diff --git a/services/inputflinger/tests/InputDispatcher_test.cpp b/services/inputflinger/tests/InputDispatcher_test.cpp
index 5cdcfaf..32f9b69 100644
--- a/services/inputflinger/tests/InputDispatcher_test.cpp
+++ b/services/inputflinger/tests/InputDispatcher_test.cpp
@@ -766,6 +766,9 @@
             case AINPUT_EVENT_TYPE_CAPTURE: {
                 FAIL() << "Use 'consumeCaptureEvent' for CAPTURE events";
             }
+            case AINPUT_EVENT_TYPE_DRAG: {
+                FAIL() << "Use 'consumeDragEvent' for DRAG events";
+            }
             default: {
                 FAIL() << mName.c_str() << ": invalid event type: " << expectedEventType;
             }
@@ -803,6 +806,23 @@
         EXPECT_EQ(hasCapture, captureEvent.getPointerCaptureEnabled());
     }
 
+    void consumeDragEvent(bool isExiting, float x, float y) {
+        const InputEvent* event = consume();
+        ASSERT_NE(nullptr, event) << mName.c_str()
+                                  << ": consumer should have returned non-NULL event.";
+        ASSERT_EQ(AINPUT_EVENT_TYPE_DRAG, event->getType())
+                << "Got " << inputEventTypeToString(event->getType())
+                << " event instead of DRAG event";
+
+        EXPECT_EQ(ADISPLAY_ID_NONE, event->getDisplayId())
+                << mName.c_str() << ": event displayId should always be NONE.";
+
+        const auto& dragEvent = static_cast<const DragEvent&>(*event);
+        EXPECT_EQ(isExiting, dragEvent.isExiting());
+        EXPECT_EQ(x, dragEvent.getX());
+        EXPECT_EQ(y, dragEvent.getY());
+    }
+
     void assertNoEvents() {
         InputEvent* event = consume();
         if (event == nullptr) {
@@ -905,7 +925,7 @@
         mInfo.frameTop = frame.top;
         mInfo.frameRight = frame.right;
         mInfo.frameBottom = frame.bottom;
-        mInfo.transform.set(frame.left, frame.top);
+        mInfo.transform.set(-frame.left, -frame.top);
         mInfo.touchableRegion.clear();
         mInfo.addTouchableRegion(frame);
     }
@@ -1003,6 +1023,10 @@
                                      expectedFlags);
     }
 
+    void consumeDragEvent(bool isExiting, float x, float y) {
+        mInputReceiver->consumeDragEvent(isExiting, x, y);
+    }
+
     std::optional<uint32_t> receiveEvent(InputEvent** outEvent = nullptr) {
         if (mInputReceiver == nullptr) {
             ADD_FAILURE() << "Invalid receive event on window with no receiver";
@@ -4682,4 +4706,87 @@
     mTouchWindow->consumeAnyMotionDown();
 }
 
+class InputDispatcherDragTests : public InputDispatcherTest {
+protected:
+    std::shared_ptr<FakeApplicationHandle> mApp;
+    sp<FakeWindowHandle> mWindow;
+    sp<FakeWindowHandle> mSecondWindow;
+    sp<FakeWindowHandle> mDragWindow;
+
+    void SetUp() override {
+        InputDispatcherTest::SetUp();
+        mApp = std::make_shared<FakeApplicationHandle>();
+        mWindow = new FakeWindowHandle(mApp, mDispatcher, "TestWindow", ADISPLAY_ID_DEFAULT);
+        mWindow->setFrame(Rect(0, 0, 100, 100));
+        mWindow->setFlags(InputWindowInfo::Flag::NOT_TOUCH_MODAL);
+
+        mSecondWindow = new FakeWindowHandle(mApp, mDispatcher, "TestWindow2", ADISPLAY_ID_DEFAULT);
+        mSecondWindow->setFrame(Rect(100, 0, 200, 100));
+        mSecondWindow->setFlags(InputWindowInfo::Flag::NOT_TOUCH_MODAL);
+
+        mDispatcher->setFocusedApplication(ADISPLAY_ID_DEFAULT, mApp);
+        mDispatcher->setInputWindows({{ADISPLAY_ID_DEFAULT, {mWindow, mSecondWindow}}});
+    }
+
+    // Start performing drag, we will create a drag window and transfer touch to it.
+    void performDrag() {
+        ASSERT_EQ(InputEventInjectionResult::SUCCEEDED,
+                  injectMotionDown(mDispatcher, AINPUT_SOURCE_TOUCHSCREEN, ADISPLAY_ID_DEFAULT,
+                                   {50, 50}))
+                << "Inject motion event should return InputEventInjectionResult::SUCCEEDED";
+
+        // Window should receive motion event.
+        mWindow->consumeMotionDown(ADISPLAY_ID_DEFAULT);
+
+        // The drag window covers the entire display
+        mDragWindow = new FakeWindowHandle(mApp, mDispatcher, "DragWindow", ADISPLAY_ID_DEFAULT);
+        mDispatcher->setInputWindows(
+                {{ADISPLAY_ID_DEFAULT, {mDragWindow, mWindow, mSecondWindow}}});
+
+        // Transfer touch focus to the drag window
+        mDispatcher->transferTouchFocus(mWindow->getToken(), mDragWindow->getToken(),
+                                        true /* isDragDrop */);
+        mWindow->consumeMotionCancel();
+        mDragWindow->consumeMotionDown();
+    }
+};
+
+TEST_F(InputDispatcherDragTests, DragEnterAndDragExit) {
+    performDrag();
+
+    // Move on window.
+    ASSERT_EQ(InputEventInjectionResult::SUCCEEDED,
+              injectMotionEvent(mDispatcher, AMOTION_EVENT_ACTION_MOVE, AINPUT_SOURCE_TOUCHSCREEN,
+                                ADISPLAY_ID_DEFAULT, {50, 50}))
+            << "Inject motion event should return InputEventInjectionResult::SUCCEEDED";
+    mDragWindow->consumeMotionMove(ADISPLAY_ID_DEFAULT);
+    mWindow->consumeDragEvent(false, 50, 50);
+    mSecondWindow->assertNoEvents();
+
+    // Move to another window.
+    ASSERT_EQ(InputEventInjectionResult::SUCCEEDED,
+              injectMotionEvent(mDispatcher, AMOTION_EVENT_ACTION_MOVE, AINPUT_SOURCE_TOUCHSCREEN,
+                                ADISPLAY_ID_DEFAULT, {150, 50}))
+            << "Inject motion event should return InputEventInjectionResult::SUCCEEDED";
+    mDragWindow->consumeMotionMove(ADISPLAY_ID_DEFAULT);
+    mWindow->consumeDragEvent(true, 150, 50);
+    mSecondWindow->consumeDragEvent(false, 50, 50);
+
+    // Move back to original window.
+    ASSERT_EQ(InputEventInjectionResult::SUCCEEDED,
+              injectMotionEvent(mDispatcher, AMOTION_EVENT_ACTION_MOVE, AINPUT_SOURCE_TOUCHSCREEN,
+                                ADISPLAY_ID_DEFAULT, {50, 50}))
+            << "Inject motion event should return InputEventInjectionResult::SUCCEEDED";
+    mDragWindow->consumeMotionMove(ADISPLAY_ID_DEFAULT);
+    mWindow->consumeDragEvent(false, 50, 50);
+    mSecondWindow->consumeDragEvent(true, -50, 50);
+
+    ASSERT_EQ(InputEventInjectionResult::SUCCEEDED,
+              injectMotionUp(mDispatcher, AINPUT_SOURCE_TOUCHSCREEN, ADISPLAY_ID_DEFAULT, {50, 50}))
+            << "Inject motion event should return InputEventInjectionResult::SUCCEEDED";
+    mDragWindow->consumeMotionUp(ADISPLAY_ID_DEFAULT);
+    mWindow->assertNoEvents();
+    mSecondWindow->assertNoEvents();
+}
+
 } // namespace android::inputdispatcher