diff --git a/core/java/android/app/Activity.java b/core/java/android/app/Activity.java
index 169dcb01c90a8..c4b7ed771b704 100644
--- a/core/java/android/app/Activity.java
+++ b/core/java/android/app/Activity.java
@@ -2070,6 +2070,7 @@ public class Activity extends ContextThemeWrapper
             if (args == null) {
                 throw new IllegalArgumentException("Expected non-null picture-in-picture args");
             }
+            updatePictureInPictureArgsForContentInsets(args);
             return ActivityManagerNative.getDefault().enterPictureInPictureMode(mToken, args);
         } catch (RemoteException e) {
             return false;
@@ -2087,11 +2088,27 @@ public class Activity extends ContextThemeWrapper
             if (args == null) {
                 throw new IllegalArgumentException("Expected non-null picture-in-picture args");
             }
+            updatePictureInPictureArgsForContentInsets(args);
             ActivityManagerNative.getDefault().setPictureInPictureArgs(mToken, args);
         } catch (RemoteException e) {
         }
     }
 
+    /**
+     * Updates the provided {@param args} with the last known content insets for this activity, to
+     * be used with the source hint rect for the transition into PiP.
+     */
+    private void updatePictureInPictureArgsForContentInsets(PictureInPictureArgs args) {
+        if (args != null && args.hasSourceBoundsHint() && getWindow() != null &&
+                getWindow().peekDecorView() != null &&
+                getWindow().peekDecorView().getViewRootImpl() != null) {
+            args.setSourceRectHintInsets(
+                    getWindow().peekDecorView().getViewRootImpl().getLastContentInsets());
+        } else {
+            args.setSourceRectHintInsets(null);
+        }
+    }
+
     void dispatchMovedToDisplay(int displayId, Configuration config) {
         updateDisplay(displayId);
         onMovedToDisplay(displayId, config);
diff --git a/core/java/android/app/PictureInPictureArgs.java b/core/java/android/app/PictureInPictureArgs.java
index 0ce5eebed2877..2fa6360469013 100644
--- a/core/java/android/app/PictureInPictureArgs.java
+++ b/core/java/android/app/PictureInPictureArgs.java
@@ -49,6 +49,13 @@ public final class PictureInPictureArgs implements Parcelable {
     @Nullable
     private Rect mSourceRectHint;
 
+    /**
+     * The content insets that are used with the source hint rect for the transition into PiP where
+     * the insets are removed at the beginning of the transition.
+     */
+    @Nullable
+    private Rect mSourceRectHintInsets;
+
     PictureInPictureArgs(Parcel in) {
         if (in.readInt() != 0) {
             mAspectRatio = in.readFloat();
@@ -60,6 +67,9 @@ public final class PictureInPictureArgs implements Parcelable {
         if (in.readInt() != 0) {
             mSourceRectHint = Rect.CREATOR.createFromParcel(in);
         }
+        if (in.readInt() != 0) {
+            mSourceRectHintInsets = Rect.CREATOR.createFromParcel(in);
+        }
     }
 
     /**
@@ -94,6 +104,9 @@ public final class PictureInPictureArgs implements Parcelable {
         if (otherArgs.hasSourceBoundsHint()) {
             mSourceRectHint = new Rect(otherArgs.getSourceRectHint());
         }
+        if (otherArgs.hasSourceBoundsHintInsets()) {
+            mSourceRectHintInsets = new Rect(otherArgs.getSourceRectHintInsets());
+        }
     }
 
     /**
@@ -167,13 +180,33 @@ public final class PictureInPictureArgs implements Parcelable {
     }
 
     /**
-     * @return the launch bounds
+     * Sets the insets to be used with the source rect hint bounds.
+     * @hide
+     */
+    public void setSourceRectHintInsets(Rect insets) {
+        if (insets == null) {
+            mSourceRectHintInsets = null;
+        } else {
+            mSourceRectHintInsets = new Rect(insets);
+        }
+    }
+
+    /**
+     * @return the source rect hint
      * @hide
      */
     public Rect getSourceRectHint() {
         return mSourceRectHint;
     }
 
+    /**
+     * @return the source rect hint insets.
+     * @hide
+     */
+    public Rect getSourceRectHintInsets() {
+        return mSourceRectHintInsets;
+    }
+
     /**
      * @return whether there are launch bounds set
      * @hide
@@ -182,12 +215,23 @@ public final class PictureInPictureArgs implements Parcelable {
         return mSourceRectHint != null && !mSourceRectHint.isEmpty();
     }
 
+    /**
+     * @return whether there are source rect hint insets set
+     * @hide
+     */
+    public boolean hasSourceBoundsHintInsets() {
+        return mSourceRectHintInsets != null;
+    }
+
     @Override
     public PictureInPictureArgs clone() {
         PictureInPictureArgs args = new PictureInPictureArgs(mAspectRatio, mUserActions);
         if (mSourceRectHint != null) {
             args.setSourceRectHint(mSourceRectHint);
         }
+        if (mSourceRectHintInsets != null) {
+            args.setSourceRectHintInsets(mSourceRectHintInsets);
+        }
         return args;
     }
 
@@ -216,6 +260,12 @@ public final class PictureInPictureArgs implements Parcelable {
         } else {
             out.writeInt(0);
         }
+        if (mSourceRectHintInsets != null) {
+            out.writeInt(1);
+            mSourceRectHintInsets.writeToParcel(out, 0);
+        } else {
+            out.writeInt(0);
+        }
     }
 
     public static final Creator<PictureInPictureArgs> CREATOR =
diff --git a/core/java/android/view/ViewRootImpl.java b/core/java/android/view/ViewRootImpl.java
index a7ececf6c7820..080ffeb011f81 100644
--- a/core/java/android/view/ViewRootImpl.java
+++ b/core/java/android/view/ViewRootImpl.java
@@ -1561,6 +1561,16 @@ public final class ViewRootImpl implements ViewParent,
         host.dispatchApplyWindowInsets(getWindowInsets(true /* forceConstruct */));
     }
 
+    /**
+     * @return the last content insets for use in adjusting the source hint rect for the
+     * picture-in-picture transition.
+     *
+     * @hide
+     */
+    public Rect getLastContentInsets() {
+        return mAttachInfo.mContentInsets;
+    }
+
     private static boolean shouldUseDisplaySize(final WindowManager.LayoutParams lp) {
         return lp.type == TYPE_STATUS_BAR_PANEL
                 || lp.type == TYPE_INPUT_METHOD
diff --git a/services/core/java/com/android/server/am/ActivityManagerService.java b/services/core/java/com/android/server/am/ActivityManagerService.java
index fa936c209099c..946ba0d04e2d7 100644
--- a/services/core/java/com/android/server/am/ActivityManagerService.java
+++ b/services/core/java/com/android/server/am/ActivityManagerService.java
@@ -7845,7 +7845,14 @@ public class ActivityManagerService extends IActivityManager.Stub
                     r.pictureInPictureArgs.copyOnlySet(args);
                     final float aspectRatio = r.pictureInPictureArgs.getAspectRatio();
                     final List<RemoteAction> actions = r.pictureInPictureArgs.getActions();
-                    final Rect sourceBounds = r.pictureInPictureArgs.getSourceRectHint();
+                    // Adjust the source bounds by the insets for the transition down
+                    final Rect sourceBounds = new Rect(r.pictureInPictureArgs.getSourceRectHint());
+                    final Rect insets = r.pictureInPictureArgs.getSourceRectHintInsets();
+                    if (insets != null) {
+                        sourceBounds.offsetTo(Math.max(0, sourceBounds.left - insets.left),
+                                Math.max(0, sourceBounds.top - insets.top));
+                    }
+
                     mStackSupervisor.moveActivityToPinnedStackLocked(r, sourceBounds, aspectRatio,
                             true /* moveHomeStackToFront */, "enterPictureInPictureMode");
                     final PinnedActivityStack stack = mStackSupervisor.getStack(PINNED_STACK_ID);