7 @@ public class UdfpsController implements DozeReceiver {
                         mLockscreenShadeTransitionController,
                         mConfigurationController,
                         mSystemClock,
+                        mKeyguardStateController,
                         this
                 );
             case IUdfpsOverlayController.REASON_AUTH_BP:
diff --git a/packages/SystemUI/src/com/android/systemui/biometrics/UdfpsKeyguardViewController.java b/packages/SystemUI/src/com/android/systemui/biometrics/UdfpsKeyguardViewController.java
index b81b54720fbde..e78b540c3a73b 100644
--- a/packages/SystemUI/src/com/android/systemui/biometrics/UdfpsKeyguardViewController.java
+++ b/packages/SystemUI/src/com/android/systemui/biometrics/UdfpsKeyguardViewController.java
@@ -34,6 +34,7 @@ import com.android.systemui.statusbar.phone.KeyguardBouncer;
 import com.android.systemui.statusbar.phone.StatusBar;
 import com.android.systemui.statusbar.phone.StatusBarKeyguardViewManager;
 import com.android.systemui.statusbar.policy.ConfigurationController;
+import com.android.systemui.statusbar.policy.KeyguardStateController;
 import com.android.systemui.util.concurrency.DelayableExecutor;
 import com.android.systemui.util.time.SystemClock;
 
@@ -53,6 +54,7 @@ public class UdfpsKeyguardViewController extends UdfpsAnimationViewController<Ud
     @NonNull private final LockscreenShadeTransitionController mLockScreenShadeTransitionController;
     @NonNull private final ConfigurationController mConfigurationController;
     @NonNull private final SystemClock mSystemClock;
+    @NonNull private final KeyguardStateController mKeyguardStateController;
     @NonNull private final UdfpsController mUdfpsController;
 
     private boolean mShowingUdfpsBouncer;
@@ -63,6 +65,8 @@ public class UdfpsKeyguardViewController extends UdfpsAnimationViewController<Ud
     private float mTransitionToFullShadeProgress;
     private float mLastDozeAmount;
     private long mLastUdfpsBouncerShowTime = -1;
+    private float mStatusBarExpansion;
+    private boolean mLaunchTransitionFadingAway;
 
     /**
      * hidden amount of pin/pattern/password bouncer
@@ -84,6 +88,7 @@ public class UdfpsKeyguardViewController extends UdfpsAnimationViewController<Ud
             @NonNull LockscreenShadeTransitionController transitionController,
             @NonNull ConfigurationController configurationController,
             @NonNull SystemClock systemClock,
+            @NonNull KeyguardStateController keyguardStateController,
             @NonNull UdfpsController udfpsController) {
         super(view, statusBarStateController, statusBarOptional, dumpManager);
         mKeyguardViewManager = statusBarKeyguardViewManager;
@@ -93,6 +98,7 @@ public class UdfpsKeyguardViewController extends UdfpsAnimationViewController<Ud
         mLockScreenShadeTransitionController = transitionController;
         mConfigurationController = configurationController;
         mSystemClock = systemClock;
+        mKeyguardStateController = keyguardStateController;
         mUdfpsController = udfpsController;
     }
 
@@ -111,11 +117,16 @@ public class UdfpsKeyguardViewController extends UdfpsAnimationViewController<Ud
 
         mUdfpsRequested = false;
 
+        mLaunchTransitionFadingAway = mKeyguardStateController.isLaunchTransitionFadingAway();
+        mKeyguardStateController.addCallback(mKeyguardStateControllerCallback);
         mStatusBarState = mStatusBarStateController.getState();
         mQsExpanded = mKeyguardViewManager.isQsExpanded();
         mInputBouncerHiddenAmount = KeyguardBouncer.EXPANSION_HIDDEN;
         mIsBouncerVisible = mKeyguardViewManager.bouncerIsOrWillBeShowing();
         mConfigurationController.addCallback(mConfigurationListener);
+        mStatusBarOptional.ifPresent(
+                statusBar -> statusBar.addExpansionChangedListener(
+                        mStatusBarExpansionChangedListener));
         updateAlpha();
         updatePauseAuth();
 
@@ -128,10 +139,14 @@ public class UdfpsKeyguardViewController extends UdfpsAnimationViewController<Ud
         super.onViewDetached();
         mFaceDetectRunning = false;
 
+        mKeyguardStateController.removeCallback(mKeyguardStateControllerCallback);
         mStatusBarStateController.removeCallback(mStateListener);
         mKeyguardViewManager.removeAlternateAuthInterceptor(mAlternateAuthInterceptor);
         mKeyguardUpdateMonitor.requestFaceAuthOnOccludingApp(false);
         mConfigurationController.removeCallback(mConfigurationListener);
+        mStatusBarOptional.ifPresent(
+                statusBar -> statusBar.removeExpansionChangedListener(
+                        mStatusBarExpansionChangedListener));
         if (mLockScreenShadeTransitionController.getUdfpsKeyguardViewController() == this) {
             mLockScreenShadeTransitionController.setUdfpsKeyguardViewController(null);
         }
@@ -146,9 +161,11 @@ public class UdfpsKeyguardViewController extends UdfpsAnimationViewController<Ud
         pw.println("mQsExpanded=" + mQsExpanded);
         pw.println("mIsBouncerVisible=" + mIsBouncerVisible);
         pw.println("mInputBouncerHiddenAmount=" + mInputBouncerHiddenAmount);
+        pw.println("mStatusBarExpansion=" + mStatusBarExpansion);
         pw.println("mAlpha=" + mView.getAlpha());
         pw.println("mUdfpsRequested=" + mUdfpsRequested);
         pw.println("mView.mUdfpsRequested=" + mView.mUdfpsRequested);
+        pw.println("mLaunchTransitionFadingAway=" + mLaunchTransitionFadingAway);
     }
 
     /**
@@ -198,6 +215,10 @@ public class UdfpsKeyguardViewController extends UdfpsAnimationViewController<Ud
             return false;
         }
 
+        if (mLaunchTransitionFadingAway) {
+            return true;
+        }
+
         if (mStatusBarState != KEYGUARD) {
             return true;
         }
@@ -255,10 +276,13 @@ public class UdfpsKeyguardViewController extends UdfpsAnimationViewController<Ud
     }
 
     private void updateAlpha() {
-        // fade icon on transition to showing bouncer
+        // fade icon on transitions to showing the status bar, but if mUdfpsRequested, then
+        // the keyguard is occluded by some application - so instead use the input bouncer
+        // hidden amount to determine the fade
+        float expansion = mUdfpsRequested ? mInputBouncerHiddenAmount : mStatusBarExpansion;
         int alpha = mShowingUdfpsBouncer ? 255
                 : (int) MathUtils.constrain(
-                    MathUtils.map(.5f, .9f, 0f, 255f, mInputBouncerHiddenAmount),
+                    MathUtils.map(.5f, .9f, 0f, 255f, expansion),
                     0f, 255f);
         alpha *= (1.0f - mTransitionToFullShadeProgress);
         mView.setUnpausedAlpha(alpha);
@@ -374,4 +398,23 @@ public class UdfpsKeyguardViewController extends UdfpsAnimationViewController<Ud
                     mView.updateColor();
                 }
             };
+
+    private final StatusBar.ExpansionChangedListener mStatusBarExpansionChangedListener =
+            new StatusBar.ExpansionChangedListener() {
+                @Override
+                public void onExpansionChanged(float expansion, boolean expanded) {
+                    mStatusBarExpansion = expansion;
+                    updateAlpha();
+                }
+            };
+
+    private final KeyguardStateController.Callback mKeyguardStateControllerCallback =
+            new KeyguardStateController.Callback() {
+                @Override
+                public void onLaunchTransitionFadingAwayChanged() {
+                    mLaunchTransitionFadingAway =
+                            mKeyguardStateController.isLaunchTransitionFadingAway();
+                    updatePauseAuth();
+                }
+            };
 }
diff --git a/packages/SystemUI/src/com/android/systemui/statusbar/policy/KeyguardStateController.java b/packages/SystemUI/src/com/android/systemui/statusbar/policy/KeyguardStateController.java
index 742b1ab697277..7bf1601b2fd58 100644
--- a/packages/SystemUI/src/com/android/systemui/statusbar/policy/KeyguardStateController.java
+++ b/packages/SystemUI/src/com/android/systemui/statusbar/policy/KeyguardStateController.java
@@ -251,5 +251,11 @@ public interface KeyguardStateController extends CallbackController<Callback> {
          * {@link KeyguardStateController#isFaceAuthEnabled()}.
          */
         default void onFaceAuthEnabledChanged() {}
+
+        /**
+         * Triggered when the notification panel is starting or has finished
+         * fading away on transition to an app.
+         */
+        default void onLaunchTransitionFadingAwayChanged() {}
     }
 }
diff --git a/packages/SystemUI/src/com/android/systemui/statusbar/policy/KeyguardStateControllerImpl.java b/packages/SystemUI/src/com/android/systemui/statusbar/policy/KeyguardStateControllerImpl.java
index 64750bd803d5b..f787ecf37372f 100644
--- a/packages/SystemUI/src/com/android/systemui/statusbar/policy/KeyguardStateControllerImpl.java
+++ b/packages/SystemUI/src/com/android/systemui/statusbar/policy/KeyguardStateControllerImpl.java
@@ -343,6 +343,7 @@ public class KeyguardStateControllerImpl implements KeyguardStateController, Dum
     @Override
     public void setLaunchTransitionFadingAway(boolean fadingAway) {
         mLaunchTransitionFadingAway = fadingAway;
+        new ArrayList<>(mCallbacks).forEach(Callback::onLaunchTransitionFadingAwayChanged);
     }
 
     @Override
diff --git a/packages/SystemUI/tests/src/com/android/systemui/biometrics/UdfpsKeyguardViewControllerTest.java b/packages/SystemUI/tests/src/com/android/systemui/biometrics/UdfpsKeyguardViewControllerTest.java
index 17730d9604359..decec63f2be25 100644
--- a/packages/SystemUI/tests/src/com/android/systemui/biometrics/UdfpsKeyguardViewControllerTest.java
+++ b/packages/SystemUI/tests/src/com/android/systemui/biometrics/UdfpsKeyguardViewControllerTest.java
@@ -23,6 +23,8 @@ import static org.mockito.ArgumentMatchers.anyInt;
 import static org.mockito.Mockito.atLeast;
 import static org.mockito.Mockito.eq;
 import static org.mockito.Mockito.never;
+import static org.mockito.Mockito.reset;
+import static org.mockito.Mockito.times;
 import static org.mockito.Mockito.verify;
 import static org.mockito.Mockito.when;
 
@@ -33,7 +35,6 @@ import android.testing.TestableLooper.RunWithLooper;
 import androidx.test.filters.SmallTest;
 
 import com.android.keyguard.KeyguardUpdateMonitor;
-import com.android.keyguard.KeyguardUpdateMonitorCallback;
 import com.android.systemui.SysuiTestCase;
 import com.android.systemui.dump.DumpManager;
 import com.android.systemui.keyguard.KeyguardViewMediator;
@@ -43,6 +44,7 @@ import com.android.systemui.statusbar.StatusBarState;
 import com.android.systemui.statusbar.phone.StatusBar;
 import com.android.systemui.statusbar.phone.StatusBarKeyguardViewManager;
 import com.android.systemui.statusbar.policy.ConfigurationController;
+import com.android.systemui.statusbar.policy.KeyguardStateController;
 import com.android.systemui.util.concurrency.DelayableExecutor;
 import com.android.systemui.util.time.FakeSystemClock;
 
@@ -55,6 +57,7 @@ import org.mockito.Mock;
 import org.mockito.MockitoAnnotations;
 
 import java.util.Optional;
+import java.util.List;
 
 @SmallTest
 @RunWith(AndroidTestingRunner.class)
@@ -80,6 +83,8 @@ public class UdfpsKeyguardViewControllerTest extends SysuiTestCase {
     @Mock
     private KeyguardUpdateMonitor mKeyguardUpdateMonitor;
     @Mock
+    private KeyguardStateController mKeyguardStateController;
+    @Mock
     private KeyguardViewMediator mKeyguardViewMediator;
     @Mock
     private ConfigurationController mConfigurationController;
@@ -94,14 +99,15 @@ public class UdfpsKeyguardViewControllerTest extends SysuiTestCase {
     private StatusBarStateController.StateListener mStatusBarStateListener;
 
     @Captor private ArgumentCaptor<StatusBar.ExpansionChangedListener> mExpansionListenerCaptor;
-    private StatusBar.ExpansionChangedListener mExpansionListener;
+    private List<StatusBar.ExpansionChangedListener> mExpansionListeners;
 
     @Captor private ArgumentCaptor<StatusBarKeyguardViewManager.AlternateAuthInterceptor>
             mAltAuthInterceptorCaptor;
     private StatusBarKeyguardViewManager.AlternateAuthInterceptor mAltAuthInterceptor;
 
-    @Captor private ArgumentCaptor<KeyguardUpdateMonitorCallback> mUpdateMonitorCallbackCaptor;
-    private KeyguardUpdateMonitorCallback mKeyguardUpdateMonitorCallback;
+    @Captor private ArgumentCaptor<KeyguardStateController.Callback>
+            mKeyguardStateControllerCallbackCaptor;
+    private KeyguardStateController.Callback mKeyguardStateControllerCallback;
 
     @Before
     public void setUp() {
@@ -121,13 +127,14 @@ public class UdfpsKeyguardViewControllerTest extends SysuiTestCase {
                 mLockscreenShadeTransitionController,
                 mConfigurationController,
                 mSystemClock,
+                mKeyguardStateController,
                 mUdfpsController);
     }
 
     @Test
     public void testRegistersExpansionChangedListenerOnAttached() {
         mController.onViewAttached();
-        captureExpansionListener();
+        captureExpansionListeners();
     }
 
     @Test
@@ -156,11 +163,15 @@ public class UdfpsKeyguardViewControllerTest extends SysuiTestCase {
     public void testListenersUnregisteredOnDetached() {
         mController.onViewAttached();
         captureStatusBarStateListeners();
-        captureExpansionListener();
+        captureExpansionListeners();
+        captureKeyguardStateControllerCallback();
         mController.onViewDetached();
 
         verify(mStatusBarStateController).removeCallback(mStatusBarStateListener);
-        verify(mStatusBar).removeExpansionChangedListener(mExpansionListener);
+        for (StatusBar.ExpansionChangedListener listener : mExpansionListeners) {
+            verify(mStatusBar).removeExpansionChangedListener(listener);
+        }
+        verify(mKeyguardStateController).removeCallback(mKeyguardStateControllerCallback);
     }
 
     @Test
@@ -179,7 +190,6 @@ public class UdfpsKeyguardViewControllerTest extends SysuiTestCase {
     public void testShouldPauseAuthBouncerShowing() {
         mController.onViewAttached();
         captureStatusBarStateListeners();
-        captureExpansionListener();
 
         sendStatusBarStateChanged(StatusBarState.KEYGUARD);
 
@@ -190,18 +200,32 @@ public class UdfpsKeyguardViewControllerTest extends SysuiTestCase {
     public void testShouldNotPauseAuthOnKeyguard() {
         mController.onViewAttached();
         captureStatusBarStateListeners();
-        captureExpansionListener();
 
         sendStatusBarStateChanged(StatusBarState.KEYGUARD);
 
         assertFalse(mController.shouldPauseAuth());
     }
 
+    @Test
+    public void testShouldPauseAuthIsLaunchTransitionFadingAway() {
+        // GIVEN view is attached and we're on the keyguard (see testShouldNotPauseAuthOnKeyguard)
+        mController.onViewAttached();
+        captureStatusBarStateListeners();
+        sendStatusBarStateChanged(StatusBarState.KEYGUARD);
+
+        // WHEN isLaunchTransitionFadingAway=true
+        captureKeyguardStateControllerCallback();
+        when(mKeyguardStateController.isLaunchTransitionFadingAway()).thenReturn(true);
+        mKeyguardStateControllerCallback.onLaunchTransitionFadingAwayChanged();
+
+        // THEN pause auth
+        assertTrue(mController.shouldPauseAuth());
+    }
+
     @Test
     public void testShouldPauseAuthOnShadeLocked() {
         mController.onViewAttached();
         captureStatusBarStateListeners();
-        captureExpansionListener();
 
         sendStatusBarStateChanged(StatusBarState.SHADE_LOCKED);
 
@@ -212,7 +236,6 @@ public class UdfpsKeyguardViewControllerTest extends SysuiTestCase {
     public void testShouldPauseAuthOnShade() {
         mController.onViewAttached();
         captureStatusBarStateListeners();
-        captureExpansionListener();
 
         // WHEN not on keyguard yet (shade = home)
         sendStatusBarStateChanged(StatusBarState.SHADE);
@@ -225,7 +248,6 @@ public class UdfpsKeyguardViewControllerTest extends SysuiTestCase {
     public void testShouldPauseAuthAnimatingScreenOffFromShade() {
         mController.onViewAttached();
         captureStatusBarStateListeners();
-        captureExpansionListener();
 
         // WHEN transitioning from home/shade => keyguard + animating screen off
         mStatusBarStateListener.onStatePreChange(StatusBarState.SHADE, StatusBarState.KEYGUARD);
@@ -239,7 +261,6 @@ public class UdfpsKeyguardViewControllerTest extends SysuiTestCase {
     public void testDoNotPauseAuthAnimatingScreenOffFromLS() {
         mController.onViewAttached();
         captureStatusBarStateListeners();
-        captureExpansionListener();
 
         // WHEN animating screen off transition from LS => AOD
         sendStatusBarStateChanged(StatusBarState.KEYGUARD);
@@ -333,6 +354,21 @@ public class UdfpsKeyguardViewControllerTest extends SysuiTestCase {
         verify(mStatusBarKeyguardViewManager).resetAlternateAuth(anyBoolean());
     }
 
+    @Test
+    public void testFadeInWithStatusBarExpansion() {
+        // GIVEN view is attached
+        mController.onViewAttached();
+        captureExpansionListeners();
+        captureKeyguardStateControllerCallback();
+        reset(mView);
+
+        // WHEN status bar expansion is 0
+        updateStatusBarExpansion(0, true);
+
+        // THEN alpha is 0
+        verify(mView).setUnpausedAlpha(0);
+    }
+
     private void sendStatusBarStateChanged(int statusBarState) {
         mStatusBarStateListener.onStateChanged(statusBarState);
     }
@@ -342,9 +378,18 @@ public class UdfpsKeyguardViewControllerTest extends SysuiTestCase {
         mStatusBarStateListener = mStateListenerCaptor.getValue();
     }
 
-    private void captureExpansionListener() {
-        verify(mStatusBar).addExpansionChangedListener(mExpansionListenerCaptor.capture());
-        mExpansionListener = mExpansionListenerCaptor.getValue();
+    private void captureExpansionListeners() {
+        verify(mStatusBar, times(2))
+                .addExpansionChangedListener(mExpansionListenerCaptor.capture());
+        // first (index=0) is from super class, UdfpsAnimationViewController.
+        // second (index=1) is from UdfpsKeyguardViewController
+        mExpansionListeners = mExpansionListenerCaptor.getAllValues();
+    }
+
+    private void updateStatusBarExpansion(float expansion, boolean expanded) {
+        for (StatusBar.ExpansionChangedListener listener : mExpansionListeners) {
+            listener.onExpansionChanged(expansion, expanded);
+        }
     }
 
     private void captureAltAuthInterceptor() {
@@ -353,8 +398,11 @@ public class UdfpsKeyguardViewControllerTest extends SysuiTestCase {
         mAltAuthInterceptor = mAltAuthInterceptorCaptor.getValue();
     }
 
-    private void captureKeyguardUpdateMonitorCallback() {
-        verify(mKeyguardUpdateMonitor).registerCallback(mUpdateMonitorCallbackCaptor.capture());
-        mKeyguardUpdateMonitorCallback = mUpdateMonitorCallbackCaptor.getValue();
+
+
+    private void captureKeyguardStateControllerCallback() {
+        verify(mKeyguardStateController).addCallback(
+                mKeyguardStateControllerCallbackCaptor.capture());
+        mKeyguardStateControllerCallback = mKeyguardStateControllerCallbackCaptor.getValue();
     }
 }