diff --git a/core/java/android/app/ActivityOptions.java b/core/java/android/app/ActivityOptions.java
index d6441a2b629b8..4fc3254ed1a3a 100644
--- a/core/java/android/app/ActivityOptions.java
+++ b/core/java/android/app/ActivityOptions.java
@@ -1149,7 +1149,6 @@ public class ActivityOptions extends ComponentOptions {
         opts.mLaunchIntoPipParams = new PictureInPictureParams.Builder(pictureInPictureParams)
                 .setIsLaunchIntoPip(true)
                 .build();
-        opts.mLaunchBounds = new Rect(pictureInPictureParams.getSourceRectHint());
         return opts;
     }
 
diff --git a/services/core/java/com/android/server/wm/ActivityRecord.java b/services/core/java/com/android/server/wm/ActivityRecord.java
index 10bd4eef4f7ed..55e6e29bcd1e9 100644
--- a/services/core/java/com/android/server/wm/ActivityRecord.java
+++ b/services/core/java/com/android/server/wm/ActivityRecord.java
@@ -1993,6 +1993,9 @@ final class ActivityRecord extends WindowToken implements WindowManagerService.A
 
             if (options.getLaunchIntoPipParams() != null) {
                 pictureInPictureArgs = options.getLaunchIntoPipParams();
+                if (sourceRecord != null) {
+                    adjustPictureInPictureParamsIfNeeded(sourceRecord.getBounds());
+                }
             }
 
             mOverrideTaskTransition = options.getOverrideTaskTransition();
@@ -9764,6 +9767,7 @@ final class ActivityRecord extends WindowToken implements WindowManagerService.A
 
     void setPictureInPictureParams(PictureInPictureParams p) {
         pictureInPictureArgs.copyOnlySet(p);
+        adjustPictureInPictureParamsIfNeeded(getBounds());
         getTask().getRootTask().onPictureInPictureParamsChanged();
     }
 
@@ -9815,6 +9819,18 @@ final class ActivityRecord extends WindowToken implements WindowManagerService.A
         return new Point(windowLayout.minWidth, windowLayout.minHeight);
     }
 
+    /**
+     * Adjust the source rect hint in {@link #pictureInPictureArgs} by window bounds since
+     * it is relative to its root view (see also b/235599028).
+     * It is caller's responsibility to make sure this is called exactly once when we update
+     * {@link #pictureInPictureArgs} to avoid double offset.
+     */
+    private void adjustPictureInPictureParamsIfNeeded(Rect windowBounds) {
+        if (pictureInPictureArgs != null && pictureInPictureArgs.hasSourceBoundsHint()) {
+            pictureInPictureArgs.getSourceRectHint().offset(windowBounds.left, windowBounds.top);
+        }
+    }
+
     static class Builder {
         private final ActivityTaskManagerService mAtmService;
         private WindowProcessController mCallerApp;
diff --git a/services/core/java/com/android/server/wm/RootWindowContainer.java b/services/core/java/com/android/server/wm/RootWindowContainer.java
index db730e0cb3689..dfce40b874c05 100644
--- a/services/core/java/com/android/server/wm/RootWindowContainer.java
+++ b/services/core/java/com/android/server/wm/RootWindowContainer.java
@@ -2118,7 +2118,7 @@ class RootWindowContainer extends WindowContainer<DisplayContent>
                 // entering content-pip animation.
                 mWindowManager.mTaskSnapshotController.recordTaskSnapshot(
                         task, false /* allowSnapshotHome */);
-                rootTask.setBounds(r.getOptions().getLaunchBounds());
+                rootTask.setBounds(r.pictureInPictureArgs.getSourceRectHint());
             }
             rootTask.setDeferTaskAppear(false);