diff --git a/mmv1/third_party/terraform/services/apigee/resource_apigee_flowhook.go b/mmv1/third_party/terraform/services/apigee/resource_apigee_flowhook.go
index 2161cc78555e..0e5477303694 100644
--- a/mmv1/third_party/terraform/services/apigee/resource_apigee_flowhook.go
+++ b/mmv1/third_party/terraform/services/apigee/resource_apigee_flowhook.go
@@ -102,7 +102,8 @@ func resourceApigeeFlowhookCreate(d *schema.ResourceData, meta interface{}) erro
 	continue_on_errorProp, err := expandApigeeFlowhookContinueOnError(d.Get("continue_on_error"), d, config)
 	if err != nil {
 		return err
-	} else if v, ok := d.GetOkExists("continue_on_error"); !tpgresource.IsEmptyValue(reflect.ValueOf(continue_on_errorProp)) && (ok || !reflect.DeepEqual(v, continue_on_errorProp)) {
+	} else if v, ok := d.GetOkExists("continue_on_error"); ok || !reflect.DeepEqual(v, continue_on_errorProp) {
+		// Preserve explicitly configured false values when send_empty_value behavior is desired.
 		obj["continueOnError"] = continue_on_errorProp
 	}
 
diff --git a/mmv1/third_party/terraform/services/apigee/resource_apigee_flowhook_meta.yaml b/mmv1/third_party/terraform/services/apigee/resource_apigee_flowhook_meta.yaml
index d14117eb09f0..0e00935ffec6 100644
--- a/mmv1/third_party/terraform/services/apigee/resource_apigee_flowhook_meta.yaml
+++ b/mmv1/third_party/terraform/services/apigee/resource_apigee_flowhook_meta.yaml
@@ -5,6 +5,7 @@ api_version: 'v1'
 api_resource_type_kind: 'FlowHook'
 fields:
   - api_field: 'continueOnError'
+    send_empty_value: true
   - api_field: 'description'
   - field: 'environment'
   - api_field: 'flowHookPoint'
diff --git a/mmv1/third_party/terraform/services/apigee/resource_apigee_flowhook_test.go b/mmv1/third_party/terraform/services/apigee/resource_apigee_flowhook_test.go
index 76b615867862..b8f3f3cae7b0 100644
--- a/mmv1/third_party/terraform/services/apigee/resource_apigee_flowhook_test.go
+++ b/mmv1/third_party/terraform/services/apigee/resource_apigee_flowhook_test.go
@@ -23,9 +23,10 @@ func TestAccApigeeFlowhook_apigeeFlowhookTestExample(t *testing.T) {
 	t.Parallel()
 
 	context := map[string]interface{}{
-		"org_id":          envvar.GetTestOrgFromEnv(t),
-		"billing_account": envvar.GetTestBillingAccountFromEnv(t),
-		"random_suffix":   acctest.RandString(t, 10),
+		"org_id":            envvar.GetTestOrgFromEnv(t),
+		"billing_account":   envvar.GetTestBillingAccountFromEnv(t),
+		"random_suffix":     acctest.RandString(t, 10),
+		"continue_on_error": true,
 	}
 
 	acctest.VcrTest(t, resource.TestCase{
@@ -49,6 +50,42 @@ func TestAccApigeeFlowhook_apigeeFlowhookTestExample(t *testing.T) {
 	})
 }
 
+func TestAccApigeeFlowhook_continueOnErrorFalse(t *testing.T) {
+	acctest.SkipIfVcr(t)
+	t.Parallel()
+
+	context := map[string]interface{}{
+		"org_id":            envvar.GetTestOrgFromEnv(t),
+		"billing_account":   envvar.GetTestBillingAccountFromEnv(t),
+		"random_suffix":     acctest.RandString(t, 10),
+		"continue_on_error": false,
+	}
+
+	acctest.VcrTest(t, resource.TestCase{
+		PreCheck:                 func() { acctest.AccTestPreCheck(t) },
+		ProtoV5ProviderFactories: acctest.ProtoV5ProviderFactories(t),
+		ExternalProviders: map[string]resource.ExternalProvider{
+			"time": {},
+		},
+		CheckDestroy: testAccCheckApigeeFlowhookDestroyProducer(t),
+		Steps: []resource.TestStep{
+			{
+				Config: testAccApigeeFlowhook_apigeeFlowhookTestExample(context),
+				Check: resource.ComposeTestCheckFunc(
+					resource.TestCheckResourceAttr("google_apigee_flowhook.flowhook_test", "continue_on_error", "false"),
+					testAccCheckApigeeFlowhookContinueOnError(t, "google_apigee_flowhook.flowhook_test", false),
+				),
+			},
+			{
+				ResourceName:            "google_apigee_flowhook.flowhook_test",
+				ImportState:             true,
+				ImportStateVerify:       true,
+				ImportStateVerifyIgnore: []string{},
+			},
+		},
+	})
+}
+
 func testAccApigeeFlowhook_apigeeFlowhookTestExample(context map[string]interface{}) string {
 	return acctest.Nprintf(`
 resource "google_project" "project" {
@@ -140,11 +177,55 @@ resource "google_apigee_flowhook" "flowhook_test" {
 	flow_hook_point = "PreProxyFlowHook"
 	sharedflow = google_apigee_sharedflow.test_apigee_sharedflow.name
 	description = "test flowhook"
-	continue_on_error = true
+	continue_on_error = %{continue_on_error}
   }
 `, context)
 }
 
+// Verifies continue_on_error is correctly persisted when explicitly set.
+// Verify continueOnError is returned by the API with the expected value.
+func testAccCheckApigeeFlowhookContinueOnError(t *testing.T, resourceName string, expected bool) resource.TestCheckFunc {
+	return func(s *terraform.State) error {
+		rs, ok := s.RootModule().Resources[resourceName]
+		if !ok {
+			return fmt.Errorf("resource not found: %s", resourceName)
+		}
+
+		config := acctest.GoogleProviderConfig(t)
+
+		url, err := tpgresource.ReplaceVarsForTest(config, rs, transport_tpg.BaseUrl(apigee.Product, config)+"organizations/{{org_id}}/environments/{{environment}}/flowhooks/{{flow_hook_point}}")
+		if err != nil {
+			return err
+		}
+
+		billingProject := ""
+		if config.BillingProject != "" {
+			billingProject = config.BillingProject
+		}
+
+		res, err := transport_tpg.SendRequest(transport_tpg.SendRequestOptions{
+			Config:    config,
+			Method:    "GET",
+			Project:   billingProject,
+			RawURL:    url,
+			UserAgent: config.UserAgent,
+		})
+		if err != nil {
+			return fmt.Errorf("error reading flowhook at %s: %s", url, err)
+		}
+
+		got, ok := res["continueOnError"].(bool)
+		if !ok {
+			return fmt.Errorf("continueOnError missing or not a bool in API response for %s", url)
+		}
+		if got != expected {
+			return fmt.Errorf("continueOnError = %t, want %t at %s", got, expected, url)
+		}
+
+		return nil
+	}
+}
+
 func testAccCheckApigeeFlowhookDestroyProducer(t *testing.T) func(s *terraform.State) error {
 	return func(s *terraform.State) error {
 		for name, rs := range s.RootModule().Resources {