diff --git a/packages/react-native/ReactAndroid/src/main/java/com/facebook/react/views/scroll/ReactHorizontalScrollView.kt b/packages/react-native/ReactAndroid/src/main/java/com/facebook/react/views/scroll/ReactHorizontalScrollView.kt
index d2ccdb5e4684..6c2f75e6c4e8 100644
--- a/packages/react-native/ReactAndroid/src/main/java/com/facebook/react/views/scroll/ReactHorizontalScrollView.kt
+++ b/packages/react-native/ReactAndroid/src/main/java/com/facebook/react/views/scroll/ReactHorizontalScrollView.kt
@@ -144,6 +144,7 @@ constructor(context: Context, private val fpsListener: FpsListener? = null) :
   private val onScrollDispatchHelper = OnScrollDispatchHelper()
   private val scroller: OverScroller? = getOverScrollerFromParent()
   private val velocityHelper = VelocityHelper()
+  private val stableTouchCoordinatesHelper = StableTouchCoordinatesHelper(this)
   private val tempRect = Rect()
   private val defaultFlingAnimator: ValueAnimator = ObjectAnimator.ofInt(this, "scrollX", 0, 0)
 
@@ -659,7 +660,9 @@ constructor(context: Context, private val fpsListener: FpsListener? = null) :
     if (!PointerEvents.canChildrenBeTouchTarget(pointerEvents)) return true
 
     try {
-      if (super.onInterceptTouchEvent(ev)) {
+      if (
+          stableTouchCoordinatesHelper.withStableCoordinates(ev) { super.onInterceptTouchEvent(it) }
+      ) {
         handleInterceptedTouchEvent(ev)
         return true
       }
@@ -738,7 +741,7 @@ constructor(context: Context, private val fpsListener: FpsListener? = null) :
     // We do not accept the touch event if this view is not supposed to receive it.
     if (!PointerEvents.canBeTouchTarget(pointerEvents)) return false
 
-    velocityHelper.calculateVelocity(ev)
+    stableTouchCoordinatesHelper.withStableCoordinates(ev) { velocityHelper.calculateVelocity(it) }
     val action = ev.actionMasked
     if ((action == MotionEvent.ACTION_UP || action == MotionEvent.ACTION_CANCEL) && dragging) {
       ReactScrollViewHelper.updateFabricScrollState(this)
@@ -760,7 +763,7 @@ constructor(context: Context, private val fpsListener: FpsListener? = null) :
     }
 
     return try {
-      super.onTouchEvent(ev)
+      stableTouchCoordinatesHelper.withStableCoordinates(ev) { super.onTouchEvent(it) }
     } catch (e: IllegalArgumentException) {
       // Log and ignore the error. This seems to be a bug in the android SDK and
       // this is the commonly accepted workaround.
diff --git a/packages/react-native/ReactAndroid/src/main/java/com/facebook/react/views/scroll/ReactScrollView.kt b/packages/react-native/ReactAndroid/src/main/java/com/facebook/react/views/scroll/ReactScrollView.kt
index bbe7af9cabfc..88162e77d728 100644
--- a/packages/react-native/ReactAndroid/src/main/java/com/facebook/react/views/scroll/ReactScrollView.kt
+++ b/packages/react-native/ReactAndroid/src/main/java/com/facebook/react/views/scroll/ReactScrollView.kt
@@ -169,6 +169,7 @@ constructor(context: Context, private val fpsListener: FpsListener? = null) :
   private val onScrollDispatchHelper = OnScrollDispatchHelper()
   private val scroller: OverScroller? = getOverScrollerFromParent()
   private val velocityHelper = VelocityHelper()
+  private val stableTouchCoordinatesHelper = StableTouchCoordinatesHelper(this)
   private val tempRect = Rect()
   private val defaultFlingAnimator: ValueAnimator = ObjectAnimator.ofInt(this, "scrollY", 0, 0)
 
@@ -562,7 +563,9 @@ constructor(context: Context, private val fpsListener: FpsListener? = null) :
     if (!PointerEvents.canChildrenBeTouchTarget(pointerEvents)) return true
 
     try {
-      if (super.onInterceptTouchEvent(ev)) {
+      if (
+          stableTouchCoordinatesHelper.withStableCoordinates(ev) { super.onInterceptTouchEvent(it) }
+      ) {
         handleInterceptedTouchEvent(ev)
         return true
       }
@@ -588,7 +591,7 @@ constructor(context: Context, private val fpsListener: FpsListener? = null) :
     if (!scrollEnabled) return false
     if (!PointerEvents.canBeTouchTarget(pointerEvents)) return false
 
-    velocityHelper.calculateVelocity(ev)
+    stableTouchCoordinatesHelper.withStableCoordinates(ev) { velocityHelper.calculateVelocity(it) }
     val action = ev.actionMasked
     if ((action == MotionEvent.ACTION_UP || action == MotionEvent.ACTION_CANCEL) && dragging) {
       ReactScrollViewHelper.updateFabricScrollState(this)
@@ -607,7 +610,7 @@ constructor(context: Context, private val fpsListener: FpsListener? = null) :
     }
 
     return try {
-      super.onTouchEvent(ev)
+      stableTouchCoordinatesHelper.withStableCoordinates(ev) { super.onTouchEvent(it) }
     } catch (e: IllegalArgumentException) {
       FLog.w(ReactConstants.TAG, "Error handling touch event.", e)
       false
diff --git a/packages/react-native/ReactAndroid/src/main/java/com/facebook/react/views/scroll/StableTouchCoordinatesHelper.kt b/packages/react-native/ReactAndroid/src/main/java/com/facebook/react/views/scroll/StableTouchCoordinatesHelper.kt
new file mode 100644
index 000000000000..55868a0a6723
--- /dev/null
+++ b/packages/react-native/ReactAndroid/src/main/java/com/facebook/react/views/scroll/StableTouchCoordinatesHelper.kt
@@ -0,0 +1,73 @@
+/*
+ * Copyright (c) Meta Platforms, Inc. and affiliates.
+ *
+ * This source code is licensed under the MIT license found in the
+ * LICENSE file in the root directory of this source tree.
+ */
+
+package com.facebook.react.views.scroll
+
+import android.view.MotionEvent
+import android.view.View
+
+internal class StableTouchCoordinatesHelper(private val view: View) {
+  private val location = IntArray(2)
+  private var downLocationX = 0
+  private var downLocationY = 0
+
+  fun <T> withStableCoordinates(ev: MotionEvent, handler: (MotionEvent) -> T): T {
+    getLayoutLocationOnScreen(location)
+    if (ev.actionMasked == MotionEvent.ACTION_DOWN) {
+      downLocationX = location[0]
+      downLocationY = location[1]
+    }
+    val screenDx = location[0] - downLocationX
+    val screenDy = location[1] - downLocationY
+    if (screenDx == 0 && screenDy == 0) {
+      return handler(ev)
+    }
+    val scaleX = getCumulativeScaleX()
+    val scaleY = getCumulativeScaleY()
+    if (scaleX == 0f || scaleY == 0f) {
+      return handler(ev)
+    }
+    val dx = screenDx / scaleX
+    val dy = screenDy / scaleY
+    ev.offsetLocation(dx, dy)
+    try {
+      return handler(ev)
+    } finally {
+      ev.offsetLocation(-dx, -dy)
+    }
+  }
+
+  private fun getCumulativeScaleX(): Float {
+    var scale = view.scaleX
+    var ancestor = view.parent
+    while (ancestor is View) {
+      scale *= ancestor.scaleX
+      ancestor = ancestor.parent
+    }
+    return scale
+  }
+
+  private fun getCumulativeScaleY(): Float {
+    var scale = view.scaleY
+    var ancestor = view.parent
+    while (ancestor is View) {
+      scale *= ancestor.scaleY
+      ancestor = ancestor.parent
+    }
+    return scale
+  }
+
+  private fun getLayoutLocationOnScreen(outLocation: IntArray) {
+    view.getLocationOnScreen(outLocation)
+    var ancestor = view.parent
+    while (ancestor is View) {
+      outLocation[0] += ancestor.scrollX
+      outLocation[1] += ancestor.scrollY
+      ancestor = ancestor.parent
+    }
+  }
+}
diff --git a/packages/react-native/ReactAndroid/src/test/java/com/facebook/react/views/scroll/StableTouchCoordinatesHelperTest.kt b/packages/react-native/ReactAndroid/src/test/java/com/facebook/react/views/scroll/StableTouchCoordinatesHelperTest.kt
new file mode 100644
index 000000000000..740ad274f09e
--- /dev/null
+++ b/packages/react-native/ReactAndroid/src/test/java/com/facebook/react/views/scroll/StableTouchCoordinatesHelperTest.kt
@@ -0,0 +1,118 @@
+/*
+ * Copyright (c) Meta Platforms, Inc. and affiliates.
+ *
+ * This source code is licensed under the MIT license found in the
+ * LICENSE file in the root directory of this source tree.
+ */
+
+package com.facebook.react.views.scroll
+
+import android.app.Activity
+import android.view.MotionEvent
+import android.view.View
+import android.widget.FrameLayout
+import org.assertj.core.api.Assertions.assertThat
+import org.junit.Before
+import org.junit.Test
+import org.junit.runner.RunWith
+import org.robolectric.Robolectric
+import org.robolectric.RobolectricTestRunner
+
+@RunWith(RobolectricTestRunner::class)
+class StableTouchCoordinatesHelperTest {
+  private lateinit var parent: FrameLayout
+  private lateinit var view: View
+  private lateinit var helper: StableTouchCoordinatesHelper
+
+  @Before
+  fun setUp() {
+    val activity = Robolectric.buildActivity(Activity::class.java).setup().get()
+    parent = FrameLayout(activity)
+    view = View(activity)
+    parent.addView(view)
+    activity.setContentView(parent)
+    parent.layout(0, 0, 1000, 2000)
+    view.layout(0, 500, 1000, 1500)
+    helper = StableTouchCoordinatesHelper(view)
+  }
+
+  @Test
+  fun passesEventUnchangedWhenViewDidNotMove() {
+    dispatch(MotionEvent.ACTION_DOWN, 100f)
+
+    assertThat(dispatch(MotionEvent.ACTION_MOVE, 80f)).isEqualTo(80f)
+  }
+
+  @Test
+  fun compensatesLayoutMovementSinceDown() {
+    dispatch(MotionEvent.ACTION_DOWN, 100f)
+    view.offsetTopAndBottom(-50)
+
+    assertThat(dispatch(MotionEvent.ACTION_MOVE, 130f)).isEqualTo(80f)
+  }
+
+  @Test
+  fun compensatesTranslationSinceDown() {
+    dispatch(MotionEvent.ACTION_DOWN, 100f)
+    view.translationY = 40f
+
+    assertThat(dispatch(MotionEvent.ACTION_MOVE, 40f)).isEqualTo(80f)
+  }
+
+  @Test
+  fun compensatesMovementOfFlippedView() {
+    view.scaleY = -1f
+    dispatch(MotionEvent.ACTION_DOWN, 100f)
+    view.offsetTopAndBottom(-50)
+
+    assertThat(dispatch(MotionEvent.ACTION_MOVE, 70f)).isEqualTo(120f)
+  }
+
+  @Test
+  fun compensatesMovementOfScaledAncestor() {
+    parent.scaleY = 2f
+    dispatch(MotionEvent.ACTION_DOWN, 100f)
+    view.offsetTopAndBottom(-50)
+
+    assertThat(dispatch(MotionEvent.ACTION_MOVE, 150f)).isEqualTo(100f)
+  }
+
+  @Test
+  fun ignoresAncestorScroll() {
+    dispatch(MotionEvent.ACTION_DOWN, 100f)
+    parent.scrollTo(0, 50)
+
+    assertThat(dispatch(MotionEvent.ACTION_MOVE, 130f)).isEqualTo(130f)
+  }
+
+  @Test
+  fun resetsReferenceOnNextDown() {
+    dispatch(MotionEvent.ACTION_DOWN, 100f)
+    view.offsetTopAndBottom(-50)
+    dispatch(MotionEvent.ACTION_UP, 100f)
+
+    dispatch(MotionEvent.ACTION_DOWN, 100f)
+
+    assertThat(dispatch(MotionEvent.ACTION_MOVE, 80f)).isEqualTo(80f)
+  }
+
+  @Test
+  fun restoresEventCoordinatesAfterHandler() {
+    dispatch(MotionEvent.ACTION_DOWN, 100f)
+    view.offsetTopAndBottom(-50)
+    val event = MotionEvent.obtain(0, 0, MotionEvent.ACTION_MOVE, 10f, 130f, 0)
+
+    helper.withStableCoordinates(event) {}
+
+    assertThat(event.x).isEqualTo(10f)
+    assertThat(event.y).isEqualTo(130f)
+    event.recycle()
+  }
+
+  private fun dispatch(action: Int, y: Float): Float {
+    val event = MotionEvent.obtain(0, 0, action, 10f, y, 0)
+    val seenY = helper.withStableCoordinates(event) { it.y }
+    event.recycle()
+    return seenY
+  }
+}
diff --git a/packages/rn-tester/js/examples/ScrollView/MovingScrollViewExample.js b/packages/rn-tester/js/examples/ScrollView/MovingScrollViewExample.js
new file mode 100644
index 000000000000..e5de97d661d3
--- /dev/null
+++ b/packages/rn-tester/js/examples/ScrollView/MovingScrollViewExample.js
@@ -0,0 +1,193 @@
+/**
+ * Copyright (c) Meta Platforms, Inc. and affiliates.
+ *
+ * This source code is licensed under the MIT license found in the
+ * LICENSE file in the root directory of this source tree.
+ *
+ * @flow strict-local
+ * @format
+ */
+
+'use strict';
+
+import type {RNTesterModuleExample} from '../../types/RNTesterTypes';
+
+import * as React from 'react';
+import {useRef, useState} from 'react';
+import {
+  FlatList,
+  Pressable,
+  ScrollView,
+  StyleSheet,
+  Text,
+  View,
+} from 'react-native';
+
+const DATA = Array.from({length: 60}, (_, index) => ({
+  id: String(index + 1),
+  text: `Item ${index + 1}`,
+}));
+
+const START = 400;
+
+type Mode = 'top' | 'translateY' | 'left' | 'inverted' | 'nested';
+const MODES: Array<Mode> = ['top', 'translateY', 'left', 'inverted', 'nested'];
+const MULTIPLIERS = [0, 1, 2];
+
+function MovingScrollViewExample(): React.Node {
+  const [mode, setMode] = useState<Mode>('top');
+  const [multiplier, setMultiplier] = useState(1);
+  return (
+    <View style={styles.container}>
+      <View style={styles.toolbar}>
+        {MODES.map(m => (
+          <Pressable
+            key={m}
+            onPress={() => setMode(m)}
+            style={[styles.button, m === mode && styles.active]}>
+            <Text>{m}</Text>
+          </Pressable>
+        ))}
+      </View>
+      <View style={styles.toolbar}>
+        {MULTIPLIERS.map(m => (
+          <Pressable
+            key={m}
+            onPress={() => setMultiplier(m)}
+            style={[styles.button, m === multiplier && styles.active]}>
+            <Text>x{m}</Text>
+          </Pressable>
+        ))}
+      </View>
+      {mode === 'nested' ? (
+        <NestedCase />
+      ) : (
+        <MovingCase
+          key={`${mode}-${multiplier}`}
+          mode={mode}
+          multiplier={multiplier}
+        />
+      )}
+    </View>
+  );
+}
+
+function MovingCase({
+  mode,
+  multiplier,
+}: {
+  mode: Mode,
+  multiplier: number,
+}): React.Node {
+  const [offset, setOffset] = useState(0);
+  const [stutters, setStutters] = useState(0);
+  const previous = useRef(0);
+  const horizontal = mode === 'left';
+  const shift = Math.max(
+    0,
+    (horizontal ? START / 2 : mode === 'inverted' ? 300 : START) -
+      offset * multiplier,
+  );
+  const moveStyle =
+    mode === 'top' || mode === 'inverted'
+      ? {top: shift}
+      : mode === 'translateY'
+        ? {transform: [{translateY: shift}]}
+        : {left: shift};
+  return (
+    <>
+      <Text style={styles.status}>
+        mode={mode} multiplier={multiplier} stutters={stutters} offset=
+        {offset.toFixed(1)}
+      </Text>
+      <View style={styles.area}>
+        <FlatList
+          data={DATA}
+          horizontal={horizontal}
+          inverted={mode === 'inverted'}
+          renderItem={({item}) => (
+            <View style={horizontal ? styles.column : styles.row}>
+              <Text>{item.text}</Text>
+            </View>
+          )}
+          style={[styles.list, moveStyle]}
+          scrollEventThrottle={16}
+          onScroll={event => {
+            const {x, y} = event.nativeEvent.contentOffset;
+            const value = horizontal ? x : y;
+            if (value < previous.current) {
+              setStutters(s => s + 1);
+            }
+            previous.current = value;
+            setOffset(value);
+          }}
+        />
+      </View>
+    </>
+  );
+}
+
+function NestedCase(): React.Node {
+  const [outer, setOuter] = useState(0);
+  const [inner, setInner] = useState(0);
+  return (
+    <>
+      <Text style={styles.status}>
+        outer={outer.toFixed(1)} inner={inner.toFixed(1)} sum=
+        {(outer + inner).toFixed(1)}
+      </Text>
+      <ScrollView
+        style={styles.container}
+        scrollEventThrottle={16}
+        onScroll={e => setOuter(e.nativeEvent.contentOffset.y)}>
+        <View style={styles.nestedHeader} />
+        <ScrollView
+          nestedScrollEnabled
+          style={styles.nestedInner}
+          scrollEventThrottle={16}
+          onScroll={e => setInner(e.nativeEvent.contentOffset.y)}>
+          {DATA.slice(0, 12).map(item => (
+            <View key={item.id} style={styles.row}>
+              <Text>{item.text}</Text>
+            </View>
+          ))}
+        </ScrollView>
+        <View style={styles.nestedFooter} />
+      </ScrollView>
+    </>
+  );
+}
+
+const styles = StyleSheet.create({
+  container: {flex: 1},
+  status: {color: 'white', backgroundColor: '#333', fontSize: 18},
+  toolbar: {flexDirection: 'row', gap: 8, padding: 4},
+  button: {padding: 8, backgroundColor: '#ddd'},
+  active: {backgroundColor: '#8f8'},
+  area: {flex: 1, backgroundColor: 'red', overflow: 'hidden'},
+  list: {
+    position: 'absolute',
+    top: 0,
+    left: 0,
+    width: '100%',
+    height: '100%',
+    backgroundColor: 'green',
+  },
+  row: {height: 50},
+  column: {width: 80, justifyContent: 'center'},
+  nestedHeader: {height: 100, backgroundColor: 'red'},
+  nestedInner: {height: 400, backgroundColor: 'green'},
+  nestedFooter: {height: 2000, backgroundColor: 'blue'},
+});
+
+exports.title = 'MovingScrollViewExample';
+exports.category = 'Basic';
+exports.description = 'ScrollView that moves while it is dragged (#38470).';
+exports.examples = [
+  {
+    title: 'Moving scroll view',
+    render(): React.MixedElement {
+      return <MovingScrollViewExample />;
+    },
+  },
+] as Array<RNTesterModuleExample>;
diff --git a/packages/rn-tester/js/utils/RNTesterList.android.js b/packages/rn-tester/js/utils/RNTesterList.android.js
index 61844bb5f196..191cea62bf9b 100644
--- a/packages/rn-tester/js/utils/RNTesterList.android.js
+++ b/packages/rn-tester/js/utils/RNTesterList.android.js
@@ -95,6 +95,11 @@ const Components: Array<RNTesterModuleInfo> = [
     category: 'Basic',
     module: require('../examples/ScrollView/ScrollViewMaintainVisibleContentPositionExample'),
   },
+  {
+    key: 'MovingScrollViewExample',
+    category: 'Basic',
+    module: require('../examples/ScrollView/MovingScrollViewExample'),
+  },
   {
     key: 'ScrollViewSimpleExample',
     category: 'Basic',