diff --git a/.github/workflows/test-powerfail-simulator.yml b/.github/workflows/test-powerfail-simulator.yml
index 6be37b10..b5107c88 100644
--- a/.github/workflows/test-powerfail-simulator.yml
+++ b/.github/workflows/test-powerfail-simulator.yml
@@ -416,3 +416,31 @@ jobs:
       - name: Run update-revert test with power failures (AES128 DELTA)
         run: |
           tools/scripts/sim-update-powerfail-resume.sh
+
+    # TEST with backup disabled
+      - name: make clean
+        run: |
+          make distclean
+      - name: Select config with backup disabled
+        run: |
+          cp config/examples/sim-nobackup.config .config
+
+      - name: Build tools
+        run: |
+          make -C tools/keytools && make -C tools/bin-assemble
+
+      - name: Build wolfboot.elf
+        run: |
+          make clean && make test-sim-internal-flash-with-update
+
+      - name: Run sunny day update test (AES128 DELTA)
+        run: |
+          tools/scripts/sim-sunnyday-update.sh
+
+      - name: Rebuild wolfboot.elf
+        run: |
+          make clean && make test-sim-internal-flash-with-update
+
+      - name: Run update test with DISABLE_BACKUP and powefail
+        run: |
+          tools/scripts/sim-update-powerfail-resume-nobackup.sh
diff --git a/config/examples/sim-nobackup.config b/config/examples/sim-nobackup.config
new file mode 100644
index 00000000..fd67a814
--- /dev/null
+++ b/config/examples/sim-nobackup.config
@@ -0,0 +1,23 @@
+ARCH=sim
+TARGET=sim
+SIGN?=ED25519
+HASH?=SHA256
+WOLFBOOT_SMALL_STACK?=1
+SPI_FLASH=0
+DEBUG=1
+SPMATH?=0
+DISABLE_BACKUP=1
+
+# sizes should be multiple of system page size
+WOLFBOOT_PARTITION_SIZE=0x40000
+WOLFBOOT_SECTOR_SIZE=0x1000
+WOLFBOOT_PARTITION_BOOT_ADDRESS=0x80000
+# if on external flash, it should be multiple of system page size
+WOLFBOOT_PARTITION_UPDATE_ADDRESS=0x100000
+WOLFBOOT_PARTITION_SWAP_ADDRESS=0x180000
+
+# required for keytools
+WOLFBOOT_FIXED_PARTITIONS=1
+
+# For debugging XMALLOC/XFREE
+#CFLAGS_EXTRA+=-DWOLFBOOT_DEBUG_MALLOC
diff --git a/tools/scripts/sim-update-powerfail-resume-nobackup.sh b/tools/scripts/sim-update-powerfail-resume-nobackup.sh
new file mode 100755
index 00000000..ee02df39
--- /dev/null
+++ b/tools/scripts/sim-update-powerfail-resume-nobackup.sh
@@ -0,0 +1,30 @@
+#!/bin/bash
+V=`./wolfboot.elf update_trigger get_version 2>/dev/null`
+if [ "x$V" != "x1" ]; then
+    echo "Failed first boot with update_trigger"
+    exit 1
+fi
+
+./wolfboot.elf powerfail 0 get_version 2>/dev/null
+./wolfboot.elf powerfail 15000 get_version 2>/dev/null
+./wolfboot.elf powerfail 18000 get_version 2>/dev/null
+./wolfboot.elf powerfail 1a000 get_version 2>/dev/null
+# fail on the last sector to stop the encrypt key save and state update
+./wolfboot.elf powerfail 3e000 get_version 2>/dev/null
+# may not trigger on non NVM_FLASH_WRITEONCE
+V=`./wolfboot.elf powerfail 3f000 get_version` 2>/dev/null
+if [ "x$V" != "x2" ]; then
+    V=`./wolfboot.elf get_version 2>/dev/null`
+    # if we failed on the final boot state write we need to double fallback
+    if [ "x$V" == "x1" ]; then
+        V=`./wolfboot.elf get_version 2>/dev/null`
+    fi
+fi
+
+if [ "x$V" != "x2" ]; then
+    echo "Failed update (V: $V)"
+    exit 1
+fi
+
+echo Test successful.
+exit 0