diff --git a/packages/SystemUI/aconfig/systemui.aconfig b/packages/SystemUI/aconfig/systemui.aconfig
index fd2fa07..0dd7b25 100644
--- a/packages/SystemUI/aconfig/systemui.aconfig
+++ b/packages/SystemUI/aconfig/systemui.aconfig
@@ -746,6 +746,16 @@
 }
 
 flag {
+  name: "remove_dream_overlay_hide_on_touch"
+  namespace: "systemui"
+  description: "Removes logic to hide the dream overlay on user interaction, as it conflicts with various transitions"
+  bug: "329091030"
+  metadata {
+    purpose: PURPOSE_BUGFIX
+  }
+}
+
+flag {
     name: "keyboard_docking_indicator"
     namespace: "systemui"
     description: "Glow bar indicator reveals upon keyboard docking."
diff --git a/packages/SystemUI/multivalentTests/src/com/android/systemui/dreams/complication/HideComplicationTouchHandlerTest.java b/packages/SystemUI/multivalentTests/src/com/android/systemui/dreams/complication/HideComplicationTouchHandlerTest.java
index 315a24b..a434158 100644
--- a/packages/SystemUI/multivalentTests/src/com/android/systemui/dreams/complication/HideComplicationTouchHandlerTest.java
+++ b/packages/SystemUI/multivalentTests/src/com/android/systemui/dreams/complication/HideComplicationTouchHandlerTest.java
@@ -16,6 +16,8 @@
 
 package com.android.systemui.dreams.complication;
 
+import static com.android.systemui.Flags.FLAG_REMOVE_DREAM_OVERLAY_HIDE_ON_TOUCH;
+
 import static org.mockito.ArgumentMatchers.anyInt;
 import static org.mockito.ArgumentMatchers.eq;
 import static org.mockito.Mockito.never;
@@ -23,6 +25,8 @@
 import static org.mockito.Mockito.when;
 
 import android.os.Handler;
+import android.platform.test.annotations.DisableFlags;
+import android.platform.test.annotations.EnableFlags;
 import android.view.MotionEvent;
 import android.view.View;
 
@@ -90,6 +94,7 @@
      * Ensures no actions are taken when there multiple sessions.
      */
     @Test
+    @DisableFlags(FLAG_REMOVE_DREAM_OVERLAY_HIDE_ON_TOUCH)
     public void testSessionEndOnMultipleSessions() {
         final HideComplicationTouchHandler touchHandler = new HideComplicationTouchHandler(
                 mVisibilityController,
@@ -122,6 +127,7 @@
      * Ensures no actions are taken when the bouncer is showing.
      */
     @Test
+    @DisableFlags(FLAG_REMOVE_DREAM_OVERLAY_HIDE_ON_TOUCH)
     public void testSessionEndWhenBouncerShowing() {
         final HideComplicationTouchHandler touchHandler = new HideComplicationTouchHandler(
                 mVisibilityController,
@@ -154,6 +160,7 @@
      * Ensures no actions are taken when there multiple sessions.
      */
     @Test
+    @DisableFlags(FLAG_REMOVE_DREAM_OVERLAY_HIDE_ON_TOUCH)
     public void testSessionEndWithTouchInInset() {
         final HideComplicationTouchHandler touchHandler = new HideComplicationTouchHandler(
                 mVisibilityController,
@@ -202,6 +209,7 @@
      * Make sure visibility changes are triggered from session events.
      */
     @Test
+    @DisableFlags(FLAG_REMOVE_DREAM_OVERLAY_HIDE_ON_TOUCH)
     public void testSessionLifecycle() {
         final HideComplicationTouchHandler touchHandler = new HideComplicationTouchHandler(
                 mVisibilityController,
@@ -259,4 +267,34 @@
         // Verify session ended.
         verify(mSession).pop();
     }
+
+    @Test
+    @EnableFlags(FLAG_REMOVE_DREAM_OVERLAY_HIDE_ON_TOUCH)
+    public void testNoActionWhenDisabledByFlag() {
+        final HideComplicationTouchHandler touchHandler = new HideComplicationTouchHandler(
+                mVisibilityController,
+                RESTORE_TIMEOUT,
+                HIDE_DELAY,
+                mTouchInsetManager,
+                mStatusBarKeyguardViewManager,
+                mFakeExecutor,
+                mStateController);
+
+        // Report one session.
+        when(mSession.getActiveSessionCount()).thenReturn(1);
+
+        // Bouncer is showing.
+        when(mStatusBarKeyguardViewManager.isBouncerShowing()).thenReturn(false);
+
+        // Start session.
+        touchHandler.onSessionStart(mSession);
+
+        // Verify session end.
+        verify(mSession).pop();
+
+        mClock.advanceTime(HIDE_DELAY);
+
+        // Verify no interaction with visibility controller.
+        verify(mVisibilityController, never()).setVisibility(anyInt());
+    }
 }
diff --git a/packages/SystemUI/src/com/android/systemui/dreams/complication/HideComplicationTouchHandler.java b/packages/SystemUI/src/com/android/systemui/dreams/complication/HideComplicationTouchHandler.java
index ee48ee5..d525ce3 100644
--- a/packages/SystemUI/src/com/android/systemui/dreams/complication/HideComplicationTouchHandler.java
+++ b/packages/SystemUI/src/com/android/systemui/dreams/complication/HideComplicationTouchHandler.java
@@ -16,6 +16,7 @@
 
 package com.android.systemui.dreams.complication;
 
+import static com.android.systemui.Flags.removeDreamOverlayHideOnTouch;
 import static com.android.systemui.dreams.complication.dagger.ComplicationModule.COMPLICATIONS_FADE_OUT_DELAY;
 import static com.android.systemui.dreams.complication.dagger.ComplicationModule.COMPLICATIONS_RESTORE_TIMEOUT;
 
@@ -120,7 +121,7 @@
         final boolean bouncerShowing = mStatusBarKeyguardViewManager.isBouncerShowing();
 
         // If other sessions are interested in this touch, do not fade out elements.
-        if (session.getActiveSessionCount() > 1 || bouncerShowing
+        if (removeDreamOverlayHideOnTouch() || session.getActiveSessionCount() > 1 || bouncerShowing
                 || mOverlayStateController.areExitAnimationsRunning()) {
             if (DEBUG) {
                 Log.d(TAG, "not fading. Active session count: " + session.getActiveSessionCount()