diff --git a/src/main/java/net/onrc/onos/ofcontroller/flowmanager/FlowEventHandler.java b/src/main/java/net/onrc/onos/ofcontroller/flowmanager/FlowEventHandler.java
index 08f57ed..29deb94 100644
--- a/src/main/java/net/onrc/onos/ofcontroller/flowmanager/FlowEventHandler.java
+++ b/src/main/java/net/onrc/onos/ofcontroller/flowmanager/FlowEventHandler.java
@@ -21,9 +21,11 @@
 import net.onrc.onos.ofcontroller.util.FlowEntry;
 import net.onrc.onos.ofcontroller.util.FlowEntryAction;
 import net.onrc.onos.ofcontroller.util.FlowEntryActions;
+import net.onrc.onos.ofcontroller.util.FlowEntryId;
 import net.onrc.onos.ofcontroller.util.FlowEntryMatch;
 import net.onrc.onos.ofcontroller.util.FlowEntrySwitchState;
 import net.onrc.onos.ofcontroller.util.FlowEntryUserState;
+import net.onrc.onos.ofcontroller.util.FlowId;
 import net.onrc.onos.ofcontroller.util.FlowPath;
 import net.onrc.onos.ofcontroller.util.FlowPathUserState;
 
@@ -41,6 +43,8 @@
     private IDatagridService datagridService;	// The Datagrid Service to use
     private Topology topology;			// The network topology
     private Map<Long, FlowPath> allFlowPaths = new HashMap<Long, FlowPath>();
+    private List<FlowEntry> unmatchedFlowEntryUpdates =
+	new LinkedList<FlowEntry>();
 
     // The queue with Flow Path and Topology Element updates
     private BlockingQueue<EventEntry<?>> networkEvents =
@@ -153,9 +157,6 @@
 	List<FlowPath> recomputeFlowPaths = new LinkedList<FlowPath>();
 	List<FlowPath> modifiedFlowPaths = new LinkedList<FlowPath>();
 
-	// TODO: For now we don't use/process the FlowEntry events
-	flowEntryEvents.clear();
-
 	if (topologyEvents.isEmpty() && flowPathEvents.isEmpty() &&
 	    flowEntryEvents.isEmpty()) {
 	    return;		// Nothing to do
@@ -263,6 +264,43 @@
 	}
 
 	//
+	// Process previously unmatched Flow Entry updates
+	//
+	if ((! flowPathEvents.isEmpty()) && (! unmatchedFlowEntryUpdates.isEmpty())) {
+	    List<FlowEntry> remainingUpdates = new LinkedList<FlowEntry>();
+	    for (FlowEntry flowEntry : unmatchedFlowEntryUpdates) {
+		if (! updateFlowEntry(flowEntry))
+		    remainingUpdates.add(flowEntry);
+	    }
+	    unmatchedFlowEntryUpdates = remainingUpdates;
+	}
+
+	//
+	// Process the Flow Entry events
+	//
+	for (EventEntry<FlowEntry> eventEntry : flowEntryEvents) {
+	    FlowEntry flowEntry = eventEntry.eventData();
+	    switch (eventEntry.eventType()) {
+	    case ENTRY_ADD:
+		//
+		// Find the corresponding Flow Entry and update it.
+		// If not found, then keep it in a local cache for
+		// later matching.
+		//
+		if (! updateFlowEntry(flowEntry))
+		    unmatchedFlowEntryUpdates.add(flowEntry);
+		break;
+	    case ENTRY_REMOVE:
+		//
+		// NOTE: For now we remove the Flow Entries based on
+		// local decisions, so no need to remove them because of an
+		// external event.
+		//
+		break;
+	    }
+	}
+
+	//
 	// Push the Flow Entries that have been modified
 	//
 	flowManager.pushModifiedFlowEntries(modifiedFlowPaths);
@@ -270,6 +308,69 @@
 	// Cleanup
 	topologyEvents.clear();
 	flowPathEvents.clear();
+	flowEntryEvents.clear();
+    }
+
+    /**
+     * Update a Flow Entry because of an external event.
+     *
+     * @param flowEntry the FlowEntry with the new state.
+     * @return true if the Flow Entry was found and updated, otherwise false.
+     */
+    private boolean updateFlowEntry(FlowEntry flowEntry) {
+	if ((! flowEntry.isValidFlowId()) ||
+	    (! flowEntry.isValidFlowEntryId())) {
+	    //
+	    // Ignore events for Flow Entries with invalid Flow ID or
+	    // Flow Entry ID.
+	    // This shouldn't happen.
+	    //
+	    return true;
+	}
+
+	FlowPath flowPath = allFlowPaths.get(flowEntry.flowId().value());
+	if (flowPath == null)
+	    return false;
+
+	//
+	// Iterate over all Flow Entries and find a match based on the DPID
+	//
+	for (FlowEntry localFlowEntry : flowPath.flowEntries()) {
+	    if (localFlowEntry.dpid().value() != flowEntry.dpid().value())
+		continue;
+	    //
+	    // TODO: We might want to check the FlowEntryMatch and
+	    // FlowEntryActions to double-check it is the same Flow Entry
+	    //
+
+	    //
+	    // Local Flow Entry match found
+	    //
+	    if (localFlowEntry.isValidFlowEntryId()) {
+		if (localFlowEntry.flowEntryId().value() !=
+		    flowEntry.flowEntryId().value()) {
+		    //
+		    // Find a local Flow Entry, but the Flow Entry ID doesn't
+		    // match. Ignore the event.
+		    //
+		    return true;
+		}
+	    } else {
+		// Update the Flow Entry ID
+		FlowEntryId flowEntryId =
+		    new FlowEntryId(flowEntry.flowEntryId().value());
+		localFlowEntry.setFlowEntryId(flowEntryId);
+	    }
+
+	    //
+	    // Update the local Flow Entry.
+	    // For now we update only the Flow Entry Switch State
+	    //
+	    localFlowEntry.setFlowEntrySwitchState(flowEntry.flowEntrySwitchState());
+	    return true;
+	}
+
+	return false;		// Entry not found
     }
 
     /**
@@ -395,6 +496,12 @@
 	    //
 	    // Add the new Flow Entry
 	    //
+	    //
+	    // NOTE: Assign only the Flow ID.
+	    // The Flow Entry ID is assigned later only for the Flow Entries
+	    // this instance is responsible for.
+	    //
+	    newFlowEntry.setFlowId(new FlowId(flowPath.flowId().value()));
 
 	    // Set the incoming port matching
 	    FlowEntryMatch flowEntryMatch = new FlowEntryMatch();
diff --git a/src/main/java/net/onrc/onos/ofcontroller/flowmanager/FlowManager.java b/src/main/java/net/onrc/onos/ofcontroller/flowmanager/FlowManager.java
index c14772d..4465835 100644
--- a/src/main/java/net/onrc/onos/ofcontroller/flowmanager/FlowManager.java
+++ b/src/main/java/net/onrc/onos/ofcontroller/flowmanager/FlowManager.java
@@ -519,7 +519,7 @@
     @Override
     public boolean addFlow(FlowPath flowPath, FlowId flowId) {
 	//
-	// NOTE: We need to explicitly initialize the Flow Entry Switch State,
+	// NOTE: We need to explicitly initialize some of the state,
 	// in case the application didn't do it.
 	//
 	for (FlowEntry flowEntry : flowPath.flowEntries()) {
@@ -527,6 +527,8 @@
 		FlowEntrySwitchState.FE_SWITCH_UNKNOWN) {
 		flowEntry.setFlowEntrySwitchState(FlowEntrySwitchState.FE_SWITCH_NOT_UPDATED);
 	    }
+	    if (! flowEntry.isValidFlowId())
+		flowEntry.setFlowId(new FlowId(flowPath.flowId().value()));
 	}
 
 	if (FlowDatabaseOperation.addFlow(this, dbHandler, flowPath, flowId)) {
@@ -707,6 +709,7 @@
      * @return true on success, otherwise false.
      */
     private boolean reconcileFlow(IFlowPath flowObj, DataPath newDataPath) {
+	String flowIdStr = flowObj.getFlowId();
 
 	//
 	// Set the incoming port matching and the outgoing port output
@@ -714,6 +717,8 @@
 	//
 	int idx = 0;
 	for (FlowEntry flowEntry : newDataPath.flowEntries()) {
+	    flowEntry.setFlowId(new FlowId(flowIdStr));
+
 	    // Mark the Flow Entry as not updated in the switch
 	    flowEntry.setFlowEntrySwitchState(FlowEntrySwitchState.FE_SWITCH_NOT_UPDATED);
 	    // Set the incoming port matching
@@ -864,8 +869,7 @@
 		//
 		// Assign the FlowEntry ID if needed
 		//
-		if ((flowEntry.flowEntryId() == null) ||
-		    (flowEntry.flowEntryId().value() == 0)) {
+		if (! flowEntry.isValidFlowEntryId()) {
 		    long id = getNextFlowEntryId();
 		    flowEntry.setFlowEntryId(new FlowEntryId(id));
 		}
@@ -887,6 +891,20 @@
 		// updated.
 		//
 		flowEntry.setFlowEntrySwitchState(FlowEntrySwitchState.FE_SWITCH_UPDATED);
+		//
+		// Write the Flow Entry to the Datagrid
+		//
+		switch (flowEntry.flowEntryUserState()) {
+		case FE_USER_ADD:
+		    datagridService.notificationSendFlowEntryAdded(flowEntry);
+		    break;
+		case FE_USER_MODIFY:
+		    datagridService.notificationSendFlowEntryUpdated(flowEntry);
+		    break;
+		case FE_USER_DELETE:
+		    datagridService.notificationSendFlowEntryRemoved(flowEntry.flowEntryId());
+		    break;
+		}
 
 		//
 		// Write the Flow Entry to the Network Map