diff --git a/libs/WindowManager/Shell/res/drawable/decor_caption_menu_background.xml b/libs/WindowManager/Shell/res/drawable/decor_caption_menu_background.xml
new file mode 100644
index 0000000000000..416287d2cbb33
--- /dev/null
+++ b/libs/WindowManager/Shell/res/drawable/decor_caption_menu_background.xml
@@ -0,0 +1,21 @@
+<?xml version="1.0" encoding="utf-8"?>
+<!--
+  ~ Copyright (C) 2022 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.
+  -->
+<shape android:shape="rectangle"
+       xmlns:android="http://schemas.android.com/apk/res/android">
+    <solid android:color="@android:color/white" />
+    <corners android:radius="20dp" />
+</shape>
diff --git a/libs/WindowManager/Shell/res/layout/caption_handle_menu.xml b/libs/WindowManager/Shell/res/layout/caption_handle_menu.xml
index d9a140b810f87..582a11cfdb8eb 100644
--- a/libs/WindowManager/Shell/res/layout/caption_handle_menu.xml
+++ b/libs/WindowManager/Shell/res/layout/caption_handle_menu.xml
@@ -20,7 +20,7 @@ android:id="@+id/handle_menu"
 android:layout_width="wrap_content"
 android:layout_height="wrap_content"
 android:gravity="center_horizontal"
-android:background="@drawable/decor_caption_title">
+android:background="@drawable/decor_caption_menu_background">
     <Button
         style="@style/CaptionButtonStyle"
         android:id="@+id/fullscreen_button"
diff --git a/libs/WindowManager/Shell/src/com/android/wm/shell/windowdecor/CaptionWindowDecorViewModel.java b/libs/WindowManager/Shell/src/com/android/wm/shell/windowdecor/CaptionWindowDecorViewModel.java
index ebe5c5e716d72..8369569b41633 100644
--- a/libs/WindowManager/Shell/src/com/android/wm/shell/windowdecor/CaptionWindowDecorViewModel.java
+++ b/libs/WindowManager/Shell/src/com/android/wm/shell/windowdecor/CaptionWindowDecorViewModel.java
@@ -44,6 +44,8 @@ import android.view.View;
 import android.window.WindowContainerToken;
 import android.window.WindowContainerTransaction;
 
+import androidx.annotation.Nullable;
+
 import com.android.wm.shell.R;
 import com.android.wm.shell.ShellTaskOrganizer;
 import com.android.wm.shell.common.DisplayController;
@@ -71,6 +73,7 @@ public class CaptionWindowDecorViewModel implements WindowDecorViewModel {
     private DesktopModeController mDesktopModeController;
     private EventReceiver mEventReceiver;
     private InputMonitor mInputMonitor;
+    private boolean mTransitionDragActive;
 
     private final SparseArray<CaptionWindowDecoration> mWindowDecorByTaskId = new SparseArray<>();
     private final DragStartListenerImpl mDragStartListener = new DragStartListenerImpl();
@@ -91,6 +94,7 @@ public class CaptionWindowDecorViewModel implements WindowDecorViewModel {
         mDisplayController = displayController;
         mSyncQueue = syncQueue;
         mDesktopModeController = desktopModeController;
+        mTransitionDragActive = false;
     }
 
     @Override
@@ -288,7 +292,7 @@ public class CaptionWindowDecorViewModel implements WindowDecorViewModel {
                     mDragResizeCallback.onDragResizeEnd(
                             e.getRawX(dragPointerIdx), e.getRawY(dragPointerIdx));
                     if (e.getRawY(dragPointerIdx) <= statusBarHeight
-                            && windowingMode == WINDOWING_MODE_FREEFORM) {
+                            && DesktopModeStatus.isActive(mContext)) {
                         mDesktopModeController.setDesktopModeActive(false);
                     }
                     break;
@@ -306,26 +310,97 @@ public class CaptionWindowDecorViewModel implements WindowDecorViewModel {
         @Override
         public void onInputEvent(InputEvent event) {
             boolean handled = false;
-            if (event instanceof MotionEvent
-                    && ((MotionEvent) event).getActionMasked() == MotionEvent.ACTION_UP) {
+            if (event instanceof MotionEvent) {
                 handled = true;
-                CaptionWindowDecorViewModel.this.handleMotionEvent((MotionEvent) event);
+                CaptionWindowDecorViewModel.this.handleReceivedMotionEvent((MotionEvent) event);
             }
             finishInputEvent(event, handled);
         }
     }
 
-    // If any input received is outside of caption bounds, turn off handle menu
-    private void handleMotionEvent(MotionEvent ev) {
-        int size = mWindowDecorByTaskId.size();
-        for (int i = 0; i < size; i++) {
-            CaptionWindowDecoration decoration = mWindowDecorByTaskId.valueAt(i);
-            if (decoration != null) {
-                decoration.closeHandleMenuIfNeeded(ev);
+    /**
+     * Handle MotionEvents relevant to focused task's caption that don't directly touch it
+     * @param ev the {@link MotionEvent} received by {@link EventReceiver}
+     */
+    private void handleReceivedMotionEvent(MotionEvent ev) {
+        if (!DesktopModeStatus.isActive(mContext)) {
+            handleCaptionThroughStatusBar(ev);
+        }
+        handleEventOutsideFocusedCaption(ev);
+        // Prevent status bar from reacting to a caption drag.
+        if (mTransitionDragActive && !DesktopModeStatus.isActive(mContext)) {
+            mInputMonitor.pilferPointers();
+        }
+    }
+
+    // If an UP/CANCEL action is received outside of caption bounds, turn off handle menu
+    private void handleEventOutsideFocusedCaption(MotionEvent ev) {
+        int action = ev.getActionMasked();
+        if (action == MotionEvent.ACTION_UP || action == MotionEvent.ACTION_CANCEL) {
+            CaptionWindowDecoration focusedDecor = getFocusedDecor();
+            if (focusedDecor == null) {
+                return;
+            }
+
+            if (!mTransitionDragActive) {
+                focusedDecor.closeHandleMenuIfNeeded(ev);
             }
         }
     }
 
+    /**
+     * Perform caption actions if not able to through normal means.
+     * Turn on desktop mode if handle is dragged below status bar.
+     */
+    private void handleCaptionThroughStatusBar(MotionEvent ev) {
+        switch (ev.getActionMasked()) {
+            case MotionEvent.ACTION_DOWN: {
+                // Begin drag through status bar if applicable.
+                CaptionWindowDecoration focusedDecor = getFocusedDecor();
+                if (focusedDecor != null && !DesktopModeStatus.isActive(mContext)
+                        && focusedDecor.checkTouchEventInHandle(ev)) {
+                    mTransitionDragActive = true;
+                }
+                break;
+            }
+            case MotionEvent.ACTION_UP: {
+                CaptionWindowDecoration focusedDecor = getFocusedDecor();
+                if (focusedDecor == null) {
+                    mTransitionDragActive = false;
+                    return;
+                }
+                if (mTransitionDragActive) {
+                    mTransitionDragActive = false;
+                    int statusBarHeight = mDisplayController
+                            .getDisplayLayout(focusedDecor.mTaskInfo.displayId).stableInsets().top;
+                    if (ev.getY() > statusBarHeight) {
+                        mDesktopModeController.setDesktopModeActive(true);
+                        return;
+                    }
+                }
+                focusedDecor.checkClickEvent(ev);
+                break;
+            }
+            case MotionEvent.ACTION_CANCEL: {
+                mTransitionDragActive = false;
+            }
+        }
+    }
+
+    @Nullable
+    private CaptionWindowDecoration getFocusedDecor() {
+        int size = mWindowDecorByTaskId.size();
+        CaptionWindowDecoration focusedDecor = null;
+        for (int i = 0; i < size; i++) {
+            CaptionWindowDecoration decor = mWindowDecorByTaskId.valueAt(i);
+            if (decor != null && decor.isFocused()) {
+                focusedDecor = decor;
+                break;
+            }
+        }
+        return focusedDecor;
+    }
+
 
     private boolean shouldShowWindowDecor(RunningTaskInfo taskInfo) {
         if (taskInfo.getWindowingMode() == WINDOWING_MODE_FREEFORM) return true;
diff --git a/libs/WindowManager/Shell/src/com/android/wm/shell/windowdecor/CaptionWindowDecoration.java b/libs/WindowManager/Shell/src/com/android/wm/shell/windowdecor/CaptionWindowDecoration.java
index affde30094567..59576cd3ec15c 100644
--- a/libs/WindowManager/Shell/src/com/android/wm/shell/windowdecor/CaptionWindowDecoration.java
+++ b/libs/WindowManager/Shell/src/com/android/wm/shell/windowdecor/CaptionWindowDecoration.java
@@ -23,6 +23,7 @@ import android.content.res.ColorStateList;
 import android.content.res.Resources;
 import android.graphics.Color;
 import android.graphics.Point;
+import android.graphics.PointF;
 import android.graphics.Rect;
 import android.graphics.drawable.VectorDrawable;
 import android.os.Handler;
@@ -243,7 +244,7 @@ public class CaptionWindowDecoration extends WindowDecoration<WindowDecorLinearL
      * Sets the visibility of buttons and color of caption based on desktop mode status
      *
      */
-    public void setButtonVisibility() {
+    void setButtonVisibility() {
         mDesktopActive = DesktopModeStatus.isActive(mContext);
         int v = mDesktopActive ? View.VISIBLE : View.GONE;
         View caption = mResult.mRootView.findViewById(R.id.caption);
@@ -262,7 +263,7 @@ public class CaptionWindowDecoration extends WindowDecoration<WindowDecorLinearL
         caption.getBackground().setTint(v == View.VISIBLE ? Color.WHITE : Color.TRANSPARENT);
     }
 
-    public boolean isHandleMenuActive() {
+    boolean isHandleMenuActive() {
         return mHandleMenu != null;
     }
 
@@ -277,7 +278,7 @@ public class CaptionWindowDecoration extends WindowDecoration<WindowDecorLinearL
     /**
      * Create and display handle menu window
      */
-    public void createHandleMenu() {
+    void createHandleMenu() {
         SurfaceControl.Transaction t = new SurfaceControl.Transaction();
         final Resources resources = mDecorWindowContext.getResources();
         int x = mRelayoutParams.mCaptionX;
@@ -298,7 +299,7 @@ public class CaptionWindowDecoration extends WindowDecoration<WindowDecorLinearL
     /**
      * Close the handle menu window
      */
-    public void closeHandleMenu() {
+    void closeHandleMenu() {
         if (!isHandleMenuActive()) return;
         mHandleMenu.releaseView();
         mHandleMenu = null;
@@ -313,24 +314,85 @@ public class CaptionWindowDecoration extends WindowDecoration<WindowDecorLinearL
     /**
      * Close an open handle menu if input is outside of menu coordinates
      * @param ev the tapped point to compare against
-     * @return
      */
-    public void closeHandleMenuIfNeeded(MotionEvent ev) {
-        if (mHandleMenu != null) {
-            Point positionInParent = mTaskOrganizer.getRunningTaskInfo(mTaskInfo.taskId)
-                    .positionInParent;
-            final Resources resources = mDecorWindowContext.getResources();
-            ev.offsetLocation(-mRelayoutParams.mCaptionX, -mRelayoutParams.mCaptionY);
-            ev.offsetLocation(-positionInParent.x, -positionInParent.y);
-            int width = loadDimensionPixelSize(resources, mRelayoutParams.mCaptionWidthId);
-            int height = loadDimensionPixelSize(resources, mRelayoutParams.mCaptionHeightId);
-            if (!(ev.getX() >= 0 && ev.getY()  >= 0
-                    && ev.getX()  <= width && ev.getY()  <= height)) {
+    void closeHandleMenuIfNeeded(MotionEvent ev) {
+        if (isHandleMenuActive()) {
+            if (!checkEventInCaptionView(ev, R.id.caption)) {
                 closeHandleMenu();
             }
         }
     }
 
+    boolean isFocused() {
+        return mTaskInfo.isFocused;
+    }
+
+    /**
+     * Offset the coordinates of a {@link MotionEvent} to be in the same coordinate space as caption
+     * @param ev the {@link MotionEvent} to offset
+     * @return the point of the input in local space
+     */
+    private PointF offsetCaptionLocation(MotionEvent ev) {
+        PointF result = new PointF(ev.getX(), ev.getY());
+        Point positionInParent = mTaskOrganizer.getRunningTaskInfo(mTaskInfo.taskId)
+                .positionInParent;
+        result.offset(-mRelayoutParams.mCaptionX, -mRelayoutParams.mCaptionY);
+        result.offset(-positionInParent.x, -positionInParent.y);
+        return result;
+    }
+
+    /**
+     * Determine if a passed MotionEvent is in a view in caption
+     * @param ev the {@link MotionEvent} to check
+     * @param layoutId the id of the view
+     * @return {@code true} if event is inside the specified view, {@code false} if not
+     */
+    private boolean checkEventInCaptionView(MotionEvent ev, int layoutId) {
+        if (mResult.mRootView == null) return false;
+        PointF inputPoint = offsetCaptionLocation(ev);
+        View view = mResult.mRootView.findViewById(layoutId);
+        return view != null && view.pointInView(inputPoint.x, inputPoint.y, 0);
+    }
+
+    boolean checkTouchEventInHandle(MotionEvent ev) {
+        if (isHandleMenuActive()) return false;
+        return checkEventInCaptionView(ev, R.id.caption_handle);
+    }
+
+    /**
+     * Check a passed MotionEvent if a click has occurred on any button on this caption
+     * Note this should only be called when a regular onClick is not possible
+     * (i.e. the button was clicked through status bar layer)
+     * @param ev the MotionEvent to compare
+     */
+    void checkClickEvent(MotionEvent ev) {
+        if (mResult.mRootView == null) return;
+        View caption = mResult.mRootView.findViewById(R.id.caption);
+        PointF inputPoint = offsetCaptionLocation(ev);
+        if (!isHandleMenuActive()) {
+            View handle = caption.findViewById(R.id.caption_handle);
+            clickIfPointInView(inputPoint, handle);
+        } else {
+            View menu = mHandleMenu.mWindowViewHost.getView();
+            View fullscreen = menu.findViewById(R.id.fullscreen_button);
+            if (clickIfPointInView(inputPoint, fullscreen)) return;
+            View desktop = menu.findViewById(R.id.desktop_button);
+            if (clickIfPointInView(inputPoint, desktop)) return;
+            View split = menu.findViewById(R.id.split_screen_button);
+            if (clickIfPointInView(inputPoint, split)) return;
+            View more = menu.findViewById(R.id.more_button);
+            clickIfPointInView(inputPoint, more);
+        }
+    }
+
+    private boolean clickIfPointInView(PointF inputPoint, View v) {
+        if (v.pointInView(inputPoint.x - v.getLeft(), inputPoint.y, 0)) {
+            mOnCaptionButtonClickListener.onClick(v);
+            return true;
+        }
+        return false;
+    }
+
     @Override
     public void close() {
         closeDragResizeListener();