diff --git a/wear/compose/compose-material/src/androidTest/kotlin/androidx/wear/compose/material/PositionIndicatorTest.kt b/wear/compose/compose-material/src/androidTest/kotlin/androidx/wear/compose/material/PositionIndicatorTest.kt
index 54b69b3..a1c0393 100644
--- a/wear/compose/compose-material/src/androidTest/kotlin/androidx/wear/compose/material/PositionIndicatorTest.kt
+++ b/wear/compose/compose-material/src/androidTest/kotlin/androidx/wear/compose/material/PositionIndicatorTest.kt
@@ -172,7 +172,7 @@
     }
 
     @Test
-    fun positionIndicatorWithScalingLazyColumn_hidden_by_default() {
+    fun positionIndicatorWithScalingLazyColumn_shown_by_default() {
         lateinit var state: ScalingLazyListState
         lateinit var positionIndicatorState: PositionIndicatorState
         val piColor = Color.Yellow
@@ -200,7 +200,7 @@
         }
         rule.waitForIdle()
         rule.onNodeWithTag(TEST_TAG).captureToImage()
-            .assertDoesNotContainColor(piColor)
+            .assertContainsColor(expectedColor = piColor, minPercent = 0.2f)
     }
 
     @Test
diff --git a/wear/compose/compose-material/src/main/java/androidx/wear/compose/material/PositionIndicator.kt b/wear/compose/compose-material/src/main/java/androidx/wear/compose/material/PositionIndicator.kt
index 3c8f1bf..916c008 100644
--- a/wear/compose/compose-material/src/main/java/androidx/wear/compose/material/PositionIndicator.kt
+++ b/wear/compose/compose-material/src/main/java/androidx/wear/compose/material/PositionIndicator.kt
@@ -714,7 +714,9 @@
     val updatedPositionAnimationSpec by rememberUpdatedState(positionAnimationSpec)
 
     LaunchedEffect(state) {
-        var beforeFirstAnimation = true
+        // We don't want to trigger first animation when we receive position or size
+        // for the first time, because initial position and size are equal to 0.
+        var skipFirstPositionAnimation = true
 
         // Skip first alpha animation only when initial visibility is not Hide
         var skipFirstAlphaAnimation = state.visibility(containerSize.height.toFloat()) !=
@@ -730,10 +732,22 @@
                     state.visibility(containerSize.height.toFloat())
                 )
             }.collectLatest {
-                if (beforeFirstAnimation || updatedPositionAnimationSpec is SnapSpec) {
+                // Workaround for b/315149417. When visibility is Hide and other values equal to 0,
+                // we consider that as non-initialized state.
+                // It means that we skip first alpha animation, and also ignore these values.
+                if (skipFirstPositionAnimation &&
+                    it.visibility == PositionIndicatorVisibility.Hide &&
+                    it.position == 0f &&
+                    it.size == 0f
+                ) {
+                    skipFirstAlphaAnimation = true
+                    return@collectLatest
+                }
+
+                if (skipFirstPositionAnimation || updatedPositionAnimationSpec is SnapSpec) {
                     sizeFractionAnimatable.snapTo(it.size)
                     positionFractionAnimatable.snapTo(it.position)
-                    beforeFirstAnimation = false
+                    skipFirstPositionAnimation = false
                 } else {
                     launch {
                         sizeFractionAnimatable
@@ -764,7 +778,9 @@
                         handleFadeOut(updatedFadeOutAnimationSpec, animateAlphaChannel, alphaValue)
                     }
 
-                    PositionIndicatorVisibility.Show -> {
+                    // PositionIndicatorVisibility.Show and
+                    // PositionIndicatorVisibility.AutoHide cases
+                    else -> {
                         // If fadeInAnimationSpec is SnapSpec or we skip the first animation,
                         // then we change alphaValue directly here
                         if (updatedFadeInAnimationSpec is SnapSpec || skipFirstAlphaAnimation) {
@@ -774,11 +790,6 @@
                             // Otherwise we send an event to animation channel
                             animateAlphaChannel.trySend(1f)
                         }
-                    }
-
-                    // PositionIndicatorVisibility.AutoHide case
-                    else -> {
-                        skipFirstAlphaAnimation = false
 
                         if (it.visibility == PositionIndicatorVisibility.AutoHide) {
                             // Waiting for 2000ms and changing alpha value to 0f
diff --git a/wear/compose/compose-material/src/main/java/androidx/wear/compose/material/dialog/Dialog.android.kt b/wear/compose/compose-material/src/main/java/androidx/wear/compose/material/dialog/Dialog.android.kt
index 253f341..48d70a8 100644
--- a/wear/compose/compose-material/src/main/java/androidx/wear/compose/material/dialog/Dialog.android.kt
+++ b/wear/compose/compose-material/src/main/java/androidx/wear/compose/material/dialog/Dialog.android.kt
@@ -196,7 +196,6 @@
                         Vignette(vignettePosition = VignettePosition.TopAndBottom)
                     }
                 },
-                positionIndicator = positionIndicator,
                 modifier = modifier,
             ) {
                 SwipeToDismissBox(
@@ -212,13 +211,16 @@
                         transitionState = MutableTransitionState(DialogVisibility.Hide)
                     }
                 ) { isBackground ->
-                    Box(
-                        modifier = Modifier
-                            .matchParentSize()
-                            .graphicsLayer(alpha = contentAlpha)
-                            .background(MaterialTheme.colors.background)
-                    ) {
-                        if (!isBackground) content()
+                    if (!isBackground) {
+                        Box(
+                            modifier = Modifier
+                                .matchParentSize()
+                                .graphicsLayer(alpha = contentAlpha)
+                                .background(MaterialTheme.colors.background)
+                        ) {
+                            content()
+                            positionIndicator()
+                        }
                     }
                 }
             }
diff --git a/wear/compose/integration-tests/demos/src/main/java/androidx/wear/compose/integration/demos/MaterialDemos.kt b/wear/compose/integration-tests/demos/src/main/java/androidx/wear/compose/integration/demos/MaterialDemos.kt
index f4dabe1..317dc43 100644
--- a/wear/compose/integration-tests/demos/src/main/java/androidx/wear/compose/integration/demos/MaterialDemos.kt
+++ b/wear/compose/integration-tests/demos/src/main/java/androidx/wear/compose/integration/demos/MaterialDemos.kt
@@ -642,9 +642,12 @@
             "Position Indicator",
             listOf(
                 ComposableDemo("Hide when no scrollable") { HideWhenFullDemo() },
-                ComposableDemo("Hide when no scrollable on ScalingLazyColumn") {
+                ComposableDemo("Hide when no scrollable SLC") {
                     HideWhenFullSLCDemo()
                 },
+                ComposableDemo("SLC with PositionIndicator") {
+                    SLCWithPositionIndicatorDemo()
+                },
                 ComposableDemo("Controllable PI") { ControllablePositionIndicator() },
                 ComposableDemo("Shared PI") { SharedPositionIndicator() }
             )
diff --git a/wear/compose/integration-tests/demos/src/main/java/androidx/wear/compose/integration/demos/PositionIndicatorDemos.kt b/wear/compose/integration-tests/demos/src/main/java/androidx/wear/compose/integration/demos/PositionIndicatorDemos.kt
index c5a25a1..780a7c7 100644
--- a/wear/compose/integration-tests/demos/src/main/java/androidx/wear/compose/integration/demos/PositionIndicatorDemos.kt
+++ b/wear/compose/integration-tests/demos/src/main/java/androidx/wear/compose/integration/demos/PositionIndicatorDemos.kt
@@ -112,6 +112,33 @@
 }
 
 @Composable
+fun SLCWithPositionIndicatorDemo() {
+    val listState = rememberScalingLazyListState(5)
+    Scaffold(
+        positionIndicator = {
+            PositionIndicator(
+                scalingLazyListState = listState,
+                modifier = Modifier
+            )
+        }
+    ) {
+        ScalingLazyColumn(
+            state = listState,
+            autoCentering = null
+        ) {
+            items(
+                count = 15
+            ) {
+                Chip(
+                    onClick = {},
+                    label = { Text("SLC Item #$it") }
+                )
+            }
+        }
+    }
+}
+
+@Composable
 fun ControllablePositionIndicator() {
     val position = remember { mutableFloatStateOf(0.2f) }
     val size = remember { mutableFloatStateOf(0.5f) }