diff --git a/services/inputflinger/tests/InputDispatcher_test.cpp b/services/inputflinger/tests/InputDispatcher_test.cpp
index c2f174f..ddf94bf 100644
--- a/services/inputflinger/tests/InputDispatcher_test.cpp
+++ b/services/inputflinger/tests/InputDispatcher_test.cpp
@@ -1913,6 +1913,99 @@
     window->consumeMotionEvent(WithMotionAction(ACTION_SCROLL));
 }
 
+/**
+ * Two windows: a trusted overlay and a regular window underneath. Both windows are visible.
+ * Mouse is hovered, and the hover event should only go to the overlay.
+ * However, next, the touchable region of the trusted overlay shrinks. The mouse position hasn't
+ * changed, but the cursor would now end up hovering above the regular window underneatch.
+ * If the mouse is now clicked, this would generate an ACTION_DOWN event, which would go to the
+ * regular window. However, the trusted overlay is also watching for outside touch.
+ * The trusted overlay should get two events:
+ * 1) The ACTION_OUTSIDE event, since the click is now not inside its touchable region
+ * 2) The HOVER_EXIT event, since the mouse pointer is no longer hovering inside this window
+ *
+ * This test reproduces a crash where there is an overlap between dispatch modes for the trusted
+ * overlay touch target, since the event is causing both an ACTION_OUTSIDE, and as a HOVER_EXIT.
+ */
+TEST_F(InputDispatcherTest, MouseClickUnderShrinkingTrustedOverlay) {
+    std::shared_ptr<FakeApplicationHandle> app = std::make_shared<FakeApplicationHandle>();
+    sp<FakeWindowHandle> overlay = sp<FakeWindowHandle>::make(app, mDispatcher, "Trusted overlay",
+                                                              ui::LogicalDisplayId::DEFAULT);
+    overlay->setTrustedOverlay(true);
+    overlay->setWatchOutsideTouch(true);
+    overlay->setFrame(Rect(0, 0, 200, 200));
+
+    sp<FakeWindowHandle> window = sp<FakeWindowHandle>::make(app, mDispatcher, "Regular window",
+                                                             ui::LogicalDisplayId::DEFAULT);
+    window->setFrame(Rect(0, 0, 200, 200));
+
+    mDispatcher->onWindowInfosChanged({{*overlay->getInfo(), *window->getInfo()}, {}, 0, 0});
+    // Hover the mouse into the overlay
+    mDispatcher->notifyMotion(MotionArgsBuilder(ACTION_HOVER_MOVE, AINPUT_SOURCE_MOUSE)
+                                      .pointer(PointerBuilder(0, ToolType::MOUSE).x(100).y(110))
+                                      .build());
+    overlay->consumeMotionEvent(WithMotionAction(ACTION_HOVER_ENTER));
+
+    // Now, shrink the touchable region of the overlay! This will cause the cursor to suddenly have
+    // the regular window as the touch target
+    overlay->setTouchableRegion(Region({0, 0, 0, 0}));
+    mDispatcher->onWindowInfosChanged({{*overlay->getInfo(), *window->getInfo()}, {}, 0, 0});
+
+    // Now we can click with the mouse. The click should go into the regular window
+    mDispatcher->notifyMotion(MotionArgsBuilder(ACTION_DOWN, AINPUT_SOURCE_MOUSE)
+                                      .pointer(PointerBuilder(0, ToolType::MOUSE).x(100).y(110))
+                                      .build());
+    overlay->consumeMotionEvent(WithMotionAction(ACTION_HOVER_EXIT));
+    overlay->consumeMotionEvent(WithMotionAction(ACTION_OUTSIDE));
+    window->consumeMotionEvent(WithMotionAction(ACTION_DOWN));
+}
+
+/**
+ * Similar to above, but also has a spy on top that also catches the HOVER
+ * events. Also, instead of ACTION_DOWN, we are continuing to send the hovering
+ * stream to ensure that the spy receives hover events correctly.
+ */
+TEST_F(InputDispatcherTest, MouseClickUnderShrinkingTrustedOverlayWithSpy) {
+    std::shared_ptr<FakeApplicationHandle> app = std::make_shared<FakeApplicationHandle>();
+    sp<FakeWindowHandle> spyWindow =
+            sp<FakeWindowHandle>::make(app, mDispatcher, "Spy", ui::LogicalDisplayId::DEFAULT);
+    spyWindow->setFrame(Rect(0, 0, 200, 200));
+    spyWindow->setTrustedOverlay(true);
+    spyWindow->setSpy(true);
+    sp<FakeWindowHandle> overlay = sp<FakeWindowHandle>::make(app, mDispatcher, "Trusted overlay",
+                                                              ui::LogicalDisplayId::DEFAULT);
+    overlay->setTrustedOverlay(true);
+    overlay->setWatchOutsideTouch(true);
+    overlay->setFrame(Rect(0, 0, 200, 200));
+
+    sp<FakeWindowHandle> window = sp<FakeWindowHandle>::make(app, mDispatcher, "Regular window",
+                                                             ui::LogicalDisplayId::DEFAULT);
+    window->setFrame(Rect(0, 0, 200, 200));
+
+    mDispatcher->onWindowInfosChanged(
+            {{*spyWindow->getInfo(), *overlay->getInfo(), *window->getInfo()}, {}, 0, 0});
+    // Hover the mouse into the overlay
+    mDispatcher->notifyMotion(MotionArgsBuilder(ACTION_HOVER_MOVE, AINPUT_SOURCE_MOUSE)
+                                      .pointer(PointerBuilder(0, ToolType::MOUSE).x(100).y(110))
+                                      .build());
+    spyWindow->consumeMotionEvent(WithMotionAction(ACTION_HOVER_ENTER));
+    overlay->consumeMotionEvent(WithMotionAction(ACTION_HOVER_ENTER));
+
+    // Now, shrink the touchable region of the overlay! This will cause the cursor to suddenly have
+    // the regular window as the touch target
+    overlay->setTouchableRegion(Region({0, 0, 0, 0}));
+    mDispatcher->onWindowInfosChanged(
+            {{*spyWindow->getInfo(), *overlay->getInfo(), *window->getInfo()}, {}, 0, 0});
+
+    // Now we can click with the mouse. The click should go into the regular window
+    mDispatcher->notifyMotion(MotionArgsBuilder(ACTION_HOVER_MOVE, AINPUT_SOURCE_MOUSE)
+                                      .pointer(PointerBuilder(0, ToolType::MOUSE).x(110).y(110))
+                                      .build());
+    spyWindow->consumeMotionEvent(WithMotionAction(ACTION_HOVER_MOVE));
+    overlay->consumeMotionEvent(WithMotionAction(ACTION_HOVER_EXIT));
+    window->consumeMotionEvent(WithMotionAction(ACTION_HOVER_ENTER));
+}
+
 using InputDispatcherMultiDeviceTest = InputDispatcherTest;
 
 /**