diff --git a/openfeature-provider-local/src/main/java/com/spotify/confidence/SwapWasmResolverApi.java b/openfeature-provider-local/src/main/java/com/spotify/confidence/SwapWasmResolverApi.java
index 51ae0876..2615e80b 100644
--- a/openfeature-provider-local/src/main/java/com/spotify/confidence/SwapWasmResolverApi.java
+++ b/openfeature-provider-local/src/main/java/com/spotify/confidence/SwapWasmResolverApi.java
@@ -1,5 +1,6 @@
 package com.spotify.confidence;
 
+import com.dylibso.chicory.wasm.ChicoryException;
 import com.spotify.confidence.flags.resolver.v1.MaterializationMap;
 import com.spotify.confidence.flags.resolver.v1.ResolveWithStickyRequest;
 import com.spotify.confidence.flags.resolver.v1.ResolveWithStickyResponse;
@@ -17,6 +18,7 @@ class SwapWasmResolverApi implements ResolverApi {
   private final AtomicReference<WasmResolveApi> wasmResolverApiRef = new AtomicReference<>();
   private final StickyResolveStrategy stickyResolveStrategy;
   private final WasmFlagLogger flagLogger;
+  private final String accountId;
 
   public SwapWasmResolverApi(
       WasmFlagLogger flagLogger,
@@ -25,6 +27,7 @@ public SwapWasmResolverApi(
       StickyResolveStrategy stickyResolveStrategy) {
     this.stickyResolveStrategy = stickyResolveStrategy;
     this.flagLogger = flagLogger;
+    this.accountId = accountId;
 
     // Create initial instance
     final WasmResolveApi initialInstance = new WasmResolveApi(flagLogger);
@@ -36,7 +39,9 @@ public SwapWasmResolverApi(
   public void updateStateAndFlushLogs(byte[] state, String accountId) {
     // Create new instance with updated state
     final WasmResolveApi newInstance = new WasmResolveApi(flagLogger);
-    newInstance.setResolverState(state, accountId);
+    if (state != null) {
+      newInstance.setResolverState(state, accountId);
+    }
 
     // Get current instance before switching
     final WasmResolveApi oldInstance = wasmResolverApiRef.getAndSet(newInstance);
@@ -191,6 +196,9 @@ public ResolveFlagsResponse resolve(ResolveFlagsRequest request) {
       return instance.resolve(request);
     } catch (IsClosedException e) {
       return resolve(request);
+    } catch (ChicoryException ce) {
+      updateStateAndFlushLogs(null, accountId);
+      throw ce;
     }
   }
 }
diff --git a/openfeature-provider-local/src/test/java/com/spotify/confidence/SwapWasmResolverApiTest.java b/openfeature-provider-local/src/test/java/com/spotify/confidence/SwapWasmResolverApiTest.java
new file mode 100644
index 00000000..3328b883
--- /dev/null
+++ b/openfeature-provider-local/src/test/java/com/spotify/confidence/SwapWasmResolverApiTest.java
@@ -0,0 +1,110 @@
+package com.spotify.confidence;
+
+import static org.junit.jupiter.api.Assertions.assertNotNull;
+import static org.junit.jupiter.api.Assertions.assertThrows;
+import static org.mockito.ArgumentMatchers.any;
+import static org.mockito.Mockito.atLeastOnce;
+import static org.mockito.Mockito.mock;
+import static org.mockito.Mockito.spy;
+import static org.mockito.Mockito.times;
+import static org.mockito.Mockito.verify;
+import static org.mockito.Mockito.when;
+
+import com.dylibso.chicory.wasm.ChicoryException;
+import com.spotify.confidence.shaded.flags.resolver.v1.ResolveFlagsRequest;
+import com.spotify.confidence.shaded.flags.resolver.v1.ResolveFlagsResponse;
+import java.util.concurrent.atomic.AtomicReference;
+import org.junit.jupiter.api.Test;
+
+public class SwapWasmResolverApiTest {
+
+  @Test
+  public void testChicoryExceptionTriggersStateReset() throws Exception {
+    // Create a mock WasmFlagLogger
+    final WasmFlagLogger mockLogger = mock(WasmFlagLogger.class);
+
+    // Use valid test state bytes and accountId
+    final byte[] initialState = ResolveTest.exampleStateBytes;
+    final String accountId = "test-account-id";
+
+    // Create a spy of SwapWasmResolverApi to verify method calls
+    final SwapWasmResolverApi swapApi =
+        spy(
+            new SwapWasmResolverApi(
+                mockLogger, initialState, accountId, mock(ResolverFallback.class)));
+
+    // Create a mock WasmResolveApi that throws ChicoryException
+    final WasmResolveApi mockWasmApi = mock(WasmResolveApi.class);
+    when(mockWasmApi.resolve(any(ResolveFlagsRequest.class)))
+        .thenThrow(new ChicoryException("WASM runtime error"));
+
+    // Replace the internal WasmResolveApi with our mock
+    final var field = SwapWasmResolverApi.class.getDeclaredField("wasmResolverApiRef");
+    field.setAccessible(true);
+    @SuppressWarnings("unchecked")
+    final AtomicReference<WasmResolveApi> ref =
+        (AtomicReference<WasmResolveApi>) field.get(swapApi);
+    ref.set(mockWasmApi);
+
+    // Create a test resolve request
+    final ResolveFlagsRequest request =
+        ResolveFlagsRequest.newBuilder()
+            .addFlags("test-flag")
+            .setClientSecret("test-secret")
+            .build();
+
+    // Execute the resolve and expect ChicoryException to be thrown
+    assertThrows(ChicoryException.class, () -> swapApi.resolve(request));
+
+    // Verify that updateStateAndFlushLogs was called with null state and the accountId
+    verify(swapApi, atLeastOnce()).updateStateAndFlushLogs(null, accountId);
+  }
+
+  @Test
+  public void testIsClosedExceptionTriggersRetry() throws Exception {
+    // Create a mock WasmFlagLogger
+    final WasmFlagLogger mockLogger = mock(WasmFlagLogger.class);
+
+    // Use valid test state bytes and accountId
+    final byte[] initialState = ResolveTest.exampleStateBytes;
+    final String accountId = "test-account-id";
+
+    // Create a spy of SwapWasmResolverApi to verify method calls
+    final SwapWasmResolverApi swapApi =
+        spy(
+            new SwapWasmResolverApi(
+                mockLogger, initialState, accountId, mock(ResolverFallback.class)));
+
+    // Create a mock WasmResolveApi that throws IsClosedException on first call, then succeeds
+    final WasmResolveApi mockWasmApi = mock(WasmResolveApi.class);
+    final ResolveFlagsResponse mockResponse = ResolveFlagsResponse.newBuilder().build();
+    when(mockWasmApi.resolve(any(ResolveFlagsRequest.class)))
+        .thenThrow(new IsClosedException())
+        .thenReturn(mockResponse);
+
+    // Replace the internal WasmResolveApi with our mock
+    final var field = SwapWasmResolverApi.class.getDeclaredField("wasmResolverApiRef");
+    field.setAccessible(true);
+    @SuppressWarnings("unchecked")
+    final AtomicReference<WasmResolveApi> ref =
+        (AtomicReference<WasmResolveApi>) field.get(swapApi);
+    ref.set(mockWasmApi);
+
+    // Create a test resolve request
+    final ResolveFlagsRequest request =
+        ResolveFlagsRequest.newBuilder()
+            .addFlags("flags/flag-1")
+            .setClientSecret(TestBase.secret.getSecret())
+            .build();
+
+    // Call resolve - it should retry when IsClosedException is thrown and succeed on second attempt
+    final ResolveFlagsResponse response = swapApi.resolve(request);
+
+    // Verify response is not null
+    assertNotNull(response);
+
+    // Verify that the mock WasmResolveApi.resolve was called twice (first threw exception, second
+    // succeeded)
+    verify(mockWasmApi, times(2)).resolve(request);
+  }
+}