diff --git a/tap_airbyte/tap.py b/tap_airbyte/tap.py
index 9feaaee..1958659 100644
--- a/tap_airbyte/tap.py
+++ b/tap_airbyte/tap.py
@@ -12,6 +12,7 @@
 
 from __future__ import annotations
 
+from copy import deepcopy
 import errno
 import os
 import shutil
@@ -513,8 +514,15 @@ def run_read(self) -> t.Iterator[subprocess.Popen]:
                 catalog.write(orjson.dumps(self.configured_airbyte_catalog))
             if self.airbyte_state:
                 with open(f"{host_tmpdir}/state.json", "wb") as state:
-                    self.logger.debug("Using state: %s", self.airbyte_state)
-                    state.write(orjson.dumps(self.airbyte_state))
+                    # Use the new airbyte state container if it exists.
+                    state_dict = self.airbyte_state
+                    if 'airbyte_state' in self.airbyte_state:
+                        # This is airbyte state V2
+                        state_dict = self.airbyte_state['airbyte_state']
+
+                    self.logger.debug("Using state: %s", state_dict)
+                    state.write(orjson.dumps(state_dict))
+
             runtime_conf_dir = host_tmpdir if self.is_native() else self.airbyte_mount_dir
             proc = subprocess.Popen(
                 self.to_command(
@@ -732,8 +740,55 @@ def sync_all(self) -> None:
                 ):
                     self._process_log_message(airbyte_message)
                 elif airbyte_message["type"] == AirbyteMessage.STATE:
-                    state_message = airbyte_message["state"]
+                    # See: https://docs.airbyte.com/understanding-airbyte/database-data-catalog
+                    # for how this state should be handled.
+                    state_message = deepcopy(airbyte_message["state"])
                     state_type = state_message["type"]
+
+                    if "airbyte_state" not in self.airbyte_state:
+                        self.airbyte_state["airbyte_state"] = []
+
+                    # The airbyte_state_v2 here should adhere to the link above.
+                    existing_airbyte_state_v2: list[dict] = deepcopy(self.airbyte_state["airbyte_state"])
+                    if state_type == "STREAM":
+                        stream_descriptor = state_message["stream"]["stream_descriptor"]
+                        stream_state = state_message["stream"]["stream_state"]
+
+                        # Update the state for this stream descriptor or add it to the list.
+                        found = False
+                        for existing_state in existing_airbyte_state_v2:
+                            if existing_state["type"] == "STREAM" and existing_state["stream"]["stream_descriptor"] == stream_descriptor:
+                                existing_state["stream"]["stream_state"] = stream_state
+                                found = True
+                                break
+                        if not found:
+                            existing_airbyte_state_v2.append({
+                                "type": "STREAM",
+                                "stream": state_message["stream"]
+                            })
+                    elif state_type == "GLOBAL":
+                        # Update the global state.
+                        found = False
+                        for existing_state in existing_airbyte_state_v2:
+                            if existing_state["type"] == "GLOBAL":
+                                existing_state["global"] = state_message["global"]
+                                found = True
+                                break
+                        if not found:
+                            existing_airbyte_state_v2.append({
+                                "type": "GLOBAL",
+                                "global": state_message["global"]
+                            })
+                    elif state_type == "LEGACY":
+                        # One record per connector.
+                        existing_airbyte_state_v2.clear()
+                        existing_airbyte_state_v2.append(
+                            {
+                                "type": "LEGACY",
+                                "legacy": state_message["legacy"]
+                            }
+                        )
+
                     if "data" in state_message:
                         unpacked_state = state_message["data"]
                     elif state_type == "STREAM":
@@ -742,7 +797,12 @@ def sync_all(self) -> None:
                         unpacked_state = state_message["global"]
                     elif state_type == "LEGACY":
                         unpacked_state = state_message["legacy"]
-                    self.airbyte_state = unpacked_state
+
+                    # Keep the legacy state behavior, but append the new state under a new key.
+                    # Deepcopy here since existing_airbyte_state_v2 can refernce the same object.
+                    self.airbyte_state = deepcopy(unpacked_state)
+                    self.airbyte_state['airbyte_state'] = existing_airbyte_state_v2
+
                     with STDOUT_LOCK:
                         singer.write_message(singer.StateMessage(self.airbyte_state))
                 else: