diff --git a/services/core/java/com/android/server/wm/DisplayContent.java b/services/core/java/com/android/server/wm/DisplayContent.java
index 697948a1d961e..6a6d90be4d11c 100644
--- a/services/core/java/com/android/server/wm/DisplayContent.java
+++ b/services/core/java/com/android/server/wm/DisplayContent.java
@@ -5162,7 +5162,7 @@ class DisplayContent extends WindowContainer<DisplayContent.DisplayChildWindowCo
         final int[] remainingLeftRight =
                 {mSystemGestureExclusionLimit, mSystemGestureExclusionLimit};
 
-        // Traverse all windows bottom up to assemble the gesture exclusion rects.
+        // Traverse all windows top down to assemble the gesture exclusion rects.
         // For each window, we only take the rects that fall within its touchable region.
         forAllWindows(w -> {
             if (w.cantReceiveTouchInput() || !w.isVisible()
@@ -5170,12 +5170,10 @@ class DisplayContent extends WindowContainer<DisplayContent.DisplayChildWindowCo
                     || unhandled.isEmpty()) {
                 return;
             }
-            final boolean modal =
-                    (w.mAttrs.flags & (FLAG_NOT_TOUCH_MODAL | FLAG_NOT_FOCUSABLE)) == 0;
 
             // Get the touchable region of the window, and intersect with where the screen is still
             // touchable, i.e. touchable regions on top are not covering it yet.
-            w.getTouchableRegion(touchableRegion);
+            w.getEffectiveTouchableRegion(touchableRegion);
             touchableRegion.op(unhandled, Op.INTERSECT);
 
             if (w.isImplicitlyExcludingAllSystemGestures()) {
diff --git a/services/core/java/com/android/server/wm/WindowState.java b/services/core/java/com/android/server/wm/WindowState.java
index 81e458496385b..189bff06f7fcd 100644
--- a/services/core/java/com/android/server/wm/WindowState.java
+++ b/services/core/java/com/android/server/wm/WindowState.java
@@ -3030,6 +3030,25 @@ class WindowState extends WindowContainer<WindowState> implements WindowManagerP
         subtractTouchExcludeRegionIfNeeded(outRegion);
     }
 
+    /**
+     * Get the effective touchable region in global coordinates.
+     *
+     * In contrast to {@link #getTouchableRegion}, this takes into account
+     * {@link WindowManager.LayoutParams#FLAG_NOT_TOUCH_MODAL touch modality.}
+     */
+    void getEffectiveTouchableRegion(Region outRegion) {
+        final boolean modal = (mAttrs.flags & (FLAG_NOT_TOUCH_MODAL | FLAG_NOT_FOCUSABLE)) == 0;
+        final DisplayContent dc = getDisplayContent();
+
+        if (modal && dc != null) {
+            outRegion.set(dc.getBounds());
+            cropRegionToStackBoundsIfNeeded(outRegion);
+            subtractTouchExcludeRegionIfNeeded(outRegion);
+        } else {
+            getTouchableRegion(outRegion);
+        }
+    }
+
     private void setTouchableRegionCropIfNeeded(InputWindowHandle handle) {
         final Task task = getTask();
         if (task == null || !task.cropWindowsToStackBounds()) {
diff --git a/services/tests/wmtests/src/com/android/server/wm/DisplayContentTests.java b/services/tests/wmtests/src/com/android/server/wm/DisplayContentTests.java
index f2e7dc6fecae0..7cd097ebdc2b2 100644
--- a/services/tests/wmtests/src/com/android/server/wm/DisplayContentTests.java
+++ b/services/tests/wmtests/src/com/android/server/wm/DisplayContentTests.java
@@ -793,6 +793,30 @@ public class DisplayContentTests extends WindowTestsBase {
         assertEquals(expected, dc.calculateSystemGestureExclusion());
     }
 
+    @Test
+    public void testCalculateSystemGestureExclusion_modal() throws Exception {
+        final DisplayContent dc = createNewDisplay();
+        final WindowState win = createWindow(null, TYPE_BASE_APPLICATION, dc, "base");
+        win.getAttrs().flags |= FLAG_LAYOUT_IN_SCREEN | FLAG_LAYOUT_INSET_DECOR;
+        win.setSystemGestureExclusion(Collections.singletonList(new Rect(0, 0, 1000, 1000)));
+
+        final WindowState win2 = createWindow(null, TYPE_APPLICATION, dc, "modal");
+        win2.getAttrs().flags |= FLAG_LAYOUT_IN_SCREEN | FLAG_LAYOUT_INSET_DECOR;
+        win2.getAttrs().privateFlags |= PRIVATE_FLAG_NO_MOVE_ANIMATION;
+        win2.getAttrs().width = 10;
+        win2.getAttrs().height = 10;
+        win2.setSystemGestureExclusion(Collections.emptyList());
+
+        dc.setLayoutNeeded();
+        dc.performLayout(true /* initial */, false /* updateImeWindows */);
+
+        win.setHasSurface(true);
+        win2.setHasSurface(true);
+
+        final Region expected = Region.obtain();
+        assertEquals(expected, dc.calculateSystemGestureExclusion());
+    }
+
     @Test
     public void testCalculateSystemGestureExclusion_immersiveStickyLegacyWindow() throws Exception {
         synchronized (mWm.mGlobalLock) {