diff --git a/.github/.wordlist.txt b/.github/.wordlist.txt
index 0a930013cb9509..aac333fa389469 100644
--- a/.github/.wordlist.txt
+++ b/.github/.wordlist.txt
@@ -53,6 +53,7 @@ ApplicationBasic
 ApplicationId
 ApplicationIdentifier
 ApplicationLauncher
+applyUpdateAction
 ApplyUpdateRequest
 ApplyUpdateResponse
 approver
diff --git a/examples/ota-provider-app/linux/README.md b/examples/ota-provider-app/linux/README.md
index b62f1b526552e9..dcbf4aa5a3464f 100644
--- a/examples/ota-provider-app/linux/README.md
+++ b/examples/ota-provider-app/linux/README.md
@@ -18,6 +18,7 @@ scripts/examples/gn_build_example.sh examples/ota-provider-app/linux out/debug c
 | -f/--filepath <file>                                                  | Path to a file containing an OTA image                                                                                                                                                                                                                                                                                                                                                |
 | -o/--otaImageList <file>                                              | Path to a file containing a list of OTA images                                                                                                                                                                                                                                                                                                                                        |
 | -q/--queryImageStatus <updateAvailable \| busy \| updateNotAvailable> | Value for the Status field in the QueryImageResponse                                                                                                                                                                                                                                                                                                                                  |
+| -a/--applyUpdateAction <proceed \| awaitNextAction \| discontinue>    | Value for the Action field in the ApplyUpdateResponse                                                                                                                                                                                                                                                                                                                                 |
 | -t/--delayedActionTimeSec <time>                                      | Value in seconds for the DelayedActionTime field in the QueryImageResponse and ApplyUpdateResponse                                                                                                                                                                                                                                                                                    |
 | -u/--userConsentState <granted \| denied \| deferred>                 | Current user consent state which results in various values for Status field in QueryImageResponse <br> Note that -q/--queryImageStatus overrides this option <li> granted: Status field in QueryImageResponse is set to updateAvailable <li> denied: Status field in QueryImageResponse is set to updateNotAvailable <li> deferred: Status field in QueryImageResponse is set to busy |
 | -s/--softwareVersion <version>                                        | Value for the SoftwareVersion field in the QueryImageResponse <br> Note that -o/--otaImageList overrides this option                                                                                                                                                                                                                                                                  |
diff --git a/examples/ota-provider-app/linux/main.cpp b/examples/ota-provider-app/linux/main.cpp
index 8cc6c45090c24a..67db49efacd041 100644
--- a/examples/ota-provider-app/linux/main.cpp
+++ b/examples/ota-provider-app/linux/main.cpp
@@ -38,6 +38,7 @@ using chip::ArgParser::OptionSet;
 using chip::ArgParser::PrintArgError;
 using chip::bdx::TransferControlFlags;
 using chip::Messaging::ExchangeManager;
+using namespace chip::app::Clusters::OtaSoftwareUpdateProvider;
 
 // TODO: this should probably be done dynamically
 constexpr chip::EndpointId kOtaProviderEndpoint = 0;
@@ -46,6 +47,7 @@ constexpr uint16_t kOptionFilepath             = 'f';
 constexpr uint16_t kOptionOtaImageList         = 'o';
 constexpr uint16_t kOptionQueryImageStatus     = 'q';
 constexpr uint16_t kOptionUserConsentState     = 'u';
+constexpr uint16_t kOptionUpdateAction         = 'a';
 constexpr uint16_t kOptionDelayedActionTimeSec = 't';
 constexpr uint16_t kOptionSoftwareVersion      = 's';
 constexpr uint16_t kOptionSoftwareVersionStr   = 'S';
@@ -56,6 +58,7 @@ chip::ota::DefaultUserConsentProvider gUserConsentProvider;
 
 // Global variables used for passing the CLI arguments to the OTAProviderExample object
 static OTAProviderExample::QueryImageBehaviorType gQueryImageBehavior = OTAProviderExample::kRespondWithUnknown;
+static OTAApplyUpdateAction gOptionUpdateAction                       = OTAApplyUpdateAction::kProceed;
 static uint32_t gDelayedActionTimeSec                                 = 0;
 static const char * gOtaFilepath                                      = nullptr;
 static const char * gOtaImageListFilepath                             = nullptr;
@@ -183,6 +186,30 @@ bool HandleOptions(const char * aProgram, OptionSet * aOptions, int aIdentifier,
             retval = false;
         }
         break;
+    case kOptionUpdateAction:
+        if (aValue == NULL)
+        {
+            PrintArgError("%s: ERROR: NULL applyUpdateAction parameter\n", aProgram);
+            retval = false;
+        }
+        else if (strcmp(aValue, "proceed") == 0)
+        {
+            gOptionUpdateAction = OTAApplyUpdateAction::kProceed;
+        }
+        else if (strcmp(aValue, "awaitNextAction") == 0)
+        {
+            gOptionUpdateAction = OTAApplyUpdateAction::kAwaitNextAction;
+        }
+        else if (strcmp(aValue, "discontinue") == 0)
+        {
+            gOptionUpdateAction = OTAApplyUpdateAction::kDiscontinue;
+        }
+        else
+        {
+            PrintArgError("%s: ERROR: Invalid applyUpdateAction parameter:  %s\n", aProgram, aValue);
+            retval = false;
+        }
+        break;
     case kOptionDelayedActionTimeSec:
         gDelayedActionTimeSec = static_cast<uint32_t>(strtoul(aValue, NULL, 0));
         break;
@@ -245,6 +272,7 @@ OptionDef cmdLineOptionsDef[] = {
     { "filepath", chip::ArgParser::kArgumentRequired, kOptionFilepath },
     { "otaImageList", chip::ArgParser::kArgumentRequired, kOptionOtaImageList },
     { "queryImageStatus", chip::ArgParser::kArgumentRequired, kOptionQueryImageStatus },
+    { "applyUpdateAction", chip::ArgParser::kArgumentRequired, kOptionUpdateAction },
     { "delayedActionTimeSec", chip::ArgParser::kArgumentRequired, kOptionDelayedActionTimeSec },
     { "userConsentState", chip::ArgParser::kArgumentRequired, kOptionUserConsentState },
     { "softwareVersion", chip::ArgParser::kArgumentRequired, kOptionSoftwareVersion },
@@ -260,6 +288,8 @@ OptionSet cmdLineOptions = { HandleOptions, cmdLineOptionsDef, "PROGRAM OPTIONS"
                              "        Path to a file containing a list of OTA images\n"
                              "  -q/--queryImageStatus <updateAvailable | busy | updateNotAvailable>\n"
                              "        Value for the Status field in the QueryImageResponse\n"
+                             "  -a/--applyUpdateAction <proceed | awaitNextAction | discontinue>\n"
+                             "        Value for the Action field in the ApplyUpdateResponse\n"
                              "  -t/--delayedActionTimeSec <time>\n"
                              "        Value in seconds for the DelayedActionTime field in the QueryImageResponse\n"
                              "        and ApplyUpdateResponse\n"
@@ -303,6 +333,7 @@ void ApplicationInit()
     }
 
     gOtaProvider.SetQueryImageBehavior(gQueryImageBehavior);
+    gOtaProvider.SetApplyUpdateAction(gOptionUpdateAction);
     gOtaProvider.SetDelayedActionTimeSec(gDelayedActionTimeSec);
     if (gSoftwareVersion.HasValue())
     {
diff --git a/examples/ota-provider-app/ota-provider-common/OTAProviderExample.cpp b/examples/ota-provider-app/ota-provider-common/OTAProviderExample.cpp
index 27feb72cfea848..fb5001206c192c 100644
--- a/examples/ota-provider-app/ota-provider-common/OTAProviderExample.cpp
+++ b/examples/ota-provider-app/ota-provider-common/OTAProviderExample.cpp
@@ -302,8 +302,6 @@ EmberAfStatus OTAProviderExample::HandleApplyUpdateRequest(chip::app::CommandHan
                                                            const ApplyUpdateRequest::DecodableType & commandData)
 {
     // TODO: handle multiple transfers by tracking updateTokens
-
-    OTAApplyUpdateAction updateAction = OTAApplyUpdateAction::kProceed; // For now, just allow any update request
     char tokenBuf[kUpdateTokenStrLen] = { 0 };
 
     GetUpdateTokenString(commandData.updateToken, tokenBuf, kUpdateTokenStrLen);
@@ -312,7 +310,7 @@ EmberAfStatus OTAProviderExample::HandleApplyUpdateRequest(chip::app::CommandHan
     VerifyOrReturnError(commandObj != nullptr, EMBER_ZCL_STATUS_INVALID_VALUE);
 
     ApplyUpdateResponse::Type response;
-    response.action            = updateAction;
+    response.action            = mUpdateAction;
     response.delayedActionTime = mDelayedActionTimeSec;
     VerifyOrReturnError(commandObj->AddResponseData(commandPath, response) == CHIP_NO_ERROR, EMBER_ZCL_STATUS_FAILURE);
 
diff --git a/examples/ota-provider-app/ota-provider-common/OTAProviderExample.h b/examples/ota-provider-app/ota-provider-common/OTAProviderExample.h
index a2db9297adebc4..b09502c87be8d2 100644
--- a/examples/ota-provider-app/ota-provider-common/OTAProviderExample.h
+++ b/examples/ota-provider-app/ota-provider-common/OTAProviderExample.h
@@ -18,6 +18,7 @@
 
 #pragma once
 
+#include <app-common/zap-generated/cluster-objects.h>
 #include <app/CommandHandler.h>
 #include <app/clusters/ota-provider/ota-provider-delegate.h>
 #include <ota-provider-common/BdxOtaSender.h>
@@ -69,6 +70,10 @@ class OTAProviderExample : public chip::app::Clusters::OTAProviderDelegate
     } DeviceSoftwareVersionModel;
     void SetOTACandidates(std::vector<OTAProviderExample::DeviceSoftwareVersionModel> candidates);
     void SetQueryImageBehavior(QueryImageBehaviorType behavior) { mQueryImageBehavior = behavior; }
+    void SetApplyUpdateAction(chip::app::Clusters::OtaSoftwareUpdateProvider::OTAApplyUpdateAction action)
+    {
+        mUpdateAction = action;
+    }
     void SetDelayedActionTimeSec(uint32_t time) { mDelayedActionTimeSec = time; }
     void SetUserConsentDelegate(chip::ota::UserConsentDelegate * delegate) { mUserConsentDelegate = delegate; }
     void SetSoftwareVersion(uint32_t softwareVersion) { mSoftwareVersion.SetValue(softwareVersion); }
@@ -81,6 +86,7 @@ class OTAProviderExample : public chip::app::Clusters::OTAProviderDelegate
     static constexpr size_t kFilepathBufLen = 256;
     char mOTAFilePath[kFilepathBufLen]; // null-terminated
     QueryImageBehaviorType mQueryImageBehavior;
+    chip::app::Clusters::OtaSoftwareUpdateProvider::OTAApplyUpdateAction mUpdateAction;
     uint32_t mDelayedActionTimeSec;
     bool SelectOTACandidate(const uint16_t requestorVendorID, const uint16_t requestorProductID,
                             const uint32_t requestorSoftwareVersion,