diff --git a/services/surfaceflinger/CompositionEngine/src/Output.cpp b/services/surfaceflinger/CompositionEngine/src/Output.cpp
index aef55d4..4e67a63 100644
--- a/services/surfaceflinger/CompositionEngine/src/Output.cpp
+++ b/services/surfaceflinger/CompositionEngine/src/Output.cpp
@@ -684,8 +684,10 @@
             visibleNonShadowRegion.intersect(outputState.layerStackSpace.getContent()));
     outputLayerState.shadowRegion = shadowRegion;
     outputLayerState.outputSpaceBlockingRegionHint =
-            layerFEState->compositionType == Composition::DISPLAY_DECORATION ? transparentRegion
-                                                                             : Region();
+            layerFEState->compositionType == Composition::DISPLAY_DECORATION
+            ? outputState.transform.transform(
+                      transparentRegion.intersect(outputState.layerStackSpace.getContent()))
+            : Region();
 }
 
 void Output::setReleasedLayers(const compositionengine::CompositionRefreshArgs&) {
diff --git a/services/surfaceflinger/CompositionEngine/src/OutputLayerCompositionState.cpp b/services/surfaceflinger/CompositionEngine/src/OutputLayerCompositionState.cpp
index 6749427..da1f7e4 100644
--- a/services/surfaceflinger/CompositionEngine/src/OutputLayerCompositionState.cpp
+++ b/services/surfaceflinger/CompositionEngine/src/OutputLayerCompositionState.cpp
@@ -61,6 +61,9 @@
     dumpVal(out, "shadowRegion", shadowRegion);
 
     out.append("      ");
+    dumpVal(out, "outputSpaceBlockingRegionHint", outputSpaceBlockingRegionHint);
+
+    out.append("      ");
     dumpVal(out, "forceClientComposition", forceClientComposition);
     dumpVal(out, "clearClientTarget", clearClientTarget);
     dumpVal(out, "displayFrame", displayFrame);
diff --git a/services/surfaceflinger/CompositionEngine/tests/OutputTest.cpp b/services/surfaceflinger/CompositionEngine/tests/OutputTest.cpp
index 54eb8f8..66a9ef7 100644
--- a/services/surfaceflinger/CompositionEngine/tests/OutputTest.cpp
+++ b/services/surfaceflinger/CompositionEngine/tests/OutputTest.cpp
@@ -1310,6 +1310,7 @@
     static const Region kLowerHalfBoundsNoRotation;
     static const Region kFullBounds90Rotation;
     static const Region kTransparentRegionHint;
+    static const Region kTransparentRegionHint90Rotation;
 
     StrictMock<OutputPartialMock> mOutput;
     LayerFESet mGeomSnapshots;
@@ -1328,7 +1329,9 @@
 const Region OutputEnsureOutputLayerIfVisibleTest::kFullBounds90Rotation =
         Region(Rect(0, 0, 200, 100));
 const Region OutputEnsureOutputLayerIfVisibleTest::kTransparentRegionHint =
-        Region(Rect(0, 0, 100, 100));
+        Region(Rect(25, 20, 50, 75));
+const Region OutputEnsureOutputLayerIfVisibleTest::kTransparentRegionHint90Rotation =
+        Region(Rect(125, 25, 180, 50));
 
 TEST_F(OutputEnsureOutputLayerIfVisibleTest, performsGeomLatchBeforeCheckingIfLayerIncluded) {
     EXPECT_CALL(mOutput, includesLayer(sp<LayerFE>(mLayer.layerFE))).WillOnce(Return(false));
@@ -1779,6 +1782,24 @@
     EXPECT_THAT(mLayer.outputLayerState.outputSpaceBlockingRegionHint, RegionEq(Region()));
 }
 
+TEST_F(OutputEnsureOutputLayerIfVisibleTest, blockingRegionIsInOutputSpace) {
+    mLayer.layerFEState.isOpaque = false;
+    mLayer.layerFEState.contentDirty = true;
+    mLayer.layerFEState.compositionType =
+            aidl::android::hardware::graphics::composer3::Composition::DISPLAY_DECORATION;
+
+    mOutput.mState.layerStackSpace.setContent(Rect(0, 0, 300, 200));
+    mOutput.mState.transform = ui::Transform(TR_ROT_90, 200, 300);
+
+    EXPECT_CALL(mOutput, getOutputLayerCount()).WillOnce(Return(0u));
+    EXPECT_CALL(mOutput, ensureOutputLayer(Eq(std::nullopt), Eq(mLayer.layerFE)))
+            .WillOnce(Return(&mLayer.outputLayer));
+    ensureOutputLayerIfVisible();
+
+    EXPECT_THAT(mLayer.outputLayerState.outputSpaceBlockingRegionHint,
+                RegionEq(kTransparentRegionHint90Rotation));
+}
+
 /*
  * Output::present()
  */