diff --git a/src/Aspire.Hosting.Docker/Resources/ServiceNodes/Swarm/UpdateConfig.cs b/src/Aspire.Hosting.Docker/Resources/ServiceNodes/Swarm/UpdateConfig.cs
index fac70abfe6c..1701e7776e6 100644
--- a/src/Aspire.Hosting.Docker/Resources/ServiceNodes/Swarm/UpdateConfig.cs
+++ b/src/Aspire.Hosting.Docker/Resources/ServiceNodes/Swarm/UpdateConfig.cs
@@ -21,7 +21,7 @@ public sealed class UpdateConfig
     /// be updated simultaneously.
     /// </summary>
     [YamlMember(Alias = "parallelism")]
-    public string? Parallelism { get; set; }
+    public int? Parallelism { get; set; }
 
     /// <summary>
     /// Represents the delay between each update operation for a service node in a swarm configuration.
@@ -30,10 +30,11 @@ public sealed class UpdateConfig
     public string? Delay { get; set; }
 
     /// <summary>
-    /// Indicates whether the update process should stop and fail upon encountering an error.
+    /// Gets or sets the action to take when an update fails.
+    /// Valid values are "continue", "rollback", or "pause" (default).
     /// </summary>
     [YamlMember(Alias = "failure_action")]
-    public bool? FailOnError { get; set; }
+    public string? FailureAction { get; set; }
 
     /// <summary>
     /// Gets or sets the duration or interval for monitoring the progress of an update.
diff --git a/tests/Aspire.Hosting.Docker.Tests/UpdateConfigTests.cs b/tests/Aspire.Hosting.Docker.Tests/UpdateConfigTests.cs
new file mode 100644
index 00000000000..7235ba71628
--- /dev/null
+++ b/tests/Aspire.Hosting.Docker.Tests/UpdateConfigTests.cs
@@ -0,0 +1,96 @@
+// Licensed to the .NET Foundation under one or more agreements.
+// The .NET Foundation licenses this file to you under the MIT license.
+
+using Aspire.Hosting.Docker.Resources;
+using Aspire.Hosting.Docker.Resources.ComposeNodes;
+using Aspire.Hosting.Docker.Resources.ServiceNodes.Swarm;
+
+namespace Aspire.Hosting.Docker.Tests;
+
+public class UpdateConfigTests
+{
+    [Fact]
+    public void UpdateConfig_SerializesParallelismAsInteger()
+    {
+        // Arrange
+        var updateConfig = new UpdateConfig
+        {
+            Parallelism = 2
+        };
+
+        var composeFile = new ComposeFile
+        {
+            Services = new Dictionary<string, Service>
+            {
+                ["test-service"] = new Service
+                {
+                    Name = "test-service",
+                    Image = "nginx",
+                    Deploy = new Deploy
+                    {
+                        UpdateConfig = updateConfig
+                    }
+                }
+            }
+        };
+
+        // Act
+        var yaml = composeFile.ToYaml();
+
+        // Assert - should serialize as integer (correct)
+        Assert.Contains("parallelism: 2", yaml);
+        Assert.DoesNotContain("parallelism: \"2\"", yaml);
+    }
+
+    [Theory]
+    [InlineData("continue")]
+    [InlineData("rollback")]
+    [InlineData("pause")]
+    public void UpdateConfig_AcceptsValidFailureActionValues(string failureAction)
+    {
+        // Arrange & Act
+        var updateConfig = new UpdateConfig
+        {
+            FailureAction = failureAction
+        };
+
+        // Assert - no exception should be thrown
+        Assert.Equal(failureAction, updateConfig.FailureAction);
+    }
+
+    [Fact]
+    public void UpdateConfig_NullValuesOmittedFromYaml()
+    {
+        // Arrange - Only set some properties
+        var updateConfig = new UpdateConfig
+        {
+            Parallelism = 3, // Set to verify not all are null
+            FailureAction = null, // Should be omitted
+            Delay = null // Should be omitted
+        };
+
+        var composeFile = new ComposeFile
+        {
+            Services = new Dictionary<string, Service>
+            {
+                ["test-service"] = new Service
+                {
+                    Name = "test-service",
+                    Image = "nginx",
+                    Deploy = new Deploy
+                    {
+                        UpdateConfig = updateConfig
+                    }
+                }
+            }
+        };
+
+        // Act
+        var yaml = composeFile.ToYaml();
+
+        // Assert - null values should be omitted
+        Assert.Contains("parallelism: 3", yaml);
+        Assert.DoesNotContain("failure_action:", yaml);
+        Assert.DoesNotContain("delay:", yaml);
+    }
+}
\ No newline at end of file