diff --git a/src/com/android/server/telecom/CarModeTracker.java b/src/com/android/server/telecom/CarModeTracker.java
index 737ce5a..ae8febf 100644
--- a/src/com/android/server/telecom/CarModeTracker.java
+++ b/src/com/android/server/telecom/CarModeTracker.java
@@ -150,7 +150,9 @@
         Log.i(this, "handleExitCarMode: packageName=%s, priority=%d", packageName, priority);
         mCarModeChangeLog.log("exitCarMode: packageName=" + packageName + ", priority="
                 + priority);
-        mCarModeApps.removeIf(c -> c.getPriority() == priority);
+
+        //Remove the car mode app with specified priority without clearing out the projection entry.
+        mCarModeApps.removeIf(c -> c.getPriority() == priority && !c.hasSetAutomotiveProjection());
     }
 
     public void handleSetAutomotiveProjection(@NonNull String packageName) {
diff --git a/tests/src/com/android/server/telecom/tests/CarModeTrackerTest.java b/tests/src/com/android/server/telecom/tests/CarModeTrackerTest.java
index 4ad46ae..6056747 100644
--- a/tests/src/com/android/server/telecom/tests/CarModeTrackerTest.java
+++ b/tests/src/com/android/server/telecom/tests/CarModeTrackerTest.java
@@ -236,6 +236,28 @@
     }
 
     /**
+     * Verifies that setting automotive projection overrides entering car mode with the highest
+     * priority of 0. Also ensures exiting car mode doesn't interfere with the automotive
+     * projection being set.
+     */
+    @Test
+    public void testInterleaveCarModeAndProjectionMode() {
+        mCarModeTracker.handleEnterCarMode(0, CAR_MODE_APP1_PACKAGE_NAME);
+        assertEquals(CAR_MODE_APP1_PACKAGE_NAME, mCarModeTracker.getCurrentCarModePackage());
+        assertTrue(mCarModeTracker.isInCarMode());
+
+        mCarModeTracker.handleSetAutomotiveProjection(CAR_MODE_APP2_PACKAGE_NAME);
+        assertEquals(CAR_MODE_APP2_PACKAGE_NAME, mCarModeTracker.getCurrentCarModePackage());
+        assertTrue(mCarModeTracker.isInCarMode());
+
+        mCarModeTracker.handleExitCarMode(0, CAR_MODE_APP1_PACKAGE_NAME);
+        assertEquals(CAR_MODE_APP2_PACKAGE_NAME, mCarModeTracker.getCurrentCarModePackage());
+        assertTrue(mCarModeTracker.isInCarMode());
+
+        mCarModeTracker.handleReleaseAutomotiveProjection();
+    }
+
+    /**
      * Verifies that if we set automotive projection more than once with the same package, nothing
      * changes.
      */