diff --git a/conf/environment/marl_damage_aware.yaml b/conf/environment/marl_damage_aware.yaml
new file mode 100644
index 0000000..7203b12
--- /dev/null
+++ b/conf/environment/marl_damage_aware.yaml
@@ -0,0 +1,7 @@
+defaults:
+  - marl_complex_obs
+  - _self_
+
+env: simharness2.environments.MultiAgentComplexObsDamageAwareReactiveHarness
+env_config:
+  benchmark_sim: ${.sim}
\ No newline at end of file
diff --git a/simharness2/environments/__init__.py b/simharness2/environments/__init__.py
index 37f2017..79cd4d0 100644
--- a/simharness2/environments/__init__.py
+++ b/simharness2/environments/__init__.py
@@ -8,7 +8,9 @@
     MultiAgentComplexObsReactiveHarness,
 )
 from simharness2.environments.multi_agent_fire_harness import MultiAgentFireHarness
-
+from simharness2.environments.multi_agent_damage_aware_harness import (
+    MultiAgentComplexObsDamageAwareReactiveHarness,
+)
 
 __all__ = [
     "FireHarness",
@@ -17,4 +19,5 @@
     "ReactiveHarness",
     "DamageAwareReactiveHarness",
     "MultiAgentComplexObsReactiveHarness",
+    "MultiAgentComplexObsDamageAwareReactiveHarness",
 ]
diff --git a/simharness2/environments/multi_agent_damage_aware_harness.py b/simharness2/environments/multi_agent_damage_aware_harness.py
new file mode 100644
index 0000000..3e2f20c
--- /dev/null
+++ b/simharness2/environments/multi_agent_damage_aware_harness.py
@@ -0,0 +1,141 @@
+import logging
+from typing import Optional, Tuple, TypeVar
+
+import numpy as np
+from simfire.sim.simulation import FireSimulation
+
+from simharness2.agents.agent import ReactiveAgent
+from simharness2.environments.multi_agent_complex_harness import (
+    MultiAgentComplexObsReactiveHarness,
+)
+
+
+logger = logging.getLogger(__name__)
+
+AnyFireSimulation = TypeVar("AnyFireSimulation", bound=FireSimulation)
+
+
+# FIXME: Consider effect of long time horizons, ie. see "max_bench_length" (this is a
+# note to discuss this later).
+# FIXME: Discuss harness naming convention with team - I hate how long this is...
+class MultiAgentComplexObsDamageAwareReactiveHarness(
+    MultiAgentComplexObsReactiveHarness[AnyFireSimulation]
+):
+    def __init__(
+        self,
+        *,
+        terminate_if_greater_damage: bool = True,
+        max_bench_length: int = 600,
+        **kwargs,
+    ):
+        super().__init__(**kwargs)
+        # Bool to toggle the ability to terminate the agent simulation early if at the
+        # current timestep of the agent simulation, the agents have caused more burn
+        # damage (burned + burning) than the final state of the benchmark fire map.
+        self._terminate_if_greater_damage = terminate_if_greater_damage
+
+        # TODO: Define `benchmark_sim` here, and make it required (ie. never None).
+        # Store the firemaps from the benchmark simulation if used in the state
+        if self.benchmark_sim is None:
+            # The benchmark_sim is required for rewards and termination!
+            raise ValueError(
+                "The benchmark simulation must be provided to use this harness."
+            )
+        else:
+            # Create static list to store the episode benchsim firemaps
+            self._max_bench_length = max_bench_length
+            # FIXME: Suboptimal implementation and should be refactored later.
+            self._bench_firemaps = [0] * self._max_bench_length
+
+    def _should_terminate(self) -> bool:
+        # Retrieve original value, based on `FireHarness` definition of terminated.
+        terminated = super()._should_terminate()
+
+        # Terminate episode early if burn damage in Agent Sim > final bench firemap
+        if self.benchmark_sim:
+            if self._terminate_if_greater_damage:
+                # breakpoint()
+                total_area = self.sim.fire_map.size
+
+                sim_data = self.harness_analytics.sim_analytics.data
+                sim_damaged_total = sim_data.burned + sim_data.burning
+                benchsim_data = self.harness_analytics.benchmark_sim_analytics.data
+                benchsim_damaged_total = total_area - benchsim_data.unburned
+
+                logger.debug(f"sim_damaged_total: {sim_damaged_total}")
+                logger.debug(f"benchsim_damaged_total: {benchsim_damaged_total}")
+                if sim_damaged_total > benchsim_damaged_total:
+                    # TODO: add static negative penalty for making the fire worse?
+                    logger.info(
+                        "Terminating episode early because the agents have caused more "
+                        "burn damage than the final state of the benchmark fire map."
+                    )
+                    terminated = True
+
+        return terminated
+
+    def reset(
+        self,
+        *,
+        seed: Optional[int] = None,
+        options: Optional[dict] = None,
+    ) -> Tuple[np.ndarray, dict]:
+        """Reset environment to an initial state, returning an initial obs and info."""
+        # Use the following line to seed `self.np_random`
+        initial_state, infos = super().reset(seed=seed, options=options)
+
+        # Verify initial fire scenario is the same for both the sim and benchsim.
+        sim_fire_init_pos = self.sim.config.fire.fire_initial_position
+        benchmark_fire_init_pos = self.benchmark_sim.config.fire.fire_initial_position
+        if sim_fire_init_pos != benchmark_fire_init_pos:
+            raise ValueError(
+                "The initial fire scenario for the simulation and benchmark simulation "
+                "must be the same."
+            )
+
+        # TODO: Only call _run_benchmark if fire scenario differs from previous episode.
+        # This is somewhat tricky - must ensure that analytics.data is NOT reset!
+        # Run new benchsim to completion to obtain data for reward and policy.
+        self.benchmark_sim.reset()
+        # NOTE: The call below will do a few things:
+        #   - Run bench sim to completion (self.benchmark_sim.run(1))
+        #   - Update bench sim analytics (update_bench_after_one_simulation_step)
+        #   - Store each bench fire map at the sim step in self._bench_firemaps
+        self._run_benchmark()
+
+        return initial_state, infos
+
+    def _run_benchmark(self):
+        """Run benchmark sim until fire propagation is complete."""
+        # TODO: We can remove the benchmark_sim entirely, and get this behavior by simply
+        # running self.sim until it terminates, then reset self.sim to the initial state.
+
+        if self.benchmark_sim.elapsed_steps > 0:
+            raise RuntimeError(
+                "Benchmark simulation must be reset before running it again."
+            )
+
+        timesteps = 0
+        while self.benchmark_sim.active:
+            run_sim = timesteps % self.agent_speed == 0
+
+            if run_sim:
+                # TODO: Refactor logic into a method, and call it here.
+                # Run for one timestep, then update respective metrics.
+                self.benchmark_sim.run(1)
+                # FIXME: This method call is VERY redundant (see method logic)
+                self.harness_analytics.update_bench_after_one_simulation_step(
+                    timestep=timesteps
+                )
+
+                curr_step = self.harness_analytics.benchmark_sim_analytics.num_sim_steps
+                # Store the bench fire map at the sim step
+                if curr_step < self._max_bench_length - 1:
+                    self._bench_firemaps[curr_step - 1] = np.copy(
+                        self.benchmark_sim.fire_map
+                    )
+                else:
+                    self._bench_firemaps.append(np.copy(self.benchmark_sim.fire_map))
+                    self._max_bench_length += 1
+
+            timesteps += 1