diff --git a/services/companion/java/com/android/server/companion/virtual/InputController.java b/services/companion/java/com/android/server/companion/virtual/InputController.java
index 80182d26003d7..dc7573e204389 100644
--- a/services/companion/java/com/android/server/companion/virtual/InputController.java
+++ b/services/companion/java/com/android/server/companion/virtual/InputController.java
@@ -37,6 +37,7 @@ import android.util.ArrayMap;
 import android.util.Slog;
 import android.view.Display;
 import android.view.InputDevice;
+import android.view.WindowManager;
 
 import com.android.internal.annotations.GuardedBy;
 import com.android.internal.annotations.VisibleForTesting;
@@ -83,22 +84,26 @@ class InputController {
     private final NativeWrapper mNativeWrapper;
     private final DisplayManagerInternal mDisplayManagerInternal;
     private final InputManagerInternal mInputManagerInternal;
+    private final WindowManager mWindowManager;
     private final DeviceCreationThreadVerifier mThreadVerifier;
 
-    InputController(@NonNull Object lock, @NonNull Handler handler) {
-        this(lock, new NativeWrapper(), handler,
+    InputController(@NonNull Object lock, @NonNull Handler handler,
+            @NonNull WindowManager windowManager) {
+        this(lock, new NativeWrapper(), handler, windowManager,
                 // Verify that virtual devices are not created on the handler thread.
                 () -> !handler.getLooper().isCurrentThread());
     }
 
     @VisibleForTesting
     InputController(@NonNull Object lock, @NonNull NativeWrapper nativeWrapper,
-            @NonNull Handler handler, @NonNull DeviceCreationThreadVerifier threadVerifier) {
+            @NonNull Handler handler, @NonNull WindowManager windowManager,
+            @NonNull DeviceCreationThreadVerifier threadVerifier) {
         mLock = lock;
         mHandler = handler;
         mNativeWrapper = nativeWrapper;
         mDisplayManagerInternal = LocalServices.getService(DisplayManagerInternal.class);
         mInputManagerInternal = LocalServices.getService(InputManagerInternal.class);
+        mWindowManager = windowManager;
         mThreadVerifier = threadVerifier;
     }
 
@@ -209,6 +214,15 @@ class InputController {
         mInputManagerInternal.setDisplayEligibilityForPointerCapture(displayId, isEligible);
     }
 
+    void setLocalIme(int displayId) {
+        // WM throws a SecurityException if the display is untrusted.
+        if ((mDisplayManagerInternal.getDisplayInfo(displayId).flags & Display.FLAG_TRUSTED)
+                == Display.FLAG_TRUSTED) {
+            mWindowManager.setDisplayImePolicy(displayId,
+                    WindowManager.DISPLAY_IME_POLICY_LOCAL);
+        }
+    }
+
     @GuardedBy("mLock")
     private void updateActivePointerDisplayIdLocked() {
         InputDeviceDescriptor mostRecentlyCreatedMouse = null;
diff --git a/services/companion/java/com/android/server/companion/virtual/VirtualDeviceImpl.java b/services/companion/java/com/android/server/companion/virtual/VirtualDeviceImpl.java
index 9802b9783da26..638b3aeef544b 100644
--- a/services/companion/java/com/android/server/companion/virtual/VirtualDeviceImpl.java
+++ b/services/companion/java/com/android/server/companion/virtual/VirtualDeviceImpl.java
@@ -62,6 +62,7 @@ import android.util.ArraySet;
 import android.util.Slog;
 import android.util.SparseArray;
 import android.view.Display;
+import android.view.WindowManager;
 import android.widget.Toast;
 import android.window.DisplayWindowPolicyController;
 
@@ -167,7 +168,9 @@ final class VirtualDeviceImpl extends IVirtualDevice.Stub
         mParams = params;
         if (inputController == null) {
             mInputController = new InputController(
-                    mVirtualDeviceLock, context.getMainThreadHandler());
+                    mVirtualDeviceLock,
+                    context.getMainThreadHandler(),
+                    context.getSystemService(WindowManager.class));
         } else {
             mInputController = inputController;
         }
@@ -537,6 +540,7 @@ final class VirtualDeviceImpl extends IVirtualDevice.Stub
             mInputController.setPointerAcceleration(1f, displayId);
             mInputController.setDisplayEligibilityForPointerCapture(/* isEligible= */ false,
                     displayId);
+            mInputController.setLocalIme(displayId);
 
             // Since we're being called in the middle of the display being created, we post a
             // task to grab the wakelock instead of doing it synchronously here, to avoid
diff --git a/services/tests/servicestests/src/com/android/server/companion/virtual/InputControllerTest.java b/services/tests/servicestests/src/com/android/server/companion/virtual/InputControllerTest.java
index 77cbb3a6398c7..5d9d7656aa5bb 100644
--- a/services/tests/servicestests/src/com/android/server/companion/virtual/InputControllerTest.java
+++ b/services/tests/servicestests/src/com/android/server/companion/virtual/InputControllerTest.java
@@ -34,6 +34,9 @@ import android.testing.AndroidTestingRunner;
 import android.testing.TestableLooper;
 import android.view.Display;
 import android.view.DisplayInfo;
+import android.view.WindowManager;
+
+import androidx.test.InstrumentationRegistry;
 
 import com.android.server.LocalServices;
 
@@ -79,7 +82,9 @@ public class InputControllerTest {
         // Allow virtual devices to be created on the looper thread for testing.
         final InputController.DeviceCreationThreadVerifier threadVerifier = () -> true;
         mInputController = new InputController(new Object(), mNativeWrapperMock,
-                new Handler(TestableLooper.get(this).getLooper()), threadVerifier);
+                new Handler(TestableLooper.get(this).getLooper()),
+                InstrumentationRegistry.getTargetContext().getSystemService(WindowManager.class),
+                threadVerifier);
     }
 
     @Test
diff --git a/services/tests/servicestests/src/com/android/server/companion/virtual/VirtualDeviceManagerServiceTest.java b/services/tests/servicestests/src/com/android/server/companion/virtual/VirtualDeviceManagerServiceTest.java
index cbb9fd7c30dd6..f9671e56fe128 100644
--- a/services/tests/servicestests/src/com/android/server/companion/virtual/VirtualDeviceManagerServiceTest.java
+++ b/services/tests/servicestests/src/com/android/server/companion/virtual/VirtualDeviceManagerServiceTest.java
@@ -77,6 +77,7 @@ import android.testing.TestableLooper;
 import android.util.ArraySet;
 import android.view.DisplayInfo;
 import android.view.KeyEvent;
+import android.view.WindowManager;
 
 import androidx.test.InstrumentationRegistry;
 
@@ -208,7 +209,8 @@ public class VirtualDeviceManagerServiceTest {
         // Allow virtual devices to be created on the looper thread for testing.
         final InputController.DeviceCreationThreadVerifier threadVerifier = () -> true;
         mInputController = new InputController(new Object(), mNativeWrapperMock,
-                new Handler(TestableLooper.get(this).getLooper()), threadVerifier);
+                new Handler(TestableLooper.get(this).getLooper()),
+                mContext.getSystemService(WindowManager.class), threadVerifier);
 
         mAssociationInfo = new AssociationInfo(1, 0, null,
                 MacAddress.BROADCAST_ADDRESS, "", null, true, false, 0, 0);