diff --git a/services/core/java/com/android/server/wm/DisplayPolicy.java b/services/core/java/com/android/server/wm/DisplayPolicy.java
index 7badc7a437743..bbfb3c5556575 100644
--- a/services/core/java/com/android/server/wm/DisplayPolicy.java
+++ b/services/core/java/com/android/server/wm/DisplayPolicy.java
@@ -1494,8 +1494,6 @@ public class DisplayPolicy {
         }
 
         sTmpRect.setEmpty();
-        sTmpDockedFrame.set(displayFrames.mDock);
-
         final int displayId = displayFrames.mDisplayId;
         final Rect dockFrame = displayFrames.mDock;
         final int displayHeight = displayFrames.mDisplayHeight;
@@ -1508,11 +1506,13 @@ public class DisplayPolicy {
                 continue;
             }
 
-            w.getWindowFrames().setFrames(sTmpDockedFrame /* parentFrame */,
-                    sTmpDockedFrame /* displayFrame */, sTmpDockedFrame /* overscanFrame */,
-                    sTmpDockedFrame /* contentFrame */, sTmpDockedFrame /* visibleFrame */,
-                    sTmpRect /* decorFrame */, sTmpDockedFrame /* stableFrame */,
-                    sTmpDockedFrame /* outsetFrame */);
+            w.getWindowFrames().setFrames(displayFrames.mUnrestricted /* parentFrame */,
+                    displayFrames.mUnrestricted /* displayFrame */,
+                    displayFrames.mUnrestricted /* overscanFrame */,
+                    displayFrames.mUnrestricted /* contentFrame */,
+                    displayFrames.mUnrestricted /* visibleFrame */, sTmpRect /* decorFrame */,
+                    displayFrames.mUnrestricted /* stableFrame */,
+                    displayFrames.mUnrestricted /* outsetFrame */);
             w.getWindowFrames().setDisplayCutout(displayFrames.mDisplayCutout);
             w.computeFrameLw();
             final Rect frame = w.getFrameLw();
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 4a87aa46db581..de184b84857bc 100644
--- a/services/tests/wmtests/src/com/android/server/wm/DisplayPolicyLayoutTests.java
+++ b/services/tests/wmtests/src/com/android/server/wm/DisplayPolicyLayoutTests.java
@@ -16,6 +16,10 @@
 
 package com.android.server.wm;
 
+import static android.view.Gravity.BOTTOM;
+import static android.view.Gravity.LEFT;
+import static android.view.Gravity.RIGHT;
+import static android.view.Gravity.TOP;
 import static android.view.Surface.ROTATION_0;
 import static android.view.Surface.ROTATION_270;
 import static android.view.Surface.ROTATION_90;
@@ -26,9 +30,11 @@ import static android.view.ViewGroup.LayoutParams.MATCH_PARENT;
 import static android.view.WindowManager.LayoutParams.FLAG_DRAWS_SYSTEM_BAR_BACKGROUNDS;
 import static android.view.WindowManager.LayoutParams.FLAG_LAYOUT_INSET_DECOR;
 import static android.view.WindowManager.LayoutParams.FLAG_LAYOUT_IN_SCREEN;
+import static android.view.WindowManager.LayoutParams.FLAG_NOT_FOCUSABLE;
 import static android.view.WindowManager.LayoutParams.LAYOUT_IN_DISPLAY_CUTOUT_MODE_ALWAYS;
 import static android.view.WindowManager.LayoutParams.LAYOUT_IN_DISPLAY_CUTOUT_MODE_NEVER;
 import static android.view.WindowManager.LayoutParams.PRIVATE_FLAG_FORCE_DRAW_BAR_BACKGROUNDS;
+import static android.view.WindowManager.LayoutParams.PRIVATE_FLAG_IS_SCREEN_DECOR;
 import static android.view.WindowManager.LayoutParams.SOFT_INPUT_ADJUST_NOTHING;
 import static android.view.WindowManager.LayoutParams.SOFT_INPUT_ADJUST_RESIZE;
 import static android.view.WindowManager.LayoutParams.TYPE_APPLICATION;
@@ -66,6 +72,7 @@ public class DisplayPolicyLayoutTests extends DisplayPolicyTestsBase {
     private WindowState mWindow;
     private int mRotation = ROTATION_0;
     private boolean mHasDisplayCutout;
+    private static final int DECOR_WINDOW_INSET = 50;
 
     @Before
     public void setUp() throws Exception {
@@ -520,6 +527,58 @@ public class DisplayPolicyLayoutTests extends DisplayPolicyTestsBase {
         }
     }
 
+    @Test
+    public void testScreenDecorWindows() {
+        synchronized (mWm.mGlobalLock) {
+            final WindowState decorWindow = createWindow(null, TYPE_APPLICATION_OVERLAY,
+                    "decorWindow");
+            decorWindow.mAttrs.flags |= FLAG_NOT_FOCUSABLE;
+            decorWindow.mAttrs.privateFlags |= PRIVATE_FLAG_IS_SCREEN_DECOR;
+            addWindow(decorWindow);
+            addWindow(mWindow);
+
+            // Decor on top
+            updateDecorWindow(decorWindow, MATCH_PARENT, DECOR_WINDOW_INSET, TOP);
+            mDisplayPolicy.beginLayoutLw(mFrames, 0 /* UI mode */);
+            mDisplayPolicy.layoutWindowLw(mWindow, null, mFrames);
+            assertInsetByTopBottom(mWindow.getContentFrameLw(), DECOR_WINDOW_INSET, NAV_BAR_HEIGHT);
+
+            // Decor on bottom
+            updateDecorWindow(decorWindow, MATCH_PARENT, DECOR_WINDOW_INSET, BOTTOM);
+            mDisplayPolicy.beginLayoutLw(mFrames, 0 /* UI mode */);
+            mDisplayPolicy.layoutWindowLw(mWindow, null, mFrames);
+            assertInsetByTopBottom(mWindow.getContentFrameLw(), STATUS_BAR_HEIGHT,
+                    DECOR_WINDOW_INSET);
+
+            // Decor on the left
+            updateDecorWindow(decorWindow, DECOR_WINDOW_INSET, MATCH_PARENT, LEFT);
+            mDisplayPolicy.beginLayoutLw(mFrames, 0 /* UI mode */);
+            mDisplayPolicy.layoutWindowLw(mWindow, null, mFrames);
+            assertInsetBy(mWindow.getContentFrameLw(), DECOR_WINDOW_INSET, STATUS_BAR_HEIGHT, 0,
+                    NAV_BAR_HEIGHT);
+
+            // Decor on the right
+            updateDecorWindow(decorWindow, DECOR_WINDOW_INSET, MATCH_PARENT, RIGHT);
+            mDisplayPolicy.beginLayoutLw(mFrames, 0 /* UI mode */);
+            mDisplayPolicy.layoutWindowLw(mWindow, null, mFrames);
+            assertInsetBy(mWindow.getContentFrameLw(), 0, STATUS_BAR_HEIGHT, DECOR_WINDOW_INSET,
+                    NAV_BAR_HEIGHT);
+
+            // Decor not allowed as inset
+            updateDecorWindow(decorWindow, DECOR_WINDOW_INSET, DECOR_WINDOW_INSET, TOP);
+            mDisplayPolicy.beginLayoutLw(mFrames, 0 /* UI mode */);
+            mDisplayPolicy.layoutWindowLw(mWindow, null, mFrames);
+            assertInsetByTopBottom(mWindow.getContentFrameLw(), STATUS_BAR_HEIGHT, NAV_BAR_HEIGHT);
+        }
+    }
+
+    private void updateDecorWindow(WindowState decorWindow, int width, int height, int gravity) {
+        decorWindow.mAttrs.width = width;
+        decorWindow.mAttrs.height = height;
+        decorWindow.mAttrs.gravity = gravity;
+        decorWindow.setRequestedSize(width, height);
+    }
+
     /**
      * Asserts that {@code actual} is inset by the given amounts from the full display rect.
      *