diff --git a/quickstep/src/com/android/launcher3/taskbar/NavbarButtonsViewController.java b/quickstep/src/com/android/launcher3/taskbar/NavbarButtonsViewController.java
index 002a86c..094bced 100644
--- a/quickstep/src/com/android/launcher3/taskbar/NavbarButtonsViewController.java
+++ b/quickstep/src/com/android/launcher3/taskbar/NavbarButtonsViewController.java
@@ -36,6 +36,7 @@
 import static com.android.systemui.shared.system.QuickStepContract.SYSUI_STATE_OVERVIEW_DISABLED;
 import static com.android.systemui.shared.system.QuickStepContract.SYSUI_STATE_QUICK_SETTINGS_EXPANDED;
 import static com.android.systemui.shared.system.QuickStepContract.SYSUI_STATE_SCREEN_PINNING;
+import static com.android.systemui.shared.system.ViewTreeObserverWrapper.InsetsInfo.TOUCHABLE_INSETS_REGION;
 
 import android.animation.ArgbEvaluator;
 import android.animation.ObjectAnimator;
@@ -55,9 +56,11 @@
 import android.view.Gravity;
 import android.view.MotionEvent;
 import android.view.View;
+import android.view.View.OnAttachStateChangeListener;
 import android.view.View.OnClickListener;
 import android.view.View.OnHoverListener;
 import android.view.ViewGroup;
+import android.view.WindowManager;
 import android.widget.FrameLayout;
 import android.widget.ImageView;
 import android.widget.LinearLayout;
@@ -68,10 +71,13 @@
 import com.android.launcher3.anim.AlphaUpdateListener;
 import com.android.launcher3.taskbar.TaskbarNavButtonController.TaskbarButton;
 import com.android.launcher3.util.MultiValueAlpha;
+import com.android.launcher3.util.TouchController;
+import com.android.launcher3.views.BaseDragLayer;
 import com.android.quickstep.AnimatedFloat;
 import com.android.systemui.shared.rotation.FloatingRotationButton;
 import com.android.systemui.shared.rotation.RotationButton;
 import com.android.systemui.shared.rotation.RotationButtonController;
+import com.android.systemui.shared.system.ViewTreeObserverWrapper;
 
 import java.util.ArrayList;
 import java.util.function.IntPredicate;
@@ -98,6 +104,8 @@
 
     private static final int MASK_IME_SWITCHER_VISIBLE = FLAG_SWITCHER_SUPPORTED | FLAG_IME_VISIBLE;
 
+    private static final String NAV_BUTTONS_SEPARATE_WINDOW_TITLE = "Taskbar Nav Buttons";
+
     private final ArrayList<StatePropertyHolder> mPropertyHolders = new ArrayList<>();
     private final ArrayList<ImageView> mAllButtons = new ArrayList<>();
     private int mState;
@@ -134,6 +142,12 @@
     private View mHomeButton;
     private FloatingRotationButton mFloatingRotationButton;
 
+    // Variables for moving nav buttons to a separate window above IME
+    private boolean mAreNavButtonsInSeparateWindow = false;
+    private BaseDragLayer<TaskbarActivityContext> mSeparateWindowParent; // Initialized in init.
+    private final ViewTreeObserverWrapper.OnComputeInsetsListener mSeparateWindowInsetsComputer =
+            this::onComputeInsetsForSeparateWindow;
+
     public NavbarButtonsViewController(TaskbarActivityContext context, FrameLayout navButtonsView) {
         mContext = context;
         mNavButtonsView = navButtonsView;
@@ -321,6 +335,21 @@
                     R.id.notifications_button);
         }
 
+        // Initialize things needed to move nav buttons to separate window.
+        mSeparateWindowParent = new BaseDragLayer<TaskbarActivityContext>(mContext, null, 0) {
+            @Override
+            public void recreateControllers() {
+                mControllers = new TouchController[0];
+            }
+
+            @Override
+            protected boolean canFindActiveController() {
+                // We don't have any controllers, but we don't want any floating views such as
+                // folder to intercept, either. This ensures nav buttons can always be pressed.
+                return false;
+            }
+        };
+        mSeparateWindowParent.recreateControllers();
     }
 
     private void initButtons(ViewGroup navContainer, ViewGroup endContainer,
@@ -456,7 +485,7 @@
     /**
      * Adds the bounds corresponding to all visible buttons to provided region
      */
-    public void addVisibleButtonsRegion(TaskbarDragLayer parent, Region outRegion) {
+    public void addVisibleButtonsRegion(BaseDragLayer<?> parent, Region outRegion) {
         int count = mAllButtons.size();
         for (int i = 0; i < count; i++) {
             View button = mAllButtons.get(i);
@@ -561,6 +590,59 @@
         if (mFloatingRotationButton != null) {
             mFloatingRotationButton.hide();
         }
+
+        moveNavButtonsBackToTaskbarWindow();
+    }
+
+    /**
+     * Moves mNavButtonsView from TaskbarDragLayer to a placeholder BaseDragLayer on a new window.
+     */
+    public void moveNavButtonsToNewWindow() {
+        if (mAreNavButtonsInSeparateWindow) {
+            return;
+        }
+
+        mSeparateWindowParent.addOnAttachStateChangeListener(new OnAttachStateChangeListener() {
+            @Override
+            public void onViewAttachedToWindow(View view) {
+                ViewTreeObserverWrapper.addOnComputeInsetsListener(
+                        mSeparateWindowParent.getViewTreeObserver(), mSeparateWindowInsetsComputer);
+            }
+
+            @Override
+            public void onViewDetachedFromWindow(View view) {
+                mSeparateWindowParent.removeOnAttachStateChangeListener(this);
+                ViewTreeObserverWrapper.removeOnComputeInsetsListener(
+                        mSeparateWindowInsetsComputer);
+            }
+        });
+
+        mAreNavButtonsInSeparateWindow = true;
+        mContext.getDragLayer().removeView(mNavButtonsView);
+        mSeparateWindowParent.addView(mNavButtonsView);
+        WindowManager.LayoutParams windowLayoutParams = mContext.createDefaultWindowLayoutParams();
+        windowLayoutParams.setTitle(NAV_BUTTONS_SEPARATE_WINDOW_TITLE);
+        mContext.addWindowView(mSeparateWindowParent, windowLayoutParams);
+
+    }
+
+    /**
+     * Moves mNavButtonsView from its temporary window and reattaches it to TaskbarDragLayer.
+     */
+    public void moveNavButtonsBackToTaskbarWindow() {
+        if (!mAreNavButtonsInSeparateWindow) {
+            return;
+        }
+
+        mAreNavButtonsInSeparateWindow = false;
+        mContext.removeWindowView(mSeparateWindowParent);
+        mSeparateWindowParent.removeView(mNavButtonsView);
+        mContext.getDragLayer().addView(mNavButtonsView);
+    }
+
+    private void onComputeInsetsForSeparateWindow(ViewTreeObserverWrapper.InsetsInfo insetsInfo) {
+        addVisibleButtonsRegion(mSeparateWindowParent, insetsInfo.touchableRegion);
+        insetsInfo.setTouchableInsets(TOUCHABLE_INSETS_REGION);
     }
 
     private class RotationButtonListener implements RotationButton.RotationButtonUpdatesCallback {
diff --git a/quickstep/src/com/android/launcher3/taskbar/TaskbarActivityContext.java b/quickstep/src/com/android/launcher3/taskbar/TaskbarActivityContext.java
index 1198dc5..b32137a 100644
--- a/quickstep/src/com/android/launcher3/taskbar/TaskbarActivityContext.java
+++ b/quickstep/src/com/android/launcher3/taskbar/TaskbarActivityContext.java
@@ -16,6 +16,7 @@
 package com.android.launcher3.taskbar;
 
 import static android.view.ViewGroup.LayoutParams.MATCH_PARENT;
+import static android.view.WindowManager.LayoutParams.FLAG_NOT_FOCUSABLE;
 import static android.view.WindowManager.LayoutParams.LAYOUT_IN_DISPLAY_CUTOUT_MODE_ALWAYS;
 import static android.view.WindowManager.LayoutParams.TYPE_NAVIGATION_BAR_PANEL;
 
@@ -189,21 +190,7 @@
 
     public void init(TaskbarSharedState sharedState) {
         mLastRequestedNonFullscreenHeight = getDefaultTaskbarWindowHeight();
-        mWindowLayoutParams = new WindowManager.LayoutParams(
-                MATCH_PARENT,
-                mLastRequestedNonFullscreenHeight,
-                TYPE_NAVIGATION_BAR_PANEL,
-                WindowManager.LayoutParams.FLAG_NOT_FOCUSABLE
-                        | WindowManager.LayoutParams.FLAG_SLIPPERY,
-                PixelFormat.TRANSLUCENT);
-        mWindowLayoutParams.setTitle(WINDOW_TITLE);
-        mWindowLayoutParams.packageName = getPackageName();
-        mWindowLayoutParams.gravity = Gravity.BOTTOM;
-        mWindowLayoutParams.setFitInsetsTypes(0);
-        mWindowLayoutParams.softInputMode = WindowManager.LayoutParams.SOFT_INPUT_ADJUST_NOTHING;
-        mWindowLayoutParams.layoutInDisplayCutoutMode = LAYOUT_IN_DISPLAY_CUTOUT_MODE_ALWAYS;
-        mWindowLayoutParams.privateFlags =
-                WindowManager.LayoutParams.PRIVATE_FLAG_NO_MOVE_ANIMATION;
+        mWindowLayoutParams = createDefaultWindowLayoutParams();
 
         WindowManagerWrapper wmWrapper = WindowManagerWrapper.getInstance();
         wmWrapper.setProvidesInsetsTypes(
@@ -224,6 +211,27 @@
         mWindowManager.addView(mDragLayer, mWindowLayoutParams);
     }
 
+    /** Creates LayoutParams for adding a view directly to WindowManager as a new window */
+    public WindowManager.LayoutParams createDefaultWindowLayoutParams() {
+        WindowManager.LayoutParams windowLayoutParams = new WindowManager.LayoutParams(
+                MATCH_PARENT,
+                mLastRequestedNonFullscreenHeight,
+                TYPE_NAVIGATION_BAR_PANEL,
+                WindowManager.LayoutParams.FLAG_NOT_FOCUSABLE
+                        | WindowManager.LayoutParams.FLAG_SLIPPERY,
+                PixelFormat.TRANSLUCENT);
+        windowLayoutParams.setTitle(WINDOW_TITLE);
+        windowLayoutParams.packageName = getPackageName();
+        windowLayoutParams.gravity = Gravity.BOTTOM;
+        windowLayoutParams.setFitInsetsTypes(0);
+        windowLayoutParams.receiveInsetsIgnoringZOrder = true;
+        windowLayoutParams.softInputMode = WindowManager.LayoutParams.SOFT_INPUT_ADJUST_NOTHING;
+        windowLayoutParams.layoutInDisplayCutoutMode = LAYOUT_IN_DISPLAY_CUTOUT_MODE_ALWAYS;
+        windowLayoutParams.privateFlags =
+                WindowManager.LayoutParams.PRIVATE_FLAG_NO_MOVE_ANIMATION;
+        return windowLayoutParams;
+    }
+
     public void onConfigurationChanged(@Config int configChanges) {
         mControllers.onConfigurationChanged(configChanges);
     }
@@ -271,14 +279,6 @@
     }
 
     @Override
-    public boolean supportsIme() {
-        // Currently we don't support IME because we have FLAG_NOT_FOCUSABLE. We can remove that
-        // flag when opening a floating view that needs IME (such as Folder), but then that means
-        // Taskbar will be below IME and thus users can't click the back button.
-        return false;
-    }
-
-    @Override
     public View.OnClickListener getItemOnClickListener() {
         return this::onTaskbarIconClicked;
     }
@@ -505,6 +505,31 @@
         return mTaskbarHeightForIme;
     }
 
+    /**
+     * Either adds or removes {@link WindowManager.LayoutParams#FLAG_NOT_FOCUSABLE} on the taskbar
+     * window. If we're now focusable, also move nav buttons to a separate window above IME.
+     */
+    public void setTaskbarWindowFocusableForIme(boolean focusable) {
+        if (focusable) {
+            mWindowLayoutParams.flags &= ~FLAG_NOT_FOCUSABLE;
+            mControllers.navbarButtonsViewController.moveNavButtonsToNewWindow();
+        } else {
+            mWindowLayoutParams.flags |= FLAG_NOT_FOCUSABLE;
+            mControllers.navbarButtonsViewController.moveNavButtonsBackToTaskbarWindow();
+        }
+        mWindowManager.updateViewLayout(mDragLayer, mWindowLayoutParams);
+    }
+
+    /** Adds the given view to WindowManager with the provided LayoutParams (creates new window). */
+    public void addWindowView(View view, WindowManager.LayoutParams windowLayoutParams) {
+        mWindowManager.addView(view, windowLayoutParams);
+    }
+
+    /** Removes the given view from WindowManager. See {@link #addWindowView}. */
+    public void removeWindowView(View view) {
+        mWindowManager.removeViewImmediate(view);
+    }
+
     protected void onTaskbarIconClicked(View view) {
         Object tag = view.getTag();
         if (tag instanceof Task) {
@@ -514,6 +539,17 @@
         } else if (tag instanceof FolderInfo) {
             FolderIcon folderIcon = (FolderIcon) view;
             Folder folder = folderIcon.getFolder();
+
+            folder.setOnFolderStateChangedListener(newState -> {
+                if (newState == Folder.STATE_OPEN) {
+                    setTaskbarWindowFocusableForIme(true);
+                } else if (newState == Folder.STATE_CLOSED) {
+                    // Defer by a frame to ensure we're no longer fullscreen and thus won't jump.
+                    getDragLayer().post(() -> setTaskbarWindowFocusableForIme(false));
+                    folder.setOnFolderStateChangedListener(null);
+                }
+            });
+
             setTaskbarWindowFullscreen(true);
 
             getDragLayer().post(() -> {
diff --git a/quickstep/src/com/android/launcher3/taskbar/TaskbarDragLayer.java b/quickstep/src/com/android/launcher3/taskbar/TaskbarDragLayer.java
index b42a60c..df004ef 100644
--- a/quickstep/src/com/android/launcher3/taskbar/TaskbarDragLayer.java
+++ b/quickstep/src/com/android/launcher3/taskbar/TaskbarDragLayer.java
@@ -15,17 +15,22 @@
  */
 package com.android.launcher3.taskbar;
 
+import static android.view.KeyEvent.ACTION_UP;
+import static android.view.KeyEvent.KEYCODE_BACK;
+
 import android.content.Context;
 import android.graphics.Canvas;
 import android.graphics.Paint;
 import android.graphics.Path;
 import android.util.AttributeSet;
+import android.view.KeyEvent;
 import android.view.MotionEvent;
 import android.view.View;
 
 import androidx.annotation.NonNull;
 import androidx.annotation.Nullable;
 
+import com.android.launcher3.AbstractFloatingView;
 import com.android.launcher3.R;
 import com.android.launcher3.testing.TestLogging;
 import com.android.launcher3.testing.TestProtocol;
@@ -187,4 +192,17 @@
         TestLogging.recordMotionEvent(TestProtocol.SEQUENCE_MAIN, "Touch event", ev);
         return super.dispatchTouchEvent(ev);
     }
+
+    /** Called while Taskbar window is focusable, e.g. when pressing back while a folder is open */
+    @Override
+    public boolean dispatchKeyEvent(KeyEvent event) {
+        if (event.getAction() == ACTION_UP && event.getKeyCode() == KEYCODE_BACK) {
+            AbstractFloatingView topView = AbstractFloatingView.getTopOpenView(mActivity);
+            if (topView != null && topView.onBackPressed()) {
+                // Handled by the floating view.
+                return true;
+            }
+        }
+        return super.dispatchKeyEvent(event);
+    }
 }
diff --git a/src/com/android/launcher3/Utilities.java b/src/com/android/launcher3/Utilities.java
index b062b91..225460d 100644
--- a/src/com/android/launcher3/Utilities.java
+++ b/src/com/android/launcher3/Utilities.java
@@ -229,7 +229,7 @@
             offsetPoints(coord, v.getLeft(), v.getTop());
             scale *= v.getScaleX();
 
-            v = (View) v.getParent();
+            v = v.getParent() instanceof View ? (View) v.getParent() : null;
         }
         return scale;
     }
diff --git a/src/com/android/launcher3/folder/Folder.java b/src/com/android/launcher3/folder/Folder.java
index daef682..1e6342c 100644
--- a/src/com/android/launcher3/folder/Folder.java
+++ b/src/com/android/launcher3/folder/Folder.java
@@ -57,6 +57,7 @@
 import android.view.inputmethod.EditorInfo;
 import android.widget.TextView;
 
+import androidx.annotation.IntDef;
 import androidx.annotation.Nullable;
 import androidx.core.content.res.ResourcesCompat;
 
@@ -101,6 +102,8 @@
 import com.android.launcher3.views.ClipPathView;
 import com.android.launcher3.widget.PendingAddShortcutInfo;
 
+import java.lang.annotation.Retention;
+import java.lang.annotation.RetentionPolicy;
 import java.util.ArrayList;
 import java.util.Collections;
 import java.util.Comparator;
@@ -130,10 +133,13 @@
      */
     private static final int MIN_CONTENT_DIMEN = 5;
 
-    static final int STATE_NONE = -1;
-    static final int STATE_SMALL = 0;
-    static final int STATE_ANIMATING = 1;
-    static final int STATE_OPEN = 2;
+    public static final int STATE_CLOSED = 0;
+    public static final int STATE_ANIMATING = 1;
+    public static final int STATE_OPEN = 2;
+
+    @Retention(RetentionPolicy.SOURCE)
+    @IntDef({STATE_CLOSED, STATE_ANIMATING, STATE_OPEN})
+    public @interface FolderState {}
 
     /**
      * Time for which the scroll hint is shown before automatically changing page.
@@ -198,13 +204,12 @@
 
     @ViewDebug.ExportedProperty(category = "launcher",
             mapping = {
-                    @ViewDebug.IntToString(from = STATE_NONE, to = "STATE_NONE"),
-                    @ViewDebug.IntToString(from = STATE_SMALL, to = "STATE_SMALL"),
+                    @ViewDebug.IntToString(from = STATE_CLOSED, to = "STATE_CLOSED"),
                     @ViewDebug.IntToString(from = STATE_ANIMATING, to = "STATE_ANIMATING"),
                     @ViewDebug.IntToString(from = STATE_OPEN, to = "STATE_OPEN"),
             })
-    @Thunk
-    int mState = STATE_NONE;
+    private int mState = STATE_CLOSED;
+    private OnFolderStateChangedListener mOnFolderStateChangedListener;
     @ViewDebug.ExportedProperty(category = "launcher")
     private boolean mRearrangeOnClose = false;
     boolean mItemsInvalidated = false;
@@ -277,19 +282,15 @@
         mPageIndicator = findViewById(R.id.folder_page_indicator);
         mFolderName = findViewById(R.id.folder_name);
         mFolderName.setTextSize(TypedValue.COMPLEX_UNIT_PX, dp.folderLabelTextSizePx);
-        if (mActivityContext.supportsIme()) {
-            mFolderName.setOnBackKeyListener(this);
-            mFolderName.setOnFocusChangeListener(this);
-            mFolderName.setOnEditorActionListener(this);
-            mFolderName.setSelectAllOnFocus(true);
-            mFolderName.setInputType(mFolderName.getInputType()
-                    & ~InputType.TYPE_TEXT_FLAG_AUTO_CORRECT
-                    | InputType.TYPE_TEXT_FLAG_NO_SUGGESTIONS
-                    | InputType.TYPE_TEXT_FLAG_CAP_WORDS);
-            mFolderName.forceDisableSuggestions(true);
-        } else {
-            mFolderName.setEnabled(false);
-        }
+        mFolderName.setOnBackKeyListener(this);
+        mFolderName.setOnFocusChangeListener(this);
+        mFolderName.setOnEditorActionListener(this);
+        mFolderName.setSelectAllOnFocus(true);
+        mFolderName.setInputType(mFolderName.getInputType()
+                & ~InputType.TYPE_TEXT_FLAG_AUTO_CORRECT
+                | InputType.TYPE_TEXT_FLAG_NO_SUGGESTIONS
+                | InputType.TYPE_TEXT_FLAG_CAP_WORDS);
+        mFolderName.forceDisableSuggestions(true);
 
         mFooter = findViewById(R.id.folder_footer);
         mFooterHeight = getResources().getDimensionPixelSize(R.dimen.folder_label_height);
@@ -561,7 +562,7 @@
         a.addListener(new AnimatorListenerAdapter() {
             @Override
             public void onAnimationStart(Animator animation) {
-                mState = STATE_ANIMATING;
+                setState(STATE_ANIMATING);
                 mCurrentAnimator = a;
             }
 
@@ -686,7 +687,7 @@
 
             @Override
             public void onAnimationEnd(Animator animation) {
-                mState = STATE_OPEN;
+                setState(STATE_OPEN);
                 announceAccessibilityChanges();
                 AccessibilityManagerCompat.sendFolderOpenedEventToTest(getContext());
 
@@ -862,7 +863,7 @@
         }
         mSuppressFolderDeletion = false;
         clearDragInfo();
-        mState = STATE_SMALL;
+        setState(STATE_CLOSED);
         mContent.setCurrentPage(0);
     }
 
@@ -1655,4 +1656,21 @@
 
         return windowBottomPx - folderBottomPx;
     }
+
+    private void setState(@FolderState int newState) {
+        mState = newState;
+        if (mOnFolderStateChangedListener != null) {
+            mOnFolderStateChangedListener.onFolderStateChanged(mState);
+        }
+    }
+
+    public void setOnFolderStateChangedListener(@Nullable OnFolderStateChangedListener listener) {
+        mOnFolderStateChangedListener = listener;
+    }
+
+    /** Listener that can be registered via {@link Folder#setOnFolderStateChangedListener} */
+    public interface OnFolderStateChangedListener {
+        /** See {@link Folder.FolderState} */
+        void onFolderStateChanged(@FolderState int newState);
+    }
 }
diff --git a/src/com/android/launcher3/util/UiThreadHelper.java b/src/com/android/launcher3/util/UiThreadHelper.java
index ac5368c..a1f31fe 100644
--- a/src/com/android/launcher3/util/UiThreadHelper.java
+++ b/src/com/android/launcher3/util/UiThreadHelper.java
@@ -28,7 +28,6 @@
 import android.view.View;
 import android.view.inputmethod.InputMethodManager;
 
-import com.android.launcher3.BaseActivity;
 import com.android.launcher3.views.ActivityContext;
 
 /**
@@ -56,7 +55,7 @@
                 STATS_LOGGER_KEY,
                 Message.obtain(
                         HANDLER.get(root.getContext()),
-                        () -> BaseActivity.fromContext(root.getContext())
+                        () -> ActivityContext.lookupContext(root.getContext())
                                 .getStatsLogManager()
                                 .logger()
                                 .log(LAUNCHER_ALLAPPS_KEYBOARD_CLOSED)
diff --git a/src/com/android/launcher3/views/ActivityContext.java b/src/com/android/launcher3/views/ActivityContext.java
index e09eff6..c0f6316 100644
--- a/src/com/android/launcher3/views/ActivityContext.java
+++ b/src/com/android/launcher3/views/ActivityContext.java
@@ -125,13 +125,6 @@
     }
 
     /**
-     * Returns whether we can show the IME for elements hosted by this ActivityContext.
-     */
-    default boolean supportsIme() {
-        return true;
-    }
-
-    /**
      * Called just before logging the given item.
      */
     default void applyOverwritesToLogItem(LauncherAtom.ItemInfo.Builder itemInfoBuilder) { }