diff --git a/.changeset/link-6287-rules-automation-rule-terminal-failure-action-items.md b/.changeset/link-6287-rules-automation-rule-terminal-failure-action-items.md
new file mode 100644
index 00000000..ef5438b0
--- /dev/null
+++ b/.changeset/link-6287-rules-automation-rule-terminal-failure-action-items.md
@@ -0,0 +1,6 @@
+---
+"@transcend-io/privacy-types": patch
+"@transcend-io/cli": patch
+---
+
+Add `RulesAutomationRuleTerminalFailure` and `RulesAutomationRuleTerminalFailureAssigned` values to the `ActionItemCode` enum so that Rules Automation rule owners can be notified when a rule hits a terminal execution failure. Regenerate the CLI `transcend.yml` JSON schema so the new codes are reflected.
diff --git a/packages/cli/schema/transcend-yml-schema-latest.json b/packages/cli/schema/transcend-yml-schema-latest.json
index 65042f61..559f939f 100644
--- a/packages/cli/schema/transcend-yml-schema-latest.json
+++ b/packages/cli/schema/transcend-yml-schema-latest.json
@@ -57,7 +57,9 @@
                   "ONBOARDING",
                   "REQUEST_ASSIGNED_TO_USER",
                   "BUSINESS_ENTITY_NEEDS_DOCUMENTATION",
-                  "DATA_POINT_DATABASE_QUERY_NEEDS_APPROVAL"
+                  "DATA_POINT_DATABASE_QUERY_NEEDS_APPROVAL",
+                  "RULES_AUTOMATION_RULE_TERMINAL_FAILURE",
+                  "RULES_AUTOMATION_RULE_TERMINAL_FAILURE_ASSIGNED"
                 ]
               },
               "collections": {
diff --git a/packages/cli/schema/transcend-yml-schema-v10.json b/packages/cli/schema/transcend-yml-schema-v10.json
index 98438024..b1756be1 100644
--- a/packages/cli/schema/transcend-yml-schema-v10.json
+++ b/packages/cli/schema/transcend-yml-schema-v10.json
@@ -57,7 +57,9 @@
                   "ONBOARDING",
                   "REQUEST_ASSIGNED_TO_USER",
                   "BUSINESS_ENTITY_NEEDS_DOCUMENTATION",
-                  "DATA_POINT_DATABASE_QUERY_NEEDS_APPROVAL"
+                  "DATA_POINT_DATABASE_QUERY_NEEDS_APPROVAL",
+                  "RULES_AUTOMATION_RULE_TERMINAL_FAILURE",
+                  "RULES_AUTOMATION_RULE_TERMINAL_FAILURE_ASSIGNED"
                 ]
               },
               "collections": {
diff --git a/packages/privacy-types/src/actionItems.ts b/packages/privacy-types/src/actionItems.ts
index a5cfb3d6..c018b1da 100644
--- a/packages/privacy-types/src/actionItems.ts
+++ b/packages/privacy-types/src/actionItems.ts
@@ -160,6 +160,18 @@ export enum ActionItemCode {
    * A database datapoint has queries that need approval
    */
   DataPointDatabaseQueryNeedsApproval = 'DATA_POINT_DATABASE_QUERY_NEEDS_APPROVAL',
+  /**
+   * - A Rules Automation rule has hit a terminal failure (an execution
+   *   transitioned to FAILURE with no further retries) and the rule has
+   *   no assigned owners
+   */
+  RulesAutomationRuleTerminalFailure = 'RULES_AUTOMATION_RULE_TERMINAL_FAILURE',
+  /**
+   * - A Rules Automation rule has hit a terminal failure (an execution
+   *   transitioned to FAILURE with no further retries) and the rule has
+   *   one or more assigned owners (users or teams)
+   */
+  RulesAutomationRuleTerminalFailureAssigned = 'RULES_AUTOMATION_RULE_TERMINAL_FAILURE_ASSIGNED',
 }
 
 /**