diff --git a/services/core/java/com/android/server/VcnManagementService.java b/services/core/java/com/android/server/VcnManagementService.java
index 45eb77453dbd9..471d2af2784f4 100644
--- a/services/core/java/com/android/server/VcnManagementService.java
+++ b/services/core/java/com/android/server/VcnManagementService.java
@@ -87,6 +87,7 @@ import java.util.List;
 import java.util.Map;
 import java.util.Map.Entry;
 import java.util.Objects;
+import java.util.Set;
 import java.util.concurrent.TimeUnit;
 
 /**
@@ -431,6 +432,7 @@ public class VcnManagementService extends IVcnManagementService.Stub {
         public void onNewSnapshot(@NonNull TelephonySubscriptionSnapshot snapshot) {
             // Startup VCN instances
             synchronized (mLock) {
+                final TelephonySubscriptionSnapshot oldSnapshot = mLastSnapshot;
                 mLastSnapshot = snapshot;
 
                 // Start any VCN instances as necessary
@@ -478,10 +480,28 @@ public class VcnManagementService extends IVcnManagementService.Stub {
                         entry.getValue().updateSubscriptionSnapshot(mLastSnapshot);
                     }
                 }
+
+                final Map<ParcelUuid, Set<Integer>> oldSubGrpMappings =
+                        getSubGroupToSubIdMappings(oldSnapshot);
+                final Map<ParcelUuid, Set<Integer>> currSubGrpMappings =
+                        getSubGroupToSubIdMappings(mLastSnapshot);
+                if (!currSubGrpMappings.equals(oldSubGrpMappings)) {
+                    notifyAllPolicyListenersLocked();
+                }
             }
         }
     }
 
+    @GuardedBy("mLock")
+    private Map<ParcelUuid, Set<Integer>> getSubGroupToSubIdMappings(
+            @NonNull TelephonySubscriptionSnapshot snapshot) {
+        final Map<ParcelUuid, Set<Integer>> subGrpMappings = new ArrayMap<>();
+        for (ParcelUuid subGrp : mVcns.keySet()) {
+            subGrpMappings.put(subGrp, snapshot.getAllSubIdsInGroup(subGrp));
+        }
+        return subGrpMappings;
+    }
+
     @GuardedBy("mLock")
     private void stopVcnLocked(@NonNull ParcelUuid uuidToTeardown) {
         final Vcn vcnToTeardown = mVcns.remove(uuidToTeardown);
@@ -815,6 +835,8 @@ public class VcnManagementService extends IVcnManagementService.Stub {
             if (isVcnManagedNetwork) {
                 ncBuilder.removeCapability(
                         NetworkCapabilities.NET_CAPABILITY_NOT_VCN_MANAGED);
+            } else {
+                ncBuilder.addCapability(NetworkCapabilities.NET_CAPABILITY_NOT_VCN_MANAGED);
             }
 
             if (isRestrictedCarrierWifi) {
diff --git a/tests/vcn/java/com/android/server/VcnManagementServiceTest.java b/tests/vcn/java/com/android/server/VcnManagementServiceTest.java
index aa4b5f8e208fc..9ecd82ff6bcbb 100644
--- a/tests/vcn/java/com/android/server/VcnManagementServiceTest.java
+++ b/tests/vcn/java/com/android/server/VcnManagementServiceTest.java
@@ -77,6 +77,7 @@ import android.os.test.TestLooper;
 import android.telephony.SubscriptionInfo;
 import android.telephony.SubscriptionManager;
 import android.telephony.TelephonyManager;
+import android.util.ArraySet;
 
 import androidx.test.filters.SmallTest;
 import androidx.test.runner.AndroidJUnit4;
@@ -98,6 +99,7 @@ import java.io.FileNotFoundException;
 import java.util.Collections;
 import java.util.List;
 import java.util.Map;
+import java.util.Map.Entry;
 import java.util.Set;
 import java.util.UUID;
 
@@ -326,6 +328,17 @@ public class VcnManagementServiceTest {
             return subIdToGroupMap.get(invocation.getArgument(0));
         }).when(snapshot).getGroupForSubId(anyInt());
 
+        doAnswer(invocation -> {
+            final ParcelUuid subGrp = invocation.getArgument(0);
+            final Set<Integer> subIds = new ArraySet<>();
+            for (Entry<Integer, ParcelUuid> entry : subIdToGroupMap.entrySet()) {
+                if (entry.getValue().equals(subGrp)) {
+                    subIds.add(entry.getKey());
+                }
+            }
+            return subIds;
+        }).when(snapshot).getAllSubIdsInGroup(any());
+
         final TelephonySubscriptionTrackerCallback cb = getTelephonySubscriptionTrackerCallback();
         cb.onNewSnapshot(snapshot);
 
@@ -914,6 +927,18 @@ public class VcnManagementServiceTest {
         verify(mMockPolicyListener).onPolicyChanged();
     }
 
+    @Test
+    public void testVcnSubIdChangeUpdatesPolicyListener() throws Exception {
+        startAndGetVcnInstance(TEST_UUID_2);
+        mVcnMgmtSvc.addVcnUnderlyingNetworkPolicyListener(mMockPolicyListener);
+
+        triggerSubscriptionTrackerCbAndGetSnapshot(
+                Collections.singleton(TEST_UUID_2),
+                Collections.singletonMap(TEST_SUBSCRIPTION_ID, TEST_UUID_2));
+
+        verify(mMockPolicyListener).onPolicyChanged();
+    }
+
     private void triggerVcnSafeMode(
             @NonNull ParcelUuid subGroup,
             @NonNull TelephonySubscriptionSnapshot snapshot,