diff --git a/services/core/java/com/android/server/compat/overrides/AppCompatOverridesService.java b/services/core/java/com/android/server/compat/overrides/AppCompatOverridesService.java
index 880dbf6421ddd..fe002ce00d324 100644
--- a/services/core/java/com/android/server/compat/overrides/AppCompatOverridesService.java
+++ b/services/core/java/com/android/server/compat/overrides/AppCompatOverridesService.java
@@ -25,6 +25,7 @@ import static android.provider.DeviceConfig.NAMESPACE_APP_COMPAT_OVERRIDES;
 import static com.android.server.compat.overrides.AppCompatOverridesParser.FLAG_OWNED_CHANGE_IDS;
 import static com.android.server.compat.overrides.AppCompatOverridesParser.FLAG_REMOVE_OVERRIDES;
 
+import static java.util.Collections.emptyMap;
 import static java.util.Collections.emptySet;
 
 import android.annotation.NonNull;
@@ -157,17 +158,17 @@ public final class AppCompatOverridesService {
         Map<String, CompatibilityOverridesToRemoveConfig> packageNameToOverridesToRemove =
                 new ArrayMap<>();
         for (String packageName : packageNames) {
-            Long versionCode = getVersionCodeOrNull(packageName);
-            if (versionCode == null) {
-                // Package isn't installed yet.
-                continue;
-            }
-
             Set<Long> changeIdsToSkip = packageToChangeIdsToSkip.getOrDefault(packageName,
                     emptySet());
-            Map<Long, PackageOverride> overridesToAdd = mOverridesParser.parsePackageOverrides(
-                    properties.getString(packageName, /* defaultValue= */ ""), packageName,
-                    versionCode, changeIdsToSkip);
+
+            Map<Long, PackageOverride> overridesToAdd = emptyMap();
+            Long versionCode = getVersionCodeOrNull(packageName);
+            if (versionCode != null) {
+                // Only if package installed add overrides, otherwise just remove.
+                overridesToAdd = mOverridesParser.parsePackageOverrides(
+                        properties.getString(packageName, /* defaultValue= */ ""), packageName,
+                        versionCode, changeIdsToSkip);
+            }
             if (!overridesToAdd.isEmpty()) {
                 packageNameToOverridesToAdd.put(packageName,
                         new CompatibilityOverrideConfig(overridesToAdd));
diff --git a/services/tests/mockingservicestests/src/com/android/server/compat/overrides/AppCompatOverridesServiceTest.java b/services/tests/mockingservicestests/src/com/android/server/compat/overrides/AppCompatOverridesServiceTest.java
index edf68166bb7d1..1a5888e7dd76e 100644
--- a/services/tests/mockingservicestests/src/com/android/server/compat/overrides/AppCompatOverridesServiceTest.java
+++ b/services/tests/mockingservicestests/src/com/android/server/compat/overrides/AppCompatOverridesServiceTest.java
@@ -183,7 +183,8 @@ public class AppCompatOverridesServiceTest {
                 mOverridesToRemoveByPackageConfigCaptor.getValue().packageNameToOverridesToRemove;
         Map<Long, PackageOverride> addedOverrides;
         assertThat(packageNameToAddedOverrides.keySet()).containsExactly(PACKAGE_1, PACKAGE_3);
-        assertThat(packageNameToRemovedOverrides.keySet()).containsExactly(PACKAGE_3, PACKAGE_4);
+        assertThat(packageNameToRemovedOverrides.keySet()).containsExactly(PACKAGE_2, PACKAGE_3,
+                PACKAGE_4);
         // Package 1
         addedOverrides = packageNameToAddedOverrides.get(PACKAGE_1).overrides;
         assertThat(addedOverrides).hasSize(3);
@@ -193,6 +194,9 @@ public class AppCompatOverridesServiceTest {
                 new PackageOverride.Builder().setMinVersionCode(2).setEnabled(true).build());
         assertThat(addedOverrides.get(789L)).isEqualTo(
                 new PackageOverride.Builder().setEnabled(false).build());
+        // Package 2
+        assertThat(packageNameToRemovedOverrides.get(PACKAGE_2).changeIds).containsExactly(123L,
+                456L, 789L);
         // Package 3
         addedOverrides = packageNameToAddedOverrides.get(PACKAGE_3).overrides;
         assertThat(addedOverrides).hasSize(1);