diff --git a/packages/SystemUI/res/drawable/pip_dismiss_background.xml b/packages/SystemUI/res/drawable/pip_dismiss_background.xml
index 3a7529686dfb0..8f502318ae142 100644
--- a/packages/SystemUI/res/drawable/pip_dismiss_background.xml
+++ b/packages/SystemUI/res/drawable/pip_dismiss_background.xml
@@ -1,22 +1,22 @@
 <!--
-Copyright (C) 2016 The Android Open Source Project
+     Copyright (C) 2017 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
+     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
+          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.
+     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 xmlns:android="http://schemas.android.com/apk/res/android"
-    android:shape="oval">
-    <corners
-        android:radius="100dp" />
-    <solid
-        android:color="#66000000" />
+    android:shape="rectangle">
+    <gradient
+        android:startColor="#B3000000"
+        android:endColor="#00000000"
+        android:angle="90"/>
 </shape>
\ No newline at end of file
diff --git a/packages/SystemUI/res/layout/pip_dismiss_view.xml b/packages/SystemUI/res/layout/pip_dismiss_view.xml
index 141e610d22944..f02a56cd5f810 100644
--- a/packages/SystemUI/res/layout/pip_dismiss_view.xml
+++ b/packages/SystemUI/res/layout/pip_dismiss_view.xml
@@ -1,5 +1,6 @@
 <?xml version="1.0" encoding="utf-8"?>
-<!-- Copyright (C) 2016 The Android Open Source Project
+<!--
+     Copyright (C) 2016 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.
@@ -13,12 +14,44 @@
      See the License for the specific language governing permissions and
      limitations under the License.
 -->
-<FrameLayout
-    xmlns:android="http://schemas.android.com/apk/res/android"
+<FrameLayout xmlns:android="http://schemas.android.com/apk/res/android"
     android:id="@+id/pip_dismiss_view"
     android:layout_width="match_parent"
     android:layout_height="match_parent"
-    android:background="@drawable/pip_dismiss_background"
-    android:foreground="@drawable/pip_dismiss"
-    android:alpha="0"
-    android:forceHasOverlappingRendering="false" />
+    android:alpha="0">
+
+    <!-- The height of the below view needs to be animated from a window
+         so it needs to be in a container to resize smoothly -->
+    <View
+        android:id="@+id/gradient_view"
+        android:layout_width="match_parent"
+        android:layout_height="match_parent"
+        android:layout_gravity="bottom"
+        android:background="@drawable/pip_dismiss_background" />
+
+    <LinearLayout
+        android:id="@+id/pip_dismiss_container"
+        android:layout_width="wrap_content"
+        android:layout_height="wrap_content"
+        android:layout_gravity="bottom|center_horizontal"
+        android:orientation="horizontal"
+        android:paddingBottom="32dp" >
+
+        <ImageView
+            android:id="@+id/pip_dismiss_icon"
+            android:layout_width="24dp"
+            android:layout_height="24dp"
+            android:padding="2dp"
+            android:src="@drawable/pip_dismiss"
+            android:tint="#FFFFFFFF" />
+
+        <TextView
+            android:id="@+id/pip_dismiss_text"
+            android:layout_width="wrap_content"
+            android:layout_height="wrap_content"
+            android:text="@string/pip_phone_close"
+            android:textColor="#FFFFFFFF"
+            android:textSize="16sp" />
+    </LinearLayout>
+
+</FrameLayout>
\ No newline at end of file
diff --git a/packages/SystemUI/res/layout/pip_menu_activity.xml b/packages/SystemUI/res/layout/pip_menu_activity.xml
index cf65f4aa830bb..0f5ca9bdf2fc5 100644
--- a/packages/SystemUI/res/layout/pip_menu_activity.xml
+++ b/packages/SystemUI/res/layout/pip_menu_activity.xml
@@ -27,7 +27,7 @@
         android:layout_height="48dp"
         android:layout_gravity="top|end"
         android:padding="10dp"
-        android:contentDescription="@string/pip_phone_dismiss"
+        android:contentDescription="@string/pip_phone_close"
         android:src="@drawable/ic_close_white"
         android:background="?android:selectableItemBackgroundBorderless" />
 
diff --git a/packages/SystemUI/res/values/strings.xml b/packages/SystemUI/res/values/strings.xml
index d3e965aedc985..0e488655d31d3 100644
--- a/packages/SystemUI/res/values/strings.xml
+++ b/packages/SystemUI/res/values/strings.xml
@@ -1746,8 +1746,8 @@
     <!-- Label for PIP action to Minimize the PIP [CHAR LIMIT=25] -->
     <string name="pip_phone_minimize">Minimize</string>
 
-    <!-- Label for PIP action to Dismiss the PIP -->
-    <string name="pip_phone_dismiss">Dismiss</string>
+    <!-- Label for PIP the drag to close zone [CHAR LIMIT=NONE]-->
+    <string name="pip_phone_close">Close</string>
 
     <!-- PIP section of the tuner. Non-translatable since it should
         not appear on production builds ever. -->
diff --git a/packages/SystemUI/src/com/android/systemui/pip/phone/PipDismissViewController.java b/packages/SystemUI/src/com/android/systemui/pip/phone/PipDismissViewController.java
index a7ac719149f9a..e1821761ba7ad 100644
--- a/packages/SystemUI/src/com/android/systemui/pip/phone/PipDismissViewController.java
+++ b/packages/SystemUI/src/com/android/systemui/pip/phone/PipDismissViewController.java
@@ -17,13 +17,19 @@
 package com.android.systemui.pip.phone;
 
 import android.content.Context;
+import android.content.res.Resources;
 import android.graphics.PixelFormat;
+import android.graphics.Point;
+import android.graphics.PointF;
 import android.graphics.Rect;
 import android.view.Gravity;
 import android.view.LayoutInflater;
+import android.view.TouchDelegate;
 import android.view.View;
 import android.view.View.OnLayoutChangeListener;
 import android.view.WindowManager;
+import android.view.WindowManager.LayoutParams;
+import android.widget.FrameLayout;
 
 import com.android.systemui.Interpolators;
 import com.android.systemui.R;
@@ -35,12 +41,22 @@ public class PipDismissViewController {
     private static final int SHOW_TARGET_DELAY = 100;
     private static final int SHOW_TARGET_DURATION = 200;
 
+    private static final float DISMISS_TEXT_MAX_SCALE = 2f;
+    private static final float DISMISS_GRADIENT_MIN_HEIGHT_PERCENT = 0.33f;
+    private static final float DISMISS_GRADIENT_MAX_HEIGHT_PERCENT = 0.5f;
+    private static final float DISMISS_THRESHOLD = 0.55f;
+
     private Context mContext;
     private WindowManager mWindowManager;
 
     private View mDismissView;
     private Rect mDismissTargetScreenBounds = new Rect();
 
+    private View mDismissContainer;
+    private View mGradientView;
+    private float mMinHeight;
+    private float mMaxHeight;
+
     public PipDismissViewController(Context context) {
         mContext = context;
         mWindowManager = (WindowManager) context.getSystemService(Context.WINDOW_SERVICE);
@@ -51,25 +67,37 @@ public class PipDismissViewController {
      */
     public void createDismissTarget() {
         if (mDismissView == null) {
+            // Determine sizes for the gradient
+            Point windowSize = new Point();
+            mWindowManager.getDefaultDisplay().getSize(windowSize);
+            mMinHeight = windowSize.y * DISMISS_GRADIENT_MIN_HEIGHT_PERCENT;
+            mMaxHeight = windowSize.y * DISMISS_GRADIENT_MAX_HEIGHT_PERCENT;
+
             // Create a new view for the dismiss target
-            int dismissTargetSize = mContext.getResources().getDimensionPixelSize(
-                    R.dimen.pip_dismiss_target_size);
             LayoutInflater inflater = LayoutInflater.from(mContext);
             mDismissView = inflater.inflate(R.layout.pip_dismiss_view, null);
-            mDismissView.addOnLayoutChangeListener(new OnLayoutChangeListener() {
+            mGradientView = mDismissView.findViewById(R.id.gradient_view);
+            FrameLayout.LayoutParams glp = (android.widget.FrameLayout.LayoutParams) mGradientView
+                    .getLayoutParams();
+            glp.height = (int) mMaxHeight;
+            mGradientView.setLayoutParams(glp);
+            mGradientView.setPivotY(windowSize.y);
+            mGradientView.setScaleY(mMaxHeight / mMinHeight); // Set to min height via scaling
+            mDismissContainer = mDismissView.findViewById(R.id.pip_dismiss_container);
+            mDismissContainer.addOnLayoutChangeListener(new OnLayoutChangeListener() {
                 @Override
                 public void onLayoutChange(View v, int left, int top, int right, int bottom,
                         int oldLeft, int oldTop, int oldRight, int oldBottom) {
-                    if (mDismissView != null) {
-                        mDismissView.getBoundsOnScreen(mDismissTargetScreenBounds);
+                    if (mDismissContainer != null) {
+                        mDismissContainer.getBoundsOnScreen(mDismissTargetScreenBounds);
                     }
                 }
             });
 
             // Add the target to the window
             WindowManager.LayoutParams lp =  new WindowManager.LayoutParams(
-                    dismissTargetSize,
-                    dismissTargetSize,
+                    windowSize.x,
+                    (int) mMaxHeight,
                     WindowManager.LayoutParams.TYPE_SYSTEM_DIALOG,
                     WindowManager.LayoutParams.FLAG_LAYOUT_IN_SCREEN
                             | WindowManager.LayoutParams.FLAG_NOT_TOUCHABLE
@@ -84,7 +112,8 @@ public class PipDismissViewController {
     /**
      * Shows the dismiss target.
      */
-    public void showDismissTarget() {
+    public void showDismissTarget(Rect pinnedStack) {
+        updateDismissTarget(pinnedStack);
         mDismissView.animate()
                 .alpha(1f)
                 .setInterpolator(Interpolators.LINEAR_OUT_SLOW_IN)
@@ -114,6 +143,36 @@ public class PipDismissViewController {
         }
     }
 
+    /**
+     * Updates the appearance of the dismiss target based on how close the PIP is.
+     */
+    public void updateDismissTarget(Rect pinnedStack) {
+        // As PIP moves over / away from delete target it grows / shrinks
+        final float scalePercent = calculateDistancePercent(pinnedStack);
+        final float newScale = 1 + (DISMISS_TEXT_MAX_SCALE - 1) * scalePercent;
+        final float minGradientScale = mMinHeight / mMaxHeight;
+        final float newHeight = Math.max(minGradientScale, scalePercent);
+        mGradientView.setScaleY(newHeight);
+        mDismissContainer.setScaleX(newScale);
+        mDismissContainer.setScaleY(newScale);
+    }
+
+    /**
+     * @return the percentage of distance the PIP is away from the dismiss target point.
+     */
+    private float calculateDistancePercent(Rect pinnedStack) {
+        final int distance = mDismissTargetScreenBounds.height();
+        final int textX = mDismissTargetScreenBounds.centerX();
+        final int textY = mDismissTargetScreenBounds.bottom;
+        final float pipCurrX = pinnedStack.centerX();
+        final float pipCurrY = pinnedStack.bottom;
+        final float currentDistance = PointF.length(pipCurrX - textX, pipCurrY - textY);
+        if (currentDistance <= distance) {
+            return 1 - (currentDistance / distance);
+        }
+        return 0;
+    }
+
     /**
      * @return the dismiss target screen bounds.
      */
@@ -121,4 +180,10 @@ public class PipDismissViewController {
         return mDismissTargetScreenBounds;
     }
 
+    /**
+     * @return whether the PIP is positioned on the dismiss target enough to be dismissed.
+     */
+    public boolean shouldDismiss(Rect pinnedStack) {
+        return calculateDistancePercent(pinnedStack) >= DISMISS_THRESHOLD;
+    }
 }
diff --git a/packages/SystemUI/src/com/android/systemui/pip/phone/PipTouchHandler.java b/packages/SystemUI/src/com/android/systemui/pip/phone/PipTouchHandler.java
index 30aa03cb2cebb..44572f7e025d9 100644
--- a/packages/SystemUI/src/com/android/systemui/pip/phone/PipTouchHandler.java
+++ b/packages/SystemUI/src/com/android/systemui/pip/phone/PipTouchHandler.java
@@ -33,6 +33,7 @@ import android.content.Context;
 import android.graphics.Point;
 import android.graphics.PointF;
 import android.graphics.Rect;
+import android.os.Handler;
 import android.os.Looper;
 import android.os.RemoteException;
 import android.util.Log;
@@ -71,6 +72,7 @@ public class PipTouchHandler implements TunerService.Tunable {
     private static final int DISMISS_STACK_DURATION = 375;
     private static final int EXPAND_STACK_DURATION = 225;
     private static final int MINIMIZE_STACK_MAX_DURATION = 200;
+    private static final int SHOW_DISMISS_AFFORDANCE_DELAY = 200;
 
     // The fraction of the stack width that the user has to drag offscreen to minimize the PIP
     private static final float MINIMIZE_OFFSCREEN_FRACTION = 0.2f;
@@ -105,6 +107,16 @@ public class PipTouchHandler implements TunerService.Tunable {
         }
     };
 
+    private Handler mHandler = new Handler();
+    private Runnable mShowDismissAffordance = new Runnable() {
+        @Override
+        public void run() {
+            if (mEnableDragToDismiss) {
+                mDismissViewController.showDismissTarget(mPinnedStackBounds);
+            }
+        }
+    };
+
     // Behaviour states
     private boolean mIsTappingThrough;
     private boolean mIsMinimized;
@@ -193,7 +205,7 @@ public class PipTouchHandler implements TunerService.Tunable {
         mTouchState = new PipTouchState(mViewConfig);
         mFlingAnimationUtils = new FlingAnimationUtils(context, 2f);
         mGestures = new PipTouchGesture[] {
-                mDragToDismissGesture, mDefaultMovementGesture
+                mDefaultMovementGesture
         };
         mMotionHelper = new PipMotionHelper(BackgroundThread.getHandler());
         registerInputConsumer();
@@ -521,6 +533,9 @@ public class PipTouchHandler implements TunerService.Tunable {
     private void movePinnedStack(Rect bounds) {
         if (!bounds.equals(mPinnedStackBounds)) {
             mPinnedStackBounds.set(bounds);
+            if (mEnableDragToDismiss) {
+                mDismissViewController.updateDismissTarget(bounds);
+            }
             mMotionHelper.resizeToBounds(mPinnedStackBounds);
         }
     }
@@ -562,58 +577,26 @@ public class PipTouchHandler implements TunerService.Tunable {
         return PointF.length(r1.left - r2.left, r1.top - r2.top);
     }
 
-    /**
-     * Gesture controlling dragging over a target to dismiss the PIP.
-     */
-    private PipTouchGesture mDragToDismissGesture = new PipTouchGesture() {
-        @Override
-        public void onDown(PipTouchState touchState) {
-            if (mEnableDragToDismiss) {
-                // TODO: Consider setting a timer such at after X time, we show the dismiss
-                //       target if the user hasn't already dragged some distance
-                mDismissViewController.createDismissTarget();
-            }
-        }
-
-        @Override
-        boolean onMove(PipTouchState touchState) {
-            if (mEnableDragToDismiss && touchState.startedDragging()) {
-                mDismissViewController.showDismissTarget();
-            }
-            return false;
-        }
-
-        @Override
-        public boolean onUp(PipTouchState touchState) {
-            if (mEnableDragToDismiss) {
-                try {
-                    if (touchState.isDragging()) {
-                        Rect dismissBounds = mDismissViewController.getDismissBounds();
-                        PointF lastTouch = touchState.getLastTouchPosition();
-                        if (dismissBounds.contains((int) lastTouch.x, (int) lastTouch.y)) {
-                            animateDismissPinnedStack(dismissBounds);
-                            MetricsLogger.action(mContext,
-                                    MetricsEvent.ACTION_PICTURE_IN_PICTURE_DISMISSED,
-                                            METRIC_VALUE_DISMISSED_BY_DRAG);
-                            return true;
-                        }
-                    }
-                } finally {
-                    mDismissViewController.destroyDismissTarget();
-                }
-            }
-            return false;
-        }
-    };
-
-    /**** Gestures ****/
-
     /**
      * Gesture controlling normal movement of the PIP.
      */
     private PipTouchGesture mDefaultMovementGesture = new PipTouchGesture() {
+
+        @Override
+        public void onDown(PipTouchState touchState) {
+            if (mEnableDragToDismiss) {
+                mDismissViewController.createDismissTarget();
+                mHandler.postDelayed(mShowDismissAffordance, SHOW_DISMISS_AFFORDANCE_DELAY);
+            }
+        }
+
         @Override
         boolean onMove(PipTouchState touchState) {
+            if (touchState.startedDragging() && mEnableDragToDismiss) {
+                mHandler.removeCallbacks(mShowDismissAffordance);
+                mDismissViewController.showDismissTarget(mPinnedStackBounds);
+            }
+
             if (touchState.isDragging()) {
                 // Move the pinned stack freely
                 PointF lastDelta = touchState.getLastTouchDelta();
@@ -635,6 +618,23 @@ public class PipTouchHandler implements TunerService.Tunable {
 
         @Override
         public boolean onUp(PipTouchState touchState) {
+            try {
+                if (mEnableDragToDismiss) {
+                    mHandler.removeCallbacks(mShowDismissAffordance);
+                    PointF vel = mTouchState.getVelocity();
+                    final float velocity = PointF.length(vel.x, vel.y);
+                    if (touchState.isDragging()
+                            && velocity < mFlingAnimationUtils.getMinVelocityPxPerSecond()) {
+                        if (mDismissViewController.shouldDismiss(mPinnedStackBounds)) {
+                            Rect dismissBounds = mDismissViewController.getDismissBounds();
+                            animateDismissPinnedStack(dismissBounds);
+                            return true;
+                        }
+                    }
+                }
+            } finally {
+                mDismissViewController.destroyDismissTarget();
+            }
             if (touchState.isDragging()) {
                 PointF vel = mTouchState.getVelocity();
                 if (!mIsMinimized && (shouldMinimizedPinnedStack()