diff --git a/quickstep/src/com/android/launcher3/taskbar/LauncherTaskbarUIController.java b/quickstep/src/com/android/launcher3/taskbar/LauncherTaskbarUIController.java
index 317f6a4..89f0f98 100644
--- a/quickstep/src/com/android/launcher3/taskbar/LauncherTaskbarUIController.java
+++ b/quickstep/src/com/android/launcher3/taskbar/LauncherTaskbarUIController.java
@@ -26,7 +26,6 @@
 import android.os.RemoteException;
 import android.util.Log;
 import android.util.SparseArray;
-import android.view.MotionEvent;
 import android.view.TaskTransitionSpec;
 import android.view.WindowManagerGlobal;
 
@@ -196,15 +195,6 @@
         return mTaskbarLauncherStateController.createAnimToLauncher(toState, callbacks, duration);
     }
 
-    /**
-     * @param ev MotionEvent in screen coordinates.
-     * @return Whether any Taskbar item could handle the given MotionEvent if given the chance.
-     */
-    public boolean isEventOverAnyTaskbarItem(MotionEvent ev) {
-        return mControllers.taskbarViewController.isEventOverAnyItem(ev)
-                || mControllers.navbarButtonsViewController.isEventOverAnyItem(ev);
-    }
-
     public boolean isDraggingItem() {
         return mControllers.taskbarDragController.isDragging();
     }
diff --git a/quickstep/src/com/android/launcher3/taskbar/TaskbarControllers.java b/quickstep/src/com/android/launcher3/taskbar/TaskbarControllers.java
index 9c2d21e..772cf18 100644
--- a/quickstep/src/com/android/launcher3/taskbar/TaskbarControllers.java
+++ b/quickstep/src/com/android/launcher3/taskbar/TaskbarControllers.java
@@ -164,6 +164,7 @@
 
     public void onConfigurationChanged(@Config int configChanges) {
         navbarButtonsViewController.onConfigurationChanged(configChanges);
+        taskbarDragLayerController.onConfigurationChanged();
     }
 
     /**
diff --git a/quickstep/src/com/android/launcher3/taskbar/TaskbarDragLayer.java b/quickstep/src/com/android/launcher3/taskbar/TaskbarDragLayer.java
index 7c9a13c..ffb3622 100644
--- a/quickstep/src/com/android/launcher3/taskbar/TaskbarDragLayer.java
+++ b/quickstep/src/com/android/launcher3/taskbar/TaskbarDragLayer.java
@@ -116,9 +116,17 @@
     }
 
     @Override
+    public boolean onInterceptTouchEvent(MotionEvent ev) {
+        if (mControllerCallbacks != null) {
+            mControllerCallbacks.tryStashBasedOnMotionEvent(ev);
+        }
+        return super.onInterceptTouchEvent(ev);
+    }
+
+    @Override
     public boolean onTouchEvent(MotionEvent ev) {
-        if (mControllerCallbacks != null && ev.getAction() == MotionEvent.ACTION_OUTSIDE) {
-            mControllerCallbacks.onActionOutsideEvent();
+        if (mControllerCallbacks != null) {
+            mControllerCallbacks.tryStashBasedOnMotionEvent(ev);
         }
         return super.onTouchEvent(ev);
     }
diff --git a/quickstep/src/com/android/launcher3/taskbar/TaskbarDragLayerController.java b/quickstep/src/com/android/launcher3/taskbar/TaskbarDragLayerController.java
index 13ecf81..fe8a04c 100644
--- a/quickstep/src/com/android/launcher3/taskbar/TaskbarDragLayerController.java
+++ b/quickstep/src/com/android/launcher3/taskbar/TaskbarDragLayerController.java
@@ -18,10 +18,12 @@
 import android.content.res.Resources;
 import android.graphics.Point;
 import android.graphics.Rect;
+import android.view.MotionEvent;
 import android.view.ViewTreeObserver;
 
 import com.android.launcher3.DeviceProfile;
 import com.android.launcher3.R;
+import com.android.launcher3.testing.shared.ResourceUtils;
 import com.android.launcher3.util.DimensionUtils;
 import com.android.launcher3.util.DisplayController;
 import com.android.launcher3.util.TouchController;
@@ -37,6 +39,7 @@
     private final TaskbarActivityContext mActivity;
     private final TaskbarDragLayer mTaskbarDragLayer;
     private final int mFolderMargin;
+    private float mGestureHeightYThreshold;
 
     // Alpha properties for taskbar background.
     private final AnimatedFloat mBgTaskbar = new AnimatedFloat(this::updateBackgroundAlpha);
@@ -63,6 +66,7 @@
         mTaskbarDragLayer = taskbarDragLayer;
         final Resources resources = mTaskbarDragLayer.getResources();
         mFolderMargin = resources.getDimensionPixelSize(R.dimen.taskbar_folder_margin);
+        updateGestureHeight();
     }
 
     public void init(TaskbarControllers controllers) {
@@ -122,6 +126,19 @@
         return mBgOffset;
     }
 
+    private void updateGestureHeight() {
+        int gestureHeight = ResourceUtils.getNavbarSize(ResourceUtils.NAVBAR_BOTTOM_GESTURE_SIZE,
+                mActivity.getResources());
+        mGestureHeightYThreshold = mActivity.getDeviceProfile().heightPx - gestureHeight;
+    }
+
+    /**
+     * Make updates when configuration changes.
+     */
+    public void onConfigurationChanged() {
+        updateGestureHeight();
+    }
+
     private void updateBackgroundAlpha() {
         final float bgNavbar = mBgNavbar.value;
         final float bgTaskbar = mBgTaskbar.value * mKeyguardBgTaskbar.value
@@ -158,6 +175,8 @@
      */
     public class TaskbarDragLayerCallbacks {
 
+        private final int[] mTempOutLocation = new int[2];
+
         /**
          * Called to update the touchable insets.
          * @see ViewTreeObserver.InternalInsetsInfo#setTouchableInsets(int)
@@ -167,9 +186,9 @@
         }
 
         /**
-         * Called whenever TaskbarDragLayer receives an ACTION_OUTSIDE event.
+         * Listens to TaskbarDragLayer touch events and responds accordingly.
          */
-        public void onActionOutsideEvent() {
+        public void tryStashBasedOnMotionEvent(MotionEvent ev) {
             if (!DisplayController.isTransientTaskbar(mActivity)) {
                 return;
             }
@@ -177,7 +196,24 @@
                 return;
             }
 
-            mControllers.taskbarStashController.updateAndAnimateTransientTaskbar(true);
+            boolean stashTaskbar = false;
+
+            MotionEvent screenCoordinates = MotionEvent.obtain(ev);
+            if (ev.getAction() == MotionEvent.ACTION_OUTSIDE) {
+                stashTaskbar = true;
+            } else if (ev.getAction() == MotionEvent.ACTION_DOWN) {
+                mTaskbarDragLayer.getLocationOnScreen(mTempOutLocation);
+                screenCoordinates.offsetLocation(mTempOutLocation[0], mTempOutLocation[1]);
+
+                if (!mControllers.taskbarViewController.isEventOverAnyItem(screenCoordinates)
+                        && screenCoordinates.getY() < mGestureHeightYThreshold) {
+                    stashTaskbar = true;
+                }
+            }
+
+            if (stashTaskbar) {
+                mControllers.taskbarStashController.updateAndAnimateTransientTaskbar(true);
+            }
         }
 
         /**