diff --git a/quickstep/src/com/android/launcher3/taskbar/TaskbarLauncherStateController.java b/quickstep/src/com/android/launcher3/taskbar/TaskbarLauncherStateController.java
index 008f5f6755..17e7e1b9bb 100644
--- a/quickstep/src/com/android/launcher3/taskbar/TaskbarLauncherStateController.java
+++ b/quickstep/src/com/android/launcher3/taskbar/TaskbarLauncherStateController.java
@@ -551,6 +551,12 @@ public class TaskbarLauncherStateController {
             // updateValue ensures onIconAlignmentRatioChanged will be called if there is an actual
             // change in value
             mIconAlignment.updateValue(toAlignment);
+
+            // Make sure FLAG_IN_APP is set when launching applications from keyguard.
+            if (!isInLauncher) {
+                mControllers.taskbarStashController.updateStateForFlag(FLAG_IN_APP, true);
+                mControllers.taskbarStashController.applyState(0);
+            }
         } else if (mIconAlignment.isAnimatingToValue(toAlignment)
                 || mIconAlignment.isSettledOnValue(toAlignment)) {
             // Already at desired value, but make sure we run the callback at the end.
diff --git a/quickstep/src/com/android/launcher3/taskbar/TaskbarStashController.java b/quickstep/src/com/android/launcher3/taskbar/TaskbarStashController.java
index 4710721463..7e767faa1e 100644
--- a/quickstep/src/com/android/launcher3/taskbar/TaskbarStashController.java
+++ b/quickstep/src/com/android/launcher3/taskbar/TaskbarStashController.java
@@ -111,7 +111,8 @@ public class TaskbarStashController implements TaskbarControllers.LoggableTaskba
     // Currently any flag that causes us to stash in an app is included, except for IME or All Apps
     // since those cover the underlying app anyway and thus the app shouldn't change insets.
     private static final int FLAGS_REPORT_STASHED_INSETS_TO_APP = FLAGS_STASHED_IN_APP
-            & ~FLAG_STASHED_IN_APP_IME & ~FLAG_STASHED_IN_TASKBAR_ALL_APPS;
+            & ~FLAG_STASHED_IN_APP_IME & ~FLAG_STASHED_IN_TASKBAR_ALL_APPS
+            & ~FLAG_STASHED_IN_APP_SYSUI;
 
     // If any of these flags are enabled, the taskbar must be stashed.
     private static final int FLAGS_FORCE_STASHED = FLAG_STASHED_SYSUI | FLAG_STASHED_DEVICE_LOCKED