diff --git a/services/core/java/com/android/server/wm/TaskFragment.java b/services/core/java/com/android/server/wm/TaskFragment.java
index 22df8b06e398b..3d2d9f5318fc9 100644
--- a/services/core/java/com/android/server/wm/TaskFragment.java
+++ b/services/core/java/com/android/server/wm/TaskFragment.java
@@ -2062,9 +2062,15 @@ class TaskFragment extends WindowContainer<WindowContainer> {
                 final boolean inPipTransition = windowingMode == WINDOWING_MODE_PINNED
                         && !mTmpFullBounds.isEmpty() && mTmpFullBounds.equals(parentBounds);
                 if (WindowConfiguration.isFloating(windowingMode) && !inPipTransition) {
-                    // For floating tasks, calculate the smallest width from the bounds of the task
+                    // For floating tasks, calculate the smallest width from the bounds of the
+                    // task, because they should not be affected by insets.
                     inOutConfig.smallestScreenWidthDp = (int) (
                             Math.min(mTmpFullBounds.width(), mTmpFullBounds.height()) / density);
+                } else if (isEmbedded()) {
+                    // For embedded TFs, the smallest width should be updated. Otherwise, inherit
+                    // from the parent task would result in applications loaded wrong resource.
+                    inOutConfig.smallestScreenWidthDp =
+                            Math.min(inOutConfig.screenWidthDp, inOutConfig.screenHeightDp);
                 }
                 // otherwise, it will just inherit
             }