Method and system are provided for handling data when power failure from a primary power source of a storage system is detected. The system provides a first memory and a second memory. The first memory is primarily used to store data when the primary power source is operating. If a power failure is detected, a first indicator is set to indicate that data is stored or being transferred to the second memory. Thereafter, data is transferred from the first memory to the second memory. Any errors during the transfer are logged. Once power is restored, data is transferred back to the first memory. A second indicator is set to indicate that there is no data at the second memory.