diff --git a/packages/CarSystemUI/res/values/config.xml b/packages/CarSystemUI/res/values/config.xml
index d946fbc9520ad..467c4a41893d3 100644
--- a/packages/CarSystemUI/res/values/config.xml
+++ b/packages/CarSystemUI/res/values/config.xml
@@ -29,6 +29,9 @@
     <bool name="config_enableRightNavigationBar">false</bool>
     <bool name="config_enableBottomNavigationBar">true</bool>
 
+    <!-- Whether heads-up notifications should be shown when shade is open. -->
+    <bool name="config_enableHeadsUpNotificationWhenNotificationShadeOpen">true</bool>
+
     <bool name="config_hideNavWhenKeyguardBouncerShown">true</bool>
     <bool name="config_enablePersistentDockedActivity">false</bool>
     <string name="config_persistentDockedActivityIntentUri" translatable="false"></string>
diff --git a/packages/CarSystemUI/src/com/android/systemui/statusbar/car/CarStatusBar.java b/packages/CarSystemUI/src/com/android/systemui/statusbar/car/CarStatusBar.java
index 16b01252fb812..a07bb8fa3d388 100644
--- a/packages/CarSystemUI/src/com/android/systemui/statusbar/car/CarStatusBar.java
+++ b/packages/CarSystemUI/src/com/android/systemui/statusbar/car/CarStatusBar.java
@@ -165,6 +165,8 @@ public class CarStatusBar extends StatusBar implements
     private boolean mIsNotificationCardSwiping;
     // If notification shade is being swiped vertically to close.
     private boolean mIsSwipingVerticallyToClose;
+    // Whether heads-up notifications should be shown when shade is open.
+    private boolean mEnableHeadsUpNotificationWhenNotificationShadeOpen;
 
     private final CarPowerStateListener mCarPowerStateListener =
             (int state) -> {
@@ -459,6 +461,8 @@ public class CarStatusBar extends StatusBar implements
                     }
                 });
 
+        mEnableHeadsUpNotificationWhenNotificationShadeOpen = mContext.getResources().getBoolean(
+                R.bool.config_enableHeadsUpNotificationWhenNotificationShadeOpen);
         CarHeadsUpNotificationManager carHeadsUpNotificationManager =
                 new CarSystemUIHeadsUpNotificationManager(mContext,
                         mNotificationClickHandlerFactory, mNotificationDataManager);
@@ -1272,12 +1276,19 @@ public class CarStatusBar extends StatusBar implements
             mHeadsUpPanel.setVisibility(View.INVISIBLE);
         }
 
+        @Override
+        protected void setInternalInsetsInfo(ViewTreeObserver.InternalInsetsInfo info,
+                HeadsUpEntry currentNotification, boolean panelExpanded) {
+            super.setInternalInsetsInfo(info, currentNotification, mPanelExpanded);
+        }
+
         @Override
         protected void setHeadsUpVisible() {
             // if the Notifications panel is showing don't show the Heads up
-            if (mPanelExpanded) {
+            if (!mEnableHeadsUpNotificationWhenNotificationShadeOpen && mPanelExpanded) {
                 return;
             }
+
             super.setHeadsUpVisible();
             if (mHeadsUpPanel.getVisibility() == View.VISIBLE) {
                 mStatusBarWindowController.setHeadsUpShowing(true);