diff --git a/libs/renderengine/include/renderengine/LayerSettings.h b/libs/renderengine/include/renderengine/LayerSettings.h
index 63ed1ba..715f3f8 100644
--- a/libs/renderengine/include/renderengine/LayerSettings.h
+++ b/libs/renderengine/include/renderengine/LayerSettings.h
@@ -107,6 +107,9 @@
  * material design guidelines.
  */
 struct ShadowSettings {
+    // Boundaries of the shadow.
+    FloatRect boundaries = FloatRect();
+
     // Color to the ambient shadow. The alpha is premultiplied.
     vec4 ambientColor = vec4();
 
@@ -150,6 +153,10 @@
     // True if blending will be forced to be disabled.
     bool disableBlending = false;
 
+    // If true, then this layer casts a shadow and/or blurs behind it, but it does
+    // not otherwise draw any of the layer's other contents.
+    bool skipContentDraw = false;
+
     ShadowSettings shadow;
 
     int backgroundBlurRadius = 0;
@@ -189,9 +196,10 @@
 }
 
 static inline bool operator==(const ShadowSettings& lhs, const ShadowSettings& rhs) {
-    return lhs.ambientColor == rhs.ambientColor && lhs.spotColor == rhs.spotColor &&
-            lhs.lightPos == rhs.lightPos && lhs.lightRadius == rhs.lightRadius &&
-            lhs.length == rhs.length && lhs.casterIsTranslucent == rhs.casterIsTranslucent;
+    return lhs.boundaries == rhs.boundaries && lhs.ambientColor == rhs.ambientColor &&
+            lhs.spotColor == rhs.spotColor && lhs.lightPos == rhs.lightPos &&
+            lhs.lightRadius == rhs.lightRadius && lhs.length == rhs.length &&
+            lhs.casterIsTranslucent == rhs.casterIsTranslucent;
 }
 
 static inline bool operator==(const LayerSettings& lhs, const LayerSettings& rhs) {
@@ -208,7 +216,8 @@
     return lhs.geometry == rhs.geometry && lhs.source == rhs.source && lhs.alpha == rhs.alpha &&
             lhs.sourceDataspace == rhs.sourceDataspace &&
             lhs.colorTransform == rhs.colorTransform &&
-            lhs.disableBlending == rhs.disableBlending && lhs.shadow == rhs.shadow &&
+            lhs.disableBlending == rhs.disableBlending &&
+            lhs.skipContentDraw == rhs.skipContentDraw && lhs.shadow == rhs.shadow &&
             lhs.backgroundBlurRadius == rhs.backgroundBlurRadius &&
             lhs.blurRegionTransform == rhs.blurRegionTransform &&
             lhs.stretchEffect == rhs.stretchEffect;
@@ -251,6 +260,8 @@
 
 static inline void PrintTo(const ShadowSettings& settings, ::std::ostream* os) {
     *os << "ShadowSettings {";
+    *os << "\n    .boundaries = ";
+    PrintTo(settings.boundaries, os);
     *os << "\n    .ambientColor = " << settings.ambientColor;
     *os << "\n    .spotColor = " << settings.spotColor;
     *os << "\n    .lightPos = " << settings.lightPos;
@@ -286,6 +297,7 @@
     PrintTo(settings.sourceDataspace, os);
     *os << "\n    .colorTransform = " << settings.colorTransform;
     *os << "\n    .disableBlending = " << settings.disableBlending;
+    *os << "\n    .skipContentDraw = " << settings.skipContentDraw;
     *os << "\n    .backgroundBlurRadius = " << settings.backgroundBlurRadius;
     for (auto blurRegion : settings.blurRegions) {
         *os << "\n";
diff --git a/libs/renderengine/skia/SkiaGLRenderEngine.cpp b/libs/renderengine/skia/SkiaGLRenderEngine.cpp
index 6cc3d37..6d749ed 100644
--- a/libs/renderengine/skia/SkiaGLRenderEngine.cpp
+++ b/libs/renderengine/skia/SkiaGLRenderEngine.cpp
@@ -846,7 +846,9 @@
         // Layers have a local transform that should be applied to them
         canvas->concat(getSkM44(layer->geometry.positionTransform).asM33());
 
-        const auto [bounds, roundRectClip] = getBoundsAndClip(layer);
+        const auto [bounds, roundRectClip] =
+                getBoundsAndClip(layer->geometry.boundaries, layer->geometry.roundedCornersCrop,
+                                 layer->geometry.roundedCornersRadius);
         if (mBlurFilter && layerHasBlur(layer)) {
             std::unordered_map<uint32_t, sk_sp<SkImage>> cachedBlurs;
 
@@ -895,14 +897,21 @@
             }
         }
 
-        // Shadows are assumed to live only on their own layer - it's not valid
-        // to draw the boundary rectangles when there is already a caster shadow
-        // TODO(b/175915334): consider relaxing this restriction to enable more flexible
-        // composition - using a well-defined invalid color is long-term less error-prone.
         if (layer->shadow.length > 0) {
             // This would require a new parameter/flag to SkShadowUtils::DrawShadow
             LOG_ALWAYS_FATAL_IF(layer->disableBlending, "Cannot disableBlending with a shadow");
 
+            SkRRect shadowBounds, shadowClip;
+            if (layer->geometry.boundaries == layer->shadow.boundaries) {
+                shadowBounds = bounds;
+                shadowClip = roundRectClip;
+            } else {
+                std::tie(shadowBounds, shadowClip) =
+                        getBoundsAndClip(layer->shadow.boundaries,
+                                         layer->geometry.roundedCornersCrop,
+                                         layer->geometry.roundedCornersRadius);
+            }
+
             // Technically, if bounds is a rect and roundRectClip is not empty,
             // it means that the bounds and roundedCornersCrop were different
             // enough that we should intersect them to find the proper shadow.
@@ -910,9 +919,8 @@
             // not match due to rounding errors. Draw the rounded version, which
             // looks more like the intent.
             const auto& rrect =
-                    bounds.isRect() && !roundRectClip.isEmpty() ? roundRectClip : bounds;
+                    shadowBounds.isRect() && !shadowClip.isEmpty() ? shadowClip : shadowBounds;
             drawShadow(canvas, rrect, layer->shadow);
-            continue;
         }
 
         const bool requiresLinearEffect = layer->colorTransform != mat4() ||
@@ -922,8 +930,9 @@
                  display.sdrWhitePointNits != display.maxLuminance);
 
         // quick abort from drawing the remaining portion of the layer
-        if (layer->alpha == 0 && !requiresLinearEffect && !layer->disableBlending &&
-            (!displayColorTransform || displayColorTransform->isAlphaUnchanged())) {
+        if (layer->skipContentDraw ||
+            (layer->alpha == 0 && !requiresLinearEffect && !layer->disableBlending &&
+             (!displayColorTransform || displayColorTransform->isAlphaUnchanged()))) {
             continue;
         }
 
@@ -1093,11 +1102,11 @@
     return SkRect::MakeLTRB(rect.left, rect.top, rect.right, rect.bottom);
 }
 
-inline std::pair<SkRRect, SkRRect> SkiaGLRenderEngine::getBoundsAndClip(
-        const LayerSettings* layer) {
-    const auto bounds = getSkRect(layer->geometry.boundaries);
-    const auto crop = getSkRect(layer->geometry.roundedCornersCrop);
-    const auto cornerRadius = layer->geometry.roundedCornersRadius;
+inline std::pair<SkRRect, SkRRect> SkiaGLRenderEngine::getBoundsAndClip(const FloatRect& boundsRect,
+                                                                        const FloatRect& cropRect,
+                                                                        const float cornerRadius) {
+    const SkRect bounds = getSkRect(boundsRect);
+    const SkRect crop = getSkRect(cropRect);
 
     SkRRect clip;
     if (cornerRadius > 0) {
diff --git a/libs/renderengine/skia/SkiaGLRenderEngine.h b/libs/renderengine/skia/SkiaGLRenderEngine.h
index 1f528b7..4265c08 100644
--- a/libs/renderengine/skia/SkiaGLRenderEngine.h
+++ b/libs/renderengine/skia/SkiaGLRenderEngine.h
@@ -88,7 +88,8 @@
                                                          int hwcFormat, Protection protection);
     inline SkRect getSkRect(const FloatRect& layer);
     inline SkRect getSkRect(const Rect& layer);
-    inline std::pair<SkRRect, SkRRect> getBoundsAndClip(const LayerSettings* layer);
+    inline std::pair<SkRRect, SkRRect> getBoundsAndClip(const FloatRect& bounds,
+                                                        const FloatRect& crop, float cornerRadius);
     inline bool layerHasBlur(const LayerSettings* layer);
     inline SkColor getSkColor(const vec4& color);
     inline SkM44 getSkM44(const mat4& matrix);
diff --git a/libs/renderengine/tests/RenderEngineTest.cpp b/libs/renderengine/tests/RenderEngineTest.cpp
index 72e32ed..1ca7a16 100644
--- a/libs/renderengine/tests/RenderEngineTest.cpp
+++ b/libs/renderengine/tests/RenderEngineTest.cpp
@@ -1265,6 +1265,7 @@
     renderengine::LayerSettings shadowLayer;
     shadowLayer.sourceDataspace = ui::Dataspace::V0_SRGB_LINEAR;
     shadowLayer.geometry.boundaries = castingBounds;
+    shadowLayer.skipContentDraw = true;
     shadowLayer.alpha = 1.0f;
     ColorSourceVariant::fillColor(shadowLayer, 0, 0, 0, this);
     shadowLayer.shadow = shadow;
diff --git a/services/surfaceflinger/EffectLayer.cpp b/services/surfaceflinger/EffectLayer.cpp
index caef338..fd18c3b 100644
--- a/services/surfaceflinger/EffectLayer.cpp
+++ b/services/surfaceflinger/EffectLayer.cpp
@@ -57,19 +57,15 @@
         return {};
     }
 
-    std::optional<compositionengine::LayerFE::LayerSettings> shadowSettings =
-            prepareShadowClientComposition(*layerSettings, targetSettings.viewport,
-                                           targetSettings.dataspace);
-    if (shadowSettings) {
-        results.push_back(*shadowSettings);
-    }
+    // set the shadow for the layer if needed
+    prepareShadowClientComposition(*layerSettings, targetSettings.viewport);
 
     // If fill bounds are occluded or the fill color is invalid skip the fill settings.
     if (targetSettings.realContentIsVisible && fillsColor()) {
         // Set color for color fill settings.
         layerSettings->source.solidColor = getColor().rgb;
         results.push_back(*layerSettings);
-    } else if (hasBlur()) {
+    } else if (hasBlur() || drawShadows()) {
         results.push_back(*layerSettings);
     }
 
diff --git a/services/surfaceflinger/Layer.cpp b/services/surfaceflinger/Layer.cpp
index 8b7dc4d..a7c8704 100644
--- a/services/surfaceflinger/Layer.cpp
+++ b/services/surfaceflinger/Layer.cpp
@@ -573,6 +573,9 @@
     layerSettings.geometry.boundaries = bounds;
     layerSettings.geometry.positionTransform = getTransform().asMatrix4();
 
+    // skip drawing content if the targetSettings indicate the content will be occluded
+    layerSettings.skipContentDraw = !targetSettings.realContentIsVisible;
+
     if (hasColorTransform()) {
         layerSettings.colorTransform = getColorTransform();
     }
@@ -595,42 +598,6 @@
     return layerSettings;
 }
 
-std::optional<compositionengine::LayerFE::LayerSettings> Layer::prepareShadowClientComposition(
-        const LayerFE::LayerSettings& casterLayerSettings, const Rect& layerStackRect,
-        ui::Dataspace outputDataspace) {
-    renderengine::ShadowSettings shadow = getShadowSettings(layerStackRect);
-    if (shadow.length <= 0.f) {
-        return {};
-    }
-
-    const float casterAlpha = casterLayerSettings.alpha;
-    const bool casterIsOpaque = ((casterLayerSettings.source.buffer.buffer != nullptr) &&
-                                 casterLayerSettings.source.buffer.isOpaque);
-
-    compositionengine::LayerFE::LayerSettings shadowLayer = casterLayerSettings;
-
-    shadowLayer.shadow = shadow;
-    shadowLayer.geometry.boundaries = mBounds; // ignore transparent region
-
-    // If the casting layer is translucent, we need to fill in the shadow underneath the layer.
-    // Otherwise the generated shadow will only be shown around the casting layer.
-    shadowLayer.shadow.casterIsTranslucent = !casterIsOpaque || (casterAlpha < 1.0f);
-    shadowLayer.shadow.ambientColor *= casterAlpha;
-    shadowLayer.shadow.spotColor *= casterAlpha;
-    shadowLayer.sourceDataspace = outputDataspace;
-    shadowLayer.source.buffer.buffer = nullptr;
-    shadowLayer.source.buffer.fence = nullptr;
-    shadowLayer.frameNumber = 0;
-    shadowLayer.bufferId = 0;
-    shadowLayer.name = getName();
-
-    if (shadowLayer.shadow.ambientColor.a <= 0.f && shadowLayer.shadow.spotColor.a <= 0.f) {
-        return {};
-    }
-
-    return shadowLayer;
-}
-
 void Layer::prepareClearClientComposition(LayerFE::LayerSettings& layerSettings,
                                           bool blackout) const {
     layerSettings.source.buffer.buffer = nullptr;
@@ -644,6 +611,9 @@
     layerSettings.name = getName();
 }
 
+// TODO(b/188891810): This method now only ever returns 0 or 1 layers so we should return
+// std::optional instead of a vector.  Additionally, we should consider removing
+// this method entirely in favor of calling prepareClientComposition directly.
 std::vector<compositionengine::LayerFE::LayerSettings> Layer::prepareClientCompositionList(
         compositionengine::LayerFE::ClientCompositionTargetSettings& targetSettings) {
     std::optional<compositionengine::LayerFE::LayerSettings> layerSettings =
@@ -659,21 +629,10 @@
         return {*layerSettings};
     }
 
-    std::optional<compositionengine::LayerFE::LayerSettings> shadowSettings =
-            prepareShadowClientComposition(*layerSettings, targetSettings.viewport,
-                                           targetSettings.dataspace);
-    // There are no shadows to render.
-    if (!shadowSettings) {
-        return {*layerSettings};
-    }
+    // set the shadow for the layer if needed
+    prepareShadowClientComposition(*layerSettings, targetSettings.viewport);
 
-    // If the layer casts a shadow but the content casting the shadow is occluded, skip
-    // composing the non-shadow content and only draw the shadows.
-    if (targetSettings.realContentIsVisible) {
-        return {*shadowSettings, *layerSettings};
-    }
-
-    return {*shadowSettings};
+    return {*layerSettings};
 }
 
 Hwc2::IComposerClient::Composition Layer::getCompositionType(const DisplayDevice& display) const {
@@ -2061,16 +2020,37 @@
             : RoundedCornerState();
 }
 
-renderengine::ShadowSettings Layer::getShadowSettings(const Rect& layerStackRect) const {
+void Layer::prepareShadowClientComposition(LayerFE::LayerSettings& caster,
+                                           const Rect& layerStackRect) {
     renderengine::ShadowSettings state = mFlinger->mDrawingState.globalShadowSettings;
 
+    // Note: this preserves existing behavior of shadowing the entire layer and not cropping it if
+    // transparent regions are present. This may not be necessary since shadows are only cast by
+    // SurfaceFlinger's EffectLayers, which do not typically use transparent regions.
+    state.boundaries = mBounds;
+
     // Shift the spot light x-position to the middle of the display and then
     // offset it by casting layer's screen pos.
     state.lightPos.x = (layerStackRect.width() / 2.f) - mScreenBounds.left;
     state.lightPos.y -= mScreenBounds.top;
 
     state.length = mEffectiveShadowRadius;
-    return state;
+
+    if (state.length > 0.f) {
+        const float casterAlpha = caster.alpha;
+        const bool casterIsOpaque =
+                ((caster.source.buffer.buffer != nullptr) && caster.source.buffer.isOpaque);
+
+        // If the casting layer is translucent, we need to fill in the shadow underneath the layer.
+        // Otherwise the generated shadow will only be shown around the casting layer.
+        state.casterIsTranslucent = !casterIsOpaque || (casterAlpha < 1.0f);
+        state.ambientColor *= casterAlpha;
+        state.spotColor *= casterAlpha;
+
+        if (state.ambientColor.a > 0.f && state.spotColor.a > 0.f) {
+            caster.shadow = state;
+        }
+    }
 }
 
 void Layer::commitChildList() {
diff --git a/services/surfaceflinger/Layer.h b/services/surfaceflinger/Layer.h
index 8139d8a..66d7018 100644
--- a/services/surfaceflinger/Layer.h
+++ b/services/surfaceflinger/Layer.h
@@ -764,8 +764,6 @@
     // is ready to acquire a buffer.
     ui::Transform::RotationFlags getFixedTransformHint() const;
 
-    renderengine::ShadowSettings getShadowSettings(const Rect& layerStackRect) const;
-
     /**
      * Traverse this layer and it's hierarchy of children directly. Unlike traverseInZOrder
      * which will not emit children who have relativeZOrder to another layer, this method
@@ -895,9 +893,6 @@
     virtual void setInitialValuesForClone(const sp<Layer>& clonedFrom);
     virtual std::optional<compositionengine::LayerFE::LayerSettings> prepareClientComposition(
             compositionengine::LayerFE::ClientCompositionTargetSettings&);
-    virtual std::optional<compositionengine::LayerFE::LayerSettings> prepareShadowClientComposition(
-            const LayerFE::LayerSettings&, const Rect& layerStackRect,
-            ui::Dataspace outputDataspace);
     virtual void preparePerFrameCompositionState();
     virtual void commitTransaction(State& stateToCommit);
     virtual uint32_t doTransactionResize(uint32_t flags, Layer::State* stateToCommit);
@@ -923,6 +918,7 @@
     // Modifies the passed in layer settings to clear the contents. If the blackout flag is set,
     // the settings clears the content with a solid black fill.
     void prepareClearClientComposition(LayerFE::LayerSettings&, bool blackout) const;
+    void prepareShadowClientComposition(LayerFE::LayerSettings& caster, const Rect& layerStackRect);
 
     void prepareBasicGeometryCompositionState();
     void prepareGeometryCompositionState();