diff --git a/services/inputflinger/dispatcher/InputDispatcher.cpp b/services/inputflinger/dispatcher/InputDispatcher.cpp
index 73bbed6..56b0c8f 100644
--- a/services/inputflinger/dispatcher/InputDispatcher.cpp
+++ b/services/inputflinger/dispatcher/InputDispatcher.cpp
@@ -399,7 +399,8 @@
                                                    const InputTarget& inputTarget,
                                                    std::shared_ptr<const EventEntry> eventEntry,
                                                    ftl::Flags<InputTarget::Flags> inputTargetFlags,
-                                                   int64_t vsyncId) {
+                                                   int64_t vsyncId,
+                                                   trace::InputTracerInterface* tracer) {
     const bool zeroCoords = inputTargetFlags.test(InputTarget::Flags::ZERO_COORDS);
     const sp<WindowInfoHandle> win = inputTarget.windowHandle;
     const std::optional<int32_t> windowId =
@@ -462,6 +463,10 @@
                                           motionEntry.xCursorPosition, motionEntry.yCursorPosition,
                                           motionEntry.downTime, motionEntry.pointerProperties,
                                           pointerCoords);
+    if (tracer) {
+        combinedMotionEntry->traceTracker =
+                tracer->traceDerivedEvent(*combinedMotionEntry, *motionEntry.traceTracker);
+    }
 
     std::unique_ptr<DispatchEntry> dispatchEntry =
             std::make_unique<DispatchEntry>(std::move(combinedMotionEntry), inputTargetFlags,
@@ -3386,7 +3391,7 @@
     // Enqueue a new dispatch entry onto the outbound queue for this connection.
     std::unique_ptr<DispatchEntry> dispatchEntry =
             createDispatchEntry(mIdGenerator, inputTarget, eventEntry, inputTarget.flags,
-                                mWindowInfosVsyncId);
+                                mWindowInfosVsyncId, mTracer.get());
 
     // Use the eventEntry from dispatchEntry since the entry may have changed and can now be a
     // different EventEntry than what was passed in.
@@ -3469,21 +3474,31 @@
                             usingCoords = pointerInfo->second;
                         }
                     }
-                    // Generate a new MotionEntry with a new eventId using the resolved action and
-                    // flags.
-                    resolvedMotion = std::make_shared<
-                            MotionEntry>(mIdGenerator.nextId(), motionEntry.injectionState,
-                                         motionEntry.eventTime, motionEntry.deviceId,
-                                         motionEntry.source, motionEntry.displayId,
-                                         motionEntry.policyFlags, resolvedAction,
-                                         motionEntry.actionButton, resolvedFlags,
-                                         motionEntry.metaState, motionEntry.buttonState,
-                                         motionEntry.classification, motionEntry.edgeFlags,
-                                         motionEntry.xPrecision, motionEntry.yPrecision,
-                                         motionEntry.xCursorPosition, motionEntry.yCursorPosition,
-                                         motionEntry.downTime,
-                                         usingProperties.value_or(motionEntry.pointerProperties),
-                                         usingCoords.value_or(motionEntry.pointerCoords));
+                    {
+                        // Generate a new MotionEntry with a new eventId using the resolved action
+                        // and flags, and set it as the resolved entry.
+                        auto newEntry = std::make_shared<
+                                MotionEntry>(mIdGenerator.nextId(), motionEntry.injectionState,
+                                             motionEntry.eventTime, motionEntry.deviceId,
+                                             motionEntry.source, motionEntry.displayId,
+                                             motionEntry.policyFlags, resolvedAction,
+                                             motionEntry.actionButton, resolvedFlags,
+                                             motionEntry.metaState, motionEntry.buttonState,
+                                             motionEntry.classification, motionEntry.edgeFlags,
+                                             motionEntry.xPrecision, motionEntry.yPrecision,
+                                             motionEntry.xCursorPosition,
+                                             motionEntry.yCursorPosition, motionEntry.downTime,
+                                             usingProperties.value_or(
+                                                     motionEntry.pointerProperties),
+                                             usingCoords.value_or(motionEntry.pointerCoords));
+                        if (mTracer) {
+                            ensureEventTraced(motionEntry);
+                            newEntry->traceTracker =
+                                    mTracer->traceDerivedEvent(*newEntry,
+                                                               *motionEntry.traceTracker);
+                        }
+                        resolvedMotion = newEntry;
+                    }
                     if (ATRACE_ENABLED()) {
                         std::string message = StringPrintf("Transmute MotionEvent(id=0x%" PRIx32
                                                            ") to MotionEvent(id=0x%" PRIx32 ").",
@@ -3508,7 +3523,8 @@
                           << cancelEvent->getDescription();
                 std::unique_ptr<DispatchEntry> cancelDispatchEntry =
                         createDispatchEntry(mIdGenerator, inputTarget, std::move(cancelEvent),
-                                            ftl::Flags<InputTarget::Flags>(), mWindowInfosVsyncId);
+                                            ftl::Flags<InputTarget::Flags>(), mWindowInfosVsyncId,
+                                            mTracer.get());
 
                 // Send these cancel events to the queue before sending the event from the new
                 // device.
@@ -4316,6 +4332,10 @@
                                           originalMotionEntry.xCursorPosition,
                                           originalMotionEntry.yCursorPosition, splitDownTime,
                                           pointerProperties, pointerCoords);
+    if (mTracer) {
+        splitMotionEntry->traceTracker =
+                mTracer->traceDerivedEvent(*splitMotionEntry, *originalMotionEntry.traceTracker);
+    }
 
     return splitMotionEntry;
 }
@@ -6614,6 +6634,10 @@
                                                *fallbackKeyCode, event.getScanCode(),
                                                event.getMetaState(), event.getRepeatCount(),
                                                event.getDownTime());
+            if (mTracer) {
+                newEntry->traceTracker =
+                        mTracer->traceDerivedEvent(*newEntry, *keyEntry.traceTracker);
+            }
             if (DEBUG_OUTBOUND_EVENT_DETAILS) {
                 ALOGD("Unhandled key event: Dispatching fallback key.  "
                       "originalKeyCode=%d, fallbackKeyCode=%d, fallbackMetaState=%08x",
diff --git a/services/inputflinger/dispatcher/trace/InputTracer.cpp b/services/inputflinger/dispatcher/trace/InputTracer.cpp
index 10f6b0f..3b5a096 100644
--- a/services/inputflinger/dispatcher/trace/InputTracer.cpp
+++ b/services/inputflinger/dispatcher/trace/InputTracer.cpp
@@ -59,6 +59,12 @@
                           e.downTime,  e.flags,     e.repeatCount};
 }
 
+void writeEventToBackend(const TracedEvent& event, InputTracingBackendInterface& backend) {
+    std::visit(Visitor{[&](const TracedMotionEvent& e) { backend.traceMotionEvent(e); },
+                       [&](const TracedKeyEvent& e) { backend.traceKeyEvent(e); }},
+               event);
+}
+
 } // namespace
 
 // --- InputTracer ---
@@ -67,41 +73,74 @@
       : mBackend(std::move(backend)) {}
 
 std::unique_ptr<EventTrackerInterface> InputTracer::traceInboundEvent(const EventEntry& entry) {
-    TracedEvent traced;
+    // This is a newly traced inbound event. Create a new state to track it and its derived events.
+    auto eventState = std::make_shared<EventState>(*this);
 
     if (entry.type == EventEntry::Type::MOTION) {
         const auto& motion = static_cast<const MotionEntry&>(entry);
-        traced = createTracedEvent(motion);
+        eventState->events.emplace_back(createTracedEvent(motion));
     } else if (entry.type == EventEntry::Type::KEY) {
         const auto& key = static_cast<const KeyEntry&>(entry);
-        traced = createTracedEvent(key);
+        eventState->events.emplace_back(createTracedEvent(key));
     } else {
         LOG(FATAL) << "Cannot trace EventEntry of type: " << ftl::enum_string(entry.type);
     }
 
-    return std::make_unique<EventTrackerImpl>(*this, std::move(traced));
+    return std::make_unique<EventTrackerImpl>(std::move(eventState), /*isDerived=*/false);
 }
 
 void InputTracer::dispatchToTargetHint(const EventTrackerInterface& cookie,
                                        const InputTarget& target) {
+    if (isDerivedCookie(cookie)) {
+        LOG(FATAL) << "Event target cannot be updated from a derived cookie.";
+    }
     auto& eventState = getState(cookie);
-    if (eventState.isEventProcessingComplete) {
-        LOG(FATAL) << "dispatchToTargetHint() should not be called after eventProcessingComplete()";
+    if (eventState->isEventProcessingComplete) {
+        // TODO(b/210460522): Disallow adding new targets after eventProcessingComplete() is called.
+        return;
     }
     // TODO(b/210460522): Determine if the event is sensitive based on the target.
 }
 
 void InputTracer::eventProcessingComplete(const EventTrackerInterface& cookie) {
+    if (isDerivedCookie(cookie)) {
+        LOG(FATAL) << "Event processing cannot be set from a derived cookie.";
+    }
     auto& eventState = getState(cookie);
-    if (eventState.isEventProcessingComplete) {
+    if (eventState->isEventProcessingComplete) {
         LOG(FATAL) << "Traced event was already logged. "
                       "eventProcessingComplete() was likely called more than once.";
     }
 
-    std::visit(Visitor{[&](const TracedMotionEvent& e) { mBackend->traceMotionEvent(e); },
-                       [&](const TracedKeyEvent& e) { mBackend->traceKeyEvent(e); }},
-               eventState.event);
-    eventState.isEventProcessingComplete = true;
+    for (const auto& event : eventState->events) {
+        writeEventToBackend(event, *mBackend);
+    }
+    eventState->isEventProcessingComplete = true;
+}
+
+std::unique_ptr<EventTrackerInterface> InputTracer::traceDerivedEvent(
+        const EventEntry& entry, const EventTrackerInterface& originalEventCookie) {
+    // This is an event derived from an already-established event. Use the same state to track
+    // this event too.
+    auto eventState = getState(originalEventCookie);
+
+    if (entry.type == EventEntry::Type::MOTION) {
+        const auto& motion = static_cast<const MotionEntry&>(entry);
+        eventState->events.emplace_back(createTracedEvent(motion));
+    } else if (entry.type == EventEntry::Type::KEY) {
+        const auto& key = static_cast<const KeyEntry&>(entry);
+        eventState->events.emplace_back(createTracedEvent(key));
+    } else {
+        LOG(FATAL) << "Cannot trace EventEntry of type: " << ftl::enum_string(entry.type);
+    }
+
+    if (eventState->isEventProcessingComplete) {
+        // It is possible for a derived event to be dispatched some time after the original event
+        // is dispatched, such as in the case of key fallback events. To account for these cases,
+        // derived events can be traced after the processing is complete for the original event.
+        writeEventToBackend(eventState->events.back(), *mBackend);
+    }
+    return std::make_unique<EventTrackerImpl>(std::move(eventState), /*isDerived=*/true);
 }
 
 void InputTracer::traceEventDispatch(const DispatchEntry& dispatchEntry,
@@ -126,9 +165,7 @@
 
     if (!cookie) {
         // This event was not tracked as an inbound event, so trace it now.
-        std::visit(Visitor{[&](const TracedMotionEvent& e) { mBackend->traceMotionEvent(e); },
-                           [&](const TracedKeyEvent& e) { mBackend->traceKeyEvent(e); }},
-                   traced);
+        writeEventToBackend(traced, *mBackend);
     }
 
     // The vsyncId only has meaning if the event is targeting a window.
@@ -141,27 +178,29 @@
                                    /*hmac=*/{}, resolvedKeyRepeatCount});
 }
 
-InputTracer::EventState& InputTracer::getState(const EventTrackerInterface& cookie) {
+std::shared_ptr<InputTracer::EventState>& InputTracer::getState(
+        const EventTrackerInterface& cookie) {
     return static_cast<const EventTrackerImpl&>(cookie).mState;
 }
 
-// --- InputTracer::EventTrackerImpl ---
+bool InputTracer::isDerivedCookie(const EventTrackerInterface& cookie) {
+    return static_cast<const EventTrackerImpl&>(cookie).mIsDerived;
+}
 
-InputTracer::EventTrackerImpl::EventTrackerImpl(InputTracer& tracer, TracedEvent&& event)
-      : mTracer(tracer), mState(event) {}
+// --- InputTracer::EventState ---
 
-InputTracer::EventTrackerImpl::~EventTrackerImpl() {
-    if (mState.isEventProcessingComplete) {
+InputTracer::EventState::~EventState() {
+    if (isEventProcessingComplete) {
         // This event has already been written to the trace as expected.
         return;
     }
     // The event processing was never marked as complete, so do it now.
     // TODO(b/210460522): Determine why/where the event is being destroyed before
     //   eventProcessingComplete() is called.
-    std::visit(Visitor{[&](const TracedMotionEvent& e) { mTracer.mBackend->traceMotionEvent(e); },
-                       [&](const TracedKeyEvent& e) { mTracer.mBackend->traceKeyEvent(e); }},
-               mState.event);
-    mState.isEventProcessingComplete = true;
+    for (const auto& event : events) {
+        writeEventToBackend(event, *tracer.mBackend);
+    }
+    isEventProcessingComplete = true;
 }
 
 } // namespace android::inputdispatcher::trace::impl
diff --git a/services/inputflinger/dispatcher/trace/InputTracer.h b/services/inputflinger/dispatcher/trace/InputTracer.h
index 1acac6d..ccff30e 100644
--- a/services/inputflinger/dispatcher/trace/InputTracer.h
+++ b/services/inputflinger/dispatcher/trace/InputTracer.h
@@ -44,36 +44,43 @@
     std::unique_ptr<EventTrackerInterface> traceInboundEvent(const EventEntry&) override;
     void dispatchToTargetHint(const EventTrackerInterface&, const InputTarget&) override;
     void eventProcessingComplete(const EventTrackerInterface&) override;
+    std::unique_ptr<EventTrackerInterface> traceDerivedEvent(const EventEntry&,
+                                                             const EventTrackerInterface&) override;
     void traceEventDispatch(const DispatchEntry&, const EventTrackerInterface*) override;
 
 private:
     std::unique_ptr<InputTracingBackendInterface> mBackend;
 
-    // The state of a tracked event.
+    // The state of a tracked event, shared across all events derived from the original event.
     struct EventState {
-        explicit inline EventState(TracedEvent event) : event(std::move(event)){};
+        explicit inline EventState(InputTracer& tracer) : tracer(tracer){};
+        ~EventState();
 
-        const TracedEvent event;
+        InputTracer& tracer;
+        std::vector<const TracedEvent> events;
         bool isEventProcessingComplete{false};
         // TODO(b/210460522): Add additional args for tracking event sensitivity and
         //  dispatch target UIDs.
     };
 
     // Get the event state associated with a tracking cookie.
-    EventState& getState(const EventTrackerInterface&);
+    std::shared_ptr<EventState>& getState(const EventTrackerInterface&);
+    bool isDerivedCookie(const EventTrackerInterface&);
 
     // Implementation of the event tracker cookie. The cookie holds the event state directly for
     // convenience to avoid the overhead of tracking the state separately in InputTracer.
     class EventTrackerImpl : public EventTrackerInterface {
     public:
-        explicit EventTrackerImpl(InputTracer&, TracedEvent&& entry);
-        virtual ~EventTrackerImpl() override;
+        inline EventTrackerImpl(const std::shared_ptr<EventState>& state, bool isDerivedEvent)
+              : mState(state), mIsDerived(isDerivedEvent) {}
+        EventTrackerImpl(const EventTrackerImpl&) = default;
 
     private:
-        InputTracer& mTracer;
-        mutable EventState mState;
+        mutable std::shared_ptr<EventState> mState;
+        const bool mIsDerived;
 
-        friend EventState& InputTracer::getState(const EventTrackerInterface&);
+        friend std::shared_ptr<EventState>& InputTracer::getState(const EventTrackerInterface&);
+        friend bool InputTracer::isDerivedCookie(const EventTrackerInterface&);
     };
 };
 
diff --git a/services/inputflinger/dispatcher/trace/InputTracerInterface.h b/services/inputflinger/dispatcher/trace/InputTracerInterface.h
index c6cd7de..daf716f 100644
--- a/services/inputflinger/dispatcher/trace/InputTracerInterface.h
+++ b/services/inputflinger/dispatcher/trace/InputTracerInterface.h
@@ -52,7 +52,6 @@
      * to track the event's lifecycle inside InputDispatcher.
      */
     virtual std::unique_ptr<EventTrackerInterface> traceInboundEvent(const EventEntry&) = 0;
-
     /**
      * Notify the tracer that the traced event will be sent to the given InputTarget.
      * The tracer may change how the event is logged depending on the target. For example,
@@ -76,6 +75,19 @@
     virtual void eventProcessingComplete(const EventTrackerInterface&) = 0;
 
     /**
+     * Trace an input event that is derived from another event. This is used in cases where an event
+     * is modified from the original, such as when a touch is split across multiple windows, or
+     * when a HOVER_MOVE event is modified to be a HOVER_EXIT, etc. The original event's tracker
+     * must be provided, and a new EventTracker is returned that should be used to track the event's
+     * lifecycle.
+     *
+     * NOTE: The derived tracker cannot be used to change the targets of the original event, meaning
+     * it cannot be used with {@link #dispatchToTargetHint} or {@link eventProcessingComplete}.
+     */
+    virtual std::unique_ptr<EventTrackerInterface> traceDerivedEvent(
+            const EventEntry&, const EventTrackerInterface& originalEventTracker) = 0;
+
+    /**
      * Trace an input event being successfully dispatched to a window. The dispatched event may
      * be a previously traced inbound event, or it may be a synthesized event that has not been
      * previously traced. For inbound events that were previously traced, the EventTracker cookie