diff --git a/libs/gui/tests/EndToEndNativeInputTest.cpp b/libs/gui/tests/EndToEndNativeInputTest.cpp
index 4a78480..ff1ba0a 100644
--- a/libs/gui/tests/EndToEndNativeInputTest.cpp
+++ b/libs/gui/tests/EndToEndNativeInputTest.cpp
@@ -391,6 +391,25 @@
     parentSurface->expectTap(1, 1);
 }
 
+// Ensure a surface whose insets are scaled, handles the touch offset correctly.
+TEST_F(InputSurfacesTest, input_respects_scaled_surface_insets) {
+    std::unique_ptr<InputSurface> bgSurface = makeSurface(100, 100);
+    std::unique_ptr<InputSurface> fgSurface = makeSurface(100, 100);
+    bgSurface->showAt(100, 100);
+
+    fgSurface->mInputInfo.surfaceInset = 5;
+    fgSurface->showAt(100, 100);
+
+    fgSurface->doTransaction([&](auto &t, auto &sc) { t.setMatrix(sc, 2.0, 0, 0, 4.0); });
+
+    // expect = touch / scale - inset
+    injectTap(112, 124);
+    fgSurface->expectTap(1, 1);
+
+    injectTap(101, 101);
+    bgSurface->expectTap(1, 1);
+}
+
 // Ensure we ignore transparent region when getting screen bounds when positioning input frame.
 TEST_F(InputSurfacesTest, input_ignores_transparent_region) {
     std::unique_ptr<InputSurface> surface = makeSurface(100, 100);
diff --git a/services/surfaceflinger/Layer.cpp b/services/surfaceflinger/Layer.cpp
index cbe8b29..379b004 100644
--- a/services/surfaceflinger/Layer.cpp
+++ b/services/surfaceflinger/Layer.cpp
@@ -2004,10 +2004,14 @@
     ui::Transform t = getTransform();
     const float xScale = t.sx();
     const float yScale = t.sy();
+    float xSurfaceInset = info.surfaceInset;
+    float ySurfaceInset = info.surfaceInset;
     if (xScale != 1.0f || yScale != 1.0f) {
         info.windowXScale *= 1.0f / xScale;
         info.windowYScale *= 1.0f / yScale;
         info.touchableRegion.scaleSelf(xScale, yScale);
+        xSurfaceInset *= xScale;
+        ySurfaceInset *= yScale;
     }
 
     // Transform layer size to screen space and inset it by surface insets.
@@ -2019,7 +2023,7 @@
         layerBounds = getCroppedBufferSize(getDrawingState());
     }
     layerBounds = t.transform(layerBounds);
-    layerBounds.inset(info.surfaceInset, info.surfaceInset, info.surfaceInset, info.surfaceInset);
+    layerBounds.inset(xSurfaceInset, ySurfaceInset, xSurfaceInset, ySurfaceInset);
 
     // Input coordinate should match the layer bounds.
     info.frameLeft = layerBounds.left;