diff --git a/services/core/java/com/android/server/wm/DisplayArea.java b/services/core/java/com/android/server/wm/DisplayArea.java
index 15483cb90ce21..f075d850c20f3 100644
--- a/services/core/java/com/android/server/wm/DisplayArea.java
+++ b/services/core/java/com/android/server/wm/DisplayArea.java
@@ -461,6 +461,23 @@ public class DisplayArea<T extends WindowContainer> extends WindowContainer<T> {
         }
     }
 
+    @Override
+    void resolveOverrideConfiguration(Configuration newParentConfiguration) {
+        super.resolveOverrideConfiguration(newParentConfiguration);
+        final Configuration resolvedConfig = getResolvedOverrideConfiguration();
+        final Rect overrideBounds = resolvedConfig.windowConfiguration.getBounds();
+        final Rect overrideAppBounds = resolvedConfig.windowConfiguration.getAppBounds();
+        final Rect parentAppBounds = newParentConfiguration.windowConfiguration.getAppBounds();
+
+        // If there is no override of appBounds, restrict appBounds to the override bounds.
+        if (!overrideBounds.isEmpty() && (overrideAppBounds == null || overrideAppBounds.isEmpty())
+                && parentAppBounds != null && !parentAppBounds.isEmpty()) {
+            final Rect appBounds = new Rect(overrideBounds);
+            appBounds.intersect(parentAppBounds);
+            resolvedConfig.windowConfiguration.setAppBounds(appBounds);
+        }
+    }
+
     @Override
     boolean isOrganized() {
         return mOrganizer != null;
diff --git a/services/tests/wmtests/src/com/android/server/wm/DisplayAreaTest.java b/services/tests/wmtests/src/com/android/server/wm/DisplayAreaTest.java
index 5c67db7ef8135..91fd7a2ad0c1f 100644
--- a/services/tests/wmtests/src/com/android/server/wm/DisplayAreaTest.java
+++ b/services/tests/wmtests/src/com/android/server/wm/DisplayAreaTest.java
@@ -16,8 +16,8 @@
 
 package com.android.server.wm;
 
-import static android.content.ActivityInfoProto.SCREEN_ORIENTATION_PORTRAIT;
 import static android.content.pm.ActivityInfo.SCREEN_ORIENTATION_LANDSCAPE;
+import static android.content.pm.ActivityInfo.SCREEN_ORIENTATION_PORTRAIT;
 import static android.view.WindowManager.LayoutParams.TYPE_APPLICATION;
 import static android.view.WindowManager.LayoutParams.TYPE_APPLICATION_OVERLAY;
 import static android.view.WindowManager.LayoutParams.TYPE_PRESENTATION;
@@ -50,6 +50,7 @@ import static org.mockito.Mockito.verify;
 import static org.mockito.Mockito.verifyZeroInteractions;
 
 import android.content.pm.ActivityInfo;
+import android.content.res.Configuration;
 import android.graphics.Rect;
 import android.os.Binder;
 import android.platform.test.annotations.Presubmit;
@@ -407,6 +408,32 @@ public class DisplayAreaTest extends WindowTestsBase {
                 childBounds1, windowToken.getMaxBounds());
     }
 
+    @Test
+    public void testRestrictAppBoundsToOverrideBounds() {
+        final RootDisplayArea root =
+                new DisplayAreaPolicyBuilderTest.SurfacelessDisplayAreaRoot(mWm);
+        final DisplayArea<DisplayArea> da = new DisplayArea<>(mWm, ANY, "Test_DA");
+        root.addChild(da, POSITION_TOP);
+        final Rect displayBounds = new Rect(0, 0, 1800, 2800);
+        final Rect displayAppBounds = new Rect(0, 100, 1800, 2800);
+        final Rect daBounds = new Rect(0, 1400, 1800, 2800);
+        root.setBounds(displayBounds);
+
+        // DA inherit parent app bounds.
+        final Configuration displayConfig = new Configuration();
+        displayConfig.windowConfiguration.setAppBounds(displayAppBounds);
+        root.onRequestedOverrideConfigurationChanged(displayConfig);
+
+        assertEquals(displayAppBounds, da.getConfiguration().windowConfiguration.getAppBounds());
+
+        // Restrict DA appBounds to override Bounds
+        da.setBounds(daBounds);
+
+        final Rect expectedDaAppBounds = new Rect(daBounds);
+        expectedDaAppBounds.intersect(displayAppBounds);
+        assertEquals(expectedDaAppBounds, da.getConfiguration().windowConfiguration.getAppBounds());
+    }
+
     @Test
     public void testGetOrientation() {
         final DisplayArea.Tokens area = new DisplayArea.Tokens(mWm, ABOVE_TASKS, "test");
diff --git a/services/tests/wmtests/src/com/android/server/wm/DualDisplayAreaGroupPolicyTest.java b/services/tests/wmtests/src/com/android/server/wm/DualDisplayAreaGroupPolicyTest.java
index e6f24da3e7b93..f91c9d0e9853b 100644
--- a/services/tests/wmtests/src/com/android/server/wm/DualDisplayAreaGroupPolicyTest.java
+++ b/services/tests/wmtests/src/com/android/server/wm/DualDisplayAreaGroupPolicyTest.java
@@ -16,7 +16,7 @@
 
 package com.android.server.wm;
 
-import static android.content.ActivityInfoProto.SCREEN_ORIENTATION_LANDSCAPE;
+import static android.content.pm.ActivityInfo.SCREEN_ORIENTATION_LANDSCAPE;
 import static android.content.pm.ActivityInfo.SCREEN_ORIENTATION_PORTRAIT;
 import static android.content.pm.ActivityInfo.SCREEN_ORIENTATION_UNSPECIFIED;
 import static android.content.res.Configuration.ORIENTATION_LANDSCAPE;