diff --git a/crates/lib/src/status.rs b/crates/lib/src/status.rs
index e8b4192a2..983b4b83f 100644
--- a/crates/lib/src/status.rs
+++ b/crates/lib/src/status.rs
@@ -93,7 +93,56 @@ impl From<ImageReference> for OstreeImageReference {
     }
 }
 
+/// Check if SELinux policies are compatible between booted and target deployments.
+/// Returns false if SELinux is enabled and the policies differ or have mismatched presence.
+fn check_selinux_policy_compatible(
+    sysroot: &SysrootLock,
+    booted_deployment: &ostree::Deployment,
+    target_deployment: &ostree::Deployment,
+) -> bool {
+    // Only check if SELinux is enabled
+    let Ok(selinux_enabled) = crate::lsm::selinux_enabled() else {
+        return true; // If we can't determine, assume compatible
+    };
+    if !selinux_enabled {
+        return true;
+    }
+
+    let Ok(booted_fd) = crate::utils::deployment_fd(sysroot, booted_deployment) else {
+        return false; // Can't check, be conservative
+    };
+    let Ok(booted_policy) = crate::lsm::new_sepolicy_at(&booted_fd) else {
+        return false; // Can't check, be conservative
+    };
+    let Ok(target_fd) = crate::utils::deployment_fd(sysroot, target_deployment) else {
+        return false; // Can't check, be conservative
+    };
+    let Ok(target_policy) = crate::lsm::new_sepolicy_at(&target_fd) else {
+        return false; // Can't check, be conservative
+    };
+
+    match (booted_policy, target_policy) {
+        (None, None) => true, // Both absent, compatible
+        (Some(_), None) | (None, Some(_)) => {
+            // Incompatible: one has policy, other doesn't
+            false
+        }
+        (Some(booted), Some(target)) => {
+            // Both have policies, checksums must match
+            // SAFETY: new_sepolicy_at filters out policies without checksums
+            let Some(booted_csum) = booted.csum() else {
+                return false; // Can't compare, be conservative
+            };
+            let Some(target_csum) = target.csum() else {
+                return false; // Can't compare, be conservative
+            };
+            booted_csum == target_csum
+        }
+    }
+}
+
 /// Check if a deployment has soft reboot capability
+// TODO: Lower SELinux policy check into ostree's deployment_can_soft_reboot API
 fn has_soft_reboot_capability(sysroot: &SysrootLock, deployment: &ostree::Deployment) -> bool {
     if !ostree_ext::systemd_has_soft_reboot() {
         return false;
@@ -113,7 +162,19 @@ fn has_soft_reboot_capability(sysroot: &SysrootLock, deployment: &ostree::Deploy
         return false;
     }
 
-    sysroot.deployment_can_soft_reboot(deployment)
+    if !sysroot.deployment_can_soft_reboot(deployment) {
+        return false;
+    }
+
+    // Check SELinux policy compatibility with booted deployment
+    // Block soft reboot if SELinux policies differ, as policy is not reloaded across soft reboots
+    if let Some(booted_deployment) = sysroot.booted_deployment() {
+        if !check_selinux_policy_compatible(sysroot, &booted_deployment, deployment) {
+            return false;
+        }
+    }
+
+    true
 }
 
 /// Parse an ostree origin file (a keyfile) and extract the targeted
diff --git a/tmt/plans/integration.fmf b/tmt/plans/integration.fmf
index fe74cc737..5b685afcd 100644
--- a/tmt/plans/integration.fmf
+++ b/tmt/plans/integration.fmf
@@ -112,3 +112,14 @@ execute:
     how: fmf
     test:
         - /tmt/tests/test-28-factory-reset
+
+/test-29-soft-reboot-selinux-policy:
+  summary: Test soft reboot with SELinux policy changes
+  discover:
+    how: fmf
+    test:
+        - /tmt/tests/test-29-soft-reboot-selinux-policy
+  adjust:
+    - when: running_env != image_mode
+      enabled: false
+      because: tmt-reboot does not work with systemd reboot in testing farm environment (see bug-soft-reboot.md)
diff --git a/tmt/tests/booted/test-soft-reboot-selinux-policy.nu b/tmt/tests/booted/test-soft-reboot-selinux-policy.nu
new file mode 100644
index 000000000..147513df8
--- /dev/null
+++ b/tmt/tests/booted/test-soft-reboot-selinux-policy.nu
@@ -0,0 +1,115 @@
+# Verify that soft reboot is blocked when SELinux policies differ
+use std assert
+use tap.nu
+
+let soft_reboot_capable = "/usr/lib/systemd/system/soft-reboot.target" | path exists
+if not $soft_reboot_capable {
+    echo "Skipping, system is not soft reboot capable"
+    return
+}
+
+# Check if SELinux is enabled
+let selinux_enabled = "/sys/fs/selinux/enforce" | path exists
+if not $selinux_enabled {
+    echo "Skipping, SELinux is not enabled"
+    return
+}
+
+# This code runs on *each* boot.
+bootc status
+
+# Run on the first boot
+def initial_build [] {
+    tap begin "Build base image and test soft reboot with SELinux policy change"
+
+    let td = mktemp -d
+    cd $td
+
+    bootc image copy-to-storage
+
+    # Create a derived container that injects a local SELinux policy module
+    # This modifies the policy in a way that changes the policy checksum
+    # Following Colin's suggestion: inject a local selinux policy module
+    "FROM localhost/bootc
+# Inject a local SELinux policy change by modifying file_contexts
+# This will change the policy checksum between deployments
+RUN mkdir -p /opt/bootc-test-selinux-policy && \
+    echo '/opt/bootc-test-selinux-policy /opt/bootc-test-selinux-policy' >> /etc/selinux/targeted/contexts/files/file_contexts.subs_dist || true
+" | save Dockerfile
+    
+    # Build the derived image
+    podman build -t localhost/bootc-derived-policy .
+    
+    # Try to soft reboot - this should fail because policies differ
+    bootc switch --soft-reboot=auto --transport containers-storage localhost/bootc-derived-policy
+    let st = bootc status --json | from json
+    
+    # The staged deployment should NOT be soft-reboot capable because policies differ
+    assert (not $st.status.staged.softRebootCapable) "Expected soft reboot to be blocked due to SELinux policy difference"
+    
+    print "Soft reboot correctly blocked when SELinux policies differ"
+    
+    # Reset and do a full reboot instead
+    ostree admin prepare-soft-reboot --reset
+    tmt-reboot
+}
+
+# The second boot; verify we're in the derived image
+def second_boot [] {
+    tap begin "Verify deployment and test soft reboot with same policy"
+    
+    # Verify we're in the new deployment
+    let st = bootc status --json | from json
+    assert ($st.status.booted.image.name | str contains "bootc-derived-policy")
+    
+    # Now create another derived image with the SAME policy (no changes)
+    let td = mktemp -d
+    cd $td
+    
+    bootc image copy-to-storage
+    
+    # Create a derived container that doesn't change the policy
+    "FROM localhost/bootc-derived-policy
+RUN echo 'same policy test' > /usr/share/testfile-same-policy.txt
+" | save Dockerfile
+    
+    podman build -t localhost/bootc-same-policy .
+    
+    # Try to soft reboot - this should succeed because policies match
+    bootc switch --soft-reboot=auto --transport containers-storage localhost/bootc-same-policy
+    let st = bootc status --json | from json
+    
+    # The staged deployment SHOULD be soft-reboot capable because policies match
+    assert $st.status.staged.softRebootCapable "Expected soft reboot to be allowed when SELinux policies match"
+    
+    print "Soft reboot correctly allowed when SELinux policies match"
+    
+    # See ../bug-soft-reboot.md - TMT cannot handle systemd soft-reboots
+    ostree admin prepare-soft-reboot --reset
+    tmt-reboot
+}
+
+# The third boot; verify we're in the same-policy deployment
+def third_boot [] {
+    tap begin "Verify same-policy deployment"
+    
+    assert ("/usr/share/testfile-same-policy.txt" | path exists)
+    
+    let st = bootc status --json | from json
+    assert ($st.status.booted.image.name | str contains "bootc-same-policy")
+    
+    print "Successfully verified soft reboot with SELinux policy checks"
+    
+    tap ok
+}
+
+def main [] {
+    # See https://tmt.readthedocs.io/en/stable/stories/features.html#reboot-during-test
+    match $env.TMT_REBOOT_COUNT? {
+        null | "0" => initial_build,
+        "1" => second_boot,
+        "2" => third_boot,
+        $o => { error make { msg: $"Invalid TMT_REBOOT_COUNT ($o)" } },
+    }
+}
+
diff --git a/tmt/tests/test-29-soft-reboot-selinux-policy.fmf b/tmt/tests/test-29-soft-reboot-selinux-policy.fmf
new file mode 100644
index 000000000..764e0602f
--- /dev/null
+++ b/tmt/tests/test-29-soft-reboot-selinux-policy.fmf
@@ -0,0 +1,3 @@
+summary: Test soft reboot with SELinux policy changes
+test: nu booted/test-soft-reboot-selinux-policy.nu
+duration: 30m