diff --git a/quickstep/src/com/android/launcher3/taskbar/TaskbarStashController.java b/quickstep/src/com/android/launcher3/taskbar/TaskbarStashController.java
index 1d5fa4d..d083602 100644
--- a/quickstep/src/com/android/launcher3/taskbar/TaskbarStashController.java
+++ b/quickstep/src/com/android/launcher3/taskbar/TaskbarStashController.java
@@ -60,10 +60,10 @@
 
     // If any of these flags are enabled, inset apps by our stashed height instead of our unstashed
     // height. This way the reported insets are consistent even during transitions out of the app.
-    // Currently any flag that causes us to stash in an app is included, except for IME since that
-    // covers the underlying app anyway and thus the app shouldn't change insets.
+    // Currently any flag that causes us to stash in an app is included, except for IME or All Apps
+    // since those cover the underlying app anyway and thus the app shouldn't change insets.
     private static final int FLAGS_REPORT_STASHED_INSETS_TO_APP = FLAGS_STASHED_IN_APP
-            & ~FLAG_STASHED_IN_APP_IME;
+            & ~FLAG_STASHED_IN_APP_IME & ~FLAG_STASHED_IN_APP_ALL_APPS;
 
     /**
      * How long to stash/unstash when manually invoked via long press.
@@ -187,7 +187,7 @@
      * Returns whether the taskbar can visually stash into a handle based on the current device
      * state.
      */
-    private boolean supportsVisualStashing() {
+    public boolean supportsVisualStashing() {
         return !mActivity.isThreeButtonNav();
     }
 
@@ -254,7 +254,7 @@
      * Returns the height that taskbar will inset when inside apps.
      */
     public int getContentHeightToReportToApps() {
-        if (hasAnyFlag(FLAGS_REPORT_STASHED_INSETS_TO_APP)) {
+        if (supportsVisualStashing() && hasAnyFlag(FLAGS_REPORT_STASHED_INSETS_TO_APP)) {
             boolean isAnimating = mAnimator != null && mAnimator.isStarted();
             return mControllers.stashedHandleViewController.isStashedHandleVisible() || isAnimating
                     ? mStashedHeight : 0;
diff --git a/quickstep/src/com/android/launcher3/taskbar/allapps/TaskbarAllAppsContext.java b/quickstep/src/com/android/launcher3/taskbar/allapps/TaskbarAllAppsContext.java
index 7f3add3..a67ca70 100644
--- a/quickstep/src/com/android/launcher3/taskbar/allapps/TaskbarAllAppsContext.java
+++ b/quickstep/src/com/android/launcher3/taskbar/allapps/TaskbarAllAppsContext.java
@@ -22,8 +22,10 @@
 import static com.android.systemui.shared.system.ViewTreeObserverWrapper.InsetsInfo.TOUCHABLE_INSETS_REGION;
 
 import android.content.Context;
+import android.graphics.Insets;
 import android.view.KeyEvent;
 import android.view.View;
+import android.view.WindowInsets;
 
 import com.android.launcher3.AbstractFloatingView;
 import com.android.launcher3.DeviceProfile;
@@ -59,6 +61,10 @@
     private final TaskbarAllAppsDragLayer mDragLayer;
     private final TaskbarAllAppsContainerView mAppsView;
 
+    // We automatically stash taskbar when all apps is opened in gesture navigation mode.
+    private final boolean mWillTaskbarBeVisuallyStashed;
+    private final int mStashedTaskbarHeight;
+
     TaskbarAllAppsContext(
             TaskbarActivityContext taskbarContext,
             TaskbarAllAppsController windowController,
@@ -79,6 +85,9 @@
                 windowController,
                 taskbarStashController);
         mAppsView = slideInView.getAppsView();
+
+        mWillTaskbarBeVisuallyStashed = taskbarStashController.supportsVisualStashing();
+        mStashedTaskbarHeight = taskbarStashController.getStashedHeight();
     }
 
     TaskbarAllAppsViewController getAllAppsViewController() {
@@ -189,5 +198,37 @@
                 inoutInfo.setTouchableInsets(TOUCHABLE_INSETS_REGION);
             }
         }
+
+        @Override
+        public WindowInsets onApplyWindowInsets(WindowInsets insets) {
+            return updateInsetsDueToStashing(insets);
+        }
+
+        /**
+         * Taskbar automatically stashes when opening all apps, but we don't report the insets as
+         * changing to avoid moving the underlying app. But internally, the apps view should still
+         * layout according to the stashed insets rather than the unstashed insets. So this method
+         * does two things:
+         * 1) Sets navigationBars bottom inset to stashedHeight.
+         * 2) Sets tappableInsets bottom inset to 0.
+         */
+        private WindowInsets updateInsetsDueToStashing(WindowInsets oldInsets) {
+            if (!mActivity.mWillTaskbarBeVisuallyStashed) {
+                return oldInsets;
+            }
+            WindowInsets.Builder updatedInsetsBuilder = new WindowInsets.Builder(oldInsets);
+
+            Insets oldNavInsets = oldInsets.getInsets(WindowInsets.Type.navigationBars());
+            Insets newNavInsets = Insets.of(oldNavInsets.left, oldNavInsets.top, oldNavInsets.right,
+                    mActivity.mStashedTaskbarHeight);
+            updatedInsetsBuilder.setInsets(WindowInsets.Type.navigationBars(), newNavInsets);
+
+            Insets oldTappableInsets = oldInsets.getInsets(WindowInsets.Type.tappableElement());
+            Insets newTappableInsets = Insets.of(oldTappableInsets.left, oldTappableInsets.top,
+                    oldTappableInsets.right, 0);
+            updatedInsetsBuilder.setInsets(WindowInsets.Type.tappableElement(), newTappableInsets);
+
+            return updatedInsetsBuilder.build();
+        }
     }
 }
diff --git a/quickstep/src/com/android/launcher3/taskbar/allapps/TaskbarAllAppsController.java b/quickstep/src/com/android/launcher3/taskbar/allapps/TaskbarAllAppsController.java
index 87133fc..321ff79 100644
--- a/quickstep/src/com/android/launcher3/taskbar/allapps/TaskbarAllAppsController.java
+++ b/quickstep/src/com/android/launcher3/taskbar/allapps/TaskbarAllAppsController.java
@@ -15,6 +15,7 @@
  */
 package com.android.launcher3.taskbar.allapps;
 
+import static android.view.WindowManager.LayoutParams.LAYOUT_IN_DISPLAY_CUTOUT_MODE_ALWAYS;
 import static android.view.WindowManager.LayoutParams.TYPE_APPLICATION_OVERLAY;
 
 import static com.android.launcher3.AbstractFloatingView.TYPE_ALL;
@@ -158,6 +159,7 @@
         layoutParams.gravity = Gravity.BOTTOM;
         layoutParams.packageName = mTaskbarContext.getPackageName();
         layoutParams.setFitInsetsTypes(0); // Handled by container view.
+        layoutParams.layoutInDisplayCutoutMode = LAYOUT_IN_DISPLAY_CUTOUT_MODE_ALWAYS;
         layoutParams.setSystemApplicationOverlay(true);
         return layoutParams;
     }