diff --git a/Android.mk b/Android.mk
index 65ae2de..0b30720 100644
--- a/Android.mk
+++ b/Android.mk
@@ -380,6 +380,10 @@
 LOCAL_CPPFLAGS := $(ue_common_cppflags)
 LOCAL_LDFLAGS := $(ue_common_ldflags)
 LOCAL_C_INCLUDES :=  $(ue_common_c_includes)
+#TODO(deymo): Remove external/cros/system_api/dbus once the strings are moved
+# out of the DBus interface.
+LOCAL_C_INCLUDES += \
+    external/cros/system_api/dbus
 LOCAL_STATIC_LIBRARIES := \
     $(ue_libupdate_engine_android_exported_static_libraries:-host=)
 LOCAL_SHARED_LIBRARIES += \
@@ -395,7 +399,8 @@
     daemon_state_android.cc \
     hardware_android.cc \
     proxy_resolver.cc \
-    update_attempter_android.cc
+    update_attempter_android.cc \
+    update_status_utils.cc
 include $(BUILD_STATIC_LIBRARY)
 
 endif  # !defined(BRILLO)
diff --git a/binder_bindings/android/os/IUpdateEngine.aidl b/binder_bindings/android/os/IUpdateEngine.aidl
index 4245254..4c60eed 100644
--- a/binder_bindings/android/os/IUpdateEngine.aidl
+++ b/binder_bindings/android/os/IUpdateEngine.aidl
@@ -27,4 +27,5 @@
   void suspend();
   void resume();
   void cancel();
+  void resetStatus();
 }
diff --git a/binder_service_android.cc b/binder_service_android.cc
index e275319..872f64c 100644
--- a/binder_service_android.cc
+++ b/binder_service_android.cc
@@ -121,6 +121,13 @@
   return Status::ok();
 }
 
+Status BinderUpdateEngineAndroidService::resetStatus() {
+  brillo::ErrorPtr error;
+  if (!service_delegate_->ResetStatus(&error))
+    return ErrorPtrToStatus(error);
+  return Status::ok();
+}
+
 void BinderUpdateEngineAndroidService::UnbindCallback(
     IUpdateEngineCallback* callback) {
   auto it =
diff --git a/binder_service_android.h b/binder_service_android.h
index 0a82b82..47e76a7 100644
--- a/binder_service_android.h
+++ b/binder_service_android.h
@@ -67,6 +67,7 @@
   android::binder::Status suspend() override;
   android::binder::Status resume() override;
   android::binder::Status cancel() override;
+  android::binder::Status resetStatus() override;
 
  private:
   // Remove the passed |callback| from the list of registered callbacks. Called
diff --git a/service_delegate_android_interface.h b/service_delegate_android_interface.h
index 62e6540..7dae40f 100644
--- a/service_delegate_android_interface.h
+++ b/service_delegate_android_interface.h
@@ -64,6 +64,12 @@
   // sets |error| accordingly.
   virtual bool CancelUpdate(brillo::ErrorPtr* error) = 0;
 
+  // Reset the already applied update back to an idle state. This method can
+  // only be called when no update attempt is going on, and it will reset the
+  // status back to idle, deleting the currently applied update if any. In case
+  // of error, returns false and sets |error| accordingly.
+  virtual bool ResetStatus(brillo::ErrorPtr* error) = 0;
+
  protected:
   ServiceDelegateAndroidInterface() = default;
 };
diff --git a/update_attempter_android.cc b/update_attempter_android.cc
index f7bcab1..90501fb 100644
--- a/update_attempter_android.cc
+++ b/update_attempter_android.cc
@@ -35,6 +35,7 @@
 #include "update_engine/payload_consumer/download_action.h"
 #include "update_engine/payload_consumer/filesystem_verifier_action.h"
 #include "update_engine/payload_consumer/postinstall_runner_action.h"
+#include "update_engine/update_status_utils.h"
 
 using base::Bind;
 using base::TimeDelta;
@@ -199,6 +200,44 @@
   return LogAndSetError(error, FROM_HERE, "Cancel not implemented");
 }
 
+bool UpdateAttempterAndroid::ResetStatus(brillo::ErrorPtr* error) {
+  LOG(INFO) << "Attempting to reset state from "
+            << UpdateStatusToString(status_) << " to UpdateStatus::IDLE";
+
+  switch (status_) {
+    case UpdateStatus::IDLE:
+      return true;
+
+    case UpdateStatus::UPDATED_NEED_REBOOT:  {
+      // Remove the reboot marker so that if the machine is rebooted
+      // after resetting to idle state, it doesn't go back to
+      // UpdateStatus::UPDATED_NEED_REBOOT state.
+      bool ret_value = prefs_->Delete(kPrefsUpdateCompletedOnBootId);
+
+      // Update the boot flags so the current slot has higher priority.
+      if (!boot_control_->SetActiveBootSlot(boot_control_->GetCurrentSlot()))
+        ret_value = false;
+
+      if (!ret_value) {
+        return LogAndSetError(
+            error,
+            FROM_HERE,
+            "Failed to reset the status to ");
+      }
+
+      SetStatusAndNotify(UpdateStatus::IDLE);
+      LOG(INFO) << "Reset status successful";
+      return true;
+    }
+
+    default:
+      return LogAndSetError(
+          error,
+          FROM_HERE,
+          "Reset not allowed in this state. Cancel the ongoing update first");
+  }
+}
+
 void UpdateAttempterAndroid::ProcessingDone(const ActionProcessor* processor,
                                             ErrorCode code) {
   LOG(INFO) << "Processing Done.";
diff --git a/update_attempter_android.h b/update_attempter_android.h
index 96b584c..0d74d56 100644
--- a/update_attempter_android.h
+++ b/update_attempter_android.h
@@ -63,6 +63,7 @@
   bool SuspendUpdate(brillo::ErrorPtr* error) override;
   bool ResumeUpdate(brillo::ErrorPtr* error) override;
   bool CancelUpdate(brillo::ErrorPtr* error) override;
+  bool ResetStatus(brillo::ErrorPtr* error) override;
 
   // ActionProcessorDelegate methods:
   void ProcessingDone(const ActionProcessor* processor,
diff --git a/update_engine_client_android.cc b/update_engine_client_android.cc
index 3006a6f..989a97e 100644
--- a/update_engine_client_android.cc
+++ b/update_engine_client_android.cc
@@ -124,6 +124,7 @@
   DEFINE_bool(suspend, false, "Suspend an ongoing update and exit.");
   DEFINE_bool(resume, false, "Resume a suspended update.");
   DEFINE_bool(cancel, false, "Cancel the ongoing update and exit.");
+  DEFINE_bool(reset_status, false, "Reset an already applied update and exit.");
   DEFINE_bool(follow,
               false,
               "Follow status update changes until a final state is reached. "
@@ -174,6 +175,10 @@
     return ExitWhenIdle(service_->cancel());
   }
 
+  if (FLAGS_reset_status) {
+    return ExitWhenIdle(service_->resetStatus());
+  }
+
   if (FLAGS_follow) {
     // Register a callback object with the service.
     callback_ = new UECallback(this);