diff --git a/xyz/openbmc_project/Software/Activation.interface.yaml b/xyz/openbmc_project/Software/Activation.interface.yaml
index 37c9cb9..efeeeb6 100644
--- a/xyz/openbmc_project/Software/Activation.interface.yaml
+++ b/xyz/openbmc_project/Software/Activation.interface.yaml
@@ -34,6 +34,10 @@
         - name: Failed
           description: >
             The Software.Version failed during or after Activation.
+        - name: Staged
+          description: >
+            The Software.Version is currently in staged flash area.
+            This is moved from staged flash area to active upon reset.
     - name: RequestedActivations
       description: >
         The possible RequestedActivation states of a Software.Version.
diff --git a/xyz/openbmc_project/Software/README.md b/xyz/openbmc_project/Software/README.md
index 89077ca..9907732 100644
--- a/xyz/openbmc_project/Software/README.md
+++ b/xyz/openbmc_project/Software/README.md
@@ -92,6 +92,12 @@
               be *Active* but not the primary version.
 6. *Failed* - The `Software.Version` or the storage medium on which it is stored
               has failed.  An event may be recorded with additional details.
+7. *Staged* - The `Software.Version` is in staged flash region. This will be
+              moved from staged flash region to active flash region upon reset.
+              Staged flash region is the designated flash area which is used to
+              store the integrity validated firmware image that comes in during
+              firmware update process. Note that the staged image is not
+              necessarily a functional firmware.
 
 ### Image Apply Time