diff --git a/core/java/android/companion/virtual/flags/flags.aconfig b/core/java/android/companion/virtual/flags/flags.aconfig
index b4c36e1..260fcfe 100644
--- a/core/java/android/companion/virtual/flags/flags.aconfig
+++ b/core/java/android/companion/virtual/flags/flags.aconfig
@@ -110,3 +110,10 @@
     description: "Device awareness in power and display APIs"
     bug: "285020111"
 }
+
+flag {
+  name: "status_bar_and_insets"
+  namespace: "virtual_devices"
+  description: "Allow for status bar and insets on virtual devices"
+  bug: "350007866"
+}
diff --git a/services/core/java/com/android/server/policy/PhoneWindowManager.java b/services/core/java/com/android/server/policy/PhoneWindowManager.java
index f96706e..04d2de9 100644
--- a/services/core/java/com/android/server/policy/PhoneWindowManager.java
+++ b/services/core/java/com/android/server/policy/PhoneWindowManager.java
@@ -16,6 +16,7 @@
 
 package com.android.server.policy;
 
+import static android.Manifest.permission.CREATE_VIRTUAL_DEVICE;
 import static android.Manifest.permission.INTERNAL_SYSTEM_WINDOW;
 import static android.Manifest.permission.OVERRIDE_SYSTEM_KEY_BEHAVIOR_IN_FOCUSED_WINDOW;
 import static android.Manifest.permission.SYSTEM_ALERT_WINDOW;
@@ -59,13 +60,18 @@
 import static android.view.WindowManager.LayoutParams.TYPE_APPLICATION_OVERLAY;
 import static android.view.WindowManager.LayoutParams.TYPE_INPUT_METHOD;
 import static android.view.WindowManager.LayoutParams.TYPE_KEYGUARD_DIALOG;
+import static android.view.WindowManager.LayoutParams.TYPE_NAVIGATION_BAR;
 import static android.view.WindowManager.LayoutParams.TYPE_NAVIGATION_BAR_PANEL;
 import static android.view.WindowManager.LayoutParams.TYPE_NOTIFICATION_SHADE;
 import static android.view.WindowManager.LayoutParams.TYPE_PRESENTATION;
 import static android.view.WindowManager.LayoutParams.TYPE_PRIVATE_PRESENTATION;
 import static android.view.WindowManager.LayoutParams.TYPE_QS_DIALOG;
+import static android.view.WindowManager.LayoutParams.TYPE_STATUS_BAR;
+import static android.view.WindowManager.LayoutParams.TYPE_STATUS_BAR_ADDITIONAL;
+import static android.view.WindowManager.LayoutParams.TYPE_STATUS_BAR_SUB_PANEL;
 import static android.view.WindowManager.LayoutParams.TYPE_TOAST;
 import static android.view.WindowManager.LayoutParams.TYPE_VOICE_INTERACTION;
+import static android.view.WindowManager.LayoutParams.TYPE_VOICE_INTERACTION_STARTING;
 import static android.view.WindowManager.LayoutParams.TYPE_WALLPAPER;
 import static android.view.WindowManager.LayoutParams.isSystemAlertWindowType;
 import static android.view.WindowManager.ScreenshotSource.SCREENSHOT_KEY_CHORD;
@@ -3058,7 +3064,7 @@
     /** {@inheritDoc} */
     @Override
     public int checkAddPermission(int type, boolean isRoundedCornerOverlay, String packageName,
-            int[] outAppOp) {
+            int[] outAppOp, int displayId) {
         if (isRoundedCornerOverlay && mContext.checkCallingOrSelfPermission(INTERNAL_SYSTEM_WINDOW)
                 != PERMISSION_GRANTED) {
             return ADD_PERMISSION_DENIED;
@@ -3098,6 +3104,12 @@
                 case TYPE_VOICE_INTERACTION:
                 case TYPE_QS_DIALOG:
                 case TYPE_NAVIGATION_BAR_PANEL:
+                case TYPE_STATUS_BAR:
+                case TYPE_NOTIFICATION_SHADE:
+                case TYPE_NAVIGATION_BAR:
+                case TYPE_STATUS_BAR_ADDITIONAL:
+                case TYPE_STATUS_BAR_SUB_PANEL:
+                case TYPE_VOICE_INTERACTION_STARTING:
                     // The window manager will check these.
                     return ADD_OKAY;
             }
@@ -3141,6 +3153,13 @@
             return ADD_OKAY;
         }
 
+        // Allow virtual device owners to add overlays on the displays they own.
+        if (mWindowManagerFuncs.isCallerVirtualDeviceOwner(displayId, callingUid)
+                && mContext.checkCallingOrSelfPermission(CREATE_VIRTUAL_DEVICE)
+                == PERMISSION_GRANTED) {
+            return ADD_OKAY;
+        }
+
         // check if user has enabled this operation. SecurityException will be thrown if this app
         // has not been allowed by the user. The reason to use "noteOp" (instead of checkOp) is to
         // make sure the usage is logged.
diff --git a/services/core/java/com/android/server/policy/WindowManagerPolicy.java b/services/core/java/com/android/server/policy/WindowManagerPolicy.java
index 989c8a8..892af6b 100644
--- a/services/core/java/com/android/server/policy/WindowManagerPolicy.java
+++ b/services/core/java/com/android/server/policy/WindowManagerPolicy.java
@@ -362,6 +362,12 @@
          * Invoked when a screenshot is taken of the given display to notify registered listeners.
          */
         List<ComponentName> notifyScreenshotListeners(int displayId);
+
+        /**
+         * Returns whether the given UID is the owner of a virtual device, which the given display
+         * belongs to.
+         */
+        boolean isCallerVirtualDeviceOwner(int displayId, int callingUid);
     }
 
     /**
@@ -421,6 +427,7 @@
      * @param packageName package name
      * @param outAppOp First element will be filled with the app op corresponding to
      *                 this window, or OP_NONE.
+     * @param displayId The display on which this window is being added.
      *
      * @return {@link WindowManagerGlobal#ADD_OKAY} if the add can proceed;
      *      else an error code, usually
@@ -429,7 +436,7 @@
      * @see WindowManager.LayoutParams#PRIVATE_FLAG_IS_ROUNDED_CORNERS_OVERLAY
      */
     int checkAddPermission(int type, boolean isRoundedCornerOverlay, String packageName,
-            int[] outAppOp);
+            int[] outAppOp, int displayId);
 
     /**
      * After the window manager has computed the current configuration based
diff --git a/services/core/java/com/android/server/wm/ActivityTaskSupervisor.java b/services/core/java/com/android/server/wm/ActivityTaskSupervisor.java
index e90a2c9..9a3ad2d 100644
--- a/services/core/java/com/android/server/wm/ActivityTaskSupervisor.java
+++ b/services/core/java/com/android/server/wm/ActivityTaskSupervisor.java
@@ -107,7 +107,6 @@
 import android.app.servertransaction.PauseActivityItem;
 import android.app.servertransaction.ResumeActivityItem;
 import android.app.servertransaction.StopActivityItem;
-import android.companion.virtual.VirtualDeviceManager;
 import android.content.ComponentName;
 import android.content.Context;
 import android.content.Intent;
@@ -158,6 +157,7 @@
 import com.android.server.am.ActivityManagerService;
 import com.android.server.am.HostingRecord;
 import com.android.server.am.UserState;
+import com.android.server.companion.virtual.VirtualDeviceManagerInternal;
 import com.android.server.pm.SaferIntentUtils;
 import com.android.server.utils.Slogf;
 import com.android.server.wm.ActivityMetricsLogger.LaunchingState;
@@ -285,7 +285,7 @@
     private WindowManagerService mWindowManager;
 
     private AppOpsManager mAppOpsManager;
-    private VirtualDeviceManager mVirtualDeviceManager;
+    private VirtualDeviceManagerInternal mVirtualDeviceManagerInternal;
 
     /** Common synchronization logic used to save things to disks. */
     PersisterQueue mPersisterQueue;
@@ -1298,16 +1298,24 @@
         if (displayId == DEFAULT_DISPLAY || displayId == INVALID_DISPLAY)  {
             return Context.DEVICE_ID_DEFAULT;
         }
-        if (mVirtualDeviceManager == null) {
+        if (mVirtualDeviceManagerInternal == null) {
             if (mService.mHasCompanionDeviceSetupFeature) {
-                mVirtualDeviceManager =
-                        mService.mContext.getSystemService(VirtualDeviceManager.class);
+                mVirtualDeviceManagerInternal =
+                        LocalServices.getService(VirtualDeviceManagerInternal.class);
             }
-            if (mVirtualDeviceManager == null) {
+            if (mVirtualDeviceManagerInternal == null) {
                 return Context.DEVICE_ID_DEFAULT;
             }
         }
-        return mVirtualDeviceManager.getDeviceIdForDisplayId(displayId);
+        return mVirtualDeviceManagerInternal.getDeviceIdForDisplayId(displayId);
+    }
+
+    boolean isDeviceOwnerUid(int displayId, int callingUid) {
+        final int deviceId = getDeviceIdForDisplayId(displayId);
+        if (deviceId == Context.DEVICE_ID_DEFAULT || deviceId == Context.DEVICE_ID_INVALID) {
+            return false;
+        }
+        return mVirtualDeviceManagerInternal.getDeviceOwnerUid(deviceId) == callingUid;
     }
 
     private AppOpsManager getAppOpsManager() {
diff --git a/services/core/java/com/android/server/wm/DisplayPolicy.java b/services/core/java/com/android/server/wm/DisplayPolicy.java
index 745b792..5c62120 100644
--- a/services/core/java/com/android/server/wm/DisplayPolicy.java
+++ b/services/core/java/com/android/server/wm/DisplayPolicy.java
@@ -1036,7 +1036,7 @@
     /**
      * Check if a window can be added to the system.
      *
-     * Currently enforces that two window types are singletons per display:
+     * Currently enforces that these window types are singletons per display:
      * <ul>
      * <li>{@link WindowManager.LayoutParams#TYPE_STATUS_BAR}</li>
      * <li>{@link WindowManager.LayoutParams#TYPE_NOTIFICATION_SHADE}</li>
@@ -1058,41 +1058,39 @@
             ActivityTaskManagerService.enforceTaskPermission("DisplayPolicy");
         }
 
+        final String systemUiPermission =
+                mService.isCallerVirtualDeviceOwner(mDisplayContent.getDisplayId(), callingUid)
+                        // Allow virtual device owners to add system windows on their displays.
+                        ? android.Manifest.permission.CREATE_VIRTUAL_DEVICE
+                        : android.Manifest.permission.STATUS_BAR_SERVICE;
+
         switch (attrs.type) {
             case TYPE_STATUS_BAR:
-                mContext.enforcePermission(
-                        android.Manifest.permission.STATUS_BAR_SERVICE, callingPid, callingUid,
+                mContext.enforcePermission(systemUiPermission, callingPid, callingUid,
                         "DisplayPolicy");
                 if (mStatusBar != null && mStatusBar.isAlive()) {
                     return WindowManagerGlobal.ADD_MULTIPLE_SINGLETON;
                 }
                 break;
             case TYPE_NOTIFICATION_SHADE:
-                mContext.enforcePermission(
-                        android.Manifest.permission.STATUS_BAR_SERVICE, callingPid, callingUid,
+                mContext.enforcePermission(systemUiPermission, callingPid, callingUid,
                         "DisplayPolicy");
-                if (mNotificationShade != null) {
-                    if (mNotificationShade.isAlive()) {
-                        return WindowManagerGlobal.ADD_MULTIPLE_SINGLETON;
-                    }
+                if (mNotificationShade != null && mNotificationShade.isAlive()) {
+                    return WindowManagerGlobal.ADD_MULTIPLE_SINGLETON;
                 }
                 break;
             case TYPE_NAVIGATION_BAR:
-                mContext.enforcePermission(android.Manifest.permission.STATUS_BAR_SERVICE,
-                        callingPid, callingUid, "DisplayPolicy");
+                mContext.enforcePermission(systemUiPermission, callingPid, callingUid,
+                        "DisplayPolicy");
                 if (mNavigationBar != null && mNavigationBar.isAlive()) {
                     return WindowManagerGlobal.ADD_MULTIPLE_SINGLETON;
                 }
                 break;
             case TYPE_NAVIGATION_BAR_PANEL:
-                mContext.enforcePermission(android.Manifest.permission.STATUS_BAR_SERVICE,
-                        callingPid, callingUid, "DisplayPolicy");
-                break;
             case TYPE_STATUS_BAR_ADDITIONAL:
             case TYPE_STATUS_BAR_SUB_PANEL:
             case TYPE_VOICE_INTERACTION_STARTING:
-                mContext.enforcePermission(
-                        android.Manifest.permission.STATUS_BAR_SERVICE, callingPid, callingUid,
+                mContext.enforcePermission(systemUiPermission, callingPid, callingUid,
                         "DisplayPolicy");
                 break;
             case TYPE_STATUS_BAR_PANEL:
@@ -1102,8 +1100,7 @@
         if (attrs.providedInsets != null) {
             // Recents component is allowed to add inset types.
             if (!mService.mAtmService.isCallerRecents(callingUid)) {
-                mContext.enforcePermission(
-                        android.Manifest.permission.STATUS_BAR_SERVICE, callingPid, callingUid,
+                mContext.enforcePermission(systemUiPermission, callingPid, callingUid,
                         "DisplayPolicy");
             }
         }
diff --git a/services/core/java/com/android/server/wm/WindowManagerService.java b/services/core/java/com/android/server/wm/WindowManagerService.java
index 979b3a5..dae5c8d 100644
--- a/services/core/java/com/android/server/wm/WindowManagerService.java
+++ b/services/core/java/com/android/server/wm/WindowManagerService.java
@@ -1526,7 +1526,7 @@
         final boolean isRoundedCornerOverlay = (attrs.privateFlags
                 & PRIVATE_FLAG_IS_ROUNDED_CORNERS_OVERLAY) != 0;
         int res = mPolicy.checkAddPermission(attrs.type, isRoundedCornerOverlay, attrs.packageName,
-                appOp);
+                appOp, displayId);
         if (res != ADD_OKAY) {
             return res;
         }
@@ -10123,6 +10123,23 @@
         }
     }
 
+    /**
+     * Returns whether the given UID is the owner of a virtual device, which the given display
+     * belongs to.
+     */
+    @Override
+    public boolean isCallerVirtualDeviceOwner(int displayId, int callingUid) {
+        if (!android.companion.virtualdevice.flags.Flags.statusBarAndInsets()) {
+            return false;
+        }
+        final long identity = Binder.clearCallingIdentity();
+        try {
+            return mAtmService.mTaskSupervisor.isDeviceOwnerUid(displayId, callingUid);
+        } finally {
+            Binder.restoreCallingIdentity(identity);
+        }
+    }
+
     @RequiresPermission(ACCESS_SURFACE_FLINGER)
     @Override
     public boolean replaceContentOnDisplay(int displayId, SurfaceControl sc) {
diff --git a/services/tests/wmtests/src/com/android/server/policy/PhoneWindowManagerTests.java b/services/tests/wmtests/src/com/android/server/policy/PhoneWindowManagerTests.java
index 07934ea..e694c0b 100644
--- a/services/tests/wmtests/src/com/android/server/policy/PhoneWindowManagerTests.java
+++ b/services/tests/wmtests/src/com/android/server/policy/PhoneWindowManagerTests.java
@@ -188,7 +188,7 @@
                 .FLAG_CREATE_ACCESSIBILITY_OVERLAY_APP_OP_ENABLED);
         int[] outAppOp = new int[1];
         assertEquals(ADD_OKAY, mPhoneWindowManager.checkAddPermission(TYPE_WALLPAPER,
-                /* isRoundedCornerOverlay= */ false, "test.pkg", outAppOp));
+                /* isRoundedCornerOverlay= */ false, "test.pkg", outAppOp, DEFAULT_DISPLAY));
         assertThat(outAppOp[0]).isEqualTo(AppOpsManager.OP_NONE);
     }
 
@@ -198,7 +198,7 @@
                 .FLAG_CREATE_ACCESSIBILITY_OVERLAY_APP_OP_ENABLED);
         int[] outAppOp = new int[1];
         assertEquals(ADD_OKAY, mPhoneWindowManager.checkAddPermission(TYPE_ACCESSIBILITY_OVERLAY,
-                /* isRoundedCornerOverlay= */ false, "test.pkg", outAppOp));
+                /* isRoundedCornerOverlay= */ false, "test.pkg", outAppOp, DEFAULT_DISPLAY));
         assertThat(outAppOp[0]).isEqualTo(AppOpsManager.OP_CREATE_ACCESSIBILITY_OVERLAY);
     }
 
@@ -208,7 +208,7 @@
                 .FLAG_CREATE_ACCESSIBILITY_OVERLAY_APP_OP_ENABLED);
         int[] outAppOp = new int[1];
         assertEquals(ADD_OKAY, mPhoneWindowManager.checkAddPermission(TYPE_ACCESSIBILITY_OVERLAY,
-                /* isRoundedCornerOverlay= */ false, "test.pkg", outAppOp));
+                /* isRoundedCornerOverlay= */ false, "test.pkg", outAppOp, DEFAULT_DISPLAY));
         assertThat(outAppOp[0]).isEqualTo(AppOpsManager.OP_NONE);
     }
 
diff --git a/services/tests/wmtests/src/com/android/server/wm/TestWindowManagerPolicy.java b/services/tests/wmtests/src/com/android/server/wm/TestWindowManagerPolicy.java
index d62c626..eebb487 100644
--- a/services/tests/wmtests/src/com/android/server/wm/TestWindowManagerPolicy.java
+++ b/services/tests/wmtests/src/com/android/server/wm/TestWindowManagerPolicy.java
@@ -60,7 +60,7 @@
 
     @Override
     public int checkAddPermission(int type, boolean isRoundedCornerOverlay, String packageName,
-            int[] outAppOp) {
+            int[] outAppOp, int displayId) {
         return 0;
     }