diff --git a/lib/ads/ad_manager.js b/lib/ads/ad_manager.js
index 7f71378fed..d641756fb9 100644
--- a/lib/ads/ad_manager.js
+++ b/lib/ads/ad_manager.js
@@ -21,6 +21,7 @@ goog.require('shaka.util.Error');
 goog.require('shaka.util.FakeEvent');
 goog.require('shaka.util.FakeEventTarget');
 goog.require('shaka.util.IReleasable');
+goog.require('shaka.util.TXml');
 
 
 /**
@@ -843,14 +844,22 @@ shaka.ads.AdManager = class extends shaka.util.FakeEventTarget {
     if (this.config_ && this.config_.disableDASHInterstitial) {
       return;
     }
-    if (region.schemeIdUri != 'urn:mpeg:dash:event:alternativeMPD:2022') {
-      return;
-    }
-    if (!this.interstitialAdManager_) {
-      this.initInterstitial(/* adContainer= */ null, basePlayer, baseVideo);
-    }
-    if (this.interstitialAdManager_) {
-      this.interstitialAdManager_.addRegion(region);
+    if (region.schemeIdUri == 'urn:mpeg:dash:event:alternativeMPD:2022') {
+      if (!this.interstitialAdManager_) {
+        this.initInterstitial(/* adContainer= */ null, basePlayer, baseVideo);
+      }
+      if (this.interstitialAdManager_) {
+        this.interstitialAdManager_.addRegion(region);
+      }
+    } else if (region.schemeIdUri == 'urn:mpeg:dash:event:2012' &&
+        region.eventNode &&
+        shaka.util.TXml.findChild(region.eventNode, 'OverlayEvent')) {
+      if (!this.interstitialAdManager_) {
+        this.initInterstitial(/* adContainer= */ null, basePlayer, baseVideo);
+      }
+      if (this.interstitialAdManager_) {
+        this.interstitialAdManager_.addOverlayRegion(region);
+      }
     }
   }
 
diff --git a/lib/ads/interstitial_ad_manager.js b/lib/ads/interstitial_ad_manager.js
index f32881651c..4dfd57421a 100644
--- a/lib/ads/interstitial_ad_manager.js
+++ b/lib/ads/interstitial_ad_manager.js
@@ -359,6 +359,99 @@ shaka.ads.InterstitialAdManager = class {
     this.addInterstitials([interstitial]);
   }
 
+  /**
+   * @param {shaka.extern.TimelineRegionInfo} region
+   */
+  addOverlayRegion(region) {
+    const TXml = shaka.util.TXml;
+
+    goog.asserts.assert(region.eventNode, 'Need a region eventNode');
+    const overlayEvent = TXml.findChild(region.eventNode, 'OverlayEvent');
+    const uri = overlayEvent.attributes['uri'];
+    const mimeType = overlayEvent.attributes['mimeType'];
+    const loop = overlayEvent.attributes['loop'] == 'true';
+    if (!uri || !mimeType) {
+      shaka.log.warning('Unsupported OverlayEvent', region);
+      return;
+    }
+
+    const viewport = TXml.findChild(overlayEvent, 'Viewport');
+    const topLeft = TXml.findChild(overlayEvent, 'TopLeft');
+    const size = TXml.findChild(overlayEvent, 'Size');
+    if (!viewport || !topLeft || !size) {
+      shaka.log.warning('Unsupported OverlayEvent', region);
+      return;
+    }
+    const viewportX = TXml.parseAttr(viewport, 'x', TXml.parseInt);
+    if (viewportX == null) {
+      shaka.log.warning('Unsupported OverlayEvent', region);
+      return;
+    }
+    const viewportY = TXml.parseAttr(viewport, 'y', TXml.parseInt);
+    if (viewportY == null) {
+      shaka.log.warning('Unsupported OverlayEvent', region);
+      return;
+    }
+    const topLeftX = TXml.parseAttr(topLeft, 'x', TXml.parseInt);
+    if (topLeftX == null) {
+      shaka.log.warning('Unsupported OverlayEvent', region);
+      return;
+    }
+    const topLeftY = TXml.parseAttr(topLeft, 'y', TXml.parseInt);
+    if (topLeftY == null) {
+      shaka.log.warning('Unsupported OverlayEvent', region);
+      return;
+    }
+    const sizeX = TXml.parseAttr(size, 'x', TXml.parseInt);
+    if (sizeX == null) {
+      shaka.log.warning('Unsupported OverlayEvent', region);
+      return;
+    }
+    const sizeY = TXml.parseAttr(size, 'y', TXml.parseInt);
+    if (sizeY == null) {
+      shaka.log.warning('Unsupported OverlayEvent', region);
+      return;
+    }
+
+    /** @type {!shaka.extern.AdInterstitialOverlay} */
+    const overlay = {
+      viewport: {
+        x: viewportX,
+        y: viewportY,
+      },
+      topLeft: {
+        x: topLeftX,
+        y: topLeftY,
+      },
+      size: {
+        x: sizeX,
+        y: sizeY,
+      },
+    };
+
+    /** @type {!shaka.extern.AdInterstitial} */
+    const interstitial = {
+      id: region.id,
+      startTime: region.startTime,
+      endTime: region.endTime,
+      uri,
+      mimeType,
+      isSkippable: false,
+      skipOffset: null,
+      skipFor: null,
+      canJump: true,
+      resumeOffset: null,
+      playoutLimit: null,
+      once: false,
+      pre: false,
+      post: false,
+      timelineRange: true,
+      loop,
+      overlay,
+    };
+    this.addInterstitials([interstitial]);
+  }
+
   /**
    * @param {string} url
    * @return {!Promise}
diff --git a/test/ads/interstitial_ad_manager_unit.js b/test/ads/interstitial_ad_manager_unit.js
index bcb94e5c5c..4627ec717d 100644
--- a/test/ads/interstitial_ad_manager_unit.js
+++ b/test/ads/interstitial_ad_manager_unit.js
@@ -818,6 +818,68 @@ describe('Interstitial Ad manager', () => {
 
       expect(onEventSpy).not.toHaveBeenCalled();
     });
+
+    it('supports overlay events', async () => {
+      const eventString = [
+        '<Event duration="1" id="OVERLAY" presentationTime="0">',
+        '<OverlayEvent mimeType="application/dash+xml" uri="test.mpd">',
+        '<Viewport x="1920" y="1080"/>',
+        '<TopLeft x="0" y="720"/>',
+        '<Size x="480" y="360"/>',
+        '</OverlayEvent>',
+        '</Event>',
+      ].join('');
+      const eventNode = TXml.parseXmlString(eventString);
+      goog.asserts.assert(eventNode, 'Should have a event node!');
+      const region = {
+        startTime: 0,
+        endTime: 1,
+        id: 'OVERLAY',
+        schemeIdUri: 'urn:mpeg:dash:event:2012',
+        eventNode,
+        eventElement: TXml.txmlNodeToDomElement(eventNode),
+        value: '',
+      };
+      await interstitialAdManager.addOverlayRegion(region);
+
+      expect(onEventSpy).not.toHaveBeenCalled();
+
+      const interstitials = interstitialAdManager.getInterstitials();
+      expect(interstitials.length).toBe(1);
+      const expectedInterstitial = {
+        id: 'OVERLAY',
+        startTime: 0,
+        endTime: 1,
+        uri: 'test.mpd',
+        mimeType: 'application/dash+xml',
+        isSkippable: false,
+        skipOffset: null,
+        skipFor: null,
+        canJump: true,
+        resumeOffset: null,
+        playoutLimit: null,
+        once: false,
+        pre: false,
+        post: false,
+        timelineRange: true,
+        loop: false,
+        overlay: {
+          viewport: {
+            x: 1920,
+            y: 1080,
+          },
+          topLeft: {
+            x: 0,
+            y: 720,
+          },
+          size: {
+            x: 480,
+            y: 360,
+          },
+        },
+      };
+      expect(interstitials[0]).toEqual(expectedInterstitial);
+    });
   });
 
   describe('custom', () => {