diff --git a/service/src/com/android/server/connectivity/PermissionMonitor.java b/service/src/com/android/server/connectivity/PermissionMonitor.java
index b19348f..9bda59c 100644
--- a/service/src/com/android/server/connectivity/PermissionMonitor.java
+++ b/service/src/com/android/server/connectivity/PermissionMonitor.java
@@ -24,6 +24,7 @@
 import static android.content.pm.PackageInfo.REQUESTED_PERMISSION_GRANTED;
 import static android.content.pm.PackageManager.GET_PERMISSIONS;
 import static android.content.pm.PackageManager.MATCH_ANY_USER;
+import static android.net.ConnectivitySettingsManager.APPS_ALLOWED_ON_RESTRICTED_NETWORKS;
 import static android.net.NetworkStack.PERMISSION_MAINLINE_NETWORK_STACK;
 import static android.os.Process.INVALID_UID;
 import static android.os.Process.SYSTEM_UID;
@@ -39,6 +40,7 @@
 import android.content.pm.PackageInfo;
 import android.content.pm.PackageManager;
 import android.content.pm.PackageManager.NameNotFoundException;
+import android.database.ContentObserver;
 import android.net.ConnectivitySettingsManager;
 import android.net.INetd;
 import android.net.UidRange;
@@ -49,6 +51,7 @@
 import android.os.SystemConfigManager;
 import android.os.UserHandle;
 import android.os.UserManager;
+import android.provider.Settings;
 import android.system.OsConstants;
 import android.util.ArraySet;
 import android.util.Log;
@@ -68,7 +71,6 @@
 import java.util.Map.Entry;
 import java.util.Set;
 
-
 /**
  * A utility class to inform Netd of UID permisisons.
  * Does a mass update at boot and then monitors for app install/remove.
@@ -145,6 +147,22 @@
         public int getDeviceFirstSdkInt() {
             return Build.VERSION.DEVICE_INITIAL_SDK_INT;
         }
+
+        /**
+         * Get apps allowed to use restricted networks via ConnectivitySettingsManager.
+         */
+        public Set<String> getAppsAllowedOnRestrictedNetworks(@NonNull Context context) {
+            return ConnectivitySettingsManager.getAppsAllowedOnRestrictedNetworks(context);
+        }
+
+        /**
+         * Register ContentObserver for given Uri.
+         */
+        public void registerContentObserver(@NonNull Context context, @NonNull Uri uri,
+                boolean notifyForDescendants, @NonNull ContentObserver observer) {
+            context.getContentResolver().registerContentObserver(
+                    uri, notifyForDescendants, observer);
+        }
     }
 
     public PermissionMonitor(@NonNull final Context context, @NonNull final INetd netd) {
@@ -167,18 +185,30 @@
     public synchronized void startMonitoring() {
         log("Monitoring");
 
+        final Context userAllContext = mContext.createContextAsUser(UserHandle.ALL, 0 /* flags */);
         final IntentFilter intentFilter = new IntentFilter();
         intentFilter.addAction(Intent.ACTION_PACKAGE_ADDED);
         intentFilter.addAction(Intent.ACTION_PACKAGE_REMOVED);
         intentFilter.addDataScheme("package");
-        mContext.createContextAsUser(UserHandle.ALL, 0 /* flags */).registerReceiver(
+        userAllContext.registerReceiver(
                 mIntentReceiver, intentFilter, null /* broadcastPermission */,
                 null /* scheduler */);
 
+        // Register APPS_ALLOWED_ON_RESTRICTED_NETWORKS setting observer
+        mDeps.registerContentObserver(
+                userAllContext,
+                Settings.Secure.getUriFor(APPS_ALLOWED_ON_RESTRICTED_NETWORKS),
+                false /* notifyForDescendants */,
+                new ContentObserver(null) {
+                    @Override
+                    public void onChange(boolean selfChange) {
+                        onSettingChanged();
+                    }
+                });
+
         // Read APPS_ALLOWED_ON_RESTRICTED_NETWORKS setting and update
         // mAppsAllowedOnRestrictedNetworks.
-        updateAppsAllowedOnRestrictedNetworks(
-                ConnectivitySettingsManager.getAppsAllowedOnRestrictedNetworks(mContext));
+        updateAppsAllowedOnRestrictedNetworks(mDeps.getAppsAllowedOnRestrictedNetworks(mContext));
 
         List<PackageInfo> apps = mPackageManager.getInstalledPackages(GET_PERMISSIONS
                 | MATCH_ANY_USER);
@@ -435,6 +465,20 @@
         mAllApps.add(UserHandle.getAppId(uid));
     }
 
+    private Boolean highestUidNetworkPermission(int uid) {
+        Boolean permission = null;
+        final String[] packages = mPackageManager.getPackagesForUid(uid);
+        if (!CollectionUtils.isEmpty(packages)) {
+            for (String name : packages) {
+                permission = highestPermissionForUid(permission, name);
+                if (permission == SYSTEM) {
+                    break;
+                }
+            }
+        }
+        return permission;
+    }
+
     /**
      * Called when a package is removed.
      *
@@ -465,19 +509,14 @@
         }
 
         Map<Integer, Boolean> apps = new HashMap<>();
-        Boolean permission = null;
-        String[] packages = mPackageManager.getPackagesForUid(uid);
-        if (packages != null && packages.length > 0) {
-            for (String name : packages) {
-                permission = highestPermissionForUid(permission, name);
-                if (permission == SYSTEM) {
-                    // An app with this UID still has the SYSTEM permission.
-                    // Therefore, this UID must already have the SYSTEM permission.
-                    // Nothing to do.
-                    return;
-                }
-            }
+        final Boolean permission = highestUidNetworkPermission(uid);
+        if (permission == SYSTEM) {
+            // An app with this UID still has the SYSTEM permission.
+            // Therefore, this UID must already have the SYSTEM permission.
+            // Nothing to do.
+            return;
         }
+
         if (permission == mApps.get(uid)) {
             // The permissions of this UID have not changed. Nothing to do.
             return;
@@ -730,6 +769,38 @@
         return mVpnUidRanges.get(iface);
     }
 
+    private synchronized void onSettingChanged() {
+        // Step1. Update apps allowed to use restricted networks and compute the set of packages to
+        // update.
+        final Set<String> packagesToUpdate = new ArraySet<>(mAppsAllowedOnRestrictedNetworks);
+        updateAppsAllowedOnRestrictedNetworks(mDeps.getAppsAllowedOnRestrictedNetworks(mContext));
+        packagesToUpdate.addAll(mAppsAllowedOnRestrictedNetworks);
+
+        final Map<Integer, Boolean> updatedApps = new HashMap<>();
+        final Map<Integer, Boolean> removedApps = new HashMap<>();
+
+        // Step2. For each package to update, find out its new permission.
+        for (String app : packagesToUpdate) {
+            final PackageInfo info = getPackageInfo(app);
+            if (info == null || info.applicationInfo == null) continue;
+
+            final int uid = info.applicationInfo.uid;
+            final Boolean permission = highestUidNetworkPermission(uid);
+
+            if (null == permission) {
+                removedApps.put(uid, NETWORK); // Doesn't matter which permission is set here.
+                mApps.remove(uid);
+            } else {
+                updatedApps.put(uid, permission);
+                mApps.put(uid, permission);
+            }
+        }
+
+        // Step3. Update or revoke permission for uids with netd.
+        update(mUsers, updatedApps, true /* add */);
+        update(mUsers, removedApps, false /* add */);
+    }
+
     /** Dump info to dumpsys */
     public void dump(IndentingPrintWriter pw) {
         pw.println("Interface filtering rules:");
diff --git a/tests/unit/java/com/android/server/connectivity/PermissionMonitorTest.java b/tests/unit/java/com/android/server/connectivity/PermissionMonitorTest.java
index c797a7b..c75618f 100644
--- a/tests/unit/java/com/android/server/connectivity/PermissionMonitorTest.java
+++ b/tests/unit/java/com/android/server/connectivity/PermissionMonitorTest.java
@@ -30,6 +30,7 @@
 import static android.content.pm.PackageInfo.REQUESTED_PERMISSION_REQUIRED;
 import static android.content.pm.PackageManager.GET_PERMISSIONS;
 import static android.content.pm.PackageManager.MATCH_ANY_USER;
+import static android.net.ConnectivitySettingsManager.APPS_ALLOWED_ON_RESTRICTED_NETWORKS;
 import static android.net.NetworkStack.PERMISSION_MAINLINE_NETWORK_STACK;
 import static android.os.Process.SYSTEM_UID;
 
@@ -44,8 +45,10 @@
 import static org.junit.Assert.assertTrue;
 import static org.mockito.AdditionalMatchers.aryEq;
 import static org.mockito.ArgumentMatchers.any;
+import static org.mockito.ArgumentMatchers.anyBoolean;
 import static org.mockito.ArgumentMatchers.anyInt;
 import static org.mockito.ArgumentMatchers.anyString;
+import static org.mockito.ArgumentMatchers.argThat;
 import static org.mockito.ArgumentMatchers.eq;
 import static org.mockito.Mockito.doAnswer;
 import static org.mockito.Mockito.doReturn;
@@ -62,6 +65,7 @@
 import android.content.pm.ApplicationInfo;
 import android.content.pm.PackageInfo;
 import android.content.pm.PackageManager;
+import android.database.ContentObserver;
 import android.net.INetd;
 import android.net.UidRange;
 import android.net.Uri;
@@ -69,8 +73,6 @@
 import android.os.SystemConfigManager;
 import android.os.UserHandle;
 import android.os.UserManager;
-import android.provider.Settings;
-import android.test.mock.MockContentResolver;
 import android.util.ArraySet;
 import android.util.SparseIntArray;
 
@@ -78,9 +80,6 @@
 import androidx.test.filters.SmallTest;
 import androidx.test.runner.AndroidJUnit4;
 
-import com.android.internal.util.test.FakeSettingsProvider;
-
-import org.junit.After;
 import org.junit.Before;
 import org.junit.Test;
 import org.junit.runner.RunWith;
@@ -127,7 +126,6 @@
     @Mock private SystemConfigManager mSystemConfigManager;
 
     private PermissionMonitor mPermissionMonitor;
-    private MockContentResolver mContentResolver;
 
     @Before
     public void setUp() throws Exception {
@@ -144,11 +142,7 @@
         final Context asUserCtx = mock(Context.class, AdditionalAnswers.delegatesTo(mContext));
         doReturn(UserHandle.ALL).when(asUserCtx).getUser();
         when(mContext.createContextAsUser(eq(UserHandle.ALL), anyInt())).thenReturn(asUserCtx);
-
-        FakeSettingsProvider.clearSettingsProvider();
-        mContentResolver = new MockContentResolver();
-        mContentResolver.addProvider(Settings.AUTHORITY, new FakeSettingsProvider());
-        when(mContext.getContentResolver()).thenReturn(mContentResolver);
+        when(mDeps.getAppsAllowedOnRestrictedNetworks(any())).thenReturn(new ArraySet<>());
 
         mPermissionMonitor = spy(new PermissionMonitor(mContext, mNetdService, mDeps));
 
@@ -156,11 +150,6 @@
         mPermissionMonitor.startMonitoring();
     }
 
-    @After
-    public void tearDown() throws Exception {
-        FakeSettingsProvider.clearSettingsProvider();
-    }
-
     private boolean hasRestrictedNetworkPermission(String partition, int targetSdkVersion, int uid,
             String... permissions) {
         return hasRestrictedNetworkPermission(
@@ -911,4 +900,102 @@
         mNetdServiceMonitor.expectPermission(INetd.PERMISSION_UNINSTALLED, new int[] { MOCK_UID1 });
     }
 
-}
+    @Test
+    public void testAppsAllowedOnRestrictedNetworksChanged() throws Exception {
+        final NetdMonitor mNetdMonitor = new NetdMonitor(mNetdService);
+        final ArgumentCaptor<ContentObserver> captor =
+                ArgumentCaptor.forClass(ContentObserver.class);
+        verify(mDeps, times(1)).registerContentObserver(any(),
+                argThat(uri -> uri.getEncodedPath().contains(APPS_ALLOWED_ON_RESTRICTED_NETWORKS)),
+                anyBoolean(), captor.capture());
+        final ContentObserver contentObserver = captor.getValue();
+
+        mPermissionMonitor.onUserAdded(MOCK_USER1);
+        // Prepare PackageInfo for MOCK_PACKAGE1
+        final PackageInfo packageInfo = buildPackageInfo(
+                false /* hasSystemPermission */, MOCK_UID1, MOCK_USER1);
+        packageInfo.packageName = MOCK_PACKAGE1;
+        when(mPackageManager.getPackageInfo(eq(MOCK_PACKAGE1), anyInt())).thenReturn(packageInfo);
+        when(mPackageManager.getPackagesForUid(MOCK_UID1)).thenReturn(new String[]{MOCK_PACKAGE1});
+        // Prepare PackageInfo for MOCK_PACKAGE2
+        final PackageInfo packageInfo2 = buildPackageInfo(
+                false /* hasSystemPermission */, MOCK_UID2, MOCK_USER1);
+        packageInfo2.packageName = MOCK_PACKAGE2;
+        when(mPackageManager.getPackageInfo(eq(MOCK_PACKAGE2), anyInt())).thenReturn(packageInfo2);
+        when(mPackageManager.getPackagesForUid(MOCK_UID2)).thenReturn(new String[]{MOCK_PACKAGE2});
+
+        // MOCK_PACKAGE1 is listed in setting that allow to use restricted networks, MOCK_UID1
+        // should have SYSTEM permission.
+        when(mDeps.getAppsAllowedOnRestrictedNetworks(any())).thenReturn(
+                new ArraySet<>(new String[] { MOCK_PACKAGE1 }));
+        contentObserver.onChange(true /* selfChange */);
+        mNetdMonitor.expectPermission(SYSTEM, new UserHandle[]{MOCK_USER1}, new int[]{MOCK_UID1});
+        mNetdMonitor.expectNoPermission(new UserHandle[]{MOCK_USER1}, new int[]{MOCK_UID2});
+
+        // MOCK_PACKAGE2 is listed in setting that allow to use restricted networks, MOCK_UID2
+        // should have SYSTEM permission but MOCK_UID1 should revoke permission.
+        when(mDeps.getAppsAllowedOnRestrictedNetworks(any())).thenReturn(
+                new ArraySet<>(new String[] { MOCK_PACKAGE2 }));
+        contentObserver.onChange(true /* selfChange */);
+        mNetdMonitor.expectPermission(SYSTEM, new UserHandle[]{MOCK_USER1}, new int[]{MOCK_UID2});
+        mNetdMonitor.expectNoPermission(new UserHandle[]{MOCK_USER1}, new int[]{MOCK_UID1});
+
+        // No app lists in setting, should revoke permission from all uids.
+        when(mDeps.getAppsAllowedOnRestrictedNetworks(any())).thenReturn(new ArraySet<>());
+        contentObserver.onChange(true /* selfChange */);
+        mNetdMonitor.expectNoPermission(
+                new UserHandle[]{MOCK_USER1}, new int[]{MOCK_UID1, MOCK_UID2});
+    }
+
+    @Test
+    public void testAppsAllowedOnRestrictedNetworksChangedWithSharedUid() throws Exception {
+        final NetdMonitor mNetdMonitor = new NetdMonitor(mNetdService);
+        final ArgumentCaptor<ContentObserver> captor =
+                ArgumentCaptor.forClass(ContentObserver.class);
+        verify(mDeps, times(1)).registerContentObserver(any(),
+                argThat(uri -> uri.getEncodedPath().contains(APPS_ALLOWED_ON_RESTRICTED_NETWORKS)),
+                anyBoolean(), captor.capture());
+        final ContentObserver contentObserver = captor.getValue();
+
+        mPermissionMonitor.onUserAdded(MOCK_USER1);
+        // Prepare PackageInfo for MOCK_PACKAGE1 and MOCK_PACKAGE2 with shared uid MOCK_UID1.
+        final PackageInfo packageInfo = systemPackageInfoWithPermissions(CHANGE_NETWORK_STATE);
+        packageInfo.applicationInfo.uid = MOCK_USER1.getUid(MOCK_UID1);
+        packageInfo.packageName = MOCK_PACKAGE1;
+        final PackageInfo packageInfo2 = buildPackageInfo(
+                false /* hasSystemPermission */, MOCK_UID1, MOCK_USER1);
+        packageInfo2.packageName = MOCK_PACKAGE2;
+        when(mPackageManager.getPackageInfo(eq(MOCK_PACKAGE1), anyInt())).thenReturn(packageInfo);
+        when(mPackageManager.getPackageInfo(eq(MOCK_PACKAGE2), anyInt())).thenReturn(packageInfo2);
+        when(mPackageManager.getPackagesForUid(MOCK_UID1))
+                .thenReturn(new String[]{MOCK_PACKAGE1, MOCK_PACKAGE2});
+
+        // MOCK_PACKAGE1 have CHANGE_NETWORK_STATE, MOCK_UID1 should have NETWORK permission.
+        addPackageForUsers(new UserHandle[]{MOCK_USER1}, MOCK_PACKAGE1, MOCK_UID1);
+        mNetdMonitor.expectPermission(NETWORK, new UserHandle[]{MOCK_USER1}, new int[]{MOCK_UID1});
+
+        // MOCK_PACKAGE2 is listed in setting that allow to use restricted networks, MOCK_UID1
+        // should upgrade to SYSTEM permission.
+        when(mDeps.getAppsAllowedOnRestrictedNetworks(any())).thenReturn(
+                new ArraySet<>(new String[] { MOCK_PACKAGE2 }));
+        contentObserver.onChange(true /* selfChange */);
+        mNetdMonitor.expectPermission(SYSTEM, new UserHandle[]{MOCK_USER1}, new int[]{MOCK_UID1});
+
+        // MOCK_PACKAGE1 is listed in setting that allow to use restricted networks, MOCK_UID1
+        // should still have SYSTEM permission.
+        when(mDeps.getAppsAllowedOnRestrictedNetworks(any())).thenReturn(
+                new ArraySet<>(new String[] { MOCK_PACKAGE1 }));
+        contentObserver.onChange(true /* selfChange */);
+        mNetdMonitor.expectPermission(SYSTEM, new UserHandle[]{MOCK_USER1}, new int[]{MOCK_UID1});
+
+        // No app lists in setting, MOCK_UID1 should downgrade to NETWORK permission.
+        when(mDeps.getAppsAllowedOnRestrictedNetworks(any())).thenReturn(new ArraySet<>());
+        contentObserver.onChange(true /* selfChange */);
+        mNetdMonitor.expectPermission(NETWORK, new UserHandle[]{MOCK_USER1}, new int[]{MOCK_UID1});
+
+        // MOCK_PACKAGE1 removed, should revoke permission from MOCK_UID1.
+        when(mPackageManager.getPackagesForUid(MOCK_UID1)).thenReturn(new String[]{MOCK_PACKAGE2});
+        removePackageForUsers(new UserHandle[]{MOCK_USER1}, MOCK_PACKAGE1, MOCK_UID1);
+        mNetdMonitor.expectNoPermission(new UserHandle[]{MOCK_USER1}, new int[]{MOCK_UID1});
+    }
+}
\ No newline at end of file