diff --git a/packages/SystemUI/res-keyguard/layout/keyguard_clock_switch.xml b/packages/SystemUI/res-keyguard/layout/keyguard_clock_switch.xml
index d339ae9920b4b..7816d6252267e 100644
--- a/packages/SystemUI/res-keyguard/layout/keyguard_clock_switch.xml
+++ b/packages/SystemUI/res-keyguard/layout/keyguard_clock_switch.xml
@@ -67,20 +67,18 @@
         android:layout_height="wrap_content"
         android:layout_alignParentEnd="true"
         android:layout_alignParentTop="true"
-        android:layout_marginBottom="24dp"
         android:visibility="gone">
         <com.android.keyguard.AnimatableClockView
             android:id="@+id/animatable_clock_view"
             android:layout_width="wrap_content"
             android:layout_height="wrap_content"
+            android:gravity="right"
             android:textSize="80dp"
             android:letterSpacing="0.02"
             android:lineSpacingMultiplier=".8"
             android:includeFontPadding="false"
             android:fontFamily="@font/clock"
             android:typeface="monospace"
-            android:format12Hour="hh\nmm"
-            android:format24Hour="HH\nmm"
             android:elegantTextHeight="false"
         />
     </FrameLayout>
diff --git a/packages/SystemUI/src/com/android/keyguard/AnimatableClockController.java b/packages/SystemUI/src/com/android/keyguard/AnimatableClockController.java
index 692e40124da97..3157a5a8fc5b5 100644
--- a/packages/SystemUI/src/com/android/keyguard/AnimatableClockController.java
+++ b/packages/SystemUI/src/com/android/keyguard/AnimatableClockController.java
@@ -17,6 +17,8 @@
 package com.android.keyguard;
 
 import android.graphics.Color;
+import android.graphics.Paint;
+import android.util.MathUtils;
 
 import com.android.settingslib.Utils;
 import com.android.systemui.plugins.statusbar.StatusBarStateController;
@@ -54,6 +56,11 @@ public class AnimatableClockController extends ViewController<AnimatableClockVie
         mStatusBarStateController.removeCallback(mStatusBarStateListener);
     }
 
+    float getClockTextTopPadding() {
+        Paint.FontMetrics fm = mView.getPaint().getFontMetrics();
+        return MathUtils.abs(fm.ascent - fm.top);
+    }
+
     /**
      * Updates the time for this view.
      */
diff --git a/packages/SystemUI/src/com/android/keyguard/KeyguardClockSwitch.java b/packages/SystemUI/src/com/android/keyguard/KeyguardClockSwitch.java
index 4d8fdf339e1b5..d731840c38aeb 100644
--- a/packages/SystemUI/src/com/android/keyguard/KeyguardClockSwitch.java
+++ b/packages/SystemUI/src/com/android/keyguard/KeyguardClockSwitch.java
@@ -232,6 +232,11 @@ public class KeyguardClockSwitch extends RelativeLayout {
         }
     }
 
+    float getClockTextTopPadding() {
+        Paint.FontMetrics fm = mClockView.getPaint().getFontMetrics();
+        return fm.ascent - fm.top;
+    }
+
     /**
      * Set container for big clock face appearing behind NSSL and KeyguardStatusView.
      */
diff --git a/packages/SystemUI/src/com/android/keyguard/KeyguardClockSwitchController.java b/packages/SystemUI/src/com/android/keyguard/KeyguardClockSwitchController.java
index 775ebf417a805..6c695341680f3 100644
--- a/packages/SystemUI/src/com/android/keyguard/KeyguardClockSwitchController.java
+++ b/packages/SystemUI/src/com/android/keyguard/KeyguardClockSwitchController.java
@@ -239,6 +239,15 @@ public class KeyguardClockSwitchController extends ViewController<KeyguardClockS
         mView.setFormat24Hour(Patterns.sClockView24);
     }
 
+    float getClockTextTopPadding() {
+        if (mLockScreenMode == KeyguardUpdateMonitor.LOCK_SCREEN_MODE_LAYOUT_1
+                && mNewLockScreenClockViewController != null) {
+            return mNewLockScreenClockViewController.getClockTextTopPadding();
+        }
+
+        return mView.getClockTextTopPadding();
+    }
+
     private void updateAodIcons() {
         NotificationIconContainer nic = (NotificationIconContainer)
                 mView.findViewById(
diff --git a/packages/SystemUI/src/com/android/keyguard/KeyguardSliceView.java b/packages/SystemUI/src/com/android/keyguard/KeyguardSliceView.java
index a9c06edf46ccb..a32cd1420fdce 100644
--- a/packages/SystemUI/src/com/android/keyguard/KeyguardSliceView.java
+++ b/packages/SystemUI/src/com/android/keyguard/KeyguardSliceView.java
@@ -154,12 +154,7 @@ public class KeyguardSliceView extends LinearLayout {
     public void updateLockScreenMode(int mode) {
         mLockScreenMode = mode;
         if (mLockScreenMode == KeyguardUpdateMonitor.LOCK_SCREEN_MODE_LAYOUT_1) {
-            // add top padding to better align with top of clock
-            final int topPadding = (int) TypedValue.applyDimension(
-                    TypedValue.COMPLEX_UNIT_DIP,
-                    20,
-                    getResources().getDisplayMetrics());
-            mTitle.setPaddingRelative(0, topPadding, 0, 0);
+            mTitle.setPaddingRelative(0, 0, 0, 0);
             mTitle.setGravity(Gravity.START);
             setGravity(Gravity.START);
             RelativeLayout.LayoutParams lp = (RelativeLayout.LayoutParams) getLayoutParams();
@@ -524,9 +519,9 @@ public class KeyguardSliceView extends LinearLayout {
                     .getDimension(R.dimen.widget_horizontal_padding) / 2;
             if (mLockScreenMode == KeyguardUpdateMonitor.LOCK_SCREEN_MODE_LAYOUT_1) {
                 // orientation is vertical, so add padding to top & bottom
-                setPadding(0, padding, 0, padding * (hasText ? 1 : -1));
+                setPadding(0, padding, 0, hasText ? padding : 0);
             } else {
-                // oreintation is horizontal, so add padding to left & right
+                // orientation is horizontal, so add padding to left & right
                 setPadding(padding, 0, padding * (hasText ? 1 : -1), 0);
             }
 
diff --git a/packages/SystemUI/src/com/android/keyguard/KeyguardSliceViewController.java b/packages/SystemUI/src/com/android/keyguard/KeyguardSliceViewController.java
index 02b18b28a5ead..1b0a7faeddab7 100644
--- a/packages/SystemUI/src/com/android/keyguard/KeyguardSliceViewController.java
+++ b/packages/SystemUI/src/com/android/keyguard/KeyguardSliceViewController.java
@@ -26,6 +26,7 @@ import android.provider.Settings;
 import android.util.Log;
 import android.view.Display;
 import android.view.View;
+import android.view.ViewGroup;
 
 import androidx.annotation.NonNull;
 import androidx.lifecycle.LiveData;
@@ -148,6 +149,12 @@ public class KeyguardSliceViewController extends ViewController<KeyguardSliceVie
                         KeyguardSliceViewController.this.hashCode()));
     }
 
+    void updateTopMargin(float clockTopTextPadding) {
+        ViewGroup.MarginLayoutParams lp = (ViewGroup.MarginLayoutParams) mView.getLayoutParams();
+        lp.topMargin = (int) clockTopTextPadding;
+        mView.setLayoutParams(lp);
+    }
+
     /**
      * Updates the lockscreen mode which may change the layout of the keyguard slice view.
      */
diff --git a/packages/SystemUI/src/com/android/keyguard/KeyguardStatusViewController.java b/packages/SystemUI/src/com/android/keyguard/KeyguardStatusViewController.java
index cc7b8322d1909..dcb306e6110a7 100644
--- a/packages/SystemUI/src/com/android/keyguard/KeyguardStatusViewController.java
+++ b/packages/SystemUI/src/com/android/keyguard/KeyguardStatusViewController.java
@@ -297,6 +297,15 @@ public class KeyguardStatusViewController extends ViewController<KeyguardStatusV
             mLockScreenMode = mode;
             mKeyguardClockSwitchController.updateLockScreenMode(mode);
             mKeyguardSliceViewController.updateLockScreenMode(mode);
+            if (mLockScreenMode == KeyguardUpdateMonitor.LOCK_SCREEN_MODE_LAYOUT_1) {
+                // align the top of keyguard_status_area with the top of the clock text instead
+                // of the top of the view
+                mKeyguardSliceViewController.updateTopMargin(
+                        mKeyguardClockSwitchController.getClockTextTopPadding());
+            } else {
+                // reset margin
+                mKeyguardSliceViewController.updateTopMargin(0);
+            }
             updateAodIcons();
         }
 
diff --git a/packages/SystemUI/src/com/android/systemui/statusbar/phone/KeyguardClockPositionAlgorithm.java b/packages/SystemUI/src/com/android/systemui/statusbar/phone/KeyguardClockPositionAlgorithm.java
index 5c225e5a35291..7508dcb487ede 100644
--- a/packages/SystemUI/src/com/android/systemui/statusbar/phone/KeyguardClockPositionAlgorithm.java
+++ b/packages/SystemUI/src/com/android/systemui/statusbar/phone/KeyguardClockPositionAlgorithm.java
@@ -256,10 +256,9 @@ public class KeyguardClockPositionAlgorithm {
 
         // TODO(b/12836565) - prototyping only adjustment
         if (mLockScreenMode != KeyguardUpdateMonitor.LOCK_SCREEN_MODE_NORMAL) {
-            // This will keep the clock at the top for AOD
-            return (int) (clockY + burnInPreventionOffsetY() + mEmptyDragAmount);
+            // This will keep the clock at the top
+            clockYDark = (int) (clockY + burnInPreventionOffsetY());
         }
-
         return (int) (MathUtils.lerp(clockY, clockYDark, darkAmount) + mEmptyDragAmount);
     }
 
diff --git a/packages/SystemUI/src/com/android/systemui/statusbar/phone/NotificationPanelViewController.java b/packages/SystemUI/src/com/android/systemui/statusbar/phone/NotificationPanelViewController.java
index 193c96373f680..c936e82c2a169 100644
--- a/packages/SystemUI/src/com/android/systemui/statusbar/phone/NotificationPanelViewController.java
+++ b/packages/SystemUI/src/com/android/systemui/statusbar/phone/NotificationPanelViewController.java
@@ -221,6 +221,7 @@ public class NotificationPanelViewController extends PanelViewController {
 
                 @Override
                 public void onLockScreenModeChanged(int mode) {
+                    mLockScreenMode = mode;
                     mClockPositionAlgorithm.onLockScreenModeChanged(mode);
                 }
 
@@ -472,6 +473,8 @@ public class NotificationPanelViewController extends PanelViewController {
     private int mOldLayoutDirection;
     private NotificationShelfController mNotificationShelfController;
 
+    private int mLockScreenMode = KeyguardUpdateMonitor.LOCK_SCREEN_MODE_NORMAL;
+
     private View.AccessibilityDelegate mAccessibilityDelegate = new View.AccessibilityDelegate() {
         @Override
         public void onInitializeAccessibilityNodeInfo(View host, AccessibilityNodeInfo info) {
@@ -872,8 +875,10 @@ public class NotificationPanelViewController extends PanelViewController {
                     mNotificationStackScrollLayoutController.getIntrinsicContentHeight(),
                     getExpandedFraction(),
                     totalHeight,
-                    (int) (mKeyguardStatusViewController.getHeight()
-                            - mShelfHeight / 2.0f - mDarkIconSize / 2.0f),
+                    mLockScreenMode == KeyguardUpdateMonitor.LOCK_SCREEN_MODE_LAYOUT_1
+                            ? mKeyguardStatusViewController.getHeight()
+                            : (int) (mKeyguardStatusViewController.getHeight()
+                                    - mShelfHeight / 2.0f - mDarkIconSize / 2.0f),
                     clockPreferredY, hasCustomClock(),
                     hasVisibleNotifications, mInterpolatedDarkAmount, mEmptyDragAmount,
                     bypassEnabled, getUnlockedStackScrollerPadding(),