diff --git a/packages/SystemUI/src/com/android/systemui/unfold/UnfoldTransitionWallpaperController.kt b/packages/SystemUI/src/com/android/systemui/unfold/UnfoldTransitionWallpaperController.kt
index 8dd3d6beb9c3f..4f45aafce416d 100644
--- a/packages/SystemUI/src/com/android/systemui/unfold/UnfoldTransitionWallpaperController.kt
+++ b/packages/SystemUI/src/com/android/systemui/unfold/UnfoldTransitionWallpaperController.kt
@@ -33,7 +33,14 @@ class UnfoldTransitionWallpaperController @Inject constructor(
 
     private inner class TransitionListener : TransitionProgressListener {
         override fun onTransitionProgress(progress: Float) {
-            wallpaperController.setUnfoldTransitionZoom(progress)
+            // Fully zoomed in when fully unfolded
+            wallpaperController.setUnfoldTransitionZoom(1 - progress)
+        }
+
+        override fun onTransitionFinished() {
+            // Resets wallpaper zoom-out to 0f when fully folded
+            // When fully unfolded it is set to 0f by onTransitionProgress
+            wallpaperController.setUnfoldTransitionZoom(0f)
         }
     }
 }
diff --git a/packages/SystemUI/tests/src/com/android/systemui/unfold/TestUnfoldTransitionProvider.kt b/packages/SystemUI/tests/src/com/android/systemui/unfold/TestUnfoldTransitionProvider.kt
new file mode 100644
index 0000000000000..c31640279305f
--- /dev/null
+++ b/packages/SystemUI/tests/src/com/android/systemui/unfold/TestUnfoldTransitionProvider.kt
@@ -0,0 +1,32 @@
+package com.android.systemui.unfold
+
+import com.android.systemui.unfold.UnfoldTransitionProgressProvider.TransitionProgressListener
+
+class TestUnfoldTransitionProvider : UnfoldTransitionProgressProvider, TransitionProgressListener {
+
+    private val listeners = arrayListOf<TransitionProgressListener>()
+
+    override fun destroy() {
+        listeners.clear()
+    }
+
+    override fun addCallback(listener: TransitionProgressListener) {
+        listeners.add(listener)
+    }
+
+    override fun removeCallback(listener: TransitionProgressListener) {
+        listeners.remove(listener)
+    }
+
+    override fun onTransitionStarted() {
+        listeners.forEach { it.onTransitionStarted() }
+    }
+
+    override fun onTransitionFinished() {
+        listeners.forEach { it.onTransitionFinished() }
+    }
+
+    override fun onTransitionProgress(progress: Float) {
+        listeners.forEach { it.onTransitionProgress(progress) }
+    }
+}
diff --git a/packages/SystemUI/tests/src/com/android/systemui/unfold/UnfoldTransitionWallpaperControllerTest.kt b/packages/SystemUI/tests/src/com/android/systemui/unfold/UnfoldTransitionWallpaperControllerTest.kt
new file mode 100644
index 0000000000000..6ec0251d41a58
--- /dev/null
+++ b/packages/SystemUI/tests/src/com/android/systemui/unfold/UnfoldTransitionWallpaperControllerTest.kt
@@ -0,0 +1,51 @@
+package com.android.systemui.unfold
+
+import android.testing.AndroidTestingRunner
+import androidx.test.filters.SmallTest
+import com.android.systemui.SysuiTestCase
+import com.android.systemui.util.WallpaperController
+import org.junit.Before
+import org.junit.Rule
+import org.junit.Test
+import org.junit.runner.RunWith
+import org.mockito.AdditionalMatchers.eq
+import org.mockito.Mock
+import org.mockito.Mockito.verify
+import org.mockito.junit.MockitoJUnit
+
+@RunWith(AndroidTestingRunner::class)
+@SmallTest
+class UnfoldTransitionWallpaperControllerTest : SysuiTestCase() {
+
+    @Mock
+    private lateinit var wallpaperController: WallpaperController
+
+    private val progressProvider = TestUnfoldTransitionProvider()
+
+    @JvmField
+    @Rule
+    val mockitoRule = MockitoJUnit.rule()
+
+    private lateinit var unfoldWallpaperController: UnfoldTransitionWallpaperController
+
+    @Before
+    fun setup() {
+        unfoldWallpaperController = UnfoldTransitionWallpaperController(progressProvider,
+            wallpaperController)
+        unfoldWallpaperController.init()
+    }
+
+    @Test
+    fun onTransitionProgress_zoomsIn() {
+        progressProvider.onTransitionProgress(0.8f)
+
+        verify(wallpaperController).setUnfoldTransitionZoom(eq(0.2f, 0.001f))
+    }
+
+    @Test
+    fun onTransitionFinished_resetsZoom() {
+        progressProvider.onTransitionFinished()
+
+        verify(wallpaperController).setUnfoldTransitionZoom(eq(0f, 0.001f))
+    }
+}