diff --git a/services/surfaceflinger/CompositionEngine/include/compositionengine/CompositionRefreshArgs.h b/services/surfaceflinger/CompositionEngine/include/compositionengine/CompositionRefreshArgs.h
index 4777f13..a8322d8 100644
--- a/services/surfaceflinger/CompositionEngine/include/compositionengine/CompositionRefreshArgs.h
+++ b/services/surfaceflinger/CompositionEngine/include/compositionengine/CompositionRefreshArgs.h
@@ -97,6 +97,8 @@
     std::optional<std::chrono::steady_clock::time_point> scheduledFrameTime;
 
     std::vector<BorderRenderInfo> borderInfoList;
+
+    bool hasTrustedPresentationListener = false;
 };
 
 } // namespace android::compositionengine
diff --git a/services/surfaceflinger/CompositionEngine/include/compositionengine/LayerFECompositionState.h b/services/surfaceflinger/CompositionEngine/include/compositionengine/LayerFECompositionState.h
index 5bb2497..32684fc 100644
--- a/services/surfaceflinger/CompositionEngine/include/compositionengine/LayerFECompositionState.h
+++ b/services/surfaceflinger/CompositionEngine/include/compositionengine/LayerFECompositionState.h
@@ -212,6 +212,8 @@
     float currentSdrHdrRatio = 1.f;
     float desiredSdrHdrRatio = 1.f;
 
+    bool isInternalDisplayOverlay = false;
+
     virtual ~LayerFECompositionState();
 
     // Debugging
diff --git a/services/surfaceflinger/CompositionEngine/include/compositionengine/Output.h b/services/surfaceflinger/CompositionEngine/include/compositionengine/Output.h
index 52ebd9e..a3d8639 100644
--- a/services/surfaceflinger/CompositionEngine/include/compositionengine/Output.h
+++ b/services/surfaceflinger/CompositionEngine/include/compositionengine/Output.h
@@ -153,6 +153,10 @@
         Region aboveOpaqueLayers;
         // The region of the output which should be considered dirty
         Region dirtyRegion;
+        // The region of the output which is covered by layers, excluding display overlays. This
+        // only has a value if there's something needing it, like when a TrustedPresentationListener
+        // is set
+        std::optional<Region> aboveCoveredLayersExcludingOverlays;
     };
 
     virtual ~Output();
diff --git a/services/surfaceflinger/CompositionEngine/include/compositionengine/impl/OutputLayerCompositionState.h b/services/surfaceflinger/CompositionEngine/include/compositionengine/impl/OutputLayerCompositionState.h
index b86782f..7b0af3a 100644
--- a/services/surfaceflinger/CompositionEngine/include/compositionengine/impl/OutputLayerCompositionState.h
+++ b/services/surfaceflinger/CompositionEngine/include/compositionengine/impl/OutputLayerCompositionState.h
@@ -63,9 +63,15 @@
     // The portion of the layer that is not obscured and is also opaque
     Region visibleNonTransparentRegion;
 
-    // The portion of the layer that is obscured by opaque layers on top
+    // The portion of the layer that is obscured by all layers on top. This includes transparent and
+    // opaque.
     Region coveredRegion;
 
+    // The portion of the layer that is obscured by all layers on top excluding display overlays.
+    // This only has a value if there's something needing it, like when a
+    // TrustedPresentationListener is set.
+    std::optional<Region> coveredRegionExcludingDisplayOverlays;
+
     // The visibleRegion transformed to output space
     Region outputSpaceVisibleRegion;
 
diff --git a/services/surfaceflinger/CompositionEngine/src/Output.cpp b/services/surfaceflinger/CompositionEngine/src/Output.cpp
index 403385e..7d94316 100644
--- a/services/surfaceflinger/CompositionEngine/src/Output.cpp
+++ b/services/surfaceflinger/CompositionEngine/src/Output.cpp
@@ -31,6 +31,7 @@
 #include <ftl/future.h>
 #include <gui/TraceUtils.h>
 
+#include <optional>
 #include <thread>
 
 #include "renderengine/ExternalTexture.h"
@@ -480,6 +481,9 @@
 
     // Process the layers to determine visibility and coverage
     compositionengine::Output::CoverageState coverage{layerFESet};
+    coverage.aboveCoveredLayersExcludingOverlays = refreshArgs.hasTrustedPresentationListener
+            ? std::make_optional<Region>()
+            : std::nullopt;
     collectVisibleLayers(refreshArgs, coverage);
 
     // Compute the resulting coverage for this output, and store it for later
@@ -534,6 +538,9 @@
         return;
     }
 
+    bool computeAboveCoveredExcludingOverlays =
+            coverage.aboveCoveredLayersExcludingOverlays && !layerFEState->isInternalDisplayOverlay;
+
     /*
      * opaqueRegion: area of a surface that is fully opaque.
      */
@@ -575,6 +582,11 @@
      */
     Region shadowRegion;
 
+    /**
+     * covered region above excluding internal display overlay layers
+     */
+    std::optional<Region> coveredRegionExcludingDisplayOverlays = std::nullopt;
+
     const ui::Transform& tr = layerFEState->geomLayerTransform;
 
     // Get the visible region
@@ -647,6 +659,12 @@
     // Update accumAboveCoveredLayers for next (lower) layer
     coverage.aboveCoveredLayers.orSelf(visibleRegion);
 
+    if (CC_UNLIKELY(computeAboveCoveredExcludingOverlays)) {
+        coveredRegionExcludingDisplayOverlays =
+                coverage.aboveCoveredLayersExcludingOverlays->intersect(visibleRegion);
+        coverage.aboveCoveredLayersExcludingOverlays->orSelf(visibleRegion);
+    }
+
     // subtract the opaque region covered by the layers above us
     visibleRegion.subtractSelf(coverage.aboveOpaqueLayers);
 
@@ -733,6 +751,10 @@
             ? outputState.transform.transform(
                       transparentRegion.intersect(outputState.layerStackSpace.getContent()))
             : Region();
+    if (CC_UNLIKELY(computeAboveCoveredExcludingOverlays)) {
+        outputLayerState.coveredRegionExcludingDisplayOverlays =
+                std::move(coveredRegionExcludingDisplayOverlays);
+    }
 }
 
 void Output::setReleasedLayers(const compositionengine::CompositionRefreshArgs&) {
diff --git a/services/surfaceflinger/Layer.cpp b/services/surfaceflinger/Layer.cpp
index 66c2fb6..0a27bdd 100644
--- a/services/surfaceflinger/Layer.cpp
+++ b/services/surfaceflinger/Layer.cpp
@@ -395,14 +395,22 @@
 
     if (!leaveState) {
         const auto outputLayer = findOutputLayerForDisplay(display);
-        if (outputLayer != nullptr && snapshot != nullptr) {
-            mLastComputedTrustedPresentationState =
-                    computeTrustedPresentationState(snapshot->geomLayerBounds,
-                                                    snapshot->sourceBounds(),
-                                                    outputLayer->getState().coveredRegion,
-                                                    snapshot->transformedBounds, snapshot->alpha,
-                                                    snapshot->geomLayerTransform,
-                                                    mTrustedPresentationThresholds);
+        if (outputLayer != nullptr) {
+            if (outputLayer->getState().coveredRegionExcludingDisplayOverlays) {
+                Region coveredRegion =
+                        *outputLayer->getState().coveredRegionExcludingDisplayOverlays;
+                mLastComputedTrustedPresentationState =
+                        computeTrustedPresentationState(snapshot->geomLayerBounds,
+                                                        snapshot->sourceBounds(), coveredRegion,
+                                                        snapshot->transformedBounds,
+                                                        snapshot->alpha,
+                                                        snapshot->geomLayerTransform,
+                                                        mTrustedPresentationThresholds);
+            } else {
+                ALOGE("CoveredRegionExcludingDisplayOverlays was not set for %s. Don't compute "
+                      "TrustedPresentationState",
+                      getDebugName());
+            }
         }
     }
     const bool newState = mLastComputedTrustedPresentationState;
@@ -459,10 +467,15 @@
     float boundsOverSourceH = bounds.getHeight() / (float)sourceBounds.getHeight();
     fractionRendered *= boundsOverSourceW * boundsOverSourceH;
 
-    Rect coveredBounds = coveredRegion.bounds();
-    fractionRendered *= (1 -
-                         ((coveredBounds.width() / (float)screenBounds.getWidth()) *
-                          coveredBounds.height() / (float)screenBounds.getHeight()));
+    Region tJunctionFreeRegion = Region::createTJunctionFreeRegion(coveredRegion);
+    // Compute the size of all the rects since they may be disconnected.
+    float coveredSize = 0;
+    for (auto rect = tJunctionFreeRegion.begin(); rect < tJunctionFreeRegion.end(); rect++) {
+        float size = rect->width() * rect->height();
+        coveredSize += size;
+    }
+
+    fractionRendered *= (1 - (coveredSize / (screenBounds.getWidth() * screenBounds.getHeight())));
 
     if (fractionRendered < thresholds.minFractionRendered) {
         return false;
@@ -3996,6 +4009,7 @@
     snapshot->bufferSize = getBufferSize(mDrawingState);
     snapshot->externalTexture = mBufferInfo.mBuffer;
     snapshot->hasReadyFrame = hasReadyFrame();
+    snapshot->isInternalDisplayOverlay = isInternalDisplayOverlay();
     preparePerFrameCompositionState();
 }
 
diff --git a/services/surfaceflinger/SurfaceFlinger.cpp b/services/surfaceflinger/SurfaceFlinger.cpp
index 68ab776..39b942c 100644
--- a/services/surfaceflinger/SurfaceFlinger.cpp
+++ b/services/surfaceflinger/SurfaceFlinger.cpp
@@ -2511,6 +2511,7 @@
     refreshArgs.previousPresentFence = mPreviousPresentFences[0].fenceTime;
     refreshArgs.scheduledFrameTime = mScheduler->getScheduledFrameTime();
     refreshArgs.expectedPresentTime = mExpectedPresentTime.ns();
+    refreshArgs.hasTrustedPresentationListener = mNumTrustedPresentationListeners > 0;
 
     // Store the present time just before calling to the composition engine so we could notify
     // the scheduler.
diff --git a/services/surfaceflinger/tests/LayerTrustedPresentationListener_test.cpp b/services/surfaceflinger/tests/LayerTrustedPresentationListener_test.cpp
index a843fd1..2be8d3b 100644
--- a/services/surfaceflinger/tests/LayerTrustedPresentationListener_test.cpp
+++ b/services/surfaceflinger/tests/LayerTrustedPresentationListener_test.cpp
@@ -238,4 +238,50 @@
     EXPECT_TRUE(pch.awaitCallback());
 }
 
+TEST_F(LayerTrustedPresentationListenerTest, obscuring_with_display_overlay) {
+    auto otherLayer = makeLayer();
+    t.show(otherLayer)
+            .setPosition(otherLayer, 100, 100)
+            .setLayer(otherLayer, INT32_MAX)
+            .setFlags(otherLayer, layer_state_t::eLayerSkipScreenshot,
+                      layer_state_t::eLayerSkipScreenshot)
+            .setLayer(mainLayer, INT32_MAX - 1)
+            .show(mainLayer)
+            .setPosition(mainLayer, 100, 100)
+            .setTrustedPresentationCallback(
+                    mainLayer,
+                    [&](void* context, bool state) {
+                        PresentationCallbackHelper* helper = (PresentationCallbackHelper*)context;
+                        helper->callbackArrived(state);
+                    },
+                    thresholds, &pch, mCallback)
+            .apply();
+    EXPECT_TRUE(pch.awaitCallback());
+}
+
+TEST_F(LayerTrustedPresentationListenerTest, obscuring_with_non_overlapping_bounds) {
+    thresholds.minFractionRendered = 0.5;
+    auto otherLayer1 = makeLayer();
+    auto otherLayer2 = makeLayer();
+    t.show(otherLayer1)
+            .show(otherLayer2)
+            .setPosition(otherLayer1, 100, 25)
+            .setLayer(otherLayer1, INT32_MAX)
+            .setPosition(otherLayer2, 100, 175)
+            .setLayer(otherLayer2, INT32_MAX)
+            .setLayer(mainLayer, INT32_MAX - 1)
+            .show(mainLayer)
+            .setPosition(mainLayer, 100, 100)
+            .setTrustedPresentationCallback(
+                    mainLayer,
+                    [&](void* context, bool state) {
+                        PresentationCallbackHelper* helper = (PresentationCallbackHelper*)context;
+                        helper->callbackArrived(state);
+                    },
+                    thresholds, &pch, mCallback)
+            .apply();
+
+    EXPECT_TRUE(pch.awaitCallback());
+}
+
 } // namespace android