diff --git a/packages/lib/__tests__/compilerRuntime.spec.ts b/packages/lib/__tests__/compilerRuntime.spec.ts
new file mode 100644
index 00000000..627caaca
--- /dev/null
+++ b/packages/lib/__tests__/compilerRuntime.spec.ts
@@ -0,0 +1,209 @@
+import { describe, expect, it } from 'vitest'
+
+/**
+ * These functions are defined in remote-production.ts and used to patch
+ * compiler-runtime chunks at build time. We replicate them here to test
+ * in isolation without a full Rollup build.
+ */
+
+// --- Replicated from remote-production.ts ---
+
+const findImportSharedExportName = (code: string): string | null => {
+  const unminifiedExport = /export\s*\{[^}]*\bas\s+importShared\b[^}]*\}/
+  if (unminifiedExport.test(code)) {
+    return 'importShared'
+  }
+
+  const asyncFnRe = /async\s+function\s+(\w+)\s*\(\s*(\w+)/g
+  let fnMatch: RegExpExecArray | null
+
+  while ((fnMatch = asyncFnRe.exec(code)) !== null) {
+    const window = code.substring(
+      fnMatch.index,
+      Math.min(fnMatch.index + 300, code.length)
+    )
+    if (window.includes('moduleCache') || window.includes('Promise')) {
+      const internalName = fnMatch[1]!
+
+      const exportRe = new RegExp(
+        `export\\s*\\{[^}]*\\b${internalName}\\s+as\\s+(\\w+)`
+      )
+      const exportMatch = exportRe.exec(code)
+      if (exportMatch) {
+        return exportMatch[1]!
+      }
+
+      const directExportRe = new RegExp(
+        `export\\s*\\{[^}]*\\b${internalName}\\b`
+      )
+      if (directExportRe.test(code)) {
+        return internalName
+      }
+    }
+  }
+
+  return null
+}
+
+const computeRelativePath = (from: string, to: string): string => {
+  const fromParts = from.split('/')
+  const toParts = to.split('/')
+
+  fromParts.pop()
+
+  let common = 0
+  while (
+    common < fromParts.length &&
+    common < toParts.length &&
+    fromParts[common] === toParts[common]
+  ) {
+    common++
+  }
+
+  const ups = fromParts.length - common
+  const remaining = toParts.slice(common)
+  const prefix = ups > 0 ? '../'.repeat(ups) : './'
+
+  return prefix + remaining.join('/')
+}
+
+const patchCompilerRuntime = (
+  code: string,
+  federationImportFile: string,
+  runtimeFile: string,
+  importSharedName: string
+): string => {
+  if (!code.includes('useMemoCache') || !code.includes('export{')) {
+    return code
+  }
+
+  const relPath = computeRelativePath(runtimeFile, federationImportFile)
+
+  return [
+    `import{${importSharedName} as __s}from"${relPath}";`,
+    `var __react=await __s("react");`,
+    `var __internals=__react.__CLIENT_INTERNALS_DO_NOT_USE_OR_WARN_USERS_THEY_CANNOT_UPGRADE;`,
+    `var __obj={c:function(n){return __internals.H.useMemoCache(n)}};`,
+    `export{__obj as c};`
+  ].join('')
+}
+
+// --- Tests ---
+
+describe('findImportSharedExportName', () => {
+  it('should detect unminified importShared export', () => {
+    const code = `async function importShared(name, shareScope) {
+      return moduleCache[name] ? new Promise((r) => r(moduleCache[name])) : null;
+    }
+    export{importShared, getSharedFromRuntime as importSharedRuntime}`
+
+    expect(findImportSharedExportName(code)).toBe('importShared')
+  })
+
+  it('should detect minified importShared export (renamed)', () => {
+    const code = `async function xe(e,t="default"){return moduleCache[e]?new Promise((r)=>r(moduleCache[e])):null}export{xe as i,ye as j}`
+
+    expect(findImportSharedExportName(code)).toBe('i')
+  })
+
+  it('should detect direct export (not renamed)', () => {
+    const code = `async function myImport(n,s="default"){return moduleCache[n]?new Promise((r)=>r(moduleCache[n])):null}export{myImport}`
+
+    expect(findImportSharedExportName(code)).toBe('myImport')
+  })
+
+  it('should return null when no importShared-like function found', () => {
+    const code = `function hello(){return "world"}export{hello}`
+
+    expect(findImportSharedExportName(code)).toBeNull()
+  })
+})
+
+describe('computeRelativePath', () => {
+  it('should compute same-directory path', () => {
+    expect(
+      computeRelativePath(
+        'assets/compiler-runtime-abc.js',
+        'assets/__federation_fn_import-xyz.js'
+      )
+    ).toBe('./__federation_fn_import-xyz.js')
+  })
+
+  it('should compute parent-directory path', () => {
+    expect(
+      computeRelativePath(
+        'assets/chunks/compiler-runtime-abc.js',
+        'assets/__federation_fn_import-xyz.js'
+      )
+    ).toBe('../__federation_fn_import-xyz.js')
+  })
+
+  it('should compute path for files at root level', () => {
+    expect(
+      computeRelativePath(
+        'compiler-runtime-abc.js',
+        '__federation_fn_import-xyz.js'
+      )
+    ).toBe('./__federation_fn_import-xyz.js')
+  })
+})
+
+describe('patchCompilerRuntime', () => {
+  const SAMPLE_CHUNK = `import{r as R}from"./index-XYZ.js";var i={exports:{}},o={};var u;function m(){if(u)return o;u=1;var r=R().__CLIENT_INTERNALS_DO_NOT_USE_OR_WARN_USERS_THEY_CANNOT_UPGRADE;return o.c=function(e){return r.H.useMemoCache(e)},o}var s=m();export{s as c};`
+
+  it('should rewrite compiler-runtime chunk to use importShared', () => {
+    const patched = patchCompilerRuntime(
+      SAMPLE_CHUNK,
+      'assets/__federation_fn_import-xyz.js',
+      'assets/compiler-runtime-abc.js',
+      'importShared'
+    )
+
+    expect(patched).toContain('import{importShared as __s}')
+    expect(patched).toContain('await __s("react")')
+    expect(patched).toContain(
+      '__CLIENT_INTERNALS_DO_NOT_USE_OR_WARN_USERS_THEY_CANNOT_UPGRADE'
+    )
+    expect(patched).toContain('useMemoCache')
+    expect(patched).toContain('export{__obj as c}')
+    // Should NOT contain the original direct import
+    expect(patched).not.toContain('./index-XYZ.js')
+  })
+
+  it('should use correct relative path to federation import chunk', () => {
+    const patched = patchCompilerRuntime(
+      SAMPLE_CHUNK,
+      'assets/__federation_fn_import-xyz.js',
+      'assets/compiler-runtime-abc.js',
+      'i'
+    )
+
+    expect(patched).toContain(
+      'import{i as __s}from"./__federation_fn_import-xyz.js"'
+    )
+  })
+
+  it('should not patch code without useMemoCache', () => {
+    const code = `import{r as R}from"./index.js";export{R as react};`
+    const result = patchCompilerRuntime(
+      code,
+      'assets/__federation_fn_import.js',
+      'assets/some-chunk.js',
+      'importShared'
+    )
+
+    expect(result).toBe(code)
+  })
+
+  it('should not patch code without export statement', () => {
+    const code = `var r = React.__CLIENT_INTERNALS_DO_NOT_USE_OR_WARN_USERS_THEY_CANNOT_UPGRADE; r.H.useMemoCache(1);`
+    const result = patchCompilerRuntime(
+      code,
+      'assets/__federation_fn_import.js',
+      'assets/some-chunk.js',
+      'importShared'
+    )
+
+    expect(result).toBe(code)
+  })
+})
diff --git a/packages/lib/__tests__/flattenModule.spec.ts b/packages/lib/__tests__/flattenModule.spec.ts
new file mode 100644
index 00000000..be9915a8
--- /dev/null
+++ b/packages/lib/__tests__/flattenModule.spec.ts
@@ -0,0 +1,155 @@
+import { describe, expect, it } from 'vitest'
+
+/**
+ * flattenModule is a runtime template (federation_fn_import.js) that gets
+ * injected into the build output. We replicate the logic here to unit-test
+ * the Proxy behaviour without requiring a full build.
+ */
+
+// Simulates the moduleCache used by the runtime
+const moduleCache: Record<string, unknown> = {}
+
+// This is the patched flattenModule (Proxy-based)
+const flattenModule = (module: any, name: string) => {
+  if (typeof module.default === 'function') {
+    Object.keys(module).forEach((key) => {
+      if (key !== 'default') {
+        module.default[key] = module[key]
+      }
+    })
+    moduleCache[name] = module.default
+    return module.default
+  }
+  if (module.default) {
+    const originalModule = module
+    module = new Proxy(module.default, {
+      get(target, prop) {
+        if (prop !== 'default' && prop in originalModule)
+          return originalModule[prop]
+        return target[prop]
+      },
+      has(target, prop) {
+        return prop in originalModule || prop in target
+      },
+      ownKeys(target) {
+        const keys = new Set([
+          ...Reflect.ownKeys(target),
+          ...Reflect.ownKeys(originalModule)
+        ])
+        keys.delete('default')
+        return [...keys]
+      }
+    })
+  }
+  moduleCache[name] = module
+  return module
+}
+
+describe('flattenModule — Proxy preserves live bindings', () => {
+  it('should preserve mutable state on default export (React hooks dispatcher pattern)', () => {
+    // Simulates React's module structure: __CLIENT_INTERNALS...H is null at
+    // load time and only set during render.
+    const internals = { H: null as (() => void) | null }
+    const reactModule = {
+      // eslint-disable-next-line @typescript-eslint/no-empty-function
+      default: { __INTERNALS: internals, createElement: () => {} },
+      __esModule: true
+    }
+
+    const result = flattenModule(reactModule, 'react-mutable')
+
+    // At load time, H is null
+    expect(result.__INTERNALS.H).toBeNull()
+
+    // Simulate render — React sets H at runtime
+    internals.H = () => 'dispatcher active'
+
+    // The Proxy should reflect the live value, NOT a snapshot
+    expect(result.__INTERNALS.H).not.toBeNull()
+    expect(result.__INTERNALS.H!()).toBe('dispatcher active')
+  })
+
+  it('should expose named exports alongside default export properties', () => {
+    const module = {
+      default: { defaultProp: 'from-default' },
+      namedExport: 'from-named',
+      anotherExport: 42
+    }
+
+    const result = flattenModule(module, 'mixed-exports')
+
+    expect(result.defaultProp).toBe('from-default')
+    expect(result.namedExport).toBe('from-named')
+    expect(result.anotherExport).toBe(42)
+  })
+
+  it('should prioritise named exports over default export properties', () => {
+    const module = {
+      default: { shared: 'from-default' },
+      shared: 'from-named'
+    }
+
+    const result = flattenModule(module, 'priority-test')
+
+    // Named export takes precedence (prop in originalModule check)
+    expect(result.shared).toBe('from-named')
+  })
+
+  it('should not expose "default" key in ownKeys', () => {
+    const module = {
+      default: { a: 1 },
+      b: 2
+    }
+
+    const result = flattenModule(module, 'no-default-key')
+    const keys = Reflect.ownKeys(result)
+
+    expect(keys).not.toContain('default')
+    expect(keys).toContain('a')
+    expect(keys).toContain('b')
+  })
+
+  it('should handle function default exports by copying named exports onto it', () => {
+    const fn = () => 'hello'
+    const module = {
+      default: fn,
+      helper: 'util'
+    }
+
+    const result = flattenModule(module, 'fn-default')
+
+    expect(typeof result).toBe('function')
+    expect(result()).toBe('hello')
+    expect(result.helper).toBe('util')
+  })
+
+  it('should not cause infinite recursion (regression: Proxy traps calling themselves)', () => {
+    const module = {
+      default: { value: 'test' },
+      extra: true
+    }
+
+    // This would stack overflow if `module` was used instead of
+    // `originalModule` in the Proxy traps
+    expect(() => {
+      const result = flattenModule(module, 'recursion-guard')
+      // Trigger has trap
+      'value' in result
+      'extra' in result
+      'nonexistent' in result
+      // Trigger ownKeys trap
+      Object.keys(result)
+      Reflect.ownKeys(result)
+    }).not.toThrow()
+  })
+
+  it('should return module as-is when there is no default export', () => {
+    const module = { a: 1, b: 2 }
+
+    const result = flattenModule(module, 'no-default')
+
+    expect(result).toBe(module)
+    expect(result.a).toBe(1)
+    expect(result.b).toBe(2)
+  })
+})
diff --git a/packages/lib/src/prod/remote-production.ts b/packages/lib/src/prod/remote-production.ts
index 3476286b..7aec510f 100644
--- a/packages/lib/src/prod/remote-production.ts
+++ b/packages/lib/src/prod/remote-production.ts
@@ -541,6 +541,58 @@ export function prodRemotePlugin(
     },
 
     generateBundle(options, bundle) {
+      // ---------------------------------------------------------------
+      // Patch: compiler-runtime chunk (remote builds only)
+      //
+      // react/compiler-runtime is bundled as a separate chunk that
+      // imports React directly (./index-*.js) instead of going through
+      // importShared("react"). In federated mode the host provides
+      // React via the share scope — the local chunk is a DIFFERENT
+      // instance where the hooks dispatcher is never initialised.
+      //
+      // Fix: Rewrite the compiler-runtime chunk to obtain React via
+      // importShared("react") (top-level await), ensuring it uses the
+      // same React instance as the rest of the federation.
+      // ---------------------------------------------------------------
+      if (builderInfo.isRemote) {
+        let federationImportFileName: string | null = null
+        let importSharedExportName: string | null = null
+
+        // First pass: find the federation import chunk
+        for (const fileName in bundle) {
+          const chunk = bundle[fileName]
+          if (chunk.type !== 'chunk') continue
+          if (fileName.includes('__federation_fn_import')) {
+            federationImportFileName = fileName
+            importSharedExportName = findImportSharedExportName(chunk.code)
+          }
+        }
+
+        // Second pass: patch compiler-runtime chunks
+        if (federationImportFileName && importSharedExportName) {
+          for (const fileName in bundle) {
+            const chunk = bundle[fileName]
+            if (chunk.type !== 'chunk') continue
+            if (
+              fileName.includes('compiler-runtime') &&
+              chunk.code.includes(
+                '__CLIENT_INTERNALS_DO_NOT_USE_OR_WARN_USERS_THEY_CANNOT_UPGRADE'
+              )
+            ) {
+              const patched = patchCompilerRuntime(
+                chunk.code,
+                federationImportFileName,
+                fileName,
+                importSharedExportName
+              )
+              if (patched !== chunk.code) {
+                chunk.code = patched
+              }
+            }
+          }
+        }
+      }
+
       const preloadSharedReg = parsedOptions.prodShared
         .filter((shareInfo) => shareInfo[1].modulePreload)
         .map(
@@ -634,4 +686,102 @@ export function prodRemotePlugin(
   }
 }
 
+// ---------------------------------------------------------------------------
+// compiler-runtime patch helpers
+// ---------------------------------------------------------------------------
+
+/**
+ * Rewrites the compiler-runtime chunk to obtain React through
+ * importShared("react") instead of a direct bundled import.
+ */
+function patchCompilerRuntime(
+  code: string,
+  federationImportFile: string,
+  runtimeFile: string,
+  importSharedName: string
+): string {
+  if (!code.includes('useMemoCache') || !code.includes('export{')) {
+    return code
+  }
+
+  const relPath = computeRelativePath(runtimeFile, federationImportFile)
+
+  return [
+    `import{${importSharedName} as __s}from"${relPath}";`,
+    `var __react=await __s("react");`,
+    `var __internals=__react.__CLIENT_INTERNALS_DO_NOT_USE_OR_WARN_USERS_THEY_CANNOT_UPGRADE;`,
+    `var __obj={c:function(n){return __internals.H.useMemoCache(n)}};`,
+    `export{__obj as c};`
+  ].join('')
+}
+
+/**
+ * Finds the exported name for importShared in the federation import chunk.
+ * Handles both unminified (`export{... as importShared}`) and minified forms.
+ */
+function findImportSharedExportName(code: string): string | null {
+  // Unminified: export{... as importShared ...}
+  const unminifiedExport = /export\s*\{[^}]*\bas\s+importShared\b[^}]*\}/
+  if (unminifiedExport.test(code)) {
+    return 'importShared'
+  }
+
+  // Minified: find the async function that accesses moduleCache/Promise,
+  // then look up its export alias.
+  const asyncFnRe = /async\s+function\s+(\w+)\s*\(\s*(\w+)/g
+  let fnMatch: RegExpExecArray | null
+
+  while ((fnMatch = asyncFnRe.exec(code)) !== null) {
+    const window = code.substring(
+      fnMatch.index,
+      Math.min(fnMatch.index + 300, code.length)
+    )
+    if (window.includes('moduleCache') || window.includes('Promise')) {
+      const internalName = fnMatch[1]!
+
+      const exportRe = new RegExp(
+        `export\\s*\\{[^}]*\\b${internalName}\\s+as\\s+(\\w+)`
+      )
+      const exportMatch = exportRe.exec(code)
+      if (exportMatch) {
+        return exportMatch[1]!
+      }
+
+      const directExportRe = new RegExp(
+        `export\\s*\\{[^}]*\\b${internalName}\\b`
+      )
+      if (directExportRe.test(code)) {
+        return internalName
+      }
+    }
+  }
+
+  return null
+}
+
+/**
+ * Computes the relative import path between two bundle file names.
+ */
+function computeRelativePath(from: string, to: string): string {
+  const fromParts = from.split('/')
+  const toParts = to.split('/')
+
+  fromParts.pop()
+
+  let common = 0
+  while (
+    common < fromParts.length &&
+    common < toParts.length &&
+    fromParts[common] === toParts[common]
+  ) {
+    common++
+  }
+
+  const ups = fromParts.length - common
+  const remaining = toParts.slice(common)
+  const prefix = ups > 0 ? '../'.repeat(ups) : './'
+
+  return prefix + remaining.join('/')
+}
+
 export { sharedFileName2Prop }