diff --git a/packages/SystemUI/src/com/android/systemui/media/taptotransfer/common/MediaTttChipControllerCommon.kt b/packages/SystemUI/src/com/android/systemui/media/taptotransfer/common/MediaTttChipControllerCommon.kt
index 79e1fb9a60f63..a86421158eb2b 100644
--- a/packages/SystemUI/src/com/android/systemui/media/taptotransfer/common/MediaTttChipControllerCommon.kt
+++ b/packages/SystemUI/src/com/android/systemui/media/taptotransfer/common/MediaTttChipControllerCommon.kt
@@ -112,12 +112,16 @@ abstract class MediaTttChipControllerCommon<T : ChipInfoCommon>(
             // The chip is new, so set up all our callbacks and inflate the view
             configurationController.addCallback(displayScaleListener)
             tapGestureDetector.addOnGestureDetectedCallback(TAG, this::onScreenTapped)
-            // Wake the screen so the user will see the chip
-            powerManager.wakeUp(
-                SystemClock.uptimeMillis(),
-                PowerManager.WAKE_REASON_APPLICATION,
-                "com.android.systemui:media_tap_to_transfer_activated"
-            )
+            // Wake the screen if necessary so the user will see the chip. (Per b/239426653, we want
+            // the chip to show over the dream state, so we should only wake up if the screen is
+            // completely off.)
+            if (!powerManager.isScreenOn) {
+                powerManager.wakeUp(
+                        SystemClock.uptimeMillis(),
+                        PowerManager.WAKE_REASON_APPLICATION,
+                        "com.android.systemui:media_tap_to_transfer_activated"
+                )
+            }
 
             inflateAndUpdateChip(newChipInfo)
         }
diff --git a/packages/SystemUI/tests/src/com/android/systemui/media/taptotransfer/common/MediaTttChipControllerCommonTest.kt b/packages/SystemUI/tests/src/com/android/systemui/media/taptotransfer/common/MediaTttChipControllerCommonTest.kt
index 55397868125bb..7337764b9ec25 100644
--- a/packages/SystemUI/tests/src/com/android/systemui/media/taptotransfer/common/MediaTttChipControllerCommonTest.kt
+++ b/packages/SystemUI/tests/src/com/android/systemui/media/taptotransfer/common/MediaTttChipControllerCommonTest.kt
@@ -115,14 +115,31 @@ class MediaTttChipControllerCommonTest : SysuiTestCase() {
     }
 
     @Test
-    fun displayChip_chipAddedAndGestureDetectionStartedAndScreenOn() {
+    fun displayChip_chipAddedAndGestureDetectionStarted() {
         controllerCommon.displayChip(getState())
 
         verify(windowManager).addView(any(), any())
         verify(tapGestureDetector).addOnGestureDetectedCallback(any(), any())
+    }
+
+    @Test
+    fun displayChip_screenOff_screenWakes() {
+        whenever(powerManager.isScreenOn).thenReturn(false)
+
+        controllerCommon.displayChip(getState())
+
         verify(powerManager).wakeUp(any(), any(), any())
     }
 
+    @Test
+    fun displayChip_screenAlreadyOn_screenNotWoken() {
+        whenever(powerManager.isScreenOn).thenReturn(true)
+
+        controllerCommon.displayChip(getState())
+
+        verify(powerManager, never()).wakeUp(any(), any(), any())
+    }
+
     @Test
     fun displayChip_twice_chipAndGestureDetectionNotAddedTwice() {
         controllerCommon.displayChip(getState())