diff --git a/BUILD.gn b/BUILD.gn
index 59aa004..b1719e2 100644
--- a/BUILD.gn
+++ b/BUILD.gn
@@ -533,6 +533,7 @@
       "update_boot_flags_action_unittest.cc",
       "update_manager/boxed_value_unittest.cc",
       "update_manager/chromeos_policy_unittest.cc",
+      "update_manager/enterprise_device_policy_impl_unittest.cc",
       "update_manager/evaluation_context_unittest.cc",
       "update_manager/generic_variables_unittest.cc",
       "update_manager/prng_unittest.cc",
diff --git a/mock_update_attempter.h b/mock_update_attempter.h
index cc05648..d502222 100644
--- a/mock_update_attempter.h
+++ b/mock_update_attempter.h
@@ -30,17 +30,20 @@
  public:
   using UpdateAttempter::UpdateAttempter;
 
-  MOCK_METHOD10(Update,
-                void(const std::string& app_version,
-                     const std::string& omaha_url,
-                     const std::string& target_channel,
-                     const std::string& lts_tag,
-                     const std::string& target_version_prefix,
-                     bool rollback_allowed,
-                     bool rollback_data_save_requested,
-                     int rollback_allowed_milestones,
-                     bool obey_proxies,
-                     bool interactive));
+  MOCK_METHOD(void,
+              Update,
+              (const std::string& app_version,
+               const std::string& omaha_url,
+               const std::string& target_channel,
+               const std::string& lts_tag,
+               const std::string& target_version_prefix,
+               bool rollback_allowed,
+               bool rollback_data_save_requested,
+               int rollback_allowed_milestones,
+               bool rollback_on_channel_downgrade,
+               bool obey_proxies,
+               bool interactive),
+              (override));
 
   MOCK_METHOD1(GetStatus, bool(update_engine::UpdateEngineStatus* out_status));
 
diff --git a/omaha_request_params.h b/omaha_request_params.h
index aad9290..5d30d58 100644
--- a/omaha_request_params.h
+++ b/omaha_request_params.h
@@ -302,6 +302,10 @@
   void set_is_powerwash_allowed(bool powerwash_allowed) {
     mutable_image_props_.is_powerwash_allowed = powerwash_allowed;
   }
+  bool is_powerwash_allowed() {
+    return mutable_image_props_.is_powerwash_allowed;
+  }
+
   void set_device_requisition(const std::string& requisition) {
     device_requisition_ = requisition;
   }
diff --git a/omaha_response_handler_action.cc b/omaha_response_handler_action.cc
index 040f8e7..92e0a72 100644
--- a/omaha_response_handler_action.cc
+++ b/omaha_response_handler_action.cc
@@ -188,10 +188,12 @@
   }
 
   // Powerwash if either the response requires it or the parameters indicated
-  // powerwash and we are downgrading the version.
+  // powerwash (usually because there was a channel downgrade) and we are
+  // downgrading the version. Enterprise rollback, indicated by
+  // |response.is_rollback| is dealt with separately above.
   if (response.powerwash_required) {
     install_plan_.powerwash_required = true;
-  } else if (params->ShouldPowerwash()) {
+  } else if (params->ShouldPowerwash() && !response.is_rollback) {
     base::Version new_version(response.version);
     base::Version current_version(params->app_version());
 
@@ -205,6 +207,10 @@
                    << " Current version number: " << params->app_version();
     } else if (new_version < current_version) {
       install_plan_.powerwash_required = true;
+      // Always try to preserve enrollment and wifi data for enrolled devices.
+      install_plan_.rollback_data_save_requested =
+          system_state_ && system_state_->device_policy() &&
+          system_state_->device_policy()->IsEnterpriseEnrolled();
     }
   }
 
diff --git a/omaha_response_handler_action_unittest.cc b/omaha_response_handler_action_unittest.cc
index 04cfa73..4e421b0 100644
--- a/omaha_response_handler_action_unittest.cc
+++ b/omaha_response_handler_action_unittest.cc
@@ -532,6 +532,132 @@
 }
 
 TEST_F(OmahaResponseHandlerActionTest,
+       ChangeToMoreStableChannelButSameVersionTest) {
+  OmahaResponse in;
+  in.update_exists = true;
+  in.version = "12345.0.0.0";
+  in.packages.push_back({.payload_urls = {"https://ChannelDownVersionUp"},
+                         .size = 1,
+                         .hash = kPayloadHashHex});
+  in.more_info_url = "http://more/info";
+
+  // Create a uniquely named test directory.
+  base::ScopedTempDir tempdir;
+  ASSERT_TRUE(tempdir.CreateUniqueTempDir());
+
+  OmahaRequestParams params(&fake_system_state_);
+  fake_system_state_.fake_hardware()->SetIsOfficialBuild(false);
+  params.set_root(tempdir.GetPath().value());
+  params.set_current_channel("beta-channel");
+  EXPECT_TRUE(params.SetTargetChannel("stable-channel", true, nullptr));
+  params.UpdateDownloadChannel();
+  params.set_app_version("12345.0.0.0");
+
+  fake_system_state_.set_request_params(&params);
+  InstallPlan install_plan;
+  EXPECT_TRUE(DoTest(in, "", &install_plan));
+  EXPECT_FALSE(install_plan.powerwash_required);
+  EXPECT_FALSE(install_plan.rollback_data_save_requested);
+}
+
+// On an enrolled device, the rollback data restore should be attempted when
+// doing a powerwash and channel downgrade.
+TEST_F(OmahaResponseHandlerActionTest,
+       ChangeToMoreStableChannelEnrolledDataRestore) {
+  OmahaResponse in;
+  in.update_exists = true;
+  in.version = "12345.96.0.0";
+  in.packages.push_back({.payload_urls = {"https://ChannelDownEnrolled"},
+                         .size = 1,
+                         .hash = kPayloadHashHex});
+  in.more_info_url = "http://more/info";
+
+  // Create a uniquely named test directory.
+  base::ScopedTempDir tempdir;
+  ASSERT_TRUE(tempdir.CreateUniqueTempDir());
+
+  OmahaRequestParams params(&fake_system_state_);
+  fake_system_state_.fake_hardware()->SetIsOfficialBuild(true);
+  params.set_root(tempdir.GetPath().value());
+  params.set_current_channel("beta-channel");
+  EXPECT_TRUE(params.SetTargetChannel("stable-channel", true, nullptr));
+  params.UpdateDownloadChannel();
+  params.set_app_version("12347.48.0.0");
+
+  testing::NiceMock<policy::MockDevicePolicy> mock_device_policy;
+  EXPECT_CALL(mock_device_policy, IsEnterpriseEnrolled())
+      .WillOnce(Return(true));
+  fake_system_state_.set_device_policy(&mock_device_policy);
+
+  fake_system_state_.set_request_params(&params);
+  InstallPlan install_plan;
+  EXPECT_TRUE(DoTest(in, "", &install_plan));
+  EXPECT_TRUE(install_plan.rollback_data_save_requested);
+}
+
+// Never attempt rollback data restore if the device is not enrolled.
+TEST_F(OmahaResponseHandlerActionTest,
+       ChangeToMoreStableChannelUnenrolledNoDataRestore) {
+  OmahaResponse in;
+  in.update_exists = true;
+  in.version = "12345.96.0.0";
+  in.packages.push_back({.payload_urls = {"https://ChannelDownEnrolled"},
+                         .size = 1,
+                         .hash = kPayloadHashHex});
+  in.more_info_url = "http://more/info";
+
+  // Create a uniquely named test directory.
+  base::ScopedTempDir tempdir;
+  ASSERT_TRUE(tempdir.CreateUniqueTempDir());
+
+  OmahaRequestParams params(&fake_system_state_);
+  fake_system_state_.fake_hardware()->SetIsOfficialBuild(true);
+  params.set_root(tempdir.GetPath().value());
+  params.set_current_channel("beta-channel");
+  EXPECT_TRUE(params.SetTargetChannel("stable-channel", true, nullptr));
+  params.UpdateDownloadChannel();
+  params.set_app_version("12347.48.0.0");
+
+  testing::NiceMock<policy::MockDevicePolicy> mock_device_policy;
+  EXPECT_CALL(mock_device_policy, IsEnterpriseEnrolled())
+      .WillOnce(Return(false));
+  fake_system_state_.set_device_policy(&mock_device_policy);
+
+  fake_system_state_.set_request_params(&params);
+  InstallPlan install_plan;
+  EXPECT_TRUE(DoTest(in, "", &install_plan));
+  EXPECT_FALSE(install_plan.rollback_data_save_requested);
+}
+
+// Never attempt rollback data restore if powerwash is not allowed.
+TEST_F(OmahaResponseHandlerActionTest,
+       ChangeToMoreStableChannelNoPowerwashNoDataRestore) {
+  OmahaResponse in;
+  in.update_exists = true;
+  in.version = "12345.96.0.0";
+  in.packages.push_back(
+      {.payload_urls = {"https://URL"}, .size = 1, .hash = kPayloadHashHex});
+  in.more_info_url = "http://more/info";
+
+  // Create a uniquely named test directory.
+  base::ScopedTempDir tempdir;
+  ASSERT_TRUE(tempdir.CreateUniqueTempDir());
+
+  OmahaRequestParams params(&fake_system_state_);
+  fake_system_state_.fake_hardware()->SetIsOfficialBuild(true);
+  params.set_root(tempdir.GetPath().value());
+  params.set_current_channel("beta-channel");
+  EXPECT_TRUE(params.SetTargetChannel("stable-channel", false, nullptr));
+  params.UpdateDownloadChannel();
+  params.set_app_version("12347.48.0.0");
+
+  fake_system_state_.set_request_params(&params);
+  InstallPlan install_plan;
+  EXPECT_TRUE(DoTest(in, "", &install_plan));
+  EXPECT_FALSE(install_plan.rollback_data_save_requested);
+}
+
+TEST_F(OmahaResponseHandlerActionTest,
        ChangeToLessStableVersionAndChannelTest) {
   OmahaResponse in;
   in.update_exists = true;
diff --git a/payload_consumer/postinstall_runner_action.cc b/payload_consumer/postinstall_runner_action.cc
index e8fa81b..91c3a64 100644
--- a/payload_consumer/postinstall_runner_action.cc
+++ b/payload_consumer/postinstall_runner_action.cc
@@ -63,9 +63,8 @@
   // that retains a small amount of system state such as enrollment and
   // network configuration. In both cases all user accounts are deleted.
   if (install_plan_.powerwash_required || install_plan_.is_rollback) {
-    bool save_rollback_data =
-        install_plan_.is_rollback && install_plan_.rollback_data_save_requested;
-    if (hardware_->SchedulePowerwash(save_rollback_data)) {
+    if (hardware_->SchedulePowerwash(
+            install_plan_.rollback_data_save_requested)) {
       powerwash_scheduled_ = true;
     } else {
       return CompletePostinstall(ErrorCode::kPostinstallPowerwashError);
diff --git a/update_attempter.cc b/update_attempter.cc
index 24562e2..14d5837 100644
--- a/update_attempter.cc
+++ b/update_attempter.cc
@@ -252,6 +252,7 @@
                              bool rollback_allowed,
                              bool rollback_data_save_requested,
                              int rollback_allowed_milestones,
+                             bool rollback_on_channel_downgrade,
                              bool obey_proxies,
                              bool interactive) {
   // This is normally called frequently enough so it's appropriate to use as a
@@ -290,6 +291,7 @@
                              rollback_allowed,
                              rollback_data_save_requested,
                              rollback_allowed_milestones,
+                             rollback_on_channel_downgrade,
                              obey_proxies,
                              interactive)) {
     return;
@@ -366,6 +368,7 @@
                                             bool rollback_allowed,
                                             bool rollback_data_save_requested,
                                             int rollback_allowed_milestones,
+                                            bool rollback_on_channel_downgrade,
                                             bool obey_proxies,
                                             bool interactive) {
   http_response_code_ = 0;
@@ -424,11 +427,9 @@
     LOG(INFO) << "No target channel mandated by policy.";
   } else {
     LOG(INFO) << "Setting target channel as mandated: " << target_channel;
-    // Pass in false for powerwash_allowed until we add it to the policy
-    // protobuf.
     string error_message;
     if (!omaha_request_params_->SetTargetChannel(
-            target_channel, false, &error_message)) {
+            target_channel, rollback_on_channel_downgrade, &error_message)) {
       LOG(ERROR) << "Setting the channel failed: " << error_message;
     }
 
@@ -1114,6 +1115,7 @@
            params.rollback_allowed,
            params.rollback_data_save_requested,
            params.rollback_allowed_milestones,
+           params.rollback_on_channel_downgrade,
            /*obey_proxies=*/false,
            params.interactive);
     // Always clear the forced app_version and omaha_url after an update attempt
diff --git a/update_attempter.h b/update_attempter.h
index abd0bd4..6c93150 100644
--- a/update_attempter.h
+++ b/update_attempter.h
@@ -90,6 +90,7 @@
                       bool rollback_allowed,
                       bool rollback_data_save_requested,
                       int rollback_allowed_milestones,
+                      bool rollback_on_channel_downgrade,
                       bool obey_proxies,
                       bool interactive);
 
@@ -284,6 +285,8 @@
   FRIEND_TEST(UpdateAttempterTest, RollbackAfterInstall);
   FRIEND_TEST(UpdateAttempterTest, RollbackAllowed);
   FRIEND_TEST(UpdateAttempterTest, RollbackAllowedSetAndReset);
+  FRIEND_TEST(UpdateAttempterTest, ChannelDowngradeNoRollback);
+  FRIEND_TEST(UpdateAttempterTest, ChannelDowngradeRollback);
   FRIEND_TEST(UpdateAttempterTest, RollbackMetricsNotRollbackFailure);
   FRIEND_TEST(UpdateAttempterTest, RollbackMetricsNotRollbackSuccess);
   FRIEND_TEST(UpdateAttempterTest, RollbackMetricsRollbackFailure);
@@ -376,6 +379,7 @@
                              bool rollback_allowed,
                              bool rollback_data_save_requested,
                              int rollback_allowed_milestones,
+                             bool rollback_on_channel_downgrade,
                              bool obey_proxies,
                              bool interactive);
 
diff --git a/update_attempter_unittest.cc b/update_attempter_unittest.cc
index 354416e..edcb67b 100644
--- a/update_attempter_unittest.cc
+++ b/update_attempter_unittest.cc
@@ -25,6 +25,7 @@
 #include <unordered_set>
 
 #include <base/files/file_util.h>
+#include <base/files/scoped_temp_dir.h>
 #include <base/message_loop/message_loop.h>
 #include <brillo/message_loops/base_message_loop.h>
 #include <brillo/message_loops/message_loop.h>
@@ -179,6 +180,7 @@
               bool rollback_allowed,
               bool rollback_data_save_requested,
               int rollback_allowed_milestones,
+              bool rollback_on_channel_downgrade,
               bool obey_proxies,
               bool interactive) override {
     update_called_ = true;
@@ -191,6 +193,7 @@
                               rollback_allowed,
                               rollback_data_save_requested,
                               rollback_allowed_milestones,
+                              rollback_on_channel_downgrade,
                               obey_proxies,
                               interactive);
       return;
@@ -427,7 +430,7 @@
 void UpdateAttempterTest::SessionIdTestChange() {
   EXPECT_NE(UpdateStatus::UPDATED_NEED_REBOOT, attempter_.status());
   const auto old_session_id = attempter_.session_id_;
-  attempter_.Update("", "", "", "", "", false, false, 0, false, false);
+  attempter_.Update("", "", "", "", "", false, false, 0, false, false, false);
   EXPECT_NE(old_session_id, attempter_.session_id_);
   ScheduleQuitMainLoop();
 }
@@ -798,7 +801,7 @@
     EXPECT_CALL(*processor_, StartProcessing());
   }
 
-  attempter_.Update("", "", "", "", "", false, false, 0, false, false);
+  attempter_.Update("", "", "", "", "", false, false, 0, false, false, false);
   loop_.PostTask(FROM_HERE,
                  base::Bind(&UpdateAttempterTest::UpdateTestVerify,
                             base::Unretained(this)));
@@ -998,7 +1001,7 @@
   fake_system_state_.set_p2p_manager(&mock_p2p_manager);
   mock_p2p_manager.fake().SetP2PEnabled(false);
   EXPECT_CALL(mock_p2p_manager, PerformHousekeeping()).Times(0);
-  attempter_.Update("", "", "", "", "", false, false, 0, false, false);
+  attempter_.Update("", "", "", "", "", false, false, 0, false, false, false);
   EXPECT_FALSE(actual_using_p2p_for_downloading_);
   EXPECT_FALSE(actual_using_p2p_for_sharing());
   ScheduleQuitMainLoop();
@@ -1020,7 +1023,7 @@
   mock_p2p_manager.fake().SetEnsureP2PRunningResult(false);
   mock_p2p_manager.fake().SetPerformHousekeepingResult(false);
   EXPECT_CALL(mock_p2p_manager, PerformHousekeeping()).Times(0);
-  attempter_.Update("", "", "", "", "", false, false, 0, false, false);
+  attempter_.Update("", "", "", "", "", false, false, 0, false, false, false);
   EXPECT_FALSE(actual_using_p2p_for_downloading());
   EXPECT_FALSE(actual_using_p2p_for_sharing());
   ScheduleQuitMainLoop();
@@ -1043,7 +1046,7 @@
   mock_p2p_manager.fake().SetEnsureP2PRunningResult(true);
   mock_p2p_manager.fake().SetPerformHousekeepingResult(false);
   EXPECT_CALL(mock_p2p_manager, PerformHousekeeping());
-  attempter_.Update("", "", "", "", "", false, false, 0, false, false);
+  attempter_.Update("", "", "", "", "", false, false, 0, false, false, false);
   EXPECT_FALSE(actual_using_p2p_for_downloading());
   EXPECT_FALSE(actual_using_p2p_for_sharing());
   ScheduleQuitMainLoop();
@@ -1065,7 +1068,7 @@
   mock_p2p_manager.fake().SetEnsureP2PRunningResult(true);
   mock_p2p_manager.fake().SetPerformHousekeepingResult(true);
   EXPECT_CALL(mock_p2p_manager, PerformHousekeeping());
-  attempter_.Update("", "", "", "", "", false, false, 0, false, false);
+  attempter_.Update("", "", "", "", "", false, false, 0, false, false, false);
   EXPECT_TRUE(actual_using_p2p_for_downloading());
   EXPECT_TRUE(actual_using_p2p_for_sharing());
   ScheduleQuitMainLoop();
@@ -1097,6 +1100,7 @@
                     false,
                     /*rollback_allowed_milestones=*/0,
                     false,
+                    false,
                     /*interactive=*/true);
   EXPECT_FALSE(actual_using_p2p_for_downloading());
   EXPECT_TRUE(actual_using_p2p_for_sharing());
@@ -1127,7 +1131,7 @@
   attempter_.policy_provider_.reset(
       new policy::PolicyProvider(std::move(device_policy)));
 
-  attempter_.Update("", "", "", "", "", false, false, 0, false, false);
+  attempter_.Update("", "", "", "", "", false, false, 0, false, false, false);
   EXPECT_EQ(scatter_factor_in_seconds, attempter_.scatter_factor_.InSeconds());
 
   ScheduleQuitMainLoop();
@@ -1165,7 +1169,7 @@
   attempter_.policy_provider_.reset(
       new policy::PolicyProvider(std::move(device_policy)));
 
-  attempter_.Update("", "", "", "", "", false, false, 0, false, false);
+  attempter_.Update("", "", "", "", "", false, false, 0, false, false, false);
   EXPECT_EQ(scatter_factor_in_seconds, attempter_.scatter_factor_.InSeconds());
 
   // Make sure the file still exists.
@@ -1181,7 +1185,7 @@
   // However, if the count is already 0, it's not decremented. Test that.
   initial_value = 0;
   EXPECT_TRUE(fake_prefs.SetInt64(kPrefsUpdateCheckCount, initial_value));
-  attempter_.Update("", "", "", "", "", false, false, 0, false, false);
+  attempter_.Update("", "", "", "", "", false, false, 0, false, false, false);
   EXPECT_TRUE(fake_prefs.Exists(kPrefsUpdateCheckCount));
   EXPECT_TRUE(fake_prefs.GetInt64(kPrefsUpdateCheckCount, &new_value));
   EXPECT_EQ(initial_value, new_value);
@@ -1237,6 +1241,7 @@
                     false,
                     /*rollback_allowed_milestones=*/0,
                     false,
+                    false,
                     /*interactive=*/true);
   EXPECT_EQ(scatter_factor_in_seconds, attempter_.scatter_factor_.InSeconds());
 
@@ -1289,7 +1294,7 @@
   FakePrefs fake_prefs;
   SetUpStagingTest(kValidStagingSchedule, &fake_prefs);
 
-  attempter_.Update("", "", "", "", "", false, false, 0, false, false);
+  attempter_.Update("", "", "", "", "", false, false, 0, false, false, false);
   // Check that prefs have the correct values.
   int64_t update_count;
   EXPECT_TRUE(fake_prefs.GetInt64(kPrefsUpdateCheckCount, &update_count));
@@ -1346,8 +1351,17 @@
   FakePrefs fake_prefs;
   SetUpStagingTest(kValidStagingSchedule, &fake_prefs);
 
-  attempter_.Update(
-      "", "", "", "", "", false, false, 0, false, /* interactive = */ true);
+  attempter_.Update("",
+                    "",
+                    "",
+                    "",
+                    "",
+                    false,
+                    false,
+                    0,
+                    false,
+                    false,
+                    /* interactive = */ true);
   CheckStagingOff();
 
   ScheduleQuitMainLoop();
@@ -1367,8 +1381,17 @@
   FakePrefs fake_prefs;
   SetUpStagingTest(kValidStagingSchedule, &fake_prefs);
 
-  attempter_.Update(
-      "", "", "", "", "", false, false, 0, false, /* interactive = */ true);
+  attempter_.Update("",
+                    "",
+                    "",
+                    "",
+                    "",
+                    false,
+                    false,
+                    0,
+                    false,
+                    false,
+                    /* interactive = */ true);
   CheckStagingOff();
 
   ScheduleQuitMainLoop();
@@ -1697,23 +1720,33 @@
 
 TEST_F(UpdateAttempterTest, TargetVersionPrefixSetAndReset) {
   attempter_.CalculateUpdateParams(
-      "", "", "", "", "1234", false, false, 4, false, false);
+      /*app_version=*/"",
+      /*omaha_url=*/"",
+      /*target_channel=*/"",
+      /*lts_tag=*/"",
+      /*target_version_prefix=*/"1234",
+      /*rollback_allowed=*/false,
+      /*rollback_data_save_requested=*/false,
+      /*rollback_allowed_milestones=*/4,
+      /*rollback_on_channel_downgrade=*/false,
+      /*obey_proxies=*/false,
+      /*interactive=*/false);
   EXPECT_EQ("1234",
             fake_system_state_.request_params()->target_version_prefix());
 
   attempter_.CalculateUpdateParams(
-      "", "", "", "", "", false, 4, false, false, false);
+      "", "", "", "", "", false, false, 4, false, false, false);
   EXPECT_TRUE(
       fake_system_state_.request_params()->target_version_prefix().empty());
 }
 
 TEST_F(UpdateAttempterTest, TargetChannelHintSetAndReset) {
   attempter_.CalculateUpdateParams(
-      "", "", "", "hint", "", false, false, 4, false, false);
+      "", "", "", "hint", "", false, false, 4, false, false, false);
   EXPECT_EQ("hint", fake_system_state_.request_params()->lts_tag());
 
   attempter_.CalculateUpdateParams(
-      "", "", "", "", "", false, 4, false, false, false);
+      "", "", "", "", "", false, false, 4, false, false, false);
   EXPECT_TRUE(fake_system_state_.request_params()->lts_tag().empty());
 }
 
@@ -1726,6 +1759,7 @@
                                    /*rollback_allowed=*/true,
                                    /*rollback_data_save_requested=*/false,
                                    /*rollback_allowed_milestones=*/4,
+                                   /*rollback_on_channel_downgrade=*/false,
                                    false,
                                    false);
   EXPECT_TRUE(fake_system_state_.request_params()->rollback_allowed());
@@ -1740,6 +1774,7 @@
                                    /*rollback_allowed=*/false,
                                    /*rollback_data_save_requested=*/false,
                                    /*rollback_allowed_milestones=*/4,
+                                   /*rollback_on_channel_downgrade=*/false,
                                    false,
                                    false);
   EXPECT_FALSE(fake_system_state_.request_params()->rollback_allowed());
@@ -1747,6 +1782,42 @@
             fake_system_state_.request_params()->rollback_allowed_milestones());
 }
 
+TEST_F(UpdateAttempterTest, ChannelDowngradeNoRollback) {
+  base::ScopedTempDir tempdir;
+  ASSERT_TRUE(tempdir.CreateUniqueTempDir());
+  fake_system_state_.request_params()->set_root(tempdir.GetPath().value());
+  attempter_.CalculateUpdateParams(/*app_version=*/"",
+                                   /*omaha_url=*/"",
+                                   /*target_channel=*/"stable-channel",
+                                   /*lts_tag=*/"",
+                                   /*target_version_prefix=*/"",
+                                   /*rollback_allowed=*/false,
+                                   /*rollback_data_save_requested=*/false,
+                                   /*rollback_allowed_milestones=*/4,
+                                   /*rollback_on_channel_downgrade=*/false,
+                                   /*obey_proxies=*/false,
+                                   /*interactive=*/false);
+  EXPECT_FALSE(fake_system_state_.request_params()->is_powerwash_allowed());
+}
+
+TEST_F(UpdateAttempterTest, ChannelDowngradeRollback) {
+  base::ScopedTempDir tempdir;
+  ASSERT_TRUE(tempdir.CreateUniqueTempDir());
+  fake_system_state_.request_params()->set_root(tempdir.GetPath().value());
+  attempter_.CalculateUpdateParams(/*app_version=*/"",
+                                   /*omaha_url=*/"",
+                                   /*target_channel=*/"stable-channel",
+                                   /*lts_tag=*/"",
+                                   /*target_version_prefix=*/"",
+                                   /*rollback_allowed=*/false,
+                                   /*rollback_data_save_requested=*/false,
+                                   /*rollback_allowed_milestones=*/4,
+                                   /*rollback_on_channel_downgrade=*/true,
+                                   /*obey_proxies=*/false,
+                                   /*interactive=*/false);
+  EXPECT_TRUE(fake_system_state_.request_params()->is_powerwash_allowed());
+}
+
 TEST_F(UpdateAttempterTest, UpdateDeferredByPolicyTest) {
   // Construct an OmahaResponseHandlerAction that has processed an InstallPlan,
   // but the update is being deferred by the Policy.
@@ -1861,7 +1932,7 @@
               SetRollbackHappened(false))
       .Times(expected_reset ? 1 : 0);
   attempter_.policy_provider_ = std::move(mock_policy_provider);
-  attempter_.Update("", "", "", "", "", false, false, 0, false, false);
+  attempter_.Update("", "", "", "", "", false, false, 0, false, false, false);
   ScheduleQuitMainLoop();
 }
 
@@ -2202,7 +2273,7 @@
         .WillOnce(Return(false));
   attempter_.policy_provider_.reset(
       new policy::PolicyProvider(std::move(device_policy)));
-  attempter_.Update("", "", "", "", "", false, false, 0, false, false);
+  attempter_.Update("", "", "", "", "", false, false, 0, false, false, false);
 
   EXPECT_EQ(token, attempter_.omaha_request_params_->autoupdate_token());
   ScheduleQuitMainLoop();
diff --git a/update_manager/android_things_policy.cc b/update_manager/android_things_policy.cc
index 6362a73..c4fa75a 100644
--- a/update_manager/android_things_policy.cc
+++ b/update_manager/android_things_policy.cc
@@ -63,6 +63,7 @@
   result->rollback_allowed = false;
   result->rollback_data_save_requested = false;
   result->rollback_allowed_milestones = -1;
+  result->rollback_on_channel_downgrade = false;
   result->interactive = false;
 
   // Build a list of policies to consult.  Note that each policy may modify the
diff --git a/update_manager/chromeos_policy.cc b/update_manager/chromeos_policy.cc
index 85cc3ae..4c651b7 100644
--- a/update_manager/chromeos_policy.cc
+++ b/update_manager/chromeos_policy.cc
@@ -221,6 +221,7 @@
   result->target_version_prefix.clear();
   result->rollback_allowed = false;
   result->rollback_allowed_milestones = -1;
+  result->rollback_on_channel_downgrade = false;
   result->interactive = false;
 
   EnoughSlotsAbUpdatesPolicyImpl enough_slots_ab_updates_policy;
diff --git a/update_manager/default_policy.cc b/update_manager/default_policy.cc
index cc13c44..7ca414b 100644
--- a/update_manager/default_policy.cc
+++ b/update_manager/default_policy.cc
@@ -44,6 +44,7 @@
   result->target_version_prefix.clear();
   result->rollback_allowed = false;
   result->rollback_allowed_milestones = -1;  // No version rolls should happen.
+  result->rollback_on_channel_downgrade = false;
   result->interactive = false;
 
   // Ensure that the minimum interval is set. If there's no clock, this defaults
diff --git a/update_manager/enterprise_device_policy_impl.cc b/update_manager/enterprise_device_policy_impl.cc
index fed50a9..8fc79ca 100644
--- a/update_manager/enterprise_device_policy_impl.cc
+++ b/update_manager/enterprise_device_policy_impl.cc
@@ -117,14 +117,23 @@
     if (rollback_allowed_milestones_p)
       result->rollback_allowed_milestones = *rollback_allowed_milestones_p;
 
-    // Determine whether a target channel is dictated by policy.
+    // Determine whether a target channel is dictated by policy and whether we
+    // should rollback in case that channel is more stable.
     const bool* release_channel_delegated_p =
         ec->GetValue(dp_provider->var_release_channel_delegated());
     if (release_channel_delegated_p && !(*release_channel_delegated_p)) {
       const string* release_channel_p =
           ec->GetValue(dp_provider->var_release_channel());
-      if (release_channel_p)
+      if (release_channel_p) {
         result->target_channel = *release_channel_p;
+        const ChannelDowngradeBehavior* channel_downgrade_behavior_p =
+            ec->GetValue(dp_provider->var_channel_downgrade_behavior());
+        if (channel_downgrade_behavior_p &&
+            *channel_downgrade_behavior_p ==
+                ChannelDowngradeBehavior::kRollback) {
+          result->rollback_on_channel_downgrade = true;
+        }
+      }
     }
 
     const string* release_lts_tag_p =
diff --git a/update_manager/enterprise_device_policy_impl_unittest.cc b/update_manager/enterprise_device_policy_impl_unittest.cc
new file mode 100644
index 0000000..5b25602
--- /dev/null
+++ b/update_manager/enterprise_device_policy_impl_unittest.cc
@@ -0,0 +1,65 @@
+//
+// Copyright (C) 2020 The Android Open Source Project
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//      http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+//
+
+#include "update_engine/update_manager/enterprise_device_policy_impl.h"
+
+#include <memory>
+
+#include "update_engine/update_manager/policy_test_utils.h"
+
+namespace chromeos_update_manager {
+
+class UmEnterpriseDevicePolicyImplTest : public UmPolicyTestBase {
+ protected:
+  UmEnterpriseDevicePolicyImplTest() : UmPolicyTestBase() {
+    policy_ = std::make_unique<EnterpriseDevicePolicyImpl>();
+  }
+
+  void SetUpDefaultState() override {
+    UmPolicyTestBase::SetUpDefaultState();
+
+    fake_state_.device_policy_provider()->var_device_policy_is_loaded()->reset(
+        new bool(true));
+  }
+};
+
+TEST_F(UmEnterpriseDevicePolicyImplTest, ChannelDowngradeBehaviorNoRollback) {
+  fake_state_.device_policy_provider()->var_release_channel_delegated()->reset(
+      new bool(false));
+  fake_state_.device_policy_provider()->var_release_channel()->reset(
+      new std::string("stable-channel"));
+
+  UpdateCheckParams result;
+  ExpectPolicyStatus(
+      EvalStatus::kContinue, &Policy::UpdateCheckAllowed, &result);
+  EXPECT_FALSE(result.rollback_on_channel_downgrade);
+}
+
+TEST_F(UmEnterpriseDevicePolicyImplTest, ChannelDowngradeBehaviorRollback) {
+  fake_state_.device_policy_provider()->var_release_channel_delegated()->reset(
+      new bool(false));
+  fake_state_.device_policy_provider()->var_release_channel()->reset(
+      new std::string("stable-channel"));
+  fake_state_.device_policy_provider()->var_channel_downgrade_behavior()->reset(
+      new ChannelDowngradeBehavior(ChannelDowngradeBehavior::kRollback));
+
+  UpdateCheckParams result;
+  ExpectPolicyStatus(
+      EvalStatus::kContinue, &Policy::UpdateCheckAllowed, &result);
+  EXPECT_TRUE(result.rollback_on_channel_downgrade);
+}
+
+}  // namespace chromeos_update_manager
diff --git a/update_manager/policy.h b/update_manager/policy.h
index 9194c38..4b3bfc7 100644
--- a/update_manager/policy.h
+++ b/update_manager/policy.h
@@ -58,6 +58,9 @@
   // (e.g. no device policy is available yet), in this case no version
   // roll-forward should happen.
   int rollback_allowed_milestones;
+  // Whether a rollback with data save should be initiated on channel
+  // downgrade (e.g. beta to stable).
+  bool rollback_on_channel_downgrade{false};
   // A target channel, if so imposed by policy; otherwise, an empty string.
   std::string target_channel;
   // Specifies if the channel hint, e.g. LTS (Long Term Support) updates.