diff --git a/private/crosvm.te b/private/crosvm.te
index 71a35d9..750df24 100644
--- a/private/crosvm.te
+++ b/private/crosvm.te
@@ -112,11 +112,6 @@
   allow crosvm virtualization_service:service_manager find;
   allow crosvm virtualizationservice:binder { call transfer };
 
-  # Allow crosvm to mount Terminal app internal storage directory
-  # to guest VM over virtiofs
-  allow crosvm privapp_data_file:dir { getattr open read search };
-  allow crosvm privapp_data_file:file { open };
-
   # Allow crosvm to play sound.
   binder_call(crosvm, audioserver)
   allow crosvm audioserver_service:service_manager find;
@@ -179,14 +174,12 @@
 # image referring by name to files which it doesn't have permission to open, trying to get crosvm to
 # open them on its behalf. By preventing crosvm from opening any other files we prevent this
 # potential privilege escalation. See http://b/192453819 for more discussion.
-#
-# crosvm requires access to terminal app internal storage; the directory
-# is passed as a mount point to guest VM over virtiofs.
 neverallow crosvm {
   virtualizationservice_data_file
   staging_data_file
   apk_data_file
   app_data_file
+  privapp_data_file
   is_flag_enabled(RELEASE_UNLOCKED_STORAGE_API, `storage_area_content_file')
   is_flag_enabled(RELEASE_AVF_ENABLE_EARLY_VM, `vm_data_file')
   userdebug_or_eng(`-shell_data_file')
@@ -221,10 +214,12 @@
 }:file read;
 
 # Only virtualizationmanager can run crosvm
+# Allow vmlauncher app to launch crosvm for virtiofs
 neverallow {
   domain
   -crosvm
   -virtualizationmanager
+  -vmlauncher_app
 
   is_flag_enabled(RELEASE_AVF_ENABLE_EARLY_VM, `-early_virtmgr')
 } crosvm_exec:file no_x_file_perms;
diff --git a/private/domain.te b/private/domain.te
index e941e10..5e801c2 100644
--- a/private/domain.te
+++ b/private/domain.te
@@ -1658,7 +1658,6 @@
   -runas
   -system_server
   -zygote
-  -crosvm # required to access terminal app internal storage
 } {
   privapp_data_file
   app_data_file
@@ -1724,7 +1723,6 @@
   -artd # compile secondary dex files
   -installd
   -rs # spawned by appdomain, so carryover the exception above
-  -crosvm # required to access terminal app internal storage
 } {
   privapp_data_file
   app_data_file
diff --git a/private/vmlauncher_app.te b/private/vmlauncher_app.te
index 8597fcd..ef34c31 100644
--- a/private/vmlauncher_app.te
+++ b/private/vmlauncher_app.te
@@ -12,6 +12,11 @@
 virtualizationservice_use(vmlauncher_app)
 
 allow vmlauncher_app fsck_exec:file { r_file_perms execute execute_no_trans };
+allow vmlauncher_app crosvm:fd use;
+allow vmlauncher_app crosvm_tmpfs:file { map read write };
+allow vmlauncher_app crosvm_exec:file rx_file_perms;
+
+allow vmlauncher_app privapp_data_file:sock_file { create unlink write getattr };
 
 is_flag_enabled(RELEASE_AVF_SUPPORT_CUSTOM_VM_WITH_PARAVIRTUALIZED_DEVICES, `
   # TODO(b/332677707): remove them when display service uses binder RPC.