diff --git a/quickstep/src/com/android/launcher3/taskbar/TaskbarActivityContext.java b/quickstep/src/com/android/launcher3/taskbar/TaskbarActivityContext.java
index 82acc0c..d7e5c61 100644
--- a/quickstep/src/com/android/launcher3/taskbar/TaskbarActivityContext.java
+++ b/quickstep/src/com/android/launcher3/taskbar/TaskbarActivityContext.java
@@ -418,7 +418,7 @@
     /** Called when the visibility of the bubble bar changed. */
     public void bubbleBarVisibilityChanged(boolean isVisible) {
         mControllers.uiController.adjustHotseatForBubbleBar(isVisible);
-        mControllers.taskbarViewController.resetIconAlignmentController();
+        mControllers.taskbarViewController.adjustTaskbarForBubbleBar();
     }
 
     public void init(@NonNull TaskbarSharedState sharedState) {
diff --git a/quickstep/src/com/android/launcher3/taskbar/TaskbarView.java b/quickstep/src/com/android/launcher3/taskbar/TaskbarView.java
index 55bcb23..8816a6d 100644
--- a/quickstep/src/com/android/launcher3/taskbar/TaskbarView.java
+++ b/quickstep/src/com/android/launcher3/taskbar/TaskbarView.java
@@ -120,7 +120,8 @@
 
     private boolean mShouldTryStartAlign;
 
-    private final int mMaxNumIcons;
+    private int mMaxNumIcons = 0;
+    private int mIdealNumIcons = 0;
 
     private final int mAllAppsButtonTranslationOffset;
 
@@ -188,8 +189,6 @@
 
         // TODO: Disable touch events on QSB otherwise it can crash.
         mQsb = LayoutInflater.from(context).inflate(R.layout.search_container_hotseat, this, false);
-
-        mMaxNumIcons = calculateMaxNumIcons();
     }
 
     /**
@@ -200,11 +199,15 @@
         int availableWidth = deviceProfile.widthPx;
         int defaultEdgeMargin =
                 (int) getResources().getDimension(deviceProfile.inv.inlineNavButtonsEndSpacing);
+        int spaceForBubbleBar =
+                Math.round(mControllerCallbacks.getBubbleBarMaxCollapsedWidthIfVisible());
 
         // Reserve space required for edge margins, or for navbar if shown. If task bar needs to be
         // center aligned with nav bar shown, reserve space on both sides.
-        availableWidth -= Math.max(defaultEdgeMargin, deviceProfile.hotseatBarEndOffset);
-        availableWidth -= Math.max(defaultEdgeMargin,
+        availableWidth -=
+                Math.max(defaultEdgeMargin + spaceForBubbleBar, deviceProfile.hotseatBarEndOffset);
+        availableWidth -= Math.max(
+                defaultEdgeMargin + (mShouldTryStartAlign ? 0 : spaceForBubbleBar),
                 mShouldTryStartAlign ? 0 : deviceProfile.hotseatBarEndOffset);
 
         // The space taken by an item icon used during layout.
@@ -231,6 +234,21 @@
         return Math.floorDiv(availableWidth, iconSize) + additionalIcons;
     }
 
+    /**
+     * Recalculates the max number of icons the taskbar view can show without entering overflow.
+     * Returns whether the max number of icons changed and the change affects the number of icons
+     * that should be shown in the taskbar.
+     */
+    boolean updateMaxNumIcons() {
+        if (!Flags.taskbarOverflow()) {
+            return false;
+        }
+        int oldMaxNumIcons = mMaxNumIcons;
+        mMaxNumIcons = calculateMaxNumIcons();
+        return oldMaxNumIcons != mMaxNumIcons
+                && (mIdealNumIcons > oldMaxNumIcons || mIdealNumIcons > mMaxNumIcons);
+    }
+
     @Override
     public void setVisibility(int visibility) {
         boolean changed = getVisibility() != visibility;
@@ -328,6 +346,10 @@
                 && mActivityContext.getTaskbarFeatureEvaluator().getSupportsPinningPopup()) {
             setOnTouchListener(mControllerCallbacks.getTaskbarTouchListener());
         }
+
+        if (Flags.taskbarOverflow()) {
+            mMaxNumIcons = calculateMaxNumIcons();
+        }
     }
 
     private void removeAndRecycle(View view) {
@@ -460,8 +482,9 @@
                 }
             }
 
-            overflowSize =
-                    nextViewIndex + numberOfSupportedRecents + nonTaskIconsToBeAdded - mMaxNumIcons;
+            mIdealNumIcons = nextViewIndex + numberOfSupportedRecents + nonTaskIconsToBeAdded;
+            overflowSize = mIdealNumIcons - mMaxNumIcons;
+
             if (overflowSize > 0 && mTaskbarOverflowView != null) {
                 addView(mTaskbarOverflowView, nextViewIndex++);
             } else if (mTaskbarOverflowView != null) {
diff --git a/quickstep/src/com/android/launcher3/taskbar/TaskbarViewCallbacks.java b/quickstep/src/com/android/launcher3/taskbar/TaskbarViewCallbacks.java
index 834f92e..f65f307 100644
--- a/quickstep/src/com/android/launcher3/taskbar/TaskbarViewCallbacks.java
+++ b/quickstep/src/com/android/launcher3/taskbar/TaskbarViewCallbacks.java
@@ -137,6 +137,17 @@
         return null;
     }
 
+    /**
+     * Get the max bubble bar collapsed width for the current bubble bar visibility state. Used to
+     * reserve space for the bubble bar when transitioning taskbar view into overflow.
+     */
+    public float getBubbleBarMaxCollapsedWidthIfVisible() {
+        return mControllers.bubbleControllers
+                .filter(c -> !c.bubbleBarViewController.isHiddenForNoBubbles())
+                .map(c -> c.bubbleBarViewController.getCollapsedWidthWithMaxVisibleBubbles())
+                .orElse(0f);
+    }
+
     /** Returns true if bubble bar controllers present and enabled in persistent taskbar. */
     public boolean isBubbleBarEnabledInPersistentTaskbar() {
         return Flags.enableBubbleBarInPersistentTaskBar()
diff --git a/quickstep/src/com/android/launcher3/taskbar/TaskbarViewController.java b/quickstep/src/com/android/launcher3/taskbar/TaskbarViewController.java
index 494c472..cebabff 100644
--- a/quickstep/src/com/android/launcher3/taskbar/TaskbarViewController.java
+++ b/quickstep/src/com/android/launcher3/taskbar/TaskbarViewController.java
@@ -779,9 +779,16 @@
         }
     }
 
-    /** Resets the icon alignment controller so that it can be recreated again later. */
-    void resetIconAlignmentController() {
+    /**
+     * Resets the icon alignment controller so that it can be recreated again later, and updates
+     * the list of icons shown in the taskbar if the bubble bar visibility changes the taskbar
+     * overflow state.
+     */
+    void adjustTaskbarForBubbleBar() {
         mIconAlignControllerLazy = null;
+        if (mTaskbarView.updateMaxNumIcons()) {
+            commitRunningAppsToUI();
+        }
     }
 
     /**
diff --git a/quickstep/src/com/android/launcher3/taskbar/bubbles/BubbleBarView.java b/quickstep/src/com/android/launcher3/taskbar/bubbles/BubbleBarView.java
index 350f56f..c5c2d69 100644
--- a/quickstep/src/com/android/launcher3/taskbar/bubbles/BubbleBarView.java
+++ b/quickstep/src/com/android/launcher3/taskbar/bubbles/BubbleBarView.java
@@ -1290,10 +1290,14 @@
         // If there are more than 2 bubbles, the first 2 should be visible when collapsed,
         // excluding the overflow.
         return bubbleChildCount >= MAX_VISIBLE_BUBBLES_COLLAPSED
-                ? getScaledIconSize() + mIconOverlapAmount + horizontalPadding
+                ? getCollapsedWidthWithMaxVisibleBubbles()
                 : getScaledIconSize() + horizontalPadding;
     }
 
+    float getCollapsedWidthWithMaxVisibleBubbles()  {
+        return getScaledIconSize() + mIconOverlapAmount + 2 * mBubbleBarPadding;
+    }
+
     /** Returns the child count excluding the overflow if it's present. */
     int getBubbleChildCount() {
         return hasOverflow() ? getChildCount() - 1 : getChildCount();
diff --git a/quickstep/src/com/android/launcher3/taskbar/bubbles/BubbleBarViewController.java b/quickstep/src/com/android/launcher3/taskbar/bubbles/BubbleBarViewController.java
index 2dddb16..d842138 100644
--- a/quickstep/src/com/android/launcher3/taskbar/bubbles/BubbleBarViewController.java
+++ b/quickstep/src/com/android/launcher3/taskbar/bubbles/BubbleBarViewController.java
@@ -473,6 +473,13 @@
     }
 
     /**
+     * @return the max collapsed width for the bubble bar.
+     */
+    public float getCollapsedWidthWithMaxVisibleBubbles() {
+        return mBarView.getCollapsedWidthWithMaxVisibleBubbles();
+    }
+
+    /**
      * @return {@code true} if bubble bar is on the left edge of the screen, {@code false} if on
      * the right
      */