diff --git a/contracts/predict-iq/src/modules/monitoring.rs b/contracts/predict-iq/src/modules/monitoring.rs
index f1604a6..aaa7e46 100644
--- a/contracts/predict-iq/src/modules/monitoring.rs
+++ b/contracts/predict-iq/src/modules/monitoring.rs
@@ -18,6 +18,9 @@ pub fn track_error(e: &Env) {
         .unwrap_or(0);
     count += 1;
     e.storage().persistent().set(&DataKey::ErrorCount, &count);
+    e.storage()
+        .persistent()
+        .set(&DataKey::LastObservation, &e.ledger().timestamp());
 
     if count > 10 {
         e.storage().persistent().set(
@@ -32,8 +35,80 @@ pub fn track_error(e: &Env) {
 
 /// Issue #44: Emit MonitorReset event so devops can track resets on-chain.
 pub fn reset_monitoring(e: &Env) {
+    let previous_error_count: u32 = e
+        .storage()
+        .persistent()
+        .get(&DataKey::ErrorCount)
+        .unwrap_or(0);
+    let previous_last_observation: u64 = e
+        .storage()
+        .persistent()
+        .get(&DataKey::LastObservation)
+        .unwrap_or(0);
+
     e.storage().persistent().set(&DataKey::ErrorCount, &0u32);
+    e.storage().persistent().set(&DataKey::LastObservation, &0u64);
+
+    let resetter = crate::modules::admin::get_admin(e).unwrap_or(e.current_contract_address());
+    crate::modules::events::emit_monitoring_state_reset(
+        e,
+        resetter,
+        previous_error_count,
+        previous_last_observation,
+    );
+}
+
+#[cfg(test)]
+mod tests {
+    use super::{reset_monitoring, track_error, DataKey};
+    use soroban_sdk::{testutils::{Events, Ledger}, Env};
 
-    e.events()
-        .publish((symbol_short!("mon_reset"),), 0u32);
+    #[test]
+    fn reset_monitoring_clears_error_trackers() {
+        let e = Env::default();
+        e.ledger().set_timestamp(777);
+
+        track_error(&e);
+        track_error(&e);
+
+        let before_count: u32 = e.storage().persistent().get(&DataKey::ErrorCount).unwrap_or(0);
+        let before_obs: u64 = e
+            .storage()
+            .persistent()
+            .get(&DataKey::LastObservation)
+            .unwrap_or(0);
+        assert_eq!(before_count, 2);
+        assert_eq!(before_obs, 777);
+
+        reset_monitoring(&e);
+
+        let after_count: u32 = e.storage().persistent().get(&DataKey::ErrorCount).unwrap_or(1);
+        let after_obs: u64 = e
+            .storage()
+            .persistent()
+            .get(&DataKey::LastObservation)
+            .unwrap_or(1);
+
+        assert_eq!(after_count, 0);
+        assert_eq!(after_obs, 0);
+    }
+
+    #[test]
+    fn reset_monitoring_emits_event_with_previous_values() {
+        let e = Env::default();
+        e.ledger().set_timestamp(1234);
+
+        track_error(&e);
+        track_error(&e);
+
+        reset_monitoring(&e);
+
+        let events = e.events().all();
+        assert!(!events.is_empty());
+
+        let events_debug = format!("{:?}", events);
+        assert!(events_debug.contains("mon_reset"));
+        assert!(events_debug.contains("2"));
+        assert!(events_debug.contains("1234"));
+    }
 }