diff --git a/src/activation.cpp b/src/activation.cpp
index 4d190f9..680cdd9 100644
--- a/src/activation.cpp
+++ b/src/activation.cpp
@@ -33,6 +33,9 @@
 std::string getUpdateService(const std::string& psuInventoryPath,
                              const std::string& versionId)
 {
+    // TODO: get image path from the related version
+    // because it could be in either IMG_DIR, or IMG_DIR_PERSIST, or
+    // IMG_DIR_BUILTIN
     fs::path imagePath(IMG_DIR);
     imagePath /= versionId;
 
diff --git a/src/item_updater.cpp b/src/item_updater.cpp
index 8d5695c..6472fe1 100644
--- a/src/item_updater.cpp
+++ b/src/item_updater.cpp
@@ -11,8 +11,9 @@
 
 namespace
 {
-constexpr auto EXTENDED_VERSION = "extended_version";
-}
+constexpr auto MANIFEST_VERSION = "version";
+constexpr auto MANIFEST_EXTENDED_VERSION = "extended_version";
+} // namespace
 
 namespace phosphor
 {
@@ -21,7 +22,6 @@
 namespace updater
 {
 namespace server = sdbusplus::xyz::openbmc_project::Software::server;
-namespace fs = std::filesystem;
 
 using namespace sdbusplus::xyz::openbmc_project::Common::Error;
 using namespace phosphor::logging;
@@ -95,7 +95,7 @@
     {
         // Determine the Activation state by processing the given image dir.
         AssociationList associations;
-        auto activationState = server::Activation::Activations::Ready;
+        auto activationState = Activation::Status::Ready;
 
         associations.emplace_back(std::make_tuple(ACTIVATION_FWD_ASSOCIATION,
                                                   ACTIVATION_REV_ASSOCIATION,
@@ -103,14 +103,8 @@
 
         fs::path manifestPath(filePath);
         manifestPath /= MANIFEST_FILE;
-        std::string extendedVersion;
-        auto values =
-            Version::getValues(manifestPath.string(), {EXTENDED_VERSION});
-        const auto it = values.find(EXTENDED_VERSION);
-        if (it != values.end())
-        {
-            extendedVersion = it->second;
-        }
+        std::string extendedVersion =
+            Version::getValue(manifestPath, {MANIFEST_EXTENDED_VERSION});
 
         auto activation =
             createActivationObject(path, versionId, extendedVersion,
@@ -186,9 +180,7 @@
 
 std::unique_ptr<Activation> ItemUpdater::createActivationObject(
     const std::string& path, const std::string& versionId,
-    const std::string& extVersion,
-    sdbusplus::xyz::openbmc_project::Software::server::Activation::Activations
-        activationStatus,
+    const std::string& extVersion, Activation::Status activationStatus,
     const AssociationList& assocs, const std::string& filePath)
 {
     return std::make_unique<Activation>(bus, path, versionId, extVersion,
@@ -217,7 +209,7 @@
     {
         // Create a new object for running PSU inventory
         AssociationList associations;
-        auto activationState = server::Activation::Activations::Active;
+        auto activationState = Activation::Status::Active;
 
         associations.emplace_back(std::make_tuple(ACTIVATION_FWD_ASSOCIATION,
                                                   ACTIVATION_REV_ASSOCIATION,
@@ -346,6 +338,80 @@
     }
 }
 
+void ItemUpdater::processStoredImage()
+{
+    scanDirectory(IMG_DIR_BUILTIN);
+    scanDirectory(IMG_DIR_PERSIST);
+}
+
+void ItemUpdater::scanDirectory(const fs::path& dir)
+{
+    // The directory shall put PSU images in directories named with model
+    if (!fs::exists(dir))
+    {
+        // Skip
+        return;
+    }
+    if (!fs::is_directory(dir))
+    {
+        log<level::ERR>("The path is not a directory",
+                        entry("PATH=%s", dir.c_str()));
+        return;
+    }
+    for (const auto& d : fs::directory_iterator(dir))
+    {
+        // If the model in manifest does not match the dir name
+        // Log a warning and skip it
+        auto path = d.path();
+        auto manifest = path / MANIFEST_FILE;
+        if (fs::exists(manifest))
+        {
+            auto ret = Version::getValues(
+                manifest.string(),
+                {MANIFEST_VERSION, MANIFEST_EXTENDED_VERSION});
+            auto version = ret[MANIFEST_VERSION];
+            auto extVersion = ret[MANIFEST_EXTENDED_VERSION];
+            auto info = Version::getExtVersionInfo(extVersion);
+            auto model = info["model"];
+            if (path.stem() != model)
+            {
+                log<level::ERR>("Unmatched model",
+                                entry("PATH=%s", path.c_str()),
+                                entry("MODEL=%s", model.c_str()));
+                continue;
+            }
+            auto versionId = utils::getVersionId(version);
+            auto it = activations.find(versionId);
+            if (it == activations.end())
+            {
+                // This is a version that is different than the running PSUs
+                auto activationState = Activation::Status::Ready;
+                auto purpose = VersionPurpose::PSU;
+                auto objPath = std::string(SOFTWARE_OBJPATH) + "/" + versionId;
+
+                auto activation = createActivationObject(
+                    objPath, versionId, extVersion, activationState, {}, path);
+                activations.emplace(versionId, std::move(activation));
+
+                auto versionPtr =
+                    createVersionObject(objPath, versionId, version, purpose);
+                versions.emplace(versionId, std::move(versionPtr));
+            }
+            else
+            {
+                // This is a version that a running PSU is using, set the path
+                // on the version object
+                it->second->path(path);
+            }
+        }
+        else
+        {
+            log<level::ERR>("No MANIFEST found",
+                            entry("PATH=%s", path.c_str()));
+        }
+    }
+}
+
 } // namespace updater
 } // namespace software
 } // namespace phosphor
diff --git a/src/item_updater.hpp b/src/item_updater.hpp
index 33db8bc..2cccf68 100644
--- a/src/item_updater.hpp
+++ b/src/item_updater.hpp
@@ -8,6 +8,7 @@
 #include "utils.hpp"
 #include "version.hpp"
 
+#include <filesystem>
 #include <phosphor-logging/log.hpp>
 #include <sdbusplus/server.hpp>
 #include <xyz/openbmc_project/Association/Definitions/server.hpp>
@@ -29,6 +30,8 @@
 
 namespace MatchRules = sdbusplus::bus::match::rules;
 
+namespace fs = std::filesystem;
+
 /** @class ItemUpdater
  *  @brief Manages the activation of the PSU version items.
  */
@@ -51,6 +54,7 @@
                                this, std::placeholders::_1))
     {
         processPSUImage();
+        processStoredImage();
     }
 
     /** @brief Deletes version
@@ -109,9 +113,7 @@
     /** @brief Create Activation object */
     std::unique_ptr<Activation> createActivationObject(
         const std::string& path, const std::string& versionId,
-        const std::string& extVersion,
-        sdbusplus::xyz::openbmc_project::Software::server::Activation::
-            Activations activationStatus,
+        const std::string& extVersion, Activation::Status activationStatus,
         const AssociationList& assocs, const std::string& filePath);
 
     /** @brief Create Version object */
@@ -142,6 +144,12 @@
      */
     void processPSUImage();
 
+    /** @brief Create PSU Version from stored images */
+    void processStoredImage();
+
+    /** @brief Scan a directory and create PSU Version from stored images */
+    void scanDirectory(const fs::path& p);
+
     /** @brief Persistent sdbusplus D-Bus bus connection. */
     sdbusplus::bus::bus& bus;
 
diff --git a/src/version.cpp b/src/version.cpp
index 02cf6af..ecefc98 100644
--- a/src/version.cpp
+++ b/src/version.cpp
@@ -53,6 +53,19 @@
     return ret;
 }
 
+std::string Version::getValue(const std::string& filePath,
+                              const std::string& key)
+{
+    std::string ret;
+    auto values = Version::getValues(filePath, {key});
+    const auto it = values.find(key);
+    if (it != values.end())
+    {
+        ret = it->second;
+    }
+    return ret;
+}
+
 std::map<std::string, std::string>
     Version::getExtVersionInfo(const std::string& extVersion)
 {
diff --git a/src/version.hpp b/src/version.hpp
index 89db260..dbc48d7 100644
--- a/src/version.hpp
+++ b/src/version.hpp
@@ -112,7 +112,7 @@
     }
 
     /**
-     * @brief Read the manifest file to get the value of the key.
+     * @brief Read the manifest file to get the values of the keys.
      *
      * @param[in] filePath - The path to the file which contains the value
      *                       of keys.
@@ -124,6 +124,18 @@
         getValues(const std::string& filePath,
                   const std::vector<std::string>& keys);
 
+    /**
+     * @brief Read the manifest file to get the value of the key.
+     *
+     * @param[in] filePath - The path to the file which contains the value
+     *                       of keys.
+     * @param[in] key      - The string of the key.
+     *
+     * @return The string of the value.
+     **/
+    static std::string getValue(const std::string& filePath,
+                                const std::string& key);
+
     /** @brief Get information from extVersion
      *
      * @param[in] extVersion - The extended version string that contains