diff --git a/quickstep/src/com/android/launcher3/taskbar/LauncherTaskbarUIController.java b/quickstep/src/com/android/launcher3/taskbar/LauncherTaskbarUIController.java
index 09dbeb6..042bc9a 100644
--- a/quickstep/src/com/android/launcher3/taskbar/LauncherTaskbarUIController.java
+++ b/quickstep/src/com/android/launcher3/taskbar/LauncherTaskbarUIController.java
@@ -36,6 +36,7 @@
 import com.android.launcher3.LauncherState;
 import com.android.launcher3.Utilities;
 import com.android.launcher3.anim.AnimatedFloat;
+import com.android.launcher3.config.FeatureFlags;
 import com.android.launcher3.logging.InstanceId;
 import com.android.launcher3.logging.InstanceIdSequence;
 import com.android.launcher3.model.data.ItemInfo;
@@ -68,14 +69,17 @@
     public static final int ALL_APPS_PAGE_PROGRESS_INDEX = 1;
     public static final int WIDGETS_PAGE_PROGRESS_INDEX = 2;
     public static final int SYSUI_SURFACE_PROGRESS_INDEX = 3;
+    public static final int LAUNCHER_PAUSE_PROGRESS_INDEX = 4;
 
-    public static final int DISPLAY_PROGRESS_COUNT = 4;
+    public static final int DISPLAY_PROGRESS_COUNT = 5;
 
     private final AnimatedFloat mTaskbarInAppDisplayProgress = new AnimatedFloat(
             this::onInAppDisplayProgressChanged);
     private final MultiPropertyFactory<AnimatedFloat> mTaskbarInAppDisplayProgressMultiProp =
             new MultiPropertyFactory<>(mTaskbarInAppDisplayProgress,
                     AnimatedFloat.VALUE, DISPLAY_PROGRESS_COUNT, Float::max);
+    private final AnimatedFloat mLauncherPauseProgress = new AnimatedFloat(
+            this::launcherPauseProgressUpdate);
 
     private final QuickstepLauncher mLauncher;
     private final HomeVisibilityState mHomeState;
@@ -191,6 +195,33 @@
     }
 
     /**
+     * Called when Launcher Activity is paused/resumed.
+     * <p>
+     * To avoid UI clash between taskbar & bottom sheet, shift nav buttons down on launcher
+     * pause/resume at home.
+     * @param paused if launcher is currently paused.
+     */
+    public void onLauncherPausedOrResumed(boolean paused) {
+        if (!FeatureFlags.enableHomeTransitionListener()) {
+            onLauncherVisibilityChanged(mLauncher.hasBeenResumed());
+            return;
+        }
+
+        // Animate navbar iff pause/resume from home, NOT to/from app (avoid overriding existing
+        // animations).
+        boolean launcherPauseOrResumeFromHome = mHomeState.isHomeVisible() && mControllers
+                .taskbarAutohideSuspendController.isSuspendedForTransientTaskbarInLauncher();
+        if (launcherPauseOrResumeFromHome) {
+            mLauncherPauseProgress.animateToValue(paused ? 1.0f : 0.0f).start();
+        }
+    }
+
+    private void launcherPauseProgressUpdate() {
+        onTaskbarInAppDisplayProgressUpdate(
+                mLauncherPauseProgress.value, LAUNCHER_PAUSE_PROGRESS_INDEX);
+    }
+
+    /**
      * Should be called from onResume() and onPause(), and animates the Taskbar accordingly.
      */
     @Override
@@ -364,18 +395,20 @@
         }
         if (mControllers.uiController.isIconAlignedWithHotseat()
                 && !mTaskbarLauncherStateController.isAnimatingToLauncher()) {
-            // Only animate the nav buttons while home and not animating home, otherwise let
+            // Only animate nav button position while home and not animating home, otherwise let
             // the TaskbarViewController handle it.
             mControllers.navbarButtonsViewController
-                    .getTaskbarNavButtonTranslationYForInAppDisplay()
+                    .getNavButtonTranslationYForInAppDisplay()
                     .updateValue(mLauncher.getDeviceProfile().getTaskbarOffsetY()
                             * mTaskbarInAppDisplayProgress.value);
-            mControllers.navbarButtonsViewController
-                    .getOnTaskbarBackgroundNavButtonColorOverride().updateValue(progress);
+            if (!mLauncher.isPaused()) {
+                mControllers.navbarButtonsViewController
+                        .getOnTaskbarBackgroundNavButtonColorOverride().updateValue(progress);
+            }
         }
     }
 
-    /** Returns true iff any in-app display progress > 0. */
+    @Override
     public boolean shouldUseInAppLayout() {
         return mTaskbarInAppDisplayProgress.value > 0;
     }
diff --git a/quickstep/src/com/android/launcher3/taskbar/NavbarButtonsViewController.java b/quickstep/src/com/android/launcher3/taskbar/NavbarButtonsViewController.java
index 7d8e93c..cfcbd2f 100644
--- a/quickstep/src/com/android/launcher3/taskbar/NavbarButtonsViewController.java
+++ b/quickstep/src/com/android/launcher3/taskbar/NavbarButtonsViewController.java
@@ -183,7 +183,7 @@
 
     private final AnimatedFloat mTaskbarNavButtonTranslationY = new AnimatedFloat(
             this::updateNavButtonTranslationY);
-    private final AnimatedFloat mTaskbarNavButtonTranslationYForInAppDisplay = new AnimatedFloat(
+    private final AnimatedFloat mNavButtonTranslationYForInAppDisplay = new AnimatedFloat(
             this::updateNavButtonTranslationY);
     private final AnimatedFloat mTaskbarNavButtonTranslationYForIme = new AnimatedFloat(
             this::updateNavButtonTranslationY);
@@ -704,8 +704,8 @@
     }
 
     /** Use to set the translationY for the all nav+contextual buttons when in Launcher */
-    public AnimatedFloat getTaskbarNavButtonTranslationYForInAppDisplay() {
-        return mTaskbarNavButtonTranslationYForInAppDisplay;
+    public AnimatedFloat getNavButtonTranslationYForInAppDisplay() {
+        return mNavButtonTranslationYForInAppDisplay;
     }
 
     /** Use to set the dark intensity for the all nav+contextual buttons */
@@ -751,21 +751,23 @@
         if (mContext.isPhoneButtonNavMode()) {
             return;
         }
-        final float normalTranslationY = mTaskbarNavButtonTranslationY.value;
-        final float imeAdjustmentTranslationY = mTaskbarNavButtonTranslationYForIme.value;
-        TaskbarUIController uiController = mControllers.uiController;
-        final float inAppDisplayAdjustmentTranslationY =
-                (uiController instanceof LauncherTaskbarUIController
-                        && ((LauncherTaskbarUIController) uiController).shouldUseInAppLayout())
-                        ? mTaskbarNavButtonTranslationYForInAppDisplay.value : 0;
-
-        mLastSetNavButtonTranslationY = normalTranslationY
-                + imeAdjustmentTranslationY
-                + inAppDisplayAdjustmentTranslationY;
+        mLastSetNavButtonTranslationY = calculateNavButtonTranslationY();
         mNavButtonsView.setTranslationY(mLastSetNavButtonTranslationY);
     }
 
     /**
+     * Calculates the translationY of the nav buttons based on the current device state.
+     */
+    private float calculateNavButtonTranslationY() {
+        float translationY =
+                mTaskbarNavButtonTranslationY.value + mTaskbarNavButtonTranslationYForIme.value;
+        if (mControllers.uiController.shouldUseInAppLayout()) {
+            translationY += mNavButtonTranslationYForInAppDisplay.value;
+        }
+        return translationY;
+    }
+
+    /**
      * Sets Taskbar 3-button mode icon colors based on the
      * {@link #mTaskbarNavButtonDarkIntensity} value piped in from Framework. For certain cases
      * in large screen taskbar where there may be opaque surfaces, the selected SystemUI button
@@ -1162,7 +1164,7 @@
         pw.println(prefix + "\t\tmTaskbarNavButtonTranslationY="
                 + mTaskbarNavButtonTranslationY.value);
         pw.println(prefix + "\t\tmTaskbarNavButtonTranslationYForInAppDisplay="
-                + mTaskbarNavButtonTranslationYForInAppDisplay.value);
+                + mNavButtonTranslationYForInAppDisplay.value);
         pw.println(prefix + "\t\tmTaskbarNavButtonTranslationYForIme="
                 + mTaskbarNavButtonTranslationYForIme.value);
         pw.println(prefix + "\t\tmTaskbarNavButtonDarkIntensity="
diff --git a/quickstep/src/com/android/launcher3/taskbar/TaskbarUIController.java b/quickstep/src/com/android/launcher3/taskbar/TaskbarUIController.java
index b80aaf8..7030088 100644
--- a/quickstep/src/com/android/launcher3/taskbar/TaskbarUIController.java
+++ b/quickstep/src/com/android/launcher3/taskbar/TaskbarUIController.java
@@ -91,6 +91,14 @@
     protected void onStashedInAppChanged() { }
 
     /**
+     * Whether the Taskbar should use in-app layout.
+     * @return {@code true} iff in-app display progress > 0 or Launcher Activity paused.
+     */
+    public boolean shouldUseInAppLayout() {
+        return false;
+    }
+
+    /**
      * Called when taskbar icon layout bounds change.
      */
     protected void onIconLayoutBoundsChanged() { }
diff --git a/quickstep/src/com/android/launcher3/taskbar/TaskbarViewController.java b/quickstep/src/com/android/launcher3/taskbar/TaskbarViewController.java
index bc61c72..c4d9e50 100644
--- a/quickstep/src/com/android/launcher3/taskbar/TaskbarViewController.java
+++ b/quickstep/src/com/android/launcher3/taskbar/TaskbarViewController.java
@@ -234,7 +234,7 @@
         mTaskbarNavButtonTranslationY =
                 controllers.navbarButtonsViewController.getTaskbarNavButtonTranslationY();
         mTaskbarNavButtonTranslationYForInAppDisplay = controllers.navbarButtonsViewController
-                .getTaskbarNavButtonTranslationYForInAppDisplay();
+                .getNavButtonTranslationYForInAppDisplay();
 
         mActivity.addOnDeviceProfileChangeListener(mDeviceProfileChangeListener);
 
diff --git a/quickstep/src/com/android/launcher3/uioverrides/QuickstepLauncher.java b/quickstep/src/com/android/launcher3/uioverrides/QuickstepLauncher.java
index 39bf6ac..ce4e980 100644
--- a/quickstep/src/com/android/launcher3/uioverrides/QuickstepLauncher.java
+++ b/quickstep/src/com/android/launcher3/uioverrides/QuickstepLauncher.java
@@ -419,10 +419,8 @@
             mDepthController.setActivityStarted(isStarted());
         }
 
-        if ((changeBits & ACTIVITY_STATE_RESUMED) != 0) {
-            if (!FeatureFlags.enableHomeTransitionListener() && mTaskbarUIController != null) {
-                mTaskbarUIController.onLauncherVisibilityChanged(hasBeenResumed());
-            }
+        if ((changeBits & ACTIVITY_STATE_RESUMED) != 0 && mTaskbarUIController != null) {
+            mTaskbarUIController.onLauncherPausedOrResumed(isPaused());
         }
 
         super.onActivityFlagsChanged(changeBits);
diff --git a/src/com/android/launcher3/BaseActivity.java b/src/com/android/launcher3/BaseActivity.java
index 2e75261..3774ae3 100644
--- a/src/com/android/launcher3/BaseActivity.java
+++ b/src/com/android/launcher3/BaseActivity.java
@@ -306,6 +306,10 @@
         removeActivityFlags(ACTIVITY_STATE_RESUMED | ACTIVITY_STATE_DEFERRED_RESUMED);
     }
 
+    public boolean isPaused() {
+        return !hasBeenResumed() && (mActivityFlags & ACTIVITY_STATE_DEFERRED_RESUMED) == 0;
+    }
+
     /**
      * Sets the activity to appear as resumed.
      */