diff --git a/packages/remote-feature-flag-controller/CHANGELOG.md b/packages/remote-feature-flag-controller/CHANGELOG.md
index 0b7be74d54..0ef1c8e274 100644
--- a/packages/remote-feature-flag-controller/CHANGELOG.md
+++ b/packages/remote-feature-flag-controller/CHANGELOG.md
@@ -11,6 +11,10 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 - Bump `@metamask/controller-utils` from `^12.0.0` to `^12.1.0` ([#8774](https://github.com/MetaMask/core/pull/8774))
 
+### Fixed
+
+- Support `thresholdVersion: 2` threshold feature flag entries that return the selected `value` directly while preserving the existing threshold wrapper shape for unversioned entries ([#8908](https://github.com/MetaMask/core/pull/8908))
+
 ## [4.2.1]
 
 ### Changed
diff --git a/packages/remote-feature-flag-controller/src/remote-feature-flag-controller-types.ts b/packages/remote-feature-flag-controller/src/remote-feature-flag-controller-types.ts
index 6bf8e5ea2f..81b953ba8f 100644
--- a/packages/remote-feature-flag-controller/src/remote-feature-flag-controller-types.ts
+++ b/packages/remote-feature-flag-controller/src/remote-feature-flag-controller-types.ts
@@ -41,6 +41,8 @@ export type FeatureFlagScope = {
 
 export type FeatureFlagScopeValue = {
   name: string;
+  thresholdName?: string;
+  thresholdVersion?: number;
   scope: FeatureFlagScope;
   value: Json;
 };
diff --git a/packages/remote-feature-flag-controller/src/remote-feature-flag-controller.test.ts b/packages/remote-feature-flag-controller/src/remote-feature-flag-controller.test.ts
index 142995b345..f5f1b3fc23 100644
--- a/packages/remote-feature-flag-controller/src/remote-feature-flag-controller.test.ts
+++ b/packages/remote-feature-flag-controller/src/remote-feature-flag-controller.test.ts
@@ -425,6 +425,31 @@ describe('RemoteFeatureFlagController', () => {
     });
   });
 
+  describe('feature flag value normalization', () => {
+    it('preserves direct feature flag config objects without value metadata', async () => {
+      const directConfig = {
+        enabled: true,
+        minimumVersion: '13.10.0',
+      };
+      const clientConfigApiService = buildClientConfigApiService({
+        remoteFeatureFlags: {
+          directConfig,
+        },
+      });
+      const { controller, messenger } = createController({
+        clientConfigApiService,
+      });
+
+      await messenger.call(
+        'RemoteFeatureFlagController:updateRemoteFeatureFlags',
+      );
+
+      expect(controller.state.remoteFeatureFlags.directConfig).toStrictEqual(
+        directConfig,
+      );
+    });
+  });
+
   describe('threshold feature flags', () => {
     it('processes threshold feature flags based on provided metaMetricsId', async () => {
       const clientConfigApiService = buildClientConfigApiService({
@@ -448,6 +473,74 @@ describe('RemoteFeatureFlagController', () => {
       });
     });
 
+    it('preserves selected legacy threshold object value wrappers', async () => {
+      const thresholdFlagValue = {
+        enabled: true,
+        minimumVersion: '13.10.0',
+        attemptsMax: 5,
+      };
+      const mockFlags = {
+        thresholdObjectFlag: [
+          {
+            name: 'enabled',
+            scope: { type: 'threshold', value: 1.0 },
+            value: thresholdFlagValue,
+          },
+        ],
+      };
+      const clientConfigApiService = buildClientConfigApiService({
+        remoteFeatureFlags: mockFlags,
+      });
+      const { controller, messenger } = createController({
+        clientConfigApiService,
+        getMetaMetricsId: () => MOCK_METRICS_ID,
+      });
+
+      await messenger.call(
+        'RemoteFeatureFlagController:updateRemoteFeatureFlags',
+      );
+
+      expect(
+        controller.state.remoteFeatureFlags.thresholdObjectFlag,
+      ).toStrictEqual({
+        name: 'enabled',
+        value: thresholdFlagValue,
+      });
+    });
+
+    it('returns selected threshold version 2 values without wrapper metadata', async () => {
+      const thresholdFlagValue = {
+        enabled: true,
+        minimumVersion: '13.10.0',
+        attemptsMax: 5,
+      };
+      const mockFlags = {
+        thresholdObjectFlag: [
+          {
+            thresholdName: 'enabled',
+            thresholdVersion: 2,
+            scope: { type: 'threshold', value: 1.0 },
+            value: thresholdFlagValue,
+          },
+        ],
+      };
+      const clientConfigApiService = buildClientConfigApiService({
+        remoteFeatureFlags: mockFlags,
+      });
+      const { controller, messenger } = createController({
+        clientConfigApiService,
+        getMetaMetricsId: () => MOCK_METRICS_ID,
+      });
+
+      await messenger.call(
+        'RemoteFeatureFlagController:updateRemoteFeatureFlags',
+      );
+
+      expect(
+        controller.state.remoteFeatureFlags.thresholdObjectFlag,
+      ).toStrictEqual(thresholdFlagValue);
+    });
+
     it('preserves non-threshold feature flags unchanged', async () => {
       const clientConfigApiService = buildClientConfigApiService({
         remoteFeatureFlags: MOCK_FLAGS_WITH_THRESHOLD,
diff --git a/packages/remote-feature-flag-controller/src/remote-feature-flag-controller.ts b/packages/remote-feature-flag-controller/src/remote-feature-flag-controller.ts
index 8f8fbbb4db..94d97c45e2 100644
--- a/packages/remote-feature-flag-controller/src/remote-feature-flag-controller.ts
+++ b/packages/remote-feature-flag-controller/src/remote-feature-flag-controller.ts
@@ -25,6 +25,10 @@ import { isVersionFeatureFlag, getVersionData } from './utils/version';
 export const controllerName = 'RemoteFeatureFlagController';
 export const DEFAULT_CACHE_DURATION = 24 * 60 * 60 * 1000; // 1 day
 
+enum ThresholdVersion {
+  DirectValue = 2,
+}
+
 // === STATE ===
 
 export type RemoteFeatureFlagControllerState = {
@@ -118,6 +122,17 @@ export function getDefaultRemoteFeatureFlagControllerState(): RemoteFeatureFlagC
   };
 }
 
+function normalizeThresholdValue(featureFlag: FeatureFlagScopeValue): Json {
+  if (featureFlag.thresholdVersion === ThresholdVersion.DirectValue) {
+    return featureFlag.value;
+  }
+
+  return {
+    name: featureFlag.name,
+    value: featureFlag.value,
+  };
+}
+
 /**
  * The RemoteFeatureFlagController manages the retrieval and caching of remote feature flags.
  * It fetches feature flags from a remote API, caches them, and provides methods to access
@@ -371,11 +386,9 @@ export class RemoteFeatureFlagController extends BaseController<
             return threshold <= featureFlag.scope.value;
           },
         );
+
         if (selectedGroup) {
-          processedValue = {
-            name: selectedGroup.name,
-            value: selectedGroup.value,
-          };
+          processedValue = normalizeThresholdValue(selectedGroup);
         }
       }