diff --git a/quickstep/src/com/android/launcher3/taskbar/FallbackTaskbarUIController.java b/quickstep/src/com/android/launcher3/taskbar/FallbackTaskbarUIController.java
index 474dc3d..6d778ef 100644
--- a/quickstep/src/com/android/launcher3/taskbar/FallbackTaskbarUIController.java
+++ b/quickstep/src/com/android/launcher3/taskbar/FallbackTaskbarUIController.java
@@ -44,6 +44,17 @@
                     getRecentsView().setTaskLaunchListener(toState == RecentsState.DEFAULT
                             ? (() -> animateToRecentsState(RecentsState.BACKGROUND_APP)) : null);
                 }
+
+                @Override
+                public void onStateTransitionComplete(RecentsState finalState) {
+                    boolean finalStateDefault = finalState == RecentsState.DEFAULT;
+                    // TODO(b/268120202) Taskbar shows up on 3P home, currently we don't go to
+                    //  overview from 3P home. Either implement that or it'll change w/ contextual?
+                    boolean disallowLongClick = finalState == RecentsState.OVERVIEW_SPLIT_SELECT;
+                    Utilities.setOverviewDragState(mControllers,
+                            finalStateDefault /*disallowGlobalDrag*/, disallowLongClick,
+                            finalStateDefault /*allowInitialSplitSelection*/);
+                }
             };
 
     public FallbackTaskbarUIController(RecentsActivity recentsActivity) {
diff --git a/quickstep/src/com/android/launcher3/taskbar/TaskbarLauncherStateController.java b/quickstep/src/com/android/launcher3/taskbar/TaskbarLauncherStateController.java
index 178482e..80cdbe9 100644
--- a/quickstep/src/com/android/launcher3/taskbar/TaskbarLauncherStateController.java
+++ b/quickstep/src/com/android/launcher3/taskbar/TaskbarLauncherStateController.java
@@ -119,14 +119,11 @@
                     mLauncherState = finalState;
                     updateStateForFlag(FLAG_TRANSITION_STATE_RUNNING, false);
                     applyState();
-                    boolean disallowGlobalDrag = finalState instanceof OverviewState;
+                    boolean finalStateOverview = finalState instanceof OverviewState;
                     boolean disallowLongClick = finalState == LauncherState.OVERVIEW_SPLIT_SELECT;
-                    mControllers.taskbarDragController.setDisallowGlobalDrag(disallowGlobalDrag);
-                    mControllers.taskbarDragController.setDisallowLongClick(disallowLongClick);
-                    mControllers.taskbarAllAppsController.setDisallowGlobalDrag(disallowGlobalDrag);
-                    mControllers.taskbarAllAppsController.setDisallowLongClick(disallowLongClick);
-                    mControllers.taskbarPopupController.setAllowInitialSplitSelection(
-                            disallowGlobalDrag);
+                    com.android.launcher3.taskbar.Utilities.setOverviewDragState(
+                            mControllers, finalStateOverview /*disallowGlobalDrag*/,
+                            disallowLongClick, finalStateOverview /*allowInitialSplitSelection*/);
                 }
             };
 
diff --git a/quickstep/src/com/android/launcher3/taskbar/Utilities.java b/quickstep/src/com/android/launcher3/taskbar/Utilities.java
index fda6453..a2b3c96 100644
--- a/quickstep/src/com/android/launcher3/taskbar/Utilities.java
+++ b/quickstep/src/com/android/launcher3/taskbar/Utilities.java
@@ -30,4 +30,18 @@
             str.add(flagName);
         }
     }
+
+    /**
+     * Sets drag, long-click, and split selection behavior on 1P and 3P launchers with Taskbar
+     */
+    static void setOverviewDragState(TaskbarControllers controllers,
+            boolean disallowGlobalDrag, boolean disallowLongClick,
+            boolean allowInitialSplitSelection) {
+        controllers.taskbarDragController.setDisallowGlobalDrag(disallowGlobalDrag);
+        controllers.taskbarDragController.setDisallowLongClick(disallowLongClick);
+        controllers.taskbarAllAppsController.setDisallowGlobalDrag(disallowGlobalDrag);
+        controllers.taskbarAllAppsController.setDisallowLongClick(disallowLongClick);
+        controllers.taskbarPopupController.setAllowInitialSplitSelection(
+                allowInitialSplitSelection);
+    }
 }
diff --git a/quickstep/tests/src/com/android/launcher3/taskbar/FallbackTaskbarUIControllerTest.kt b/quickstep/tests/src/com/android/launcher3/taskbar/FallbackTaskbarUIControllerTest.kt
new file mode 100644
index 0000000..5a53d38
--- /dev/null
+++ b/quickstep/tests/src/com/android/launcher3/taskbar/FallbackTaskbarUIControllerTest.kt
@@ -0,0 +1,83 @@
+/*
+ *  Copyright (C) 2023 The Android Open Source Project
+ *
+ *  Licensed under the Apache License, Version 2.0 (the "License");
+ *  you may not use this file except in compliance with the License.
+ *  You may obtain a copy of the License at
+ *
+ *       http://www.apache.org/licenses/LICENSE-2.0
+ *
+ *  Unless required by applicable law or agreed to in writing, software
+ *  distributed under the License is distributed on an "AS IS" BASIS,
+ *  WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ *  See the License for the specific language governing permissions and
+ *  limitations under the License.
+ *
+ */
+
+package com.android.launcher3.taskbar
+
+import androidx.test.runner.AndroidJUnit4
+import com.android.launcher3.statemanager.StateManager
+import com.android.quickstep.RecentsActivity
+import com.android.quickstep.fallback.RecentsState
+import org.junit.Before
+import org.junit.Test
+import org.junit.runner.RunWith
+import org.mockito.ArgumentCaptor
+import org.mockito.Mock
+import org.mockito.Mockito.times
+import org.mockito.Mockito.verify
+import org.mockito.MockitoAnnotations.initMocks
+import org.mockito.Mockito.`when` as whenever
+
+@RunWith(AndroidJUnit4::class)
+class FallbackTaskbarUIControllerTest : TaskbarBaseTestCase() {
+
+    lateinit var fallbackTaskbarUIController: FallbackTaskbarUIController
+    lateinit var stateListener: StateManager.StateListener<RecentsState>
+
+    @Mock
+    lateinit var recentsActivity: RecentsActivity
+    @Mock
+    lateinit var stateManager: StateManager<RecentsState>
+
+    @Before
+    override fun setup() {
+        super.setup()
+        whenever(recentsActivity.stateManager).thenReturn(stateManager)
+        fallbackTaskbarUIController = FallbackTaskbarUIController(recentsActivity)
+
+        // Capture registered state listener to send events to in our tests
+        val captor = ArgumentCaptor.forClass(StateManager.StateListener::class.java)
+        fallbackTaskbarUIController.init(taskbarControllers)
+        verify(stateManager).addStateListener(captor.capture())
+        stateListener = captor.value as StateManager.StateListener<RecentsState>
+    }
+
+    @Test
+    fun stateTransitionComplete_stateDefault() {
+        stateListener.onStateTransitionComplete(RecentsState.DEFAULT)
+        // verify dragging disabled
+        verify(taskbarDragController, times(1)).setDisallowGlobalDrag(true)
+        verify(taskbarAllAppsController, times(1)).setDisallowGlobalDrag(true)
+        // verify long click enabled
+        verify(taskbarDragController, times(1)).setDisallowLongClick(false)
+        verify(taskbarAllAppsController, times(1)).setDisallowLongClick(false)
+        // verify split selection enabled
+        verify(taskbarPopupController, times(1)).setAllowInitialSplitSelection(true)
+    }
+
+    @Test
+    fun stateTransitionComplete_stateSplitSelect() {
+        stateListener.onStateTransitionComplete(RecentsState.OVERVIEW_SPLIT_SELECT)
+        // verify dragging disabled
+        verify(taskbarDragController, times(1)).setDisallowGlobalDrag(false)
+        verify(taskbarAllAppsController, times(1)).setDisallowGlobalDrag(false)
+        // verify long click enabled
+        verify(taskbarDragController, times(1)).setDisallowLongClick(true)
+        verify(taskbarAllAppsController, times(1)).setDisallowLongClick(true)
+        // verify split selection enabled
+        verify(taskbarPopupController, times(1)).setAllowInitialSplitSelection(false)
+    }
+}
\ No newline at end of file
diff --git a/quickstep/tests/src/com/android/launcher3/taskbar/TaskbarBaseTestCase.kt b/quickstep/tests/src/com/android/launcher3/taskbar/TaskbarBaseTestCase.kt
index 8a78d8c..c5e0398 100644
--- a/quickstep/tests/src/com/android/launcher3/taskbar/TaskbarBaseTestCase.kt
+++ b/quickstep/tests/src/com/android/launcher3/taskbar/TaskbarBaseTestCase.kt
@@ -53,7 +53,7 @@
     @Mock lateinit var taskbarOverlayController: TaskbarOverlayController
     @Mock lateinit var taskbarEduTooltipController: TaskbarEduTooltipController
 
-    lateinit var mTaskbarControllers: TaskbarControllers
+    lateinit var taskbarControllers: TaskbarControllers
 
     @Before
     open fun setup() {
@@ -65,7 +65,7 @@
          * includes that method to allow mocking it.
          */
         MockitoAnnotations.initMocks(this)
-        mTaskbarControllers =
+        taskbarControllers =
             TaskbarControllers(
                 taskbarActivityContext,
                 taskbarDragController,