diff --git a/updater_sample/README.md b/updater_sample/README.md
index 3f211dd..f6c63a7 100644
--- a/updater_sample/README.md
+++ b/updater_sample/README.md
@@ -65,6 +65,32 @@
 6. Push OTA packages to the device.
 
 
+## Sample App State vs UpdateEngine Status
+
+UpdateEngine provides status for different stages of update application
+process. But it lacks of proper status codes when update fails.
+
+This creates two problems:
+
+1. If sample app is unbound from update_engine (MainActivity is paused, destroyed),
+   app doesn't receive onStatusUpdate and onPayloadApplicationCompleted notifications.
+   If app binds to update_engine after update is completed,
+   only onStatusUpdate is called, but status becomes IDLE in most cases.
+   And there is no way to know if update was successful or not.
+
+2. This sample app demostrates suspend/resume using update_engins's
+   `cancel` and `applyPayload` (which picks up from where it left).
+   When `cancel` is called, status is set to `IDLE`, which doesn't allow
+   tracking suspended state properly.
+
+To solve these problems sample app implements its own separate update
+state - `UpdaterState`. To solve the first problem, sample app persists
+`UpdaterState` on a device. When app is resumed, it checks if `UpdaterState`
+matches the update_engine's status (as onStatusUpdate is guaranteed to be called).
+If they doesn't match, sample app calls `applyPayload` again with the same
+parameters, and handles update completion properly using `onPayloadApplicationCompleted`
+callback. The second problem is solved by adding `PAUSED` updater state.
+
 ## Sending HTTP headers from UpdateEngine
 
 Sometimes OTA package server might require some HTTP headers to be present,
@@ -76,6 +102,44 @@
 which HTTP headers are supported.
 
 
+## Used update_engine APIs
+
+### UpdateEngine#bind
+
+Binds given callbacks to update_engine. When update_engine successfully
+initialized, it's guaranteed to invoke callback onStatusUpdate.
+
+### UpdateEngine#applyPayload
+
+Start an update attempt to download an apply the provided `payload_url` if
+no other update is running. The extra `key_value_pair_headers` will be
+included when fetching the payload.
+
+### UpdateEngine#cancel
+
+Cancel the ongoing update. The update could be running or suspended, but it
+can't be canceled after it was done.
+
+### UpdateEngine#resetStatus
+
+Reset the already applied update back to an idle state. This method can
+only be called when no update attempt is going on, and it will reset the
+status back to idle, deleting the currently applied update if any.
+
+### Callback: onStatusUpdate
+
+Called whenever the value of `status` or `progress` changes. For
+`progress` values changes, this method will be called only if it changes significantly.
+At this time of writing this doc, delta for `progress` is `0.005`.
+
+`onStatusUpdate` is always called when app binds to update_engine,
+except when update_engine fails to initialize.
+
+### Callback: onPayloadApplicationComplete
+
+Called whenever an update attempt is completed.
+
+
 ## Development
 
 - [x] Create a UI with list of configs, current version,
@@ -90,6 +154,10 @@
 - [x] Add demo for passing HTTP headers to `UpdateEngine#applyPayload`
 - [x] [Package compatibility check](https://source.android.com/devices/architecture/vintf/match-rules)
 - [x] Deferred switch slot demo
+- [x] Add UpdateManager; extract update logic from MainActivity
+- [x] Add Sample app update state (separate from update_engine status)
+- [-] Add smart update completion detection using onStatusUpdate
+- [ ] Add pause/resume demo
 - [ ] Add demo for passing NETWORK_ID to `UpdateEngine#applyPayload`
 - [ ] Verify system partition checksum for package
 - [?] Add non-A/B updates demo
diff --git a/updater_sample/src/com/example/android/systemupdatersample/UpdateManager.java b/updater_sample/src/com/example/android/systemupdatersample/UpdateManager.java
index c4c8c9c..f5c2ea5 100644
--- a/updater_sample/src/com/example/android/systemupdatersample/UpdateManager.java
+++ b/updater_sample/src/com/example/android/systemupdatersample/UpdateManager.java
@@ -384,11 +384,85 @@
         updateEngineApplyPayload(builder.build());
     }
 
+    /**
+     * Verifies if mUpdaterState matches mUpdateEngineStatus.
+     * If they don't match, runs applyPayload to trigger onPayloadApplicationComplete
+     * callback, which updates mUpdaterState.
+     */
+    private void ensureCorrectUpdaterState() {
+        // When mUpdaterState is one of IDLE, PAUSED, ERROR, SLOT_SWITCH_REQUIRED
+        //    then mUpdateEngineStatus must be IDLE.
+        // When mUpdaterState is RUNNING,
+        //    then mUpdateEngineStatus must not be IDLE or UPDATED_NEED_REBOOT.
+        // When mUpdaterState is REBOOT_REQUIRED,
+        //    then mUpdateEngineStatus must be UPDATED_NEED_REBOOT.
+        int state = mUpdaterState.get();
+        int updateEngineStatus = mUpdateEngineStatus.get();
+        if (state == UpdaterState.IDLE
+                || state == UpdaterState.ERROR
+                || state == UpdaterState.PAUSED
+                || state == UpdaterState.SLOT_SWITCH_REQUIRED) {
+            ensureUpdateEngineStatusIdle(state, updateEngineStatus);
+        } else if (state == UpdaterState.RUNNING) {
+            ensureUpdateEngineStatusRunning(state, updateEngineStatus);
+        } else if (state == UpdaterState.REBOOT_REQUIRED) {
+            ensureUpdateEngineStatusReboot(state, updateEngineStatus);
+        }
+    }
+
+    private void ensureUpdateEngineStatusIdle(int state, int updateEngineStatus) {
+        if (updateEngineStatus == UpdateEngine.UpdateStatusConstants.IDLE) {
+            return;
+        }
+        // It might happen when update is started not from the sample app.
+        // To make the sample app simple, we won't handle this case.
+        throw new RuntimeException("When mUpdaterState is " + state
+                + " mUpdateEngineStatus expected to be "
+                + UpdateEngine.UpdateStatusConstants.IDLE
+                + ", but it is " + updateEngineStatus);
+    }
+
+    private void ensureUpdateEngineStatusRunning(int state, int updateEngineStatus) {
+        if (updateEngineStatus != UpdateEngine.UpdateStatusConstants.UPDATED_NEED_REBOOT
+                && updateEngineStatus != UpdateEngine.UpdateStatusConstants.IDLE) {
+            return;
+        }
+        // Re-apply latest update. It makes update_engine to invoke
+        // onPayloadApplicationComplete callback. The callback notifies
+        // if update was successful or not.
+        updateEngineReApplyPayload();
+    }
+
+    private void ensureUpdateEngineStatusReboot(int state, int updateEngineStatus) {
+        if (updateEngineStatus == UpdateEngine.UpdateStatusConstants.UPDATED_NEED_REBOOT) {
+            return;
+        }
+        // This might happen when update is installed by other means,
+        // and sample app is not aware of it. To make the sample app simple,
+        // we won't handle this case.
+        throw new RuntimeException("When mUpdaterState is " + state
+                + " mUpdateEngineStatus expected to be "
+                + UpdateEngine.UpdateStatusConstants.UPDATED_NEED_REBOOT
+                + ", but it is " + updateEngineStatus);
+    }
+
+    /**
+     * Invoked by update_engine whenever update status or progress changes.
+     * It's also guaranteed to be invoked when app binds to the update_engine, except
+     * when update_engine fails to initialize (as defined in
+     * system/update_engine/binder_service_android.cc in
+     * function BinderUpdateEngineAndroidService::bind).
+     *
+     * @param status one of {@link UpdateEngine.UpdateStatusConstants}.
+     * @param progress a number from 0.0 to 1.0.
+     */
     private void onStatusUpdate(int status, float progress) {
         int previousStatus = mUpdateEngineStatus.get();
         mUpdateEngineStatus.set(status);
         mProgress.set(progress);
 
+        ensureCorrectUpdaterState();
+
         getOnProgressUpdateCallback().ifPresent(callback -> callback.accept(progress));
 
         if (previousStatus != status) {
@@ -413,7 +487,7 @@
     }
 
     /**
-     * Helper class to delegate {@code update_engine} callbacks to UpdateManager
+     * Helper class to delegate {@code update_engine} callback invocations to UpdateManager.
      */
     class UpdateEngineCallbackImpl extends UpdateEngineCallback {
         @Override
diff --git a/updater_sample/src/com/example/android/systemupdatersample/ui/MainActivity.java b/updater_sample/src/com/example/android/systemupdatersample/ui/MainActivity.java
index 0b571cc..1de72c2 100644
--- a/updater_sample/src/com/example/android/systemupdatersample/ui/MainActivity.java
+++ b/updater_sample/src/com/example/android/systemupdatersample/ui/MainActivity.java
@@ -108,12 +108,16 @@
     @Override
     protected void onResume() {
         super.onResume();
+        // TODO(zhomart) load saved states
+        // Binding to UpdateEngine invokes onStatusUpdate callback,
+        // persisted updater state has to be loaded and prepared beforehand.
         this.mUpdateManager.bind();
     }
 
     @Override
     protected void onPause() {
         this.mUpdateManager.unbind();
+        // TODO(zhomart) save state
         super.onPause();
     }