diff --git a/gobblin-service/src/main/java/org/apache/gobblin/service/modules/flowgraph/Dag.java b/gobblin-service/src/main/java/org/apache/gobblin/service/modules/flowgraph/Dag.java
index 29ffc485e02..5f6e73ebd6c 100644
--- a/gobblin-service/src/main/java/org/apache/gobblin/service/modules/flowgraph/Dag.java
+++ b/gobblin-service/src/main/java/org/apache/gobblin/service/modules/flowgraph/Dag.java
@@ -48,6 +48,8 @@ public class Dag<T> {
   // Map to maintain parent to children mapping.
   private Map<DagNode, List<DagNode<T>>> parentChildMap;
   private List<DagNode<T>> nodes;
+  @Setter
+  private boolean isFailedDag;
 
   @Setter
   @Deprecated // because this field is not persisted in mysql and contains information in very limited cases
diff --git a/gobblin-service/src/main/java/org/apache/gobblin/service/modules/orchestration/DagManagementStateStore.java b/gobblin-service/src/main/java/org/apache/gobblin/service/modules/orchestration/DagManagementStateStore.java
index 139082545b2..e1979ee71c3 100644
--- a/gobblin-service/src/main/java/org/apache/gobblin/service/modules/orchestration/DagManagementStateStore.java
+++ b/gobblin-service/src/main/java/org/apache/gobblin/service/modules/orchestration/DagManagementStateStore.java
@@ -77,22 +77,11 @@ public interface DagManagementStateStore {
 
   /**
    * This marks the dag as a failed one.
-   * Failed dags are queried using {@link DagManagementStateStore#getFailedDag(DagManager.DagId)} ()} later to be retried.
+   * Failed dags are queried using {@link DagManagementStateStore#getDag(DagManager.DagId)} ()} later to be retried.
    * @param dagId failing dag's dagId
    */
   void markDagFailed(DagManager.DagId dagId) throws IOException;
 
-  /**
-   * Returns the failed dag.
-   * If the dag is not found because it was never marked as failed through
-   * {@link DagManagementStateStore#markDagFailed(org.apache.gobblin.service.modules.orchestration.DagManager.DagId)},
-   * it returns Optional.absent.
-   * @param dagId dag id of the failed dag
-   */
-  Optional<Dag<JobExecutionPlan>> getFailedDag(DagManager.DagId dagId) throws IOException;
-
-  void deleteFailedDag(DagManager.DagId dagId) throws IOException;
-
   /**
    * Adds state of a {@link org.apache.gobblin.service.modules.flowgraph.Dag.DagNode} to the store.
    * Note that a DagNode is a part of a Dag and must already be present in the store through
diff --git a/gobblin-service/src/main/java/org/apache/gobblin/service/modules/orchestration/DagStateStoreWithDagNodes.java b/gobblin-service/src/main/java/org/apache/gobblin/service/modules/orchestration/DagStateStoreWithDagNodes.java
index 03aaf41520c..64c11f81e12 100644
--- a/gobblin-service/src/main/java/org/apache/gobblin/service/modules/orchestration/DagStateStoreWithDagNodes.java
+++ b/gobblin-service/src/main/java/org/apache/gobblin/service/modules/orchestration/DagStateStoreWithDagNodes.java
@@ -40,7 +40,8 @@ public interface DagStateStoreWithDagNodes extends DagStateStore {
    * Returns 1 if the dag node is inserted as a new one, 2 if is updated, and 0 if new dag node is same as the existing one
    * <a href="https://dev.mysql.com/doc/refman/8.4/en/insert-on-duplicate.html">Refer</a>
    */
-  int updateDagNode(DagManager.DagId dagId, Dag.DagNode<JobExecutionPlan> dagNode) throws IOException;
+  int updateDagNode(DagManager.DagId dagId, Dag.DagNode<JobExecutionPlan> dagNode, boolean isFailedDag) throws IOException;
+
 
   /**
    * Returns all the {@link org.apache.gobblin.service.modules.flowgraph.Dag.DagNode}s for the given
diff --git a/gobblin-service/src/main/java/org/apache/gobblin/service/modules/orchestration/MySqlDagManagementStateStore.java b/gobblin-service/src/main/java/org/apache/gobblin/service/modules/orchestration/MySqlDagManagementStateStore.java
index c0984f835b2..7ab6e8b34aa 100644
--- a/gobblin-service/src/main/java/org/apache/gobblin/service/modules/orchestration/MySqlDagManagementStateStore.java
+++ b/gobblin-service/src/main/java/org/apache/gobblin/service/modules/orchestration/MySqlDagManagementStateStore.java
@@ -61,15 +61,12 @@
 @Slf4j
 @Singleton
 public class MySqlDagManagementStateStore implements DagManagementStateStore {
-  // todo - these two stores should merge
   private DagStateStoreWithDagNodes dagStateStore;
-  private DagStateStoreWithDagNodes failedDagStateStore;
   private final JobStatusRetriever jobStatusRetriever;
   private boolean dagStoresInitialized = false;
   private final UserQuotaManager quotaManager;
   Map<URI, TopologySpec> topologySpecMap;
   private final Config config;
-  public static final String FAILED_DAG_STATESTORE_PREFIX = "failedDagStateStore";
   public static final String DAG_STATESTORE_CLASS_KEY = DagManager.DAG_MANAGER_PREFIX + "dagStateStoreClass";
   FlowCatalog flowCatalog;
   @Getter
@@ -91,8 +88,6 @@ public MySqlDagManagementStateStore(Config config, FlowCatalog flowCatalog, User
   private synchronized void start() {
     if (!dagStoresInitialized) {
       this.dagStateStore = createDagStateStore(config, topologySpecMap);
-      this.failedDagStateStore = createDagStateStore(ConfigUtils.getConfigOrEmpty(config, FAILED_DAG_STATESTORE_PREFIX).withFallback(config),
-          topologySpecMap);
       // This implementation does not need to update quota usage when the service restarts or when its leadership status
       // changes because quota usage are persisted in mysql table. For the same reason, there is no need to call getDags also.
       // Also, calling getDags during startUp may fail, because the topologies that are required to deserialize dags may
@@ -134,10 +129,8 @@ public void addDag(Dag<JobExecutionPlan> dag) throws IOException {
   @Override
   public void markDagFailed(DagManager.DagId dagId) throws IOException {
     Dag<JobExecutionPlan> dag = this.dagStateStore.getDag(dagId);
-    this.failedDagStateStore.writeCheckpoint(dag);
-    this.dagStateStore.cleanUp(dagId);
-    // todo - updated failedDagStateStore iff cleanup returned 1
-    // or merge dagStateStore and failedDagStateStore and change the flag that marks a dag `failed`
+    dag.setFailedDag(true);
+    this.dagStateStore.writeCheckpoint(dag);
     log.info("Marked dag failed {}", dagId);
   }
 
@@ -147,21 +140,10 @@ public void deleteDag(DagManager.DagId dagId) throws IOException {
     log.info("Deleted dag {}", dagId);
   }
 
-  @Override
-  public void deleteFailedDag(DagManager.DagId dagId) throws IOException {
-    this.failedDagStateStore.cleanUp(dagId);
-    log.info("Deleted failed dag {}", dagId);
-  }
-
-  @Override
-  public Optional<Dag<JobExecutionPlan>> getFailedDag(DagManager.DagId dagId) throws IOException {
-    return Optional.of(this.failedDagStateStore.getDag(dagId));
-  }
-
   @Override
   public synchronized void addDagNodeState(Dag.DagNode<JobExecutionPlan> dagNode, DagManager.DagId dagId)
       throws IOException {
-    this.dagStateStore.updateDagNode(dagId, dagNode);
+    this.dagStateStore.updateDagNode(dagId, dagNode, false);// isFailedDag is set as false because addDagNodeState adds a new DagNode, doesn't update an existing dagNode as failed.
   }
 
   @Override
diff --git a/gobblin-service/src/main/java/org/apache/gobblin/service/modules/orchestration/MysqlDagStateStoreWithDagNodes.java b/gobblin-service/src/main/java/org/apache/gobblin/service/modules/orchestration/MysqlDagStateStoreWithDagNodes.java
index 2692e20697a..afe24c740a2 100644
--- a/gobblin-service/src/main/java/org/apache/gobblin/service/modules/orchestration/MysqlDagStateStoreWithDagNodes.java
+++ b/gobblin-service/src/main/java/org/apache/gobblin/service/modules/orchestration/MysqlDagStateStoreWithDagNodes.java
@@ -77,19 +77,19 @@ public class MysqlDagStateStoreWithDagNodes implements DagStateStoreWithDagNodes
   protected final GsonSerDe<List<JobExecutionPlan>> serDe;
   private final JobExecutionPlanDagFactory jobExecPlanDagFactory;
 
-  // todo add a column that tells if it is a running dag or a failed dag
-  protected static final String CREATE_TABLE_STATEMENT = "CREATE TABLE IF NOT EXISTS %s ("
-      + "dag_node_id VARCHAR(" + ServiceConfigKeys.MAX_DAG_NODE_ID_LENGTH + ") CHARACTER SET latin1 COLLATE latin1_bin NOT NULL, "
-      + "parent_dag_id VARCHAR(" + ServiceConfigKeys.MAX_DAG_ID_LENGTH + ") NOT NULL, "
-      + "dag_node JSON NOT NULL, "
-      + "modified_time timestamp NOT NULL DEFAULT CURRENT_TIMESTAMP ON UPDATE CURRENT_TIMESTAMP, "
-      + "PRIMARY KEY (dag_node_id), "
-      + "UNIQUE INDEX dag_node_index (dag_node_id), "
-      + "INDEX dag_index (parent_dag_id))";
-
-  protected static final String INSERT_STATEMENT = "INSERT INTO %s (dag_node_id, parent_dag_id, dag_node) "
-      + "VALUES (?, ?, ?) AS new ON DUPLICATE KEY UPDATE dag_node = new.dag_node";
-  protected static final String GET_DAG_NODES_STATEMENT = "SELECT dag_node FROM %s WHERE parent_dag_id = ?";
+  protected static final String CREATE_TABLE_STATEMENT =
+      "CREATE TABLE IF NOT EXISTS %s (" + "dag_node_id VARCHAR(" + ServiceConfigKeys.MAX_DAG_NODE_ID_LENGTH
+          + ") CHARACTER SET latin1 COLLATE latin1_bin NOT NULL, " + "parent_dag_id VARCHAR("
+          + ServiceConfigKeys.MAX_DAG_ID_LENGTH + ") NOT NULL, " + "dag_node JSON NOT NULL, "
+          + "modified_time timestamp NOT NULL DEFAULT CURRENT_TIMESTAMP ON UPDATE CURRENT_TIMESTAMP, "
+          + "is_failed_dag TINYINT(1) DEFAULT 0, " + "PRIMARY KEY (dag_node_id), "
+          + "UNIQUE INDEX dag_node_index (dag_node_id), " + "INDEX dag_index (parent_dag_id))";
+
+  protected static final String INSERT_STATEMENT =
+      "INSERT INTO %s (dag_node_id, parent_dag_id, dag_node, is_failed_dag) "
+          + "VALUES (?, ?, ?, ?) AS new ON DUPLICATE KEY UPDATE dag_node = new.dag_node, is_failed_dag = new.is_failed_dag";
+  protected static final String GET_DAG_NODES_STATEMENT =
+      "SELECT dag_node FROM %s WHERE parent_dag_id = ?";
   protected static final String GET_DAG_NODE_STATEMENT = "SELECT dag_node FROM %s WHERE dag_node_id = ?";
   protected static final String DELETE_DAG_STATEMENT = "DELETE FROM %s WHERE parent_dag_id = ?";
   private final ContextAwareCounter totalDagCount;
@@ -105,7 +105,8 @@ public MysqlDagStateStoreWithDagNodes(Config config, Map<URI, TopologySpec> topo
     DataSource dataSource = MysqlDataSourceFactory.get(config, SharedResourcesBrokerFactory.getImplicitBroker());
 
     try (Connection connection = dataSource.getConnection();
-        PreparedStatement createStatement = connection.prepareStatement(String.format(CREATE_TABLE_STATEMENT, tableName))) {
+        PreparedStatement createStatement = connection.prepareStatement(
+            String.format(CREATE_TABLE_STATEMENT, tableName))) {
       createStatement.executeUpdate();
       connection.commit();
     } catch (SQLException e) {
@@ -126,12 +127,11 @@ public MysqlDagStateStoreWithDagNodes(Config config, Map<URI, TopologySpec> topo
   }
 
   @Override
-  public void writeCheckpoint(Dag<JobExecutionPlan> dag)
-      throws IOException {
+  public void writeCheckpoint(Dag<JobExecutionPlan> dag) throws IOException {
     DagManager.DagId dagId = DagManagerUtils.generateDagId(dag);
     boolean newDag = false;
     for (Dag.DagNode<JobExecutionPlan> dagNode : dag.getNodes()) {
-      if (updateDagNode(dagId, dagNode) == 1) {
+      if (updateDagNode(dagId, dagNode, dag.isFailedDag()) == 1) {
         newDag = true;
       }
     }
@@ -167,7 +167,7 @@ public void cleanUp(String dagId) throws IOException {
   @Override
   public List<Dag<JobExecutionPlan>> getDags() throws IOException {
     throw new NotSupportedException(getClass().getSimpleName() + " does not need this legacy API that originated with "
-        + "the DagManager that is replaced by DagProcessingEngine");  }
+        + "the DagManager that is replaced by DagProcessingEngine");}
 
   @Override
   public Dag<JobExecutionPlan> getDag(DagManager.DagId dagId) throws IOException {
@@ -195,13 +195,14 @@ private Dag<JobExecutionPlan> convertDagNodesIntoDag(Set<Dag.DagNode<JobExecutio
   }
 
   @Override
-  public int updateDagNode(DagManager.DagId parentDagId, Dag.DagNode<JobExecutionPlan> dagNode) throws IOException {
+  public int updateDagNode(DagManager.DagId parentDagId, Dag.DagNode<JobExecutionPlan> dagNode, boolean isFailedDag) throws IOException {
     String dagNodeId = dagNode.getValue().getId().toString();
     return dbStatementExecutor.withPreparedStatement(String.format(INSERT_STATEMENT, tableName), insertStatement -> {
       try {
         insertStatement.setString(1, dagNodeId);
         insertStatement.setString(2, parentDagId.toString());
         insertStatement.setString(3, this.serDe.serialize(Collections.singletonList(dagNode.getValue())));
+        insertStatement.setInt(4, isFailedDag ? 1 : 0);
         return insertStatement.executeUpdate();
       } catch (SQLException e) {
         throw new IOException(String.format("Failure adding dag node for %s", dagNodeId), e);
diff --git a/gobblin-service/src/main/java/org/apache/gobblin/service/modules/orchestration/proc/ResumeDagProc.java b/gobblin-service/src/main/java/org/apache/gobblin/service/modules/orchestration/proc/ResumeDagProc.java
index 8326d83f095..773b6a605e7 100644
--- a/gobblin-service/src/main/java/org/apache/gobblin/service/modules/orchestration/proc/ResumeDagProc.java
+++ b/gobblin-service/src/main/java/org/apache/gobblin/service/modules/orchestration/proc/ResumeDagProc.java
@@ -54,7 +54,7 @@ public ResumeDagProc(ResumeDagTask resumeDagTask, Config config) {
   @Override
   protected Optional<Dag<JobExecutionPlan>> initialize(DagManagementStateStore dagManagementStateStore)
       throws IOException {
-      return dagManagementStateStore.getFailedDag(getDagId());
+      return dagManagementStateStore.getDag(getDagId());
   }
 
   @Override
@@ -92,7 +92,7 @@ protected void act(DagManagementStateStore dagManagementStateStore, Optional<Dag
     dagManagementStateStore.addDag(failedDag.get());
 
     // if it fails here, it will check point the failed dag in the (running) dag store again, which is idempotent
-    dagManagementStateStore.deleteFailedDag(getDagId());
+    dagManagementStateStore.deleteDag(getDagId());
 
     DagProcUtils.submitNextNodes(dagManagementStateStore, failedDag.get(), getDagId());
 
diff --git a/gobblin-service/src/test/java/org/apache/gobblin/service/modules/orchestration/MySqlDagManagementStateStoreTest.java b/gobblin-service/src/test/java/org/apache/gobblin/service/modules/orchestration/MySqlDagManagementStateStoreTest.java
index 31859439029..adf02abdb28 100644
--- a/gobblin-service/src/test/java/org/apache/gobblin/service/modules/orchestration/MySqlDagManagementStateStoreTest.java
+++ b/gobblin-service/src/test/java/org/apache/gobblin/service/modules/orchestration/MySqlDagManagementStateStoreTest.java
@@ -135,9 +135,7 @@ public static MySqlDagManagementStateStore getDummyDMSS(ITestMetastoreDatabase t
     configBuilder.addPrimitive(MySqlDagManagementStateStore.DAG_STATESTORE_CLASS_KEY, MysqlDagStateStoreWithDagNodes.class.getName())
         .addPrimitive(ConfigurationKeys.STATE_STORE_DB_URL_KEY, testMetastoreDatabase.getJdbcUrl())
         .addPrimitive(ConfigurationKeys.STATE_STORE_DB_TABLE_KEY, "dag" + 1)
-        .addPrimitive(ConfigurationKeys.STATE_STORE_DB_USER_KEY, TEST_USER)
-        .addPrimitive(MySqlDagManagementStateStore.FAILED_DAG_STATESTORE_PREFIX
-            + "." + ConfigurationKeys.STATE_STORE_DB_TABLE_KEY, TEST_TABLE + 2);
+        .addPrimitive(ConfigurationKeys.STATE_STORE_DB_USER_KEY, TEST_USER);
     Config config = configBuilder.build();
     JobStatusRetriever jobStatusRetriever = mock(JobStatusRetriever.class);
     JobStatus dummyJobStatus = JobStatus.builder().flowName("fn").flowGroup("fg").jobGroup("fg").jobName("job0")
diff --git a/gobblin-service/src/test/java/org/apache/gobblin/service/modules/orchestration/MysqlDagStateStoreWithDagNodesTest.java b/gobblin-service/src/test/java/org/apache/gobblin/service/modules/orchestration/MysqlDagStateStoreWithDagNodesTest.java
index 131186b3d12..8054f4f7faa 100644
--- a/gobblin-service/src/test/java/org/apache/gobblin/service/modules/orchestration/MysqlDagStateStoreWithDagNodesTest.java
+++ b/gobblin-service/src/test/java/org/apache/gobblin/service/modules/orchestration/MysqlDagStateStoreWithDagNodesTest.java
@@ -17,10 +17,18 @@
 
 package org.apache.gobblin.service.modules.orchestration;
 
+import java.io.IOException;
 import java.net.URI;
+import java.sql.ResultSet;
+import java.sql.SQLException;
+import java.util.ArrayList;
 import java.util.HashMap;
+import java.util.HashSet;
+import java.util.List;
 import java.util.Map;
 
+import lombok.extern.slf4j.Slf4j;
+
 import org.testng.Assert;
 import org.testng.annotations.AfterClass;
 import org.testng.annotations.BeforeClass;
@@ -36,17 +44,22 @@
 import org.apache.gobblin.service.ExecutionStatus;
 import org.apache.gobblin.service.modules.flowgraph.Dag;
 import org.apache.gobblin.service.modules.spec.JobExecutionPlan;
-
+import org.apache.gobblin.broker.SharedResourcesBrokerFactory;
+import org.apache.gobblin.metastore.MysqlDataSourceFactory;
+import org.apache.gobblin.util.DBStatementExecutor;
 
 /**
  * Mainly testing functionalities related to DagStateStore but not Mysql-related components.
  */
+@Slf4j
 public class MysqlDagStateStoreWithDagNodesTest {
 
   private DagStateStore dagStateStore;
-
   private static final String TEST_USER = "testUser";
   private static ITestMetastoreDatabase testDb;
+  private DBStatementExecutor dbStatementExecutor;
+  private static final String GET_DAG_NODES_STATEMENT = "SELECT dag_node, is_failed_dag FROM %s WHERE parent_dag_id = ?";
+  private static final String tableName = "dag_node_state_store";
 
   @BeforeClass
   public void setUp() throws Exception {
@@ -63,6 +76,8 @@ public void setUp() throws Exception {
     URI specExecURI = new URI(specExecInstance);
     topologySpecMap.put(specExecURI, topologySpec);
     this.dagStateStore = new MysqlDagStateStoreWithDagNodes(configBuilder.build(), topologySpecMap);
+    dbStatementExecutor = new DBStatementExecutor(
+        MysqlDataSourceFactory.get(configBuilder.build(), SharedResourcesBrokerFactory.getImplicitBroker()), log);
   }
 
   @AfterClass(alwaysRun = true)
@@ -74,7 +89,7 @@ public void tearDown() throws Exception {
   }
 
   @Test
-  public void testAddGetAndDeleteDag() throws Exception{
+  public void testAddGetAndDeleteDag() throws Exception {
     Dag<JobExecutionPlan> originalDag1 = DagTestUtils.buildDag("random_1", 123L);
     Dag<JobExecutionPlan> originalDag2 = DagTestUtils.buildDag("random_2", 456L);
     DagManager.DagId dagId1 = DagManagerUtils.generateDagId(originalDag1);
@@ -137,4 +152,56 @@ public void testAddGetAndDeleteDag() throws Exception{
     Assert.assertNull(this.dagStateStore.getDag(dagId1));
     Assert.assertNull(this.dagStateStore.getDag(dagId2));
   }
+
+  @Test
+  public void testMarkDagAsFailed() throws Exception {
+    // Set up initial conditions
+    Dag<JobExecutionPlan> dag = DagTestUtils.buildDag("test_dag", 789L);
+    DagManager.DagId dagId = DagManagerUtils.generateDagId(dag);
+
+    this.dagStateStore.writeCheckpoint(dag);
+
+    // Fetch all initial states into a list
+    List<Boolean> initialStates = fetchDagNodeStates(dagId.toString());
+
+    // Check Initial State
+    for (Boolean state : initialStates) {
+      Assert.assertFalse(state);
+    }
+    // Set the DAG as failed
+    dag.setFailedDag(true);
+    this.dagStateStore.writeCheckpoint(dag);
+
+    // Fetch all states after marking the DAG as failed
+    List<Boolean> failedStates = fetchDagNodeStates(dagId.toString());
+
+    // Check if all states are now true (indicating failure)
+    for (Boolean state : failedStates) {
+      Assert.assertTrue(state);
+    }
+    dagStateStore.cleanUp(dagId);
+    Assert.assertNull(this.dagStateStore.getDag(dagId));
+  }
+
+  private List<Boolean> fetchDagNodeStates(String dagId) throws IOException {
+    List<Boolean> states = new ArrayList<>();
+
+    dbStatementExecutor.withPreparedStatement(String.format(GET_DAG_NODES_STATEMENT, tableName), getStatement -> {
+
+      getStatement.setString(1, dagId.toString());
+
+      HashSet<Dag.DagNode<JobExecutionPlan>> dagNodes = new HashSet<>();
+
+      try (ResultSet rs = getStatement.executeQuery()) {
+        while (rs.next()) {
+          states.add(rs.getBoolean(2));
+        }
+        return dagNodes;
+      } catch (SQLException e) {
+        throw new IOException(String.format("Failure get dag nodes for dag %s", dagId), e);
+      }
+    }, true);
+
+    return states;
+  }
 }
\ No newline at end of file