A gas turbine engine according to an exemplary aspect of the present disclosure includes, among other things, a nacelle assembly that includes an inlet lip section and an inlet internal diffuser section downstream of the inlet lip section. A variable area fan nozzle is positioned near an aft segment of the nacelle assembly, the variable area fan nozzle adaptable to move between a first position having a first discharge airflow area and a second position having a second discharge airflow area greater than the first discharge airflow area. At least one boundary layer control device is positioned near one of the inlet lip section and the inlet internal diffuser section. A controller is configured to move the variable area fan nozzle from the first position to the second position and to actuate the at least one boundary layer control device to introduce an airflow in response to an operability condition.