diff --git a/fs_mgr/libsnapshot/include/libsnapshot/snapshot.h b/fs_mgr/libsnapshot/include/libsnapshot/snapshot.h
index 5c276b4..1daa83b 100644
--- a/fs_mgr/libsnapshot/include/libsnapshot/snapshot.h
+++ b/fs_mgr/libsnapshot/include/libsnapshot/snapshot.h
@@ -142,7 +142,9 @@
     // be created, and the device must either cancel the OTA (either before
     // rebooting or after rolling back), or merge the OTA.
     // Before calling this function, all snapshots must be mapped.
-    bool FinishedSnapshotWrites();
+    // If |wipe| is set to true, wipe is scheduled after reboot, and snapshots
+    // may need to be merged before wiping.
+    bool FinishedSnapshotWrites(bool wipe);
 
     // Initiate a merge on all snapshot devices. This should only be used after an
     // update has been marked successful after booting.
@@ -452,6 +454,7 @@
 
     std::string GetSnapshotBootIndicatorPath();
     std::string GetRollbackIndicatorPath();
+    std::string GetForwardMergeIndicatorPath();
 
     // Return the name of the device holding the "snapshot" or "snapshot-merge"
     // target. This may not be the final device presented via MapSnapshot(), if
@@ -522,6 +525,17 @@
     bool ShouldDeleteSnapshot(LockedFile* lock, const std::map<std::string, bool>& flashing_status,
                               Slot current_slot, const std::string& name);
 
+    // Create or delete forward merge indicator given |wipe|. Iff wipe is scheduled,
+    // allow forward merge on FDR.
+    bool UpdateForwardMergeIndicator(bool wipe);
+
+    // Helper for HandleImminentDataWipe.
+    // Call ProcessUpdateState and handle states with special rules before data wipe. Specifically,
+    // if |allow_forward_merge| and allow-forward-merge indicator exists, initiate merge if
+    // necessary.
+    bool ProcessUpdateStateOnDataWipe(bool allow_forward_merge,
+                                      const std::function<bool()>& callback);
+
     std::string gsid_dir_;
     std::string metadata_dir_;
     std::unique_ptr<IDeviceInfo> device_;
diff --git a/fs_mgr/libsnapshot/snapshot.cpp b/fs_mgr/libsnapshot/snapshot.cpp
index 2d59f0c..c9fa28e 100644
--- a/fs_mgr/libsnapshot/snapshot.cpp
+++ b/fs_mgr/libsnapshot/snapshot.cpp
@@ -228,10 +228,17 @@
         return false;
     }
 
-    // It's okay if these fail - first-stage init performs a deeper check after
+    // It's okay if these fail:
+    // - For SnapshotBoot and Rollback, first-stage init performs a deeper check after
     // reading the indicator file, so it's not a problem if it still exists
     // after the update completes.
-    std::vector<std::string> files = {GetSnapshotBootIndicatorPath(), GetRollbackIndicatorPath()};
+    // - For ForwardMerge, FinishedSnapshotWrites asserts that the existence of the indicator
+    // matches the incoming update.
+    std::vector<std::string> files = {
+            GetSnapshotBootIndicatorPath(),
+            GetRollbackIndicatorPath(),
+            GetForwardMergeIndicatorPath(),
+    };
     for (const auto& file : files) {
         RemoveFileIfExists(file);
     }
@@ -241,7 +248,7 @@
     return WriteUpdateState(lock, UpdateState::None);
 }
 
-bool SnapshotManager::FinishedSnapshotWrites() {
+bool SnapshotManager::FinishedSnapshotWrites(bool wipe) {
     auto lock = LockExclusive();
     if (!lock) return false;
 
@@ -261,6 +268,10 @@
         return false;
     }
 
+    if (!UpdateForwardMergeIndicator(wipe)) {
+        return false;
+    }
+
     // This file is written on boot to detect whether a rollback occurred. It
     // MUST NOT exist before rebooting, otherwise, we're at risk of deleting
     // snapshots too early.
@@ -992,6 +1003,10 @@
     return metadata_dir_ + "/" + android::base::Basename(kRollbackIndicatorPath);
 }
 
+std::string SnapshotManager::GetForwardMergeIndicatorPath() {
+    return metadata_dir_ + "/allow-forward-merge";
+}
+
 void SnapshotManager::AcknowledgeMergeSuccess(LockedFile* lock) {
     RemoveAllUpdateState(lock);
 }
@@ -2435,6 +2450,12 @@
 
     ss << "Current slot: " << device_->GetSlotSuffix() << std::endl;
     ss << "Boot indicator: booting from " << GetCurrentSlot() << " slot" << std::endl;
+    ss << "Rollback indicator: "
+       << (access(GetRollbackIndicatorPath().c_str(), F_OK) == 0 ? "exists" : strerror(errno))
+       << std::endl;
+    ss << "Forward merge indicator: "
+       << (access(GetForwardMergeIndicatorPath().c_str(), F_OK) == 0 ? "exists" : strerror(errno))
+       << std::endl;
 
     bool ok = true;
     std::vector<std::string> snapshots;
@@ -2501,17 +2522,39 @@
         return false;
     }
 
-    UpdateState state = ProcessUpdateState([&]() -> bool {
-        callback();
+    auto process_callback = [&]() -> bool {
+        if (callback) {
+            callback();
+        }
         return true;
-    });
+    };
+    if (!ProcessUpdateStateOnDataWipe(true /* allow_forward_merge */, process_callback)) {
+        return false;
+    }
+
+    // Nothing should be depending on partitions now, so unmap them all.
+    if (!UnmapAllPartitions()) {
+        LOG(ERROR) << "Unable to unmap all partitions; fastboot may fail to flash.";
+    }
+    return true;
+}
+
+bool SnapshotManager::ProcessUpdateStateOnDataWipe(bool allow_forward_merge,
+                                                   const std::function<bool()>& callback) {
+    auto slot_number = SlotNumberForSlotSuffix(device_->GetSlotSuffix());
+    UpdateState state = ProcessUpdateState(callback);
     LOG(INFO) << "Update state in recovery: " << state;
     switch (state) {
         case UpdateState::MergeFailed:
             LOG(ERROR) << "Unrecoverable merge failure detected.";
             return false;
         case UpdateState::Unverified: {
-            // If an OTA was just applied but has not yet started merging, we
+            // If an OTA was just applied but has not yet started merging:
+            //
+            // - if forward merge is allowed, initiate merge and call
+            // ProcessUpdateState again.
+            //
+            // - if forward merge is not allowed, we
             // have no choice but to revert slots, because the current slot will
             // immediately become unbootable. Rather than wait for the device
             // to reboot N times until a rollback, we proactively disable the
@@ -2521,8 +2564,17 @@
             // as an error here.
             auto slot = GetCurrentSlot();
             if (slot == Slot::Target) {
+                if (allow_forward_merge &&
+                    access(GetForwardMergeIndicatorPath().c_str(), F_OK) == 0) {
+                    LOG(INFO) << "Forward merge allowed, initiating merge now.";
+                    return InitiateMerge() &&
+                           ProcessUpdateStateOnDataWipe(false /* allow_forward_merge */, callback);
+                }
+
                 LOG(ERROR) << "Reverting to old slot since update will be deleted.";
                 device_->SetSlotAsUnbootable(slot_number);
+            } else {
+                LOG(INFO) << "Booting from " << slot << " slot, no action is taken.";
             }
             break;
         }
@@ -2534,11 +2586,6 @@
         default:
             break;
     }
-
-    // Nothing should be depending on partitions now, so unmap them all.
-    if (!UnmapAllPartitions()) {
-        LOG(ERROR) << "Unable to unmap all partitions; fastboot may fail to flash.";
-    }
     return true;
 }
 
@@ -2619,5 +2666,24 @@
     return CreateResult::CREATED;
 }
 
+bool SnapshotManager::UpdateForwardMergeIndicator(bool wipe) {
+    auto path = GetForwardMergeIndicatorPath();
+
+    if (!wipe) {
+        LOG(INFO) << "Wipe is not scheduled. Deleting forward merge indicator.";
+        return RemoveFileIfExists(path);
+    }
+
+    // TODO(b/152094219): Don't forward merge if no CoW file is allocated.
+
+    LOG(INFO) << "Wipe will be scheduled. Allowing forward merge of snapshots.";
+    if (!android::base::WriteStringToFile("1", path)) {
+        PLOG(ERROR) << "Unable to write forward merge indicator: " << path;
+        return false;
+    }
+
+    return true;
+}
+
 }  // namespace snapshot
 }  // namespace android
diff --git a/fs_mgr/libsnapshot/snapshot_test.cpp b/fs_mgr/libsnapshot/snapshot_test.cpp
index 855451d..f82c082 100644
--- a/fs_mgr/libsnapshot/snapshot_test.cpp
+++ b/fs_mgr/libsnapshot/snapshot_test.cpp
@@ -320,7 +320,7 @@
     // Simulate a reboot into the new slot.
     AssertionResult SimulateReboot() {
         lock_ = nullptr;
-        if (!sm->FinishedSnapshotWrites()) {
+        if (!sm->FinishedSnapshotWrites(false)) {
             return AssertionFailure();
         }
         if (!dm_.DeleteDevice("test_partition_b")) {
@@ -424,7 +424,7 @@
 }
 
 TEST_F(SnapshotTest, NoMergeBeforeReboot) {
-    ASSERT_TRUE(sm->FinishedSnapshotWrites());
+    ASSERT_TRUE(sm->FinishedSnapshotWrites(false));
 
     // Merge should fail, since the slot hasn't changed.
     ASSERT_FALSE(sm->InitiateMerge());
@@ -440,7 +440,7 @@
 }
 
 TEST_F(SnapshotTest, FirstStageMountAfterRollback) {
-    ASSERT_TRUE(sm->FinishedSnapshotWrites());
+    ASSERT_TRUE(sm->FinishedSnapshotWrites(false));
 
     // We didn't change the slot, so we shouldn't need snapshots.
     TestDeviceInfo* info = new TestDeviceInfo(fake_super);
@@ -476,7 +476,7 @@
     lock_ = nullptr;
 
     // Done updating.
-    ASSERT_TRUE(sm->FinishedSnapshotWrites());
+    ASSERT_TRUE(sm->FinishedSnapshotWrites(false));
 
     test_device->set_slot_suffix("_b");
     ASSERT_TRUE(sm->InitiateMerge());
@@ -1007,7 +1007,7 @@
         ASSERT_TRUE(IsPartitionUnchanged(name));
     }
 
-    ASSERT_TRUE(sm->FinishedSnapshotWrites());
+    ASSERT_TRUE(sm->FinishedSnapshotWrites(false));
 
     // Simulate shutting down the device.
     ASSERT_TRUE(UnmapAll());
@@ -1139,7 +1139,7 @@
         ASSERT_TRUE(IsPartitionUnchanged(name));
     }
 
-    ASSERT_TRUE(sm->FinishedSnapshotWrites());
+    ASSERT_TRUE(sm->FinishedSnapshotWrites(false));
 
     // Simulate shutting down the device.
     ASSERT_TRUE(UnmapAll());
@@ -1171,7 +1171,7 @@
 // Test that if an update is applied but not booted into, it can be canceled.
 TEST_F(SnapshotUpdateTest, CancelAfterApply) {
     ASSERT_TRUE(sm->BeginUpdate());
-    ASSERT_TRUE(sm->FinishedSnapshotWrites());
+    ASSERT_TRUE(sm->FinishedSnapshotWrites(false));
     ASSERT_TRUE(sm->CancelUpdate());
 }
 
@@ -1188,7 +1188,7 @@
     ASSERT_TRUE(sm->BeginUpdate());
     ASSERT_TRUE(sm->CreateUpdateSnapshots(manifest_));
     ASSERT_TRUE(MapUpdateSnapshots());
-    ASSERT_TRUE(sm->FinishedSnapshotWrites());
+    ASSERT_TRUE(sm->FinishedSnapshotWrites(false));
 
     // Simulate shutting down the device.
     ASSERT_TRUE(UnmapAll());
@@ -1295,7 +1295,7 @@
         ASSERT_TRUE(IsPartitionUnchanged(name));
     }
 
-    ASSERT_TRUE(sm->FinishedSnapshotWrites());
+    ASSERT_TRUE(sm->FinishedSnapshotWrites(false));
 }
 
 TEST_F(SnapshotUpdateTest, MergeCannotRemoveCow) {
@@ -1324,7 +1324,7 @@
     ASSERT_TRUE(sm->BeginUpdate());
     ASSERT_TRUE(sm->CreateUpdateSnapshots(manifest_));
     ASSERT_TRUE(MapUpdateSnapshots());
-    ASSERT_TRUE(sm->FinishedSnapshotWrites());
+    ASSERT_TRUE(sm->FinishedSnapshotWrites(false));
 
     // Simulate shutting down the device.
     ASSERT_TRUE(UnmapAll());
@@ -1428,7 +1428,7 @@
     ASSERT_TRUE(sm->BeginUpdate());
     ASSERT_TRUE(sm->CreateUpdateSnapshots(manifest_));
     ASSERT_TRUE(MapUpdateSnapshots());
-    ASSERT_TRUE(sm->FinishedSnapshotWrites());
+    ASSERT_TRUE(sm->FinishedSnapshotWrites(false));
 
     // Simulate shutting down the device.
     ASSERT_TRUE(UnmapAll());
@@ -1460,7 +1460,7 @@
     ASSERT_TRUE(sm->BeginUpdate());
     ASSERT_TRUE(sm->CreateUpdateSnapshots(manifest_));
     ASSERT_TRUE(MapUpdateSnapshots());
-    ASSERT_TRUE(sm->FinishedSnapshotWrites());
+    ASSERT_TRUE(sm->FinishedSnapshotWrites(false));
 
     // Simulate shutting down the device.
     ASSERT_TRUE(UnmapAll());
@@ -1485,7 +1485,7 @@
     ASSERT_TRUE(sm->BeginUpdate());
     ASSERT_TRUE(sm->CreateUpdateSnapshots(manifest_));
     ASSERT_TRUE(MapUpdateSnapshots());
-    ASSERT_TRUE(sm->FinishedSnapshotWrites());
+    ASSERT_TRUE(sm->FinishedSnapshotWrites(false));
 
     // Simulate shutting down the device.
     ASSERT_TRUE(UnmapAll());
@@ -1498,7 +1498,46 @@
     ASSERT_TRUE(new_sm->HandleImminentDataWipe());
     EXPECT_EQ(new_sm->GetUpdateState(), UpdateState::None);
     EXPECT_FALSE(test_device->IsSlotUnbootable(0));
-    EXPECT_FALSE(test_device->IsSlotUnbootable(0));
+    EXPECT_FALSE(test_device->IsSlotUnbootable(1));
+}
+
+// Test update package that requests data wipe.
+TEST_F(SnapshotUpdateTest, DataWipeRequiredInPackage) {
+    AddOperationForPartitions();
+    // Execute the update.
+    ASSERT_TRUE(sm->BeginUpdate());
+    ASSERT_TRUE(sm->CreateUpdateSnapshots(manifest_));
+
+    // Write some data to target partitions.
+    for (const auto& name : {"sys_b", "vnd_b", "prd_b"}) {
+        ASSERT_TRUE(WriteSnapshotAndHash(name)) << name;
+    }
+
+    ASSERT_TRUE(sm->FinishedSnapshotWrites(true /* wipe */));
+
+    // Simulate shutting down the device.
+    ASSERT_TRUE(UnmapAll());
+
+    // Simulate a reboot into recovery.
+    auto test_device = new TestDeviceInfo(fake_super, "_b");
+    test_device->set_recovery(true);
+    auto new_sm = SnapshotManager::NewForFirstStageMount(test_device);
+
+    ASSERT_TRUE(new_sm->HandleImminentDataWipe());
+    // Manually mount metadata so that we can call GetUpdateState() below.
+    MountMetadata();
+    EXPECT_EQ(new_sm->GetUpdateState(), UpdateState::None);
+    ASSERT_FALSE(test_device->IsSlotUnbootable(1));
+    ASSERT_FALSE(test_device->IsSlotUnbootable(0));
+
+    // Now reboot into new slot.
+    test_device = new TestDeviceInfo(fake_super, "_b");
+    auto init = SnapshotManager::NewForFirstStageMount(test_device);
+    ASSERT_TRUE(init->CreateLogicalAndSnapshotPartitions("super", snapshot_timeout_));
+    // Verify that we are on the downgraded build.
+    for (const auto& name : {"sys_b", "vnd_b", "prd_b"}) {
+        ASSERT_TRUE(IsPartitionUnchanged(name)) << name;
+    }
 }
 
 TEST_F(SnapshotUpdateTest, Hashtree) {
@@ -1533,7 +1572,7 @@
     ASSERT_TRUE(WriteSnapshotAndHash("sys_b", partition_size));
 
     // Finish update.
-    ASSERT_TRUE(sm->FinishedSnapshotWrites());
+    ASSERT_TRUE(sm->FinishedSnapshotWrites(false));
 
     // Simulate shutting down the device.
     ASSERT_TRUE(UnmapAll());
@@ -1569,7 +1608,7 @@
     ASSERT_EQ(1u, table.size());
     EXPECT_TRUE(table[0].IsOverflowSnapshot());
 
-    ASSERT_FALSE(sm->FinishedSnapshotWrites())
+    ASSERT_FALSE(sm->FinishedSnapshotWrites(false))
             << "FinishedSnapshotWrites should detect overflow of CoW device.";
 }
 
@@ -1623,7 +1662,7 @@
     ASSERT_TRUE(sm->BeginUpdate());
     ASSERT_TRUE(sm->CreateUpdateSnapshots(manifest_));
     ASSERT_TRUE(MapUpdateSnapshots());
-    ASSERT_TRUE(sm->FinishedSnapshotWrites());
+    ASSERT_TRUE(sm->FinishedSnapshotWrites(false));
 
     // Simulate shutting down the device.
     ASSERT_TRUE(UnmapAll());
diff --git a/init/init.cpp b/init/init.cpp
index 6d984a2..cadd5c5 100644
--- a/init/init.cpp
+++ b/init/init.cpp
@@ -879,7 +879,9 @@
                 (*function)();
             }
         }
-        HandleControlMessages();
+        if (!IsShuttingDown()) {
+            HandleControlMessages();
+        }
     }
 
     return 0;
diff --git a/init/property_service.cpp b/init/property_service.cpp
index 8206522..a5fea7c 100644
--- a/init/property_service.cpp
+++ b/init/property_service.cpp
@@ -125,7 +125,7 @@
 
 void StopSendingMessages() {
     auto lock = std::lock_guard{accept_messages_lock};
-    accept_messages = true;
+    accept_messages = false;
 }
 
 bool CanReadProperty(const std::string& source_context, const std::string& name) {