diff --git a/services/core/java/com/android/server/am/ActivityStack.java b/services/core/java/com/android/server/am/ActivityStack.java
index 070e0282d53e7..bfe7ea2daa3b4 100644
--- a/services/core/java/com/android/server/am/ActivityStack.java
+++ b/services/core/java/com/android/server/am/ActivityStack.java
@@ -2853,10 +2853,13 @@ class ActivityStack<T extends StackWindowController> extends ConfigurationContai
                         transit = TRANSIT_TASK_OPEN_BEHIND;
                     } else {
                         // If a new task is being launched, then mark the existing top activity as
-                        // supporting picture-in-picture while pausing
+                        // supporting picture-in-picture while pausing only if the starting activity
+                        // would not be considered an overlay on top of the current activity
+                        // (eg. not fullscreen, or the assistant)
                         if (focusedTopActivity != null
                                 && focusedTopActivity.getStackId() != PINNED_STACK_ID
-                                && r.getStackId() != ASSISTANT_STACK_ID) {
+                                && r.getStackId() != ASSISTANT_STACK_ID
+                                && r.fullscreen) {
                             focusedTopActivity.supportsPictureInPictureWhilePausing = true;
                         }
                         transit = TRANSIT_TASK_OPEN;
@@ -4467,9 +4470,10 @@ class ActivityStack<T extends StackWindowController> extends ConfigurationContai
             updateTransitLocked(TRANSIT_TASK_TO_FRONT, options);
         }
         // If a new task is moved to the front, then mark the existing top activity as supporting
-        // picture-in-picture while paused
+        // picture-in-picture while paused only if the task would not be considered an oerlay on top
+        // of the current activity (eg. not fullscreen, or the assistant)
         if (topActivity != null && topActivity.getStackId() != PINNED_STACK_ID
-                && tr.getStackId() != ASSISTANT_STACK_ID) {
+                && tr.getStackId() != ASSISTANT_STACK_ID && tr.containsOnlyFullscreenActivities()) {
             topActivity.supportsPictureInPictureWhilePausing = true;
         }
 
diff --git a/services/core/java/com/android/server/am/TaskRecord.java b/services/core/java/com/android/server/am/TaskRecord.java
index 4f211e37edddf..96d857354f1a7 100644
--- a/services/core/java/com/android/server/am/TaskRecord.java
+++ b/services/core/java/com/android/server/am/TaskRecord.java
@@ -1112,6 +1112,19 @@ final class TaskRecord extends ConfigurationContainer implements TaskWindowConta
         return intent != null ? intent : affinityIntent;
     }
 
+    /**
+     * @return Whether there are only fullscreen activities in this task.
+     */
+    boolean containsOnlyFullscreenActivities() {
+        for (int i = 0; i < mActivities.size(); i++) {
+            final ActivityRecord r = mActivities.get(i);
+            if (!r.finishing && !r.fullscreen) {
+                return false;
+            }
+        }
+        return true;
+    }
+
     /** Returns the first non-finishing activity from the root. */
     ActivityRecord getRootActivity() {
         for (int i = 0; i < mActivities.size(); i++) {