diff --git a/sysinv/sysinv/sysinv/sysinv/common/app_metadata.py b/sysinv/sysinv/sysinv/sysinv/common/app_metadata.py
index 686032344c..a82de4b6b6 100644
--- a/sysinv/sysinv/sysinv/sysinv/common/app_metadata.py
+++ b/sysinv/sysinv/sysinv/sysinv/common/app_metadata.py
@@ -125,7 +125,7 @@ def validate_metadata_file(path, metadata_file, upgrade_from_release=None):
             if not error_message:
                 error_message = _("Invalid boolean value: {}"
                                   .format(value))
-                raise exception.SysinvException(error_message)
+            raise exception.SysinvException(error_message)
 
     def validate_dict(value, error_message=None):
         """Validate dictionary types"""
@@ -381,6 +381,13 @@ def validate_metadata_file(path, metadata_file, upgrade_from_release=None):
                 for version in from_versions:
                     validate_string(version)
 
+        # Downgrades section validation
+        downgrades = validate_dict_field(doc, constants.APP_METADATA_DOWNGRADES)
+        if downgrades:
+            validate_boolstr_field(
+                downgrades,
+                constants.APP_METADATA_AUTO_DOWNGRADE)
+
         # Kubernetes version section validation
         k8s_version = validate_k8s_version(doc)
         if k8s_version:
diff --git a/sysinv/sysinv/sysinv/sysinv/common/constants.py b/sysinv/sysinv/sysinv/sysinv/common/constants.py
index e6aad8cb51..ed22d1ae18 100644
--- a/sysinv/sysinv/sysinv/sysinv/common/constants.py
+++ b/sysinv/sysinv/sysinv/sysinv/common/constants.py
@@ -1982,6 +1982,9 @@ APP_METADATA_UPGRADES = 'upgrades'
 APP_METADATA_UPDATE_FAILURE_SKIP_RECOVERY = 'update_failure_no_rollback'
 APP_METADATA_AUTO_UPDATE = 'auto_update'
 APP_METADATA_AUTO_UPDATE_DEFAULT_VALUE = True
+APP_METADATA_DOWNGRADES = 'downgrades'
+APP_METADATA_AUTO_DOWNGRADE = 'auto_downgrade'
+APP_METADATA_AUTO_DOWNGRADE_DEFAULT_VALUE = True
 APP_METADATA_FAILED_VERSIONS = 'failed_versions'
 APP_METADATA_FROM_VERSIONS = 'from_versions'
 APP_METADATA_SUPPORTED_K8S_VERSION = 'supported_k8s_version'
diff --git a/sysinv/sysinv/sysinv/sysinv/conductor/manager.py b/sysinv/sysinv/sysinv/sysinv/conductor/manager.py
index e6626f05e1..8536a32989 100644
--- a/sysinv/sysinv/sysinv/sysinv/conductor/manager.py
+++ b/sysinv/sysinv/sysinv/sysinv/conductor/manager.py
@@ -53,6 +53,7 @@ import xml.etree.ElementTree as ElementTree
 from contextlib import contextmanager
 from datetime import datetime
 from datetime import timedelta
+from distutils.util import strtobool
 from distutils.version import LooseVersion
 from copy import deepcopy
 from urllib3.exceptions import MaxRetryError
@@ -7782,6 +7783,11 @@ class ConductorManager(service.PeriodicService):
                                                                          True,
                                                                          k8s_upgrade_timing)
 
+        auto_downgrade = strtobool(app.app_metadata.get(constants.APP_METADATA_DOWNGRADES, {})
+                                   .get(constants.APP_METADATA_AUTO_DOWNGRADE,
+                                        str(constants.APP_METADATA_AUTO_DOWNGRADE_DEFAULT_VALUE)))
+        latest_downgrade_bundle = None
+        available_versions = set()
         latest_version_bundle = None
 
         if k8s_version is None:
@@ -7790,15 +7796,8 @@ class ConductorManager(service.PeriodicService):
             k8s_version = k8s_version.strip().lstrip('v')
 
         for bundle_metadata in bundle_metadata_list:
-            if LooseVersion(bundle_metadata.version) <= LooseVersion(app.app_version):
-                LOG.debug("Bundle {} version {} lower than installed app version ({})"
-                          .format(bundle_metadata.file_path,
-                                  bundle_metadata.version,
-                                  app.app_version))
-            elif not bundle_metadata.auto_update:
-                LOG.debug("Application auto update disabled for bundle {}"
-                          .format(bundle_metadata.file_path))
-            elif LooseVersion(k8s_version) < LooseVersion(bundle_metadata.k8s_minimum_version):
+            available_versions.add(bundle_metadata.version)
+            if LooseVersion(k8s_version) < LooseVersion(bundle_metadata.k8s_minimum_version):
                 LOG.debug("Kubernetes version {} is lower than {} which is "
                           "the minimum required for bundle {}"
                           .format(k8s_version,
@@ -7811,6 +7810,21 @@ class ConductorManager(service.PeriodicService):
                           .format(k8s_version,
                                   bundle_metadata.k8s_maximum_version,
                                   bundle_metadata.file_path))
+            elif LooseVersion(bundle_metadata.version) == LooseVersion(app.app_version):
+                LOG.debug("Bundle {} version and installed app version are the same ({})"
+                          .format(bundle_metadata.file_path,
+                                  app.app_version))
+            elif LooseVersion(bundle_metadata.version) < LooseVersion(app.app_version):
+                LOG.debug("Bundle {} version {} is lower than installed app version ({})"
+                          .format(bundle_metadata.file_path,
+                                  bundle_metadata.version,
+                                  app.app_version))
+                if (latest_downgrade_bundle is None or LooseVersion(bundle_metadata.version) >
+                        LooseVersion(latest_downgrade_bundle.version)):
+                    latest_downgrade_bundle = bundle_metadata
+            elif not bundle_metadata.auto_update:
+                LOG.debug("Application auto update disabled for bundle {}"
+                          .format(bundle_metadata.file_path))
             elif ((latest_version_bundle is None) or
                   (LooseVersion(bundle_metadata.version) >
                    LooseVersion(latest_version_bundle.version))):
@@ -7818,6 +7832,15 @@ class ConductorManager(service.PeriodicService):
                 # of the current one is higher than the one previously set.
                 latest_version_bundle = bundle_metadata
 
+        # Downgrade if the installed app version is not available anymore and an older compatible
+        # bundle is available instead.
+        if (auto_downgrade and
+                app.app_version not in available_versions and
+                latest_downgrade_bundle is not None):
+            LOG.info("Application {} will be downgraded from version {} to {}"
+                     .format(app.name, app.app_version, latest_downgrade_bundle.version))
+            return latest_downgrade_bundle
+
         return latest_version_bundle
 
     def _auto_update_app(self,