diff --git a/CHANGELOG.md b/CHANGELOG.md
index 4df1856d..441d38b2 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,24 @@
 # Changelog
 
+## v3.5.3 - 2026-06-25
+
+### Fixed
+
+- **Render-phase state updates left the DOM inconsistent with the render.** When a
+  component updated its own state during render (`if x { setState(...) }` — the
+  derived-state-during-render pattern), the setter stored the new value and
+  scheduled a commit, but the component was never re-run, so the committed DOM
+  showed a value the component had not actually rendered (e.g. it rendered `0` but
+  the DOM showed `1`, and it never converged). `renderFunctionComponent` now
+  detects a render-phase update (the setter's owner is the fiber actively
+  rendering, tracked by a new `activeRenderFiber` flag — distinct from the ambient
+  current fiber so it never trips on the SSR path or hook unit tests) and re-runs
+  the component to convergence, bounded at 25 iterations with a diagnostic to
+  guard against an unconditional-setState infinite loop. Matches React's
+  "keeps restarting until there are no more new updates." Covered by
+  `TestRenderPhaseUpdateConverges` / `TestRenderPhaseDerivedStateOneStep` /
+  `TestRenderPhaseUnconditionalDoesNotHang`.
+
 ## v3.5.2 - 2026-06-25
 
 ### Fixed
diff --git a/examples/public-examples-site/assets/docs/latest-release-notes.md b/examples/public-examples-site/assets/docs/latest-release-notes.md
index d8eaa8c7..0ef4a482 100644
--- a/examples/public-examples-site/assets/docs/latest-release-notes.md
+++ b/examples/public-examples-site/assets/docs/latest-release-notes.md
@@ -3,18 +3,18 @@
 This docs-site page mirrors the first section returned by
 `tools/changelogcheck.LatestEntry(CHANGELOG.md)`.
 
-## v3.5.2 - 2026-06-25
+## v3.5.3 - 2026-06-25
 
-The current latest changelog section is `v3.5.2 - 2026-06-25`. **Fixed:**
-`defaultValue`/`defaultChecked` rendered as inert, browser-ignored attributes in
-SSR, so an uncontrolled form field set via `defaultValue` rendered empty
-server-side. The SSR serializer (buffered + streaming) now maps `defaultValue` →
-the element's controlled value and `defaultChecked` → `checked` (unless the
-controlled prop is already set, so an explicit `value` wins). Because it runs
-before the controlled-value logic, it flows through every form element: `<input>`
-gets a `value`, `<textarea>` gets text content, and `<select>` marks the matching
-`<option selected>` — matching React and completing the controlled-input SSR work
-(v3.4.9 textarea, v3.4.10 select). It is checked by the blocking
-`tools/changelogcheck` release gate before a versioned release can ship.
+The current latest changelog section is `v3.5.3 - 2026-06-25`. **Fixed:** a
+render-phase state update (a component calling its own `setState` during render —
+the derived-state pattern) left the DOM showing a value the component never
+actually rendered and never converged. `renderFunctionComponent` now detects a
+render-phase update (via a new `activeRenderFiber` flag, distinct from the ambient
+current fiber so it never trips on the SSR path or hook unit tests) and re-runs
+the component to convergence — bounded at 25 iterations with a diagnostic to guard
+against an unconditional-setState infinite loop — matching React's "keeps
+restarting until there are no more new updates." Found while bug-hunting GWC's
+state management against React. It is checked by the blocking `tools/changelogcheck`
+release gate before a versioned release can ship.
 
 See the repository root `CHANGELOG.md` for the full entry body.
diff --git a/internal/runtime/hooks.go b/internal/runtime/hooks.go
index f6b612da..17d06b0a 100644
--- a/internal/runtime/hooks.go
+++ b/internal/runtime/hooks.go
@@ -166,6 +166,15 @@ func GoUseState[T any](parseRt *Runtime, parseInitialValue T) (func() T, func(an
 			if parseTargetFiber == nil {
 				parseTargetFiber = parseFiber
 			}
+			// Render-phase update: the setter was called while its own fiber's
+			// component function is executing. Don't schedule a commit of the
+			// half-rendered output — flag the fiber so renderFunctionComponent
+			// re-runs to convergence with the new state (matching React). The new
+			// value is already stored above, so the re-run observes it.
+			if parseRt != nil && parseRt.activeRenderFiber == parseTargetFiber {
+				parseTargetFiber.renderPhaseUpdate = true
+				return
+			}
 			parseRt.ScheduleOwnedFiberUpdateWithOrigin(parseTargetFiber, parseUpdateOrigin)
 		}
 
diff --git a/internal/runtime/hot_reload.go b/internal/runtime/hot_reload.go
index 5a4ad322..b7acc8d4 100644
--- a/internal/runtime/hot_reload.go
+++ b/internal/runtime/hot_reload.go
@@ -865,8 +865,10 @@ func (parseRt *Runtime) renderFunctionComponent(parseFiber *Fiber) (*Element, bo
 		var isHandledPanic bool
 		var parseNextFromBoundary *Fiber
 		renderStart := time.Now()
+		parseRt.activeRenderFiber = parseFiber
 		func() {
 			defer SetCurrentFiber(nil)
+			defer func() { parseRt.activeRenderFiber = nil }()
 			defer func() {
 				if parseRecovered := recover(); parseRecovered != nil {
 					var isHandled bool
@@ -905,6 +907,54 @@ func (parseRt *Runtime) renderFunctionComponent(parseFiber *Fiber) (*Element, bo
 			return nil, true, parseNextFromBoundary
 		}
 
+		// Render-phase convergence: if the component updated its own state during
+		// this render (parseFiber.renderPhaseUpdate, set by the hook setter), re-run
+		// it with the new state until it stops updating — bounded like React's
+		// re-render limit — so the committed output reflects the final state instead
+		// of a half-rendered intermediate.
+		for parseRPIters := 0; parseFiber.renderPhaseUpdate; parseRPIters++ {
+			parseFiber.renderPhaseUpdate = false
+			if parseRPIters >= 25 {
+				ReportDiagnosticWithContext("runtime", DiagnosticError,
+					"render-phase state updates did not converge after 25 attempts; likely an unconditional setState during render",
+					diagnosticPathForFiber(parseFiber), diagnosticComponentStack(parseFiber))
+				break
+			}
+			if parseFiber.hooks != nil {
+				parseFiber.hooks.index = 0
+				parseFiber.hooks.stateIndex = 0
+				parseFiber.hooks.depIndex = 0
+				parseFiber.hooks.memoIndex = 0
+				parseFiber.hooks.callbackIndex = 0
+				parseFiber.hooks.refIndex = 0
+				parseFiber.hooks.idIndex = 0
+				parseFiber.hooks.fetchIndex = 0
+				parseFiber.hooks.funcIndex = 0
+				parseFiber.hooks.atomIndex = 0
+				parseFiber.hooks.cleanupIndex = 0
+				parseFiber.hooks.signature = parseFiber.hooks.signature[:0]
+			}
+			if parseFiber.effects != nil {
+				parseFiber.effects = parseFiber.effects[:0]
+			}
+			SetCurrentFiber(parseFiber)
+			parseRt.activeRenderFiber = parseFiber
+			func() {
+				defer SetCurrentFiber(nil)
+				defer func() { parseRt.activeRenderFiber = nil }()
+				switch parseFn := parseFiber.typeOf.(type) {
+				case func() *Element:
+					parseElement = parseFn()
+				case func(map[string]any) *Element:
+					parseElement = parseFn(parseFiber.props)
+				case func(Attrs) *Element:
+					parseElement = parseFn(Attrs(parseFiber.props))
+				case *ComponentType:
+					parseElement = parseFn.Render(parseFiber.props)
+				}
+			}()
+		}
+
 		if parseAttempt == 0 && parseRestore != nil {
 			if !componentSnapshotSerializableCompatible(parseRestore, parseFiber) {
 				reportHotReloadFallbackDiagnostic(parseRestore, parseFiber)
diff --git a/internal/runtime/runtime.go b/internal/runtime/runtime.go
index f2cef936..377e6c21 100644
--- a/internal/runtime/runtime.go
+++ b/internal/runtime/runtime.go
@@ -52,8 +52,14 @@ type Runtime struct {
 	scheduler    Scheduler
 	browserState BrowserState
 
-	wipRoot                 *Fiber
-	currentRoot             *Fiber
+	wipRoot     *Fiber
+	currentRoot *Fiber
+	// activeRenderFiber is the fiber whose component function is executing right
+	// now (set only by renderFunctionComponent around the render call). A hook
+	// setter that sees its owner == activeRenderFiber is a render-phase update and
+	// converges in renderFunctionComponent instead of scheduling a commit. Unlike
+	// the ambient currentFiber, this is never set by unit tests or the SSR path.
+	activeRenderFiber       *Fiber
 	nextUnitOfWork          *Fiber
 	deletions               []*Fiber
 	pendingEffectFibers     []*Fiber
diff --git a/internal/runtime/types.go b/internal/runtime/types.go
index 39fe223a..ba4a8e05 100644
--- a/internal/runtime/types.go
+++ b/internal/runtime/types.go
@@ -80,7 +80,11 @@ type Fiber struct {
 	portalUnresolved    bool // portal target selector did not resolve at commit; retry on the next commit
 	needsChildReconcile bool
 	needsChildOrder     bool
-	// 6 bytes padding here to align next 8-byte field
+	// renderPhaseUpdate is set when a hook setter is called while this fiber is
+	// rendering (a render-phase update). renderFunctionComponent re-runs the
+	// component to converge on the new state instead of committing an output that
+	// does not match the latest state.
+	renderPhaseUpdate bool
 
 	// Component info
 	hooks              *Hooks
diff --git a/ui/render_phase_update_test.go b/ui/render_phase_update_test.go
new file mode 100644
index 00000000..ad129869
--- /dev/null
+++ b/ui/render_phase_update_test.go
@@ -0,0 +1,95 @@
+//go:build !js || !wasm
+
+package ui_test
+
+import (
+	"fmt"
+	"testing"
+
+	"github.com/monstercameron/GoWebComponents/internal/platform/mockdom"
+	"github.com/monstercameron/GoWebComponents/internal/runtime"
+)
+
+// Ported from React's ReactHooksWithNoopRenderer render-phase-update tests
+// ("keeps restarting until there are no more new updates"). When a component
+// updates its own state during render, GWC re-runs the component to convergence
+// so the committed output reflects the final state — not a half-rendered
+// intermediate. Regression test for the v3.5.3 fix (previously the DOM showed a
+// value the component never actually rendered).
+func TestRenderPhaseUpdateConverges(t *testing.T) {
+	adapter := mockdom.NewMockDOMAdapter()
+	rt := runtime.NewRuntime(runtime.Config{DOMAdapter: adapter, Reset: true})
+	root := adapter.CreateElement("div")
+
+	var parseSeen []int
+	parseRenders := 0
+	rt.RenderInto(root, runtime.CreateElement(func() *runtime.Element {
+		parseRenders++
+		parseGet, parseSet := runtime.GoUseState(rt, 0)
+		parseSeen = append(parseSeen, parseGet())
+		if parseGet() < 3 {
+			parseSet(parseGet() + 1)
+		}
+		return runtime.CreateElement("span", map[string]any{}, fmt.Sprint(parseGet()))
+	}, map[string]any{}))
+
+	parseNode, _ := adapter.GetChildren(root)[0].(*mockdom.MockDOMNode)
+	if parseNode == nil || parseNode.TextContent != "3" {
+		t.Errorf("render-phase update did not converge: domText = %q, want 3 (seen %v, renders %d)",
+			func() string {
+				if parseNode == nil {
+					return "<nil>"
+				}
+				return parseNode.TextContent
+			}(), parseSeen, parseRenders)
+	}
+	// Each render observed the incrementing value; the final committed output
+	// matches the final render.
+	if len(parseSeen) == 0 || parseSeen[len(parseSeen)-1] != 3 {
+		t.Errorf("expected the last render to observe state 3, seen = %v", parseSeen)
+	}
+}
+
+// A conditional render-phase update (derived state) is the common, supported
+// pattern: set only when a prop/state differs, converging in one extra pass.
+func TestRenderPhaseDerivedStateOneStep(t *testing.T) {
+	adapter := mockdom.NewMockDOMAdapter()
+	rt := runtime.NewRuntime(runtime.Config{DOMAdapter: adapter, Reset: true})
+	root := adapter.CreateElement("div")
+
+	parseRenders := 0
+	rt.RenderInto(root, runtime.CreateElement(func() *runtime.Element {
+		parseRenders++
+		parseGet, parseSet := runtime.GoUseState(rt, "init")
+		if parseGet() == "init" {
+			parseSet("derived")
+		}
+		return runtime.CreateElement("span", map[string]any{}, parseGet())
+	}, map[string]any{}))
+
+	parseNode, _ := adapter.GetChildren(root)[0].(*mockdom.MockDOMNode)
+	if parseNode == nil || parseNode.TextContent != "derived" {
+		t.Errorf("derived-state render = %v, want derived", parseNode)
+	}
+	if parseRenders != 2 {
+		t.Errorf("expected 2 renders (initial + one convergence), got %d", parseRenders)
+	}
+}
+
+// An unconditional render-phase update must not hang — the convergence loop is
+// bounded and gives up after the cap.
+func TestRenderPhaseUnconditionalDoesNotHang(t *testing.T) {
+	adapter := mockdom.NewMockDOMAdapter()
+	rt := runtime.NewRuntime(runtime.Config{DOMAdapter: adapter, Reset: true})
+	root := adapter.CreateElement("div")
+
+	// Must return (not hang); we don't assert the value, only that it terminates.
+	rt.RenderInto(root, runtime.CreateElement(func() *runtime.Element {
+		parseGet, parseSet := runtime.GoUseState(rt, 0)
+		parseSet(parseGet() + 1)
+		return runtime.CreateElement("span", map[string]any{}, fmt.Sprint(parseGet()))
+	}, map[string]any{}))
+	if len(adapter.GetChildren(root)) == 0 {
+		t.Fatal("nothing rendered")
+	}
+}