diff --git a/src/com/android/launcher3/folder/PreviewItemManager.java b/src/com/android/launcher3/folder/PreviewItemManager.java
index 6311638..2276ac7 100644
--- a/src/com/android/launcher3/folder/PreviewItemManager.java
+++ b/src/com/android/launcher3/folder/PreviewItemManager.java
@@ -23,6 +23,7 @@
 import static com.android.launcher3.folder.FolderIcon.DROP_IN_ANIMATION_DURATION;
 import static com.android.launcher3.graphics.PreloadIconDrawable.newPendingIcon;
 import static com.android.launcher3.icons.BitmapInfo.FLAG_THEMED;
+import static com.android.launcher3.model.data.ItemInfoWithIcon.FLAG_SHOW_DOWNLOAD_PROGRESS_MASK;
 
 import android.animation.Animator;
 import android.animation.AnimatorListenerAdapter;
@@ -41,14 +42,13 @@
 import androidx.annotation.VisibleForTesting;
 
 import com.android.launcher3.BubbleTextView;
+import com.android.launcher3.Flags;
 import com.android.launcher3.Utilities;
 import com.android.launcher3.apppairs.AppPairIcon;
 import com.android.launcher3.apppairs.AppPairIconDrawingParams;
 import com.android.launcher3.apppairs.AppPairIconGraphic;
-import com.android.launcher3.graphics.PreloadIconDrawable;
 import com.android.launcher3.model.data.AppPairInfo;
 import com.android.launcher3.model.data.ItemInfo;
-import com.android.launcher3.model.data.ItemInfoWithIcon;
 import com.android.launcher3.model.data.WorkspaceItemInfo;
 import com.android.launcher3.util.Themes;
 import com.android.launcher3.views.ActivityContext;
@@ -442,10 +442,8 @@
     @VisibleForTesting
     public void setDrawable(PreviewItemDrawingParams p, ItemInfo item) {
         if (item instanceof WorkspaceItemInfo wii) {
-            if (wii.hasPromiseIconUi() || (wii.runtimeStatusFlags
-                    & ItemInfoWithIcon.FLAG_SHOW_DOWNLOAD_PROGRESS_MASK) != 0) {
-                PreloadIconDrawable drawable = newPendingIcon(mContext, wii);
-                p.drawable = drawable;
+            if (isActivePendingIcon(wii)) {
+                p.drawable = newPendingIcon(mContext, wii);
             } else {
                 p.drawable = wii.newIcon(mContext,
                         Themes.isThemedIconEnabled(mContext) ? FLAG_THEMED : 0);
@@ -463,4 +461,14 @@
         // callback will be released when the folder is opened.
         p.drawable.setCallback(mIcon);
     }
+
+    /**
+     * Returns true if item is a Promise Icon or actively downloading, and the item is not an
+     * inactive archived app.
+     */
+    private boolean isActivePendingIcon(WorkspaceItemInfo item) {
+        return (item.hasPromiseIconUi()
+                || (item.runtimeStatusFlags & FLAG_SHOW_DOWNLOAD_PROGRESS_MASK) != 0)
+                && !(Flags.useNewIconForArchivedApps() && item.isInactiveArchive());
+    }
 }
diff --git a/tests/src/com/android/launcher3/folder/PreviewItemManagerTest.kt b/tests/src/com/android/launcher3/folder/PreviewItemManagerTest.kt
index 5516f45..7c9f99a 100644
--- a/tests/src/com/android/launcher3/folder/PreviewItemManagerTest.kt
+++ b/tests/src/com/android/launcher3/folder/PreviewItemManagerTest.kt
@@ -25,16 +25,23 @@
 import androidx.test.platform.app.InstrumentationRegistry.getInstrumentation
 import com.android.launcher3.LauncherPrefs.Companion.THEMED_ICONS
 import com.android.launcher3.LauncherPrefs.Companion.get
+import com.android.launcher3.graphics.PreloadIconDrawable
 import com.android.launcher3.icons.BaseIconFactory
 import com.android.launcher3.icons.FastBitmapDrawable
 import com.android.launcher3.icons.UserBadgeDrawable
 import com.android.launcher3.model.data.FolderInfo
 import com.android.launcher3.model.data.ItemInfo
+import com.android.launcher3.model.data.ItemInfoWithIcon.FLAG_ARCHIVED
+import com.android.launcher3.model.data.ItemInfoWithIcon.FLAG_INSTALL_SESSION_ACTIVE
+import com.android.launcher3.model.data.WorkspaceItemInfo
 import com.android.launcher3.util.ActivityContextWrapper
+import com.android.launcher3.util.Executors
 import com.android.launcher3.util.FlagOp
 import com.android.launcher3.util.LauncherLayoutBuilder
 import com.android.launcher3.util.LauncherModelHelper
+import com.android.launcher3.util.TestUtil
 import com.android.launcher3.util.UserIconInfo
+import com.google.common.truth.Truth.assertThat
 import org.junit.After
 import org.junit.Before
 import org.junit.Test
@@ -219,6 +226,39 @@
         )
     }
 
+    @Test
+    fun `Inactive archived app previews are not drawn as preload icon`() {
+        // Given
+        val drawingParams = PreviewItemDrawingParams(0f, 0f, 0f)
+        val archivedApp =
+            WorkspaceItemInfo().apply {
+                runtimeStatusFlags = runtimeStatusFlags or FLAG_ARCHIVED
+                runtimeStatusFlags = runtimeStatusFlags and FLAG_INSTALL_SESSION_ACTIVE.inv()
+            }
+        // When
+        previewItemManager.setDrawable(drawingParams, archivedApp)
+        // Then
+        assertThat(drawingParams.drawable).isNotInstanceOf(PreloadIconDrawable::class.java)
+    }
+
+    @Test
+    fun `Actively installing archived app previews are drawn as preload icon`() {
+        // Given
+        val drawingParams = PreviewItemDrawingParams(0f, 0f, 0f)
+        val archivedApp =
+            WorkspaceItemInfo().apply {
+                runtimeStatusFlags = runtimeStatusFlags or FLAG_ARCHIVED
+                runtimeStatusFlags = runtimeStatusFlags or FLAG_INSTALL_SESSION_ACTIVE
+            }
+        // When
+        TestUtil.runOnExecutorSync(Executors.MAIN_EXECUTOR) {
+            // Run on main thread because preload drawable triggers animator
+            previewItemManager.setDrawable(drawingParams, archivedApp)
+        }
+        // Then
+        assertThat(drawingParams.drawable).isInstanceOf(PreloadIconDrawable::class.java)
+    }
+
     private fun profileFlagOp(type: Int) =
         UserIconInfo(Process.myUserHandle(), type).applyBitmapInfoFlags(FlagOp.NO_OP)
 }