diff --git a/core/tests/overlaytests/host/src/com/android/server/om/hosttest/InstallOverlayTests.java b/core/tests/overlaytests/host/src/com/android/server/om/hosttest/InstallOverlayTests.java
index bf91a16cb3b7a..6d5276f2423e1 100644
--- a/core/tests/overlaytests/host/src/com/android/server/om/hosttest/InstallOverlayTests.java
+++ b/core/tests/overlaytests/host/src/com/android/server/om/hosttest/InstallOverlayTests.java
@@ -118,7 +118,7 @@ public class InstallOverlayTests extends BaseHostJUnit4Test {
 
     @Test
     public void installPlatformSignedFrameworkOverlayAndUpdate() throws Exception {
-        assertTrue(runDeviceTests(DEVICE_TEST_PKG, DEVICE_TEST_CLS, "expectAppResource"));
+        assertTrue(runDeviceTests(DEVICE_TEST_PKG, DEVICE_TEST_CLS, "expectFrameworkResource"));
 
         installPackage("OverlayHostTests_FrameworkOverlayV1.apk");
         setOverlayEnabled(FRAMEWORK_OVERLAY_PACKAGE_NAME, true);
@@ -138,6 +138,27 @@ public class InstallOverlayTests extends BaseHostJUnit4Test {
                 "expectFrameworkOverlayV2Resource"));
     }
 
+    @Test
+    public void enabledFrameworkOverlayMustAffectNewlyInstalledPackage() throws Exception {
+        try {
+            setPackageEnabled(DEVICE_TEST_PKG, false);
+
+            installPackage("OverlayHostTests_FrameworkOverlayV1.apk");
+            setOverlayEnabled(FRAMEWORK_OVERLAY_PACKAGE_NAME, true);
+            assertTrue(overlayManagerContainsPackage(FRAMEWORK_OVERLAY_PACKAGE_NAME));
+
+            setPackageEnabled(DEVICE_TEST_PKG, true);
+            assertTrue(runDeviceTests(DEVICE_TEST_PKG, DEVICE_TEST_CLS,
+                    "expectFrameworkOverlayV1Resource"));
+        } finally {
+            setPackageEnabled(DEVICE_TEST_PKG, true);
+        }
+    }
+
+    private void setPackageEnabled(String pkg, boolean enabled) throws Exception {
+        getDevice().executeShellCommand("cmd package " + (enabled ? "enable " : "disable ") + pkg);
+    }
+
     private void setOverlayEnabled(String pkg, boolean enabled) throws Exception {
         getDevice().executeShellCommand("cmd overlay " + (enabled ? "enable " : "disable ") + pkg);
     }
diff --git a/core/tests/overlaytests/host/test-apps/UpdateOverlay/src/com/android/server/om/hosttest/update_overlay_test/UpdateOverlayTest.java b/core/tests/overlaytests/host/test-apps/UpdateOverlay/src/com/android/server/om/hosttest/update_overlay_test/UpdateOverlayTest.java
index d46bb378971da..a174d774b80e9 100644
--- a/core/tests/overlaytests/host/test-apps/UpdateOverlay/src/com/android/server/om/hosttest/update_overlay_test/UpdateOverlayTest.java
+++ b/core/tests/overlaytests/host/test-apps/UpdateOverlay/src/com/android/server/om/hosttest/update_overlay_test/UpdateOverlayTest.java
@@ -61,7 +61,7 @@ public class UpdateOverlayTest {
     }
 
     @Test
-    public void expectFrameworkOverlayResource() throws Exception {
+    public void expectFrameworkResource() throws Exception {
         assertEquals("OK", mResources.getString(android.R.string.ok));
     }
 
diff --git a/services/core/java/com/android/server/om/OverlayManagerServiceImpl.java b/services/core/java/com/android/server/om/OverlayManagerServiceImpl.java
index 74eb2ea25e49b..c57f97b61f2e5 100644
--- a/services/core/java/com/android/server/om/OverlayManagerServiceImpl.java
+++ b/services/core/java/com/android/server/om/OverlayManagerServiceImpl.java
@@ -254,7 +254,11 @@ final class OverlayManagerServiceImpl {
     }
 
     /**
-     * Returns true if the settings were modified for this target.
+     * Update the state of any overlays for this target.
+     *
+     * Returns true if the system should refresh the app's overlay paths (i.e.
+     * if the settings were modified for this target, or there is at least one
+     * enabled framework overlay).
      */
     private boolean updateAllOverlaysForTarget(@NonNull final String targetPackageName,
             final int userId, final int flags) {
@@ -277,6 +281,10 @@ final class OverlayManagerServiceImpl {
                 }
             }
         }
+
+        // check for enabled framework overlays
+        modified = modified || !getEnabledOverlayPackageNames("android", userId).isEmpty();
+
         return modified;
     }