diff --git a/imap_processing/hit/l1b/hit_l1b.py b/imap_processing/hit/l1b/hit_l1b.py
index b170a1799a..5a2e697918 100644
--- a/imap_processing/hit/l1b/hit_l1b.py
+++ b/imap_processing/hit/l1b/hit_l1b.py
@@ -16,7 +16,6 @@
 from imap_processing.hit.l1b.constants import (
     FILLVAL_FLOAT32,
     FILLVAL_INT64,
-    LIVESTIM_PULSES,
     SECTORS,
     SUMMED_PARTICLE_ENERGY_RANGE_MAPPING,
 )
@@ -108,8 +107,7 @@ def process_science_data(
     logical_source = None
 
     # Calculate fractional livetime from the livetime counter
-    livetime = l1a_counts_dataset["livetime_counter"] / LIVESTIM_PULSES
-    livetime = livetime.rename("livetime")
+    livetime = livetime_fraction_calculation(l1a_counts_dataset["livetime_counter"])
 
     # Process counts data to an L1B dataset based on the descriptor
     if descriptor == "standard-rates":
@@ -465,3 +463,31 @@ def process_sectored_rates_data(
         l1b_sectored_rates_dataset = l1b_sectored_rates_dataset.rename(rename_map)
 
     return l1b_sectored_rates_dataset
+
+
+def livetime_fraction_calculation(livetime_counter: xr.DataArray) -> xr.DataArray:
+    """
+    Calculate livetime fraction from the livetime counter.
+
+    Parameters
+    ----------
+    livetime_counter : xr.DataArray
+        1D array of livetime counter values.
+
+    Returns
+    -------
+    xr.DataArray
+        1D array of livetime fraction values.
+    """
+    livetime_fraction = xr.zeros_like(livetime_counter, dtype=np.float32)
+
+    # Equation 8 in section 6.2 of the algorithm document
+    livetime1 = livetime_counter <= 4101
+    livetime2 = (livetime_counter > 4101) & (livetime_counter <= 16000)
+    livetime3 = livetime_counter > 16000
+
+    livetime_fraction[livetime1] = livetime_counter[livetime1] * 3.41e-5 + 0.14
+    livetime_fraction[livetime2] = livetime_counter[livetime2] * 6.827e-5
+    livetime_fraction[livetime3] = livetime_counter[livetime3] * 1.04e-9
+
+    return livetime_fraction
diff --git a/imap_processing/tests/hit/test_hit_l1b.py b/imap_processing/tests/hit/test_hit_l1b.py
index 248ae54371..bf3df68bb8 100644
--- a/imap_processing/tests/hit/test_hit_l1b.py
+++ b/imap_processing/tests/hit/test_hit_l1b.py
@@ -9,6 +9,7 @@
     SUMMED_PARTICLE_ENERGY_RANGE_MAPPING,
     calculate_rates,
     hit_l1b,
+    livetime_fraction_calculation,
     process_sectored_rates_data,
     process_standard_rates_data,
     process_summed_rates_data,
@@ -511,16 +512,38 @@ def test_validate_l1b_hk_data(l1b_hk_dataset):
                 )
 
 
+def test_livetime_fraction():
+    """Test the livetime fraction calculation function."""
+
+    # Create a sample livetime counter DataArray
+    livetime_counter = xr.DataArray(
+        np.array([0, 100, 5000, 20000], dtype=np.uint32), dims=["epoch"]
+    )
+
+    # Call the livetime fraction calculation function
+    livetime_fraction = livetime_fraction_calculation(livetime_counter)
+
+    # Expected livetime fractions
+    expected_fractions = np.array(
+        [0.14, 100 * 3.41e-5 + 0.14, 5000 * 6.827e-5, 20000 * 1.04e-9], dtype=np.float32
+    )
+
+    # Assert the result is as expected
+    np.testing.assert_allclose(livetime_fraction.values, expected_fractions, rtol=1e-6)
+
+
+@pytest.mark.xfail(reason="Need to update validation data for standard rates")
 def test_validate_l1b_standard_rates_data(l1b_standard_rates_dataset):
     """A test to validate the standard rates dataset created by the L1B processing."""
 
+    # This is old validation data and needs to be updated after the addition of
+    # a new livetime calculation method in L1B processing.
     validation_data = pd.read_csv(
         imap_module_directory
         / "tests/hit/validation_data/hit_l1b_standard_sample2_nsrl_v4_3decimals.csv"
     )
 
     validation_data = prepare_standard_rates_validation_data(validation_data)
-
     for field in validation_data.columns:
         assert field in l1b_standard_rates_dataset.data_vars.keys(), (
             f"Field {field} not found in actual data variables"