diff --git a/meta-phosphor/recipes-phosphor/state/phosphor-state-manager-systemd-links.inc b/meta-phosphor/recipes-phosphor/state/phosphor-state-manager-systemd-links.inc
index df21431..718d06d 100644
--- a/meta-phosphor/recipes-phosphor/state/phosphor-state-manager-systemd-links.inc
+++ b/meta-phosphor/recipes-phosphor/state/phosphor-state-manager-systemd-links.inc
@@ -8,6 +8,8 @@
     obmc-host-stop@{}.target.wants/phosphor-set-host-transition-to-off@{}.service \
     obmc-host-reset@{}.target.requires/phosphor-reset-host-running@{}.service \
     obmc-host-stop@{}.target.wants/phosphor-reset-sensor-states@{}.service \
+    obmc-host-graceful-quiesce@{}.target.wants/obmc-host-quiesce@{}.target \
+    obmc-host-graceful-quiesce@{}.target.wants/pldmSoftPowerOff.service \
     obmc-host-quiesce@{}.target.wants/phosphor-reset-sensor-states@{}.service \
     obmc-host-shutdown@{}.target.requires/obmc-chassis-poweroff@{}.target \
     obmc-host-reboot@{}.target.requires/obmc-host-shutdown@{}.target \
diff --git a/meta-phosphor/recipes-phosphor/state/phosphor-state-manager_git.bb b/meta-phosphor/recipes-phosphor/state/phosphor-state-manager_git.bb
index 2548720..7301b54 100644
--- a/meta-phosphor/recipes-phosphor/state/phosphor-state-manager_git.bb
+++ b/meta-phosphor/recipes-phosphor/state/phosphor-state-manager_git.bb
@@ -138,6 +138,7 @@
 #             be called by reboot and start target.
 # - stop:     Services to run to shutdown the host
 # - quiesce:  Target to enter on host boot failure
+# - graceful-quiesce:  Target to enter on host boot failure (allow host graceful shutdown)
 # - shutdown: Tell host to shutdown, then stop system
 # - reset:   Services to check if host is running and update host "start" target
 # - crash:   Target to run when host crashes. it is very much similar to
@@ -150,7 +151,7 @@
 #                      notifying the host.
 # - diagnostic-mode: This will be entered when the host is collecting diagnostic
 #                    data for itself.
-HOST_ACTION_TARGETS = "start startmin stop quiesce reset shutdown crash timeout "
+HOST_ACTION_TARGETS = "start startmin stop quiesce graceful-quiesce reset shutdown crash timeout "
 HOST_ACTION_TARGETS += "reboot warm-reboot force-warm-reboot diagnostic-mode"
 
 CHASSIS_SYNCH_FMT = "obmc-power-{0}@.target"
@@ -193,6 +194,6 @@
 
 
 SRC_URI += "git://github.com/openbmc/phosphor-state-manager;branch=master;protocol=https"
-SRCREV = "106152c64631979b04cdb624ae32755ea1802603"
+SRCREV = "aaa8d3466b931b9cf5a64e3a972cd23c2b5b90c6"
 
 S = "${WORKDIR}/git"