diff --git a/services/core/java/com/android/server/wm/DisplayPolicy.java b/services/core/java/com/android/server/wm/DisplayPolicy.java
index d5a0d05b0f845..a094c816320a2 100644
--- a/services/core/java/com/android/server/wm/DisplayPolicy.java
+++ b/services/core/java/com/android/server/wm/DisplayPolicy.java
@@ -28,6 +28,7 @@ import static android.view.Display.TYPE_INTERNAL;
 import static android.view.InsetsState.ITYPE_BOTTOM_DISPLAY_CUTOUT;
 import static android.view.InsetsState.ITYPE_BOTTOM_GESTURES;
 import static android.view.InsetsState.ITYPE_BOTTOM_TAPPABLE_ELEMENT;
+import static android.view.InsetsState.ITYPE_IME;
 import static android.view.InsetsState.ITYPE_LEFT_DISPLAY_CUTOUT;
 import static android.view.InsetsState.ITYPE_LEFT_GESTURES;
 import static android.view.InsetsState.ITYPE_NAVIGATION_BAR;
@@ -1469,8 +1470,14 @@ public class DisplayPolicy {
      */
     public void beginLayoutLw(DisplayFrames displayFrames, int uiMode) {
         displayFrames.onBeginLayout();
-        updateInsetsStateForDisplayCutout(displayFrames,
-                mDisplayContent.getInsetsStateController().getRawInsetsState());
+        final InsetsState insetsState =
+                mDisplayContent.getInsetsStateController().getRawInsetsState();
+
+        // Reset the frame of IME so that the layout of windows above IME won't get influenced.
+        // Once we layout the IME, frames will be set again on the source.
+        insetsState.getSource(ITYPE_IME).setFrame(0, 0, 0, 0);
+
+        updateInsetsStateForDisplayCutout(displayFrames, insetsState);
         mSystemGestures.screenWidth = displayFrames.mUnrestricted.width();
         mSystemGestures.screenHeight = displayFrames.mUnrestricted.height();