diff --git a/.github/workflows/perf-gradle-compatibility-tests.yml b/.github/workflows/perf-gradle-compatibility-tests.yml
index 158291a398b..e7c29bf7893 100644
--- a/.github/workflows/perf-gradle-compatibility-tests.yml
+++ b/.github/workflows/perf-gradle-compatibility-tests.yml
@@ -30,3 +30,30 @@ jobs:
           ./gradlew \
           :firebase-perf-gradle:functionalTest --tests \
           "com.google.firebase.perf.plugin.transform.InstrumentationApiCompatTest.gradleBuildRunsInstrumentationForAllVariants_latestGradleAndAgp"
+  create-issue-on-failure:
+    needs: performance-plugin
+    if: failure()
+    runs-on: ubuntu-latest
+    permissions:
+      issues: write
+    steps:
+      - name: Create issue
+        uses: actions/github-script@60a0d83039c74a4aee543508d2ffcb1c3799cdea # v7.0.1
+        with:
+          script: |
+              const issueTitle = 'Perf Gradle Compatibility test failed';
+
+              const { data: searchResults } = await github.rest.search.issuesAndPullRequests({
+                q: `is:issue is:open repo:${context.repo.owner}/${context.repo.repo} in:title "${issueTitle}"`,
+              });
+
+              if (searchResults.total_count === 0) {
+                await github.rest.issues.create({
+                  owner: context.repo.owner,
+                  repo: context.repo.repo,
+                  title: issueTitle,
+                  body: `https://github.com/firebase/firebase-android-sdk/actions/workflows/perf-gradle-compatibility-tests.yml`
+                  assignees: ['tejasd'],
+                  labels: ['bug', 'automated']
+                })
+              }
\ No newline at end of file
diff --git a/firebase-perf-gradle/src/functionalTest/java/com/google/firebase/perf/plugin/transform/InstrumentationApiCompatTest.java b/firebase-perf-gradle/src/functionalTest/java/com/google/firebase/perf/plugin/transform/InstrumentationApiCompatTest.java
index 99ff66a4b22..68236f3f65f 100644
--- a/firebase-perf-gradle/src/functionalTest/java/com/google/firebase/perf/plugin/transform/InstrumentationApiCompatTest.java
+++ b/firebase-perf-gradle/src/functionalTest/java/com/google/firebase/perf/plugin/transform/InstrumentationApiCompatTest.java
@@ -52,8 +52,8 @@ public class InstrumentationApiCompatTest {
   private static final String GRADLE_RELEASES_URL =
       "https://api.github.com/repos/gradle/gradle/releases/latest";
   // Latest verified versions. Update these as new versions are released and verified.
-  private static final String VERIFIED_AGP_VERSION = "9.2.0-alpha05";
-  private static final String VERIFIED_GRADLE_VERSION = "9.5.0-milestone-5";
+  private static final String VERIFIED_AGP_VERSION = "9.2.0-alpha08";
+  private static final String VERIFIED_GRADLE_VERSION = "9.4.1";
   private final OkHttpClient client = new OkHttpClient();
 
   @RegisterExtension public GradleBuildProject gradleBuildProject = new GradleBuildProject();
@@ -130,7 +130,6 @@ private String latestGradleVersion() {
       JsonObject releaseObject = JsonParser.parseString(response.body().string()).getAsJsonObject();
       return releaseObject.get("name").getAsString();
     } catch (Exception e) {
-      // Catch all exceptions (IO, XML parsing, etc.) and wrap them
       throw new RuntimeException(
           "Failed to fetch or parse latest Gradle version: " + e.getMessage(), e);
     }