diff --git a/packages/remote-feature-flag-controller/CHANGELOG.md b/packages/remote-feature-flag-controller/CHANGELOG.md
index 0b7be74d54..5939453143 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.DirectValue` (`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/index.ts b/packages/remote-feature-flag-controller/src/index.ts
index 666660e482..00c1c1c2d1 100644
--- a/packages/remote-feature-flag-controller/src/index.ts
+++ b/packages/remote-feature-flag-controller/src/index.ts
@@ -20,6 +20,7 @@ export {
   ClientType,
   DistributionType,
   EnvironmentType,
+  ThresholdVersion,
 } from './remote-feature-flag-controller-types';
 
 export type { FeatureFlags } from './remote-feature-flag-controller-types';
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..0e6ab906ca 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
@@ -39,8 +39,22 @@ export type FeatureFlagScope = {
   value: number;
 };
 
+export enum ThresholdVersion {
+  DirectValue = 2,
+}
+
 export type FeatureFlagScopeValue = {
   name: string;
+  /**
+   * Optional label for direct-value threshold entries. This replaces `name` in
+   * v2 configurations and is not emitted in processed controller state.
+   */
+  thresholdName?: string;
+  /**
+   * Selects the threshold entry output shape. Unrecognized versions fall back
+   * to the legacy `{ name, value }` wrapper for backwards compatibility.
+   */
+  thresholdVersion?: ThresholdVersion;
   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..049f391b2d 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
@@ -18,6 +18,7 @@ import type {
   RemoteFeatureFlagControllerMessenger,
   RemoteFeatureFlagControllerState,
 } from './remote-feature-flag-controller';
+import { ThresholdVersion } from './remote-feature-flag-controller-types';
 import type { FeatureFlags } from './remote-feature-flag-controller-types';
 
 const MOCK_FLAGS: FeatureFlags = {
@@ -425,6 +426,31 @@ 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 +474,108 @@ 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: ThresholdVersion.DirectValue,
+            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('falls back to legacy threshold wrappers for unrecognized threshold versions', async () => {
+      const thresholdFlagValue = {
+        enabled: true,
+      };
+      const mockFlags = {
+        thresholdObjectFlag: [
+          {
+            name: 'enabled',
+            thresholdVersion: 3,
+            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('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..477e16d7ea 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
@@ -9,6 +9,7 @@ import type { Json, SemVerVersion } from '@metamask/utils';
 
 import type { AbstractClientConfigApiService } from './client-config-api-service/abstract-client-config-api-service';
 import type { RemoteFeatureFlagControllerMethodActions } from './remote-feature-flag-controller-method-action-types';
+import { ThresholdVersion } from './remote-feature-flag-controller-types';
 import type {
   FeatureFlags,
   ServiceResponse,
@@ -118,6 +119,19 @@ export function getDefaultRemoteFeatureFlagControllerState(): RemoteFeatureFlagC
   };
 }
 
+function normalizeThresholdValue(featureFlag: FeatureFlagScopeValue): Json {
+  if (featureFlag.thresholdVersion === ThresholdVersion.DirectValue) {
+    return featureFlag.value;
+  }
+
+  // Unknown threshold versions fall back to the legacy wrapper shape for
+  // backwards compatibility with existing threshold feature flag configs.
+  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 +385,9 @@ export class RemoteFeatureFlagController extends BaseController<
             return threshold <= featureFlag.scope.value;
           },
         );
+
         if (selectedGroup) {
-          processedValue = {
-            name: selectedGroup.name,
-            value: selectedGroup.value,
-          };
+          processedValue = normalizeThresholdValue(selectedGroup);
         }
       }