diff --git a/java/framework/src/android/system/virtualmachine/VirtualMachine.java b/java/framework/src/android/system/virtualmachine/VirtualMachine.java
index dd2719c..d746c7c 100644
--- a/java/framework/src/android/system/virtualmachine/VirtualMachine.java
+++ b/java/framework/src/android/system/virtualmachine/VirtualMachine.java
@@ -433,6 +433,7 @@
                 config.serialize(vm.mConfigFilePath);
                 if (vm.mInstanceIdPath != null) {
                     vm.importInstanceIdFrom(vmDescriptor.getInstanceIdFd());
+                    vm.claimInstance();
                 }
 
                 try {
@@ -456,8 +457,8 @@
         } catch (VirtualMachineException | RuntimeException e) {
             // If anything goes wrong, delete any files created so far and the VM's directory
             try {
-                deleteRecursively(vmDir);
-            } catch (IOException innerException) {
+                vmInstanceCleanup(context, name);
+            } catch (Exception innerException) {
                 e.addSuppressed(innerException);
             }
             throw e;
@@ -543,8 +544,8 @@
         } catch (VirtualMachineException | RuntimeException e) {
             // If anything goes wrong, delete any files created so far and the VM's directory
             try {
-                deleteRecursively(vmDir);
-            } catch (IOException innerException) {
+                vmInstanceCleanup(context, name);
+            } catch (Exception innerException) {
                 e.addSuppressed(innerException);
             }
             throw e;
@@ -586,18 +587,52 @@
             // if a new VM is created with the same name (and files) that's unrelated.
             mWasDeleted = true;
         }
-        // TODO(b/294177871): Request deletion of VM secrets.
-        deleteVmDirectory(context, name);
+        vmInstanceCleanup(context, name);
     }
 
-    static void deleteVmDirectory(Context context, String name) throws VirtualMachineException {
+    // Delete the full VM directory and notify VirtualizationService to remove this
+    // VM instance for housekeeping.
+    @GuardedBy("VirtualMachineManager.sCreateLock")
+    static void vmInstanceCleanup(Context context, String name) throws VirtualMachineException {
+        File vmDir = getVmDir(context, name);
+        notifyInstanceRemoval(vmDir, VirtualizationService.getInstance());
         try {
-            deleteRecursively(getVmDir(context, name));
+            deleteRecursively(vmDir);
         } catch (IOException e) {
             throw new VirtualMachineException(e);
         }
     }
 
+    private static void notifyInstanceRemoval(
+            File vmDirectory, @NonNull VirtualizationService service) {
+        File instanceIdFile = new File(vmDirectory, INSTANCE_ID_FILE);
+        try {
+            byte[] instanceId = Files.readAllBytes(instanceIdFile.toPath());
+            service.getBinder().removeVmInstance(instanceId);
+        } catch (Exception e) {
+            // Deliberately ignoring error in removing VM instance. This potentially leads to
+            // unaccounted instances in the VS' database. But, nothing much can be done by caller.
+            Log.w(TAG, "Failed to notify VS to remove the VM instance", e);
+        }
+    }
+
+    // Claim the instance. This notifies the global VS about the ownership of this
+    // instance_id for housekeeping purpose.
+    void claimInstance() throws VirtualMachineException {
+        if (mInstanceIdPath != null) {
+            IVirtualizationService service = mVirtualizationService.getBinder();
+            try {
+                byte[] instanceId = Files.readAllBytes(mInstanceIdPath.toPath());
+                service.claimVmInstance(instanceId);
+            }
+            catch (IOException e) {
+                throw new VirtualMachineException("failed to read instance_id", e);
+            } catch (RemoteException e) {
+                throw e.rethrowAsRuntimeException();
+            }
+        }
+    }
+
     @GuardedBy("VirtualMachineManager.sCreateLock")
     @NonNull
     private static File createVmDir(@NonNull Context context, @NonNull String name)
diff --git a/java/framework/src/android/system/virtualmachine/VirtualMachineManager.java b/java/framework/src/android/system/virtualmachine/VirtualMachineManager.java
index 091d317..8c0c20e 100644
--- a/java/framework/src/android/system/virtualmachine/VirtualMachineManager.java
+++ b/java/framework/src/android/system/virtualmachine/VirtualMachineManager.java
@@ -284,11 +284,12 @@
     public VirtualMachine importFromDescriptor(
             @NonNull String name, @NonNull VirtualMachineDescriptor vmDescriptor)
             throws VirtualMachineException {
+        VirtualMachine vm;
         synchronized (sCreateLock) {
-            VirtualMachine vm = VirtualMachine.fromDescriptor(mContext, name, vmDescriptor);
+            vm = VirtualMachine.fromDescriptor(mContext, name, vmDescriptor);
             mVmsByName.put(name, new WeakReference<>(vm));
-            return vm;
         }
+        return vm;
     }
 
     /**
@@ -334,7 +335,7 @@
         synchronized (sCreateLock) {
             VirtualMachine vm = getVmByName(name);
             if (vm == null) {
-                VirtualMachine.deleteVmDirectory(mContext, name);
+                VirtualMachine.vmInstanceCleanup(mContext, name);
             } else {
                 vm.delete(mContext, name);
             }
diff --git a/virtualizationmanager/src/aidl.rs b/virtualizationmanager/src/aidl.rs
index b8c6315..b712ed6 100644
--- a/virtualizationmanager/src/aidl.rs
+++ b/virtualizationmanager/src/aidl.rs
@@ -231,6 +231,7 @@
 
     /// Allocate a new instance_id to the VM
     fn allocateInstanceId(&self) -> binder::Result<[u8; 64]> {
+        check_manage_access()?;
         GLOBAL_SERVICE.allocateInstanceId()
     }
 
@@ -326,6 +327,16 @@
         check_manage_access()?;
         Ok(is_secretkeeper_supported())
     }
+
+    fn removeVmInstance(&self, instance_id: &[u8; 64]) -> binder::Result<()> {
+        check_manage_access()?;
+        GLOBAL_SERVICE.removeVmInstance(instance_id)
+    }
+
+    fn claimVmInstance(&self, instance_id: &[u8; 64]) -> binder::Result<()> {
+        check_manage_access()?;
+        GLOBAL_SERVICE.claimVmInstance(instance_id)
+    }
 }
 
 impl VirtualizationService {
diff --git a/virtualizationservice/aidl/android/system/virtualizationservice/IVirtualizationService.aidl b/virtualizationservice/aidl/android/system/virtualizationservice/IVirtualizationService.aidl
index 462932c..f8b5087 100644
--- a/virtualizationservice/aidl/android/system/virtualizationservice/IVirtualizationService.aidl
+++ b/virtualizationservice/aidl/android/system/virtualizationservice/IVirtualizationService.aidl
@@ -98,4 +98,19 @@
      * For more info see packages/modules/Virtualization/docs/updatable_vm.md
      */
     boolean isUpdatableVmSupported();
+
+    /**
+     * Notification that state associated with a VM should be removed.
+     *
+     * @param instanceId The ID for the VM.
+     */
+    void removeVmInstance(in byte[64] instanceId);
+
+    /**
+     * Notification that ownership of a VM has been claimed by the caller.  Note that no permission
+     * checks (with respect to the previous owner) are performed.
+     *
+     * @param instanceId The ID for the VM.
+     */
+    void claimVmInstance(in byte[64] instanceId);
 }
diff --git a/vmlauncher_app/java/com/android/virtualization/vmlauncher/MainActivity.java b/vmlauncher_app/java/com/android/virtualization/vmlauncher/MainActivity.java
index 2af1e2f..e365c46 100644
--- a/vmlauncher_app/java/com/android/virtualization/vmlauncher/MainActivity.java
+++ b/vmlauncher_app/java/com/android/virtualization/vmlauncher/MainActivity.java
@@ -117,6 +117,14 @@
     @Override
     protected void onCreate(Bundle savedInstanceState) {
         super.onCreate(savedInstanceState);
+        try {
+            // To ensure that the previous display service is removed.
+            IVirtualizationServiceInternal.Stub.asInterface(
+                            ServiceManager.waitForService("android.system.virtualizationservice"))
+                    .clearDisplayService();
+        } catch (RemoteException e) {
+            Log.d(TAG, "failed to clearDisplayService");
+        }
         getWindow().setDecorFitsSystemWindows(false);
         setContentView(R.layout.activity_main);
         VirtualMachineCallback callback =
@@ -246,10 +254,9 @@
             RemoteExceptionCheckedFunction<ICrosvmAndroidDisplayService> func) {
         IVirtualizationServiceInternal vs =
                 IVirtualizationServiceInternal.Stub.asInterface(
-                        ServiceManager.getService("android.system.virtualizationservice"));
+                        ServiceManager.waitForService("android.system.virtualizationservice"));
         try {
-            assert vs != null;
-            Log.d(TAG, "wait for the service");
+            Log.d(TAG, "wait for the display service");
             ICrosvmAndroidDisplayService service =
                     ICrosvmAndroidDisplayService.Stub.asInterface(vs.waitDisplayService());
             assert service != null;