diff --git a/quickstep/AndroidManifest.xml b/quickstep/AndroidManifest.xml
index 9c14b85..7431551 100644
--- a/quickstep/AndroidManifest.xml
+++ b/quickstep/AndroidManifest.xml
@@ -41,7 +41,7 @@
     <uses-permission android:name="android.permission.MANAGE_ACCESSIBILITY"/>
 
     <uses-permission android:name="${packageName}.permission.HOTSEAT_EDU" />
-    <uses-permission android:name="android.permission.SYSTEM_ALERT_WINDOW" />
+    <uses-permission android:name="android.permission.SYSTEM_APPLICATION_OVERLAY" />
 
     <application android:backupAgent="com.android.launcher3.LauncherBackupAgent"
          android:fullBackupOnly="true"
diff --git a/quickstep/src/com/android/launcher3/taskbar/TaskbarContainerView.java b/quickstep/src/com/android/launcher3/taskbar/TaskbarContainerView.java
index 0093e66..3b361c4 100644
--- a/quickstep/src/com/android/launcher3/taskbar/TaskbarContainerView.java
+++ b/quickstep/src/com/android/launcher3/taskbar/TaskbarContainerView.java
@@ -15,6 +15,9 @@
  */
 package com.android.launcher3.taskbar;
 
+import static com.android.systemui.shared.system.ViewTreeObserverWrapper.InsetsInfo.TOUCHABLE_INSETS_FRAME;
+import static com.android.systemui.shared.system.ViewTreeObserverWrapper.InsetsInfo.TOUCHABLE_INSETS_REGION;
+
 import android.content.Context;
 import android.util.AttributeSet;
 import android.widget.FrameLayout;
@@ -22,10 +25,18 @@
 import androidx.annotation.NonNull;
 import androidx.annotation.Nullable;
 
+import com.android.launcher3.anim.AlphaUpdateListener;
+import com.android.systemui.shared.system.ViewTreeObserverWrapper;
+
 /**
  * Top-level ViewGroup that hosts the TaskbarView as well as Views created by it such as Folder.
  */
 public class TaskbarContainerView extends FrameLayout {
+
+    // Initialized in init.
+    private TaskbarView mTaskbarView;
+    private ViewTreeObserverWrapper.OnComputeInsetsListener mTaskbarInsetsComputer;
+
     public TaskbarContainerView(@NonNull Context context) {
         this(context, null);
     }
@@ -43,4 +54,41 @@
             int defStyleAttr, int defStyleRes) {
         super(context, attrs, defStyleAttr, defStyleRes);
     }
+
+    protected void init(TaskbarView taskbarView) {
+        mTaskbarView = taskbarView;
+        mTaskbarInsetsComputer = createTaskbarInsetsComputer();
+    }
+
+    private ViewTreeObserverWrapper.OnComputeInsetsListener createTaskbarInsetsComputer() {
+        return insetsInfo -> {
+            if (getAlpha() < AlphaUpdateListener.ALPHA_CUTOFF_THRESHOLD) {
+                // We're invisible, let touches pass through us.
+                insetsInfo.touchableRegion.setEmpty();
+                insetsInfo.setTouchableInsets(TOUCHABLE_INSETS_REGION);
+            } else {
+                 // We're visible again, accept touches anywhere in our bounds.
+                insetsInfo.setTouchableInsets(TOUCHABLE_INSETS_FRAME);
+            }
+        };
+    }
+
+    protected void cleanup() {
+        ViewTreeObserverWrapper.removeOnComputeInsetsListener(mTaskbarInsetsComputer);
+    }
+
+    @Override
+    protected void onAttachedToWindow() {
+        super.onAttachedToWindow();
+
+        ViewTreeObserverWrapper.addOnComputeInsetsListener(getViewTreeObserver(),
+                mTaskbarInsetsComputer);
+    }
+
+    @Override
+    protected void onDetachedFromWindow() {
+        super.onDetachedFromWindow();
+
+        cleanup();
+    }
 }
diff --git a/quickstep/src/com/android/launcher3/taskbar/TaskbarController.java b/quickstep/src/com/android/launcher3/taskbar/TaskbarController.java
index 6a74aac..260428d 100644
--- a/quickstep/src/com/android/launcher3/taskbar/TaskbarController.java
+++ b/quickstep/src/com/android/launcher3/taskbar/TaskbarController.java
@@ -38,7 +38,6 @@
 import com.android.launcher3.LauncherState;
 import com.android.launcher3.QuickstepAppTransitionManagerImpl;
 import com.android.launcher3.R;
-import com.android.launcher3.anim.AlphaUpdateListener;
 import com.android.launcher3.anim.PendingAnimation;
 import com.android.launcher3.model.data.ItemInfo;
 import com.android.launcher3.states.StateAnimationConfig;
@@ -107,7 +106,6 @@
             @Override
             public void updateTaskbarVisibilityAlpha(float alpha) {
                 mTaskbarContainerView.setAlpha(alpha);
-                AlphaUpdateListener.updateVisibility(mTaskbarContainerView);
             }
         };
     }
@@ -167,6 +165,7 @@
     public void init() {
         mTaskbarView.init(mHotseatController.getNumHotseatIcons(),
                 mRecentsController.getNumRecentIcons());
+        mTaskbarContainerView.init(mTaskbarView);
         addToWindowManager();
         mTaskbarStateHandler.setTaskbarCallbacks(createTaskbarStateHandlerCallbacks());
         mTaskbarVisibilityController.init();
@@ -188,6 +187,7 @@
      */
     public void cleanup() {
         mTaskbarView.cleanup();
+        mTaskbarContainerView.cleanup();
         removeFromWindowManager();
         mTaskbarStateHandler.setTaskbarCallbacks(null);
         mTaskbarVisibilityController.cleanup();
@@ -218,6 +218,7 @@
         mWindowLayoutParams.setFitInsetsTypes(0);
         mWindowLayoutParams.softInputMode = WindowManager.LayoutParams.SOFT_INPUT_ADJUST_NOTHING;
         mWindowLayoutParams.layoutInDisplayCutoutMode = LAYOUT_IN_DISPLAY_CUTOUT_MODE_ALWAYS;
+        mWindowLayoutParams.setSystemApplicationOverlay(true);
 
         WindowManagerWrapper wmWrapper = WindowManagerWrapper.getInstance();
         wmWrapper.setProvidesInsetsTypes(