diff --git a/poetry.lock b/poetry.lock
index 30204221e..9d2a3c6cc 100644
--- a/poetry.lock
+++ b/poetry.lock
@@ -660,14 +660,14 @@ files = [
 
 [[package]]
 name = "django"
-version = "4.2.16"
+version = "4.2.22"
 description = "A high-level Python web framework that encourages rapid development and clean, pragmatic design."
 optional = false
 python-versions = ">=3.8"
 groups = ["main"]
 files = [
-    {file = "Django-4.2.16-py3-none-any.whl", hash = "sha256:1ddc333a16fc139fd253035a1606bb24261951bbc3a6ca256717fa06cc41a898"},
-    {file = "Django-4.2.16.tar.gz", hash = "sha256:6f1616c2786c408ce86ab7e10f792b8f15742f7b7b7460243929cb371e7f1dad"},
+    {file = "django-4.2.22-py3-none-any.whl", hash = "sha256:0a32773b5b7f4e774a155ee253ab24a841fed7e9e9061db08bf2ce9711da404d"},
+    {file = "django-4.2.22.tar.gz", hash = "sha256:e726764b094407c313adba5e2e866ab88f00436cad85c540a5bf76dc0a912c9e"},
 ]
 
 [package.dependencies]
@@ -681,7 +681,7 @@ bcrypt = ["bcrypt"]
 
 [[package]]
 name = "django-ansible-base"
-version = "2025.5.8"
+version = "25.6.17.0.dev663+gd8be258"
 description = "A Django app used by ansible services"
 optional = false
 python-versions = ">=3.9"
@@ -693,7 +693,7 @@ develop = false
 asgiref = {version = "*", optional = true, markers = "extra == \"resource-registry\""}
 channels = {version = "*", optional = true, markers = "extra == \"channel-auth\""}
 cryptography = "*"
-Django = ">=4.2.16,<4.3.0"
+Django = ">=4.2.21,<4.3.0"
 django-crum = "*"
 django-flags = {version = "*", optional = true, markers = "extra == \"feature-flags\""}
 django-redis = {version = "*", optional = true, markers = "extra == \"redis-client\""}
@@ -707,9 +707,9 @@ sqlparse = ">=0.5.2"
 urllib3 = {version = "*", optional = true, markers = "extra == \"resource-registry\""}
 
 [package.extras]
-all = ["asgiref", "channels", "cryptography", "django-auth-ldap", "django-flags", "django-oauth-toolkit (<2.4.0)", "django-redis", "drf-spectacular", "pyjwt", "pyjwt", "pyrad", "pytest", "pytest-django", "python-ldap", "python3-saml", "redis", "requests", "requests", "social-auth-app-django (==5.4.1)", "social-auth-core (<=4.5.4)", "tabulate", "tacacs_plus", "urllib3", "xmlsec (==1.3.13)"]
+all = ["asgiref", "channels", "cryptography", "django-auth-ldap", "django-flags", "django-oauth-toolkit (<2.4.0)", "django-redis", "drf-spectacular", "ldap-filter", "pyjwt", "pyjwt", "pyrad", "pytest", "pytest-django", "python-ldap", "python3-saml", "redis", "requests", "requests", "social-auth-app-django (==5.4.1)", "social-auth-core (<=4.5.4)", "tabulate", "tacacs_plus", "urllib3", "xmlsec (==1.3.13)"]
 api-documentation = ["drf-spectacular"]
-authentication = ["django-auth-ldap", "pyrad", "python-ldap", "python3-saml", "social-auth-app-django (==5.4.1)", "social-auth-core (<=4.5.4)", "tabulate", "tacacs_plus", "xmlsec (==1.3.13)"]
+authentication = ["django-auth-ldap", "ldap-filter", "pyrad", "python-ldap", "python3-saml", "social-auth-app-django (==5.4.1)", "social-auth-core (<=4.5.4)", "tabulate", "tacacs_plus", "xmlsec (==1.3.13)"]
 channel-auth = ["channels"]
 feature-flags = ["django-flags"]
 jwt-consumer = ["pyjwt", "requests"]
@@ -720,9 +720,9 @@ testing = ["cryptography", "pytest", "pytest-django"]
 
 [package.source]
 type = "git"
-url = "https://github.com/ansible/django-ansible-base.git"
-reference = "2025.5.8"
-resolved_reference = "a46ebe5efa8eea15d5943301d866f204e82f6af4"
+url = "https://github.com/zkayyali812/django-ansible-base.git"
+reference = "phase2/feature-flags/poc"
+resolved_reference = "d8be25892d8239210d18a0be0df492cfa01325d6"
 
 [[package]]
 name = "django-crum"
@@ -3024,4 +3024,4 @@ dev = ["psycopg-binary"]
 [metadata]
 lock-version = "2.1"
 python-versions = ">=3.11,<3.13"
-content-hash = "407ebe011c6024e245c6f1a50fda29dcdcca9b8429e3e007e74eaac7d5135b68"
+content-hash = "70130491087003a7131da493297e07bfdf1bb7cfa759cd45719fba6fde4ab6ff"
diff --git a/pyproject.toml b/pyproject.toml
index ce36e4b8b..8ca417c49 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -47,7 +47,7 @@ cryptography = ">=42,<43"
 kubernetes = "26.1.*"
 podman = "5.4.*"
 rq-scheduler = "^0.10"
-django-ansible-base = { git = "https://github.com/ansible/django-ansible-base.git", tag = "2025.5.8", extras = [
+django-ansible-base = { git = "https://github.com/zkayyali812/django-ansible-base.git", branch = "phase2/feature-flags/poc", extras = [
     "channel-auth",
     "rbac",
     "redis-client",
diff --git a/src/aap_eda/api/resource_api.py b/src/aap_eda/api/resource_api.py
index 52d17f2b1..f386d6dfb 100644
--- a/src/aap_eda/api/resource_api.py
+++ b/src/aap_eda/api/resource_api.py
@@ -11,7 +11,7 @@
 #  WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 #  See the License for the specific language governing permissions and
 #  limitations under the License.
-
+from ansible_base.feature_flags.models import AAPFlag
 from ansible_base.resource_registry.registry import (
     ParentResource,
     ResourceConfig,
@@ -19,6 +19,7 @@
     SharedResource,
 )
 from ansible_base.resource_registry.shared_types import (
+    FeatureFlagType,
     OrganizationType,
     TeamType,
     UserType,
@@ -52,4 +53,10 @@ class APIConfig(ServiceAPIConfig):
             serializer=OrganizationType, is_provider=False
         ),
     ),
+    ResourceConfig(
+        AAPFlag,
+        shared_resource=SharedResource(
+            serializer=FeatureFlagType, is_provider=False
+        ),
+    ),
 )
diff --git a/src/aap_eda/settings/core.py b/src/aap_eda/settings/core.py
index 42ccc5152..4908baa2e 100644
--- a/src/aap_eda/settings/core.py
+++ b/src/aap_eda/settings/core.py
@@ -19,24 +19,9 @@
 DISPATCHERD_FEATURE_FLAG_NAME = "FEATURE_DISPATCHERD_ENABLED"
 ANALYTICS_FEATURE_FLAG_NAME = "FEATURE_EDA_ANALYTICS_ENABLED"
 
-FLAGS = {
-    ANALYTICS_FEATURE_FLAG_NAME: [
-        {
-            "condition": "boolean",
-            "value": False,
-        },
-    ],
-    DISPATCHERD_FEATURE_FLAG_NAME: [
-        {
-            "condition": "boolean",
-            "value": False,
-        },
-    ],
-}
 
 INSTALLED_APPS = [
     "daphne",
-    "flags",
     # Django apps
     "django.contrib.auth",
     "django.contrib.contenttypes",
diff --git a/src/aap_eda/settings/default.py b/src/aap_eda/settings/default.py
index 4ffb3e463..63f61ced3 100644
--- a/src/aap_eda/settings/default.py
+++ b/src/aap_eda/settings/default.py
@@ -19,7 +19,6 @@
     load_dab_settings,
     load_envvars,
     load_standard_settings_files,
-    toggle_feature_flags,
 )
 
 from .post_load import post_loading
@@ -52,13 +51,4 @@
 post_loading(DYNACONF)
 load_dab_settings(DYNACONF)
 
-# toggle feature flags, considering flags coming from
-# /etc/ansible-automation-platform/*.yaml
-# and envvars like `EDA_FEATURE_FOO_ENABLED=true
-DYNACONF.update(
-    toggle_feature_flags(DYNACONF),
-    loader_identifier="settings:toggle_feature_flags",
-    merge=True,
-)
-
 export(__name__, DYNACONF)  # export back to django.conf.settings
diff --git a/tests/conftest.py b/tests/conftest.py
index 611c2926c..d6a293aa1 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -15,6 +15,9 @@
 import logging
 
 import pytest
+from ansible_base.feature_flags.utils import (
+    create_initial_data as seed_feature_flags,
+)
 from django.conf import settings
 
 from aap_eda.core import enums, models
@@ -91,6 +94,11 @@ def aap_credential_type(preseed_credential_types):
     )
 
 
+@pytest.fixture
+def preseed_feature_flags():
+    seed_feature_flags()
+
+
 #################################################################
 # Redis
 #################################################################
diff --git a/tests/integration/api/test_feature_flags.py b/tests/integration/api/test_feature_flags.py
index da6f540e7..fca99c634 100644
--- a/tests/integration/api/test_feature_flags.py
+++ b/tests/integration/api/test_feature_flags.py
@@ -1,41 +1,31 @@
 import pytest
-from ansible_base.lib.dynamic_config import toggle_feature_flags
+from ansible_base.feature_flags.models import AAPFlag
+from ansible_base.feature_flags.utils import (
+    create_initial_data as seed_feature_flags,
+)
 from django.conf import settings
-from django.test import override_settings
-from flags.state import flag_state
+from flags.state import flag_state, get_flags
 from rest_framework import status
 
 from tests.integration.constants import api_url_v1
 
 
 @pytest.mark.django_db
-def test_feature_flags_list_endpoint(admin_client):
+def test_feature_flags_list_endpoint(admin_client, preseed_feature_flags):
     response = admin_client.get(f"{api_url_v1}/feature_flags_state/")
     assert response.status_code == status.HTTP_200_OK, response.data
     # Validates expected default feature flags
     # Modify each time a flag is added to default settings
-    assert len(response.data) == 2
+    assert len(response.data) == len(get_flags())
     assert response.data[settings.ANALYTICS_FEATURE_FLAG_NAME] is False
     assert response.data[settings.DISPATCHERD_FEATURE_FLAG_NAME] is False
 
 
-@override_settings(
-    FLAGS={
-        "FEATURE_SOME_PLATFORM_FLAG_ENABLED": [
-            {"condition": "boolean", "value": False},
-        ],
-    },
-    FEATURE_SOME_PLATFORM_FLAG_ENABLED=True,
-)
+@pytest.mark.parametrize("flag_value", [True, False])
 @pytest.mark.django_db
-def test_feature_flags_toggle():
-    settings_override = {
-        "FLAGS": settings.FLAGS,
-        "FEATURE_SOME_PLATFORM_FLAG_ENABLED": settings.FEATURE_SOME_PLATFORM_FLAG_ENABLED,  # noqa: E501
-    }
-    assert toggle_feature_flags(settings_override) == {
-        "FLAGS__FEATURE_SOME_PLATFORM_FLAG_ENABLED": [
-            {"condition": "boolean", "value": True},
-        ]
-    }
-    assert flag_state("FEATURE_SOME_PLATFORM_FLAG_ENABLED") is True
+def test_feature_flags_toggle(flag_value):
+    flag_name = "FEATURE_EDA_ANALYTICS_ENABLED"
+    setattr(settings, flag_name, flag_value)
+    AAPFlag.objects.all().delete()
+    seed_feature_flags()
+    assert flag_state(flag_name) is flag_value
diff --git a/tests/integration/api/test_root.py b/tests/integration/api/test_root.py
index 8cc3681a3..6c48f888e 100644
--- a/tests/integration/api/test_root.py
+++ b/tests/integration/api/test_root.py
@@ -83,6 +83,9 @@
                 "/organizations/",
                 "/teams/",
                 "/event-streams/",
+                "feature_flags/states/",
+                # To be removed after all components
+                # have migrated away from this endpoint
                 "/feature_flags_state/",
             ],
             False,
diff --git a/tests/unit/test_features.py b/tests/unit/test_features.py
index 742277764..d1ac8b4e2 100644
--- a/tests/unit/test_features.py
+++ b/tests/unit/test_features.py
@@ -15,6 +15,10 @@
 """Unit tests for feature flags functionality."""
 
 import pytest
+from ansible_base.feature_flags.models import AAPFlag
+from ansible_base.feature_flags.utils import (
+    create_initial_data as seed_feature_flags,
+)
 
 from aap_eda.settings import features
 from aap_eda.settings.features import _get_feature
@@ -29,14 +33,10 @@ def clear_feature_cache():
 @pytest.mark.django_db
 def test_get_feature_flag(settings):
     """Test getting feature flag values."""
-    settings.FLAGS = {
-        settings.DISPATCHERD_FEATURE_FLAG_NAME: [
-            {"condition": "boolean", "value": True}
-        ],
-        settings.ANALYTICS_FEATURE_FLAG_NAME: [
-            {"condition": "boolean", "value": False}
-        ],
-    }
+    AAPFlag.objects.all().delete()
+    setattr(settings, settings.DISPATCHERD_FEATURE_FLAG_NAME, True)
+    setattr(settings, settings.ANALYTICS_FEATURE_FLAG_NAME, False)
+    seed_feature_flags()
 
     assert features.DISPATCHERD is True
     assert features.ANALYTICS is False
@@ -45,18 +45,15 @@ def test_get_feature_flag(settings):
 @pytest.mark.django_db
 def test_feature_flag_caching(settings):
     """Test that feature flag values are properly cached."""
-    settings.FLAGS = {
-        settings.DISPATCHERD_FEATURE_FLAG_NAME: [
-            {"condition": "boolean", "value": True}
-        ]
-    }
-
+    AAPFlag.objects.all().delete()
+    setattr(settings, settings.DISPATCHERD_FEATURE_FLAG_NAME, True)
+    seed_feature_flags()
     # First access - should cache the value
     assert features.DISPATCHERD is True
 
     # Change the underlying flag value
-    settings.FLAGS[settings.DISPATCHERD_FEATURE_FLAG_NAME][0]["value"] = False
-
+    setattr(settings, settings.DISPATCHERD_FEATURE_FLAG_NAME, False)
+    seed_feature_flags()
     # Should still get the cached value
     assert features.DISPATCHERD is True
 
@@ -64,21 +61,22 @@ def test_feature_flag_caching(settings):
 @pytest.mark.django_db
 def test_cache_invalidation(settings):
     """Test that cache invalidation works as expected."""
-    settings.FLAGS = {
-        settings.DISPATCHERD_FEATURE_FLAG_NAME: [
-            {"condition": "boolean", "value": True}
-        ]
-    }
+    AAPFlag.objects.all().delete()
+    setattr(settings, settings.DISPATCHERD_FEATURE_FLAG_NAME, True)
+    seed_feature_flags()
 
     # Populate cache
     assert features.DISPATCHERD is True
 
     # Change the flag value and clear cache
-    settings.FLAGS[settings.DISPATCHERD_FEATURE_FLAG_NAME][0]["value"] = False
+    setattr(settings, settings.DISPATCHERD_FEATURE_FLAG_NAME, False)
+    seed_feature_flags()
     _get_feature.cache_clear()
 
-    # Should get the new value after cache clear
-    assert features.DISPATCHERD is False
+    # Feature should remain true.
+    # If runtime toggle, we should only be able to
+    # update the value after toggling it via the platform gateway
+    assert features.DISPATCHERD is True
 
 
 @pytest.mark.django_db