diff --git a/vpd-manager/include/worker.hpp b/vpd-manager/include/worker.hpp
index f364964..68ebb3a 100644
--- a/vpd-manager/include/worker.hpp
+++ b/vpd-manager/include/worker.hpp
@@ -519,6 +519,10 @@
     /**
      * @brief API to set present property.
      *
+     * This API updates the present property of the given FRU with the given
+     * value. Note: It is the responsibility of the caller to determine whether
+     * the present property for the FRU should be updated or not.
+     *
      * @param[in] i_vpdPath - EEPROM or inventory path.
      * @param[in] i_value - value to be set.
      */
@@ -536,6 +540,25 @@
      */
     bool skipPathForCollection(const std::string& i_vpdFilePath);
 
+    /**
+     * @brief API to check if present property should be handled for given FRU.
+     *
+     * vpd-manager should update present property for a FRU if and only if it's
+     * not synthesized and vpd-manager handles present property for the FRU.
+     * This API assumes "handlePresence" tag is a subset of "synthesized" tag.
+     *
+     * @param[in] i_fru -  JSON block for a single FRU.
+     *
+     * @return true if present property should be handled, false otherwise.
+     */
+    inline bool isPresentPropertyHandlingRequired(
+        const nlohmann::json& i_fru) const noexcept
+    {
+        // TODO: revisit this to see if this logic can be optimized.
+        return !i_fru.value("synthesized", false) &&
+               i_fru.value("handlePresence", true);
+    }
+
     // Parsed JSON file.
     nlohmann::json m_parsedJson{};
 
diff --git a/vpd-manager/src/worker.cpp b/vpd-manager/src/worker.cpp
index f1758fb..82afb3a 100644
--- a/vpd-manager/src/worker.cpp
+++ b/vpd-manager/src/worker.cpp
@@ -822,9 +822,14 @@
             continue;
         }
 
-        // Clear data under PIM if already exists.
-        vpdSpecificUtility::resetDataUnderPIM(
-            std::string(l_Fru["inventoryPath"]), l_interfaces);
+        // Reset data under PIM for this FRU only if the FRU is not synthesized
+        // and we handle it's Present property.
+        if (isPresentPropertyHandlingRequired(l_Fru))
+        {
+            // Clear data under PIM if already exists.
+            vpdSpecificUtility::resetDataUnderPIM(
+                std::string(l_Fru["inventoryPath"]), l_interfaces);
+        }
 
         // Add extra interfaces mentioned in the Json config file
         if (l_Fru.contains("extraInterfaces"))
@@ -834,16 +839,22 @@
         }
 
         types::PropertyMap l_propertyValueMap;
-        l_propertyValueMap.emplace("Present", false);
 
-        // TODO: Present based on file will be taken care in future.
-        // By default present is set to false for FRU at the time of
-        // priming. Once collection goes through, it will be set to true in that
-        // flow.
-        /*if (std::filesystem::exists(i_vpdFilePath))
+        // Update Present property for this FRU only if we handle Present
+        // property for the FRU.
+        if (isPresentPropertyHandlingRequired(l_Fru))
         {
-            l_propertyValueMap["Present"] = true;
-        }*/
+            l_propertyValueMap.emplace("Present", false);
+
+            // TODO: Present based on file will be taken care in future.
+            // By default present is set to false for FRU at the time of
+            // priming. Once collection goes through, it will be set to true in
+            // that flow.
+            /*if (std::filesystem::exists(i_vpdFilePath))
+            {
+                l_propertyValueMap["Present"] = true;
+            }*/
+        }
 
         vpdSpecificUtility::insertOrMerge(l_interfaces,
                                           "xyz.openbmc_project.Inventory.Item",
@@ -1500,7 +1511,13 @@
 
         // set present property to false for any error case. In future this will
         // be replaced by presence logic.
-        setPresentProperty(i_vpdFilePath, false);
+        // Update Present property for this FRU only if we handle Present
+        // property for the FRU.
+        if (isPresentPropertyHandlingRequired(
+                m_parsedJson["frus"][i_vpdFilePath].at(0)))
+        {
+            setPresentProperty(i_vpdFilePath, false);
+        }
 
         m_semaphore.release();
         return std::make_tuple(false, i_vpdFilePath);