diff --git a/car-ui-lib/car-ui-lib/src/androidTest/java/com/android/car/ui/FocusParkingViewTest.java b/car-ui-lib/car-ui-lib/src/androidTest/java/com/android/car/ui/FocusParkingViewTest.java
index 8ae6de7..6c9630b 100644
--- a/car-ui-lib/car-ui-lib/src/androidTest/java/com/android/car/ui/FocusParkingViewTest.java
+++ b/car-ui-lib/car-ui-lib/src/androidTest/java/com/android/car/ui/FocusParkingViewTest.java
@@ -32,6 +32,7 @@
 
 import com.android.car.ui.recyclerview.TestContentLimitingAdapter;
 import com.android.car.ui.test.R;
+import com.android.car.ui.utils.CarUiUtils;
 
 import org.junit.Before;
 import org.junit.Rule;
@@ -40,6 +41,8 @@
 /** Unit test for {@link FocusParkingView}. */
 public class FocusParkingViewTest {
 
+    private static final int NUM_ITEMS = 40;
+
     @Rule
     public ActivityTestRule<FocusParkingViewTestActivity> mActivityRule =
             new ActivityTestRule<>(FocusParkingViewTestActivity.class);
@@ -62,7 +65,8 @@
 
         mList.post(() -> {
             mList.setLayoutManager(new LinearLayoutManager(mActivity));
-            mList.setAdapter(new TestContentLimitingAdapter(/* numItems= */ 2));
+            mList.setAdapter(new TestContentLimitingAdapter(NUM_ITEMS));
+            CarUiUtils.setRotaryScrollEnabled(mList, /* isVertical= */ true);
         });
     }
 
@@ -153,6 +157,32 @@
                         parent.removeView(firstItem);
                         assertThat(mFocusedByDefault.isFocused()).isTrue();
                     }
+                })
+        );
+    }
+
+    @Test
+    public void testRestoreFocusInRoot_recyclerViewItemScrolledOffScreen() {
+        mList.post(() -> mList.getViewTreeObserver().addOnGlobalLayoutListener(
+                new ViewTreeObserver.OnGlobalLayoutListener() {
+                    @Override
+                    public void onGlobalLayout() {
+                        mList.getViewTreeObserver().removeOnGlobalLayoutListener(this);
+                        View firstItem = mList.getLayoutManager().findViewByPosition(0);
+                        firstItem.requestFocus();
+                        assertThat(firstItem.isFocused()).isTrue();
+
+                        mList.scrollToPosition(NUM_ITEMS - 1);
+                        mList.getViewTreeObserver().addOnGlobalLayoutListener(
+                                new ViewTreeObserver.OnGlobalLayoutListener() {
+                                    @Override
+                                    public void onGlobalLayout() {
+                                        mList.getViewTreeObserver()
+                                                .removeOnGlobalLayoutListener(this);
+                                        assertThat(mList.isFocused()).isTrue();
+                                    }
+                                });
+                    }
                 }));
     }
 
diff --git a/car-ui-lib/car-ui-lib/src/androidTest/java/com/android/car/ui/utils/ViewUtilsTest.java b/car-ui-lib/car-ui-lib/src/androidTest/java/com/android/car/ui/utils/ViewUtilsTest.java
index 06ff9fd..3cc9b7e 100644
--- a/car-ui-lib/car-ui-lib/src/androidTest/java/com/android/car/ui/utils/ViewUtilsTest.java
+++ b/car-ui-lib/car-ui-lib/src/androidTest/java/com/android/car/ui/utils/ViewUtilsTest.java
@@ -25,13 +25,13 @@
 import static com.android.car.ui.utils.ViewUtils.IMPLICIT_DEFAULT_FOCUS;
 import static com.android.car.ui.utils.ViewUtils.NO_FOCUS;
 import static com.android.car.ui.utils.ViewUtils.REGULAR_FOCUS;
+import static com.android.car.ui.utils.ViewUtils.SCROLLABLE_CONTAINER_FOCUS;
 
 import static com.google.common.truth.Truth.assertThat;
 
 import android.view.View;
 import android.view.ViewTreeObserver;
 
-import androidx.annotation.NonNull;
 import androidx.annotation.Nullable;
 import androidx.recyclerview.widget.LinearLayoutManager;
 import androidx.test.rule.ActivityTestRule;
@@ -83,7 +83,11 @@
         mList5 = mActivity.findViewById(R.id.list5);
         mRoot = mFocusArea1.getRootView();
 
-        mRoot.post(() -> setUpRecyclerView(mList5));
+        mRoot.post(() -> {
+            mList5.setLayoutManager(new LinearLayoutManager(mActivity));
+            mList5.setAdapter(new TestContentLimitingAdapter(/* numItems= */ 2));
+            CarUiUtils.setRotaryScrollEnabled(mList5, /* isVertical= */ true);
+        });
     }
 
     @Test
@@ -113,7 +117,6 @@
                     @Override
                     public void onGlobalLayout() {
                         mList5.getViewTreeObserver().removeOnGlobalLayoutListener(this);
-                        CarUiUtils.setRotaryScrollEnabled(mList5, /* isVertical= */ true);
                         View firstItem = mList5.getLayoutManager().findViewByPosition(0);
                         assertThat(ViewUtils.getAncestorScrollableContainer(firstItem))
                                 .isEqualTo(mList5);
@@ -289,9 +292,7 @@
 
     @Test
     public void testRequestFocus_nullView() {
-        mRoot.post(() -> {
-            assertRequestFocus(null, false);
-        });
+        mRoot.post(() -> assertRequestFocus(null, false));
     }
 
     @Test
@@ -379,7 +380,6 @@
                     @Override
                     public void onGlobalLayout() {
                         mList5.getViewTreeObserver().removeOnGlobalLayoutListener(this);
-                        CarUiUtils.setRotaryScrollEnabled(mList5, /* isVertical= */ true);
                         assertRequestFocus(mList5, false);
                     }
                 }));
@@ -425,7 +425,7 @@
     @Test
     public void testAdjustFocus_differentFocusLevels() {
         mRoot.post(() -> {
-            assertThat(ViewUtils.adjustFocus(mFocusArea2, NO_FOCUS)).isTrue();
+            assertThat(ViewUtils.adjustFocus(mFocusArea2, SCROLLABLE_CONTAINER_FOCUS)).isTrue();
             assertThat(ViewUtils.adjustFocus(mFocusArea2, REGULAR_FOCUS)).isFalse();
 
             assertThat(ViewUtils.adjustFocus(mFocusArea5, REGULAR_FOCUS)).isTrue();
@@ -436,6 +436,13 @@
 
             assertThat(ViewUtils.adjustFocus(mFocusArea3, DEFAULT_FOCUS)).isTrue();
             assertThat(ViewUtils.adjustFocus(mFocusArea3, FOCUSED_BY_DEFAULT)).isFalse();
+
+            View firstItem = mList5.getLayoutManager().findViewByPosition(0);
+            firstItem.setFocusable(false);
+            View secondItem = mList5.getLayoutManager().findViewByPosition(1);
+            secondItem.setFocusable(false);
+            assertThat(ViewUtils.adjustFocus(mFocusArea5, NO_FOCUS)).isTrue();
+            assertThat(ViewUtils.adjustFocus(mFocusArea5, SCROLLABLE_CONTAINER_FOCUS)).isFalse();
         });
     }
 
@@ -447,6 +454,8 @@
             mFocusArea2.setVisibility(INVISIBLE);
             assertThat(ViewUtils.getFocusLevel(mView2)).isEqualTo(NO_FOCUS);
 
+            assertThat(ViewUtils.getFocusLevel(mList5)).isEqualTo(SCROLLABLE_CONTAINER_FOCUS);
+
             assertThat(ViewUtils.getFocusLevel(mView4)).isEqualTo(REGULAR_FOCUS);
 
             mRoot.post(() -> mList5.getViewTreeObserver().addOnGlobalLayoutListener(
@@ -473,9 +482,4 @@
             assertThat(view.isFocused()).isEqualTo(focused);
         }
     }
-
-    private void setUpRecyclerView(@NonNull CarUiRecyclerView list) {
-        list.setLayoutManager(new LinearLayoutManager(mActivity));
-        list.setAdapter(new TestContentLimitingAdapter(/* numItems= */ 2));
-    }
 }
diff --git a/car-ui-lib/car-ui-lib/src/androidTest/res/layout/view_utils_test_activity.xml b/car-ui-lib/car-ui-lib/src/androidTest/res/layout/view_utils_test_activity.xml
index 558dd9f..72c2366 100644
--- a/car-ui-lib/car-ui-lib/src/androidTest/res/layout/view_utils_test_activity.xml
+++ b/car-ui-lib/car-ui-lib/src/androidTest/res/layout/view_utils_test_activity.xml
@@ -84,10 +84,6 @@
         android:layout_width="wrap_content"
         android:layout_height="wrap_content"
         android:orientation="vertical">
-        <View
-            android:layout_width="100dp"
-            android:layout_height="100dp"
-            android:focusable="true"/>
         <com.android.car.ui.recyclerview.CarUiRecyclerView
             android:id="@+id/list5"
             android:layout_width="wrap_content"
diff --git a/car-ui-lib/car-ui-lib/src/main/java/com/android/car/ui/FocusParkingView.java b/car-ui-lib/car-ui-lib/src/main/java/com/android/car/ui/FocusParkingView.java
index 481e522..085ae23 100644
--- a/car-ui-lib/car-ui-lib/src/main/java/com/android/car/ui/FocusParkingView.java
+++ b/car-ui-lib/car-ui-lib/src/main/java/com/android/car/ui/FocusParkingView.java
@@ -137,6 +137,11 @@
             // (such as focus, clear focus) on the nodes in the window. So FocusParkingView has to
             // grab the focus proactively.
             super.requestFocus(FOCUS_DOWN, null);
+
+            // OnGlobalFocusChangeListener won't be triggered when the window lost focus, so reset
+            // the focused view here.
+            mFocusedView = null;
+            mScrollableContainer = null;
         } else if (isFocused()) {
             // When FocusParkingView is focused and the window just gets focused, transfer the view
             // focus to a non-FocusParkingView in the window.
@@ -185,9 +190,9 @@
     }
 
     private boolean restoreFocusInRoot() {
-        // The focused view was in a scrollable container and it was removed, e.g., it was scrolled
-        // off the screen. Let's focus on the scrollable container so that the rotary controller
-        // can scroll it.
+        // The focused view was in a scrollable container and the Framework unfocused it because it
+        // was scrolled off the screen. In this case focus on the scrollable container so that the
+        // rotary controller can scroll the scrollable container.
         if (maybeFocusOnScrollableContainer()) {
             return true;
         }
@@ -196,9 +201,14 @@
     }
 
     private boolean maybeFocusOnScrollableContainer() {
+        // If the focused view was in a scrollable container and it was scrolled off the screen,
+        // focus on the scrollable container. When a view is scrolled off the screen, it is no
+        // longer attached to window and its parent is not null. When a view is removed, its parent
+        // is null. There is no need to focus on the scrollable container when its focused element
+        // is removed.
         if (mFocusedView != null && !mFocusedView.isAttachedToWindow()
-                && mScrollableContainer != null && mScrollableContainer.isAttachedToWindow()
-                && mScrollableContainer.isShown()) {
+                && mFocusedView.getParent() != null && mScrollableContainer != null
+                && mScrollableContainer.isAttachedToWindow() && mScrollableContainer.isShown()) {
             RecyclerView recyclerView = mScrollableContainer instanceof RecyclerView
                     ? (RecyclerView) mScrollableContainer
                     : null;
diff --git a/car-ui-lib/car-ui-lib/src/main/java/com/android/car/ui/utils/ViewUtils.java b/car-ui-lib/car-ui-lib/src/main/java/com/android/car/ui/utils/ViewUtils.java
index f1ffad6..fdc787b 100644
--- a/car-ui-lib/car-ui-lib/src/main/java/com/android/car/ui/utils/ViewUtils.java
+++ b/car-ui-lib/car-ui-lib/src/main/java/com/android/car/ui/utils/ViewUtils.java
@@ -51,27 +51,33 @@
      */
     public static final int NO_FOCUS = 1;
 
-    /** A regular view is focused. */
-    public static final int REGULAR_FOCUS = 2;
+    /** A scrollable container is focused. */
+    public static final int SCROLLABLE_CONTAINER_FOCUS = 2;
+
+    /**
+     * A regular view is focused. A regular View is a View that is neither a FocusParkingView nor a
+     * scrollable container.
+     */
+    public static final int REGULAR_FOCUS = 3;
 
     /**
      * An implicit default focus view (i.e., the first focusable item in a scrollable container) is
      * focused.
      */
-    public static final int IMPLICIT_DEFAULT_FOCUS = 3;
+    public static final int IMPLICIT_DEFAULT_FOCUS = 4;
 
     /** The {@code app:defaultFocus} view is focused. */
-    public static final int DEFAULT_FOCUS = 4;
+    public static final int DEFAULT_FOCUS = 5;
 
     /** The {@code android:focusedByDefault} view is focused. */
-    public static final int FOCUSED_BY_DEFAULT = 5;
+    public static final int FOCUSED_BY_DEFAULT = 6;
 
     /**
      * Focus level of a view. When adjusting the focus, the view with the highest focus level will
      * be focused.
      */
-    @IntDef(flag = true, value = {NO_FOCUS, REGULAR_FOCUS, IMPLICIT_DEFAULT_FOCUS,
-            DEFAULT_FOCUS, FOCUSED_BY_DEFAULT})
+    @IntDef(flag = true, value = {NO_FOCUS, SCROLLABLE_CONTAINER_FOCUS, REGULAR_FOCUS,
+            IMPLICIT_DEFAULT_FOCUS, DEFAULT_FOCUS, FOCUSED_BY_DEFAULT})
     @Retention(RetentionPolicy.SOURCE)
     public @interface FocusLevel {
     }
@@ -171,8 +177,11 @@
         if (currentLevel < IMPLICIT_DEFAULT_FOCUS && focusOnImplicitDefaultFocusView(root)) {
             return true;
         }
-        if (currentLevel < REGULAR_FOCUS) {
-            return focusOnFirstFocus(root);
+        if (currentLevel < REGULAR_FOCUS && focusOnFirstRegularView(root)) {
+            return true;
+        }
+        if (currentLevel < SCROLLABLE_CONTAINER_FOCUS) {
+            return focusOnScrollableContainer(root);
         }
         return false;
     }
@@ -192,6 +201,9 @@
         if (isImplicitDefaultFocusView(view)) {
             return IMPLICIT_DEFAULT_FOCUS;
         }
+        if (isScrollableContainer(view)) {
+            return SCROLLABLE_CONTAINER_FOCUS;
+        }
         return REGULAR_FOCUS;
     }
 
@@ -270,20 +282,35 @@
     }
 
     /**
-     * Tries to focus on the first focusable view in the view tree in depth first order. If failed,
-     * keeps trying other views in depth first order until succeeded.
+     * Tries to focus on the first focusable view in the view tree in depth first order, excluding
+     * the FocusParkingView and scrollable containers. If focusing on the first such view fails,
+     * keeps trying other views in depth first order until succeeds or there are no more such views.
      *
      * @param root the root of the view tree
      * @return whether succeeded
      */
-    private static boolean focusOnFirstFocus(@NonNull View root) {
+    private static boolean focusOnFirstRegularView(@NonNull View root) {
         View focusedView = ViewUtils.depthFirstSearch(root,
-                /* targetPredicate= */ v -> canTakeFocus(v) && requestFocus(v),
+                /* targetPredicate= */
+                v -> !isScrollableContainer(v) && canTakeFocus(v) && requestFocus(v),
                 /* skipPredicate= */ v -> !v.isShown());
         return focusedView != null;
     }
 
     /**
+     * Focuses on the first scrollable container in the view tree, if any.
+     *
+     * @param root the root of the view tree
+     * @return whether succeeded
+     */
+    private static boolean focusOnScrollableContainer(@NonNull View root) {
+        View focusedView = ViewUtils.depthFirstSearch(root,
+                /* targetPredicate= */ v -> isScrollableContainer(v) && canTakeFocus(v),
+                /* skipPredicate= */ v -> !v.isShown());
+        return requestFocus(focusedView);
+    }
+
+    /**
      * Searches the {@code root}'s descendants in depth first order, and returns the first
      * {@code app:defaultFocus} view that can take focus. Returns null if not found.
      */