diff --git a/services/surfaceflinger/CompositionEngine/src/OutputLayer.cpp b/services/surfaceflinger/CompositionEngine/src/OutputLayer.cpp
index 5ce72b0..0afcc97 100644
--- a/services/surfaceflinger/CompositionEngine/src/OutputLayer.cpp
+++ b/services/surfaceflinger/CompositionEngine/src/OutputLayer.cpp
@@ -261,7 +261,7 @@
      * (NOTE: the matrices are multiplied in reverse order)
      */
     const ui::Transform& layerTransform = layerState.geomLayerTransform;
-    const ui::Transform displayTransform{outputState.orientation};
+    const ui::Transform displayTransform{outputState.transform};
     const ui::Transform bufferTransform{layerState.geomBufferTransform};
     ui::Transform transform(displayTransform * layerTransform * bufferTransform);
 
diff --git a/services/surfaceflinger/CompositionEngine/tests/OutputLayerTest.cpp b/services/surfaceflinger/CompositionEngine/tests/OutputLayerTest.cpp
index 2060c5a..c9d8b5b 100644
--- a/services/surfaceflinger/CompositionEngine/tests/OutputLayerTest.cpp
+++ b/services/surfaceflinger/CompositionEngine/tests/OutputLayerTest.cpp
@@ -236,6 +236,7 @@
         mLayerState.frontEnd.geomLayerTransform.set(entry.layer, 1920, 1080);
         mLayerState.frontEnd.geomBufferTransform = entry.buffer;
         mOutputState.orientation = entry.display;
+        mOutputState.transform = ui::Transform{entry.display};
 
         auto actual = mOutputLayer.calculateOutputRelativeBufferTransform();
         EXPECT_EQ(entry.expected, actual) << "entry " << i;
@@ -310,5 +311,20 @@
     mOutputLayer.writeStateToHWC(true);
 }
 
+TEST_F(OutputLayerTest, displayInstallOrientationBufferTransformSetTo90) {
+    mLayerState.frontEnd.geomBufferUsesDisplayInverseTransform = false;
+    mLayerState.frontEnd.geomLayerTransform = ui::Transform{TR_IDENT};
+    // This test simulates a scenario where displayInstallOrientation is set to
+    // ROT_90. This only has an effect on the transform; orientation stays 0 (see
+    // DisplayDevice::setProjection).
+    mOutputState.orientation = TR_IDENT;
+    mOutputState.transform = ui::Transform{TR_ROT_90};
+    // Buffers are pre-rotated based on the transform hint (ROT_90); their
+    // geomBufferTransform is set to the inverse transform.
+    mLayerState.frontEnd.geomBufferTransform = TR_ROT_270;
+
+    EXPECT_EQ(TR_IDENT, mOutputLayer.calculateOutputRelativeBufferTransform());
+}
+
 } // namespace
 } // namespace android::compositionengine