diff --git a/services/core/java/com/android/server/inputmethod/ImeVisibilityStateComputer.java b/services/core/java/com/android/server/inputmethod/ImeVisibilityStateComputer.java
index ceb9706..25a8835 100644
--- a/services/core/java/com/android/server/inputmethod/ImeVisibilityStateComputer.java
+++ b/services/core/java/com/android/server/inputmethod/ImeVisibilityStateComputer.java
@@ -49,6 +49,7 @@
 import com.android.internal.annotations.VisibleForTesting;
 import com.android.internal.inputmethod.SoftInputShowHideReason;
 import com.android.server.LocalServices;
+import com.android.server.wm.ImeTargetChangeListener;
 import com.android.server.wm.WindowManagerInternal;
 
 import java.io.PrintWriter;
@@ -172,6 +173,19 @@
         mWindowManagerInternal = wmService;
         mImeDisplayValidator = imeDisplayValidator;
         mPolicy = imePolicy;
+        mWindowManagerInternal.setInputMethodTargetChangeListener(new ImeTargetChangeListener() {
+            @Override
+            public void onImeTargetOverlayVisibilityChanged(IBinder overlayWindowToken,
+                    boolean visible, boolean removed) {
+                // TODO(b/258048231): implement logic to fix IME layering overlay visibility issue.
+            }
+
+            @Override
+            public void onImeInputTargetVisibilityChanged(IBinder imeInputTarget,
+                    boolean visibleRequested, boolean removed) {
+                // TODO(b/258048231): implement logic to fix IME input target visibility issue.
+            }
+        });
     }
 
     /**
diff --git a/services/core/java/com/android/server/wm/DisplayContent.java b/services/core/java/com/android/server/wm/DisplayContent.java
index ef01cc8..ecce913 100644
--- a/services/core/java/com/android/server/wm/DisplayContent.java
+++ b/services/core/java/com/android/server/wm/DisplayContent.java
@@ -656,6 +656,14 @@
      */
     private InputTarget mLastImeInputTarget;
 
+
+    /**
+     * Tracks the windowToken of the input method input target and the corresponding
+     * {@link WindowContainerListener} for monitoring changes (e.g. the requested visibility
+     * change).
+     */
+    private @Nullable Pair<IBinder, WindowContainerListener> mImeTargetTokenListenerPair;
+
     /**
      * This controls the visibility and animation of the input method window.
      */
@@ -4248,7 +4256,38 @@
 
     @VisibleForTesting
     void setImeInputTarget(InputTarget target) {
+        if (mImeTargetTokenListenerPair != null) {
+            // Unregister the listener before changing to the new IME input target.
+            final WindowToken oldToken = mTokenMap.get(mImeTargetTokenListenerPair.first);
+            if (oldToken != null) {
+                oldToken.unregisterWindowContainerListener(mImeTargetTokenListenerPair.second);
+            }
+            mImeTargetTokenListenerPair = null;
+        }
         mImeInputTarget = target;
+        // Notify listeners about IME input target window visibility by the target change.
+        if (target != null) {
+            // TODO(b/276743705): Let InputTarget register the visibility change of the hierarchy.
+            final WindowState targetWin = target.getWindowState();
+            if (targetWin != null) {
+                mImeTargetTokenListenerPair = new Pair<>(targetWin.mToken.token,
+                        new WindowContainerListener() {
+                            @Override
+                            public void onVisibleRequestedChanged(boolean isVisibleRequested) {
+                                // Notify listeners for IME input target window visibility change
+                                // requested by the parent container.
+                                mWmService.dispatchImeInputTargetVisibilityChanged(
+                                        targetWin.mClient.asBinder(), isVisibleRequested,
+                                        targetWin.mActivityRecord != null
+                                                && targetWin.mActivityRecord.finishing);
+                            }
+                        });
+                targetWin.mToken.registerWindowContainerListener(
+                        mImeTargetTokenListenerPair.second);
+                mWmService.dispatchImeInputTargetVisibilityChanged(targetWin.mClient.asBinder(),
+                        targetWin.isVisible() /* visible */, false /* removed */);
+            }
+        }
         if (refreshImeSecureFlag(getPendingTransaction())) {
             mWmService.requestTraversal();
         }
diff --git a/services/core/java/com/android/server/wm/ImeTargetChangeListener.java b/services/core/java/com/android/server/wm/ImeTargetChangeListener.java
new file mode 100644
index 0000000..8bc445b
--- /dev/null
+++ b/services/core/java/com/android/server/wm/ImeTargetChangeListener.java
@@ -0,0 +1,58 @@
+/*
+ * Copyright (C) 2023 The Android Open Source Project
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package com.android.server.wm;
+
+import android.annotation.NonNull;
+import android.os.IBinder;
+
+/**
+ * Callback the IME targeting window visibility change state for
+ * {@link com.android.server.inputmethod.InputMethodManagerService} to manage the IME surface
+ * visibility and z-ordering.
+ */
+public interface ImeTargetChangeListener {
+    /**
+     * Called when a non-IME-focusable overlay window being the IME layering target (e.g. a
+     * window with {@link android.view.WindowManager.LayoutParams#FLAG_NOT_FOCUSABLE} and
+     * {@link android.view.WindowManager.LayoutParams#FLAG_ALT_FOCUSABLE_IM} flags)
+     * has changed its window visibility.
+     *
+     * @param overlayWindowToken the window token of the overlay window.
+     * @param visible            the visibility of the overlay window, {@code true} means visible
+     *                           and {@code false} otherwise.
+     * @param removed            Whether the IME target overlay window has being removed.
+     */
+    default void onImeTargetOverlayVisibilityChanged(@NonNull IBinder overlayWindowToken,
+            boolean visible, boolean removed) {
+    }
+
+    /**
+     * Called when the visibility of IME input target window has changed.
+     *
+     * @param imeInputTarget   the window token of the IME input target window.
+     * @param visible          the new window visibility made by {@param imeInputTarget}. visible is
+     *                         {@code true} when switching to the new visible IME input target
+     *                         window and started input, or the same input target relayout to
+     *                         visible from invisible. In contrast, visible is {@code false} when
+     *                         closing the input target, or the same input target relayout to
+     *                         invisible from visible.
+     * @param removed          Whether the IME input target window has being removed.
+     */
+    default void onImeInputTargetVisibilityChanged(@NonNull IBinder imeInputTarget, boolean visible,
+            boolean removed) {
+    }
+}
diff --git a/services/core/java/com/android/server/wm/WindowManagerInternal.java b/services/core/java/com/android/server/wm/WindowManagerInternal.java
index 969afe5..4922523 100644
--- a/services/core/java/com/android/server/wm/WindowManagerInternal.java
+++ b/services/core/java/com/android/server/wm/WindowManagerInternal.java
@@ -848,6 +848,16 @@
     }
 
     /**
+     * Sets by the {@link com.android.server.inputmethod.InputMethodManagerService} to monitor
+     * the visibility change of the IME targeted windows.
+     *
+     * @see ImeTargetChangeListener#onImeTargetOverlayVisibilityChanged
+     * @see ImeTargetChangeListener#onImeInputTargetVisibilityChanged
+     */
+    public abstract void setInputMethodTargetChangeListener(
+            @NonNull ImeTargetChangeListener listener);
+
+    /**
      * Moves the {@link WindowToken} {@code binder} to the display specified by {@code displayId}.
      */
     public abstract void moveWindowTokenToDisplay(IBinder binder, int displayId);
diff --git a/services/core/java/com/android/server/wm/WindowManagerService.java b/services/core/java/com/android/server/wm/WindowManagerService.java
index c599da8..497f81f 100644
--- a/services/core/java/com/android/server/wm/WindowManagerService.java
+++ b/services/core/java/com/android/server/wm/WindowManagerService.java
@@ -724,6 +724,9 @@
 
     boolean mHardKeyboardAvailable;
     WindowManagerInternal.OnHardKeyboardStatusChangeListener mHardKeyboardStatusChangeListener;
+
+    @Nullable ImeTargetChangeListener mImeTargetChangeListener;
+
     SettingsObserver mSettingsObserver;
     final EmbeddedWindowController mEmbeddedWindowController;
     final AnrController mAnrController;
@@ -1808,6 +1811,10 @@
 
             if (imMayMove) {
                 displayContent.computeImeTarget(true /* updateImeTarget */);
+                if (win.isImeOverlayLayeringTarget()) {
+                    dispatchImeTargetOverlayVisibilityChanged(client.asBinder(),
+                            win.isVisibleRequestedOrAdding(), false /* removed */);
+                }
             }
 
             // Don't do layout here, the window must call
@@ -2329,6 +2336,8 @@
                 winAnimator.mSurfaceController.setSecure(win.isSecureLocked());
             }
 
+            final boolean wasVisible = win.isVisible();
+
             win.mRelayoutCalled = true;
             win.mInRelayout = true;
 
@@ -2337,7 +2346,6 @@
                     "Relayout %s: oldVis=%d newVis=%d. %s", win, oldVisibility,
                             viewVisibility, new RuntimeException().fillInStackTrace());
 
-
             win.setDisplayLayoutNeeded();
             win.mGivenInsetsPending = (flags & WindowManagerGlobal.RELAYOUT_INSETS_PENDING) != 0;
 
@@ -2502,6 +2510,18 @@
             }
             win.mInRelayout = false;
 
+            final boolean winVisibleChanged = win.isVisible() != wasVisible;
+            if (win.isImeOverlayLayeringTarget() && winVisibleChanged) {
+                dispatchImeTargetOverlayVisibilityChanged(client.asBinder(),
+                        win.isVisible(), false /* removed */);
+            }
+            // Notify listeners about IME input target window visibility change.
+            final boolean isImeInputTarget = win.getDisplayContent().getImeInputTarget() == win;
+            if (isImeInputTarget && winVisibleChanged) {
+                dispatchImeInputTargetVisibilityChanged(win.mClient.asBinder(),
+                        win.isVisible() /* visible */, false /* removed */);
+            }
+
             if (outSyncIdBundle != null) {
                 final int maybeSyncSeqId;
                 if (USE_BLAST_SYNC && win.useBLASTSync() && viewVisibility == View.VISIBLE
@@ -3326,6 +3346,22 @@
         });
     }
 
+    void dispatchImeTargetOverlayVisibilityChanged(@NonNull IBinder token, boolean visible,
+            boolean removed) {
+        if (mImeTargetChangeListener != null) {
+            mH.post(() -> mImeTargetChangeListener.onImeTargetOverlayVisibilityChanged(token,
+                    visible, removed));
+        }
+    }
+
+    void dispatchImeInputTargetVisibilityChanged(@NonNull IBinder token, boolean visible,
+            boolean removed) {
+        if (mImeTargetChangeListener != null) {
+            mH.post(() -> mImeTargetChangeListener.onImeInputTargetVisibilityChanged(token,
+                    visible, removed));
+        }
+    }
+
     @Override
     public void setSwitchingUser(boolean switching) {
         if (!checkCallingPermission(Manifest.permission.INTERACT_ACROSS_USERS_FULL,
@@ -8238,6 +8274,13 @@
             }
             return null;
         }
+
+        @Override
+        public void setInputMethodTargetChangeListener(@NonNull ImeTargetChangeListener listener) {
+            synchronized (mGlobalLock) {
+                mImeTargetChangeListener = listener;
+            }
+        }
     }
 
     private final class ImeTargetVisibilityPolicyImpl extends ImeTargetVisibilityPolicy {
diff --git a/services/core/java/com/android/server/wm/WindowState.java b/services/core/java/com/android/server/wm/WindowState.java
index d1bd06f..a18c443 100644
--- a/services/core/java/com/android/server/wm/WindowState.java
+++ b/services/core/java/com/android/server/wm/WindowState.java
@@ -353,6 +353,7 @@
     // overlay window is hidden because the owning app is suspended
     private boolean mHiddenWhileSuspended;
     private boolean mAppOpVisibility = true;
+
     boolean mPermanentlyHidden; // the window should never be shown again
     // This is a non-system overlay window that is currently force hidden.
     private boolean mForceHideNonSystemOverlayWindow;
@@ -2345,6 +2346,10 @@
         mWinAnimator.destroySurfaceLocked(getSyncTransaction());
         super.removeImmediately();
 
+        if (isImeOverlayLayeringTarget()) {
+            mWmService.dispatchImeTargetOverlayVisibilityChanged(mClient.asBinder(),
+                    false /* visible */, true /* removed */);
+        }
         final DisplayContent dc = getDisplayContent();
         if (isImeLayeringTarget()) {
             // Remove the attached IME screenshot surface.
@@ -2355,6 +2360,8 @@
             dc.computeImeTarget(true /* updateImeTarget */);
         }
         if (dc.getImeInputTarget() == this && !inRelaunchingActivity()) {
+            mWmService.dispatchImeInputTargetVisibilityChanged(mClient.asBinder(),
+                    false /* visible */, true /* removed */);
             dc.updateImeInputAndControlTarget(null);
         }
 
@@ -5490,6 +5497,14 @@
         return getDisplayContent().getImeTarget(IME_TARGET_LAYERING) == this;
     }
 
+    /**
+     * Whether the window is non-focusable IME overlay layering target.
+     */
+    boolean isImeOverlayLayeringTarget() {
+        return isImeLayeringTarget()
+                && (mAttrs.flags & (FLAG_ALT_FOCUSABLE_IM | FLAG_NOT_FOCUSABLE)) != 0;
+    }
+
     WindowState getImeLayeringTarget() {
         final InsetsControlTarget target = getDisplayContent().getImeTarget(IME_TARGET_LAYERING);
         return target != null ? target.getWindow() : null;
diff --git a/services/tests/wmtests/src/com/android/server/wm/WindowStateTests.java b/services/tests/wmtests/src/com/android/server/wm/WindowStateTests.java
index b48fd7d..457929b 100644
--- a/services/tests/wmtests/src/com/android/server/wm/WindowStateTests.java
+++ b/services/tests/wmtests/src/com/android/server/wm/WindowStateTests.java
@@ -20,6 +20,7 @@
 import static android.app.WindowConfiguration.WINDOWING_MODE_FULLSCREEN;
 import static android.app.WindowConfiguration.WINDOWING_MODE_MULTI_WINDOW;
 import static android.app.WindowConfiguration.WINDOWING_MODE_PINNED;
+import static android.view.Display.DEFAULT_DISPLAY;
 import static android.view.InsetsSource.ID_IME;
 import static android.view.Surface.ROTATION_0;
 import static android.view.Surface.ROTATION_270;
@@ -83,17 +84,25 @@
 import android.graphics.Matrix;
 import android.graphics.Point;
 import android.graphics.Rect;
+import android.os.Bundle;
 import android.os.IBinder;
 import android.os.InputConfig;
 import android.os.RemoteException;
 import android.platform.test.annotations.Presubmit;
 import android.util.ArraySet;
+import android.util.MergedConfiguration;
 import android.view.Gravity;
+import android.view.IWindow;
+import android.view.IWindowSessionCallback;
 import android.view.InputWindowHandle;
 import android.view.InsetsSource;
+import android.view.InsetsSourceControl;
 import android.view.InsetsState;
 import android.view.SurfaceControl;
+import android.view.View;
+import android.view.WindowInsets;
 import android.view.WindowManager;
+import android.window.ClientWindowFrames;
 import android.window.ITaskFragmentOrganizer;
 import android.window.TaskFragmentOrganizer;
 
@@ -1250,4 +1259,118 @@
         assertEquals(new ArraySet(Arrays.asList(expectedArea1, expectedArea2)),
                      new ArraySet(unrestrictedKeepClearAreas));
     }
+
+    @Test
+    public void testImeTargetChangeListener_OnImeInputTargetVisibilityChanged() {
+        final TestImeTargetChangeListener listener = new TestImeTargetChangeListener();
+        mWm.mImeTargetChangeListener = listener;
+
+        final WindowState imeTarget = createWindow(null /* parent */, TYPE_BASE_APPLICATION,
+                createActivityRecord(mDisplayContent), "imeTarget");
+
+        imeTarget.mActivityRecord.setVisibleRequested(true);
+        makeWindowVisible(imeTarget);
+        mDisplayContent.setImeInputTarget(imeTarget);
+        waitHandlerIdle(mWm.mH);
+
+        assertThat(listener.mImeTargetToken).isEqualTo(imeTarget.mClient.asBinder());
+        assertThat(listener.mIsRemoved).isFalse();
+        assertThat(listener.mIsVisibleForImeInputTarget).isTrue();
+
+        imeTarget.mActivityRecord.setVisibleRequested(false);
+        waitHandlerIdle(mWm.mH);
+
+        assertThat(listener.mImeTargetToken).isEqualTo(imeTarget.mClient.asBinder());
+        assertThat(listener.mIsRemoved).isFalse();
+        assertThat(listener.mIsVisibleForImeInputTarget).isFalse();
+
+        imeTarget.removeImmediately();
+        assertThat(listener.mImeTargetToken).isEqualTo(imeTarget.mClient.asBinder());
+        assertThat(listener.mIsRemoved).isTrue();
+        assertThat(listener.mIsVisibleForImeInputTarget).isFalse();
+    }
+
+    @SetupWindows(addWindows = {W_INPUT_METHOD})
+    @Test
+    public void testImeTargetChangeListener_OnImeTargetOverlayVisibilityChanged() {
+        final TestImeTargetChangeListener listener = new TestImeTargetChangeListener();
+        mWm.mImeTargetChangeListener = listener;
+
+        // Scenario 1: test addWindow/relayoutWindow to add Ime layering overlay window as visible.
+        final WindowToken windowToken = createTestWindowToken(TYPE_APPLICATION_OVERLAY,
+                mDisplayContent);
+        final IWindow client = new TestIWindow();
+        final Session session = new Session(mWm, new IWindowSessionCallback.Stub() {
+            @Override
+            public void onAnimatorScaleChanged(float v) throws RemoteException {
+
+            }
+        });
+        final ClientWindowFrames outFrames = new ClientWindowFrames();
+        final MergedConfiguration outConfig = new MergedConfiguration();
+        final SurfaceControl outSurfaceControl = new SurfaceControl();
+        final InsetsState outInsetsState = new InsetsState();
+        final InsetsSourceControl.Array outControls = new InsetsSourceControl.Array();
+        final Bundle outBundle = new Bundle();
+        final WindowManager.LayoutParams params = new WindowManager.LayoutParams(
+                TYPE_APPLICATION_OVERLAY);
+        params.setTitle("imeLayeringTargetOverlay");
+        params.token = windowToken.token;
+        params.flags = FLAG_NOT_FOCUSABLE | FLAG_ALT_FOCUSABLE_IM;
+
+        mWm.addWindow(session, client, params, View.VISIBLE, DEFAULT_DISPLAY,
+                0 /* userUd */, WindowInsets.Type.defaultVisible(), null, new InsetsState(),
+                new InsetsSourceControl.Array(), new Rect(), new float[1]);
+        mWm.relayoutWindow(session, client, params, 100, 200, View.VISIBLE, 0, 0, 0,
+                outFrames, outConfig, outSurfaceControl, outInsetsState, outControls, outBundle);
+        waitHandlerIdle(mWm.mH);
+
+        final WindowState imeLayeringTargetOverlay = mDisplayContent.getWindow(
+                w -> w.mClient.asBinder() == client.asBinder());
+        assertThat(imeLayeringTargetOverlay.isVisible()).isTrue();
+        assertThat(listener.mImeTargetToken).isEqualTo(client.asBinder());
+        assertThat(listener.mIsRemoved).isFalse();
+        assertThat(listener.mIsVisibleForImeTargetOverlay).isTrue();
+
+        // Scenario 2: test relayoutWindow to let the Ime layering target overlay window invisible.
+        mWm.relayoutWindow(session, client, params, 100, 200, View.GONE, 0, 0, 0,
+                outFrames, outConfig, outSurfaceControl, outInsetsState, outControls, outBundle);
+        waitHandlerIdle(mWm.mH);
+
+        assertThat(imeLayeringTargetOverlay.isVisible()).isFalse();
+        assertThat(listener.mImeTargetToken).isEqualTo(client.asBinder());
+        assertThat(listener.mIsRemoved).isFalse();
+        assertThat(listener.mIsVisibleForImeTargetOverlay).isFalse();
+
+        // Scenario 3: test removeWindow to remove the Ime layering target overlay window.
+        mWm.removeWindow(session, client);
+        waitHandlerIdle(mWm.mH);
+
+        assertThat(listener.mImeTargetToken).isEqualTo(client.asBinder());
+        assertThat(listener.mIsRemoved).isTrue();
+        assertThat(listener.mIsVisibleForImeTargetOverlay).isFalse();
+    }
+
+    private static class TestImeTargetChangeListener implements ImeTargetChangeListener {
+        private IBinder mImeTargetToken;
+        private boolean mIsRemoved;
+        private boolean mIsVisibleForImeTargetOverlay;
+        private boolean mIsVisibleForImeInputTarget;
+
+        @Override
+        public void onImeTargetOverlayVisibilityChanged(IBinder overlayWindowToken, boolean visible,
+                boolean removed) {
+            mImeTargetToken = overlayWindowToken;
+            mIsVisibleForImeTargetOverlay = visible;
+            mIsRemoved = removed;
+        }
+
+        @Override
+        public void onImeInputTargetVisibilityChanged(IBinder imeInputTarget,
+                boolean visibleRequested, boolean removed) {
+            mImeTargetToken = imeInputTarget;
+            mIsVisibleForImeInputTarget = visibleRequested;
+            mIsRemoved = removed;
+        }
+    }
 }