diff --git a/packages/CarSystemUI/res/values/config.xml b/packages/CarSystemUI/res/values/config.xml
index 43e2918bd98da..0b56d05cc66f7 100644
--- a/packages/CarSystemUI/res/values/config.xml
+++ b/packages/CarSystemUI/res/values/config.xml
@@ -32,6 +32,10 @@
     <!-- Disable normal notification rendering; we handle that ourselves -->
     <bool name="config_renderNotifications">false</bool>
 
+    <!-- Whether navigationBar touch events should be consumed before reaching the CarFacetButton \
+         when the notification panel is open. -->
+    <bool name="config_consumeNavigationBarTouchWhenNotificationPanelOpen">false</bool>
+
     <!-- Whether heads-up notifications should be shown when shade is open. -->
     <bool name="config_enableHeadsUpNotificationWhenNotificationShadeOpen">true</bool>
     <!-- Whether heads-up notifications should be shown on the bottom. If false, heads-up
diff --git a/packages/CarSystemUI/src/com/android/systemui/car/notification/NotificationPanelViewController.java b/packages/CarSystemUI/src/com/android/systemui/car/notification/NotificationPanelViewController.java
index 9d98479dfeff5..1901a2db879da 100644
--- a/packages/CarSystemUI/src/com/android/systemui/car/notification/NotificationPanelViewController.java
+++ b/packages/CarSystemUI/src/com/android/systemui/car/notification/NotificationPanelViewController.java
@@ -599,6 +599,11 @@ public class NotificationPanelViewController extends OverlayViewController {
         }
     }
 
+    /** Returns {@code true} if the notification panel is expanded. */
+    public boolean isPanelExpanded() {
+        return mPanelExpanded;
+    }
+
     /** Sets the unseen count listener. */
     public void setOnUnseenCountUpdateListener(OnUnseenCountUpdateListener listener) {
         mUnseenCountUpdateListener = listener;
diff --git a/packages/CarSystemUI/src/com/android/systemui/car/notification/NotificationPanelViewMediator.java b/packages/CarSystemUI/src/com/android/systemui/car/notification/NotificationPanelViewMediator.java
index 1cfc83293acb8..110c2ee8854ba 100644
--- a/packages/CarSystemUI/src/com/android/systemui/car/notification/NotificationPanelViewMediator.java
+++ b/packages/CarSystemUI/src/com/android/systemui/car/notification/NotificationPanelViewMediator.java
@@ -20,7 +20,6 @@ import android.car.hardware.power.CarPowerManager;
 import android.content.res.Configuration;
 
 import com.android.systemui.car.CarDeviceProvisionedController;
-import com.android.systemui.car.CarServiceProvider;
 import com.android.systemui.navigationbar.car.CarNavigationBarController;
 import com.android.systemui.statusbar.car.PowerManagerHelper;
 import com.android.systemui.statusbar.policy.ConfigurationController;
@@ -36,7 +35,6 @@ public class NotificationPanelViewMediator implements OverlayViewMediator,
 
     private final CarNavigationBarController mCarNavigationBarController;
     private final NotificationPanelViewController mNotificationPanelViewController;
-    private final CarServiceProvider mCarServiceProvider;
     private final PowerManagerHelper mPowerManagerHelper;
     private final CarDeviceProvisionedController mCarDeviceProvisionedController;
     private final ConfigurationController mConfigurationController;
@@ -46,7 +44,6 @@ public class NotificationPanelViewMediator implements OverlayViewMediator,
             CarNavigationBarController carNavigationBarController,
             NotificationPanelViewController notificationPanelViewController,
 
-            CarServiceProvider carServiceProvider,
             PowerManagerHelper powerManagerHelper,
 
             CarDeviceProvisionedController carDeviceProvisionedController,
@@ -54,7 +51,6 @@ public class NotificationPanelViewMediator implements OverlayViewMediator,
     ) {
         mCarNavigationBarController = carNavigationBarController;
         mNotificationPanelViewController = notificationPanelViewController;
-        mCarServiceProvider = carServiceProvider;
         mPowerManagerHelper = powerManagerHelper;
         mCarDeviceProvisionedController = carDeviceProvisionedController;
         mConfigurationController = configurationController;
@@ -72,7 +68,17 @@ public class NotificationPanelViewMediator implements OverlayViewMediator,
                 mNotificationPanelViewController.getNavBarNotificationTouchListener());
 
         mCarNavigationBarController.registerNotificationController(
-                () -> mNotificationPanelViewController.toggle());
+                new CarNavigationBarController.NotificationsShadeController() {
+                    @Override
+                    public void togglePanel() {
+                        mNotificationPanelViewController.toggle();
+                    }
+
+                    @Override
+                    public boolean isNotificationPanelOpen() {
+                        return mNotificationPanelViewController.isPanelExpanded();
+                    }
+                });
     }
 
     @Override
diff --git a/packages/CarSystemUI/src/com/android/systemui/navigationbar/car/CarNavigationBarController.java b/packages/CarSystemUI/src/com/android/systemui/navigationbar/car/CarNavigationBarController.java
index 67e9da429c36c..fbcd8787135de 100644
--- a/packages/CarSystemUI/src/com/android/systemui/navigationbar/car/CarNavigationBarController.java
+++ b/packages/CarSystemUI/src/com/android/systemui/navigationbar/car/CarNavigationBarController.java
@@ -314,6 +314,9 @@ public class CarNavigationBarController {
     public interface NotificationsShadeController {
         /** Toggles the visibility of the notifications shade. */
         void togglePanel();
+
+        /** Returns {@code true} if the panel is open. */
+        boolean isNotificationPanelOpen();
     }
 
     private void checkAllBars(boolean isSetUp) {
diff --git a/packages/CarSystemUI/src/com/android/systemui/navigationbar/car/CarNavigationBarView.java b/packages/CarSystemUI/src/com/android/systemui/navigationbar/car/CarNavigationBarView.java
index 28da16932fc4c..5b99f53af9f90 100644
--- a/packages/CarSystemUI/src/com/android/systemui/navigationbar/car/CarNavigationBarView.java
+++ b/packages/CarSystemUI/src/com/android/systemui/navigationbar/car/CarNavigationBarView.java
@@ -35,10 +35,11 @@ import com.android.systemui.statusbar.phone.StatusBarIconController;
  * in a linear layout.
  */
 public class CarNavigationBarView extends LinearLayout {
+    private final boolean mConsumeTouchWhenPanelOpen;
+
     private View mNavButtons;
     private CarNavigationButton mNotificationsButton;
     private NotificationsShadeController mNotificationsShadeController;
-    private Context mContext;
     private View mLockScreenButtons;
     // used to wire in open/close gestures for notifications
     private OnTouchListener mStatusBarWindowTouchListener;
@@ -46,7 +47,8 @@ public class CarNavigationBarView extends LinearLayout {
 
     public CarNavigationBarView(Context context, AttributeSet attrs) {
         super(context, attrs);
-        mContext = context;
+        mConsumeTouchWhenPanelOpen = getResources().getBoolean(
+                R.bool.config_consumeNavigationBarTouchWhenNotificationPanelOpen);
     }
 
     @Override
@@ -77,9 +79,16 @@ public class CarNavigationBarView extends LinearLayout {
     @Override
     public boolean onInterceptTouchEvent(MotionEvent ev) {
         if (mStatusBarWindowTouchListener != null) {
+            boolean shouldConsumeEvent = mNotificationsShadeController == null ? false
+                    : mNotificationsShadeController.isNotificationPanelOpen();
+
             // Forward touch events to the status bar window so it can drag
             // windows if required (Notification shade)
             mStatusBarWindowTouchListener.onTouch(this, ev);
+
+            if (mConsumeTouchWhenPanelOpen && shouldConsumeEvent) {
+                return true;
+            }
         }
         return super.onInterceptTouchEvent(ev);
     }
diff --git a/packages/CarSystemUI/tests/res/layout/car_navigation_bar_view_test.xml b/packages/CarSystemUI/tests/res/layout/car_navigation_bar_view_test.xml
new file mode 100644
index 0000000000000..b0ca8dc4cd34a
--- /dev/null
+++ b/packages/CarSystemUI/tests/res/layout/car_navigation_bar_view_test.xml
@@ -0,0 +1,58 @@
+<!--
+  ~ Copyright (C) 2020 The Android Open Source Project
+  ~
+  ~ Licensed under the Apache License, Version 2.0 (the "License");
+  ~ you may not use this file except in compliance with the License.
+  ~ You may obtain a copy of the License at
+  ~
+  ~      http://www.apache.org/licenses/LICENSE-2.0
+  ~
+  ~ Unless required by applicable law or agreed to in writing, software
+  ~ distributed under the License is distributed on an "AS IS" BASIS,
+  ~ WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+  ~ See the License for the specific language governing permissions and
+  ~ limitations under the License.
+  -->
+
+<com.android.systemui.navigationbar.car.CarNavigationBarView
+    xmlns:android="http://schemas.android.com/apk/res/android"
+    xmlns:systemui="http://schemas.android.com/apk/res-auto"
+    android:layout_width="match_parent"
+    android:layout_height="match_parent"
+    android:background="@drawable/system_bar_background"
+    android:orientation="vertical">
+    <!--The 20dp padding is the difference between the background selected icon size and the ripple
+        that was chosen, thus it's a hack to make it look pretty and not an official margin value-->
+    <LinearLayout
+        android:id="@id/nav_buttons"
+        android:layout_width="match_parent"
+        android:layout_height="wrap_content"
+        android:layout_weight="1"
+        android:paddingStart="20dp"
+        android:paddingEnd="20dp"
+        android:gravity="center">
+
+        <com.android.systemui.navigationbar.car.CarNavigationButton
+            android:id="@+id/home"
+            style="@style/NavigationBarButton"
+            systemui:componentNames="com.android.car.carlauncher/.CarLauncher"
+            systemui:icon="@drawable/car_ic_overview"
+            systemui:intent="intent:#Intent;action=android.intent.action.MAIN;category=android.intent.category.HOME;launchFlags=0x14000000;end"
+            systemui:selectedIcon="@drawable/car_ic_overview_selected"
+            systemui:highlightWhenSelected="true"
+        />
+
+    </LinearLayout>
+
+    <LinearLayout
+        android:id="@+id/lock_screen_nav_buttons"
+        android:layout_width="match_parent"
+        android:layout_height="wrap_content"
+        android:layout_weight="1"
+        android:paddingStart="@dimen/car_keyline_1"
+        android:paddingEnd="@dimen/car_keyline_1"
+        android:gravity="center"
+        android:visibility="gone"
+    />
+
+</com.android.systemui.navigationbar.car.CarNavigationBarView>
diff --git a/packages/CarSystemUI/tests/src/com/android/systemui/navigationbar/car/CarNavigationBarViewTest.java b/packages/CarSystemUI/tests/src/com/android/systemui/navigationbar/car/CarNavigationBarViewTest.java
new file mode 100644
index 0000000000000..9e2131c9ccfbb
--- /dev/null
+++ b/packages/CarSystemUI/tests/src/com/android/systemui/navigationbar/car/CarNavigationBarViewTest.java
@@ -0,0 +1,100 @@
+/*
+ * Copyright (C) 2020 The Android Open Source Project
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package com.android.systemui.navigationbar.car;
+
+import static com.google.common.truth.Truth.assertThat;
+
+import static org.mockito.Mockito.when;
+
+import android.testing.AndroidTestingRunner;
+import android.testing.TestableLooper;
+import android.view.LayoutInflater;
+import android.view.MotionEvent;
+import android.view.View;
+
+import androidx.test.filters.SmallTest;
+
+import com.android.systemui.R;
+import com.android.systemui.SysuiTestCase;
+
+import org.junit.After;
+import org.junit.Before;
+import org.junit.Test;
+import org.junit.runner.RunWith;
+import org.mockito.Mock;
+import org.mockito.MockitoAnnotations;
+
+@RunWith(AndroidTestingRunner.class)
+@TestableLooper.RunWithLooper
+@SmallTest
+public class CarNavigationBarViewTest extends SysuiTestCase {
+
+    private CarNavigationBarView mNavBarView;
+
+    @Mock
+    private CarNavigationBarController.NotificationsShadeController mNotificationsShadeController;
+
+    @Mock
+    private View.OnTouchListener mNavBarTouchListener;
+
+    @Before
+    public void setUp() {
+        MockitoAnnotations.initMocks(this);
+    }
+
+    @After
+    public void tearDown() {
+        getContext().getOrCreateTestableResources().addOverride(
+                R.bool.config_consumeNavigationBarTouchWhenNotificationPanelOpen, false);
+    }
+
+    @Test
+    public void dispatchTouch_shadeOpen_flagOff_doesNotConsumeTouch() {
+        getContext().getOrCreateTestableResources().addOverride(
+                R.bool.config_consumeNavigationBarTouchWhenNotificationPanelOpen, false);
+        when(mNotificationsShadeController.isNotificationPanelOpen()).thenReturn(true);
+        mNavBarView = (CarNavigationBarView) LayoutInflater.from(getContext()).inflate(
+                R.layout.car_navigation_bar_view_test, /* root= */ null);
+        mNavBarView.setNotificationsPanelController(mNotificationsShadeController);
+        mNavBarView.setStatusBarWindowTouchListener(mNavBarTouchListener);
+
+        boolean consume = mNavBarView.onInterceptTouchEvent(
+                MotionEvent.obtain(/* downTime= */ 200, /* eventTime= */ 300,
+                        MotionEvent.ACTION_MOVE, mNavBarView.getX(),
+                        mNavBarView.getY(), /* metaState= */ 0));
+
+        assertThat(consume).isFalse();
+    }
+
+    @Test
+    public void dispatchTouch_shadeOpen_flagOn_consumesTouch() {
+        getContext().getOrCreateTestableResources().addOverride(
+                R.bool.config_consumeNavigationBarTouchWhenNotificationPanelOpen, true);
+        when(mNotificationsShadeController.isNotificationPanelOpen()).thenReturn(true);
+        mNavBarView = (CarNavigationBarView) LayoutInflater.from(getContext()).inflate(
+                R.layout.car_navigation_bar_view_test, /* root= */ null);
+        mNavBarView.setNotificationsPanelController(mNotificationsShadeController);
+        mNavBarView.setStatusBarWindowTouchListener(mNavBarTouchListener);
+
+        boolean consume = mNavBarView.onInterceptTouchEvent(
+                MotionEvent.obtain(/* downTime= */ 200, /* eventTime= */ 300,
+                        MotionEvent.ACTION_MOVE, mNavBarView.getX(),
+                        mNavBarView.getY(), /* metaState= */ 0));
+
+        assertThat(consume).isTrue();
+    }
+}