diff --git a/core/java/android/companion/virtual/VirtualDeviceManager.java b/core/java/android/companion/virtual/VirtualDeviceManager.java
index a1983ca9ee96f..914b321b75061 100644
--- a/core/java/android/companion/virtual/VirtualDeviceManager.java
+++ b/core/java/android/companion/virtual/VirtualDeviceManager.java
@@ -469,6 +469,10 @@ public final class VirtualDeviceManager {
         /**
          * Called when the top activity is changed.
          *
+         * <p>Note: When there are no activities running on the virtual display, the
+         * {@link #onDisplayEmpty(int)} will be called. If the value topActivity is cached, it
+         * should be cleared when {@link #onDisplayEmpty(int)} is called.
+         *
          * @param displayId The display ID on which the activity change happened.
          * @param topActivity The component name of the top activity.
          */
diff --git a/services/companion/java/com/android/server/companion/virtual/GenericWindowPolicyController.java b/services/companion/java/com/android/server/companion/virtual/GenericWindowPolicyController.java
index 3a26c46116290..f4c24a82ae139 100644
--- a/services/companion/java/com/android/server/companion/virtual/GenericWindowPolicyController.java
+++ b/services/companion/java/com/android/server/companion/virtual/GenericWindowPolicyController.java
@@ -165,7 +165,10 @@ public class GenericWindowPolicyController extends DisplayWindowPolicyController
 
     @Override
     public void onTopActivityChanged(ComponentName topActivity, int uid) {
-        if (mActivityListener != null) {
+        // Don't send onTopActivityChanged() callback when topActivity is null because it's defined
+        // as @NonNull in ActivityListener interface. Sends onDisplayEmpty() callback instead when
+        // there is no activity running on virtual display.
+        if (mActivityListener != null && topActivity != null) {
             // Post callback on the main thread so it doesn't block activity launching
             mHandler.post(() ->
                     mActivityListener.onTopActivityChanged(Display.INVALID_DISPLAY, topActivity));