diff --git a/libs/WindowManager/Shell/src/com/android/wm/shell/pip/phone/PipController.java b/libs/WindowManager/Shell/src/com/android/wm/shell/pip/phone/PipController.java
index 92c0099c65571..ac02075a49d8a 100644
--- a/libs/WindowManager/Shell/src/com/android/wm/shell/pip/phone/PipController.java
+++ b/libs/WindowManager/Shell/src/com/android/wm/shell/pip/phone/PipController.java
@@ -27,6 +27,7 @@ import static com.android.wm.shell.pip.PipAnimationController.TRANSITION_DIRECTI
 import static com.android.wm.shell.pip.PipAnimationController.TRANSITION_DIRECTION_LEAVE_PIP;
 import static com.android.wm.shell.pip.PipAnimationController.TRANSITION_DIRECTION_LEAVE_PIP_TO_SPLIT_SCREEN;
 import static com.android.wm.shell.pip.PipAnimationController.TRANSITION_DIRECTION_REMOVE_STACK;
+import static com.android.wm.shell.pip.PipAnimationController.TRANSITION_DIRECTION_SAME;
 import static com.android.wm.shell.pip.PipAnimationController.TRANSITION_DIRECTION_SNAP_AFTER_RESIZE;
 import static com.android.wm.shell.pip.PipAnimationController.TRANSITION_DIRECTION_TO_PIP;
 import static com.android.wm.shell.pip.PipAnimationController.TRANSITION_DIRECTION_USER_RESIZE;
@@ -84,6 +85,7 @@ import com.android.wm.shell.pip.PipSnapAlgorithm;
 import com.android.wm.shell.pip.PipTaskOrganizer;
 import com.android.wm.shell.pip.PipTransitionController;
 import com.android.wm.shell.pip.PipUtils;
+import com.android.wm.shell.transition.Transitions;
 
 import java.io.PrintWriter;
 import java.util.Objects;
@@ -455,11 +457,18 @@ public class PipController implements PipTransitionController.PipTransitionCallb
             return;
         }
         Runnable updateDisplayLayout = () -> {
+            final boolean fromRotation = Transitions.ENABLE_SHELL_TRANSITIONS
+                    && mPipBoundsState.getDisplayLayout().rotation() != layout.rotation();
             mPipBoundsState.setDisplayLayout(layout);
+            final WindowContainerTransaction wct =
+                    fromRotation ? new WindowContainerTransaction() : null;
             updateMovementBounds(null /* toBounds */,
-                    false /* fromRotation */, false /* fromImeAdjustment */,
+                    fromRotation, false /* fromImeAdjustment */,
                     false /* fromShelfAdjustment */,
-                    null /* windowContainerTransaction */);
+                    wct /* windowContainerTransaction */);
+            if (wct != null) {
+                mPipTaskOrganizer.applyFinishBoundsResize(wct, TRANSITION_DIRECTION_SAME);
+            }
         };
 
         if (mPipTaskOrganizer.isInPip() && saveRestoreSnapFraction) {
diff --git a/libs/WindowManager/Shell/tests/flicker/src/com/android/wm/shell/flicker/pip/PipRotationTest.kt b/libs/WindowManager/Shell/tests/flicker/src/com/android/wm/shell/flicker/pip/PipRotationTest.kt
index e0ec757783422..45cb152e5b0d1 100644
--- a/libs/WindowManager/Shell/tests/flicker/src/com/android/wm/shell/flicker/pip/PipRotationTest.kt
+++ b/libs/WindowManager/Shell/tests/flicker/src/com/android/wm/shell/flicker/pip/PipRotationTest.kt
@@ -32,6 +32,8 @@ import com.android.server.wm.flicker.helpers.setRotation
 import com.android.server.wm.flicker.navBarLayerRotatesAndScales
 import com.android.server.wm.flicker.startRotation
 import com.android.server.wm.flicker.statusBarLayerRotatesScales
+import com.android.server.wm.traces.common.Region
+import com.android.server.wm.traces.parser.minus
 import com.android.wm.shell.flicker.helpers.FixedAppHelper
 import org.junit.FixMethodOrder
 import org.junit.Test
@@ -94,7 +96,10 @@ class PipRotationTest(testSpec: FlickerTestParameter) : PipTransition(testSpec)
     @Test
     fun appLayerRotates_StartingBounds() {
         testSpec.assertLayersStart {
-            visibleRegion(fixedApp.component).coversExactly(startingBounds)
+            val pipRegion = visibleRegion(pipApp.component).region
+            val expectedWithoutPip = Region(startingBounds.bounds.left, startingBounds.bounds.top,
+                    startingBounds.bounds.right, startingBounds.bounds.bottom).minus(pipRegion)
+            visibleRegion(fixedApp.component).coversExactly(expectedWithoutPip)
             visibleRegion(pipApp.component).coversAtMost(startingBounds)
         }
     }
@@ -103,7 +108,10 @@ class PipRotationTest(testSpec: FlickerTestParameter) : PipTransition(testSpec)
     @Test
     fun appLayerRotates_EndingBounds() {
         testSpec.assertLayersEnd {
-            visibleRegion(fixedApp.component).coversExactly(endingBounds)
+            val pipRegion = visibleRegion(pipApp.component).region
+            val expectedWithoutPip = Region(endingBounds.bounds.left, endingBounds.bounds.top,
+                    endingBounds.bounds.right, endingBounds.bounds.bottom).minus(pipRegion)
+            visibleRegion(fixedApp.component).coversExactly(expectedWithoutPip)
             visibleRegion(pipApp.component).coversAtMost(endingBounds)
         }
     }