diff --git a/demos/main/src/main/java/com/google/android/exoplayer2/demo/DemoApplication.java b/demos/main/src/main/java/com/google/android/exoplayer2/demo/DemoApplication.java
index 2c9cd43d1e..6985d42b36 100644
--- a/demos/main/src/main/java/com/google/android/exoplayer2/demo/DemoApplication.java
+++ b/demos/main/src/main/java/com/google/android/exoplayer2/demo/DemoApplication.java
@@ -115,8 +115,10 @@ public class DemoApplication extends Application {
   private synchronized void initDownloadManager() {
     if (downloadManager == null) {
       DefaultDownloadIndex downloadIndex = new DefaultDownloadIndex(getDatabaseProvider());
-      upgradeActionFile(DOWNLOAD_TRACKER_ACTION_FILE, downloadIndex);
-      upgradeActionFile(DOWNLOAD_ACTION_FILE, downloadIndex);
+      upgradeActionFile(
+          DOWNLOAD_ACTION_FILE, downloadIndex, /* addNewDownloadsAsCompleted= */ false);
+      upgradeActionFile(
+          DOWNLOAD_TRACKER_ACTION_FILE, downloadIndex, /* addNewDownloadsAsCompleted= */ true);
       DownloaderConstructorHelper downloaderConstructorHelper =
           new DownloaderConstructorHelper(getDownloadCache(), buildHttpDataSourceFactory());
       downloadManager =
@@ -127,13 +129,15 @@ public class DemoApplication extends Application {
     }
   }
 
-  private void upgradeActionFile(String fileName, DefaultDownloadIndex downloadIndex) {
+  private void upgradeActionFile(
+      String fileName, DefaultDownloadIndex downloadIndex, boolean addNewDownloadsAsCompleted) {
     try {
       ActionFileUpgradeUtil.upgradeAndDelete(
           new File(getDownloadDirectory(), fileName),
           /* downloadIdProvider= */ null,
           downloadIndex,
-          /* deleteOnFailure= */ true);
+          /* deleteOnFailure= */ true,
+          addNewDownloadsAsCompleted);
     } catch (IOException e) {
       Log.e(TAG, "Failed to upgrade action file: " + fileName, e);
     }
diff --git a/library/core/src/main/java/com/google/android/exoplayer2/offline/ActionFileUpgradeUtil.java b/library/core/src/main/java/com/google/android/exoplayer2/offline/ActionFileUpgradeUtil.java
index b601874f8d..975fc10b93 100644
--- a/library/core/src/main/java/com/google/android/exoplayer2/offline/ActionFileUpgradeUtil.java
+++ b/library/core/src/main/java/com/google/android/exoplayer2/offline/ActionFileUpgradeUtil.java
@@ -52,6 +52,7 @@ public final class ActionFileUpgradeUtil {
    *     each download will be its custom cache key if one is specified, or else its URL.
    * @param downloadIndex The index into which the requests will be merged.
    * @param deleteOnFailure Whether to delete the action file if the merge fails.
+   * @param addNewDownloadsAsCompleted Whether to add new downloads as completed.
    * @throws IOException If an error occurs loading or merging the requests.
    */
   @SuppressWarnings("deprecation")
@@ -59,7 +60,8 @@ public final class ActionFileUpgradeUtil {
       File actionFilePath,
       @Nullable DownloadIdProvider downloadIdProvider,
       DefaultDownloadIndex downloadIndex,
-      boolean deleteOnFailure)
+      boolean deleteOnFailure,
+      boolean addNewDownloadsAsCompleted)
       throws IOException {
     ActionFile actionFile = new ActionFile(actionFilePath);
     if (actionFile.exists()) {
@@ -69,7 +71,7 @@ public final class ActionFileUpgradeUtil {
           if (downloadIdProvider != null) {
             request = request.copyWithId(downloadIdProvider.getId(request));
           }
-          mergeRequest(request, downloadIndex);
+          mergeRequest(request, downloadIndex, addNewDownloadsAsCompleted);
         }
         success = true;
       } finally {
@@ -85,10 +87,14 @@ public final class ActionFileUpgradeUtil {
    *
    * @param request The request to be merged.
    * @param downloadIndex The index into which the request will be merged.
+   * @param addNewDownloadAsCompleted Whether to add new downloads as completed.
    * @throws IOException If an error occurs merging the request.
    */
   /* package */ static void mergeRequest(
-      DownloadRequest request, DefaultDownloadIndex downloadIndex) throws IOException {
+      DownloadRequest request,
+      DefaultDownloadIndex downloadIndex,
+      boolean addNewDownloadAsCompleted)
+      throws IOException {
     Download download = downloadIndex.getDownload(request.id);
     if (download != null) {
       download = DownloadManager.mergeRequest(download, request, download.stopReason);
@@ -97,7 +103,7 @@ public final class ActionFileUpgradeUtil {
       download =
           new Download(
               request,
-              STATE_QUEUED,
+              addNewDownloadAsCompleted ? Download.STATE_COMPLETED : STATE_QUEUED,
               /* startTimeMs= */ nowMs,
               /* updateTimeMs= */ nowMs,
               /* contentLength= */ C.LENGTH_UNSET,
diff --git a/library/core/src/test/java/com/google/android/exoplayer2/offline/ActionFileUpgradeUtilTest.java b/library/core/src/test/java/com/google/android/exoplayer2/offline/ActionFileUpgradeUtilTest.java
index 96b8ff21bc..dba7b74e9f 100644
--- a/library/core/src/test/java/com/google/android/exoplayer2/offline/ActionFileUpgradeUtilTest.java
+++ b/library/core/src/test/java/com/google/android/exoplayer2/offline/ActionFileUpgradeUtilTest.java
@@ -88,7 +88,11 @@ public class ActionFileUpgradeUtilTest {
             new byte[] {5, 4, 3, 2, 1});
 
     ActionFileUpgradeUtil.upgradeAndDelete(
-        tempFile, /* downloadIdProvider= */ null, downloadIndex, /* deleteOnFailure= */ true);
+        tempFile,
+        /* downloadIdProvider= */ null,
+        downloadIndex,
+        /* deleteOnFailure= */ true,
+        /* addNewDownloadsAsCompleted= */ false);
 
     assertDownloadIndexContainsRequest(expectedRequest1, Download.STATE_QUEUED);
     assertDownloadIndexContainsRequest(expectedRequest2, Download.STATE_QUEUED);
@@ -108,7 +112,8 @@ public class ActionFileUpgradeUtilTest {
             /* customCacheKey= */ "key123",
             data);
 
-    ActionFileUpgradeUtil.mergeRequest(request, downloadIndex);
+    ActionFileUpgradeUtil.mergeRequest(
+        request, downloadIndex, /* addNewDownloadAsCompleted= */ false);
 
     assertDownloadIndexContainsRequest(request, Download.STATE_QUEUED);
   }
@@ -135,8 +140,10 @@ public class ActionFileUpgradeUtilTest {
             asList(streamKey2),
             /* customCacheKey= */ "key123",
             new byte[] {5, 4, 3, 2, 1});
-    ActionFileUpgradeUtil.mergeRequest(request1, downloadIndex);
-    ActionFileUpgradeUtil.mergeRequest(request2, downloadIndex);
+    ActionFileUpgradeUtil.mergeRequest(
+        request1, downloadIndex, /* addNewDownloadAsCompleted= */ false);
+    ActionFileUpgradeUtil.mergeRequest(
+        request2, downloadIndex, /* addNewDownloadAsCompleted= */ false);
 
     Download download = downloadIndex.getDownload(request2.id);
     assertThat(download).isNotNull();
@@ -148,6 +155,42 @@ public class ActionFileUpgradeUtilTest {
     assertThat(download.state).isEqualTo(Download.STATE_QUEUED);
   }
 
+  @Test
+  public void mergeRequest_addNewDownloadAsCompleted() throws IOException {
+    StreamKey streamKey1 =
+        new StreamKey(/* periodIndex= */ 3, /* groupIndex= */ 4, /* trackIndex= */ 5);
+    StreamKey streamKey2 =
+        new StreamKey(/* periodIndex= */ 0, /* groupIndex= */ 1, /* trackIndex= */ 2);
+    DownloadRequest request1 =
+        new DownloadRequest(
+            "id1",
+            TYPE_PROGRESSIVE,
+            Uri.parse("https://www.test.com/download1"),
+            asList(streamKey1),
+            /* customCacheKey= */ "key123",
+            new byte[] {1, 2, 3, 4});
+    DownloadRequest request2 =
+        new DownloadRequest(
+            "id2",
+            TYPE_PROGRESSIVE,
+            Uri.parse("https://www.test.com/download2"),
+            asList(streamKey2),
+            /* customCacheKey= */ "key123",
+            new byte[] {5, 4, 3, 2, 1});
+    ActionFileUpgradeUtil.mergeRequest(
+        request1, downloadIndex, /* addNewDownloadAsCompleted= */ false);
+
+    // Merging existing download, keeps it queued.
+    ActionFileUpgradeUtil.mergeRequest(
+        request1, downloadIndex, /* addNewDownloadAsCompleted= */ true);
+    assertThat(downloadIndex.getDownload(request1.id).state).isEqualTo(Download.STATE_QUEUED);
+
+    // New download is merged as completed.
+    ActionFileUpgradeUtil.mergeRequest(
+        request2, downloadIndex, /* addNewDownloadAsCompleted= */ true);
+    assertThat(downloadIndex.getDownload(request2.id).state).isEqualTo(Download.STATE_COMPLETED);
+  }
+
   private void assertDownloadIndexContainsRequest(DownloadRequest request, int state)
       throws IOException {
     Download download = downloadIndex.getDownload(request.id);