diff --git a/packages/SystemUI/aconfig/systemui.aconfig b/packages/SystemUI/aconfig/systemui.aconfig
index 0314992..23fa40c 100644
--- a/packages/SystemUI/aconfig/systemui.aconfig
+++ b/packages/SystemUI/aconfig/systemui.aconfig
@@ -377,6 +377,16 @@
 }
 
 flag {
+    name: "status_bar_swipe_over_chip"
+    namespace: "systemui"
+    description: "Allow users to swipe over the status bar chip to open the shade"
+    bug: "185897191"
+    metadata {
+      purpose: PURPOSE_BUGFIX
+    }
+}
+
+flag {
     name: "compose_bouncer"
     namespace: "systemui"
     description: "Use the new compose bouncer in SystemUI"
diff --git a/packages/SystemUI/src/com/android/systemui/statusbar/phone/PhoneStatusBarView.java b/packages/SystemUI/src/com/android/systemui/statusbar/phone/PhoneStatusBarView.java
index 8115c36..f178708 100644
--- a/packages/SystemUI/src/com/android/systemui/statusbar/phone/PhoneStatusBarView.java
+++ b/packages/SystemUI/src/com/android/systemui/statusbar/phone/PhoneStatusBarView.java
@@ -36,6 +36,7 @@
 
 import com.android.internal.policy.SystemBarUtils;
 import com.android.systemui.Dependency;
+import com.android.systemui.Flags;
 import com.android.systemui.Gefingerpoken;
 import com.android.systemui.plugins.DarkIconDispatcher;
 import com.android.systemui.plugins.DarkIconDispatcher.DarkReceiver;
@@ -217,8 +218,12 @@
 
     @Override
     public boolean onInterceptTouchEvent(MotionEvent event) {
-        mTouchEventHandler.onInterceptTouchEvent(event);
-        return super.onInterceptTouchEvent(event);
+        if (Flags.statusBarSwipeOverChip()) {
+            return mTouchEventHandler.onInterceptTouchEvent(event);
+        } else {
+            mTouchEventHandler.onInterceptTouchEvent(event);
+            return super.onInterceptTouchEvent(event);
+        }
     }
 
     public void updateResources() {
diff --git a/packages/SystemUI/src/com/android/systemui/statusbar/phone/PhoneStatusBarViewController.kt b/packages/SystemUI/src/com/android/systemui/statusbar/phone/PhoneStatusBarViewController.kt
index 5206e46..a818c05 100644
--- a/packages/SystemUI/src/com/android/systemui/statusbar/phone/PhoneStatusBarViewController.kt
+++ b/packages/SystemUI/src/com/android/systemui/statusbar/phone/PhoneStatusBarViewController.kt
@@ -23,9 +23,10 @@
 import android.view.View
 import android.view.ViewGroup
 import android.view.ViewTreeObserver
+import com.android.systemui.Flags
 import com.android.systemui.Gefingerpoken
 import com.android.systemui.flags.FeatureFlags
-import com.android.systemui.flags.Flags
+import com.android.systemui.flags.Flags.ENABLE_UNFOLD_STATUS_BAR_ANIMATIONS
 import com.android.systemui.res.R
 import com.android.systemui.scene.shared.flag.SceneContainerFlag
 import com.android.systemui.scene.ui.view.WindowRootView
@@ -83,22 +84,25 @@
         statusContainer.setOnHoverListener(
             statusOverlayHoverListenerFactory.createDarkAwareListener(statusContainer)
         )
-        statusContainer.setOnTouchListener(object : View.OnTouchListener {
-            override fun onTouch(v: View, event: MotionEvent): Boolean {
-                // We want to handle only mouse events here to avoid stealing finger touches from
-                // status bar which expands shade when swiped down on. We're using onTouchListener
-                // instead of onClickListener as the later will lead to isClickable being set to
-                // true and hence ALL touches always being intercepted. See [View.OnTouchEvent]
-                if (event.source == InputDevice.SOURCE_MOUSE) {
-                    if (event.action == MotionEvent.ACTION_UP) {
-                        v.performClick()
-                        shadeController.animateExpandShade()
+        statusContainer.setOnTouchListener(
+            object : View.OnTouchListener {
+                override fun onTouch(v: View, event: MotionEvent): Boolean {
+                    // We want to handle only mouse events here to avoid stealing finger touches
+                    // from status bar which expands shade when swiped down on. See b/326097469.
+                    // We're using onTouchListener instead of onClickListener as the later will lead
+                    // to isClickable being set to true and hence ALL touches always being
+                    // intercepted. See [View.OnTouchEvent]
+                    if (event.source == InputDevice.SOURCE_MOUSE) {
+                        if (event.action == MotionEvent.ACTION_UP) {
+                            v.performClick()
+                            shadeController.animateExpandShade()
+                        }
+                        return true
                     }
-                    return true
+                    return false
                 }
-                return false
             }
-        })
+        )
 
         progressProvider?.setReadyToHandleTransition(true)
         configurationController.addCallback(configurationListener)
@@ -180,8 +184,12 @@
 
     inner class PhoneStatusBarViewTouchHandler : Gefingerpoken {
         override fun onInterceptTouchEvent(event: MotionEvent): Boolean {
-            onTouch(event)
-            return false
+            return if (Flags.statusBarSwipeOverChip()) {
+                shadeViewController.handleExternalInterceptTouch(event)
+            } else {
+                onTouch(event)
+                false
+            }
         }
 
         override fun onTouchEvent(event: MotionEvent): Boolean {
@@ -280,7 +288,7 @@
     ) {
         fun create(view: PhoneStatusBarView): PhoneStatusBarViewController {
             val statusBarMoveFromCenterAnimationController =
-                if (featureFlags.isEnabled(Flags.ENABLE_UNFOLD_STATUS_BAR_ANIMATIONS)) {
+                if (featureFlags.isEnabled(ENABLE_UNFOLD_STATUS_BAR_ANIMATIONS)) {
                     unfoldComponent.getOrNull()?.getStatusBarMoveFromCenterAnimationController()
                 } else {
                     null
diff --git a/packages/SystemUI/tests/src/com/android/systemui/statusbar/phone/PhoneStatusBarViewControllerTest.kt b/packages/SystemUI/tests/src/com/android/systemui/statusbar/phone/PhoneStatusBarViewControllerTest.kt
index 25314f3..5b45781 100644
--- a/packages/SystemUI/tests/src/com/android/systemui/statusbar/phone/PhoneStatusBarViewControllerTest.kt
+++ b/packages/SystemUI/tests/src/com/android/systemui/statusbar/phone/PhoneStatusBarViewControllerTest.kt
@@ -20,6 +20,8 @@
 import android.app.StatusBarManager.WINDOW_STATE_HIDING
 import android.app.StatusBarManager.WINDOW_STATE_SHOWING
 import android.app.StatusBarManager.WINDOW_STATUS_BAR
+import android.platform.test.annotations.DisableFlags
+import android.platform.test.annotations.EnableFlags
 import android.view.InputDevice
 import android.view.LayoutInflater
 import android.view.MotionEvent
@@ -104,7 +106,7 @@
             val parent = FrameLayout(mContext) // add parent to keep layout params
             view =
                 LayoutInflater.from(mContext).inflate(R.layout.status_bar, parent, false)
-                        as PhoneStatusBarView
+                    as PhoneStatusBarView
             controller = createAndInitController(view)
         }
     }
@@ -112,8 +114,8 @@
     @Test
     fun onViewAttachedAndDrawn_startListeningConfigurationControllerCallback() {
         val view = createViewMock()
-        val argumentCaptor = ArgumentCaptor.forClass(
-                ConfigurationController.ConfigurationListener::class.java)
+        val argumentCaptor =
+            ArgumentCaptor.forClass(ConfigurationController.ConfigurationListener::class.java)
         InstrumentationRegistry.getInstrumentation().runOnMainSync {
             controller = createAndInitController(view)
         }
@@ -159,7 +161,7 @@
     fun handleTouchEventFromStatusBar_panelsNotEnabled_returnsFalseAndNoViewEvent() {
         `when`(centralSurfacesImpl.commandQueuePanelsEnabled).thenReturn(false)
         val returnVal =
-            view.onTouchEvent(MotionEvent.obtain(0L, 0L, MotionEvent.ACTION_DOWN, 0f, 0f, 0))
+            view.onTouchEvent(MotionEvent.obtain(0L, 0L, MotionEvent.ACTION_DOWN, 0f, 2f, 0))
         assertThat(returnVal).isFalse()
         verify(shadeViewController, never()).handleExternalTouch(any())
     }
@@ -169,7 +171,7 @@
         `when`(centralSurfacesImpl.commandQueuePanelsEnabled).thenReturn(true)
         `when`(shadeViewController.isViewEnabled).thenReturn(false)
         val returnVal =
-            view.onTouchEvent(MotionEvent.obtain(0L, 0L, MotionEvent.ACTION_DOWN, 0f, 0f, 0))
+            view.onTouchEvent(MotionEvent.obtain(0L, 0L, MotionEvent.ACTION_DOWN, 0f, 2f, 0))
         assertThat(returnVal).isTrue()
         verify(shadeViewController, never()).handleExternalTouch(any())
     }
@@ -178,7 +180,7 @@
     fun handleTouchEventFromStatusBar_viewNotEnabledButIsMoveEvent_viewReceivesEvent() {
         `when`(centralSurfacesImpl.commandQueuePanelsEnabled).thenReturn(true)
         `when`(shadeViewController.isViewEnabled).thenReturn(false)
-        val event = MotionEvent.obtain(0L, 0L, MotionEvent.ACTION_MOVE, 0f, 0f, 0)
+        val event = MotionEvent.obtain(0L, 0L, MotionEvent.ACTION_MOVE, 0f, 2f, 0)
 
         view.onTouchEvent(event)
 
@@ -208,6 +210,50 @@
     }
 
     @Test
+    @DisableFlags(com.android.systemui.Flags.FLAG_STATUS_BAR_SWIPE_OVER_CHIP)
+    fun handleInterceptTouchEventFromStatusBar_shadeReturnsFalse_flagOff_viewReturnsFalse() {
+        `when`(shadeViewController.handleExternalInterceptTouch(any())).thenReturn(false)
+        val event = MotionEvent.obtain(0L, 0L, MotionEvent.ACTION_DOWN, 0f, 2f, 0)
+
+        val returnVal = view.onInterceptTouchEvent(event)
+
+        assertThat(returnVal).isFalse()
+    }
+
+    @Test
+    @EnableFlags(com.android.systemui.Flags.FLAG_STATUS_BAR_SWIPE_OVER_CHIP)
+    fun handleInterceptTouchEventFromStatusBar_shadeReturnsFalse_flagOn_viewReturnsFalse() {
+        `when`(shadeViewController.handleExternalInterceptTouch(any())).thenReturn(false)
+        val event = MotionEvent.obtain(0L, 0L, MotionEvent.ACTION_DOWN, 0f, 2f, 0)
+
+        val returnVal = view.onInterceptTouchEvent(event)
+
+        assertThat(returnVal).isFalse()
+    }
+
+    @Test
+    @DisableFlags(com.android.systemui.Flags.FLAG_STATUS_BAR_SWIPE_OVER_CHIP)
+    fun handleInterceptTouchEventFromStatusBar_shadeReturnsTrue_flagOff_viewReturnsFalse() {
+        `when`(shadeViewController.handleExternalInterceptTouch(any())).thenReturn(true)
+        val event = MotionEvent.obtain(0L, 0L, MotionEvent.ACTION_DOWN, 0f, 2f, 0)
+
+        val returnVal = view.onInterceptTouchEvent(event)
+
+        assertThat(returnVal).isFalse()
+    }
+
+    @Test
+    @EnableFlags(com.android.systemui.Flags.FLAG_STATUS_BAR_SWIPE_OVER_CHIP)
+    fun handleInterceptTouchEventFromStatusBar_shadeReturnsTrue_flagOn_viewReturnsTrue() {
+        `when`(shadeViewController.handleExternalInterceptTouch(any())).thenReturn(true)
+        val event = MotionEvent.obtain(0L, 0L, MotionEvent.ACTION_DOWN, 0f, 2f, 0)
+
+        val returnVal = view.onInterceptTouchEvent(event)
+
+        assertThat(returnVal).isTrue()
+    }
+
+    @Test
     fun onTouch_windowHidden_centralSurfacesNotNotified() {
         val callback = getCommandQueueCallback()
         callback.setWindowState(DISPLAY_ID, WINDOW_STATUS_BAR, WINDOW_STATE_HIDDEN)
@@ -244,9 +290,7 @@
             controller = createAndInitController(view)
         }
         val statusContainer = view.requireViewById<View>(R.id.system_icons)
-        statusContainer.dispatchTouchEvent(
-            getActionUpEventFromSource(InputDevice.SOURCE_MOUSE)
-        )
+        statusContainer.dispatchTouchEvent(getActionUpEventFromSource(InputDevice.SOURCE_MOUSE))
         verify(shadeControllerImpl).animateExpandShade()
     }
 
@@ -257,9 +301,10 @@
             controller = createAndInitController(view)
         }
         val statusContainer = view.requireViewById<View>(R.id.system_icons)
-        val handled = statusContainer.dispatchTouchEvent(
-            getActionUpEventFromSource(InputDevice.SOURCE_TOUCHSCREEN)
-        )
+        val handled =
+            statusContainer.dispatchTouchEvent(
+                getActionUpEventFromSource(InputDevice.SOURCE_TOUCHSCREEN)
+            )
         assertThat(handled).isFalse()
     }
 
@@ -295,21 +340,21 @@
 
     private fun createAndInitController(view: PhoneStatusBarView): PhoneStatusBarViewController {
         return PhoneStatusBarViewController.Factory(
-            Optional.of(sysuiUnfoldComponent),
-            Optional.of(progressProvider),
-            featureFlags,
-            userChipViewModel,
-            centralSurfacesImpl,
-            statusBarWindowStateController,
-            shadeControllerImpl,
-            shadeViewController,
-            panelExpansionInteractor,
-            windowRootView,
-            shadeLogger,
-            viewUtil,
-            configurationController,
-            mStatusOverlayHoverListenerFactory
-        )
+                Optional.of(sysuiUnfoldComponent),
+                Optional.of(progressProvider),
+                featureFlags,
+                userChipViewModel,
+                centralSurfacesImpl,
+                statusBarWindowStateController,
+                shadeControllerImpl,
+                shadeViewController,
+                panelExpansionInteractor,
+                windowRootView,
+                shadeLogger,
+                viewUtil,
+                configurationController,
+                mStatusOverlayHoverListenerFactory
+            )
             .create(view)
             .also { it.init() }
     }
diff --git a/packages/SystemUI/tests/src/com/android/systemui/statusbar/phone/PhoneStatusBarViewTest.kt b/packages/SystemUI/tests/src/com/android/systemui/statusbar/phone/PhoneStatusBarViewTest.kt
index eae4f23..abc50bc 100644
--- a/packages/SystemUI/tests/src/com/android/systemui/statusbar/phone/PhoneStatusBarViewTest.kt
+++ b/packages/SystemUI/tests/src/com/android/systemui/statusbar/phone/PhoneStatusBarViewTest.kt
@@ -19,6 +19,8 @@
 import android.content.res.Configuration
 import android.graphics.Insets
 import android.graphics.Rect
+import android.platform.test.annotations.DisableFlags
+import android.platform.test.annotations.EnableFlags
 import android.testing.TestableLooper.RunWithLooper
 import android.view.DisplayCutout
 import android.view.DisplayShape
@@ -30,6 +32,7 @@
 import android.view.WindowInsets
 import android.widget.FrameLayout
 import androidx.test.filters.SmallTest
+import com.android.systemui.Flags.FLAG_STATUS_BAR_SWIPE_OVER_CHIP
 import com.android.systemui.Gefingerpoken
 import com.android.systemui.SysuiTestCase
 import com.android.systemui.plugins.DarkIconDispatcher
@@ -82,7 +85,8 @@
     }
 
     @Test
-    fun onInterceptTouchEvent_listenerNotified() {
+    @DisableFlags(FLAG_STATUS_BAR_SWIPE_OVER_CHIP)
+    fun onInterceptTouchEvent_flagOff_listenerNotified() {
         val handler = TestTouchEventHandler()
         view.setTouchEventHandler(handler)
 
@@ -93,6 +97,66 @@
     }
 
     @Test
+    @EnableFlags(FLAG_STATUS_BAR_SWIPE_OVER_CHIP)
+    fun onInterceptTouchEvent_flagOn_listenerNotified() {
+        val handler = TestTouchEventHandler()
+        view.setTouchEventHandler(handler)
+
+        val event = MotionEvent.obtain(0L, 0L, MotionEvent.ACTION_DOWN, 0f, 0f, 0)
+        view.onInterceptTouchEvent(event)
+
+        assertThat(handler.lastInterceptEvent).isEqualTo(event)
+    }
+
+    @Test
+    @DisableFlags(FLAG_STATUS_BAR_SWIPE_OVER_CHIP)
+    fun onInterceptTouchEvent_listenerReturnsFalse_flagOff_viewReturnsFalse() {
+        val handler = TestTouchEventHandler()
+        view.setTouchEventHandler(handler)
+        val event = MotionEvent.obtain(0L, 0L, MotionEvent.ACTION_DOWN, 0f, 0f, 0)
+
+        handler.handleTouchReturnValue = false
+
+        assertThat(view.onInterceptTouchEvent(event)).isFalse()
+    }
+
+    @Test
+    @EnableFlags(FLAG_STATUS_BAR_SWIPE_OVER_CHIP)
+    fun onInterceptTouchEvent_listenerReturnsFalse_flagOn_viewReturnsFalse() {
+        val handler = TestTouchEventHandler()
+        view.setTouchEventHandler(handler)
+        val event = MotionEvent.obtain(0L, 0L, MotionEvent.ACTION_DOWN, 0f, 0f, 0)
+
+        handler.handleTouchReturnValue = false
+
+        assertThat(view.onInterceptTouchEvent(event)).isFalse()
+    }
+
+    @Test
+    @DisableFlags(FLAG_STATUS_BAR_SWIPE_OVER_CHIP)
+    fun onInterceptTouchEvent_listenerReturnsTrue_flagOff_viewReturnsFalse() {
+        val handler = TestTouchEventHandler()
+        view.setTouchEventHandler(handler)
+        val event = MotionEvent.obtain(0L, 0L, MotionEvent.ACTION_DOWN, 0f, 0f, 0)
+
+        handler.handleTouchReturnValue = true
+
+        assertThat(view.onInterceptTouchEvent(event)).isFalse()
+    }
+
+    @Test
+    @EnableFlags(FLAG_STATUS_BAR_SWIPE_OVER_CHIP)
+    fun onInterceptTouchEvent_listenerReturnsTrue_flagOn_viewReturnsTrue() {
+        val handler = TestTouchEventHandler()
+        view.setTouchEventHandler(handler)
+        val event = MotionEvent.obtain(0L, 0L, MotionEvent.ACTION_DOWN, 0f, 0f, 0)
+
+        handler.handleTouchReturnValue = true
+
+        assertThat(view.onInterceptTouchEvent(event)).isTrue()
+    }
+
+    @Test
     fun onTouchEvent_listenerReturnsTrue_viewReturnsTrue() {
         val handler = TestTouchEventHandler()
         view.setTouchEventHandler(handler)