diff --git a/services/core/java/com/android/server/pm/PackageInstallerService.java b/services/core/java/com/android/server/pm/PackageInstallerService.java
index 34019c7ac15a2..4a799b5f86a9e 100644
--- a/services/core/java/com/android/server/pm/PackageInstallerService.java
+++ b/services/core/java/com/android/server/pm/PackageInstallerService.java
@@ -320,6 +320,10 @@ public class PackageInstallerService extends IPackageInstaller.Stub implements
         final ArraySet<File> unclaimedStages = newArraySet(
                 stagingDir.listFiles(sStageFilter));
 
+        // We also need to clean up orphaned staging directory for staged sessions
+        final File stagedSessionStagingDir = Environment.getDataStagingDirectory(volumeUuid);
+        unclaimedStages.addAll(newArraySet(stagedSessionStagingDir.listFiles()));
+
         // Ignore stages claimed by active sessions
         for (int i = 0; i < mSessions.size(); i++) {
             final PackageInstallerSession session = mSessions.valueAt(i);
diff --git a/services/core/java/com/android/server/pm/PackageInstallerSession.java b/services/core/java/com/android/server/pm/PackageInstallerSession.java
index ab5b9d10b7a5f..ef947d8c96351 100644
--- a/services/core/java/com/android/server/pm/PackageInstallerSession.java
+++ b/services/core/java/com/android/server/pm/PackageInstallerSession.java
@@ -1678,6 +1678,10 @@ public class PackageInstallerSession extends IPackageInstallerSession.Stub {
         destroyInternal();
         // Dispatch message to remove session from PackageInstallerService.
         dispatchSessionFinished(error, detailMessage, null);
+        // TODO(b/173194203): clean up staged session in destroyInternal() call instead
+        if (isStaged() && stageDir != null) {
+            cleanStageDir();
+        }
     }
 
     private void onSessionVerificationFailure(int error, String msg) {
diff --git a/tests/StagedInstallTest/app/src/com/android/tests/stagedinstallinternal/StagedInstallInternalTest.java b/tests/StagedInstallTest/app/src/com/android/tests/stagedinstallinternal/StagedInstallInternalTest.java
index e5411dee7805a..2a601e5cb86dc 100644
--- a/tests/StagedInstallTest/app/src/com/android/tests/stagedinstallinternal/StagedInstallInternalTest.java
+++ b/tests/StagedInstallTest/app/src/com/android/tests/stagedinstallinternal/StagedInstallInternalTest.java
@@ -127,6 +127,19 @@ public class StagedInstallInternalTest {
         InstallUtils.getPackageInstaller().abandonSession(id4);
     }
 
+    @Test
+    public void testStagedInstallationShouldCleanUpOnValidationFailure() throws Exception {
+        InstallUtils.commitExpectingFailure(AssertionError.class, "INSTALL_FAILED_INVALID_APK",
+                Install.single(TestApp.AIncompleteSplit).setStaged());
+    }
+
+    @Test
+    public void testStagedInstallationShouldCleanUpOnValidationFailureMultiPackage()
+            throws Exception {
+        InstallUtils.commitExpectingFailure(AssertionError.class, "INSTALL_FAILED_INVALID_APK",
+                Install.multi(TestApp.AIncompleteSplit, TestApp.B1, TestApp.Apex1).setStaged());
+    }
+
     private static void assertSessionReady(int sessionId) {
         assertSessionState(sessionId,
                 (session) -> assertThat(session.isStagedSessionReady()).isTrue());
diff --git a/tests/StagedInstallTest/src/com/android/tests/stagedinstallinternal/host/StagedInstallInternalTest.java b/tests/StagedInstallTest/src/com/android/tests/stagedinstallinternal/host/StagedInstallInternalTest.java
index 702f8719ff243..27ccbc78cf96f 100644
--- a/tests/StagedInstallTest/src/com/android/tests/stagedinstallinternal/host/StagedInstallInternalTest.java
+++ b/tests/StagedInstallTest/src/com/android/tests/stagedinstallinternal/host/StagedInstallInternalTest.java
@@ -30,6 +30,7 @@ import com.android.compatibility.common.tradefed.build.CompatibilityBuildHelper;
 import com.android.ddmlib.Log;
 import com.android.tests.rollback.host.AbandonSessionsRule;
 import com.android.tests.util.ModuleTestUtils;
+import com.android.tradefed.device.DeviceNotAvailableException;
 import com.android.tradefed.testtype.DeviceJUnit4ClassRunner;
 import com.android.tradefed.testtype.junit4.BaseHostJUnit4Test;
 import com.android.tradefed.util.CommandResult;
@@ -250,9 +251,40 @@ public class StagedInstallInternalTest extends BaseHostJUnit4Test {
         assertThat(after).isEqualTo(before);
     }
 
-    private List<String> getStagingDirectories() {
+    @Test
+    public void testStagedInstallationShouldCleanUpOnValidationFailure() throws Exception {
+        List<String> before = getStagingDirectories();
+        runPhase("testStagedInstallationShouldCleanUpOnValidationFailure");
+        List<String> after = getStagingDirectories();
+        assertThat(after).isEqualTo(before);
+    }
+
+    @Test
+    public void testStagedInstallationShouldCleanUpOnValidationFailureMultiPackage()
+            throws Exception {
+        List<String> before = getStagingDirectories();
+        runPhase("testStagedInstallationShouldCleanUpOnValidationFailureMultiPackage");
+        List<String> after = getStagingDirectories();
+        assertThat(after).isEqualTo(before);
+    }
+
+    @Test
+    public void testOrphanedStagingDirectoryGetsCleanedUpOnReboot() throws Exception {
+        //create random directories in /data/app-staging folder
+        getDevice().enableAdbRoot();
+        getDevice().executeShellCommand("mkdir /data/app-staging/session_123");
+        getDevice().executeShellCommand("mkdir /data/app-staging/random_name");
+        getDevice().disableAdbRoot();
+
+        assertThat(getStagingDirectories()).isNotEmpty();
+        getDevice().reboot();
+        assertThat(getStagingDirectories()).isEmpty();
+    }
+
+    private List<String> getStagingDirectories() throws DeviceNotAvailableException {
         String baseDir = "/data/app-staging";
         try {
+            getDevice().enableAdbRoot();
             return getDevice().getFileEntry(baseDir).getChildren(false)
                     .stream().filter(entry -> entry.getName().matches("session_\\d+"))
                     .map(entry -> entry.getName())
@@ -260,6 +292,8 @@ public class StagedInstallInternalTest extends BaseHostJUnit4Test {
         } catch (Exception e) {
             // Return an empty list if any error
             return Collections.EMPTY_LIST;
+        } finally {
+            getDevice().disableAdbRoot();
         }
     }