diff --git a/lib/java/com/google/android/material/bottomsheet/BottomSheetBehavior.java b/lib/java/com/google/android/material/bottomsheet/BottomSheetBehavior.java
index e071aa10774..8d017e1fdc8 100644
--- a/lib/java/com/google/android/material/bottomsheet/BottomSheetBehavior.java
+++ b/lib/java/com/google/android/material/bottomsheet/BottomSheetBehavior.java
@@ -768,10 +768,14 @@ public void onStopNestedScroll(
         targetState = STATE_EXPANDED;
       } else {
         int currentTop = child.getTop();
-        if (currentTop > halfExpandedOffset) {
-          targetState = STATE_HALF_EXPANDED;
-        } else {
+        if (currentTop < halfExpandedOffset) {
           targetState = STATE_EXPANDED;
+        } else {
+          if (shouldSkipHalfExpandedStateWhenDragging()) {
+            targetState = STATE_EXPANDED;
+          } else {
+            targetState = STATE_HALF_EXPANDED;
+          }
         }
       }
     } else if (hideable && shouldHide(child, getYVelocity())) {
@@ -796,10 +800,10 @@ public void onStopNestedScroll(
             }
           }
         } else {
-          if (Math.abs(currentTop - halfExpandedOffset) < Math.abs(currentTop - collapsedOffset)) {
-            targetState = STATE_HALF_EXPANDED;
-          } else {
+          if (shouldSkipHalfExpandedStateWhenDragging() || Math.abs(currentTop - halfExpandedOffset) >= Math.abs(currentTop - collapsedOffset)) {
             targetState = STATE_COLLAPSED;
+          } else {
+            targetState = STATE_HALF_EXPANDED;
           }
         }
       }
@@ -809,10 +813,10 @@ public void onStopNestedScroll(
       } else {
         // Settle to nearest height.
         int currentTop = child.getTop();
-        if (Math.abs(currentTop - halfExpandedOffset) < Math.abs(currentTop - collapsedOffset)) {
-          targetState = STATE_HALF_EXPANDED;
-        } else {
+        if (shouldSkipHalfExpandedStateWhenDragging() || Math.abs(currentTop - halfExpandedOffset) >= Math.abs(currentTop - collapsedOffset)) {
           targetState = STATE_COLLAPSED;
+        } else {
+          targetState = STATE_HALF_EXPANDED;
         }
       }
     }