diff --git a/quickstep/src/com/android/launcher3/statehandlers/DesktopVisibilityController.java b/quickstep/src/com/android/launcher3/statehandlers/DesktopVisibilityController.java
index 42e6809ac5..00a282ad90 100644
--- a/quickstep/src/com/android/launcher3/statehandlers/DesktopVisibilityController.java
+++ b/quickstep/src/com/android/launcher3/statehandlers/DesktopVisibilityController.java
@@ -15,8 +15,10 @@
  */
 package com.android.launcher3.statehandlers;
 
+import static com.android.launcher3.LauncherState.BACKGROUND_APP;
 import static com.android.launcher3.util.Executors.MAIN_EXECUTOR;
 
+import android.os.Debug;
 import android.os.SystemProperties;
 import android.util.Log;
 import android.view.View;
@@ -46,6 +48,7 @@ public class DesktopVisibilityController {
 
     private boolean mFreeformTasksVisible;
     private boolean mInOverviewState;
+    private boolean mBackgroundStateEnabled;
     private boolean mGestureInProgress;
 
     @Nullable
@@ -113,7 +116,11 @@ public class DesktopVisibilityController {
      * Whether freeform windows are visible in desktop mode.
      */
     public boolean areFreeformTasksVisible() {
-        return mFreeformTasksVisible;
+        if (DEBUG) {
+            Log.d(TAG, "areFreeformTasksVisible: freeformVisible=" + mFreeformTasksVisible
+                    + " overview=" + mInOverviewState);
+        }
+        return mFreeformTasksVisible && !mInOverviewState;
     }
 
     /**
@@ -121,7 +128,8 @@ public class DesktopVisibilityController {
      */
     public void setFreeformTasksVisible(boolean freeformTasksVisible) {
         if (DEBUG) {
-            Log.d(TAG, "setFreeformTasksVisible: visible=" + freeformTasksVisible);
+            Log.d(TAG, "setFreeformTasksVisible: visible=" + freeformTasksVisible
+                    + " currentValue=" + mFreeformTasksVisible);
         }
         if (!isDesktopModeSupported()) {
             return;
@@ -146,11 +154,21 @@ public class DesktopVisibilityController {
     }
 
     /**
-     * Sets whether the overview is visible and updates launcher visibility based on that.
+     * Process launcher state change and update launcher view visibility based on desktop state
      */
-    public void setOverviewStateEnabled(boolean overviewStateEnabled) {
+    public void onLauncherStateChanged(LauncherState state) {
         if (DEBUG) {
-            Log.d(TAG, "setOverviewStateEnabled: enabled=" + overviewStateEnabled);
+            Log.d(TAG, "onLauncherStateChanged: newState=" + state);
+        }
+        setBackgroundStateEnabled(state == BACKGROUND_APP);
+        // Desktop visibility tracks overview and background state separately
+        setOverviewStateEnabled(state != BACKGROUND_APP && state.overviewUi);
+    }
+
+    private void setOverviewStateEnabled(boolean overviewStateEnabled) {
+        if (DEBUG) {
+            Log.d(TAG, "setOverviewStateEnabled: enabled=" + overviewStateEnabled
+                    + " currentValue=" + mInOverviewState);
         }
         if (!isDesktopModeSupported()) {
             return;
@@ -160,7 +178,7 @@ public class DesktopVisibilityController {
             if (mInOverviewState) {
                 setLauncherViewsVisibility(View.VISIBLE);
                 markLauncherResumed();
-            } else if (mFreeformTasksVisible && !mGestureInProgress) {
+            } else if (areFreeformTasksVisible() && !mGestureInProgress) {
                 // Switching out of overview state and gesture finished.
                 // If freeform tasks are still visible, hide launcher again.
                 setLauncherViewsVisibility(View.INVISIBLE);
@@ -169,6 +187,27 @@ public class DesktopVisibilityController {
         }
     }
 
+    private void setBackgroundStateEnabled(boolean backgroundStateEnabled) {
+        if (DEBUG) {
+            Log.d(TAG, "setBackgroundStateEnabled: enabled=" + backgroundStateEnabled
+                    + " currentValue=" + mBackgroundStateEnabled);
+        }
+        if (!isDesktopModeSupported()) {
+            return;
+        }
+        if (backgroundStateEnabled != mBackgroundStateEnabled) {
+            mBackgroundStateEnabled = backgroundStateEnabled;
+            if (mBackgroundStateEnabled) {
+                setLauncherViewsVisibility(View.VISIBLE);
+                markLauncherResumed();
+            } else if (areFreeformTasksVisible() && !mGestureInProgress) {
+                // Switching out of background state. If freeform tasks are visible, pause launcher.
+                setLauncherViewsVisibility(View.INVISIBLE);
+                markLauncherPaused();
+            }
+        }
+    }
+
     /**
      * Whether recents gesture is currently in progress.
      */
@@ -183,6 +222,9 @@ public class DesktopVisibilityController {
         if (!isDesktopModeSupported()) {
             return;
         }
+        if (DEBUG) {
+            Log.d(TAG, "setRecentsGestureStart");
+        }
         setRecentsGestureInProgress(true);
     }
 
@@ -194,6 +236,9 @@ public class DesktopVisibilityController {
         if (!isDesktopModeSupported()) {
             return;
         }
+        if (DEBUG) {
+            Log.d(TAG, "setRecentsGestureEnd: endTarget=" + endTarget);
+        }
         setRecentsGestureInProgress(false);
 
         if (endTarget == null) {
@@ -203,9 +248,6 @@ public class DesktopVisibilityController {
     }
 
     private void setRecentsGestureInProgress(boolean gestureInProgress) {
-        if (DEBUG) {
-            Log.d(TAG, "setGestureInProgress: inProgress=" + gestureInProgress);
-        }
         if (gestureInProgress != mGestureInProgress) {
             mGestureInProgress = gestureInProgress;
         }
@@ -222,7 +264,8 @@ public class DesktopVisibilityController {
 
     private void setLauncherViewsVisibility(int visibility) {
         if (DEBUG) {
-            Log.d(TAG, "setLauncherViewsVisibility: visibility=" + visibility);
+            Log.d(TAG, "setLauncherViewsVisibility: visibility=" + visibility + " "
+                    + Debug.getCaller());
         }
         View workspaceView = mLauncher.getWorkspace();
         if (workspaceView != null) {
@@ -236,7 +279,7 @@ public class DesktopVisibilityController {
 
     private void markLauncherPaused() {
         if (DEBUG) {
-            Log.d(TAG, "markLauncherPaused");
+            Log.d(TAG, "markLauncherPaused " + Debug.getCaller());
         }
         StatefulActivity<LauncherState> activity =
                 QuickstepLauncher.ACTIVITY_TRACKER.getCreatedActivity();
@@ -247,7 +290,7 @@ public class DesktopVisibilityController {
 
     private void markLauncherResumed() {
         if (DEBUG) {
-            Log.d(TAG, "markLauncherResumed");
+            Log.d(TAG, "markLauncherResumed " + Debug.getCaller());
         }
         StatefulActivity<LauncherState> activity =
                 QuickstepLauncher.ACTIVITY_TRACKER.getCreatedActivity();
diff --git a/quickstep/src/com/android/quickstep/AbsSwipeUpHandler.java b/quickstep/src/com/android/quickstep/AbsSwipeUpHandler.java
index e788cc42ad..4dfa81dd4e 100644
--- a/quickstep/src/com/android/quickstep/AbsSwipeUpHandler.java
+++ b/quickstep/src/com/android/quickstep/AbsSwipeUpHandler.java
@@ -2084,18 +2084,9 @@ public abstract class AbsSwipeUpHandler<T extends StatefulActivity<S>,
     }
 
     private void finishCurrentTransitionToRecents() {
-        if (mRecentsView != null
-                && mActivityInterface.getDesktopVisibilityController() != null
-                && mActivityInterface.getDesktopVisibilityController().areFreeformTasksVisible()) {
-            mRecentsView.switchToScreenshot(() -> {
-                mRecentsView.finishRecentsAnimation(true /* toRecents */, false /* shouldPip */,
-                        () -> mStateCallback.setStateOnUiThread(STATE_CURRENT_TASK_FINISHED));
-            });
-        } else {
-            mStateCallback.setStateOnUiThread(STATE_CURRENT_TASK_FINISHED);
-            if (mRecentsAnimationController != null) {
-                mRecentsAnimationController.detachNavigationBarFromApp(true);
-            }
+        mStateCallback.setStateOnUiThread(STATE_CURRENT_TASK_FINISHED);
+        if (mRecentsAnimationController != null) {
+            mRecentsAnimationController.detachNavigationBarFromApp(true);
         }
     }
 
diff --git a/quickstep/src/com/android/quickstep/TaskAnimationManager.java b/quickstep/src/com/android/quickstep/TaskAnimationManager.java
index f5a7eccff1..dbd1ea3584 100644
--- a/quickstep/src/com/android/quickstep/TaskAnimationManager.java
+++ b/quickstep/src/com/android/quickstep/TaskAnimationManager.java
@@ -42,7 +42,6 @@ import com.android.launcher3.testing.shared.TestProtocol;
 import com.android.launcher3.util.DisplayController;
 import com.android.quickstep.TopTaskTracker.CachedTaskInfo;
 import com.android.quickstep.util.ActiveGestureLog;
-import com.android.quickstep.views.DesktopTaskView;
 import com.android.quickstep.views.RecentsView;
 import com.android.systemui.shared.recents.model.ThumbnailData;
 import com.android.systemui.shared.system.ActivityManagerWrapper;
@@ -261,12 +260,6 @@ public class TaskAnimationManager implements RecentsAnimationCallbacks.RecentsAn
             // to let the transition controller collect Home activity.
             CachedTaskInfo cti = gestureState.getRunningTask();
             boolean homeIsOnTop = cti != null && cti.isHomeTask();
-            if (DesktopTaskView.DESKTOP_MODE_SUPPORTED) {
-                if (cti != null && cti.isFreeformTask()) {
-                    // No transient launch when desktop task is on top
-                    homeIsOnTop = true;
-                }
-            }
             if (activityInterface.allowAllAppsFromOverview()) {
                 homeIsOnTop = true;
             }
diff --git a/quickstep/src/com/android/quickstep/views/DesktopTaskView.java b/quickstep/src/com/android/quickstep/views/DesktopTaskView.java
index dc6b5a2a47..9ff990e24a 100644
--- a/quickstep/src/com/android/quickstep/views/DesktopTaskView.java
+++ b/quickstep/src/com/android/quickstep/views/DesktopTaskView.java
@@ -18,7 +18,6 @@ package com.android.quickstep.views;
 
 import static android.view.ViewGroup.LayoutParams.WRAP_CONTENT;
 
-import static com.android.launcher3.LauncherState.NORMAL;
 import static com.android.launcher3.util.SplitConfigurationOptions.STAGE_POSITION_UNDEFINED;
 
 import android.content.Context;
@@ -41,7 +40,6 @@ import androidx.annotation.NonNull;
 import androidx.annotation.Nullable;
 
 import com.android.launcher3.DeviceProfile;
-import com.android.launcher3.Launcher;
 import com.android.launcher3.R;
 import com.android.launcher3.Utilities;
 import com.android.launcher3.desktop.DesktopRecentsTransitionController;
@@ -338,16 +336,18 @@ public class DesktopTaskView extends TaskView {
     @Override
     public RunnableList launchTaskAnimated() {
         RunnableList endCallback = new RunnableList();
-        endCallback.add(() -> Launcher.getLauncher(mActivity).getStateManager().goToState(NORMAL));
 
+        RecentsView recentsView = getRecentsView();
         DesktopRecentsTransitionController recentsController =
-                getRecentsView().getDesktopRecentsController();
+                recentsView.getDesktopRecentsController();
         if (recentsController != null) {
             recentsController.launchDesktopFromRecents(this, success -> {
                 endCallback.executeAllAndDestroy();
             });
         }
 
+        // Callbacks get run from recentsView for case when recents animation already running
+        recentsView.addSideTaskLaunchCallback(endCallback);
         return endCallback;
     }
 
diff --git a/quickstep/src/com/android/quickstep/views/LauncherRecentsView.java b/quickstep/src/com/android/quickstep/views/LauncherRecentsView.java
index 1867fe90e3..fb9e640766 100644
--- a/quickstep/src/com/android/quickstep/views/LauncherRecentsView.java
+++ b/quickstep/src/com/android/quickstep/views/LauncherRecentsView.java
@@ -137,16 +137,16 @@ public class LauncherRecentsView extends RecentsView<QuickstepLauncher, Launcher
     @Override
     public void onStateTransitionStart(LauncherState toState) {
         setOverviewStateEnabled(toState.overviewUi);
-        if (toState.overviewUi) {
-            // If overview is enabled, we want to update at the start
-            updateOverviewStateForDesktop(true);
-        }
+
         setOverviewGridEnabled(toState.displayOverviewTasksAsGrid(mActivity.getDeviceProfile()));
         setOverviewFullscreenEnabled(toState.getOverviewFullscreenProgress() == 1);
         if (toState == OVERVIEW_MODAL_TASK) {
             setOverviewSelectEnabled(true);
         }
         setFreezeViewVisibility(true);
+        if (mActivity.getDesktopVisibilityController() != null) {
+            mActivity.getDesktopVisibilityController().onLauncherStateChanged(toState);
+        }
     }
 
     @Override
@@ -167,11 +167,6 @@ public class LauncherRecentsView extends RecentsView<QuickstepLauncher, Launcher
             runActionOnRemoteHandles(remoteTargetHandle ->
                     remoteTargetHandle.getTaskViewSimulator().setDrawsBelowRecents(true));
         }
-
-        if (!finalState.overviewUi) {
-            // If overview is disabled, we want to update at the end
-            updateOverviewStateForDesktop(false);
-        }
     }
 
     @Override
@@ -183,9 +178,6 @@ public class LauncherRecentsView extends RecentsView<QuickstepLauncher, Launcher
                     & CLEAR_ALL_BUTTON) != 0;
             setDisallowScrollToClearAll(!hasClearAllButton);
         }
-        if (mActivity.getDesktopVisibilityController() != null) {
-            mActivity.getDesktopVisibilityController().setOverviewStateEnabled(enabled);
-        }
     }
 
     @Override
@@ -282,11 +274,4 @@ public class LauncherRecentsView extends RecentsView<QuickstepLauncher, Launcher
                     null /* transition */);
         }
     }
-
-    private void updateOverviewStateForDesktop(boolean enabled) {
-        DesktopVisibilityController controller = mActivity.getDesktopVisibilityController();
-        if (controller != null) {
-            controller.setOverviewStateEnabled(enabled);
-        }
-    }
 }