diff --git a/core/package_internal.mk b/core/package_internal.mk
index 7bbaeb6..e680df7 100644
--- a/core/package_internal.mk
+++ b/core/package_internal.mk
@@ -100,19 +100,19 @@
 # Determine whether auto-RRO is enabled for this package.
 enforce_rro_enabled :=
 ifneq (,$(filter *, $(PRODUCT_ENFORCE_RRO_TARGETS)))
-  # * means all system APKs, so enable conditionally based on module path.
+  # * means all system and system_ext APKs, so enable conditionally based on module path.
+  # Note that modules in PRODUCT_ENFORCE_RRO_EXEMPTED_TARGETS are excluded even if it is '*'
 
   # Note that base_rules.mk has not yet been included, so it's likely that only
   # one of LOCAL_MODULE_PATH and the LOCAL_X_MODULE flags has been set.
   ifeq (,$(LOCAL_MODULE_PATH))
-    non_system_module := $(filter true,\
+    non_rro_target_module := $(filter true,\
         $(LOCAL_ODM_MODULE) \
         $(LOCAL_OEM_MODULE) \
         $(LOCAL_PRODUCT_MODULE) \
-        $(LOCAL_SYSTEM_EXT_MODULE) \
         $(LOCAL_PROPRIETARY_MODULE) \
         $(LOCAL_VENDOR_MODULE))
-    enforce_rro_enabled := $(if $(non_system_module),,true)
+    enforce_rro_enabled := $(if $(non_rro_target_module),,true)
   else ifneq ($(filter $(TARGET_OUT)/%,$(LOCAL_MODULE_PATH)),)
     enforce_rro_enabled := true
   endif
@@ -120,6 +120,12 @@
   enforce_rro_enabled := true
 endif
 
+# TODO(b/150820813) Some modules depend on static overlay, remove this after eliminating the dependency.
+ifneq (,$(filter $(LOCAL_PACKAGE_NAME), $(PRODUCT_ENFORCE_RRO_EXEMPTED_TARGETS)))
+  enforce_rro_enabled :=
+endif
+
+
 product_package_overlays := $(strip \
     $(wildcard $(foreach dir, $(PRODUCT_PACKAGE_OVERLAYS), \
       $(addprefix $(dir)/, $(LOCAL_RESOURCE_DIR)))))
diff --git a/core/product.mk b/core/product.mk
index 25a9c44..364f0d8 100644
--- a/core/product.mk
+++ b/core/product.mk
@@ -193,6 +193,9 @@
 # Package list to apply enforcing RRO.
 _product_list_vars += PRODUCT_ENFORCE_RRO_TARGETS
 
+# Packages to skip auto-generating RROs for when PRODUCT_ENFORCE_RRO_TARGETS is set to *.
+_product_list_vars += PRODUCT_ENFORCE_RRO_EXEMPTED_TARGETS
+
 _product_list_vars += PRODUCT_SDK_ATREE_FILES
 _product_list_vars += PRODUCT_SDK_ADDON_NAME
 _product_list_vars += PRODUCT_SDK_ADDON_COPY_FILES
diff --git a/core/soong_config.mk b/core/soong_config.mk
index abe1923..631846a 100644
--- a/core/soong_config.mk
+++ b/core/soong_config.mk
@@ -81,6 +81,7 @@
 $(call add_json_list, DeviceResourceOverlays,            $(DEVICE_PACKAGE_OVERLAYS))
 $(call add_json_list, ProductResourceOverlays,           $(PRODUCT_PACKAGE_OVERLAYS))
 $(call add_json_list, EnforceRROTargets,                 $(PRODUCT_ENFORCE_RRO_TARGETS))
+$(call add_json_list, EnforceRROExemptedTargets,         $(PRODUCT_ENFORCE_RRO_EXEMPTED_TARGETS))
 $(call add_json_list, EnforceRROExcludedOverlays,        $(PRODUCT_ENFORCE_RRO_EXCLUDED_OVERLAYS))
 
 $(call add_json_str,  AAPTCharacteristics,               $(TARGET_AAPT_CHARACTERISTICS))
diff --git a/target/product/mainline_system.mk b/target/product/mainline_system.mk
index ccbc907..a8b75e0 100644
--- a/target/product/mainline_system.mk
+++ b/target/product/mainline_system.mk
@@ -125,6 +125,9 @@
 
 PRODUCT_ENFORCE_RRO_TARGETS := *
 
+# TODO(b/150820813) Settings depends on static overlay, remove this after eliminating the dependency.
+PRODUCT_ENFORCE_RRO_EXEMPTED_TARGETS := Settings
+
 PRODUCT_NAME := mainline_system
 PRODUCT_BRAND := generic