diff --git a/services/devicepolicy/java/com/android/server/devicepolicy/DevicePolicyEngine.java b/services/devicepolicy/java/com/android/server/devicepolicy/DevicePolicyEngine.java
index 1322225d8e930..ee80a056397e6 100644
--- a/services/devicepolicy/java/com/android/server/devicepolicy/DevicePolicyEngine.java
+++ b/services/devicepolicy/java/com/android/server/devicepolicy/DevicePolicyEngine.java
@@ -27,6 +27,7 @@ import static android.content.pm.UserProperties.INHERIT_DEVICE_POLICY_FROM_PAREN
 import android.Manifest;
 import android.annotation.NonNull;
 import android.annotation.Nullable;
+import android.app.AppGlobals;
 import android.app.BroadcastOptions;
 import android.app.admin.DevicePolicyIdentifiers;
 import android.app.admin.DevicePolicyManager;
@@ -45,6 +46,7 @@ import android.content.pm.UserProperties;
 import android.os.Binder;
 import android.os.Bundle;
 import android.os.Environment;
+import android.os.RemoteException;
 import android.os.UserHandle;
 import android.os.UserManager;
 import android.telephony.TelephonyManager;
@@ -1015,20 +1017,44 @@ final class DevicePolicyEngine {
     /**
      * Handles internal state related to packages getting updated.
      */
-    void handlePackageChanged(@Nullable String updatedPackage, int userId, boolean packageRemoved) {
-        if (updatedPackage == null) {
-            return;
-        }
-        if (packageRemoved) {
+    void handlePackageChanged(
+            @Nullable String updatedPackage, int userId, @Nullable String removedDpcPackage) {
+        Binder.withCleanCallingIdentity(() -> {
             Set<EnforcingAdmin> admins = getEnforcingAdminsOnUser(userId);
-            for (EnforcingAdmin admin : admins) {
-                if (admin.getPackageName().equals(updatedPackage)) {
-                    // remove policies for the uninstalled package
-                    removePoliciesForAdmin(admin);
+            if (removedDpcPackage != null) {
+                for (EnforcingAdmin admin : admins) {
+                    if (removedDpcPackage.equals(admin.getPackageName())) {
+                        removePoliciesForAdmin(admin);
+                        return;
+                    }
                 }
             }
-        } else {
-            updateDeviceAdminServiceOnPackageChanged(updatedPackage, userId);
+            for (EnforcingAdmin admin : admins) {
+                if (updatedPackage == null || updatedPackage.equals(admin.getPackageName())) {
+                    if (!isPackageInstalled(admin.getPackageName(), userId)) {
+                        Slogf.i(TAG, String.format(
+                                "Admin package %s not found for user %d, removing admin policies",
+                                admin.getPackageName(), userId));
+                        // remove policies for the uninstalled package
+                        removePoliciesForAdmin(admin);
+                        return;
+                    }
+                }
+            }
+            if (updatedPackage != null) {
+                updateDeviceAdminServiceOnPackageChanged(updatedPackage, userId);
+            }
+        });
+    }
+
+    private boolean isPackageInstalled(String packageName, int userId) {
+        try {
+            return AppGlobals.getPackageManager().getPackageInfo(
+                    packageName, 0, userId) != null;
+        } catch (RemoteException re) {
+            // Shouldn't happen.
+            Slogf.wtf(TAG, "Error handling package changes", re);
+            return true;
         }
     }
 
diff --git a/services/devicepolicy/java/com/android/server/devicepolicy/DevicePolicyManagerService.java b/services/devicepolicy/java/com/android/server/devicepolicy/DevicePolicyManagerService.java
index 8e7b00c1142de..8f7e29280e6f6 100644
--- a/services/devicepolicy/java/com/android/server/devicepolicy/DevicePolicyManagerService.java
+++ b/services/devicepolicy/java/com/android/server/devicepolicy/DevicePolicyManagerService.java
@@ -1384,6 +1384,7 @@ public class DevicePolicyManagerService extends IDevicePolicyManager.Stub {
 
     private void handlePackagesChanged(@Nullable String packageName, int userHandle) {
         boolean removedAdmin = false;
+        String removedAdminPackage = null;
         if (VERBOSE_LOG) {
             Slogf.d(LOG_TAG, "Handling package changes package " + packageName
                     + " for user " + userHandle);
@@ -1406,6 +1407,7 @@ public class DevicePolicyManagerService extends IDevicePolicyManager.Stub {
                                     "Admin package %s not found for user %d, removing active admin",
                                     packageName, userHandle));
                             removedAdmin = true;
+                            removedAdminPackage = adminPackage;
                             policy.mAdminList.remove(i);
                             policy.mAdminMap.remove(aa.info.getComponent());
                             pushActiveAdminPackagesLocked(userHandle);
@@ -1439,7 +1441,8 @@ public class DevicePolicyManagerService extends IDevicePolicyManager.Stub {
                 startOwnerService(userHandle, "package-broadcast");
             }
             if (isPolicyEngineForFinanceFlagEnabled() || isPermissionCheckFlagEnabled()) {
-                mDevicePolicyEngine.handlePackageChanged(packageName, userHandle, removedAdmin);
+                mDevicePolicyEngine.handlePackageChanged(
+                        packageName, userHandle, removedAdminPackage);
             }
             // Persist updates if the removed package was an admin or delegate.
             if (removedAdmin || removedDelegate) {
@@ -3532,7 +3535,9 @@ public class DevicePolicyManagerService extends IDevicePolicyManager.Stub {
             deleteTransferOwnershipBundleLocked(metadata.userId);
         }
         updateSystemUpdateFreezePeriodsRecord(/* saveIfChanged */ true);
-        pushUserControlDisabledPackagesLocked(metadata.userId);
+        if (!isPolicyEngineForFinanceFlagEnabled()) {
+            pushUserControlDisabledPackagesLocked(metadata.userId);
+        }
     }
 
     private void maybeLogStart() {
@@ -10104,7 +10109,9 @@ public class DevicePolicyManagerService extends IDevicePolicyManager.Stub {
         clearUserPoliciesLocked(userId);
         clearOverrideApnUnchecked();
         clearApplicationRestrictions(userId);
-        mInjector.getPackageManagerInternal().clearBlockUninstallForUser(userId);
+        if (!isPolicyEngineForFinanceFlagEnabled()) {
+            mInjector.getPackageManagerInternal().clearBlockUninstallForUser(userId);
+        }
 
         mOwners.clearDeviceOwner();
         mOwners.writeDeviceOwner();