diff --git a/quickstep/recents_ui_overrides/src/com/android/launcher3/appprediction/AppsDividerView.java b/quickstep/recents_ui_overrides/src/com/android/launcher3/appprediction/AppsDividerView.java
index 914d9e9..7dc7bfc 100644
--- a/quickstep/recents_ui_overrides/src/com/android/launcher3/appprediction/AppsDividerView.java
+++ b/quickstep/recents_ui_overrides/src/com/android/launcher3/appprediction/AppsDividerView.java
@@ -1,4 +1,4 @@
-/**
+/*
  * Copyright (C) 2019 The Android Open Source Project
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
@@ -42,6 +42,7 @@
 import com.android.launcher3.allapps.FloatingHeaderRow;
 import com.android.launcher3.allapps.FloatingHeaderView;
 import com.android.launcher3.anim.PropertySetter;
+import com.android.launcher3.config.FeatureFlags;
 import com.android.launcher3.statemanager.StateManager.StateListener;
 import com.android.launcher3.util.Themes;
 
@@ -90,7 +91,8 @@
         mLauncher = Launcher.getLauncher(context);
 
         boolean isMainColorDark = Themes.getAttrBoolean(context, R.attr.isMainColorDark);
-        mPaint.setStrokeWidth(getResources().getDimensionPixelSize(R.dimen.all_apps_divider_height));
+        mPaint.setStrokeWidth(
+                getResources().getDimensionPixelSize(R.dimen.all_apps_divider_height));
 
         mStrokeColor = ContextCompat.getColor(context, isMainColorDark
                 ? R.color.all_apps_prediction_row_separator_dark
@@ -134,7 +136,7 @@
                 if (row == this) {
                     break;
                 } else if (row.shouldDraw()) {
-                    sectionCount ++;
+                    sectionCount++;
                 }
             }
 
@@ -181,6 +183,11 @@
     }
 
     private void updateViewVisibility() {
+        // hide divider since we have item decoration for prediction row
+        if (FeatureFlags.ENABLE_DEVICE_SEARCH.get()) {
+            setVisibility(GONE);
+            return;
+        }
         setVisibility(mDividerType == DividerType.NONE
                 ? GONE
                 : (mIsScrolledOut ? INVISIBLE : VISIBLE));
diff --git a/quickstep/recents_ui_overrides/src/com/android/launcher3/appprediction/PredictionRowView.java b/quickstep/recents_ui_overrides/src/com/android/launcher3/appprediction/PredictionRowView.java
index 55384af..8a810e3 100644
--- a/quickstep/recents_ui_overrides/src/com/android/launcher3/appprediction/PredictionRowView.java
+++ b/quickstep/recents_ui_overrides/src/com/android/launcher3/appprediction/PredictionRowView.java
@@ -45,10 +45,12 @@
 import com.android.launcher3.LauncherAppState;
 import com.android.launcher3.LauncherState;
 import com.android.launcher3.R;
+import com.android.launcher3.allapps.AllAppsSectionDecorator;
 import com.android.launcher3.allapps.FloatingHeaderRow;
 import com.android.launcher3.allapps.FloatingHeaderView;
 import com.android.launcher3.anim.AlphaUpdateListener;
 import com.android.launcher3.anim.PropertySetter;
+import com.android.launcher3.config.FeatureFlags;
 import com.android.launcher3.keyboard.FocusIndicatorHelper;
 import com.android.launcher3.keyboard.FocusIndicatorHelper.SimpleFocusIndicatorHelper;
 import com.android.launcher3.logging.StatsLogUtils.LogContainerProvider;
@@ -110,6 +112,8 @@
 
     private boolean mPredictionsEnabled = false;
 
+    AllAppsSectionDecorator.SectionDecorationHandler mDecorationHandler;
+
     public PredictionRowView(@NonNull Context context) {
         this(context, null);
     }
@@ -128,6 +132,11 @@
         mIconFullTextAlpha = Color.alpha(mIconTextColor);
         mIconCurrentTextAlpha = mIconFullTextAlpha;
 
+        if (FeatureFlags.ENABLE_DEVICE_SEARCH.get()) {
+            mDecorationHandler = new AllAppsSectionDecorator.SectionDecorationHandler(getContext(),
+                    false);
+        }
+
         updateVisibility();
     }
 
@@ -153,6 +162,14 @@
 
     @Override
     protected void dispatchDraw(Canvas canvas) {
+        if (mDecorationHandler != null) {
+            mDecorationHandler.reset();
+            int childrenCount = getChildCount();
+            for (int i = 0; i < childrenCount; i++) {
+                mDecorationHandler.extendBounds(getChildAt(i));
+            }
+            mDecorationHandler.onDraw(canvas);
+        }
         mFocusHelper.draw(canvas);
         super.dispatchDraw(canvas);
     }
diff --git a/res/layout/search_section_title.xml b/res/layout/search_section_title.xml
index 9ab27c1..c39a641 100644
--- a/res/layout/search_section_title.xml
+++ b/res/layout/search_section_title.xml
@@ -19,7 +19,5 @@
           android:fontFamily="@style/TextHeadline"
           android:layout_width="wrap_content"
           android:textColor="?android:attr/textColorPrimary"
-          android:layout_marginLeft="16dp"
-          android:layout_marginRight="16dp"
-          android:paddingTop="8dp"
+          android:padding="4dp"
           android:layout_height="wrap_content"/>
\ No newline at end of file
diff --git a/res/values/colors.xml b/res/values/colors.xml
index f56fbaa..ad607a3 100644
--- a/res/values/colors.xml
+++ b/res/values/colors.xml
@@ -35,6 +35,10 @@
 
     <color name="icon_background">#E0E0E0</color> <!-- Gray 300 -->
 
+    <color name="all_apps_bg_hand_fill">#E5E5E5</color>
+    <color name="all_apps_bg_hand_fill_dark">#9AA0A6</color>
+    <color name="all_apps_section_fill">#327d7d7d</color>
+
     <color name="gesture_tutorial_ripple_color">#A0C2F9</color> <!-- Light Blue -->
     <color name="gesture_tutorial_fake_task_view_color">#6DA1FF</color> <!-- Light Blue -->
     <color name="gesture_tutorial_action_button_label_color">#FFFFFFFF</color>
diff --git a/src/com/android/launcher3/allapps/AllAppsContainerView.java b/src/com/android/launcher3/allapps/AllAppsContainerView.java
index 77b8a32..2d711e6 100644
--- a/src/com/android/launcher3/allapps/AllAppsContainerView.java
+++ b/src/com/android/launcher3/allapps/AllAppsContainerView.java
@@ -55,6 +55,7 @@
 import com.android.launcher3.InsettableFrameLayout;
 import com.android.launcher3.R;
 import com.android.launcher3.Utilities;
+import com.android.launcher3.config.FeatureFlags;
 import com.android.launcher3.keyboard.FocusedItemDecorator;
 import com.android.launcher3.model.data.AppInfo;
 import com.android.launcher3.model.data.ItemInfo;
@@ -486,7 +487,7 @@
         if (mWorkModeSwitch != null) {
             mWorkModeSwitch.setWorkTabVisible(pos == AdapterHolder.WORK
                     && mAllAppsStore.hasModelFlag(
-                            FLAG_HAS_SHORTCUT_PERMISSION | FLAG_QUIET_MODE_CHANGE_PERMISSION));
+                    FLAG_HAS_SHORTCUT_PERMISSION | FLAG_QUIET_MODE_CHANGE_PERMISSION));
         }
     }
 
@@ -538,6 +539,10 @@
         int padding = mHeader.getMaxTranslation();
         for (int i = 0; i < mAH.length; i++) {
             mAH[i].padding.top = padding;
+            if (FeatureFlags.ENABLE_DEVICE_SEARCH.get() && mUsingTabs) {
+                //add extra space between tabs and recycler view
+                mAH[i].padding.top += mLauncher.getDeviceProfile().edgeMarginPx;
+            }
             mAH[i].applyPadding();
         }
     }
@@ -652,6 +657,9 @@
             applyVerticalFadingEdgeEnabled(verticalFadingEdge);
             applyPadding();
             setupOverlay();
+            if (FeatureFlags.ENABLE_DEVICE_SEARCH.get()) {
+                recyclerView.addItemDecoration(new AllAppsSectionDecorator(getApps()));
+            }
         }
 
         void setupOverlay() {
diff --git a/src/com/android/launcher3/allapps/AllAppsSectionDecorator.java b/src/com/android/launcher3/allapps/AllAppsSectionDecorator.java
new file mode 100644
index 0000000..ac55072
--- /dev/null
+++ b/src/com/android/launcher3/allapps/AllAppsSectionDecorator.java
@@ -0,0 +1,140 @@
+/*
+ * Copyright (C) 2020 The Android Open Source Project
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package com.android.launcher3.allapps;
+
+import android.content.Context;
+import android.graphics.Canvas;
+import android.graphics.Paint;
+import android.graphics.RectF;
+import android.view.View;
+
+import androidx.recyclerview.widget.RecyclerView;
+
+import com.android.launcher3.R;
+import com.android.launcher3.allapps.search.SearchSectionInfo;
+import com.android.launcher3.util.Themes;
+
+import java.util.List;
+
+/**
+ * ItemDecoration class that groups items in {@link AllAppsRecyclerView}
+ */
+public class AllAppsSectionDecorator extends RecyclerView.ItemDecoration {
+
+    private final AlphabeticalAppsList mApps;
+
+    AllAppsSectionDecorator(AlphabeticalAppsList appsList) {
+        mApps = appsList;
+    }
+
+    @Override
+    public void onDraw(Canvas c, RecyclerView parent, RecyclerView.State state) {
+        // Iterate through views in recylerview and draw bounds around views in the same section.
+        // Since views in the same section will follow each other, we can skip to a last view in
+        // a section to get the bounds of the section without having to iterate on evert item.
+        int itemCount = parent.getChildCount();
+        List<AlphabeticalAppsList.AdapterItem> adapterItems = mApps.getAdapterItems();
+        SectionDecorationHandler lastDecorationHandler = null;
+        int i = 0;
+        while (i < itemCount) {
+            View view = parent.getChildAt(i);
+            int position = parent.getChildAdapterPosition(view);
+            AlphabeticalAppsList.AdapterItem adapterItem = adapterItems.get(position);
+            if (adapterItem.searchSectionInfo != null) {
+                SearchSectionInfo sectionInfo = adapterItem.searchSectionInfo;
+                int endIndex = Math.min(i + sectionInfo.getPosEnd() - position, itemCount - 1);
+                SectionDecorationHandler decorationHandler = sectionInfo.getDecorationHandler();
+                if (decorationHandler != lastDecorationHandler && lastDecorationHandler != null) {
+                    drawDecoration(c, lastDecorationHandler, parent);
+                }
+                lastDecorationHandler = decorationHandler;
+                if (decorationHandler != null) {
+                    decorationHandler.extendBounds(view);
+                }
+
+                if (endIndex > i) {
+                    i = endIndex;
+                    continue;
+                }
+
+            }
+            i++;
+        }
+        if (lastDecorationHandler != null) {
+            drawDecoration(c, lastDecorationHandler, parent);
+        }
+    }
+
+    private void drawDecoration(Canvas c, SectionDecorationHandler decorationHandler, View parent) {
+        if (decorationHandler == null) return;
+        if (decorationHandler.mIsFullWidth) {
+            decorationHandler.mBounds.left = parent.getPaddingLeft();
+            decorationHandler.mBounds.right = parent.getWidth() - parent.getPaddingRight();
+        }
+        decorationHandler.onDraw(c);
+        decorationHandler.reset();
+    }
+
+    /**
+     * Handles grouping and drawing of items in the same all apps sections.
+     */
+    public static class SectionDecorationHandler {
+        protected RectF mBounds = new RectF();
+        private final boolean mIsFullWidth;
+        private final float mRadius;
+        private final int mFillcolor;
+        Paint mPaint = new Paint(Paint.ANTI_ALIAS_FLAG);
+
+
+        public SectionDecorationHandler(Context context, boolean isFullWidth) {
+            mIsFullWidth = isFullWidth;
+            mFillcolor = context.getColor(R.color.all_apps_section_fill);
+            mRadius = Themes.getDialogCornerRadius(context);
+        }
+
+        /**
+         * Extends current bounds to include view
+         */
+        public void extendBounds(View view) {
+            if (mBounds.isEmpty()) {
+                mBounds.set(view.getLeft(), view.getTop(), view.getRight(), view.getBottom());
+            } else {
+                mBounds.set(
+                        Math.min(mBounds.left, view.getLeft()),
+                        Math.min(mBounds.top, view.getTop()),
+                        Math.max(mBounds.right, view.getRight()),
+                        Math.max(mBounds.bottom, view.getBottom())
+                );
+            }
+        }
+
+        /**
+         * Draw bounds onto canvas
+         */
+        public void onDraw(Canvas canvas) {
+            mPaint.setColor(mFillcolor);
+            canvas.drawRoundRect(mBounds, mRadius, mRadius, mPaint);
+        }
+
+        /**
+         * Reset view bounds to empty
+         */
+        public void reset() {
+            mBounds.setEmpty();
+        }
+    }
+
+}
diff --git a/src/com/android/launcher3/allapps/AlphabeticalAppsList.java b/src/com/android/launcher3/allapps/AlphabeticalAppsList.java
index 266bfa2..5d9c554 100644
--- a/src/com/android/launcher3/allapps/AlphabeticalAppsList.java
+++ b/src/com/android/launcher3/allapps/AlphabeticalAppsList.java
@@ -31,7 +31,6 @@
 import java.util.Locale;
 import java.util.Map;
 import java.util.TreeMap;
-import java.util.stream.Collectors;
 
 /**
  * The alphabetically sorted list of applications.
@@ -311,9 +310,15 @@
         mFastScrollerSections.clear();
         mAdapterItems.clear();
 
+        SearchSectionInfo appSection = new SearchSectionInfo();
+        appSection.setDecorationHandler(
+                new AllAppsSectionDecorator.SectionDecorationHandler(mLauncher, true));
+
         // Recreate the filtered and sectioned apps (for convenience for the grid layout) from the
         // ordered set of sections
+
         if (!hasFilter()) {
+            appSection.setPosStart(position);
             for (AppInfo info : mApps) {
                 String sectionName = info.sectionName;
 
@@ -329,14 +334,31 @@
                 if (lastFastScrollerSectionInfo.fastScrollToItem == null) {
                     lastFastScrollerSectionInfo.fastScrollToItem = appItem;
                 }
+                if (FeatureFlags.ENABLE_DEVICE_SEARCH.get()) {
+                    appItem.searchSectionInfo = appSection;
+                }
                 mAdapterItems.add(appItem);
                 mFilteredApps.add(info);
             }
+            appSection.setPosEnd(mApps.isEmpty() ? appSection.getPosStart() : position - 1);
         } else {
-            mAdapterItems.addAll(mSearchResults);
-            List<AppInfo> appInfos = mSearchResults.stream().filter(
-                    i -> AllAppsGridAdapter.isIconViewType(i.viewType)).map(i -> i.appInfo).collect(
-                    Collectors.toList());
+            List<AppInfo> appInfos = new ArrayList<>();
+            SearchSectionInfo lastSection = null;
+            for (int i = 0; i < mSearchResults.size(); i++) {
+                AdapterItem adapterItem = mSearchResults.get(i);
+                adapterItem.position = i;
+                mAdapterItems.add(adapterItem);
+                if (adapterItem.searchSectionInfo != lastSection) {
+                    adapterItem.searchSectionInfo.setPosStart(i);
+                    if (lastSection != null) {
+                        lastSection.setPosEnd(i - 1);
+                    }
+                    lastSection = adapterItem.searchSectionInfo;
+                }
+                if (AllAppsGridAdapter.isIconViewType(adapterItem.viewType)) {
+                    appInfos.add(adapterItem.appInfo);
+                }
+            }
             mFilteredApps.addAll(appInfos);
             if (!FeatureFlags.ENABLE_DEVICE_SEARCH.get()) {
                 // Append the search market item
diff --git a/src/com/android/launcher3/allapps/search/AppsSearchPipeline.java b/src/com/android/launcher3/allapps/search/AppsSearchPipeline.java
index 5beb956..fb78651 100644
--- a/src/com/android/launcher3/allapps/search/AppsSearchPipeline.java
+++ b/src/com/android/launcher3/allapps/search/AppsSearchPipeline.java
@@ -19,6 +19,7 @@
 
 import com.android.launcher3.LauncherAppState;
 import com.android.launcher3.R;
+import com.android.launcher3.allapps.AllAppsSectionDecorator.SectionDecorationHandler;
 import com.android.launcher3.allapps.AlphabeticalAppsList.AdapterItem;
 import com.android.launcher3.model.AllAppsList;
 import com.android.launcher3.model.BaseModelUpdateTask;
@@ -36,12 +37,21 @@
 
     private static final int MAX_RESULTS_COUNT = 5;
 
-    private final SearchSectionInfo mSearchSectionInfo;
+    private static final int SECTION_TYPE_HEADER = 0;
+    private static final int SECTION_TYPE_APPS = 1;
+
+    private final SearchSectionInfo[] mSearchSectionInfos;
     private final LauncherAppState mLauncherAppState;
 
+
     public AppsSearchPipeline(LauncherAppState launcherAppState) {
         mLauncherAppState = launcherAppState;
-        mSearchSectionInfo = new SearchSectionInfo(R.string.search_corpus_apps);
+        mSearchSectionInfos = new SearchSectionInfo[]{
+                new SearchSectionInfo(R.string.search_corpus_apps),
+                new SearchSectionInfo()
+        };
+        mSearchSectionInfos[SECTION_TYPE_APPS].setDecorationHandler(
+                new SectionDecorationHandler(launcherAppState.getContext(), true));
     }
 
     @Override
@@ -78,12 +88,12 @@
         if (matchingApps.isEmpty()) {
             return items;
         }
-        items.add(AdapterItem.asSearchTitle(mSearchSectionInfo, 0));
+        items.add(AdapterItem.asSearchTitle(mSearchSectionInfos[SECTION_TYPE_HEADER], 0));
         int existingItems = items.size();
         int searchResultsCount = Math.min(matchingApps.size(), MAX_RESULTS_COUNT);
         for (int i = 0; i < searchResultsCount; i++) {
             AdapterItem appItem = AdapterItem.asApp(i + existingItems, "", matchingApps.get(i), i);
-            appItem.searchSectionInfo = mSearchSectionInfo;
+            appItem.searchSectionInfo = mSearchSectionInfos[SECTION_TYPE_APPS];
             items.add(appItem);
         }
 
diff --git a/src/com/android/launcher3/allapps/search/SearchSectionInfo.java b/src/com/android/launcher3/allapps/search/SearchSectionInfo.java
index 880b246..dee0ffd 100644
--- a/src/com/android/launcher3/allapps/search/SearchSectionInfo.java
+++ b/src/com/android/launcher3/allapps/search/SearchSectionInfo.java
@@ -17,20 +17,59 @@
 
 import android.content.Context;
 
+import com.android.launcher3.allapps.AllAppsSectionDecorator.SectionDecorationHandler;
+
 /**
  * Info class for a search section
  */
 public class SearchSectionInfo {
+
     private final int mTitleResId;
+    private SectionDecorationHandler mDecorationHandler;
+
+    public int getPosStart() {
+        return mPosStart;
+    }
+
+    public void setPosStart(int posStart) {
+        mPosStart = posStart;
+    }
+
+    public int getPosEnd() {
+        return mPosEnd;
+    }
+
+    public void setPosEnd(int posEnd) {
+        mPosEnd = posEnd;
+    }
+
+    private int mPosStart;
+    private int mPosEnd;
+
+    public SearchSectionInfo() {
+        this(-1);
+    }
 
     public SearchSectionInfo(int titleResId) {
         mTitleResId = titleResId;
     }
 
+    public void setDecorationHandler(SectionDecorationHandler sectionDecorationHandler) {
+        mDecorationHandler = sectionDecorationHandler;
+    }
+
+
+    public SectionDecorationHandler getDecorationHandler() {
+        return mDecorationHandler;
+    }
+
     /**
      * Returns the section's title
      */
     public String getTitle(Context context) {
+        if (mTitleResId == -1) {
+            return "";
+        }
         return context.getString(mTitleResId);
     }
 }