diff --git a/meta-digi-dey/classes/dey-image.bbclass b/meta-digi-dey/classes/dey-image.bbclass
index 8d43b7481..21ad42958 100644
--- a/meta-digi-dey/classes/dey-image.bbclass
+++ b/meta-digi-dey/classes/dey-image.bbclass
@@ -73,3 +73,6 @@ DEPENDS += "${@oe.utils.conditional('TRUSTFENCE_SIGN', '1', 'trustfence-sign-too
 
 # Do not include kernel in rootfs images
 PACKAGE_EXCLUDE = "kernel-image-*"
+
+# Create 'tar.gz' file for SWUpdate files update mechanism.
+inherit swupdate-files
diff --git a/meta-digi-dey/classes/swupdate-files-common.bbclass b/meta-digi-dey/classes/swupdate-files-common.bbclass
new file mode 100644
index 000000000..4255d9f18
--- /dev/null
+++ b/meta-digi-dey/classes/swupdate-files-common.bbclass
@@ -0,0 +1,18 @@
+# Copyright (C) 2023 Digi International.
+#
+
+# Variable used to generate the tar.gz file. Do not modify.
+SWUPDATE_FILES_TARGZ_FILE_NAME = "swupdate-files.tar.gz"
+
+# Initialize variable to provide a custom tar.gz file containing files/dirs to install.
+SWUPDATE_FILES_TARGZ_FILE ?= ""
+
+# Initialize variable to store the files/folders that will be part of the SWUpdate package.
+SWUPDATE_FILES_LIST ?= ""
+
+# Checks whether SWU update is based on files or not.
+def update_based_on_files(d):
+    return str(d.getVar('SWUPDATE_FILES_TARGZ_FILE') != "" or d.getVar('SWUPDATE_FILES_LIST') != "").lower()
+
+# Variable that determines if SWU update is based on files or not.
+SWUPDATE_IS_FILES_UPDATE = "${@update_based_on_files(d)}"
diff --git a/meta-digi-dey/classes/swupdate-files.bbclass b/meta-digi-dey/classes/swupdate-files.bbclass
new file mode 100644
index 000000000..68f3b2849
--- /dev/null
+++ b/meta-digi-dey/classes/swupdate-files.bbclass
@@ -0,0 +1,58 @@
+# Copyright (C) 2023 Digi International.
+#
+# Generates a 'tar.gz' file with the files and folders to be included in the update package
+# as part of discrete files SWUpdate installation process.
+# 
+# Usage:
+#
+#      In your "local.conf" file, fill the "SWUPDATE_FILES_LIST" variable with the list of
+#      files/folders to include in the SWUpdate package. Paths must be relative to "/":
+#
+#      SWUPDATE_FILES_LIST = "<folder_path> <file_path> ..."
+#
+
+# Load commmon variables.
+inherit swupdate-files-common
+
+create_swupdate_targz_file() {
+	local targzfile="${DEPLOY_DIR_IMAGE}/${SWUPDATE_FILES_TARGZ_FILE_NAME}"
+	# Clean previous versions of the file.
+	rm -f "${targzfile}"
+
+	# Create the tar file including the 'sw-versions' file, as it is mandatory.
+	if [ "${SWUPDATE_FILES_TARGZ_FILE}" != "" ]; then
+		# User provides a custom tar.gz file. Copy it to distribution dir.
+		cp "${SWUPDATE_FILES_TARGZ_FILE}" "${targzfile}"
+		# Uncompress the tar file.
+		if ! gzip -t "${targzfile}"; then
+			# File is not correctly compressed, exit with error.
+			echo "[ERROR] File ${SWUPDATE_FILES_TARGZ_FILE} is not a valid 'tar.gz' file. Aborting..."
+			exit 1
+		fi	
+		gunzip "${targzfile}"
+		# Add the 'sw-versions' file.
+		tar -C "${IMAGE_ROOTFS}" -uf "${targzfile%.*}" etc/sw-versions
+	else
+		# The tar.gz file is not provided by user. Create it including the 'sw-versions' file
+		tar -C "${IMAGE_ROOTFS}" -cf "${targzfile%.*}" etc/sw-versions
+	fi
+
+	# Iterate the list of files and folders. Add all entries directly except paths starting
+	# with 'mnt/linux'. Those files must be added from the 'DEPLOY_DIR_IMAGE' instead of
+	# 'IMAGE_ROOTFS', as they are part of the 'boot' image.
+	for file in ${SWUPDATE_FILES_LIST}; do
+		case "${file}" in
+			mnt/linux/*)
+				FILE_NAME="$(basename "${file}")"
+				tar -C "${DEPLOY_DIR_IMAGE}" --transform 's,^,mnt/linux/,' -uhf "${targzfile%.*}" "${FILE_NAME}"
+				;;
+			*)
+				tar -C "${IMAGE_ROOTFS}" -uf "${targzfile%.*}" "${file}"
+				;;
+		esac
+	done
+
+	# Compress the tar file.
+	gzip "${targzfile%.*}"
+}
+ROOTFS_POSTPROCESS_COMMAND:append = "${@oe.utils.conditional('SWUPDATE_IS_FILES_UPDATE', 'true', ' create_swupdate_targz_file;', '', d)}"
diff --git a/meta-digi-dey/recipes-digi/dualboot/dualboot/update-firmware b/meta-digi-dey/recipes-digi/dualboot/dualboot/update-firmware
index 8c24e896a..2fd76f9b8 100755
--- a/meta-digi-dey/recipes-digi/dualboot/dualboot/update-firmware
+++ b/meta-digi-dey/recipes-digi/dualboot/dualboot/update-firmware
@@ -116,6 +116,16 @@ reboot_system() {
 }
 
 swap_active_system() {
+	# Sanity check: Some firmware updates might request not to swap
+	#               active bank after the update.
+	local SWAP_BANK=$(fw_printenv -n swap_bank)
+	if [ "${SWAP_BANK}" = "false" ]; then
+		echo "[WARNING] Active system swap cancelled by update process."
+		# Reset variable and return without swapping.
+		fw_setenv swap_bank
+		return 0
+	fi
+
 	if [ -z "${EMMCROOTFS}" ]; then
 		fw_setenv mtdbootpart ${ALT_BOOT}
 		fw_setenv mtdrootfspart ${ALT_ROOTFS}
diff --git a/meta-digi-dey/recipes-digi/swu-images/files/sw-description-files_template b/meta-digi-dey/recipes-digi/swu-images/files/sw-description-files_template
new file mode 100644
index 000000000..3cd479c14
--- /dev/null
+++ b/meta-digi-dey/recipes-digi/swu-images/files/sw-description-files_template
@@ -0,0 +1,52 @@
+software =
+{
+    version = "@@DEY_FIRMWARE_VERSION@@";
+    description = "@@DESCRIPTION@@";
+
+    @@SWUPDATE_STORAGE_TYPE@@ = {
+        primary: {
+            files: (
+                {
+                    filename = "@@SWUPDATE_FILES_TARGZ_FILE_NAME@@";
+                    type = "archive";
+                    compressed = "zlib";
+                    path = "/";
+                }
+            );
+            scripts: (
+                {
+                    filename = "@@SWUPDATE_SCRIPT_NAME@@";
+                    type = "shellscript";
+                }
+            );
+            uboot: (
+                {
+                    name = "swap_bank";
+                    value = "false";
+                }
+            );
+        }
+        secondary: {
+            ref = "#./primary";
+        }
+        single: {
+            files: (
+                {
+                    filename = "@@SWUPDATE_FILES_TARGZ_FILE_NAME@@";
+                    type = "archive";
+                    compressed = "zlib";
+                    path = "/system/";
+                }
+            );
+            scripts: (
+                {
+                    filename = "@@SWUPDATE_SCRIPT_NAME@@";
+                    type = "shellscript";
+                }
+            );
+        }
+        platform = {
+            ref = "#./single";
+        }
+    };
+}
diff --git a/meta-digi-dey/recipes-digi/swu-images/files/update_files.sh b/meta-digi-dey/recipes-digi/swu-images/files/update_files.sh
new file mode 100755
index 000000000..9d28629ec
--- /dev/null
+++ b/meta-digi-dey/recipes-digi/swu-images/files/update_files.sh
@@ -0,0 +1,144 @@
+#!/bin/sh
+#===============================================================================
+#
+#  update_files
+#
+#  Copyright (C) 2023 by Digi International Inc.
+#  All rights reserved.
+#
+#  This program is free software; you can redistribute it and/or modify it
+#  under the terms of the GNU General Public License version 2 as published by
+#  the Free Software Foundation.
+#
+#
+#  !Description: SWU update files script
+#
+#===============================================================================
+
+# Sanity check. This script should be always executed with at least one argument.
+if [ $# -lt 1 ]; then
+	exit 1;
+fi
+
+# Variables.
+FS_TYPE="ext4"
+LINUX_DEV_BLOCK="/dev/mmcblk0p1"
+LINUX_MOUNT_POINT="/mnt/linux"
+ROOTFS_DEV_BLOCK="/dev/mmcblk0p3"
+ROOTFS_MOUNT_POINT="/system"
+
+# Determines whether the file system type is UBI or not.
+is_ubifs() {
+	[ -c "/dev/ubi0" ]
+}
+
+# Retrieves the MTD partition number corresponding to the given partition name.
+#
+# Args:
+#   $1: partition name.
+#
+# Returns:
+#   The MTD partition number corresponding to the given partition name, -1 if
+#   not found.
+get_mtd_number() {
+	local mtd_line="$(sed -ne "/${1}/s,^mtd\([0-9]\+\).*,\1,g;T;p" /proc/mtd)"
+	echo "${mtd_line:--1}"
+}
+
+# Creates the UBI device for the given MTD partition number.
+#
+# Args:
+#   $1: the MTD partition number to create the UBI device for.
+#
+# Returns:
+#   The created UBI device number for the given MTD partition number, -1 if error.
+create_ubi_device() {
+	local dev_number="$(ubiattach -m "${1}" 2>/dev/null | sed -ne 's,.*device number \([0-9]\).*,\1,g;T;p' 2>/dev/null)"
+	echo "${dev_number:--1}"
+}
+
+# Retrieves the UBI device number containing the given partition name. If the
+# device does not exist, the method attempts to create it based on the MTD dev
+# number containing the desired partition.
+#
+# Args:
+#   $1: partition name.
+#
+# Returns:
+#   The UBI device number containing the given partition name, -1 if not found.
+get_ubi_device() {
+	local ubi_devices="$(ubinfo | grep "Present UBI devices:" | cut -d ":" -f2 | xargs | sed -e 's/,//g')"
+	for ubi_device in ${ubi_devices}; do
+		if ubinfo "/dev/${ubi_device}" -a | grep -qe "Name:.*$1"; then
+			echo "${ubi_device}" | tr -dc '0-9'
+			return 0
+		fi
+	done
+
+	# Look for the MTD number containing the given partition name.
+	local mtd_num="$(get_mtd_number "${1}")"
+	if [ "${mtd_num}" = "-1" ]; then
+		echo "-1"
+		return 1
+	else
+		# Create the UBI device.
+		ubi_device_number="$(create_ubi_device "${mtd_num}")"
+		echo "${ubi_device_number}"
+	fi
+}
+
+# Mounts all required partitions to perform the firmware update based on the update
+# running source and file system type.
+mount_partitions() {
+	# Determine whether the update is running from recovery partition or not.
+	BOOT_RECOVERY="$(fw_printenv -n boot_recovery)"
+	if [ "${BOOT_RECOVERY}" = "yes" ]; then
+		# Update is running from recovery partition. We need to mount both,
+		# the rootfs and the kernel partitions. To do so first determine the
+		# filesystem type, assume it is MMC device.
+		if is_ubifs; then
+			FS_TYPE="ubifs"
+			# Look for the UBI device containing 'linux' partition.
+			local linux_ubi_device="$(get_ubi_device linux)"
+			[ "${linux_ubi_device}" = "-1" ] && { echo "Unable to find UBI device containing 'linux' partition."; exit 1; }
+			LINUX_DEV_BLOCK="ubi${linux_ubi_device}:linux"
+			# Look for the UBI device containing 'rootfs' partition.
+			local rootfs_ubi_device="$(get_ubi_device rootfs)"
+			[ "${rootfs_ubi_device}" = "-1" ] && { echo "Unable to find UBI device containing 'rootfs' partition."; exit 1; }
+			ROOTFS_DEV_BLOCK="ubi${rootfs_ubi_device}:rootfs"
+		fi
+		# Mount 'rootfs' partition.
+		mkdir -p "${ROOTFS_MOUNT_POINT}"
+		mount -t "${FS_TYPE}" "${ROOTFS_DEV_BLOCK}" "${ROOTFS_MOUNT_POINT}"
+		# Mount 'linux' partition.
+		LINUX_MOUNT_POINT="${ROOTFS_MOUNT_POINT}${LINUX_MOUNT_POINT}"
+		mkdir -p "${LINUX_MOUNT_POINT}"
+		if ! is_ubifs; then
+			FS_TYPE="auto"
+		fi
+		mount -t "${FS_TYPE}" "${LINUX_DEV_BLOCK}" "${LINUX_MOUNT_POINT}"
+	else
+		# Update is running from the active system. In this case the 'rootfs' and 'linux'
+		# partitions are already mounted; however 'linux' partition is in R/O mode. Just
+		# remount 'linux' partition as R/W.
+		mount -o remount,rw "${LINUX_MOUNT_POINT}"
+	fi
+}
+
+# Called just before installation process starts.
+if [ "${1}" = "preinst" ]; then
+	mount_partitions
+
+	# TODO: Execute custom code here. For example:
+	# - Mount additional devices/partitions.
+	# - Stop services/process before installing files.
+fi
+
+# Called just after installation process ends.
+if [ "${1}" = "postinst" ]; then
+	:
+
+	# TODO: Execute custom code here. For example:
+	# - Clean directories.
+	# - Post-process files.
+fi
diff --git a/meta-digi-dey/recipes-digi/swu-images/swu.inc b/meta-digi-dey/recipes-digi/swu-images/swu.inc
index e5cc9e701..e521f03db 100644
--- a/meta-digi-dey/recipes-digi/swu-images/swu.inc
+++ b/meta-digi-dey/recipes-digi/swu-images/swu.inc
@@ -7,15 +7,17 @@ LIC_FILES_CHKSUM = "file://${COMMON_LICENSE_DIR}/GPL-2.0-only;md5=801f80980d171d
 
 SRC_URI = " \
     file://sw-description-images_template \
+    file://sw-description-files_template \
     file://sw-description-uboot \
     file://swupdate_uboot_nand.sh \
     file://swupdate_uboot_mmc.sh \
     file://image_template_mmc \
     file://image_template_nand \
     file://update_images.sh \
+    file://update_files.sh \
 "
 
-inherit swupdate
+inherit swupdate swupdate-files-common
 
 IMAGE_DEPENDS = "${@get_baseimg_pn(d)}"
 
@@ -31,7 +33,7 @@ SWUPDATE_STORAGE_TYPE = "${@oe.utils.conditional('STORAGE_MEDIA', 'mmc', 'mmc',
 INHIBIT_SWUPDATE_ADD_SRC_URI = "true"
 
 SWUPDATE_IMAGES = " \
-    ${IMG_NAME} \
+    ${@oe.utils.ifelse(d.getVar('SWUPDATE_IS_FILES_UPDATE') == 'true', '${SWUPDATE_FILES_TARGZ_FILE_NAME}', '${IMG_NAME}')} \
     ${@oe.utils.ifelse(d.getVar('SWUPDATE_UBOOTIMG') == 'true', '${UBOOT_PREFIX}', '')} \
     ${@oe.utils.ifelse(d.getVar('SWUPDATE_UBOOTIMG') == 'true', '${SWUPDATE_UBOOT_SCRIPT}', '')} \
 "
@@ -73,7 +75,7 @@ ROOTFS_TYPE = "${@bb.utils.contains('IMAGE_FEATURES', 'read-only-rootfs', 'squas
 IMAGE_TEMPLATE_FILE = "${@bb.utils.contains('STORAGE_MEDIA', 'mmc', '${WORKDIR}/image_template_mmc', '${WORKDIR}/image_template_nand', d)}"
 
 # Update script.
-SWUPDATE_SCRIPT ?= "${WORKDIR}/update_images.sh"
+SWUPDATE_SCRIPT ?= "${@oe.utils.vartrue('SWUPDATE_IS_FILES_UPDATE', '${WORKDIR}/update_files.sh', '${WORKDIR}/update_images.sh', d)}"
 SWUPDATE_SCRIPT_NAME = "${@os.path.basename(d.getVar('SWUPDATE_SCRIPT'))}"
 SWUPDATE_IMAGES += " ${SWUPDATE_SCRIPT_NAME}"
 
@@ -91,6 +93,8 @@ fill_description() {
 		sed -i -e "s,##UBOOTIMG_NAME##,${UBOOT_PREFIX}-${MACHINE}${UBOOT_EXT},g" "${WORKDIR}/sw-description"
 		sed -i -e "s,##SWUPDATE_UBOOT_SCRIPT##,${SWUPDATE_UBOOT_SCRIPT},g" "${WORKDIR}/sw-description"
 		sed -i -e "s,##UBOOTIMG_OFFSET##,${UBOOTIMG_OFFSET},g" "${WORKDIR}/sw-description"
+	elif [ "${SWUPDATE_IS_FILES_UPDATE}" = "true" ]; then
+		cp ${WORKDIR}/sw-description-files_template ${WORKDIR}/sw-description
 	else
 		cp ${WORKDIR}/sw-description-images_template ${WORKDIR}/sw-description
 	fi
@@ -100,6 +104,10 @@ fill_description() {
 		cp "${SWUPDATE_SCRIPT}" "${DEPLOY_DIR_IMAGE}"
 	fi
 
+	if [ "${SWUPDATE_IS_FILES_UPDATE}" = "true" ]; then
+		return 0
+	fi
+
 	# Build image names.
 	BOOT_IMAGE_NAME="${IMG_NAME}-${MACHINE}${BOOTFS_EXT}"
 	ROOTFS_IMAGE_NAME="${IMG_NAME}-${MACHINE}${ROOTFS_EXT}"