diff --git a/src/host/config.ts b/src/host/config.ts
index 7f8c339..b5ba68e 100644
--- a/src/host/config.ts
+++ b/src/host/config.ts
@@ -70,6 +70,7 @@ export function createRoot<TTag extends string, Instance, RootCtx>(
         effect: null,
         signalDisposers: [],
         prevProps: null,
+        cachedNode: node,
       };
       if (parentFiber) parentFiber.children.push(fiber);
       return fiber;
@@ -106,6 +107,7 @@ export function createRoot<TTag extends string, Instance, RootCtx>(
       effect: null,
       signalDisposers: [],
       prevProps: null,
+      cachedNode: node,
     };
 
     for (const child of el.children) {
@@ -132,6 +134,7 @@ export function createRoot<TTag extends string, Instance, RootCtx>(
         effect: null,
         signalDisposers: [],
         prevProps: null,
+        cachedNode: node,
       };
     }
 
@@ -158,6 +161,7 @@ export function createRoot<TTag extends string, Instance, RootCtx>(
       effect: null,
       signalDisposers: [],
       prevProps: null,
+      cachedNode: node,
     };
 
     for (const child of el.children) {
@@ -281,6 +285,7 @@ export function createRoot<TTag extends string, Instance, RootCtx>(
         effect: null,
         signalDisposers: [],
         prevProps: null,
+        cachedNode: null,
       };
       const payloadChildren = isURoot(node) ? (node as URoot).children : [node];
       for (const child of payloadChildren) {
diff --git a/src/host/fiber.ts b/src/host/fiber.ts
index 87bacf2..a314fbc 100644
--- a/src/host/fiber.ts
+++ b/src/host/fiber.ts
@@ -1,3 +1,5 @@
+import type { UNode } from "../core/schema.js";
+
 export interface Fiber<I> {
   instance: I;
   tag: string;
@@ -8,6 +10,7 @@ export interface Fiber<I> {
   effect: Effect<I> | null;
   signalDisposers: (() => void)[];
   prevProps: Record<string, unknown> | null;
+  cachedNode: UNode | null;
 }
 
 export type Effect<I> =
diff --git a/src/host/reconcile.ts b/src/host/reconcile.ts
index 152a0f9..c2c3ea0 100644
--- a/src/host/reconcile.ts
+++ b/src/host/reconcile.ts
@@ -1,4 +1,5 @@
 import { effect } from "@preact/signals-core";
+import { Value } from "@alkdev/typebox/value";
 import type { Fiber, Effect } from "./fiber.js";
 import type { HostConfig } from "./config.js";
 import type { UNode, UElement } from "../core/schema.js";
@@ -59,6 +60,10 @@ export function reconcileProps<I>(
   host: HostConfig<string, I, unknown>,
   ctx: unknown,
 ): void {
+  if (fiber.cachedNode !== null && Value.Equal(fiber.cachedNode, nextNode)) {
+    return;
+  }
+
   if (isUPrimitive(nextNode)) {
     if (fiber.tag === "#text") {
       const text = nextNode === null ? "" : String(nextNode);
@@ -78,6 +83,7 @@ export function reconcileProps<I>(
         }
       }
     }
+    fiber.cachedNode = nextNode;
     return;
   }
 
@@ -87,6 +93,7 @@ export function reconcileProps<I>(
     for (let i = 0; i < count; i++) {
       reconcileProps(fiber.children[i]!, rootChildren[i]!, host, ctx);
     }
+    fiber.cachedNode = nextNode;
     return;
   }
 
@@ -96,6 +103,7 @@ export function reconcileProps<I>(
     const component = el.type as (props: Record<string, unknown>) => UNode;
     const out = component({ ...el.props, children: el.children });
     reconcileProps(fiber, out, host, ctx);
+    fiber.cachedNode = nextNode;
     return;
   }
 
@@ -120,6 +128,7 @@ export function reconcileProps<I>(
   for (let i = 0; i < count; i++) {
     reconcileProps(fiber.children[i]!, el.children[i]!, host, ctx);
   }
+  fiber.cachedNode = nextNode;
 }
 
 export function commitEffects<I>(
diff --git a/test/commit-mutations.test.ts b/test/commit-mutations.test.ts
index a4d6b0f..1335bfe 100644
--- a/test/commit-mutations.test.ts
+++ b/test/commit-mutations.test.ts
@@ -210,6 +210,7 @@ describe("commitMutations direct", () => {
       effect: null,
       signalDisposers: [],
       prevProps: null,
+      cachedNode: null,
     };
   }
 
diff --git a/test/fiber.test.ts b/test/fiber.test.ts
index a2ca9e6..145f424 100644
--- a/test/fiber.test.ts
+++ b/test/fiber.test.ts
@@ -1,6 +1,15 @@
 import { describe, it, expect, expectTypeOf } from "vitest";
 import type { Fiber, Effect } from "../src/host/fiber.js";
 
+const baseFiber: Omit<Fiber<string>, "instance" | "tag" | "props" | "key"> = {
+  children: [],
+  parent: null,
+  effect: null,
+  signalDisposers: [],
+  prevProps: null,
+  cachedNode: null,
+};
+
 describe("Fiber<I> interface", () => {
   it("has all required fields", () => {
     const fiber: Fiber<string> = {
@@ -8,11 +17,7 @@ describe("Fiber<I> interface", () => {
       tag: "div",
       props: { class: "test" },
       key: "a",
-      children: [],
-      parent: null,
-      effect: null,
-      signalDisposers: [],
-      prevProps: null,
+      ...baseFiber,
     };
     expect(fiber.instance).toBe("inst-1");
     expect(fiber.tag).toBe("div");
@@ -23,6 +28,7 @@ describe("Fiber<I> interface", () => {
     expect(fiber.effect).toBeNull();
     expect(fiber.signalDisposers).toEqual([]);
     expect(fiber.prevProps).toBeNull();
+    expect(fiber.cachedNode).toBeNull();
   });
 
   it("supports key as undefined", () => {
@@ -31,11 +37,7 @@ describe("Fiber<I> interface", () => {
       tag: "span",
       props: {},
       key: undefined,
-      children: [],
-      parent: null,
-      effect: null,
-      signalDisposers: [],
-      prevProps: null,
+      ...baseFiber,
     };
     expect(fiber.key).toBeUndefined();
   });
@@ -46,22 +48,15 @@ describe("Fiber<I> interface", () => {
       tag: "div",
       props: {},
       key: undefined,
-      children: [],
-      parent: null,
-      effect: null,
-      signalDisposers: [],
-      prevProps: null,
+      ...baseFiber,
     };
     const child: Fiber<string> = {
       instance: "child-inst",
       tag: "span",
       props: {},
       key: "child-1",
-      children: [],
+      ...baseFiber,
       parent,
-      effect: null,
-      signalDisposers: [],
-      prevProps: null,
     };
     parent.children.push(child);
     expect(child.parent).toBe(parent);
@@ -75,11 +70,8 @@ describe("Fiber<I> interface", () => {
       tag: "div",
       props: {},
       key: undefined,
-      children: [],
-      parent: null,
-      effect: null,
+      ...baseFiber,
       signalDisposers: [() => disposed.push("a"), () => disposed.push("b")],
-      prevProps: null,
     };
     fiber.signalDisposers.forEach((d) => d());
     expect(disposed).toEqual(["a", "b"]);
@@ -104,11 +96,7 @@ describe("Effect<I> union type", () => {
       tag: "span",
       props: {},
       key: undefined,
-      children: [],
-      parent: null,
-      effect: null,
-      signalDisposers: [],
-      prevProps: null,
+      ...baseFiber,
     };
     const effect: Effect<string> = { type: "insert", before };
     expect(effect.type).toBe("insert");
@@ -121,11 +109,7 @@ describe("Effect<I> union type", () => {
       tag: "span",
       props: {},
       key: undefined,
-      children: [],
-      parent: null,
-      effect: null,
-      signalDisposers: [],
-      prevProps: null,
+      ...baseFiber,
     };
     const effect: Effect<string> = { type: "move", before };
     expect(effect.type).toBe("move");
@@ -148,10 +132,8 @@ describe("Effect<I> union type", () => {
       tag: "div",
       props: {},
       key: undefined,
-      children: [],
-      parent: null,
+      ...baseFiber,
       effect: { type: "update", payload: "x" },
-      signalDisposers: [],
       prevProps: {},
     };
     expect(fiber.effect!.type).toBe("update");
@@ -179,11 +161,7 @@ describe("Fiber re-export from barrel", () => {
       tag: "div",
       props: {},
       key: undefined,
-      children: [],
-      parent: null,
-      effect: null,
-      signalDisposers: [],
-      prevProps: null,
+      ...baseFiber,
     };
     const _effect: _EffectCheck = { type: "remove" };
     expect(_fiber.instance).toBe("inst");
diff --git a/test/key-matching-algorithm.test.ts b/test/key-matching-algorithm.test.ts
index b5c110c..5beb0d5 100644
--- a/test/key-matching-algorithm.test.ts
+++ b/test/key-matching-algorithm.test.ts
@@ -14,6 +14,7 @@ function makeFiber(key: string | undefined, tag: string): Fiber<string> {
     effect: null,
     signalDisposers: [],
     prevProps: null,
+    cachedNode: null,
   };
 }
 
diff --git a/test/lis-move-detection.test.ts b/test/lis-move-detection.test.ts
index b343201..2b7b863 100644
--- a/test/lis-move-detection.test.ts
+++ b/test/lis-move-detection.test.ts
@@ -14,6 +14,7 @@ function makeFiber(key: string | undefined, tag: string): Fiber<string> {
     effect: null,
     signalDisposers: [],
     prevProps: null,
+    cachedNode: null,
   };
 }
 
diff --git a/test/value-equal-bailout.test.ts b/test/value-equal-bailout.test.ts
new file mode 100644
index 0000000..3160121
--- /dev/null
+++ b/test/value-equal-bailout.test.ts
@@ -0,0 +1,244 @@
+import { describe, it, expect, beforeEach } from "vitest";
+import { h } from "../src/core/h.js";
+import { createRoot as createHostRoot } from "../src/host/config.js";
+import type { HostConfig } from "../src/host/config.js";
+import type { Fiber } from "../src/host/fiber.js";
+import { reconcileProps, resetUpdateQueue } from "../src/host/reconcile.js";
+
+function makeTrackingHost() {
+  const prepareUpdateCalls: { instance: string; tag: string; prevProps: Record<string, unknown>; nextProps: Record<string, unknown> }[] = [];
+  const commitUpdateCalls: { instance: string; payload: unknown; tag: string; prevProps: Record<string, unknown>; nextProps: Record<string, unknown> }[] = [];
+  const instances: { tag: string; props: Record<string, unknown> }[] = [];
+  const texts: string[] = [];
+  const appends: { parent: string; child: string }[] = [];
+
+  const host: HostConfig<string, string, Record<string, unknown>> = {
+    name: "tracking",
+    createRootContext: () => ({}),
+    createInstance: (tag, props) => {
+      const id = `${tag}_${instances.length}`;
+      instances.push({ tag, props });
+      return id;
+    },
+    createTextInstance: (text) => {
+      texts.push(text);
+      return `text_${texts.length - 1}`;
+    },
+    appendChild: (parent, child) => {
+      appends.push({ parent, child });
+    },
+    prepareUpdate: (instance, tag, prevProps, nextProps) => {
+      prepareUpdateCalls.push({ instance, tag, prevProps: { ...prevProps }, nextProps: { ...nextProps } });
+      const changed: Record<string, unknown> = {};
+      let hasChanges = false;
+      for (const key of Object.keys(nextProps)) {
+        if (prevProps[key] !== nextProps[key]) {
+          changed[key] = nextProps[key];
+          hasChanges = true;
+        }
+      }
+      for (const key of Object.keys(prevProps)) {
+        if (!(key in nextProps)) {
+          changed[key] = undefined;
+          hasChanges = true;
+        }
+      }
+      return hasChanges ? changed : null;
+    },
+    commitUpdate: (instance, payload, tag, prevProps, nextProps) => {
+      commitUpdateCalls.push({ instance, payload, tag, prevProps: { ...prevProps }, nextProps: { ...nextProps } });
+    },
+  };
+
+  return { host, prepareUpdateCalls, commitUpdateCalls, instances, texts, appends };
+}
+
+describe("Value.Equal bail-out", () => {
+  beforeEach(() => {
+    resetUpdateQueue();
+  });
+
+  describe("unchanged subtree skips prepareUpdate/commitUpdate", () => {
+    it("identical re-render skips prepareUpdate for unchanged element", () => {
+      const { host, prepareUpdateCalls, commitUpdateCalls } = makeTrackingHost();
+      const root = createHostRoot(host, {});
+      root.render(h("div", { color: "red" }));
+
+      prepareUpdateCalls.length = 0;
+      commitUpdateCalls.length = 0;
+
+      root.render(h("div", { color: "red" }));
+
+      expect(prepareUpdateCalls.length).toBe(0);
+      expect(commitUpdateCalls.length).toBe(0);
+    });
+
+    it("identical re-render with children skips prepareUpdate for parent and children", () => {
+      const { host, prepareUpdateCalls, commitUpdateCalls } = makeTrackingHost();
+      const root = createHostRoot(host, {});
+      root.render(h("div", { color: "red" }, h("span", { label: "a" })));
+
+      prepareUpdateCalls.length = 0;
+      commitUpdateCalls.length = 0;
+
+      root.render(h("div", { color: "red" }, h("span", { label: "a" })));
+
+      expect(prepareUpdateCalls.length).toBe(0);
+      expect(commitUpdateCalls.length).toBe(0);
+    });
+  });
+
+  describe("changed prop still triggers prepareUpdate", () => {
+    it("changed prop on parent triggers prepareUpdate", () => {
+      const { host, prepareUpdateCalls } = makeTrackingHost();
+      const root = createHostRoot(host, {});
+      root.render(h("div", { color: "red" }));
+
+      prepareUpdateCalls.length = 0;
+
+      root.render(h("div", { color: "blue" }));
+
+      expect(prepareUpdateCalls.length).toBeGreaterThanOrEqual(1);
+      const divCall = prepareUpdateCalls.find((c) => c.tag === "div");
+      expect(divCall).toBeDefined();
+      expect(divCall!.prevProps.color).toBe("red");
+      expect(divCall!.nextProps.color).toBe("blue");
+    });
+
+    it("changed child prop triggers prepareUpdate only for child", () => {
+      const { host, prepareUpdateCalls } = makeTrackingHost();
+      const root = createHostRoot(host, {});
+      root.render(h("div", { color: "red" }, h("span", { label: "a" })));
+
+      prepareUpdateCalls.length = 0;
+
+      root.render(h("div", { color: "red" }, h("span", { label: "b" })));
+
+      const spanCalls = prepareUpdateCalls.filter((c) => c.tag === "span");
+      expect(spanCalls.length).toBe(1);
+      expect(spanCalls[0]!.prevProps.label).toBe("a");
+      expect(spanCalls[0]!.nextProps.label).toBe("b");
+    });
+  });
+
+  describe("deeply nested unchanged subtree is fully skipped", () => {
+    it("three levels of unchanged elements are all skipped", () => {
+      const { host, prepareUpdateCalls } = makeTrackingHost();
+      const root = createHostRoot(host, {});
+      root.render(
+        h("div", { id: "1" },
+          h("section", { class: "outer" },
+            h("p", { align: "center" }, "text"),
+          ),
+        ),
+      );
+
+      prepareUpdateCalls.length = 0;
+
+      root.render(
+        h("div", { id: "1" },
+          h("section", { class: "outer" },
+            h("p", { align: "center" }, "text"),
+          ),
+        ),
+      );
+
+      expect(prepareUpdateCalls.length).toBe(0);
+    });
+
+    it("deep subtree with one change only commitUpdates the changed node", () => {
+      const { host, commitUpdateCalls } = makeTrackingHost();
+      const root = createHostRoot(host, {});
+      root.render(
+        h("div", { id: "1" },
+          h("section", { class: "outer" },
+            h("p", { align: "center" }),
+          ),
+        ),
+      );
+
+      commitUpdateCalls.length = 0;
+
+      root.render(
+        h("div", { id: "1" },
+          h("section", { class: "outer" },
+            h("p", { align: "left" }),
+          ),
+        ),
+      );
+
+      const pCommit = commitUpdateCalls.filter((c) => c.tag === "p");
+      expect(pCommit.length).toBe(1);
+      expect(pCommit[0]!.prevProps.align).toBe("center");
+      expect(pCommit[0]!.nextProps.align).toBe("left");
+    });
+  });
+
+  describe("cachedNode is set on mount", () => {
+    it("fibers created during mount have cachedNode set", () => {
+      const { host } = makeTrackingHost();
+      const root = createHostRoot(host, {});
+      root.render(h("div", { color: "red" }, h("span", { label: "a" })));
+
+      const divFiber = root.rootFiber!.children[0]!;
+      expect(divFiber.cachedNode).not.toBeNull();
+      const spanFiber = divFiber.children[0]!;
+      expect(spanFiber.cachedNode).not.toBeNull();
+    });
+
+    it("cachedNode matches the node used to create the fiber", () => {
+      const { host } = makeTrackingHost();
+      const root = createHostRoot(host, {});
+      const divNode = h("div", { color: "red" });
+      root.render(divNode);
+
+      const divFiber = root.rootFiber!.children[0]!;
+      expect(divFiber.cachedNode).not.toBeNull();
+    });
+  });
+
+  describe("reconcileProps direct call with Value.Equal bail-out", () => {
+    it("reconcileProps with identical node does not call prepareUpdate", () => {
+      const { host, prepareUpdateCalls } = makeTrackingHost();
+      const root = createHostRoot(host, {});
+      root.render(h("div", { color: "red" }));
+
+      const divFiber = root.rootFiber!.children[0]!;
+      expect(divFiber.cachedNode).not.toBeNull();
+
+      prepareUpdateCalls.length = 0;
+
+      reconcileProps(divFiber, h("div", { color: "red" }), host as HostConfig<string, string, unknown>, {});
+
+      expect(prepareUpdateCalls.length).toBe(0);
+      expect(divFiber.effect).toBeNull();
+    });
+
+    it("reconcileProps with changed node calls prepareUpdate", () => {
+      const { host, prepareUpdateCalls } = makeTrackingHost();
+      const root = createHostRoot(host, {});
+      root.render(h("div", { color: "red" }));
+
+      const divFiber = root.rootFiber!.children[0]!;
+      prepareUpdateCalls.length = 0;
+
+      reconcileProps(divFiber, h("div", { color: "blue" }), host as HostConfig<string, string, unknown>, {});
+
+      expect(prepareUpdateCalls.length).toBe(1);
+    });
+  });
+
+  describe("Value.Equal deep equality", () => {
+    it("deep-equal props with different object references still bail out", () => {
+      const { host, prepareUpdateCalls } = makeTrackingHost();
+      const root = createHostRoot(host, {});
+
+      root.render(h("div", { style: { color: "red", size: 10 } }));
+      prepareUpdateCalls.length = 0;
+
+      root.render(h("div", { style: { color: "red", size: 10 } }));
+
+      expect(prepareUpdateCalls.length).toBe(0);
+    });
+  });
+});
\ No newline at end of file