diff --git a/lib/core/decision_service/index.ts b/lib/core/decision_service/index.ts
index 4b26f3804..c6b356b4d 100644
--- a/lib/core/decision_service/index.ts
+++ b/lib/core/decision_service/index.ts
@@ -29,6 +29,7 @@ import {
   getVariationIdFromExperimentAndVariationKey,
   getVariationFromId,
   getVariationKeyFromId,
+  getHoldoutsForRule,
   isActive,
   ProjectConfig,
 } from '../../project_config/project_config';
@@ -943,11 +944,11 @@ export class DecisionService {
       });
     }
 
-    // all global holouts should be evaluated for all flags
-    // global holdouts are available in configObj.holdouts
-    const { holdouts } = configObj;
+    // Check global holdouts first (holdouts where includedRules == null).
+    // Global holdouts apply to all rules and are evaluated at the flag level.
+    const globalHoldouts = configObj.globalHoldouts || [];
 
-    for (const holdout of holdouts) {
+    for (const holdout of globalHoldouts) {
       const holdoutDecision = this.getVariationForHoldout(configObj, holdout, user);
       decideReasons.push(...holdoutDecision.reasons);
 
@@ -1562,6 +1563,21 @@ export class DecisionService {
         reasons: decideReasons,
       });
     }
+
+    // Check local holdouts targeting this specific experiment rule.
+    // Local holdouts are checked after forced decisions but before regular bucketing.
+    const localHoldouts = getHoldoutsForRule(configObj, rule.id);
+    for (const holdout of localHoldouts) {
+      const holdoutDecision = this.getVariationForHoldout(configObj, holdout, user);
+      decideReasons.push(...holdoutDecision.reasons);
+      if (holdoutDecision.result.variation) {
+        return Value.of(op, {
+          result: { variationKey: holdoutDecision.result.variation.key },
+          reasons: decideReasons,
+        });
+      }
+    }
+
     const decisionVariationValue = this.resolveVariation(op, configObj, rule, user, decideOptions, userProfileTracker);
 
     return decisionVariationValue.then((variationResult) => {
@@ -1608,6 +1624,21 @@ export class DecisionService {
       };
     }
 
+    // Check local holdouts targeting this specific delivery rule.
+    // Local holdouts are checked after forced decisions but before audience/bucketing evaluation.
+    const localHoldouts = getHoldoutsForRule(configObj, rule.id);
+    for (const holdout of localHoldouts) {
+      const holdoutDecision = this.getVariationForHoldout(configObj, holdout, user);
+      decideReasons.push(...holdoutDecision.reasons);
+      if (holdoutDecision.result.variation) {
+        return {
+          result: holdoutDecision.result.variation,
+          reasons: decideReasons,
+          skipToEveryoneElse,
+        };
+      }
+    }
+
     const userId = user.getUserId();
     const attributes = user.getAttributes();
     const bucketingId = this.getBucketingId(userId, attributes);
diff --git a/lib/project_config/project_config.spec.ts b/lib/project_config/project_config.spec.ts
index 13c086539..f4a789594 100644
--- a/lib/project_config/project_config.spec.ts
+++ b/lib/project_config/project_config.spec.ts
@@ -414,6 +414,77 @@ describe('createProjectConfig - holdouts', () => {
     expect(configObj.holdouts[0].includedFlags).toEqual([]);
     expect(configObj.holdouts[0].excludedFlags).toEqual([]);
   });
+
+  it('should populate globalHoldouts with holdouts where includedRules is null or undefined', function() {
+    const datafile = getHoldoutDatafile();
+    // holdout_1, holdout_2, holdout_3 all have no includedRules (undefined = global)
+    const configObj = projectConfig.createProjectConfig(JSON.parse(JSON.stringify(datafile)));
+
+    expect(configObj.globalHoldouts).toHaveLength(3);
+    expect(configObj.ruleHoldoutsMap).toEqual({});
+  });
+
+  it('should classify holdout as local when includedRules is an array', function() {
+    const datafile = getHoldoutDatafile();
+    datafile.holdouts[0].includedRules = ['rule_id_1', 'rule_id_2'];
+
+    const configObj = projectConfig.createProjectConfig(JSON.parse(JSON.stringify(datafile)));
+
+    // holdout_1 is now local (has includedRules array)
+    expect(configObj.globalHoldouts).toHaveLength(2); // holdout_2, holdout_3
+    expect(configObj.ruleHoldoutsMap['rule_id_1']).toHaveLength(1);
+    expect(configObj.ruleHoldoutsMap['rule_id_2']).toHaveLength(1);
+  });
+
+  it('should classify holdout as local when includedRules is empty array', function() {
+    const datafile = getHoldoutDatafile();
+    datafile.holdouts[0].includedRules = []; // empty array = local, targets no rules
+
+    const configObj = projectConfig.createProjectConfig(JSON.parse(JSON.stringify(datafile)));
+
+    // holdout_1 is local but has no rules to target
+    expect(configObj.globalHoldouts).toHaveLength(2); // holdout_2, holdout_3
+    expect(configObj.ruleHoldoutsMap).toEqual({});
+  });
+
+  it('should support multiple holdouts targeting the same rule', function() {
+    const datafile = getHoldoutDatafile();
+    datafile.holdouts[0].includedRules = ['rule_shared'];
+    datafile.holdouts[1].includedRules = ['rule_shared'];
+
+    const configObj = projectConfig.createProjectConfig(JSON.parse(JSON.stringify(datafile)));
+
+    expect(configObj.ruleHoldoutsMap['rule_shared']).toHaveLength(2);
+    expect(configObj.globalHoldouts).toHaveLength(1); // only holdout_3
+  });
+
+  it('getHoldoutsForRule returns local holdouts for a rule', function() {
+    const datafile = getHoldoutDatafile();
+    datafile.holdouts[0].includedRules = ['rule_a'];
+    datafile.holdouts[1].includedRules = ['rule_a', 'rule_b'];
+
+    const configObj = projectConfig.createProjectConfig(JSON.parse(JSON.stringify(datafile)));
+
+    const ruleAHoldouts = projectConfig.getHoldoutsForRule(configObj, 'rule_a');
+    expect(ruleAHoldouts).toHaveLength(2);
+
+    const ruleBHoldouts = projectConfig.getHoldoutsForRule(configObj, 'rule_b');
+    expect(ruleBHoldouts).toHaveLength(1);
+
+    const ruleCHoldouts = projectConfig.getHoldoutsForRule(configObj, 'rule_c');
+    expect(ruleCHoldouts).toHaveLength(0);
+  });
+
+  it('backward compatibility: old datafiles without includedRules treat holdouts as global', function() {
+    const datafile = getHoldoutDatafile();
+    // Simulating old datafile: holdouts have no includedRules field at all
+    datafile.holdouts.forEach((h: any) => delete h.includedRules);
+
+    const configObj = projectConfig.createProjectConfig(JSON.parse(JSON.stringify(datafile)));
+
+    expect(configObj.globalHoldouts).toHaveLength(3);
+    expect(configObj.ruleHoldoutsMap).toEqual({});
+  });
 });
 
 describe('getExperimentId', () => {
diff --git a/lib/project_config/project_config.ts b/lib/project_config/project_config.ts
index 9f966549b..fbf8afa59 100644
--- a/lib/project_config/project_config.ts
+++ b/lib/project_config/project_config.ts
@@ -113,6 +113,8 @@ export interface ProjectConfig {
   odpIntegrationConfig: OdpIntegrationConfig;
   holdouts: Holdout[];
   holdoutIdMap?: { [id: string]: Holdout };
+  globalHoldouts: Holdout[];
+  ruleHoldoutsMap: { [ruleId: string]: Holdout[] };
 }
 
 const EXPERIMENT_RUNNING_STATUS = 'Running';
@@ -386,6 +388,8 @@ const getEveryoneElseVariation = function(
 const parseHoldoutsConfig = (projectConfig: ProjectConfig): void => {
   projectConfig.holdouts = projectConfig.holdouts || [];
   projectConfig.holdoutIdMap = keyBy(projectConfig.holdouts, 'id');
+  projectConfig.globalHoldouts = [];
+  projectConfig.ruleHoldoutsMap = {};
 
   projectConfig.holdouts.forEach((holdout) => {
 
@@ -396,9 +400,33 @@ const parseHoldoutsConfig = (projectConfig: ProjectConfig): void => {
     holdout.excludedFlags = [];
     holdout.variationKeyMap = keyBy(holdout.variations, 'key');
     assignBy(holdout.variations, 'id', projectConfig.variationIdMap);
+
+    // Classify holdout as global or local based on includedRules field.
+    // If includedRules is null or undefined, the holdout is global (applies to all rules).
+    // If includedRules is an array (even empty), the holdout is local (targets specific rules).
+    if (holdout.includedRules == null) {
+      projectConfig.globalHoldouts.push(holdout);
+    } else {
+      holdout.includedRules.forEach((ruleId) => {
+        if (!projectConfig.ruleHoldoutsMap[ruleId]) {
+          projectConfig.ruleHoldoutsMap[ruleId] = [];
+        }
+        projectConfig.ruleHoldoutsMap[ruleId].push(holdout);
+      });
+    }
   });
 }
 
+/**
+ * Returns holdouts that target a specific rule (local holdouts).
+ * @param {ProjectConfig} projectConfig - The project config
+ * @param {string} ruleId - The rule ID to look up
+ * @returns {Holdout[]} - Array of holdouts targeting this rule
+ */
+export const getHoldoutsForRule = (projectConfig: ProjectConfig, ruleId: string): Holdout[] => {
+  return projectConfig.ruleHoldoutsMap[ruleId] || [];
+}
+
 /**
  * Extract all audience segments used in this audience's conditions
  * @param  {Audience}     audience  Object representing the audience being parsed
@@ -959,6 +987,7 @@ export default {
   getSendFlagDecisionsValue,
   getAudiencesById,
   getAudienceSegments,
+  getHoldoutsForRule,
   eventWithKeyExists,
   isFeatureExperiment,
   toDatafile,
diff --git a/lib/shared_types.ts b/lib/shared_types.ts
index 5fc10498b..b6fa96ada 100644
--- a/lib/shared_types.ts
+++ b/lib/shared_types.ts
@@ -176,6 +176,12 @@ export interface Holdout extends ExperimentCore {
   status: HoldoutStatus;
   includedFlags: string[];
   excludedFlags: string[];
+  /**
+   * List of rule IDs this holdout targets (local holdouts only).
+   * If null or undefined, the holdout is global and applies to all rules.
+   * If an array (even empty), the holdout is local and targets specific rule IDs.
+   */
+  includedRules?: string[] | null;
 }
 
 export function isHoldout(obj: Experiment | Holdout): obj is Holdout {