diff --git a/java/aar.go b/java/aar.go
index e0e642e..1e5c95a 100644
--- a/java/aar.go
+++ b/java/aar.go
@@ -588,14 +588,16 @@
 		}
 	}
 
-	for _, dir := range overlayDirs {
-		compiledOverlay = append(compiledOverlay, aapt2Compile(ctx, dir.dir, dir.files,
-			compileFlags, a.filterProduct(), opts.aconfigTextFiles).Paths()...)
-	}
-
 	var compiledRro, compiledRroOverlay android.Paths
 	if opts.rroDirs != nil {
 		compiledRro, compiledRroOverlay = a.compileResInDir(ctx, *opts.rroDirs, compileFlags, opts.aconfigTextFiles)
+	} else {
+		// RRO enforcement is done based on module name. Compile the overlayDirs only if rroDirs is nil.
+		// This ensures that the autogenerated RROs do not compile the overlay dirs twice.
+		for _, dir := range overlayDirs {
+			compiledOverlay = append(compiledOverlay, aapt2Compile(ctx, dir.dir, dir.files,
+				compileFlags, a.filterProduct(), opts.aconfigTextFiles).Paths()...)
+		}
 	}
 
 	var splitPackages android.WritablePaths