diff --git a/src/hooks/useDecideHoldout.spec.tsx b/src/hooks/useDecideHoldout.spec.tsx
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+++ b/src/hooks/useDecideHoldout.spec.tsx
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+/**
+ * Copyright 2026, Optimizely
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * https://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import { vi, describe, it, expect, beforeEach } from 'vitest';
+import { renderHook, waitFor, act } from '@testing-library/react';
+import { ProviderStateStore } from '../provider';
+import { useDecide } from './useDecide';
+import { useDecideForKeys } from './useDecideForKeys';
+import { useDecideAll } from './useDecideAll';
+import { createMockUserContext, createMockClient, createWrapper, createProviderWrapper } from './testUtils';
+import type { OptimizelyDecision, Client, OptimizelyUserContext } from '@optimizely/optimizely-sdk';
+
+function createHoldoutDecision(overrides: Partial<OptimizelyDecision> = {}): OptimizelyDecision {
+  return {
+    variationKey: 'holdout_variation',
+    enabled: false,
+    variables: {},
+    ruleKey: 'holdout_rule',
+    flagKey: 'flag_with_holdout',
+    userContext: {} as OptimizelyUserContext,
+    reasons: ['User is in holdout group "global_holdout".'],
+    ...overrides,
+  };
+}
+
+describe('useDecide – holdout exclusion behavior', () => {
+  let store: ProviderStateStore;
+  let mockClient: Client;
+
+  beforeEach(() => {
+    vi.clearAllMocks();
+    store = new ProviderStateStore();
+    mockClient = createMockClient(true);
+  });
+
+  it('should surface TD decision when exclude_targeted_deliveries=true and TD rule applies', () => {
+    const tdDecision = createHoldoutDecision({
+      variationKey: 'td_variation',
+      enabled: true,
+      ruleKey: 'targeted_delivery_rule',
+      reasons: [
+        'User meets audience conditions for holdout "global_holdout".',
+        "Holdout 'global_holdout' has excludeTargetedDeliveries enabled, continuing to rollout evaluation.",
+        'User meets audience conditions for targeted delivery.',
+      ],
+    });
+
+    const mockUserContext = createMockUserContext({
+      decide: vi.fn().mockReturnValue(tdDecision),
+    });
+    store.setUserContext(mockUserContext);
+
+    const wrapper = createWrapper(store, mockClient);
+    const { result } = renderHook(() => useDecide('flag_with_holdout'), { wrapper });
+
+    expect(result.current.isLoading).toBe(false);
+    expect(result.current.decision?.variationKey).toBe('td_variation');
+    expect(result.current.decision?.enabled).toBe(true);
+    expect(result.current.decision?.ruleKey).toBe('targeted_delivery_rule');
+    expect(result.current.decision?.reasons).toContain(
+      "Holdout 'global_holdout' has excludeTargetedDeliveries enabled, continuing to rollout evaluation."
+    );
+    expect(result.current.decision?.reasons).toContain('User meets audience conditions for targeted delivery.');
+  });
+
+  it('should include bypass reason between audience evaluation and rollout evaluation', () => {
+    const bypassDecision = createHoldoutDecision({
+      variationKey: 'rollout_variation',
+      enabled: true,
+      ruleKey: 'rollout_rule',
+      reasons: [
+        'User meets audience conditions for holdout "test_holdout".',
+        "Holdout 'test_holdout' has excludeTargetedDeliveries enabled, continuing to rollout evaluation.",
+        'User bucketed into rollout rule.',
+      ],
+    });
+
+    const mockUserContext = createMockUserContext({
+      decide: vi.fn().mockReturnValue(bypassDecision),
+    });
+    store.setUserContext(mockUserContext);
+
+    const wrapper = createWrapper(store, mockClient);
+    const { result } = renderHook(() => useDecide('flag_with_holdout'), { wrapper });
+
+    const reasons = result.current.decision?.reasons ?? [];
+    const audienceIdx = reasons.findIndex((r: string) => r.includes('meets audience conditions for holdout'));
+    const bypassIdx = reasons.findIndex((r: string) => r.includes('excludeTargetedDeliveries enabled'));
+    const rolloutIdx = reasons.findIndex((r: string) => r.includes('bucketed into rollout'));
+
+    expect(audienceIdx).toBeGreaterThanOrEqual(0);
+    expect(bypassIdx).toBeGreaterThan(audienceIdx);
+    expect(rolloutIdx).toBeGreaterThan(bypassIdx);
+  });
+
+  it('should surface holdout decision with impression event dispatched', () => {
+    const holdoutDecision = createHoldoutDecision({
+      variationKey: 'holdout_variation',
+      enabled: false,
+      reasons: ['User is in holdout group "global_holdout".', 'Holdout impression event dispatched.'],
+    });
+
+    const mockUserContext = createMockUserContext({
+      decide: vi.fn().mockReturnValue(holdoutDecision),
+    });
+    store.setUserContext(mockUserContext);
+
+    const wrapper = createWrapper(store, mockClient);
+    const { result } = renderHook(() => useDecide('flag_with_holdout'), { wrapper });
+
+    expect(result.current.isLoading).toBe(false);
+    expect(result.current.decision?.enabled).toBe(false);
+    expect(result.current.decision?.reasons).toContain('Holdout impression event dispatched.');
+  });
+
+  it('should surface holdout decision when exclude_targeted_deliveries=false', () => {
+    const holdoutDecision = createHoldoutDecision({
+      reasons: ['User is in holdout group "global_holdout".', 'Holdout applies to targeted delivery rules.'],
+    });
+
+    const mockUserContext = createMockUserContext({
+      decide: vi.fn().mockReturnValue(holdoutDecision),
+    });
+    store.setUserContext(mockUserContext);
+
+    const wrapper = createWrapper(store, mockClient);
+    const { result } = renderHook(() => useDecide('flag_with_holdout'), { wrapper });
+
+    expect(result.current.isLoading).toBe(false);
+    expect(result.current.decision?.variationKey).toBe('holdout_variation');
+    expect(result.current.decision?.enabled).toBe(false);
+    expect(result.current.decision?.reasons).toContain('User is in holdout group "global_holdout".');
+  });
+
+  it('should surface holdout decision when holdout applies to A/B test rule', () => {
+    const holdoutDecision = createHoldoutDecision({
+      reasons: ['User is in holdout group "global_holdout".', 'Holdout applies to experiment rule "ab_test_rule".'],
+    });
+
+    const mockUserContext = createMockUserContext({
+      decide: vi.fn().mockReturnValue(holdoutDecision),
+    });
+    store.setUserContext(mockUserContext);
+
+    const wrapper = createWrapper(store, mockClient);
+    const { result } = renderHook(() => useDecide('flag_with_holdout'), { wrapper });
+
+    expect(result.current.isLoading).toBe(false);
+    expect(result.current.decision?.variationKey).toBe('holdout_variation');
+    expect(result.current.decision?.enabled).toBe(false);
+    expect(result.current.decision?.reasons).toContain('Holdout applies to experiment rule "ab_test_rule".');
+  });
+});
+
+describe('useDecideForKeys – holdout exclusion behavior', () => {
+  let store: ProviderStateStore;
+  let mockClient: Client;
+
+  beforeEach(() => {
+    vi.clearAllMocks();
+    store = new ProviderStateStore();
+    mockClient = createMockClient(true);
+  });
+
+  it('should surface holdout decisions for multiple flags with different holdout outcomes', () => {
+    const decisions: Record<string, OptimizelyDecision> = {
+      flag_holdout_applied: createHoldoutDecision({
+        flagKey: 'flag_holdout_applied',
+        variationKey: 'holdout_variation',
+        enabled: false,
+        reasons: ['User is in holdout group "global_holdout".'],
+      }),
+      flag_holdout_excluded: createHoldoutDecision({
+        flagKey: 'flag_holdout_excluded',
+        variationKey: 'td_variation',
+        enabled: true,
+        ruleKey: 'targeted_delivery_rule',
+        reasons: ['User excluded from holdout "global_holdout" for targeted delivery rule.'],
+      }),
+    };
+
+    const mockUserContext = createMockUserContext({
+      decideForKeys: vi.fn().mockReturnValue(decisions),
+    });
+    store.setUserContext(mockUserContext);
+
+    const wrapper = createWrapper(store, mockClient);
+    const { result } = renderHook(() => useDecideForKeys(['flag_holdout_applied', 'flag_holdout_excluded']), {
+      wrapper,
+    });
+
+    expect(result.current.isLoading).toBe(false);
+    expect(result.current.decisions['flag_holdout_applied'].enabled).toBe(false);
+    expect(result.current.decisions['flag_holdout_applied'].variationKey).toBe('holdout_variation');
+    expect(result.current.decisions['flag_holdout_excluded'].enabled).toBe(true);
+    expect(result.current.decisions['flag_holdout_excluded'].variationKey).toBe('td_variation');
+  });
+});
+
+describe('useDecideAll – holdout exclusion behavior', () => {
+  let store: ProviderStateStore;
+  let mockClient: Client;
+
+  beforeEach(() => {
+    vi.clearAllMocks();
+    store = new ProviderStateStore();
+    mockClient = createMockClient(true);
+  });
+
+  it('should surface holdout decisions across all flags', () => {
+    const allDecisions: Record<string, OptimizelyDecision> = {
+      flag_no_holdout: {
+        variationKey: 'control',
+        enabled: true,
+        variables: {},
+        ruleKey: 'ab_test',
+        flagKey: 'flag_no_holdout',
+        userContext: {} as OptimizelyUserContext,
+        reasons: [],
+      },
+      flag_in_holdout: createHoldoutDecision({
+        flagKey: 'flag_in_holdout',
+        reasons: ['User is in holdout group "global_holdout".'],
+      }),
+    };
+
+    const mockUserContext = createMockUserContext({
+      decideAll: vi.fn().mockReturnValue(allDecisions),
+    });
+    store.setUserContext(mockUserContext);
+
+    const wrapper = createWrapper(store, mockClient);
+    const { result } = renderHook(() => useDecideAll(), { wrapper });
+
+    expect(result.current.isLoading).toBe(false);
+    expect(result.current.decisions['flag_no_holdout'].enabled).toBe(true);
+    expect(result.current.decisions['flag_in_holdout'].enabled).toBe(false);
+    expect(result.current.decisions['flag_in_holdout'].reasons).toContain('User is in holdout group "global_holdout".');
+  });
+});
+
+describe('useDecide – holdout with config update', () => {
+  it('should reflect updated holdout decision after OPTIMIZELY_CONFIG_UPDATE', async () => {
+    const initialDecision = createHoldoutDecision({
+      variationKey: 'holdout_variation',
+      enabled: false,
+      reasons: ['User is in holdout group "global_holdout".'],
+    });
+
+    const mockUserContext = createMockUserContext({
+      decide: vi.fn().mockReturnValue(initialDecision),
+    });
+
+    const { wrapper, fireConfigUpdate } = createProviderWrapper(mockUserContext);
+    const { result } = renderHook(() => useDecide('flag_with_holdout'), { wrapper });
+
+    await waitFor(() => {
+      expect(result.current.isLoading).toBe(false);
+    });
+
+    expect(result.current.decision?.variationKey).toBe('holdout_variation');
+    expect(result.current.decision?.enabled).toBe(false);
+
+    const updatedDecision = createHoldoutDecision({
+      variationKey: 'td_variation',
+      enabled: true,
+      ruleKey: 'targeted_delivery_rule',
+      reasons: ['Holdout removed. User bucketed into targeted delivery.'],
+    });
+    (mockUserContext.decide as ReturnType<typeof vi.fn>).mockReturnValue(updatedDecision);
+
+    await act(async () => {
+      fireConfigUpdate();
+    });
+
+    expect(result.current.decision?.variationKey).toBe('td_variation');
+    expect(result.current.decision?.enabled).toBe(true);
+  });
+});