diff --git a/core/camera/src/androidTest/java/com/google/jetpackcamera/core/camera/CameraXCameraSystemTest.kt b/core/camera/src/androidTest/java/com/google/jetpackcamera/core/camera/CameraXCameraSystemTest.kt
index a4f34d8a4..7b29d42c4 100644
--- a/core/camera/src/androidTest/java/com/google/jetpackcamera/core/camera/CameraXCameraSystemTest.kt
+++ b/core/camera/src/androidTest/java/com/google/jetpackcamera/core/camera/CameraXCameraSystemTest.kt
@@ -39,11 +39,13 @@ import com.google.jetpackcamera.model.FlashMode
 import com.google.jetpackcamera.model.Illuminant
 import com.google.jetpackcamera.model.LensFacing
 import com.google.jetpackcamera.model.SaveLocation
+import com.google.jetpackcamera.model.StabilizationMode
 import com.google.jetpackcamera.settings.ConstraintsRepository
 import com.google.jetpackcamera.settings.SettableConstraintsRepository
 import com.google.jetpackcamera.settings.SettableConstraintsRepositoryImpl
 import com.google.jetpackcamera.settings.model.CameraAppSettings
 import com.google.jetpackcamera.settings.model.DEFAULT_CAMERA_APP_SETTINGS
+import com.google.jetpackcamera.settings.model.forCurrentLens
 import java.io.File
 import java.util.AbstractMap
 import javax.inject.Provider
@@ -225,6 +227,60 @@ class CameraXCameraSystemTest {
         recordingComplete.await()
     }
 
+    @Test
+    fun setStabilizationMode_on_updatesCameraState(): Unit = runBlocking {
+        runSetStabilizationModeTest(StabilizationMode.ON)
+    }
+
+    @Test
+    fun setStabilizationMode_optical_updatesCameraState(): Unit = runBlocking {
+        runSetStabilizationModeTest(StabilizationMode.OPTICAL)
+    }
+
+    @Test
+    fun setStabilizationMode_highQuality_updatesCameraState(): Unit = runBlocking {
+        runSetStabilizationModeTest(StabilizationMode.HIGH_QUALITY)
+    }
+
+    private suspend fun CoroutineScope.runSetStabilizationModeTest(
+        stabilizationMode: StabilizationMode
+    ) {
+        // Arrange.
+        val constraintsRepository = SettableConstraintsRepositoryImpl()
+        val appSettings = DEFAULT_CAMERA_APP_SETTINGS
+        val cameraConstraints =
+            constraintsRepository.systemConstraints.value?.forCurrentLens(appSettings)
+        assume().withMessage("Stabilisation $stabilizationMode not supported, skip the test.")
+            .that(
+                cameraConstraints != null && cameraConstraints.supportedStabilizationModes.contains(
+                    stabilizationMode
+                )
+            ).isTrue()
+        val cameraSystem = createAndInitCameraXCameraSystem(
+            appSettings = appSettings,
+            constraintsRepository = constraintsRepository
+        )
+        cameraSystem.startCameraAndWaitUntilRunning()
+
+        val stabilizationCheck: ReceiveChannel<Boolean> = cameraSystem.getCurrentCameraState()
+            .map { it.stabilizationMode == stabilizationMode }
+            .produceIn(this)
+        stabilizationCheck.awaitValue(false)
+
+        // Act.
+        cameraSystem.setStabilizationMode(stabilizationMode)
+        val result = cameraSystem.takePicture(context.contentResolver, SaveLocation.Default) {}
+
+        // Assert.
+        stabilizationCheck.awaitValue(true)
+
+        // Clean-up.
+        if (result.savedUri != null) {
+            filesToDelete.add(result.savedUri!!)
+        }
+        stabilizationCheck.cancel()
+    }
+
     @Test
     fun recordVideoWithFlashModeOn_shouldEnableTorch(): Unit = runBlocking {
         // Arrange.
diff --git a/core/camera/src/main/java/com/google/jetpackcamera/core/camera/CameraSession.kt b/core/camera/src/main/java/com/google/jetpackcamera/core/camera/CameraSession.kt
index aaf147f53..ba32a8e59 100644
--- a/core/camera/src/main/java/com/google/jetpackcamera/core/camera/CameraSession.kt
+++ b/core/camera/src/main/java/com/google/jetpackcamera/core/camera/CameraSession.kt
@@ -751,10 +751,23 @@ private fun createPreviewUseCase(
 
     // set preview stabilization
     when (stabilizationMode) {
-        StabilizationMode.ON -> setPreviewStabilizationEnabled(true)
-        StabilizationMode.OPTICAL -> setOpticalStabilizationModeEnabled(true)
-        StabilizationMode.OFF -> setOpticalStabilizationModeEnabled(false)
-        StabilizationMode.HIGH_QUALITY -> {} // No-op. Handled by VideoCapture use case.
+        StabilizationMode.ON -> {
+            setPreviewStabilizationEnabled(true)
+            setOpticalStabilizationModeEnabled(false)
+        }
+
+        StabilizationMode.OPTICAL -> {
+            setPreviewStabilizationEnabled(false)
+            setOpticalStabilizationModeEnabled(true)
+        }
+        StabilizationMode.OFF -> {
+            setPreviewStabilizationEnabled(false)
+            setOpticalStabilizationModeEnabled(false)
+        }
+        StabilizationMode.HIGH_QUALITY -> {
+            setPreviewStabilizationEnabled(false)
+            setOpticalStabilizationModeEnabled(false)
+        } // Handled by VideoCapture use case.
         else -> throw UnsupportedOperationException(
             "Unexpected stabilization mode: $stabilizationMode. Stabilization mode should always " +
                 "an explicit mode, such as ON, OPTICAL, OFF or HIGH_QUALITY"