diff --git a/core/java/android/view/InsetsController.java b/core/java/android/view/InsetsController.java
index 2d26c64248cfa..b4e1172f49aeb 100644
--- a/core/java/android/view/InsetsController.java
+++ b/core/java/android/view/InsetsController.java
@@ -642,7 +642,7 @@ public class InsetsController implements WindowInsetsController, InsetsAnimation
         updateState(state);
         applyLocalVisibilityOverride();
 
-        if (!mState.equals(lastState, true /* excludingCaptionInsets */,
+        if (!mState.equals(lastState, false /* excludingCaptionInsets */,
                 true /* excludeInvisibleIme */)) {
             if (DEBUG) Log.d(TAG, "onStateChanged, notifyInsetsChanged");
             mHost.notifyInsetsChanged();
@@ -672,16 +672,14 @@ public class InsetsController implements WindowInsetsController, InsetsAnimation
             getSourceConsumer(type).updateSource(source, animationType);
         }
         for (@InternalInsetsType int type = 0; type < InsetsState.SIZE; type++) {
+            // Only update the server side insets here.
+            if (type == ITYPE_CAPTION_BAR) continue;
             InsetsSource source = mState.peekSource(type);
             if (source == null) continue;
             if (newState.peekSource(type) == null) {
                 mState.removeSource(type);
             }
         }
-        if (mCaptionInsetsHeight != 0) {
-            mState.getSource(ITYPE_CAPTION_BAR).setFrame(new Rect(mFrame.left, mFrame.top,
-                    mFrame.right, mFrame.top + mCaptionInsetsHeight));
-        }
 
         updateDisabledUserAnimationTypes(disabledUserAnimationTypes);
 
@@ -1488,7 +1486,16 @@ public class InsetsController implements WindowInsetsController, InsetsAnimation
 
     @Override
     public void setCaptionInsetsHeight(int height) {
-        mCaptionInsetsHeight = height;
+        if (mCaptionInsetsHeight != height) {
+            mCaptionInsetsHeight = height;
+            if (mCaptionInsetsHeight != 0) {
+                mState.getSource(ITYPE_CAPTION_BAR).setFrame(new Rect(mFrame.left, mFrame.top,
+                        mFrame.right, mFrame.top + mCaptionInsetsHeight));
+            } else {
+                mState.removeSource(ITYPE_CAPTION_BAR);
+            }
+            mHost.notifyInsetsChanged();
+        }
     }
 
     @Override
diff --git a/core/java/com/android/internal/policy/DecorView.java b/core/java/com/android/internal/policy/DecorView.java
index 4512fbac38c1d..adebde016bb3f 100644
--- a/core/java/com/android/internal/policy/DecorView.java
+++ b/core/java/com/android/internal/policy/DecorView.java
@@ -2019,6 +2019,7 @@ public class DecorView extends FrameLayout implements RootViewSurfaceTaker, Wind
             if (getForeground() != null) {
                 drawableChanged();
             }
+            notifyCaptionHeightChanged();
         }
     }
 
diff --git a/core/tests/coretests/src/android/view/InsetsControllerTest.java b/core/tests/coretests/src/android/view/InsetsControllerTest.java
index af13cc07ced1c..2770ed820562c 100644
--- a/core/tests/coretests/src/android/view/InsetsControllerTest.java
+++ b/core/tests/coretests/src/android/view/InsetsControllerTest.java
@@ -45,6 +45,7 @@ import static org.mockito.ArgumentMatchers.notNull;
 import static org.mockito.Mockito.clearInvocations;
 import static org.mockito.Mockito.mock;
 import static org.mockito.Mockito.never;
+import static org.mockito.Mockito.reset;
 import static org.mockito.Mockito.spy;
 import static org.mockito.Mockito.times;
 import static org.mockito.Mockito.verify;
@@ -680,6 +681,19 @@ public class InsetsControllerTest {
         });
     }
 
+    @Test
+    public void testNotifyCaptionInsetsOnlyChange() {
+        InstrumentationRegistry.getInstrumentation().runOnMainSync(() -> {
+            final InsetsState state = new InsetsState(mController.getState(), true);
+            reset(mTestHost);
+            mController.setCaptionInsetsHeight(100);
+            verify(mTestHost).notifyInsetsChanged();
+            reset(mTestHost);
+            mController.setCaptionInsetsHeight(0);
+            verify(mTestHost).notifyInsetsChanged();
+        });
+    }
+
     @Test
     public void testRequestedState() {
         InstrumentationRegistry.getInstrumentation().runOnMainSync(() -> {