diff --git a/aconfig/launcher_overview.aconfig b/aconfig/launcher_overview.aconfig
index f9327fe..11740ee 100644
--- a/aconfig/launcher_overview.aconfig
+++ b/aconfig/launcher_overview.aconfig
@@ -21,3 +21,13 @@
     description: "Enables rewritten version of TaskThumbnailViews in Overview"
     bug: "331753115"
 }
+
+flag {
+    name: "enable_hover_of_child_elements_in_taskview"
+    namespace: "launcher_overview"
+    description: "Enables child elements to receive hover events in TaskView and respond visually to those hover events."
+    bug: "342594235"
+    metadata {
+      purpose: PURPOSE_BUGFIX
+    }
+}
diff --git a/quickstep/src/com/android/quickstep/views/RecentsView.java b/quickstep/src/com/android/quickstep/views/RecentsView.java
index fa9a282..5a6c278 100644
--- a/quickstep/src/com/android/quickstep/views/RecentsView.java
+++ b/quickstep/src/com/android/quickstep/views/RecentsView.java
@@ -135,6 +135,7 @@
 import com.android.launcher3.AbstractFloatingView;
 import com.android.launcher3.BaseActivity.MultiWindowModeChangedListener;
 import com.android.launcher3.DeviceProfile;
+import com.android.launcher3.Flags;
 import com.android.launcher3.Insettable;
 import com.android.launcher3.InvariantDeviceProfile;
 import com.android.launcher3.PagedView;
@@ -553,6 +554,7 @@
     // Progress from 0 to 1 where 0 is a carousel and 1 is a 2 row grid.
     private float mGridProgress = 0;
     private float mTaskThumbnailSplashAlpha = 0;
+    private boolean mBorderEnabled = false;
     private boolean mShowAsGridLastOnLayout = false;
     private final IntSet mTopRowIdSet = new IntSet();
     private int mClearAllShortTotalWidthTranslation = 0;
@@ -1525,6 +1527,7 @@
      * Enable or disable showing border on hover and focus change on task views
      */
     public void setTaskBorderEnabled(boolean enabled) {
+        mBorderEnabled = enabled;
         int taskCount = getTaskViewCount();
         for (int i = 0; i < taskCount; i++) {
             TaskView taskView = requireTaskViewAt(i);
@@ -2044,6 +2047,7 @@
                 taskView.setFullscreenProgress(mFullscreenProgress);
                 taskView.setModalness(mTaskModalness);
                 taskView.setTaskThumbnailSplashAlpha(mTaskThumbnailSplashAlpha);
+                taskView.setBorderEnabled(mBorderEnabled);
             }
         }
         // resetTaskVisuals is called at the end of dismiss animation which could update
@@ -4917,6 +4921,9 @@
                 mSplitHiddenTaskView.updateSnapshotRadius();
             });
         } else if (isInitiatingSplitFromTaskView) {
+            if (Flags.enableHoverOfChildElementsInTaskview()) {
+                mSplitHiddenTaskView.setBorderEnabled(false);
+            }
             // Splitting from Overview for fullscreen task
             createTaskDismissAnimation(builder, mSplitHiddenTaskView, true, false, duration,
                     true /* dismissingForSplitSelection*/);
diff --git a/quickstep/src/com/android/quickstep/views/TaskMenuViewWithArrow.kt b/quickstep/src/com/android/quickstep/views/TaskMenuViewWithArrow.kt
index e10d38c..158ae33 100644
--- a/quickstep/src/com/android/quickstep/views/TaskMenuViewWithArrow.kt
+++ b/quickstep/src/com/android/quickstep/views/TaskMenuViewWithArrow.kt
@@ -42,7 +42,11 @@
     companion object {
         const val TAG = "TaskMenuViewWithArrow"
 
-        fun showForTask(taskContainer: TaskContainer, alignedOptionIndex: Int = 0): Boolean {
+        fun showForTask(
+            taskContainer: TaskContainer,
+            alignedOptionIndex: Int = 0,
+            onClosedCallback: Runnable? = null
+        ): Boolean {
             val container: RecentsViewContainer =
                 RecentsViewContainer.containerFromContext(taskContainer.taskView.context)
             val taskMenuViewWithArrow =
@@ -52,7 +56,11 @@
                     false
                 ) as TaskMenuViewWithArrow<*>
 
-            return taskMenuViewWithArrow.populateAndShowForTask(taskContainer, alignedOptionIndex)
+            return taskMenuViewWithArrow.populateAndShowForTask(
+                taskContainer,
+                alignedOptionIndex,
+                onClosedCallback
+            )
         }
     }
 
@@ -98,6 +106,7 @@
     private var iconView: IconView? = null
     private var scrim: View? = null
     private val scrimAlpha = 0.8f
+    private var onClosedCallback: Runnable? = null
 
     override fun isOfType(type: Int): Boolean = type and TYPE_TASK_MENU != 0
 
@@ -141,7 +150,8 @@
 
     private fun populateAndShowForTask(
         taskContainer: TaskContainer,
-        alignedOptionIndex: Int
+        alignedOptionIndex: Int,
+        onClosedCallback: Runnable?
     ): Boolean {
         if (isAttachedToWindow) {
             return false
@@ -150,6 +160,7 @@
         taskView = taskContainer.taskView
         this.taskContainer = taskContainer
         this.alignedOptionIndex = alignedOptionIndex
+        this.onClosedCallback = onClosedCallback
         if (!populateMenu()) return false
         addScrim()
         show()
@@ -252,6 +263,7 @@
         super.closeComplete()
         popupContainer.removeView(scrim)
         popupContainer.removeView(iconView)
+        onClosedCallback?.run()
     }
 
     /**
diff --git a/quickstep/src/com/android/quickstep/views/TaskView.kt b/quickstep/src/com/android/quickstep/views/TaskView.kt
index e189d14..d87e05f 100644
--- a/quickstep/src/com/android/quickstep/views/TaskView.kt
+++ b/quickstep/src/com/android/quickstep/views/TaskView.kt
@@ -48,6 +48,7 @@
 import com.android.launcher3.Flags.enableCursorHoverStates
 import com.android.launcher3.Flags.enableFocusOutline
 import com.android.launcher3.Flags.enableGridOnlyOverview
+import com.android.launcher3.Flags.enableHoverOfChildElementsInTaskview
 import com.android.launcher3.Flags.enableOverviewIconMenu
 import com.android.launcher3.Flags.enableRefactorTaskThumbnail
 import com.android.launcher3.R
@@ -413,6 +414,26 @@
             focusBorderAnimator?.setBorderVisibility(visible = field && isFocused, animated = true)
         }
 
+    /**
+     * Used to cache the hover border state so we don't repeatedly call the border animator with
+     * every hover event when the user hasn't crossed the threshold of the [thumbnailBounds].
+     */
+    private var hoverBorderVisible = false
+        set(value) {
+            if (field == value) {
+                return
+            }
+            field = value
+            Log.d(
+                TAG,
+                "${taskIds.contentToString()} - setting border animator visibility to: $field"
+            )
+            hoverBorderAnimator?.setBorderVisibility(visible = field, animated = true)
+        }
+
+    // Used to cache thumbnail bounds to avoid recalculating on every hover move.
+    private var thumbnailBounds = Rect()
+
     private var focusTransitionProgress = 1f
         set(value) {
             field = value
@@ -511,20 +532,28 @@
     override fun onHoverEvent(event: MotionEvent): Boolean {
         if (borderEnabled) {
             when (event.action) {
-                MotionEvent.ACTION_HOVER_ENTER ->
-                    hoverBorderAnimator?.setBorderVisibility(visible = true, animated = true)
-                MotionEvent.ACTION_HOVER_EXIT ->
-                    hoverBorderAnimator?.setBorderVisibility(visible = false, animated = true)
+                MotionEvent.ACTION_HOVER_ENTER -> {
+                    hoverBorderVisible =
+                        if (enableHoverOfChildElementsInTaskview()) {
+                            getThumbnailBounds(thumbnailBounds)
+                            event.isWithinThumbnailBounds()
+                        } else {
+                            true
+                        }
+                }
+                MotionEvent.ACTION_HOVER_MOVE ->
+                    if (enableHoverOfChildElementsInTaskview())
+                        hoverBorderVisible = event.isWithinThumbnailBounds()
+                MotionEvent.ACTION_HOVER_EXIT -> hoverBorderVisible = false
                 else -> {}
             }
         }
         return super.onHoverEvent(event)
     }
 
-    // avoid triggering hover event on child elements which would cause HOVER_EXIT for this
-    // task view
-    override fun onInterceptHoverEvent(event: MotionEvent) =
-        if (enableCursorHoverStates()) true else super.onInterceptHoverEvent(event)
+    override fun onInterceptHoverEvent(event: MotionEvent): Boolean =
+        if (enableHoverOfChildElementsInTaskview()) super.onInterceptHoverEvent(event)
+        else if (enableCursorHoverStates()) true else super.onInterceptHoverEvent(event)
 
     override fun dispatchTouchEvent(ev: MotionEvent): Boolean {
         val recentsView = recentsView ?: return false
@@ -567,6 +596,9 @@
                 it.right = width
                 it.bottom = height
             }
+        if (enableHoverOfChildElementsInTaskview()) {
+            getThumbnailBounds(thumbnailBounds)
+        }
     }
 
     override fun onRecycle() {
@@ -579,6 +611,7 @@
         setOverlayEnabled(false)
         onTaskListVisibilityChanged(false)
         borderEnabled = false
+        hoverBorderVisible = false
         taskViewId = UNBOUND_TASK_VIEW_ID
         taskContainers.forEach { it.destroy() }
     }
@@ -1225,10 +1258,17 @@
 
     private fun showTaskMenuWithContainer(menuContainer: TaskContainer): Boolean {
         val recentsView = recentsView ?: return false
+        if (enableHoverOfChildElementsInTaskview()) {
+            // Disable hover on all TaskView's whilst menu is showing.
+            recentsView.setTaskBorderEnabled(false)
+        }
         return if (enableOverviewIconMenu() && menuContainer.iconView is IconAppChipView) {
             menuContainer.iconView.revealAnim(/* isRevealing= */ true)
             TaskMenuView.showForTask(menuContainer) {
                 menuContainer.iconView.revealAnim(/* isRevealing= */ false)
+                if (enableHoverOfChildElementsInTaskview()) {
+                    recentsView.setTaskBorderEnabled(true)
+                }
             }
         } else if (container.deviceProfile.isTablet) {
             val alignedOptionIndex =
@@ -1248,9 +1288,17 @@
                 } else {
                     0
                 }
-            TaskMenuViewWithArrow.showForTask(menuContainer, alignedOptionIndex)
+            TaskMenuViewWithArrow.showForTask(menuContainer, alignedOptionIndex) {
+                if (enableHoverOfChildElementsInTaskview()) {
+                    recentsView.setTaskBorderEnabled(true)
+                }
+            }
         } else {
-            TaskMenuView.showForTask(menuContainer)
+            TaskMenuView.showForTask(menuContainer) {
+                if (enableHoverOfChildElementsInTaskview()) {
+                    recentsView.setTaskBorderEnabled(true)
+                }
+            }
         }
     }
 
@@ -1583,6 +1631,10 @@
         override fun close() {}
     }
 
+    private fun MotionEvent.isWithinThumbnailBounds(): Boolean {
+        return thumbnailBounds.contains(x.toInt(), y.toInt())
+    }
+
     companion object {
         private const val TAG = "TaskView"
         const val FLAG_UPDATE_ICON = 1
diff --git a/quickstep/tests/src/com/android/quickstep/TaskViewTest.java b/quickstep/tests/src/com/android/quickstep/TaskViewTest.java
index 512557b..dc1da69 100644
--- a/quickstep/tests/src/com/android/quickstep/TaskViewTest.java
+++ b/quickstep/tests/src/com/android/quickstep/TaskViewTest.java
@@ -88,18 +88,6 @@
     }
 
     @Test
-    public void showBorderOnHoverEvent() {
-        mTaskView.setBorderEnabled(/* enabled= */ true);
-        MotionEvent event = MotionEvent.obtain(0, 0, MotionEvent.ACTION_HOVER_ENTER, 0.0f, 0.0f, 0);
-        mTaskView.onHoverEvent(MotionEvent.obtain(event));
-        verify(mHoverAnimator, times(1)).setBorderVisibility(/* visible= */ true, /* animated= */
-                true);
-        mTaskView.onFocusChanged(true, 0, new Rect());
-        verify(mFocusAnimator, times(1)).setBorderVisibility(/* visible= */ true, /* animated= */
-                true);
-    }
-
-    @Test
     public void showBorderOnBorderEnabled() {
         presetBorderStatus(/* enabled= */ false);
         mTaskView.setBorderEnabled(/* enabled= */ true);