diff --git a/imap_processing/ialirt/l0/process_swe.py b/imap_processing/ialirt/l0/process_swe.py
index 6b9d2944f..763b731e4 100644
--- a/imap_processing/ialirt/l0/process_swe.py
+++ b/imap_processing/ialirt/l0/process_swe.py
@@ -473,9 +473,17 @@ def process_swe(accumulated_data: xr.Dataset, in_flight_cal_files: list) -> list
     # Add required parameters.
     accumulated_data["met"] = met
 
+    # Drop any off-nominal SWE groups
+    nominal_data = accumulated_data.where(
+        accumulated_data["swe_nom_flag"] != 0,
+        drop=True,
+    )
+
     # Get total full cycle data available for processing.
     # There are 60 packets in a set so (0, 59) is the range.
-    grouped_data = find_groups(accumulated_data, (0, 59), "swe_seq", "time_seconds")
+    grouped_data = find_groups(
+        nominal_data, (0, 59), "swe_seq", "met", check_src_seq_ctr=False
+    )
     unique_groups = np.unique(grouped_data["group"])
     swe_data: list[dict] = []
     incomplete_groups = []
diff --git a/imap_processing/ialirt/utils/grouping.py b/imap_processing/ialirt/utils/grouping.py
index 27bf3fcbc..ca0ae6ac2 100644
--- a/imap_processing/ialirt/utils/grouping.py
+++ b/imap_processing/ialirt/utils/grouping.py
@@ -50,6 +50,7 @@ def find_groups(
     sequence_range: tuple,
     sequence_name: str,
     time_name: str,
+    check_src_seq_ctr: bool = True,
 ) -> xr.Dataset:
     """
     Group data based on time and sequence number values.
@@ -64,6 +65,8 @@ def find_groups(
         Name of the sequence variable.
     time_name : str
         Name of the time variable.
+    check_src_seq_ctr : bool | True
+        Check for incrementing src_seq_ctr.
 
     Returns
     -------
@@ -114,7 +117,10 @@ def find_groups(
     #     group    (epoch) int64 7kB 1 1 1 1 1 1 1 1 1 ... 15 15 15 15 15 15 15 15 15
     grouped_data = grouped_data.assign_coords(group=("epoch", group_labels))
 
-    # Filter out groups with non-sequential src_seq_ctr values.
-    filtered_data = filter_valid_groups(grouped_data)
+    if check_src_seq_ctr:
+        # Filter out groups with non-sequential src_seq_ctr values.
+        filtered_data = filter_valid_groups(grouped_data)
+    else:
+        filtered_data = grouped_data
 
     return filtered_data
diff --git a/imap_processing/tests/ialirt/unit/test_grouping.py b/imap_processing/tests/ialirt/unit/test_grouping.py
index c792adf9e..a578713d6 100644
--- a/imap_processing/tests/ialirt/unit/test_grouping.py
+++ b/imap_processing/tests/ialirt/unit/test_grouping.py
@@ -79,3 +79,20 @@ def test_find_groups(test_data):
     grouped_data = find_groups(test_data, (0, 3), "sequence", "time_seconds")
 
     assert np.all(np.unique(grouped_data["group"]) == np.array([1, 3]))
+
+
+def test_find_groups_no_valid(test_data):
+    """Tests the find_groups function when no valid groups are found."""
+
+    flag = np.ones(np.size(test_data["src_seq_ctr"]), dtype=int)
+    flag[-1] = 0
+
+    test_data["swe_nom_flag"] = ("epoch", flag)
+
+    nominal_data = test_data.where(
+        test_data["swe_nom_flag"] != 0,
+        drop=True,
+    )
+    grouped_data = find_groups(nominal_data, (0, 3), "sequence", "time_seconds")
+
+    assert np.all(np.unique(grouped_data["group"]) == np.array([1]))
diff --git a/imap_processing/tests/ialirt/unit/test_process_swe.py b/imap_processing/tests/ialirt/unit/test_process_swe.py
index a9946deff..1df92c3fb 100644
--- a/imap_processing/tests/ialirt/unit/test_process_swe.py
+++ b/imap_processing/tests/ialirt/unit/test_process_swe.py
@@ -168,6 +168,7 @@ def test_process_spacecraft_packet(
         np.arange(462466219, 462466219 + n, dtype=np.uint32),
     )
     sc_xarray_data["swe_seq"] = ("epoch", np.arange(n) % 60)
+    sc_xarray_data["swe_nom_flag"] = xr.ones_like(sc_xarray_data["swe_nom_flag"])
 
     in_flight_cal_file = (
         imap_module_directory