diff --git a/packages/SystemUI/multivalentTests/src/com/android/systemui/scene/domain/startable/SceneContainerStartableTest.kt b/packages/SystemUI/multivalentTests/src/com/android/systemui/scene/domain/startable/SceneContainerStartableTest.kt
index bbb467f..64a13de 100644
--- a/packages/SystemUI/multivalentTests/src/com/android/systemui/scene/domain/startable/SceneContainerStartableTest.kt
+++ b/packages/SystemUI/multivalentTests/src/com/android/systemui/scene/domain/startable/SceneContainerStartableTest.kt
@@ -28,9 +28,7 @@
 import com.android.internal.logging.uiEventLoggerFake
 import com.android.internal.policy.IKeyguardDismissCallback
 import com.android.systemui.SysuiTestCase
-import com.android.systemui.authentication.data.repository.FakeAuthenticationRepository
 import com.android.systemui.authentication.data.repository.fakeAuthenticationRepository
-import com.android.systemui.authentication.domain.interactor.authenticationInteractor
 import com.android.systemui.authentication.shared.model.AuthenticationMethodModel
 import com.android.systemui.bouncer.data.repository.fakeKeyguardBouncerRepository
 import com.android.systemui.bouncer.domain.interactor.bouncerInteractor
@@ -357,6 +355,7 @@
             kosmos.fakeDeviceEntryFingerprintAuthRepository.setAuthenticationStatus(
                 SuccessFingerprintAuthenticationStatus(0, true)
             )
+            runCurrent()
 
             assertThat(currentSceneKey).isEqualTo(Scenes.QuickSettings)
             assertThat(alternateBouncerVisible).isFalse()
@@ -507,6 +506,33 @@
         }
 
     @Test
+    fun hideAlternateBouncerAndNotifyDismissCancelledWhenDeviceSleeps() =
+        testScope.runTest {
+            val alternateBouncerVisible by
+                collectLastValue(bouncerRepository.alternateBouncerVisible)
+            val currentSceneKey by collectLastValue(sceneInteractor.currentScene)
+            prepareState(
+                isDeviceUnlocked = false,
+                initialSceneKey = Scenes.Shade,
+            )
+            assertThat(currentSceneKey).isEqualTo(Scenes.Shade)
+            bouncerRepository.setAlternateVisible(true)
+            underTest.start()
+
+            // run all pending dismiss succeeded/cancelled calls from setup:
+            kosmos.fakeExecutor.runAllReady()
+
+            val dismissCallback: IKeyguardDismissCallback = mock()
+            kosmos.dismissCallbackRegistry.addCallback(dismissCallback)
+            powerInteractor.setAsleepForTest()
+            runCurrent()
+            kosmos.fakeExecutor.runAllReady()
+
+            assertThat(alternateBouncerVisible).isFalse()
+            verify(dismissCallback).onDismissCancelled()
+        }
+
+    @Test
     fun switchToLockscreenWhenDeviceSleepsLocked() =
         testScope.runTest {
             val currentSceneKey by collectLastValue(sceneInteractor.currentScene)
@@ -1644,19 +1670,27 @@
         }
 
     @Test
-    fun notifyKeyguardDismissCallbacks_whenUnlocking_onDismissSucceeded() =
+    fun notifyKeyguardDismissCallbacks_whenUnlockingFromBouncer_onDismissSucceeded() =
         testScope.runTest {
-            val currentScene by collectLastValue(sceneInteractor.currentScene)
-            prepareState()
+            val currentSceneKey by collectLastValue(sceneInteractor.currentScene)
+            prepareState(
+                authenticationMethod = AuthenticationMethodModel.Pin,
+                isDeviceUnlocked = false,
+                initialSceneKey = Scenes.Bouncer,
+            )
+            assertThat(currentSceneKey).isEqualTo(Scenes.Bouncer)
             underTest.start()
+
+            // run all pending dismiss succeeded/cancelled calls from setup:
+            kosmos.fakeExecutor.runAllReady()
+
             val dismissCallback: IKeyguardDismissCallback = mock()
             kosmos.dismissCallbackRegistry.addCallback(dismissCallback)
 
-            // Switch to bouncer and unlock device:
-            sceneInteractor.changeScene(Scenes.Bouncer, "")
-            assertThat(currentScene).isEqualTo(Scenes.Bouncer)
-            kosmos.authenticationInteractor.authenticate(FakeAuthenticationRepository.DEFAULT_PIN)
-            assertThat(currentScene).isEqualTo(Scenes.Gone)
+            kosmos.fakeDeviceEntryFingerprintAuthRepository.setAuthenticationStatus(
+                SuccessFingerprintAuthenticationStatus(0, true)
+            )
+            runCurrent()
             kosmos.fakeExecutor.runAllReady()
 
             verify(dismissCallback).onDismissSucceeded()
@@ -1665,19 +1699,26 @@
     @Test
     fun notifyKeyguardDismissCallbacks_whenLeavingBouncer_onDismissCancelled() =
         testScope.runTest {
+            val isUnlocked by collectLastValue(kosmos.deviceEntryInteractor.isUnlocked)
             val currentScene by collectLastValue(sceneInteractor.currentScene)
             prepareState()
             underTest.start()
+
+            // run all pending dismiss succeeded/cancelled calls from setup:
+            kosmos.fakeExecutor.runAllReady()
+
             val dismissCallback: IKeyguardDismissCallback = mock()
             kosmos.dismissCallbackRegistry.addCallback(dismissCallback)
 
             // Switch to bouncer:
             sceneInteractor.changeScene(Scenes.Bouncer, "")
             assertThat(currentScene).isEqualTo(Scenes.Bouncer)
+            runCurrent()
 
-            // Return to lockscreen:
+            // Return to lockscreen when isUnlocked=false:
             sceneInteractor.changeScene(Scenes.Lockscreen, "")
             assertThat(currentScene).isEqualTo(Scenes.Lockscreen)
+            assertThat(isUnlocked).isFalse()
             runCurrent()
             kosmos.fakeExecutor.runAllReady()
 
diff --git a/packages/SystemUI/src/com/android/systemui/keyguard/domain/interactor/KeyguardDismissActionInteractor.kt b/packages/SystemUI/src/com/android/systemui/keyguard/domain/interactor/KeyguardDismissActionInteractor.kt
index 1c445a7..7801c00 100644
--- a/packages/SystemUI/src/com/android/systemui/keyguard/domain/interactor/KeyguardDismissActionInteractor.kt
+++ b/packages/SystemUI/src/com/android/systemui/keyguard/domain/interactor/KeyguardDismissActionInteractor.kt
@@ -17,15 +17,16 @@
 
 package com.android.systemui.keyguard.domain.interactor
 
+import com.android.systemui.bouncer.domain.interactor.AlternateBouncerInteractor
 import com.android.systemui.dagger.SysUISingleton
 import com.android.systemui.dagger.qualifiers.Application
 import com.android.systemui.deviceentry.domain.interactor.DeviceEntryInteractor
 import com.android.systemui.keyguard.data.repository.KeyguardRepository
 import com.android.systemui.keyguard.shared.model.DismissAction
 import com.android.systemui.keyguard.shared.model.KeyguardDone
-import com.android.systemui.keyguard.shared.model.KeyguardState.ALTERNATE_BOUNCER
 import com.android.systemui.keyguard.shared.model.KeyguardState.GONE
 import com.android.systemui.keyguard.shared.model.KeyguardState.PRIMARY_BOUNCER
+import com.android.systemui.power.domain.interactor.PowerInteractor
 import com.android.systemui.scene.domain.interactor.SceneInteractor
 import com.android.systemui.scene.domain.resolver.NotifShadeSceneFamilyResolver
 import com.android.systemui.scene.domain.resolver.QuickSettingsSceneFamilyResolver
@@ -61,6 +62,8 @@
     deviceEntryInteractor: DeviceEntryInteractor,
     quickSettingsSceneFamilyResolver: QuickSettingsSceneFamilyResolver,
     notifShadeSceneFamilyResolver: NotifShadeSceneFamilyResolver,
+    powerInteractor: PowerInteractor,
+    alternateBouncerInteractor: AlternateBouncerInteractor,
 ) {
     val dismissAction: Flow<DismissAction> = repository.dismissAction
 
@@ -124,10 +127,12 @@
                     scene = Scenes.Bouncer,
                     stateWithoutSceneContainer = PRIMARY_BOUNCER
                 ),
-                transitionInteractor.isFinishedIn(state = ALTERNATE_BOUNCER),
+                alternateBouncerInteractor.isVisible,
                 isOnShadeWhileUnlocked,
-            ) { isOnGone, isOnBouncer, isOnAltBouncer, isOnShadeWhileUnlocked ->
-                !isOnGone && !isOnBouncer && !isOnAltBouncer && !isOnShadeWhileUnlocked
+                powerInteractor.isAsleep,
+            ) { isOnGone, isOnBouncer, isOnAltBouncer, isOnShadeWhileUnlocked, isAsleep ->
+                (!isOnGone && !isOnBouncer && !isOnAltBouncer && !isOnShadeWhileUnlocked) ||
+                    isAsleep
             }
             .filter { it }
             .sampleFilter(dismissAction) { it !is DismissAction.None }
diff --git a/packages/SystemUI/src/com/android/systemui/scene/domain/startable/SceneContainerStartable.kt b/packages/SystemUI/src/com/android/systemui/scene/domain/startable/SceneContainerStartable.kt
index e73664d..cc46216 100644
--- a/packages/SystemUI/src/com/android/systemui/scene/domain/startable/SceneContainerStartable.kt
+++ b/packages/SystemUI/src/com/android/systemui/scene/domain/startable/SceneContainerStartable.kt
@@ -152,7 +152,7 @@
             hydrateBackStack()
             resetShadeSessions()
             handleKeyguardEnabledness()
-            notifyKeyguardDismissCallbacks()
+            notifyKeyguardDismissCancelledCallbacks()
             refreshLockscreenEnabled()
         } else {
             sceneLogger.logFrameworkEnabled(
@@ -379,8 +379,10 @@
                     when {
                         isAlternateBouncerVisible -> {
                             // When the device becomes unlocked when the alternate bouncer is
-                            // showing, always hide the alternate bouncer...
+                            // showing, always hide the alternate bouncer and notify dismiss
+                            // succeeded
                             alternateBouncerInteractor.hide()
+                            dismissCallbackRegistry.notifyDismissSucceeded()
 
                             // ... and go to Gone or stay on the current scene
                             if (
@@ -394,9 +396,11 @@
                                 null
                             }
                         }
-                        isOnPrimaryBouncer ->
+                        isOnPrimaryBouncer -> {
                             // When the device becomes unlocked in primary Bouncer,
+                            // notify dismiss succeeded and
                             // go to previous scene or Gone.
+                            dismissCallbackRegistry.notifyDismissSucceeded()
                             if (
                                 previousScene.value == Scenes.Lockscreen ||
                                     !statusBarStateController.leaveOpenOnKeyguardHide()
@@ -410,6 +414,7 @@
                                     "device was unlocked with primary bouncer showing," +
                                         " from sceneKey=$prevScene"
                             }
+                        }
                         isOnLockscreen ->
                             // The lockscreen should be dismissed automatically in 2 scenarios:
                             // 1. When face auth bypass is enabled and authentication happens while
@@ -468,6 +473,9 @@
         applicationScope.launch {
             powerInteractor.isAsleep.collect { isAsleep ->
                 if (isAsleep) {
+                    alternateBouncerInteractor.hide()
+                    dismissCallbackRegistry.notifyDismissCancelled()
+
                     switchToScene(
                         targetSceneKey = Scenes.Lockscreen,
                         loggingReason = "device is starting to sleep",
@@ -771,15 +779,23 @@
         }
     }
 
-    private fun notifyKeyguardDismissCallbacks() {
+    private fun notifyKeyguardDismissCancelledCallbacks() {
         applicationScope.launch {
-            sceneInteractor.currentScene.pairwise().collect { (from, to) ->
-                when {
-                    from != Scenes.Bouncer -> Unit
-                    to == Scenes.Gone -> dismissCallbackRegistry.notifyDismissSucceeded()
-                    else -> dismissCallbackRegistry.notifyDismissCancelled()
+            combine(
+                    deviceEntryInteractor.isUnlocked,
+                    sceneInteractor.currentScene.pairwise(),
+                ) { isUnlocked, (from, to) ->
+                    when {
+                        from != Scenes.Bouncer -> false
+                        to != Scenes.Gone && !isUnlocked -> true
+                        else -> false
+                    }
                 }
-            }
+                .collect { notifyKeyguardDismissCancelled ->
+                    if (notifyKeyguardDismissCancelled) {
+                        dismissCallbackRegistry.notifyDismissCancelled()
+                    }
+                }
         }
     }
 
diff --git a/packages/SystemUI/src/com/android/systemui/statusbar/phone/StatusBarKeyguardViewManager.java b/packages/SystemUI/src/com/android/systemui/statusbar/phone/StatusBarKeyguardViewManager.java
index de4d14d..0f93ff2 100644
--- a/packages/SystemUI/src/com/android/systemui/statusbar/phone/StatusBarKeyguardViewManager.java
+++ b/packages/SystemUI/src/com/android/systemui/statusbar/phone/StatusBarKeyguardViewManager.java
@@ -545,6 +545,7 @@
 
     @VisibleForTesting
     void consumeFromAlternateBouncerTransitionSteps(TransitionStep step) {
+        SceneContainerFlag.assertInLegacyMode();
         hideAlternateBouncer(false);
     }
 
@@ -554,6 +555,7 @@
      */
     @VisibleForTesting
     void consumeKeyguardAuthenticatedBiometricsHandled(Unit handled) {
+        SceneContainerFlag.assertInLegacyMode();
         if (mAlternateBouncerInteractor.isVisibleState()) {
             hideAlternateBouncer(false);
         }
@@ -981,7 +983,7 @@
             } else {
                 showBouncerOrKeyguard(hideBouncerWhenShowing, isFalsingReset);
             }
-            if (hideBouncerWhenShowing) {
+            if (!SceneContainerFlag.isEnabled() && hideBouncerWhenShowing) {
                 hideAlternateBouncer(true);
             }
             mKeyguardUpdateManager.sendKeyguardReset();
diff --git a/packages/SystemUI/tests/src/com/android/systemui/keyguard/domain/interactor/KeyguardDismissActionInteractorTest.kt b/packages/SystemUI/tests/src/com/android/systemui/keyguard/domain/interactor/KeyguardDismissActionInteractorTest.kt
index 32d059b..a0fe538b 100644
--- a/packages/SystemUI/tests/src/com/android/systemui/keyguard/domain/interactor/KeyguardDismissActionInteractorTest.kt
+++ b/packages/SystemUI/tests/src/com/android/systemui/keyguard/domain/interactor/KeyguardDismissActionInteractorTest.kt
@@ -22,6 +22,7 @@
 import com.android.systemui.SysuiTestCase
 import com.android.systemui.authentication.data.repository.fakeAuthenticationRepository
 import com.android.systemui.authentication.shared.model.AuthenticationMethodModel
+import com.android.systemui.bouncer.domain.interactor.alternateBouncerInteractor
 import com.android.systemui.coroutines.collectLastValue
 import com.android.systemui.deviceentry.domain.interactor.deviceEntryInteractor
 import com.android.systemui.flags.EnableSceneContainer
@@ -29,6 +30,10 @@
 import com.android.systemui.keyguard.shared.model.DismissAction
 import com.android.systemui.keyguard.shared.model.KeyguardDone
 import com.android.systemui.kosmos.testScope
+import com.android.systemui.power.data.repository.fakePowerRepository
+import com.android.systemui.power.domain.interactor.powerInteractor
+import com.android.systemui.power.shared.model.WakeSleepReason
+import com.android.systemui.power.shared.model.WakefulnessState
 import com.android.systemui.scene.data.repository.Idle
 import com.android.systemui.scene.data.repository.Transition
 import com.android.systemui.scene.data.repository.setSceneTransition
@@ -82,6 +87,8 @@
                 deviceEntryInteractor = kosmos.deviceEntryInteractor,
                 quickSettingsSceneFamilyResolver = kosmos.quickSettingsSceneFamilyResolver,
                 notifShadeSceneFamilyResolver = kosmos.notifShadeSceneFamilyResolver,
+                powerInteractor = kosmos.powerInteractor,
+                alternateBouncerInteractor = kosmos.alternateBouncerInteractor,
             )
     }
 
@@ -234,6 +241,32 @@
         }
 
     @Test
+    fun resetDismissAction_onBouncer_OnAsleep() =
+        testScope.runTest {
+            kosmos.setSceneTransition(Idle(Scenes.Bouncer))
+            kosmos.fakeAuthenticationRepository.setAuthenticationMethod(
+                AuthenticationMethodModel.None
+            )
+            val resetDismissAction by collectLastValue(underTest.resetDismissAction)
+            keyguardRepository.setDismissAction(
+                DismissAction.RunAfterKeyguardGone(
+                    dismissAction = {},
+                    onCancelAction = {},
+                    message = "message",
+                    willAnimateOnLockscreen = true,
+                )
+            )
+            assertThat(resetDismissAction).isNull()
+            kosmos.fakePowerRepository.updateWakefulness(
+                rawState = WakefulnessState.ASLEEP,
+                lastWakeReason = WakeSleepReason.POWER_BUTTON,
+                lastSleepReason = WakeSleepReason.TIMEOUT,
+                powerButtonLaunchGestureTriggered = false,
+            )
+            assertThat(resetDismissAction).isEqualTo(Unit)
+        }
+
+    @Test
     fun setDismissAction_callsCancelRunnableOnPreviousDismissAction() =
         testScope.runTest {
             val dismissAction by collectLastValue(underTest.dismissAction)
diff --git a/packages/SystemUI/tests/utils/src/com/android/systemui/keyguard/domain/interactor/KeyguardDismissActionInteractorKosmos.kt b/packages/SystemUI/tests/utils/src/com/android/systemui/keyguard/domain/interactor/KeyguardDismissActionInteractorKosmos.kt
index 957f092..27eadb1 100644
--- a/packages/SystemUI/tests/utils/src/com/android/systemui/keyguard/domain/interactor/KeyguardDismissActionInteractorKosmos.kt
+++ b/packages/SystemUI/tests/utils/src/com/android/systemui/keyguard/domain/interactor/KeyguardDismissActionInteractorKosmos.kt
@@ -16,10 +16,12 @@
 
 package com.android.systemui.keyguard.domain.interactor
 
+import com.android.systemui.bouncer.domain.interactor.alternateBouncerInteractor
 import com.android.systemui.deviceentry.domain.interactor.deviceEntryInteractor
 import com.android.systemui.keyguard.data.repository.keyguardRepository
 import com.android.systemui.kosmos.Kosmos
 import com.android.systemui.kosmos.testScope
+import com.android.systemui.power.domain.interactor.powerInteractor
 import com.android.systemui.scene.domain.interactor.sceneInteractor
 import com.android.systemui.scene.domain.resolver.notifShadeSceneFamilyResolver
 import com.android.systemui.scene.domain.resolver.quickSettingsSceneFamilyResolver
@@ -37,5 +39,7 @@
             deviceEntryInteractor = deviceEntryInteractor,
             quickSettingsSceneFamilyResolver = quickSettingsSceneFamilyResolver,
             notifShadeSceneFamilyResolver = notifShadeSceneFamilyResolver,
+            powerInteractor = powerInteractor,
+            alternateBouncerInteractor = alternateBouncerInteractor,
         )
     }