diff --git a/service-mgmt/sm/src/sm_failover_fail_pending_state.cpp b/service-mgmt/sm/src/sm_failover_fail_pending_state.cpp
index 94431ba6..45cf89f0 100644
--- a/service-mgmt/sm/src/sm_failover_fail_pending_state.cpp
+++ b/service-mgmt/sm/src/sm_failover_fail_pending_state.cpp
@@ -206,8 +206,8 @@ SmFailoverFailPendingState::~SmFailoverFailPendingState()
 
 SmErrorT SmFailoverFailPendingState::event_handler(SmFailoverEventT event, const ISmFSMEventData* event_data)
 {
-    //SmFSMEventDataTypeT event_data_type = event_data->get_event_data_type();
     bool duplex = false;
+    bool blind_guess = false;
     switch (event)
     {
         case SM_FAILOVER_EVENT_IF_STATE_CHANGED:
@@ -249,13 +249,10 @@ SmErrorT SmFailoverFailPendingState::event_handler(SmFailoverEventT event, const
                 if(healthy)
                 {
                     blind_guess_scenario_start();
-                }
-                else
-                {
-                    this->fsm.set_state(SM_FAILOVER_STATE_FAILED);
+                    blind_guess = true;
                 }
             }
-            else
+            if( !blind_guess )
             {
                 SmSystemFailoverStatus& failover_status = SmSystemFailoverStatus::get_status();
                 SmErrorT error = sm_failover_ss_get_survivor(failover_status);
diff --git a/service-mgmt/sm/src/sm_failover_failed_state.cpp b/service-mgmt/sm/src/sm_failover_failed_state.cpp
index 1f41a15c..59aaf17f 100644
--- a/service-mgmt/sm/src/sm_failover_failed_state.cpp
+++ b/service-mgmt/sm/src/sm_failover_failed_state.cpp
@@ -20,6 +20,7 @@
 #include "sm_types.h"
 #include "sm_debug.h"
 #include "sm_node_utils.h"
+#include "sm_node_api.h"
 #include "sm_failover.h"
 #include "sm_failover_fsm.h"
 #include "sm_failover_ss.h"
@@ -182,9 +183,54 @@ static bool sm_failover_failed_recovery_criteria_met( void )
     return (criteria_met);
 }
 
+SmErrorT proceed_recovery()
+{
+    SmErrorT error;
+    char peer_name[SM_NODE_NAME_MAX_CHAR];
+    char host_name[SM_NODE_NAME_MAX_CHAR];
+    // delete peer node
+    error = sm_node_api_get_peername(peer_name);
+    if(SM_OKAY != error)
+    {
+        DPRINTFI("Cannot retrieve peer's hostname, error %s", sm_error_str(error));
+        return error;
+    }
+    error = sm_node_api_delete_node(peer_name);
+    if(SM_OKAY != error)
+    {
+        DPRINTFI("Failed to delete peer %s, error %s", peer_name, sm_error_str(error));
+        return error;
+    }else
+    {
+        DPRINTFI("Peer %s is deleted.", peer_name);
+    }
+
+    // enable host
+    error = sm_node_api_get_hostname(host_name);
+    if(SM_OKAY != error)
+    {
+        DPRINTFI("Cannot retrieve hostname, error %s", sm_error_str(error));
+        return error;
+    }
+    error = sm_node_api_recover_node(host_name);
+    if(SM_OKAY != error)
+    {
+        DPRINTFI("Failed to recover %s, error %s", host_name, sm_error_str(error));
+        return error;
+    }else
+    {
+        DPRINTFI("Host %s is recovered.", host_name);
+    }
+
+    sm_node_utils_reset_unhealthy_flag();
+    DPRINTFI("Unhealthy flag is removed");
+    return SM_OKAY;
+}
+
 // The 'Failover Failed' state recovery audit handler
 SmErrorT SmFailoverFailedState::event_handler(SmFailoverEventT event, const ISmFSMEventData* event_data)
 {
+    SmErrorT error;
     event_data=event_data;
     switch (event)
     {
@@ -196,15 +242,21 @@ SmErrorT SmFailoverFailedState::event_handler(SmFailoverEventT event, const ISmF
                 DPRINTFI("************************************");
                 DPRINTFI("** Failover Failed state recovery **");
                 DPRINTFI("************************************");
-                sm_node_utils_reset_unhealthy_flag();
-                sm_failover_failed_process_restart(PROCESS_SM);
-                for ( int i = 0 ; i < 10 ; i++ )
+                error = proceed_recovery();
+                if(SM_OKAY != error)
                 {
-                    // waiting for shutdown
-                    sleep(1);
+                    DPRINTFE("Cannot recover from failed state");
+                }else
+                {
+                    sm_failover_failed_process_restart(PROCESS_SM);
+                    for ( int i = 0 ; i < 10 ; i++ )
+                    {
+                        // waiting for shutdown
+                        sleep(1);
+                    }
+                    DPRINTFE("Restart did not occur ; reinstating unhealthy flag ; recovery will retry");
+                    sm_node_utils_set_unhealthy();
                 }
-                DPRINTFE("Restart did not occur ; reinstating unhealthy flag ; recovery will retry");
-                sm_node_utils_set_unhealthy();
             }
             else if ( ++_log_throttle > 1 )
             {
diff --git a/service-mgmt/sm/src/sm_node_api.cpp b/service-mgmt/sm/src/sm_node_api.cpp
index 179ec770..c15d50b6 100644
--- a/service-mgmt/sm/src/sm_node_api.cpp
+++ b/service-mgmt/sm/src/sm_node_api.cpp
@@ -742,6 +742,44 @@ SmErrorT sm_node_api_fail_node( char node_name[] )
 }
 // ****************************************************************************
 
+// ****************************************************************************
+// Node API - Recover Node
+// ======================
+SmErrorT sm_node_api_recover_node( char node_name[] )
+{
+    SmDbNodeT node;
+    SmErrorT error;
+    error = sm_db_nodes_read( _sm_db_handle, node_name, &node );
+    if( SM_OKAY != error )
+    {
+        DPRINTFE( "Failed to read node (%s) information, error=%s.",
+                  node_name, sm_error_str( error ) );
+        return( error );
+    }
+
+    if( node.oper_state != SM_NODE_OPERATIONAL_STATE_DISABLED ||
+        node.avail_status != SM_NODE_AVAIL_STATUS_FAILED )
+    {
+        DPRINTFD("Not in failure mode %s", node_name);
+    }
+
+    DPRINTFE("Node %s is to recover from failure mode.", node_name);
+
+    error = sm_node_api_update_node(
+        node_name,
+        node.admin_state,
+        SM_NODE_OPERATIONAL_STATE_ENABLED, 
+        SM_NODE_AVAIL_STATUS_AVAILABLE);
+
+    if( SM_OKAY != error )
+    {
+        DPRINTFE( "Failed to set node (%s) failed, error=%s.",
+                  node_name, sm_error_str( error ) );
+    }
+    return( error );
+}
+// ****************************************************************************
+
 // ****************************************************************************
 // Node API - Delete Node
 // ======================
diff --git a/service-mgmt/sm/src/sm_node_api.h b/service-mgmt/sm/src/sm_node_api.h
index 773b434d..e8874f52 100644
--- a/service-mgmt/sm/src/sm_node_api.h
+++ b/service-mgmt/sm/src/sm_node_api.h
@@ -54,6 +54,12 @@ extern SmErrorT sm_node_api_update_node( char node_name[],
 SmErrorT sm_node_api_fail_node( char node_name[] );
 // ****************************************************************************
 
+// ****************************************************************************
+// Node API - Fail Node
+// ======================
+SmErrorT sm_node_api_recover_node( char node_name[] );
+// ****************************************************************************
+
 // ****************************************************************************
 // Node API - Delete Node
 // ======================