diff --git a/packages/SystemUI/src/com/android/systemui/dreams/DreamOverlayContainerViewController.java b/packages/SystemUI/src/com/android/systemui/dreams/DreamOverlayContainerViewController.java
index 995df19f64c2a..330bd6cb82812 100644
--- a/packages/SystemUI/src/com/android/systemui/dreams/DreamOverlayContainerViewController.java
+++ b/packages/SystemUI/src/com/android/systemui/dreams/DreamOverlayContainerViewController.java
@@ -27,6 +27,9 @@ import com.android.systemui.dagger.qualifiers.Main;
 import com.android.systemui.dreams.complication.ComplicationHostViewController;
 import com.android.systemui.dreams.dagger.DreamOverlayComponent;
 import com.android.systemui.dreams.dagger.DreamOverlayModule;
+import com.android.systemui.statusbar.BlurUtils;
+import com.android.systemui.statusbar.phone.KeyguardBouncer;
+import com.android.systemui.statusbar.phone.StatusBarKeyguardViewManager;
 import com.android.systemui.util.ViewController;
 
 import javax.inject.Inject;
@@ -38,6 +41,8 @@ import javax.inject.Named;
 @DreamOverlayComponent.DreamOverlayScope
 public class DreamOverlayContainerViewController extends ViewController<DreamOverlayContainerView> {
     private final DreamOverlayStatusBarViewController mStatusBarViewController;
+    private final StatusBarKeyguardViewManager mStatusBarKeyguardViewManager;
+    private final BlurUtils mBlurUtils;
 
     private final ComplicationHostViewController mComplicationHostViewController;
 
@@ -60,12 +65,57 @@ public class DreamOverlayContainerViewController extends ViewController<DreamOve
 
     private long mJitterStartTimeMillis;
 
+    private boolean mBouncerAnimating;
+
+    private final KeyguardBouncer.BouncerExpansionCallback mBouncerExpansionCallback =
+            new KeyguardBouncer.BouncerExpansionCallback() {
+
+                @Override
+                public void onStartingToShow() {
+                    mBouncerAnimating = true;
+                }
+
+                @Override
+                public void onStartingToHide() {
+                    mBouncerAnimating = true;
+                }
+
+                @Override
+                public void onFullyHidden() {
+                    mBouncerAnimating = false;
+                }
+
+                @Override
+                public void onFullyShown() {
+                    mBouncerAnimating = false;
+                }
+
+                @Override
+                public void onExpansionChanged(float bouncerHideAmount) {
+                    if (!mBouncerAnimating) return;
+                    final int blurRadius =
+                            (int) mBlurUtils.blurRadiusOfRatio(1 - bouncerHideAmount);
+                    updateTransitionState(blurRadius, bouncerHideAmount);
+                }
+
+                @Override
+                public void onVisibilityChanged(boolean isVisible) {
+                    // The bouncer may be hidden abruptly without triggering onExpansionChanged.
+                    // In this case, we should reset the transition state.
+                    if (!isVisible) {
+                        updateTransitionState(0, 1f);
+                    }
+                }
+            };
+
     @Inject
     public DreamOverlayContainerViewController(
             DreamOverlayContainerView containerView,
             ComplicationHostViewController complicationHostViewController,
             @Named(DreamOverlayModule.DREAM_OVERLAY_CONTENT_VIEW) ViewGroup contentView,
             DreamOverlayStatusBarViewController statusBarViewController,
+            StatusBarKeyguardViewManager statusBarKeyguardViewManager,
+            BlurUtils blurUtils,
             @Main Handler handler,
             @Named(DreamOverlayModule.MAX_BURN_IN_OFFSET) int maxBurnInOffset,
             @Named(DreamOverlayModule.BURN_IN_PROTECTION_UPDATE_INTERVAL) long
@@ -74,6 +124,8 @@ public class DreamOverlayContainerViewController extends ViewController<DreamOve
         super(containerView);
         mDreamOverlayContentView = contentView;
         mStatusBarViewController = statusBarViewController;
+        mStatusBarKeyguardViewManager = statusBarKeyguardViewManager;
+        mBlurUtils = blurUtils;
 
         mComplicationHostViewController = complicationHostViewController;
         final View view = mComplicationHostViewController.getView();
@@ -98,11 +150,19 @@ public class DreamOverlayContainerViewController extends ViewController<DreamOve
     protected void onViewAttached() {
         mJitterStartTimeMillis = System.currentTimeMillis();
         mHandler.postDelayed(this::updateBurnInOffsets, mBurnInProtectionUpdateInterval);
+        final KeyguardBouncer bouncer = mStatusBarKeyguardViewManager.getBouncer();
+        if (bouncer != null) {
+            bouncer.addBouncerExpansionCallback(mBouncerExpansionCallback);
+        }
     }
 
     @Override
     protected void onViewDetached() {
         mHandler.removeCallbacks(this::updateBurnInOffsets);
+        final KeyguardBouncer bouncer = mStatusBarKeyguardViewManager.getBouncer();
+        if (bouncer != null) {
+            bouncer.removeBouncerExpansionCallback(mBouncerExpansionCallback);
+        }
     }
 
     View getContainerView() {
@@ -131,4 +191,9 @@ public class DreamOverlayContainerViewController extends ViewController<DreamOve
 
         mHandler.postDelayed(this::updateBurnInOffsets, mBurnInProtectionUpdateInterval);
     }
+
+    private void updateTransitionState(int blurRadiusPixels, float alpha) {
+        mBlurUtils.applyBlur(mView.getViewRootImpl(), blurRadiusPixels, false);
+        mView.setAlpha(alpha);
+    }
 }
diff --git a/packages/SystemUI/src/com/android/systemui/statusbar/phone/KeyguardBouncer.java b/packages/SystemUI/src/com/android/systemui/statusbar/phone/KeyguardBouncer.java
index 95a2a6e75e7a8..7d96240d0b36e 100644
--- a/packages/SystemUI/src/com/android/systemui/statusbar/phone/KeyguardBouncer.java
+++ b/packages/SystemUI/src/com/android/systemui/statusbar/phone/KeyguardBouncer.java
@@ -606,11 +606,47 @@ public class KeyguardBouncer {
         mResetCallbacks.remove(callback);
     }
 
+    /**
+     * Adds a callback to listen to bouncer expansion updates.
+     */
+    public void addBouncerExpansionCallback(BouncerExpansionCallback callback) {
+        if (!mExpansionCallbacks.contains(callback)) {
+            mExpansionCallbacks.add(callback);
+        }
+    }
+
+    /**
+     * Removes a previously added callback. If the callback was never added, this methood
+     * does nothing.
+     */
+    public void removeBouncerExpansionCallback(BouncerExpansionCallback callback) {
+        mExpansionCallbacks.remove(callback);
+    }
+
     public interface BouncerExpansionCallback {
-        void onFullyShown();
-        void onStartingToHide();
-        void onStartingToShow();
-        void onFullyHidden();
+        /**
+         * Invoked when the bouncer expansion reaches {@link KeyguardBouncer#EXPANSION_VISIBLE}.
+         */
+        default void onFullyShown() {
+        }
+
+        /**
+         * Invoked when the bouncer is starting to transition to a hidden state.
+         */
+        default void onStartingToHide() {
+        }
+
+        /**
+         * Invoked when the bouncer is starting to transition to a visible state.
+         */
+        default void onStartingToShow() {
+        }
+
+        /**
+         * Invoked when the bouncer expansion reaches {@link KeyguardBouncer#EXPANSION_HIDDEN}.
+         */
+        default void onFullyHidden() {
+        }
 
         /**
          * From 0f {@link KeyguardBouncer#EXPANSION_VISIBLE} when fully visible
diff --git a/packages/SystemUI/tests/src/com/android/systemui/dreams/DreamOverlayContainerViewControllerTest.java b/packages/SystemUI/tests/src/com/android/systemui/dreams/DreamOverlayContainerViewControllerTest.java
index dcbdea0ac5a36..fa6288fb428c4 100644
--- a/packages/SystemUI/tests/src/com/android/systemui/dreams/DreamOverlayContainerViewControllerTest.java
+++ b/packages/SystemUI/tests/src/com/android/systemui/dreams/DreamOverlayContainerViewControllerTest.java
@@ -17,7 +17,10 @@
 package com.android.systemui.dreams;
 
 import static org.mockito.ArgumentMatchers.any;
+import static org.mockito.ArgumentMatchers.anyFloat;
+import static org.mockito.ArgumentMatchers.anyInt;
 import static org.mockito.ArgumentMatchers.eq;
+import static org.mockito.Mockito.never;
 import static org.mockito.Mockito.verify;
 import static org.mockito.Mockito.when;
 
@@ -25,12 +28,17 @@ import android.content.res.Resources;
 import android.os.Handler;
 import android.testing.AndroidTestingRunner;
 import android.view.ViewGroup;
+import android.view.ViewRootImpl;
 import android.view.ViewTreeObserver;
 
 import androidx.test.filters.SmallTest;
 
 import com.android.systemui.SysuiTestCase;
 import com.android.systemui.dreams.complication.ComplicationHostViewController;
+import com.android.systemui.statusbar.BlurUtils;
+import com.android.systemui.statusbar.phone.KeyguardBouncer;
+import com.android.systemui.statusbar.phone.KeyguardBouncer.BouncerExpansionCallback;
+import com.android.systemui.statusbar.phone.StatusBarKeyguardViewManager;
 
 import org.junit.Before;
 import org.junit.Test;
@@ -67,6 +75,18 @@ public class DreamOverlayContainerViewControllerTest extends SysuiTestCase {
     @Mock
     Handler mHandler;
 
+    @Mock
+    BlurUtils mBlurUtils;
+
+    @Mock
+    StatusBarKeyguardViewManager mStatusBarKeyguardViewManager;
+
+    @Mock
+    KeyguardBouncer mBouncer;
+
+    @Mock
+    ViewRootImpl mViewRoot;
+
     DreamOverlayContainerViewController mController;
 
     @Before
@@ -75,12 +95,16 @@ public class DreamOverlayContainerViewControllerTest extends SysuiTestCase {
 
         when(mDreamOverlayContainerView.getResources()).thenReturn(mResources);
         when(mDreamOverlayContainerView.getViewTreeObserver()).thenReturn(mViewTreeObserver);
+        when(mStatusBarKeyguardViewManager.getBouncer()).thenReturn(mBouncer);
+        when(mDreamOverlayContainerView.getViewRootImpl()).thenReturn(mViewRoot);
 
         mController = new DreamOverlayContainerViewController(
                 mDreamOverlayContainerView,
                 mComplicationHostViewController,
                 mDreamOverlayContentView,
                 mDreamOverlayStatusBarViewController,
+                mStatusBarKeyguardViewManager,
+                mBlurUtils,
                 mHandler,
                 MAX_BURN_IN_OFFSET,
                 BURN_IN_PROTECTION_UPDATE_INTERVAL,
@@ -125,4 +149,34 @@ public class DreamOverlayContainerViewControllerTest extends SysuiTestCase {
         runnableCaptor.getValue().run();
         verify(mHandler).postDelayed(runnableCaptor.getValue(), BURN_IN_PROTECTION_UPDATE_INTERVAL);
     }
+
+    @Test
+    public void testBouncerAnimation_doesNotApply() {
+        final ArgumentCaptor<BouncerExpansionCallback> bouncerExpansionCaptor =
+                ArgumentCaptor.forClass(BouncerExpansionCallback.class);
+        mController.onViewAttached();
+        verify(mBouncer).addBouncerExpansionCallback(bouncerExpansionCaptor.capture());
+
+        bouncerExpansionCaptor.getValue().onExpansionChanged(0.5f);
+        verify(mBlurUtils, never()).applyBlur(eq(mViewRoot), anyInt(), eq(false));
+        verify(mDreamOverlayContainerView, never()).setAlpha(anyFloat());
+    }
+
+    @Test
+    public void testBouncerAnimation_updateBlurAndAlpha() {
+        final ArgumentCaptor<BouncerExpansionCallback> bouncerExpansionCaptor =
+                ArgumentCaptor.forClass(BouncerExpansionCallback.class);
+        mController.onViewAttached();
+        verify(mBouncer).addBouncerExpansionCallback(bouncerExpansionCaptor.capture());
+
+        final float blurRadius = 1337f;
+        when(mBlurUtils.blurRadiusOfRatio(anyFloat())).thenReturn(blurRadius);
+
+        bouncerExpansionCaptor.getValue().onStartingToShow();
+        final float bouncerHideAmount = 0.1f;
+        bouncerExpansionCaptor.getValue().onExpansionChanged(bouncerHideAmount);
+        verify(mBlurUtils).blurRadiusOfRatio(1 - bouncerHideAmount);
+        verify(mBlurUtils).applyBlur(mViewRoot, (int) blurRadius, false);
+        verify(mDreamOverlayContainerView).setAlpha(bouncerHideAmount);
+    }
 }
diff --git a/packages/SystemUI/tests/src/com/android/systemui/statusbar/phone/KeyguardBouncerTest.java b/packages/SystemUI/tests/src/com/android/systemui/statusbar/phone/KeyguardBouncerTest.java
index f391eff11ed22..4986792373dbc 100644
--- a/packages/SystemUI/tests/src/com/android/systemui/statusbar/phone/KeyguardBouncerTest.java
+++ b/packages/SystemUI/tests/src/com/android/systemui/statusbar/phone/KeyguardBouncerTest.java
@@ -16,6 +16,9 @@
 
 package com.android.systemui.statusbar.phone;
 
+import static com.android.systemui.statusbar.phone.KeyguardBouncer.EXPANSION_HIDDEN;
+import static com.android.systemui.statusbar.phone.KeyguardBouncer.EXPANSION_VISIBLE;
+
 import static com.google.common.truth.Truth.assertThat;
 
 import static org.mockito.ArgumentMatchers.any;
@@ -24,9 +27,11 @@ import static org.mockito.ArgumentMatchers.anyInt;
 import static org.mockito.ArgumentMatchers.anyLong;
 import static org.mockito.ArgumentMatchers.eq;
 import static org.mockito.Mockito.doAnswer;
+import static org.mockito.Mockito.mock;
 import static org.mockito.Mockito.never;
 import static org.mockito.Mockito.reset;
 import static org.mockito.Mockito.spy;
+import static org.mockito.Mockito.times;
 import static org.mockito.Mockito.verify;
 import static org.mockito.Mockito.verifyNoMoreInteractions;
 import static org.mockito.Mockito.verifyZeroInteractions;
@@ -53,6 +58,7 @@ import com.android.systemui.SysuiTestCase;
 import com.android.systemui.classifier.FalsingCollector;
 import com.android.systemui.keyguard.DismissCallbackRegistry;
 import com.android.systemui.plugins.ActivityStarter.OnDismissAction;
+import com.android.systemui.statusbar.phone.KeyguardBouncer.BouncerExpansionCallback;
 import com.android.systemui.statusbar.policy.KeyguardStateController;
 
 import org.junit.Assert;
@@ -62,6 +68,7 @@ import org.junit.Test;
 import org.junit.runner.RunWith;
 import org.mockito.ArgumentCaptor;
 import org.mockito.Mock;
+import org.mockito.Mockito;
 import org.mockito.junit.MockitoJUnit;
 import org.mockito.junit.MockitoRule;
 
@@ -79,7 +86,7 @@ public class KeyguardBouncerTest extends SysuiTestCase {
     @Mock
     private KeyguardHostViewController mKeyguardHostViewController;
     @Mock
-    private KeyguardBouncer.BouncerExpansionCallback mExpansionCallback;
+    private BouncerExpansionCallback mExpansionCallback;
     @Mock
     private KeyguardUpdateMonitor mKeyguardUpdateMonitor;
     @Mock
@@ -197,11 +204,11 @@ public class KeyguardBouncerTest extends SysuiTestCase {
         mBouncer.ensureView();
         mBouncer.setExpansion(0.5f);
 
-        mBouncer.setExpansion(KeyguardBouncer.EXPANSION_HIDDEN);
+        mBouncer.setExpansion(EXPANSION_HIDDEN);
         verify(mFalsingCollector).onBouncerHidden();
         verify(mExpansionCallback).onFullyHidden();
 
-        mBouncer.setExpansion(KeyguardBouncer.EXPANSION_VISIBLE);
+        mBouncer.setExpansion(EXPANSION_VISIBLE);
         verify(mFalsingCollector).onBouncerShown();
         verify(mExpansionCallback).onFullyShown();
 
@@ -410,11 +417,11 @@ public class KeyguardBouncerTest extends SysuiTestCase {
     @Test
     public void testInTransit_whenTranslation() {
         mBouncer.show(true);
-        mBouncer.setExpansion(KeyguardBouncer.EXPANSION_HIDDEN);
+        mBouncer.setExpansion(EXPANSION_HIDDEN);
         assertThat(mBouncer.inTransit()).isFalse();
         mBouncer.setExpansion(0.5f);
         assertThat(mBouncer.inTransit()).isTrue();
-        mBouncer.setExpansion(KeyguardBouncer.EXPANSION_VISIBLE);
+        mBouncer.setExpansion(EXPANSION_VISIBLE);
         assertThat(mBouncer.inTransit()).isFalse();
     }
 
@@ -435,4 +442,37 @@ public class KeyguardBouncerTest extends SysuiTestCase {
 
         verify(mKeyguardHostViewController).updateKeyguardPosition(1.0f);
     }
+
+    @Test
+    public void testExpansion_notifiesCallback() {
+        mBouncer.ensureView();
+        mBouncer.setExpansion(0.5f);
+
+        final BouncerExpansionCallback callback = mock(BouncerExpansionCallback.class);
+        mBouncer.addBouncerExpansionCallback(callback);
+
+        mBouncer.setExpansion(EXPANSION_HIDDEN);
+        verify(callback).onFullyHidden();
+        verify(callback).onExpansionChanged(EXPANSION_HIDDEN);
+
+        Mockito.clearInvocations(callback);
+        mBouncer.setExpansion(EXPANSION_VISIBLE);
+        verify(callback).onFullyShown();
+        verify(callback).onExpansionChanged(EXPANSION_VISIBLE);
+
+        Mockito.clearInvocations(callback);
+        float bouncerHideAmount = 0.9f;
+        // Ensure the callback only triggers once despite multiple calls to setExpansion
+        // with the same value.
+        mBouncer.setExpansion(bouncerHideAmount);
+        mBouncer.setExpansion(bouncerHideAmount);
+        verify(callback, times(1)).onStartingToHide();
+        verify(callback, times(1)).onExpansionChanged(bouncerHideAmount);
+
+        Mockito.clearInvocations(callback);
+        mBouncer.removeBouncerExpansionCallback(callback);
+        bouncerHideAmount = 0.5f;
+        mBouncer.setExpansion(bouncerHideAmount);
+        verify(callback, never()).onExpansionChanged(bouncerHideAmount);
+    }
 }