diff --git a/services/core/java/com/android/server/wm/DisplayContent.java b/services/core/java/com/android/server/wm/DisplayContent.java
index fa6baa1d92257..8ae955adbcc97 100644
--- a/services/core/java/com/android/server/wm/DisplayContent.java
+++ b/services/core/java/com/android/server/wm/DisplayContent.java
@@ -5728,7 +5728,7 @@ class DisplayContent extends WindowContainer<DisplayContent.DisplayChildWindowCo
             }
 
             if (animatingRecents != null && animatingRecents == mFixedRotationLaunchingApp
-                    && animatingRecents.isVisible()) {
+                    && animatingRecents.isVisible() && animatingRecents != topRunningActivity()) {
                 // The recents activity should be going to be invisible (switch to another app or
                 // return to original top). Only clear the top launching record without finishing
                 // the transform immediately because it won't affect display orientation. And before
diff --git a/services/tests/wmtests/src/com/android/server/wm/RecentsAnimationControllerTest.java b/services/tests/wmtests/src/com/android/server/wm/RecentsAnimationControllerTest.java
index cfc50b5e95dc4..d99fd0f3d18e1 100644
--- a/services/tests/wmtests/src/com/android/server/wm/RecentsAnimationControllerTest.java
+++ b/services/tests/wmtests/src/com/android/server/wm/RecentsAnimationControllerTest.java
@@ -393,23 +393,25 @@ public class RecentsAnimationControllerTest extends WindowTestsBase {
         // Simulate giving up the swipe up gesture to keep the original activity as top.
         mController.cleanupAnimation(REORDER_MOVE_TO_ORIGINAL_POSITION);
         // The rotation transform should be cleared after updating orientation with display.
-        assertFalse(activity.hasFixedRotationTransform());
-        assertFalse(mDefaultDisplay.hasTopFixedRotationLaunchingApp());
+        assertTopFixedRotationLaunchingAppCleared(activity);
 
         // Simulate swiping up recents (home) in different rotation.
         final ActivityRecord home = mDefaultDisplay.getDefaultTaskDisplayArea().getHomeActivity();
-        mDefaultDisplay.setFixedRotationLaunchingApp(home, (mDefaultDisplay.getRotation() + 1) % 4);
-        mController = new RecentsAnimationController(mWm, mMockRunner, mAnimationCallbacks,
-                mDefaultDisplay.getDisplayId());
-        initializeRecentsAnimationController(mController, home);
-        assertTrue(home.hasFixedRotationTransform());
+        startRecentsInDifferentRotation(home);
 
+        // If the recents activity becomes the top running activity (e.g. the original top activity
+        // is either finishing or moved to back during recents animation), the display orientation
+        // will be determined by it so the fixed rotation must be cleared.
+        activity.finishing = true;
+        mController.cleanupAnimation(REORDER_MOVE_TO_ORIGINAL_POSITION);
+        assertTopFixedRotationLaunchingAppCleared(home);
+
+        startRecentsInDifferentRotation(home);
         // Assume recents activity becomes invisible for some reason (e.g. screen off).
         home.setVisible(false);
         mController.cleanupAnimation(REORDER_MOVE_TO_ORIGINAL_POSITION);
         // Although there won't be a transition finish callback, the fixed rotation must be cleared.
-        assertFalse(home.hasFixedRotationTransform());
-        assertFalse(mDefaultDisplay.hasTopFixedRotationLaunchingApp());
+        assertTopFixedRotationLaunchingAppCleared(home);
     }
 
     @Test
@@ -503,6 +505,21 @@ public class RecentsAnimationControllerTest extends WindowTestsBase {
         return homeActivity;
     }
 
+    private void startRecentsInDifferentRotation(ActivityRecord recentsActivity) {
+        final DisplayContent displayContent = recentsActivity.mDisplayContent;
+        displayContent.setFixedRotationLaunchingApp(recentsActivity,
+                (displayContent.getRotation() + 1) % 4);
+        mController = new RecentsAnimationController(mWm, mMockRunner, mAnimationCallbacks,
+                displayContent.getDisplayId());
+        initializeRecentsAnimationController(mController, recentsActivity);
+        assertTrue(recentsActivity.hasFixedRotationTransform());
+    }
+
+    private static void assertTopFixedRotationLaunchingAppCleared(ActivityRecord activity) {
+        assertFalse(activity.hasFixedRotationTransform());
+        assertFalse(activity.mDisplayContent.hasTopFixedRotationLaunchingApp());
+    }
+
     private static void initializeRecentsAnimationController(RecentsAnimationController controller,
             ActivityRecord activity) {
         controller.initialize(activity.getActivityType(), new SparseBooleanArray(), activity);