diff --git a/core/modules/layout_builder/src/Cache/LayoutBuilderIsActiveCacheContext.php b/core/modules/layout_builder/src/Cache/LayoutBuilderIsActiveCacheContext.php
index 5edec7f0e5dc24dcdf52fc50425eb6825322189d..ae174d54a7efaf62709a580310f67dee653c9c4f 100644
--- a/core/modules/layout_builder/src/Cache/LayoutBuilderIsActiveCacheContext.php
+++ b/core/modules/layout_builder/src/Cache/LayoutBuilderIsActiveCacheContext.php
@@ -4,15 +4,17 @@
 
 use Drupal\Core\Cache\CacheableMetadata;
 use Drupal\Core\Cache\Context\CalculatedCacheContextInterface;
+use Drupal\Core\Entity\Entity\EntityViewDisplay;
+use Drupal\Core\Entity\FieldableEntityInterface;
 use Drupal\Core\Routing\RouteMatchInterface;
-use Drupal\layout_builder\OverridesSectionStorageInterface;
+use Drupal\layout_builder\Entity\LayoutEntityDisplayInterface;
 
 /**
  * Determines whether Layout Builder is active for a given entity type or not.
  *
  * Cache context ID: 'layout_builder_is_active:%entity_type_id', e.g.
- * 'layout_builder_is_active:node' (to vary by whether the Node entity type has
- * Layout Builder enabled).
+ * 'layout_builder_is_active:node' (to vary by whether custom layout overrides
+ * are allowed for the Node entity specified by the route parameter).
  *
  * @internal
  *   Tagged services are internal.
@@ -81,8 +83,14 @@ public function getCacheableMetadata($entity_type_id = NULL) {
    */
   protected function getDisplay($entity_type_id) {
     if ($entity = $this->routeMatch->getParameter($entity_type_id)) {
-      if ($entity instanceof OverridesSectionStorageInterface) {
-        return $entity->getDefaultSectionStorage();
+      if ($entity instanceof FieldableEntityInterface) {
+        // @todo Expand to work for all view modes in
+        //   https://www.drupal.org/node/2907413.
+        $view_mode = 'full';
+        $display = EntityViewDisplay::collectRenderDisplay($entity, $view_mode);
+        if ($display instanceof LayoutEntityDisplayInterface) {
+          return $display;
+        }
       }
     }
   }
diff --git a/core/modules/layout_builder/tests/src/Unit/LayoutBuilderIsActiveCacheContextTest.php b/core/modules/layout_builder/tests/src/Unit/LayoutBuilderIsActiveCacheContextTest.php
new file mode 100644
index 0000000000000000000000000000000000000000..f62e0428950b95a99b778596446859957102c06f
--- /dev/null
+++ b/core/modules/layout_builder/tests/src/Unit/LayoutBuilderIsActiveCacheContextTest.php
@@ -0,0 +1,110 @@
+<?php
+
+namespace Drupal\Tests\layout_builder\Unit;
+
+use Drupal\Core\DependencyInjection\ContainerBuilder;
+use Drupal\Core\Entity\EntityStorageInterface;
+use Drupal\Core\Entity\EntityTypeManagerInterface;
+use Drupal\Core\Entity\FieldableEntityInterface;
+use Drupal\Core\Entity\Query\QueryInterface;
+use Drupal\Core\Extension\ModuleHandlerInterface;
+use Drupal\Core\Routing\RouteMatchInterface;
+use Drupal\layout_builder\Cache\LayoutBuilderIsActiveCacheContext;
+use Drupal\layout_builder\Entity\LayoutEntityDisplayInterface;
+use Drupal\Tests\UnitTestCase;
+use Prophecy\Argument;
+
+/**
+ * @coversDefaultClass \Drupal\layout_builder\Cache\LayoutBuilderIsActiveCacheContext
+ *
+ * @group layout_builder
+ */
+class LayoutBuilderIsActiveCacheContextTest extends UnitTestCase {
+
+  /**
+   * @covers ::getContext
+   */
+  public function testGetContextMissingEntityTypeId() {
+    $route_match = $this->prophesize(RouteMatchInterface::class);
+    $cache_context = new LayoutBuilderIsActiveCacheContext($route_match->reveal());
+    $this->expectException(\LogicException::class);
+    $this->expectExceptionMessage('Missing entity type ID');
+    $cache_context->getContext();
+  }
+
+  /**
+   * @covers ::getContext
+   * @covers ::getDisplay
+   */
+  public function testGetContextNonFieldableEntity() {
+    $route_match = $this->prophesize(RouteMatchInterface::class);
+    $route_match->getParameter('not_a_fieldable_entity')->willReturn('something that is not a fieldable entity');
+
+    $cache_context = new LayoutBuilderIsActiveCacheContext($route_match->reveal());
+    $expected = '0';
+    $actual = $cache_context->getContext('not_a_fieldable_entity');
+    $this->assertSame($expected, $actual);
+  }
+
+  /**
+   * @covers ::getContext
+   * @covers ::getDisplay
+   *
+   * @dataProvider providerTestGetContext
+   */
+  public function testGetContext($is_overridden, $expected) {
+    $entity_display = $this->prophesize(LayoutEntityDisplayInterface::class);
+    $entity_display->isOverridable()->willReturn($is_overridden);
+
+    $entity_type_id = 'a_fieldable_entity_type';
+    $fieldable_entity = $this->prophesize(FieldableEntityInterface::class);
+    $fieldable_entity->getEntityTypeId()->willReturn($entity_type_id);
+    $fieldable_entity->bundle()->willReturn('the_bundle_id');
+
+    $route_match = $this->prophesize(RouteMatchInterface::class);
+    $route_match->getParameter($entity_type_id)->willReturn($fieldable_entity->reveal());
+
+    // \Drupal\Core\Entity\Entity\EntityViewDisplay::collectRenderDisplay() is a
+    // static method and can not be mocked on its own. All of the expectations
+    // of that method are mocked in the next code block.
+    $entity_query = $this->prophesize(QueryInterface::class);
+    $entity_query->condition(Argument::cetera())->willReturn($entity_query);
+    $entity_query->execute()->willReturn([
+      'a_fieldable_entity_type.the_bundle_id.full' => 'a_fieldable_entity_type.the_bundle_id.full',
+    ]);
+    $entity_storage = $this->prophesize(EntityStorageInterface::class);
+    $entity_storage->getQuery('AND')->willReturn($entity_query->reveal());
+    $entity_storage->loadMultiple(Argument::type('array'))->willReturn([
+      'a_fieldable_entity_type.the_bundle_id.full' => $entity_display->reveal(),
+    ]);
+    $entity_type_manager = $this->prophesize(EntityTypeManagerInterface::class);
+    $entity_type_manager->getStorage('entity_view_display')->willReturn($entity_storage->reveal());
+    $module_handler = $this->prophesize(ModuleHandlerInterface::class);
+
+    $container = new ContainerBuilder();
+    $container->set('entity_type.manager', $entity_type_manager->reveal());
+    $container->set('module_handler', $module_handler->reveal());
+    \Drupal::setContainer($container);
+
+    $cache_context = new LayoutBuilderIsActiveCacheContext($route_match->reveal());
+    $actual = $cache_context->getContext($entity_type_id);
+    $this->assertSame($expected, $actual);
+  }
+
+  /**
+   * Provides test data for ::testGetContext().
+   */
+  public function providerTestGetContext() {
+    $data = [];
+    $data['overridden'] = [
+      TRUE,
+      '1',
+    ];
+    $data['not overridden'] = [
+      FALSE,
+      '0',
+    ];
+    return $data;
+  }
+
+}