diff --git a/libs/WindowManager/Shell/shared/src/com/android/wm/shell/shared/desktopmode/DesktopModeFlags.kt b/libs/WindowManager/Shell/shared/src/com/android/wm/shell/shared/desktopmode/DesktopModeFlags.kt
index 8f7fdd6..61ec49c 100644
--- a/libs/WindowManager/Shell/shared/src/com/android/wm/shell/shared/desktopmode/DesktopModeFlags.kt
+++ b/libs/WindowManager/Shell/shared/src/com/android/wm/shell/shared/desktopmode/DesktopModeFlags.kt
@@ -35,7 +35,8 @@
     private val shouldOverrideByDevOption: Boolean
 ) {
   // All desktop mode related flags will be added here
-  DESKTOP_WINDOWING_MODE(DesktopModeStatus::isDesktopModeFlagEnabled, true);
+  DESKTOP_WINDOWING_MODE(DesktopModeStatus::isDesktopModeFlagEnabled, true),
+  WALLPAPER_ACTIVITY(Flags::enableDesktopWindowingWallpaperActivity, true);
 
   // Local cache for toggle override, which is initialized once on its first access. It needs to be
   // refreshed only on reboots as overridden state takes effect on reboots.
@@ -52,10 +53,14 @@
           context.contentResolver == null) {
         flagFunction()
       } else {
+        val shouldToggleBeEnabledByDefault = DesktopModeStatus.shouldDevOptionBeEnabledByDefault()
         when (getToggleOverride(context)) {
           ToggleOverride.OVERRIDE_UNSET -> flagFunction()
-          ToggleOverride.OVERRIDE_OFF -> false
-          ToggleOverride.OVERRIDE_ON -> true
+          // When toggle override matches its default state, don't override flags. This helps users
+          // reset their feature overrides.
+          ToggleOverride.OVERRIDE_OFF ->
+              if (shouldToggleBeEnabledByDefault) false else flagFunction()
+          ToggleOverride.OVERRIDE_ON -> if (shouldToggleBeEnabledByDefault) flagFunction() else true
         }
       }
 
diff --git a/libs/WindowManager/Shell/tests/unittest/src/com/android/wm/shell/shared/desktopmode/DesktopModeFlagsTest.kt b/libs/WindowManager/Shell/tests/unittest/src/com/android/wm/shell/shared/desktopmode/DesktopModeFlagsTest.kt
index 17983b2..3ec65c7 100644
--- a/libs/WindowManager/Shell/tests/unittest/src/com/android/wm/shell/shared/desktopmode/DesktopModeFlagsTest.kt
+++ b/libs/WindowManager/Shell/tests/unittest/src/com/android/wm/shell/shared/desktopmode/DesktopModeFlagsTest.kt
@@ -25,6 +25,7 @@
 import com.android.dx.mockito.inline.extended.ExtendedMockito
 import com.android.dx.mockito.inline.extended.StaticMockitoSession
 import com.android.window.flags.Flags.FLAG_ENABLE_DESKTOP_WINDOWING_MODE
+import com.android.window.flags.Flags.FLAG_ENABLE_DESKTOP_WINDOWING_WALLPAPER_ACTIVITY
 import com.android.window.flags.Flags.FLAG_SHOW_DESKTOP_WINDOWING_DEV_OPTION
 import com.android.wm.shell.ShellTestCase
 import com.android.wm.shell.shared.DesktopModeStatus
@@ -32,6 +33,7 @@
 import com.android.wm.shell.shared.desktopmode.DesktopModeFlags.ToggleOverride.OVERRIDE_OFF
 import com.android.wm.shell.shared.desktopmode.DesktopModeFlags.ToggleOverride.OVERRIDE_ON
 import com.android.wm.shell.shared.desktopmode.DesktopModeFlags.ToggleOverride.OVERRIDE_UNSET
+import com.android.wm.shell.shared.desktopmode.DesktopModeFlags.WALLPAPER_ACTIVITY
 import com.google.common.truth.Truth.assertThat
 import org.junit.Before
 import org.junit.Rule
@@ -308,6 +310,138 @@
         .isEqualTo(OVERRIDE_UNSET.setting.toString())
   }
 
+  @Test
+  @EnableFlags(
+    FLAG_SHOW_DESKTOP_WINDOWING_DEV_OPTION,
+    FLAG_ENABLE_DESKTOP_WINDOWING_MODE,
+    FLAG_ENABLE_DESKTOP_WINDOWING_WALLPAPER_ACTIVITY)
+  fun isEnabled_dwFlagEnabled_overrideUnset_featureFlagOn_returnsTrue() {
+    setOverride(OVERRIDE_UNSET.setting)
+
+    // For unset overrides, follow flag
+    assertThat(WALLPAPER_ACTIVITY.isEnabled(mContext)).isTrue()
+  }
+
+  @Test
+  @EnableFlags(FLAG_SHOW_DESKTOP_WINDOWING_DEV_OPTION, FLAG_ENABLE_DESKTOP_WINDOWING_MODE)
+  @DisableFlags(FLAG_ENABLE_DESKTOP_WINDOWING_WALLPAPER_ACTIVITY)
+  fun isEnabled_dwFlagEnabled_overrideUnset_featureFlagOff_returnsFalse() {
+    setOverride(OVERRIDE_UNSET.setting)
+
+    // For unset overrides, follow flag
+    assertThat(WALLPAPER_ACTIVITY.isEnabled(mContext)).isFalse()
+  }
+
+  @Test
+  @EnableFlags(
+    FLAG_SHOW_DESKTOP_WINDOWING_DEV_OPTION,
+    FLAG_ENABLE_DESKTOP_WINDOWING_MODE,
+    FLAG_ENABLE_DESKTOP_WINDOWING_WALLPAPER_ACTIVITY)
+  fun isEnabled_dwFlagEnabled_overrideOn_featureFlagOn_returnsTrue() {
+    setOverride(OVERRIDE_ON.setting)
+
+    // When toggle override matches its default state (dw flag), don't override flags
+    assertThat(WALLPAPER_ACTIVITY.isEnabled(mContext)).isTrue()
+  }
+
+  @Test
+  @EnableFlags(FLAG_SHOW_DESKTOP_WINDOWING_DEV_OPTION, FLAG_ENABLE_DESKTOP_WINDOWING_MODE)
+  @DisableFlags(FLAG_ENABLE_DESKTOP_WINDOWING_WALLPAPER_ACTIVITY)
+  fun isEnabled_dwFlagEnabled_overrideOn_featureFlagOff_returnFalse() {
+    setOverride(OVERRIDE_ON.setting)
+
+    // When toggle override matches its default state (dw flag), don't override flags
+    assertThat(WALLPAPER_ACTIVITY.isEnabled(mContext)).isFalse()
+  }
+
+  @Test
+  @EnableFlags(
+    FLAG_SHOW_DESKTOP_WINDOWING_DEV_OPTION,
+    FLAG_ENABLE_DESKTOP_WINDOWING_MODE,
+    FLAG_ENABLE_DESKTOP_WINDOWING_WALLPAPER_ACTIVITY)
+  fun isEnabled_dwFlagEnabled_overrideOff_featureFlagOn_returnsFalse() {
+    setOverride(OVERRIDE_OFF.setting)
+
+    // Follow override if they exist, and is not equal to default toggle state (dw flag)
+    assertThat(WALLPAPER_ACTIVITY.isEnabled(mContext)).isFalse()
+  }
+
+  @Test
+  @EnableFlags(FLAG_SHOW_DESKTOP_WINDOWING_DEV_OPTION, FLAG_ENABLE_DESKTOP_WINDOWING_MODE)
+  @DisableFlags(FLAG_ENABLE_DESKTOP_WINDOWING_WALLPAPER_ACTIVITY)
+  fun isEnabled_dwFlagEnabled_overrideOff_featureFlagOff_returnsFalse() {
+    setOverride(OVERRIDE_OFF.setting)
+
+    // Follow override if they exist, and is not equal to default toggle state (dw flag)
+    assertThat(WALLPAPER_ACTIVITY.isEnabled(mContext)).isFalse()
+  }
+
+  @Test
+  @EnableFlags(
+    FLAG_SHOW_DESKTOP_WINDOWING_DEV_OPTION, FLAG_ENABLE_DESKTOP_WINDOWING_WALLPAPER_ACTIVITY)
+  @DisableFlags(FLAG_ENABLE_DESKTOP_WINDOWING_MODE)
+  fun isEnabled_dwFlagDisabled_overrideUnset_featureFlagOn_returnsTrue() {
+    setOverride(OVERRIDE_UNSET.setting)
+
+    // For unset overrides, follow flag
+    assertThat(WALLPAPER_ACTIVITY.isEnabled(mContext)).isTrue()
+  }
+
+  @Test
+  @EnableFlags(FLAG_SHOW_DESKTOP_WINDOWING_DEV_OPTION)
+  @DisableFlags(
+    FLAG_ENABLE_DESKTOP_WINDOWING_MODE, FLAG_ENABLE_DESKTOP_WINDOWING_WALLPAPER_ACTIVITY)
+  fun isEnabled_dwFlagDisabled_overrideUnset_featureFlagOff_returnsFalse() {
+    setOverride(OVERRIDE_UNSET.setting)
+
+    // For unset overrides, follow flag
+    assertThat(WALLPAPER_ACTIVITY.isEnabled(mContext)).isFalse()
+  }
+
+  @Test
+  @EnableFlags(
+    FLAG_SHOW_DESKTOP_WINDOWING_DEV_OPTION, FLAG_ENABLE_DESKTOP_WINDOWING_WALLPAPER_ACTIVITY)
+  @DisableFlags(FLAG_ENABLE_DESKTOP_WINDOWING_MODE)
+  fun isEnabled_dwFlagDisabled_overrideOn_featureFlagOn_returnsTrue() {
+    setOverride(OVERRIDE_ON.setting)
+
+    // Follow override if they exist, and is not equal to default toggle state (dw flag)
+    assertThat(WALLPAPER_ACTIVITY.isEnabled(mContext)).isTrue()
+  }
+
+  @Test
+  @EnableFlags(FLAG_SHOW_DESKTOP_WINDOWING_DEV_OPTION)
+  @DisableFlags(
+    FLAG_ENABLE_DESKTOP_WINDOWING_MODE, FLAG_ENABLE_DESKTOP_WINDOWING_WALLPAPER_ACTIVITY)
+  fun isEnabled_dwFlagDisabled_overrideOn_featureFlagOff_returnTrue() {
+    setOverride(OVERRIDE_ON.setting)
+
+    // Follow override if they exist, and is not equal to default toggle state (dw flag)
+    assertThat(WALLPAPER_ACTIVITY.isEnabled(mContext)).isTrue()
+  }
+
+  @Test
+  @EnableFlags(
+    FLAG_SHOW_DESKTOP_WINDOWING_DEV_OPTION, FLAG_ENABLE_DESKTOP_WINDOWING_WALLPAPER_ACTIVITY)
+  @DisableFlags(FLAG_ENABLE_DESKTOP_WINDOWING_MODE)
+  fun isEnabled_dwFlagDisabled_overrideOff_featureFlagOn_returnsTrue() {
+    setOverride(OVERRIDE_OFF.setting)
+
+    // When toggle override matches its default state (dw flag), don't override flags
+    assertThat(WALLPAPER_ACTIVITY.isEnabled(mContext)).isTrue()
+  }
+
+  @Test
+  @EnableFlags(FLAG_SHOW_DESKTOP_WINDOWING_DEV_OPTION)
+  @DisableFlags(
+    FLAG_ENABLE_DESKTOP_WINDOWING_MODE, FLAG_ENABLE_DESKTOP_WINDOWING_WALLPAPER_ACTIVITY)
+  fun isEnabled_dwFlagDisabled_overrideOff_featureFlagOff_returnsFalse() {
+    setOverride(OVERRIDE_OFF.setting)
+
+    // When toggle override matches its default state (dw flag), don't override flags
+    assertThat(WALLPAPER_ACTIVITY.isEnabled(mContext)).isFalse()
+  }
+
   private fun setOverride(setting: Int?) {
     val contentResolver = mContext.contentResolver
     val key = Settings.Global.DEVELOPMENT_OVERRIDE_DESKTOP_MODE_FEATURES
@@ -319,10 +453,15 @@
   }
 
   private fun resetCache() {
-    val cachedToggleOverride =
+    val cachedToggleOverrideDesktopMode =
         DESKTOP_WINDOWING_MODE::class.java.getDeclaredField("cachedToggleOverride")
-    cachedToggleOverride.isAccessible = true
-    cachedToggleOverride.set(DESKTOP_WINDOWING_MODE, null)
+    cachedToggleOverrideDesktopMode.isAccessible = true
+    cachedToggleOverrideDesktopMode.set(DESKTOP_WINDOWING_MODE, null)
+
+    val cachedToggleOverrideWallpaperActivity =
+      WALLPAPER_ACTIVITY::class.java.getDeclaredField("cachedToggleOverride")
+    cachedToggleOverrideWallpaperActivity.isAccessible = true
+    cachedToggleOverrideWallpaperActivity.set(WALLPAPER_ACTIVITY, null)
 
     // Clear override cache stored in System property
     System.clearProperty(SYSTEM_PROPERTY_OVERRIDE_KEY)