diff --git a/flag.module b/flag.module
index 02afd96..1236cc6 100644
--- a/flag.module
+++ b/flag.module
@@ -1049,20 +1049,6 @@ function flag_flag($action, $flag, $entity_id, $account) {
       }
     }
   }
-
-  if (module_exists('rules')) {
-    $event_name = ($action == 'flag' ? 'flag_flagged_' : 'flag_unflagged_') . $flag->name;
-    // We only support flags on entities.
-    if (entity_get_info($flag->entity_type)) {
-      $variables = array(
-        'flag' => $flag,
-        'flagged_' . $flag->entity_type => $entity_id,
-        'flagging_user' => $account,
-        'flagging' => $flag->get_flagging($entity_id,$account->uid),
-      );
-      rules_invoke_event_by_args($event_name, $variables);
-    }
-  }
 }
 
 /**
diff --git a/includes/flag/flag_flag.inc b/includes/flag/flag_flag.inc
index 5fa2cf5..d8050e4 100644
--- a/includes/flag/flag_flag.inc
+++ b/includes/flag/flag_flag.inc
@@ -582,6 +582,20 @@ class flag_flag {
         $this->_delete_flagging($existing_flagging_id);
         $this->_unflag($entity_id, $uid, $sid);
         module_invoke_all('flag', 'unflag', $this, $entity_id, $account, $existing_flagging_id);
+        // Invoke Rules event.
+        if (module_exists('rules')) {
+          $event_name = 'flag_unflagged_' . $this->name;
+          // We only support flags on entities.
+          if (entity_get_info($this->entity_type)) {
+            $variables = array(
+              'flag' => $this,
+              'flagged_' . $this->entity_type => $entity_id,
+              'flagging_user' => $account,
+              'flagging' => $this->get_flagging($entity_id, $account->uid),
+            );
+            rules_invoke_event_by_args($event_name, $variables);
+          }
+        }
       }
     }
     elseif ($action == 'flag') {
@@ -599,6 +613,20 @@ class flag_flag {
         // Field API will assign the fields their default values.
         $this->_insert_flagging($flagging, $entity_id, $flagging_id);
         module_invoke_all('flag', 'flag', $this, $entity_id, $account, $flagging_id);
+        // Invoke Rules event.
+        if (module_exists('rules')) {
+          $event_name = 'flag_flagged_' . $this->name;
+          // We only support flags on entities.
+          if (entity_get_info($this->entity_type)) {
+            $variables = array(
+              'flag' => $this,
+              'flagged_' . $this->entity_type => $entity_id,
+              'flagging_user' => $account,
+              'flagging' => $this->get_flagging($entity_id, $account->uid),
+            );
+            rules_invoke_event_by_args($event_name, $variables);
+          }
+        }
       }
       else {
         // Nothing to do. Item is already flagged.