diff --git a/runner/arazzo_runner/executor/action_handler.py b/runner/arazzo_runner/executor/action_handler.py
index e3f6cdc..6af4d48 100644
--- a/runner/arazzo_runner/executor/action_handler.py
+++ b/runner/arazzo_runner/executor/action_handler.py
@@ -30,7 +30,7 @@ def __init__(self, source_descriptions: dict[str, Any]):
         """
         self.source_descriptions = source_descriptions
 
-    def determine_next_action(self, step: dict, success: bool, state: ExecutionState) -> dict:
+    def determine_next_action(self, step: dict, success: bool, state: ExecutionState, response: dict | None = None) -> dict:
         """
         Determine the next action based on step success/failure
 
@@ -38,6 +38,7 @@ def determine_next_action(self, step: dict, success: bool, state: ExecutionState
             step: Step definition
             success: Whether the step succeeded
             state: Current execution state
+            response: HTTP response from the step execution (used to evaluate $statusCode criteria)
 
         Returns:
             Dictionary with action type and parameters
@@ -59,7 +60,7 @@ def determine_next_action(self, step: dict, success: bool, state: ExecutionState
                 if "criteria" in action:
                     criteria = action.get("criteria", [])
                     logger.info(f"Action {action_name} has {len(criteria)} criteria")
-                    criteria_met = self._check_action_criteria(criteria, state)
+                    criteria_met = self._check_action_criteria(criteria, state, response)
 
                     if not criteria_met:
                         logger.info(f"Action {action_name} criteria not met, skipping")
@@ -99,7 +100,7 @@ def determine_next_action(self, step: dict, success: bool, state: ExecutionState
                 if "criteria" in action:
                     criteria = action.get("criteria", [])
                     logger.info(f"Failure action {action_name} has {len(criteria)} criteria")
-                    criteria_met = self._check_action_criteria(criteria, state)
+                    criteria_met = self._check_action_criteria(criteria, state, response)
 
                     if not criteria_met:
                         logger.info(f"Failure action {action_name} criteria not met, skipping")
@@ -151,21 +152,24 @@ def determine_next_action(self, step: dict, success: bool, state: ExecutionState
             )
             return {"type": ActionType.END}
 
-    def _check_action_criteria(self, criteria: list[dict], state: ExecutionState) -> bool:
+    def _check_action_criteria(self, criteria: list[dict], state: ExecutionState, response: dict | None = None) -> bool:
         """
         Check if action criteria are met
 
         Args:
             criteria: List of criteria to check
             state: Current execution state
+            response: HTTP response from the step execution (provides $statusCode and $response)
 
         Returns:
             True if all criteria are met, False otherwise
         """
         logger.info(f"Checking {len(criteria)} action criteria")
 
-        # Context for evaluating criteria
-        context = {}
+        # Build evaluation context — populate statusCode and response from the step response
+        # so that conditions like "$statusCode == 200" and "$response.body#/..." resolve correctly.
+        status_code = response.get("status_code") if response else None
+        context = {"statusCode": status_code, "response": response} if response is not None else {}
 
         # Check each criterion
         for i, criterion in enumerate(criteria):
@@ -192,7 +196,7 @@ def _check_action_criteria(self, criteria: list[dict], state: ExecutionState) ->
             # Check criterion based on type
             if criterion_type == "simple":
                 result = ExpressionEvaluator.evaluate_simple_condition(
-                    condition, state, self.source_descriptions, context
+                    condition, state, self.source_descriptions, local_context
                 )
                 if not result:
                     logger.warning(f"Simple condition failed: {condition}")
diff --git a/runner/arazzo_runner/executor/step_executor.py b/runner/arazzo_runner/executor/step_executor.py
index 30571ef..e7f6d31 100644
--- a/runner/arazzo_runner/executor/step_executor.py
+++ b/runner/arazzo_runner/executor/step_executor.py
@@ -261,14 +261,20 @@ def _execute_nested_workflow(self, step: dict, state: ExecutionState) -> dict:
         """
         raise NotImplementedError("Nested workflow execution is handled by the runner")
 
-    def determine_next_action(self, step: dict, success: bool, state: ExecutionState) -> dict:
+    def determine_next_action(self, step: dict, success: bool, state: ExecutionState, response: dict | None = None) -> dict:
         """
         Determine the next action based on step success/failure
 
+        Args:
+            step: Step definition
+            success: Whether the step succeeded
+            state: Current execution state
+            response: HTTP response from the step execution (used to evaluate $statusCode and $response criteria)
+
         Returns:
             action: Dictionary with action type and parameters
         """
-        return self.action_handler.determine_next_action(step, success, state)
+        return self.action_handler.determine_next_action(step, success, state, response)
 
     def execute_operation(
         self,
diff --git a/runner/arazzo_runner/runner.py b/runner/arazzo_runner/runner.py
index 6a186d5..dd6ff8c 100644
--- a/runner/arazzo_runner/runner.py
+++ b/runner/arazzo_runner/runner.py
@@ -503,7 +503,9 @@ def execute_next_step(self, execution_id: str) -> dict[str, Any]:
                     state.workflow_outputs[output_name] = value
 
             # Determine next action
-            next_action = self.step_executor.determine_next_action(next_step, success, state)
+            next_action = self.step_executor.determine_next_action(
+                next_step, success, state, step_result.get("response")
+            )
 
             # Trigger step_complete event
             self._trigger_event(