diff --git a/lib/java/com/google/android/material/bottomsheet/BottomSheetBehavior.java b/lib/java/com/google/android/material/bottomsheet/BottomSheetBehavior.java
index 6f3e66f4eb7..afd716bce7f 100644
--- a/lib/java/com/google/android/material/bottomsheet/BottomSheetBehavior.java
+++ b/lib/java/com/google/android/material/bottomsheet/BottomSheetBehavior.java
@@ -142,6 +142,17 @@ void onLayout(@NonNull View bottomSheet) {}
   @Retention(RetentionPolicy.SOURCE)
   public @interface State {}
 
+  /**
+   * Stable states that can be set by the {@link #setState(int)} method. These includes all the
+   * possible states a bottom sheet can be in when it's settled.
+   *
+   * @hide
+   */
+  @RestrictTo(LIBRARY_GROUP)
+  @IntDef({STATE_EXPANDED, STATE_COLLAPSED, STATE_HIDDEN, STATE_HALF_EXPANDED})
+  @Retention(RetentionPolicy.SOURCE)
+  public @interface StableState {}
+
   /**
    * Peek at the 16:9 ratio keyline of its parent.
    *
@@ -245,7 +256,7 @@ void onLayout(@NonNull View bottomSheet) {}
 
   private boolean isShapeExpanded;
 
-  private SettleRunnable settleRunnable = null;
+  private final StateSettlingTracker stateSettlingTracker = new StateSettlingTracker();
 
   @Nullable private ValueAnimator interpolatorAnimator;
 
@@ -742,76 +753,61 @@ public void onStopNestedScroll(
             || !nestedScrolled)) {
       return;
     }
-    int top;
-    int targetState;
+    @StableState int targetState;
     if (lastNestedScrollDy > 0) {
       if (fitToContents) {
-        top = fitToContentsOffset;
         targetState = STATE_EXPANDED;
       } else {
         int currentTop = child.getTop();
         if (currentTop > halfExpandedOffset) {
-          top = halfExpandedOffset;
           targetState = STATE_HALF_EXPANDED;
         } else {
-          top = getExpandedOffset();
           targetState = STATE_EXPANDED;
         }
       }
     } else if (hideable && shouldHide(child, getYVelocity())) {
-      top = parentHeight;
       targetState = STATE_HIDDEN;
     } else if (lastNestedScrollDy == 0) {
       int currentTop = child.getTop();
       if (fitToContents) {
         if (Math.abs(currentTop - fitToContentsOffset) < Math.abs(currentTop - collapsedOffset)) {
-          top = fitToContentsOffset;
           targetState = STATE_EXPANDED;
         } else {
-          top = collapsedOffset;
           targetState = STATE_COLLAPSED;
         }
       } else {
         if (currentTop < halfExpandedOffset) {
           if (currentTop < Math.abs(currentTop - collapsedOffset)) {
-            top = getExpandedOffset();
             targetState = STATE_EXPANDED;
           } else {
             if (shouldSkipHalfExpandedStateWhenDragging()) {
-              top = collapsedOffset;
               targetState = STATE_COLLAPSED;
             } else {
-              top = halfExpandedOffset;
               targetState = STATE_HALF_EXPANDED;
             }
           }
         } else {
           if (Math.abs(currentTop - halfExpandedOffset) < Math.abs(currentTop - collapsedOffset)) {
-            top = halfExpandedOffset;
             targetState = STATE_HALF_EXPANDED;
           } else {
-            top = collapsedOffset;
             targetState = STATE_COLLAPSED;
           }
         }
       }
     } else {
       if (fitToContents) {
-        top = collapsedOffset;
         targetState = STATE_COLLAPSED;
       } else {
         // Settle to nearest height.
         int currentTop = child.getTop();
         if (Math.abs(currentTop - halfExpandedOffset) < Math.abs(currentTop - collapsedOffset)) {
-          top = halfExpandedOffset;
           targetState = STATE_HALF_EXPANDED;
         } else {
-          top = collapsedOffset;
           targetState = STATE_COLLAPSED;
         }
       }
     }
-    startSettlingAnimation(child, targetState, top, false);
+    startSettling(child, targetState, false);
     nestedScrolled = false;
   }
 
@@ -974,7 +970,7 @@ private void updatePeekHeight(boolean animate) {
         V view = viewRef.get();
         if (view != null) {
           if (animate) {
-            settleToStatePendingLayout(state);
+            setState(STATE_COLLAPSED);
           } else {
             view.requestLayout();
           }
@@ -1197,22 +1193,53 @@ public void removeBottomSheetCallback(@NonNull BottomSheetCallback callback) {
    * @param state One of {@link #STATE_COLLAPSED}, {@link #STATE_EXPANDED}, {@link #STATE_HIDDEN},
    *     or {@link #STATE_HALF_EXPANDED}.
    */
-  public void setState(@State int state) {
-    if (state == this.state) {
+  public void setState(@StableState int state) {
+    if (state == STATE_DRAGGING || state == STATE_SETTLING) {
+      throw new IllegalArgumentException(
+          "STATE_"
+              + (state == STATE_DRAGGING ? "DRAGGING" : "SETTLING")
+              + " should not be set externally.");
+    }
+    if (!hideable && state == STATE_HIDDEN) {
+      Log.w(TAG, "Cannot set state: " + state);
       return;
     }
-    if (viewRef == null) {
+    final int finalState;
+    if (state == STATE_HALF_EXPANDED
+        && fitToContents
+        && getTopOffsetForState(state) <= fitToContentsOffset) {
+      // Skip to the expanded state if we would scroll past the height of the contents.
+      finalState = STATE_EXPANDED;
+    } else {
+      finalState = state;
+    }
+    if (viewRef == null || viewRef.get() == null) {
       // The view is not laid out yet; modify mState and let onLayoutChild handle it later
-      if (state == STATE_COLLAPSED
-          || state == STATE_EXPANDED
-          || state == STATE_HALF_EXPANDED
-          || (hideable && state == STATE_HIDDEN)) {
-        this.state = state;
-        this.lastStableState = state;
-      }
-      return;
+      setStateInternal(state);
+    } else {
+      final V child = viewRef.get();
+      runAfterLayout(
+          child,
+          new Runnable() {
+            @Override
+            public void run() {
+              startSettling(child, finalState, false);
+            }
+          });
+    }
+  }
+
+  private void runAfterLayout(V child, Runnable runnable) {
+    if (isLayouting(child)) {
+      child.post(runnable);
+    } else {
+      runnable.run();
     }
-    settleToStatePendingLayout(state);
+  }
+
+  private boolean isLayouting(V child) {
+    ViewParent parent = child.getParent();
+    return parent != null && parent.isLayoutRequested() && ViewCompat.isAttachedToWindow(child);
   }
 
   /**
@@ -1235,27 +1262,6 @@ public boolean isGestureInsetBottomIgnored() {
     return gestureInsetBottomIgnored;
   }
 
-  private void settleToStatePendingLayout(@State int state) {
-    final V child = viewRef.get();
-    if (child == null) {
-      return;
-    }
-    // Start the animation; wait until a pending layout if there is one.
-    ViewParent parent = child.getParent();
-    if (parent != null && parent.isLayoutRequested() && ViewCompat.isAttachedToWindow(child)) {
-      final int finalState = state;
-      child.post(
-          new Runnable() {
-            @Override
-            public void run() {
-              settleToState(child, finalState);
-            }
-          });
-    } else {
-      settleToState(child, state);
-    }
-  }
-
   /**
    * Gets the current state of the bottom sheet.
    *
@@ -1549,62 +1555,39 @@ private float getYVelocity() {
     return velocityTracker.getYVelocity(activePointerId);
   }
 
-  void settleToState(@NonNull View child, @State int state) {
-    int top;
-    if (state == STATE_COLLAPSED) {
-      top = collapsedOffset;
-    } else if (state == STATE_HALF_EXPANDED) {
-      top = halfExpandedOffset;
-      if (fitToContents && top <= fitToContentsOffset) {
-        // Skip to the expanded state if we would scroll past the height of the contents.
-        state = STATE_EXPANDED;
-        top = fitToContentsOffset;
-      }
-    } else if (state == STATE_EXPANDED) {
-      top = getExpandedOffset();
-    } else if (hideable && state == STATE_HIDDEN) {
-      top = parentHeight;
-    } else {
-      // TODO(b/204062131): Possible illegal state when hideable is modified while the state is
-      // being updated.
-      Log.w(
-          TAG,
-          "The bottom sheet may be in an invalid state. Ensure `hideable` is true when using"
-              + " `STATE_HIDDEN`.");
-      return;
-    }
-    startSettlingAnimation(child, state, top, false);
-  }
-
-  void startSettlingAnimation(
-      View child, @State int state, int top, boolean settleFromViewDragHelper) {
-    boolean startedSettling =
+  private void startSettling(View child, @StableState int state, boolean isReleasingView) {
+    int top = getTopOffsetForState(state);
+    boolean settling =
         viewDragHelper != null
-            && (settleFromViewDragHelper
+            && (isReleasingView
                 ? viewDragHelper.settleCapturedViewAt(child.getLeft(), top)
                 : viewDragHelper.smoothSlideViewTo(child, child.getLeft(), top));
-    if (startedSettling) {
+    if (settling) {
       setStateInternal(STATE_SETTLING);
       // STATE_SETTLING won't animate the material shape, so do that here with the target state.
       updateDrawableForTargetState(state);
-      if (settleRunnable == null) {
-        // If the singleton SettleRunnable instance has not been instantiated, create it.
-        settleRunnable = new SettleRunnable(child, state);
-      }
-      // If the SettleRunnable has not been posted, post it with the correct state.
-      if (!settleRunnable.isPosted) {
-        settleRunnable.targetState = state;
-        ViewCompat.postOnAnimation(child, settleRunnable);
-        settleRunnable.isPosted = true;
-      } else {
-        // Otherwise, if it has been posted, just update the target state.
-        settleRunnable.targetState = state;
-      }
+      stateSettlingTracker.continueSettlingToState(state);
     } else {
       setStateInternal(state);
     }
   }
 
+  private int getTopOffsetForState(@StableState int state) {
+    switch (state) {
+      case STATE_COLLAPSED:
+        return collapsedOffset;
+      case STATE_EXPANDED:
+        return getExpandedOffset();
+      case STATE_HALF_EXPANDED:
+        return halfExpandedOffset;
+      case STATE_HIDDEN:
+        return parentHeight;
+      default:
+        // Fall through
+    }
+    throw new IllegalArgumentException("Invalid state to get top offset: " + state);
+  }
+
   private final ViewDragHelper.Callback dragCallback =
       new ViewDragHelper.Callback() {
 
@@ -1649,11 +1632,9 @@ private boolean releasedLow(@NonNull View child) {
 
         @Override
         public void onViewReleased(@NonNull View releasedChild, float xvel, float yvel) {
-          int top;
           @State int targetState;
           if (yvel < 0) { // Moving up
             if (fitToContents) {
-              top = fitToContentsOffset;
               targetState = STATE_EXPANDED;
             } else {
               int currentTop = releasedChild.getTop();
@@ -1663,18 +1644,14 @@ public void onViewReleased(@NonNull View releasedChild, float xvel, float yvel)
                 float yPositionPercentage = currentTop * 100f / parentHeight;
 
                 if (shouldExpandOnUpwardDrag(dragDurationMillis, yPositionPercentage)) {
-                  top = expandedOffset;
                   targetState = STATE_EXPANDED;
                 } else {
-                  top = collapsedOffset;
                   targetState = STATE_COLLAPSED;
                 }
               } else {
                 if (currentTop > halfExpandedOffset) {
-                  top = halfExpandedOffset;
                   targetState = STATE_HALF_EXPANDED;
                 } else {
-                  top = getExpandedOffset();
                   targetState = STATE_EXPANDED;
                 }
               }
@@ -1684,17 +1661,13 @@ public void onViewReleased(@NonNull View releasedChild, float xvel, float yvel)
             // otherwise settle to closest expanded state.
             if ((Math.abs(xvel) < Math.abs(yvel) && yvel > SIGNIFICANT_VEL_THRESHOLD)
                 || releasedLow(releasedChild)) {
-              top = parentHeight;
               targetState = STATE_HIDDEN;
             } else if (fitToContents) {
-              top = fitToContentsOffset;
               targetState = STATE_EXPANDED;
             } else if (Math.abs(releasedChild.getTop() - getExpandedOffset())
                 < Math.abs(releasedChild.getTop() - halfExpandedOffset)) {
-              top = getExpandedOffset();
               targetState = STATE_EXPANDED;
             } else {
-              top = halfExpandedOffset;
               targetState = STATE_HALF_EXPANDED;
             }
           } else if (yvel == 0.f || Math.abs(xvel) > Math.abs(yvel)) {
@@ -1704,23 +1677,18 @@ public void onViewReleased(@NonNull View releasedChild, float xvel, float yvel)
             if (fitToContents) {
               if (Math.abs(currentTop - fitToContentsOffset)
                   < Math.abs(currentTop - collapsedOffset)) {
-                top = fitToContentsOffset;
                 targetState = STATE_EXPANDED;
               } else {
-                top = collapsedOffset;
                 targetState = STATE_COLLAPSED;
               }
             } else {
               if (currentTop < halfExpandedOffset) {
                 if (currentTop < Math.abs(currentTop - collapsedOffset)) {
-                  top = getExpandedOffset();
                   targetState = STATE_EXPANDED;
                 } else {
                   if (shouldSkipHalfExpandedStateWhenDragging()) {
-                    top = collapsedOffset;
                     targetState = STATE_COLLAPSED;
                   } else {
-                    top = halfExpandedOffset;
                     targetState = STATE_HALF_EXPANDED;
                   }
                 }
@@ -1728,21 +1696,17 @@ public void onViewReleased(@NonNull View releasedChild, float xvel, float yvel)
                 if (Math.abs(currentTop - halfExpandedOffset)
                     < Math.abs(currentTop - collapsedOffset)) {
                   if (shouldSkipHalfExpandedStateWhenDragging()) {
-                    top = collapsedOffset;
                     targetState = STATE_COLLAPSED;
                   } else {
-                    top = halfExpandedOffset;
                     targetState = STATE_HALF_EXPANDED;
                   }
                 } else {
-                  top = collapsedOffset;
                   targetState = STATE_COLLAPSED;
                 }
               }
             }
           } else { // Moving Down
             if (fitToContents) {
-              top = collapsedOffset;
               targetState = STATE_COLLAPSED;
             } else {
               // Settle to the nearest correct height.
@@ -1750,19 +1714,16 @@ public void onViewReleased(@NonNull View releasedChild, float xvel, float yvel)
               if (Math.abs(currentTop - halfExpandedOffset)
                   < Math.abs(currentTop - collapsedOffset)) {
                 if (shouldSkipHalfExpandedStateWhenDragging()) {
-                  top = collapsedOffset;
                   targetState = STATE_COLLAPSED;
                 } else {
-                  top = halfExpandedOffset;
                   targetState = STATE_HALF_EXPANDED;
                 }
               } else {
-                top = collapsedOffset;
                 targetState = STATE_COLLAPSED;
               }
             }
           }
-          startSettlingAnimation(releasedChild, targetState, top, shouldSkipSmoothAnimation());
+          startSettling(releasedChild, targetState, shouldSkipSmoothAnimation());
         }
 
         @Override
@@ -1888,29 +1849,33 @@ public int getLastStableState() {
     return lastStableState;
   }
 
-  private class SettleRunnable implements Runnable {
+  private class StateSettlingTracker {
+    @State private int targetState;
+    private boolean isContinueSettlingRunnablePosted;
 
-    private final WeakReference<View> viewRef;
-
-    private boolean isPosted;
-
-    @State int targetState;
+    private final Runnable continueSettlingRunnable =
+        new Runnable() {
+          @Override
+          public void run() {
+            isContinueSettlingRunnablePosted = false;
+            if (viewDragHelper != null && viewDragHelper.continueSettling(true)) {
+              continueSettlingToState(targetState);
+            } else if (state == STATE_SETTLING) {
+              setStateInternal(targetState);
+            }
+            // In other cases, settling has been interrupted by certain UX interactions. Do nothing.
+          }
+        };
 
-    SettleRunnable(View view, @State int targetState) {
-      this.viewRef = new WeakReference<>(view);
+    void continueSettlingToState(@State int targetState) {
+      if (viewRef == null || viewRef.get() == null) {
+        return;
+      }
       this.targetState = targetState;
-    }
-
-    @Override
-    public void run() {
-      if (viewRef.get() != null
-          && viewDragHelper != null
-          && viewDragHelper.continueSettling(true)) {
-        ViewCompat.postOnAnimation(viewRef.get(), this);
-      } else {
-        setStateInternal(targetState);
+      if (!isContinueSettlingRunnablePosted) {
+        ViewCompat.postOnAnimation(viewRef.get(), continueSettlingRunnable);
+        isContinueSettlingRunnablePosted = true;
       }
-      this.isPosted = false;
     }
   }