diff --git a/packages/SystemUI/aconfig/systemui.aconfig b/packages/SystemUI/aconfig/systemui.aconfig
index 2cb297a..723959a 100644
--- a/packages/SystemUI/aconfig/systemui.aconfig
+++ b/packages/SystemUI/aconfig/systemui.aconfig
@@ -984,6 +984,16 @@
 }
 
 flag {
+  namespace: "systemui"
+  name: "privacy_dot_unfold_wrong_corner_fix"
+  description: "Fixes an issue where the privacy dot is at the wrong corner after unfolding/folding."
+  bug: "339335643"
+  metadata {
+    purpose: PURPOSE_BUGFIX
+  }
+}
+
+flag {
   name: "validate_keyboard_shortcut_helper_icon_uri"
   namespace: "systemui"
   description: "Adds a check that the caller can access the content URI of an icon in the shortcut helper."
diff --git a/packages/SystemUI/multivalentTests/src/com/android/systemui/statusbar/events/PrivacyDotViewControllerTest.kt b/packages/SystemUI/multivalentTests/src/com/android/systemui/statusbar/events/PrivacyDotViewControllerTest.kt
index 4340971..f126432 100644
--- a/packages/SystemUI/multivalentTests/src/com/android/systemui/statusbar/events/PrivacyDotViewControllerTest.kt
+++ b/packages/SystemUI/multivalentTests/src/com/android/systemui/statusbar/events/PrivacyDotViewControllerTest.kt
@@ -18,14 +18,19 @@
 
 import android.graphics.Point
 import android.graphics.Rect
+import android.platform.test.annotations.DisableFlags
+import android.platform.test.annotations.EnableFlags
 import android.testing.TestableLooper.RunWithLooper
 import android.view.Display
 import android.view.DisplayAdjustments
 import android.view.View
 import android.widget.FrameLayout
+import android.widget.FrameLayout.LayoutParams.UNSPECIFIED_GRAVITY
 import androidx.test.ext.junit.runners.AndroidJUnit4
 import androidx.test.filters.SmallTest
+import com.android.systemui.Flags
 import com.android.systemui.SysuiTestCase
+import com.android.systemui.res.R
 import com.android.systemui.statusbar.FakeStatusBarStateController
 import com.android.systemui.statusbar.phone.StatusBarContentInsetsProvider
 import com.android.systemui.statusbar.policy.FakeConfigurationController
@@ -291,14 +296,61 @@
         assertThat(controller.currentViewState.designatedCorner).isEqualTo(bottomRightView)
     }
 
+    @Test
+    @EnableFlags(Flags.FLAG_PRIVACY_DOT_UNFOLD_WRONG_CORNER_FIX)
+    fun initialize_newViews_fixFlagEnabled_gravityIsUpdated() {
+        val newTopLeftView = initDotView()
+        val newTopRightView = initDotView()
+        val newBottomLeftView = initDotView()
+        val newBottomRightView = initDotView()
+        setRotation(ROTATION_LANDSCAPE) // Bottom right used in landscape
+
+        val controller = createAndInitializeController()
+        // Re-init with different views, but same rotation
+        controller.initialize(
+            newTopLeftView,
+            newTopRightView,
+            newBottomLeftView,
+            newBottomRightView
+        )
+
+        assertThat((newBottomRightView.layoutParams as FrameLayout.LayoutParams).gravity)
+            .isNotEqualTo(UNSPECIFIED_GRAVITY)
+    }
+
+    @Test
+    @DisableFlags(Flags.FLAG_PRIVACY_DOT_UNFOLD_WRONG_CORNER_FIX)
+    fun initialize_newViews_fixFlagDisabled_gravityIsNotUpdated() {
+        val newTopLeftView = initDotView()
+        val newTopRightView = initDotView()
+        val newBottomLeftView = initDotView()
+        val newBottomRightView = initDotView()
+        setRotation(ROTATION_LANDSCAPE) // Bottom right used in landscape
+
+        val controller = createAndInitializeController()
+        // Re-init with different views, but same rotation
+        controller.initialize(
+            newTopLeftView,
+            newTopRightView,
+            newBottomLeftView,
+            newBottomRightView
+        )
+
+        assertThat((newBottomRightView.layoutParams as FrameLayout.LayoutParams).gravity)
+            .isEqualTo(UNSPECIFIED_GRAVITY)
+    }
+
     private fun setRotation(rotation: Int) {
         whenever(mockDisplay.rotation).thenReturn(rotation)
     }
 
-    private fun initDotView(): View =
-        View(context).also {
+    private fun initDotView(): View {
+        val privacyDot = View(context).also { it.id = R.id.privacy_dot }
+        return FrameLayout(context).also {
             it.layoutParams = FrameLayout.LayoutParams(/* width = */ 0, /* height = */ 0)
+            it.addView(privacyDot)
         }
+    }
 
     private fun enableRtl() {
         configurationController.notifyLayoutDirectionChanged(isRtl = true)
diff --git a/packages/SystemUI/src/com/android/systemui/statusbar/events/PrivacyDotViewController.kt b/packages/SystemUI/src/com/android/systemui/statusbar/events/PrivacyDotViewController.kt
index 6586259..9eb9ed5 100644
--- a/packages/SystemUI/src/com/android/systemui/statusbar/events/PrivacyDotViewController.kt
+++ b/packages/SystemUI/src/com/android/systemui/statusbar/events/PrivacyDotViewController.kt
@@ -26,6 +26,7 @@
 import androidx.core.animation.Animator
 import com.android.app.animation.Interpolators
 import com.android.internal.annotations.GuardedBy
+import com.android.systemui.Flags.privacyDotUnfoldWrongCornerFix
 import com.android.systemui.dagger.SysUISingleton
 import com.android.systemui.dagger.qualifiers.Application
 import com.android.systemui.dagger.qualifiers.Main
@@ -505,7 +506,9 @@
             return
         }
 
-        if (state.rotation != currentViewState.rotation) {
+        val designatedCornerChanged = state.designatedCorner != currentViewState.designatedCorner
+        val rotationChanged = state.rotation != currentViewState.rotation
+        if (rotationChanged || (designatedCornerChanged && privacyDotUnfoldWrongCornerFix())) {
             // A rotation has started, hide the views to avoid flicker
             updateRotations(state.rotation, state.paddingTop)
         }
@@ -515,7 +518,7 @@
             views.forEach { it.requestLayout() }
         }
 
-        if (state.designatedCorner != currentViewState.designatedCorner) {
+        if (designatedCornerChanged) {
             currentViewState.designatedCorner?.contentDescription = null
             state.designatedCorner?.contentDescription = state.contentDescription