diff --git a/services/core/java/com/android/server/wm/DisplayPolicy.java b/services/core/java/com/android/server/wm/DisplayPolicy.java
index d0457b08aa3460f27ee5d01406e10ea6a7fa988a..1108c7752777ddbbd0358d87d09ef1befa1ae989 100644
--- a/services/core/java/com/android/server/wm/DisplayPolicy.java
+++ b/services/core/java/com/android/server/wm/DisplayPolicy.java
@@ -1498,11 +1498,15 @@ public class DisplayPolicy {
                     statusBarBottom);
         }
 
-        sTmpRect.set(windowFrames.mFrame);
-        sTmpRect.intersect(displayFrames.mDisplayCutoutSafe);
-        sTmpRect.top = windowFrames.mFrame.top; // Ignore top display cutout inset
-        sTmpRect.bottom = statusBarBottom; // Use collapsed status bar size
-        contentFrame.set(sTmpRect);
+        final InsetsState state = displayFrames.mInsetsState;
+        sTmpRect.set(displayFrames.mDisplayCutoutSafe);
+        // The status bar content can extend into regular display cutout insets but not
+        // waterfall insets.
+        sTmpRect.top = Math.max(state.getDisplayCutout().getWaterfallInsets().top, 0);
+
+        contentFrame.set(windowFrames.mFrame);
+        contentFrame.intersect(sTmpRect);
+        contentFrame.bottom = statusBarBottom; // Use collapsed status bar size
     }
 
     private int layoutNavigationBar(DisplayFrames displayFrames, Rect contentFrame) {