diff --git a/wrangler-core/src/main/java/io/cdap/directives/row/SendToErrorAndContinue.java b/wrangler-core/src/main/java/io/cdap/directives/row/SendToErrorAndContinue.java
index d2a20fbe9..20922d1e8 100644
--- a/wrangler-core/src/main/java/io/cdap/directives/row/SendToErrorAndContinue.java
+++ b/wrangler-core/src/main/java/io/cdap/directives/row/SendToErrorAndContinue.java
@@ -125,6 +125,8 @@ public List<Row> execute(List<Row> rows, ExecutorContext context)
             context.getTransientStore().increment(TransientVariableScope.LOCAL, "dq_failure", 1);
           }
           throw new ReportErrorAndProceed(message, 1);
+        } else if (context != null && !context.getTransientStore().getVariables().contains("dq_failure")) {
+            context.getTransientStore().set(TransientVariableScope.LOCAL, "dq_failure", 0L);
         }
       } catch (ELException e) {
         throw new DirectiveExecutionException(NAME, e.getMessage(), e);
diff --git a/wrangler-core/src/test/java/io/cdap/directives/row/SendToErrorAndContinueTest.java b/wrangler-core/src/test/java/io/cdap/directives/row/SendToErrorAndContinueTest.java
index f981e14a5..718b2f488 100644
--- a/wrangler-core/src/test/java/io/cdap/directives/row/SendToErrorAndContinueTest.java
+++ b/wrangler-core/src/test/java/io/cdap/directives/row/SendToErrorAndContinueTest.java
@@ -107,4 +107,29 @@ public void testErrorConditionTrueAndContinueWithTransientVariable() throws Exce
     Assert.assertEquals(2, errors.size());
     Assert.assertEquals(3, results.size());
   }
+
+  @Test
+  public void testErrorConditionFalseAndContinueWithTransientVariable() throws Exception {
+    String[] directives = new String[] {
+            "parse-as-csv body , true",
+            "drop body",
+            "send-to-error-and-continue exp:{body_3 == 'xyzw'} 'invalid value'",
+            "send-to-error-and-continue exp:{body_4=='1000'} 'junk' ",
+            "send-to-error exp:{dq_failure >= 1} "
+    };
+
+    List<Row> rows = Arrays.asList(
+            new Row("body", "1020134.298,,1,2,2 "),
+            new Row("body", "1020134.298,,xx,1,3"),
+            new Row("body", "1020134.298,,4,1,4"),
+            new Row("body", "1020134.298,,4,2,5"),
+            new Row("body", "1020134.298,,1,2,1")
+    );
+
+    RecipePipeline pipeline = TestingRig.execute(directives);
+    List<Row> results = pipeline.execute(rows);
+    List<ErrorRecord> errors = pipeline.errors();
+    Assert.assertEquals(0, errors.size());
+    Assert.assertEquals(5, results.size());
+  }
 }