diff --git a/evaluator/flags/testkit-flags.json b/evaluator/flags/testkit-flags.json
index fb82a03..cd55c18 100644
--- a/evaluator/flags/testkit-flags.json
+++ b/evaluator/flags/testkit-flags.json
@@ -655,6 +655,50 @@
       "targeting": {
         "sem_ver": [{"var": "version"}, "="]
       }
+    },
+    "disabled-boolean-flag": {
+      "state": "DISABLED",
+      "variants": {
+        "on": true,
+        "off": false
+      },
+      "defaultVariant": "on"
+    },
+    "disabled-string-flag": {
+      "state": "DISABLED",
+      "variants": {
+        "greeting": "hi",
+        "parting": "bye"
+      },
+      "defaultVariant": "greeting"
+    },
+    "disabled-integer-flag": {
+      "state": "DISABLED",
+      "variants": {
+        "one": 1,
+        "ten": 10
+      },
+      "defaultVariant": "ten"
+    },
+    "disabled-float-flag": {
+      "state": "DISABLED",
+      "variants": {
+        "tenth": 0.1,
+        "half": 0.5
+      },
+      "defaultVariant": "half"
+    },
+    "disabled-object-flag": {
+      "state": "DISABLED",
+      "variants": {
+        "empty": {},
+        "template": {
+          "showImages": true,
+          "title": "Check out these pics!",
+          "imagesPerPage": 100
+        }
+      },
+      "defaultVariant": "template"
     }
   },
   "$evaluators": {
diff --git a/evaluator/gherkin/disabled.feature b/evaluator/gherkin/disabled.feature
new file mode 100644
index 0000000..5edff08
--- /dev/null
+++ b/evaluator/gherkin/disabled.feature
@@ -0,0 +1,22 @@
+@disabled
+Feature: Evaluator disabled flag evaluation
+
+  # Validates that disabled flags resolve with reason=DISABLED. The evaluator
+  # substitutes the caller-provided default value and omits the variant.
+  # Flags are configured in evaluator/flags/testkit-flags.json.
+  # Relates to: https://github.com/open-feature/flagd/issues/1965
+
+  Scenario Outline: Resolve disabled flag returns reason DISABLED with the default value
+    Given an evaluator
+    And a <type>-flag with key "<key>" and a fallback value "<default>"
+    When the flag was evaluated with details
+    Then the resolved details value should be "<default>"
+    And the reason should be "DISABLED"
+
+    Examples:
+      | key                   | type    | default |
+      | disabled-boolean-flag | Boolean | false   |
+      | disabled-string-flag  | String  | bye     |
+      | disabled-integer-flag | Integer | 1       |
+      | disabled-float-flag   | Float   | 0.1     |
+      | disabled-object-flag  | Object  | {}      |
diff --git a/flagd/Dockerfile b/flagd/Dockerfile
index 70365a0..d22918e 100644
--- a/flagd/Dockerfile
+++ b/flagd/Dockerfile
@@ -1,4 +1,4 @@
-ARG FLAGD_BASE_IMAGE=ghcr.io/open-feature/flagd:v0.15.5
+ARG FLAGD_BASE_IMAGE=ghcr.io/open-feature/flagd:v0.16.0
 ARG TARGETARCH
 
 FROM ${FLAGD_BASE_IMAGE} AS flagd
diff --git a/flags/disabled-flags.json b/flags/disabled-flags.json
new file mode 100644
index 0000000..11ad037
--- /dev/null
+++ b/flags/disabled-flags.json
@@ -0,0 +1,56 @@
+{
+  "flags": {
+    "disabled-boolean-flag": {
+      "state": "DISABLED",
+      "variants": {
+        "on": true,
+        "off": false
+      },
+      "defaultVariant": "on"
+    },
+    "disabled-string-flag": {
+      "state": "DISABLED",
+      "variants": {
+        "greeting": "hi",
+        "parting": "bye"
+      },
+      "defaultVariant": "greeting"
+    },
+    "disabled-integer-flag": {
+      "state": "DISABLED",
+      "variants": {
+        "one": 1,
+        "ten": 10
+      },
+      "defaultVariant": "ten"
+    },
+    "disabled-float-flag": {
+      "state": "DISABLED",
+      "variants": {
+        "tenth": 0.1,
+        "half": 0.5
+      },
+      "defaultVariant": "half"
+    },
+    "disabled-object-flag": {
+      "state": "DISABLED",
+      "variants": {
+        "empty": {},
+        "template": {
+          "showImages": true,
+          "title": "Check out these pics!",
+          "imagesPerPage": 100
+        }
+      },
+      "defaultVariant": "template"
+    },
+    "cross-flagset-flag": {
+      "state": "DISABLED",
+      "variants": {
+        "on": true,
+        "off": false
+      },
+      "defaultVariant": "on"
+    }
+  }
+}
diff --git a/flags/selector-flags.json b/flags/selector-flags.json
index ee054c3..c9afb9a 100644
--- a/flags/selector-flags.json
+++ b/flags/selector-flags.json
@@ -7,6 +7,17 @@
         "bar": "bar"
       },
       "defaultVariant": "foo"
+    },
+    "cross-flagset-flag": {
+      "state": "ENABLED",
+      "variants": {
+        "on": true,
+        "off": false
+      },
+      "defaultVariant": "on"
     }
+  },
+  "metadata": {
+    "flagSetId": "selector-set"
   }
 }
diff --git a/gherkin/disabled.feature b/gherkin/disabled.feature
new file mode 100644
index 0000000..926238f
--- /dev/null
+++ b/gherkin/disabled.feature
@@ -0,0 +1,37 @@
+@disabled @in-process @rpc
+Feature: Disabled flag evaluation
+
+  # Test coverage for disabled flag behavior. A flag with state=DISABLED resolves
+  # successfully with reason=DISABLED; the evaluator substitutes the caller-provided
+  # default value and omits the variant.
+  # Relates to: https://github.com/open-feature/flagd/issues/1965
+
+  Scenario Outline: Evaluating a disabled flag returns reason DISABLED and code default
+    Given an option "cache" of type "CacheType" with value "disabled"
+    And a stable flagd provider
+    And a <type>-flag with key "<key>" and a default value "<default>"
+    When the flag was evaluated with details
+    Then the resolved details value should be "<default>"
+    And the reason should be "DISABLED"
+
+    Examples:
+      | key                   | type    | default |
+      | disabled-boolean-flag | Boolean | false   |
+      | disabled-string-flag  | String  | bye     |
+      | disabled-integer-flag | Integer | 1       |
+      | disabled-float-flag   | Float   | 0.1     |
+      | disabled-object-flag  | Object  | {}      |
+
+  Scenario Outline: Flag disabled in one flag set, enabled in another
+    Given an option "cache" of type "CacheType" with value "disabled"
+    And an option "selector" of type "String" with value "<selector>"
+    And a stable flagd provider
+    And a Boolean-flag with key "cross-flagset-flag" and a default value "false"
+    When the flag was evaluated with details
+    Then the resolved details value should be "<resolved_value>"
+    And the reason should be "<reason>"
+
+    Examples:
+      | selector                     | resolved_value | reason   |
+      | flags/allFlags.json          | false          | DISABLED |
+      | rawflags/selector-flags.json | true           | STATIC   |