diff --git a/e2e/11-display-toggle-regression.yaml b/e2e/11-display-toggle-regression.yaml
index f4a65370..aaebb1fa 100644
--- a/e2e/11-display-toggle-regression.yaml
+++ b/e2e/11-display-toggle-regression.yaml
@@ -5,13 +5,19 @@ name: Display Toggle Gesture Regression
 # Navigate to E2E test page and reset defaults
 - runFlow: helpers/navigate-to-e2e.yaml
 # Baseline swipe: ensure gestures work before toggling display
-- swipe:
-    start: "85%, 22%"
-    end: "15%, 22%"
-    duration: 500
-
-- waitForAnimationToEnd:
-    timeout: 3000
+- repeat:
+    while:
+      notVisible: "Current Index: 1"
+    times: 3
+    commands:
+      - tapOn:
+          id: "e2e-carousel"
+      - swipe:
+          start: "85%, 22%"
+          end: "15%, 22%"
+          duration: 500
+      - waitForAnimationToEnd:
+          timeout: 3000
 
 - assertVisible: "Current Index: 1"
 
@@ -33,12 +39,18 @@ name: Display Toggle Gesture Regression
 - assertVisible: "Display: flex"
 
 # If issue exists, this swipe won't change index anymore
-- swipe:
-    start: "85%, 22%"
-    end: "15%, 22%"
-    duration: 500
-
-- waitForAnimationToEnd:
-    timeout: 3000
+- repeat:
+    while:
+      notVisible: "Current Index: 2"
+    times: 3
+    commands:
+      - tapOn:
+          id: "e2e-carousel"
+      - swipe:
+          start: "85%, 22%"
+          end: "15%, 22%"
+          duration: 500
+      - waitForAnimationToEnd:
+          timeout: 3000
 
 - assertVisible: "Current Index: 2"
diff --git a/src/components/Carousel.test.tsx b/src/components/Carousel.test.tsx
index a2f9d867..af6a2639 100644
--- a/src/components/Carousel.test.tsx
+++ b/src/components/Carousel.test.tsx
@@ -373,6 +373,45 @@ describe("Test the real swipe behavior of Carousel to ensure it's working as exp
     }
   });
 
+  it("display toggle regression #885: should keep swipe working after hide/show layout cycle", async () => {
+    const progress = { current: 0 };
+    const Wrapper = createCarousel(progress);
+    const { getByTestId } = render(<Wrapper style={{ width: slideWidth, height: slideHeight }} />);
+    await verifyInitialRender(getByTestId);
+
+    const initialPanCount = mockPan.mock.calls.length;
+    expect(initialPanCount).toBeGreaterThan(0);
+
+    swipeToLeftOnce();
+    await waitFor(() => expect(progress.current).toBe(1));
+
+    const contentContainer = getByTestId("carousel-content-container");
+    expect(typeof contentContainer.props.onLayout).toBe("function");
+
+    act(() => {
+      contentContainer.props.onLayout?.({
+        nativeEvent: { layout: { width: 0, height: 0 } },
+      } as any);
+    });
+
+    act(() => {
+      contentContainer.props.onLayout?.({
+        nativeEvent: { layout: { width: slideWidth, height: slideHeight } },
+      } as any);
+    });
+
+    act(() => {
+      jest.runOnlyPendingTimers();
+    });
+
+    await waitFor(() => {
+      expect(mockPan.mock.calls.length).toBeGreaterThan(initialPanCount);
+    });
+
+    swipeToLeftOnce();
+    await waitFor(() => expect(progress.current).toBe(2));
+  });
+
   it("`loop` prop: should swipe back to the first item when loop is true", async () => {
     const progress = { current: 0 };
     const Wrapper = createCarousel(progress);
diff --git a/src/components/ScrollViewGesture.tsx b/src/components/ScrollViewGesture.tsx
index 81881d86..e3d41042 100644
--- a/src/components/ScrollViewGesture.tsx
+++ b/src/components/ScrollViewGesture.tsx
@@ -3,6 +3,7 @@ import React, { useCallback } from "react";
 import type { LayoutChangeEvent, StyleProp, ViewStyle } from "react-native";
 import type {
   GestureStateChangeEvent,
+  PanGesture,
   PanGestureHandlerEventPayload,
 } from "react-native-gesture-handler";
 import { GestureDetector } from "react-native-gesture-handler";
@@ -70,6 +71,7 @@ const IScrollViewGesture: React.FC<PropsWithChildren<Props>> = (props) => {
   } = props;
 
   const maxPage = dataLength;
+  const [gestureEpoch, bumpGestureEpoch] = React.useReducer((value: number) => value + 1, 0);
   const isHorizontal = useDerivedValue(() => !vertical, [vertical]);
   const max = useSharedValue(0);
   const panOffset = useSharedValue<number | undefined>(undefined); // set to undefined when not actively in a pan gesture
@@ -77,6 +79,7 @@ const IScrollViewGesture: React.FC<PropsWithChildren<Props>> = (props) => {
   const validStart = useSharedValue(false);
   const scrollEndTranslation = useSharedValue(0);
   const scrollEndVelocity = useSharedValue(0);
+  const layoutWasHidden = useSharedValue(false);
   const containerRef = useAnimatedRef<Animated.View>();
   const maxScrollDistancePerSwipeIsSet = typeof maxScrollDistancePerSwipe === "number";
   const minScrollDistancePerSwipeIsSet = typeof minScrollDistancePerSwipe === "number";
@@ -479,8 +482,15 @@ const IScrollViewGesture: React.FC<PropsWithChildren<Props>> = (props) => {
     ]
   );
 
+  const onConfigurePanGestureProxy = React.useCallback(
+    (gesture: PanGesture) => {
+      onConfigurePanGesture?.(gesture);
+    },
+    [onConfigurePanGesture, gestureEpoch]
+  );
+
   const gesture = usePanGestureProxy({
-    onConfigurePanGesture,
+    onConfigurePanGesture: onConfigurePanGestureProxy,
     onGestureStart,
     onGestureUpdate,
     onGestureEnd,
@@ -495,6 +505,13 @@ const IScrollViewGesture: React.FC<PropsWithChildren<Props>> = (props) => {
       const measuredHeight = e.nativeEvent.layout.height;
       const measuredSize = Math.round((vertical ? measuredHeight : measuredWidth) || 0);
 
+      if (measuredSize <= 0) {
+        layoutWasHidden.value = true;
+      } else if (layoutWasHidden.value) {
+        layoutWasHidden.value = false;
+        scheduleOnRN(bumpGestureEpoch);
+      }
+
       if (!sizeExplicit && measuredSize > 0) {
         const current = resolvedSize.value ?? 0;
         if (Math.abs(current - measuredSize) > 0) {
@@ -509,7 +526,15 @@ const IScrollViewGesture: React.FC<PropsWithChildren<Props>> = (props) => {
         height: measuredHeight,
       });
     },
-    [updateContainerSize, resolvedSize, sizePhase, vertical, sizeExplicit]
+    [
+      updateContainerSize,
+      resolvedSize,
+      sizePhase,
+      vertical,
+      sizeExplicit,
+      layoutWasHidden,
+      bumpGestureEpoch,
+    ]
   );
 
   return (