diff --git a/packages/react-devtools-shared/src/__tests__/TimelineProfiler-test.js b/packages/react-devtools-shared/src/__tests__/TimelineProfiler-test.js
index cd9081d8b95b2..23ad7f657ba33 100644
--- a/packages/react-devtools-shared/src/__tests__/TimelineProfiler-test.js
+++ b/packages/react-devtools-shared/src/__tests__/TimelineProfiler-test.js
@@ -153,7 +153,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--layout-effects-start-2",
           "--layout-effects-stop",
           "--commit-stop",
@@ -183,7 +183,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--layout-effects-start-32",
           "--layout-effects-stop",
           "--commit-stop",
@@ -244,7 +244,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--layout-effects-start-2",
           "--layout-effects-stop",
           "--commit-stop",
@@ -286,7 +286,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--layout-effects-start-2",
           "--layout-effects-stop",
           "--commit-stop",
@@ -337,7 +337,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--layout-effects-start-32",
           "--layout-effects-stop",
           "--commit-stop",
@@ -392,7 +392,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--layout-effects-start-32",
           "--layout-effects-stop",
           "--commit-stop",
@@ -446,7 +446,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--layout-effects-start-32",
           "--schedule-state-update-2-Example",
           "--layout-effects-stop",
@@ -459,7 +459,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--commit-stop",
           "--commit-stop",
         ]
@@ -499,7 +499,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--layout-effects-start-32",
           "--schedule-forced-update-2-Example",
           "--layout-effects-stop",
@@ -512,7 +512,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--commit-stop",
           "--commit-stop",
         ]
@@ -564,7 +564,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--layout-effects-start-32",
           "--layout-effects-stop",
           "--commit-stop",
@@ -618,7 +618,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--layout-effects-start-32",
           "--layout-effects-stop",
           "--commit-stop",
@@ -658,7 +658,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--layout-effects-start-32",
           "--component-layout-effect-mount-start-Example",
           "--schedule-state-update-2-Example",
@@ -673,7 +673,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--commit-stop",
           "--commit-stop",
         ]
@@ -705,7 +705,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--layout-effects-start-32",
           "--layout-effects-stop",
           "--commit-stop",
@@ -723,7 +723,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--commit-stop",
         ]
       `);
@@ -755,7 +755,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--layout-effects-start-32",
           "--layout-effects-stop",
           "--commit-stop",
@@ -805,7 +805,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--layout-effects-start-2",
           "--schedule-state-update-2-ErrorBoundary",
           "--layout-effects-stop",
@@ -819,7 +819,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--commit-stop",
         ]
       `);
@@ -885,7 +885,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--layout-effects-start-32",
           "--schedule-state-update-2-ErrorBoundary",
           "--layout-effects-stop",
@@ -898,7 +898,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--commit-stop",
           "--commit-stop",
         ]
@@ -961,7 +961,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--layout-effects-start-32",
           "--component-layout-effect-mount-start-ComponentWithEffects",
           "--component-layout-effect-mount-stop",
@@ -1017,7 +1017,7 @@ describe('Timeline profiler', () => {
           "--profiler-version-1",
           "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
           "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+          "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
           "--component-layout-effect-unmount-start-ComponentWithEffects",
           "--component-layout-effect-unmount-stop",
           "--component-layout-effect-unmount-start-ComponentWithEffects",
@@ -1051,7 +1051,7 @@ describe('Timeline profiler', () => {
             "--profiler-version-1",
             "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
             "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-            "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+            "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
             "--layout-effects-start-2",
             "--layout-effects-stop",
             "--commit-stop",
@@ -1101,7 +1101,7 @@ describe('Timeline profiler', () => {
             "--profiler-version-1",
             "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
             "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-            "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+            "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
             "--layout-effects-start-2",
             "--layout-effects-stop",
             "--commit-stop",
@@ -1141,7 +1141,7 @@ describe('Timeline profiler', () => {
             "--profiler-version-1",
             "--react-internal-module-start-  at filtered (<anonymous>:0:0)",
             "--react-internal-module-stop-  at filtered (<anonymous>:1:1)",
-            "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen",
+            "--react-lane-labels-SyncHydrationLane,Sync,InputContinuousHydration,InputContinuous,DefaultHydration,Default,TransitionHydration,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Transition,Retry,Retry,Retry,Retry,SelectiveHydration,IdleHydration,Idle,Offscreen,Deferred",
             "--layout-effects-start-8",
             "--layout-effects-stop",
             "--commit-stop",
diff --git a/packages/react-devtools-shared/src/__tests__/preprocessData-test.js b/packages/react-devtools-shared/src/__tests__/preprocessData-test.js
index b822663c93861..52eb869e9d17a 100644
--- a/packages/react-devtools-shared/src/__tests__/preprocessData-test.js
+++ b/packages/react-devtools-shared/src/__tests__/preprocessData-test.js
@@ -2001,15 +2001,15 @@ describe('Timeline profiler', () => {
             524288 => "Transition",
             1048576 => "Transition",
             2097152 => "Transition",
-            4194304 => "Transition",
+            4194304 => "Retry",
             8388608 => "Retry",
             16777216 => "Retry",
             33554432 => "Retry",
-            67108864 => "Retry",
-            134217728 => "SelectiveHydration",
-            268435456 => "IdleHydration",
-            536870912 => "Idle",
-            1073741824 => "Offscreen",
+            67108864 => "SelectiveHydration",
+            134217728 => "IdleHydration",
+            268435456 => "Idle",
+            536870912 => "Offscreen",
+            1073741824 => "Deferred",
           },
           "laneToReactMeasureMap": Map {
             1 => [],
@@ -2269,15 +2269,15 @@ describe('Timeline profiler', () => {
             524288 => "Transition",
             1048576 => "Transition",
             2097152 => "Transition",
-            4194304 => "Transition",
+            4194304 => "Retry",
             8388608 => "Retry",
             16777216 => "Retry",
             33554432 => "Retry",
-            67108864 => "Retry",
-            134217728 => "SelectiveHydration",
-            268435456 => "IdleHydration",
-            536870912 => "Idle",
-            1073741824 => "Offscreen",
+            67108864 => "SelectiveHydration",
+            134217728 => "IdleHydration",
+            268435456 => "Idle",
+            536870912 => "Offscreen",
+            1073741824 => "Deferred",
           },
           "laneToReactMeasureMap": Map {
             1 => [],
diff --git a/packages/react-reconciler/src/ReactFiberHooks.js b/packages/react-reconciler/src/ReactFiberHooks.js
index d2c456a5f9c9a..c3c85af085932 100644
--- a/packages/react-reconciler/src/ReactFiberHooks.js
+++ b/packages/react-reconciler/src/ReactFiberHooks.js
@@ -61,16 +61,17 @@ import {
   NoLane,
   SyncLane,
   OffscreenLane,
+  DeferredLane,
   NoLanes,
   isSubsetOfLanes,
   includesBlockingLane,
   includesOnlyNonUrgentLanes,
-  claimNextTransitionLane,
   mergeLanes,
   removeLanes,
   intersectLanes,
   isTransitionLane,
   markRootEntangled,
+  includesSomeLane,
 } from './ReactFiberLane';
 import {
   ContinuousEventPriority,
@@ -101,6 +102,7 @@ import {
   getWorkInProgressRootRenderLanes,
   scheduleUpdateOnFiber,
   requestUpdateLane,
+  requestDeferredLane,
   markSkippedUpdateLanes,
   isInvalidExecutionContextForEventFunction,
 } from './ReactFiberWorkLoop';
@@ -2665,16 +2667,21 @@ function rerenderDeferredValue<T>(value: T, initialValue?: T): T {
 }
 
 function mountDeferredValueImpl<T>(hook: Hook, value: T, initialValue?: T): T {
-  if (enableUseDeferredValueInitialArg && initialValue !== undefined) {
+  if (
+    enableUseDeferredValueInitialArg &&
     // When `initialValue` is provided, we defer the initial render even if the
     // current render is not synchronous.
-    // TODO: However, to avoid waterfalls, we should not defer if this render
-    // was itself spawned by an earlier useDeferredValue. Plan is to add a
-    // Deferred lane to track this.
+    initialValue !== undefined &&
+    // However, to avoid waterfalls, we do not defer if this render
+    // was itself spawned by an earlier useDeferredValue. Check if DeferredLane
+    // is part of the render lanes.
+    !includesSomeLane(renderLanes, DeferredLane)
+  ) {
+    // Render with the initial value
     hook.memoizedState = initialValue;
 
-    // Schedule a deferred render
-    const deferredLane = claimNextTransitionLane();
+    // Schedule a deferred render to switch to the final value.
+    const deferredLane = requestDeferredLane();
     currentlyRenderingFiber.lanes = mergeLanes(
       currentlyRenderingFiber.lanes,
       deferredLane,
@@ -2710,7 +2717,7 @@ function updateDeferredValueImpl<T>(
 
     if (!is(value, prevValue)) {
       // Schedule a deferred render
-      const deferredLane = claimNextTransitionLane();
+      const deferredLane = requestDeferredLane();
       currentlyRenderingFiber.lanes = mergeLanes(
         currentlyRenderingFiber.lanes,
         deferredLane,
diff --git a/packages/react-reconciler/src/ReactFiberLane.js b/packages/react-reconciler/src/ReactFiberLane.js
index 21055ac82f7e9..864edf6ee676b 100644
--- a/packages/react-reconciler/src/ReactFiberLane.js
+++ b/packages/react-reconciler/src/ReactFiberLane.js
@@ -52,7 +52,7 @@ export const SyncUpdateLanes: Lane = enableUnifiedSyncLane
   : SyncLane;
 
 const TransitionHydrationLane: Lane = /*                */ 0b0000000000000000000000001000000;
-const TransitionLanes: Lanes = /*                       */ 0b0000000011111111111111110000000;
+const TransitionLanes: Lanes = /*                       */ 0b0000000001111111111111110000000;
 const TransitionLane1: Lane = /*                        */ 0b0000000000000000000000010000000;
 const TransitionLane2: Lane = /*                        */ 0b0000000000000000000000100000000;
 const TransitionLane3: Lane = /*                        */ 0b0000000000000000000001000000000;
@@ -68,24 +68,24 @@ const TransitionLane12: Lane = /*                       */ 0b0000000000001000000
 const TransitionLane13: Lane = /*                       */ 0b0000000000010000000000000000000;
 const TransitionLane14: Lane = /*                       */ 0b0000000000100000000000000000000;
 const TransitionLane15: Lane = /*                       */ 0b0000000001000000000000000000000;
-const TransitionLane16: Lane = /*                       */ 0b0000000010000000000000000000000;
 
-const RetryLanes: Lanes = /*                            */ 0b0000111100000000000000000000000;
-const RetryLane1: Lane = /*                             */ 0b0000000100000000000000000000000;
-const RetryLane2: Lane = /*                             */ 0b0000001000000000000000000000000;
-const RetryLane3: Lane = /*                             */ 0b0000010000000000000000000000000;
-const RetryLane4: Lane = /*                             */ 0b0000100000000000000000000000000;
+const RetryLanes: Lanes = /*                            */ 0b0000011110000000000000000000000;
+const RetryLane1: Lane = /*                             */ 0b0000000010000000000000000000000;
+const RetryLane2: Lane = /*                             */ 0b0000000100000000000000000000000;
+const RetryLane3: Lane = /*                             */ 0b0000001000000000000000000000000;
+const RetryLane4: Lane = /*                             */ 0b0000010000000000000000000000000;
 
 export const SomeRetryLane: Lane = RetryLane1;
 
-export const SelectiveHydrationLane: Lane = /*          */ 0b0001000000000000000000000000000;
+export const SelectiveHydrationLane: Lane = /*          */ 0b0000100000000000000000000000000;
 
-const NonIdleLanes: Lanes = /*                          */ 0b0001111111111111111111111111111;
+const NonIdleLanes: Lanes = /*                          */ 0b0000111111111111111111111111111;
 
-export const IdleHydrationLane: Lane = /*               */ 0b0010000000000000000000000000000;
-export const IdleLane: Lane = /*                        */ 0b0100000000000000000000000000000;
+export const IdleHydrationLane: Lane = /*               */ 0b0001000000000000000000000000000;
+export const IdleLane: Lane = /*                        */ 0b0010000000000000000000000000000;
 
-export const OffscreenLane: Lane = /*                   */ 0b1000000000000000000000000000000;
+export const OffscreenLane: Lane = /*                   */ 0b0100000000000000000000000000000;
+export const DeferredLane: Lane = /*                    */ 0b1000000000000000000000000000000;
 
 // Any lane that might schedule an update. This is used to detect infinite
 // update loops, so it doesn't include hydration lanes or retries.
@@ -135,6 +135,9 @@ export function getLabelForLane(lane: Lane): string | void {
     if (lane & OffscreenLane) {
       return 'Offscreen';
     }
+    if (lane & DeferredLane) {
+      return 'Deferred';
+    }
   }
 }
 
@@ -180,7 +183,6 @@ function getHighestPriorityLanes(lanes: Lanes | Lane): Lanes {
     case TransitionLane13:
     case TransitionLane14:
     case TransitionLane15:
-    case TransitionLane16:
       return lanes & TransitionLanes;
     case RetryLane1:
     case RetryLane2:
@@ -195,6 +197,10 @@ function getHighestPriorityLanes(lanes: Lanes | Lane): Lanes {
       return IdleLane;
     case OffscreenLane:
       return OffscreenLane;
+    case DeferredLane:
+      // This shouldn't be reachable because deferred work is always entangled
+      // with something else.
+      return NoLanes;
     default:
       if (__DEV__) {
         console.error(
@@ -367,7 +373,6 @@ function computeExpirationTime(lane: Lane, currentTime: number) {
     case TransitionLane13:
     case TransitionLane14:
     case TransitionLane15:
-    case TransitionLane16:
       return currentTime + 5000;
     case RetryLane1:
     case RetryLane2:
@@ -383,6 +388,7 @@ function computeExpirationTime(lane: Lane, currentTime: number) {
     case IdleHydrationLane:
     case IdleLane:
     case OffscreenLane:
+    case DeferredLane:
       // Anything idle priority or lower should never expire.
       return NoTimestamp;
     default:
@@ -616,7 +622,11 @@ export function markRootUpdated(root: FiberRoot, updateLane: Lane) {
   }
 }
 
-export function markRootSuspended(root: FiberRoot, suspendedLanes: Lanes) {
+export function markRootSuspended(
+  root: FiberRoot,
+  suspendedLanes: Lanes,
+  spawnedLane: Lane,
+) {
   root.suspendedLanes |= suspendedLanes;
   root.pingedLanes &= ~suspendedLanes;
 
@@ -631,13 +641,21 @@ export function markRootSuspended(root: FiberRoot, suspendedLanes: Lanes) {
 
     lanes &= ~lane;
   }
+
+  if (spawnedLane !== NoLane) {
+    markSpawnedDeferredLane(root, spawnedLane, suspendedLanes);
+  }
 }
 
 export function markRootPinged(root: FiberRoot, pingedLanes: Lanes) {
   root.pingedLanes |= root.suspendedLanes & pingedLanes;
 }
 
-export function markRootFinished(root: FiberRoot, remainingLanes: Lanes) {
+export function markRootFinished(
+  root: FiberRoot,
+  remainingLanes: Lanes,
+  spawnedLane: Lane,
+) {
   const noLongerPendingLanes = root.pendingLanes & ~remainingLanes;
 
   root.pendingLanes = remainingLanes;
@@ -683,6 +701,37 @@ export function markRootFinished(root: FiberRoot, remainingLanes: Lanes) {
 
     lanes &= ~lane;
   }
+
+  if (spawnedLane !== NoLane) {
+    markSpawnedDeferredLane(
+      root,
+      spawnedLane,
+      // This render finished successfully without suspending, so we don't need
+      // to entangle the spawned task with the parent task.
+      NoLanes,
+    );
+  }
+}
+
+function markSpawnedDeferredLane(
+  root: FiberRoot,
+  spawnedLane: Lane,
+  entangledLanes: Lanes,
+) {
+  // This render spawned a deferred task. Mark it as pending.
+  root.pendingLanes |= spawnedLane;
+  root.suspendedLanes &= ~spawnedLane;
+
+  // Entangle the spawned lane with the DeferredLane bit so that we know it
+  // was the result of another render. This lets us avoid a useDeferredValue
+  // waterfall — only the first level will defer.
+  const spawnedLaneIndex = laneToIndex(spawnedLane);
+  root.entangledLanes |= spawnedLane;
+  root.entanglements[spawnedLaneIndex] |=
+    DeferredLane |
+    // If the parent render task suspended, we must also entangle those lanes
+    // with the spawned task.
+    entangledLanes;
 }
 
 export function markRootEntangled(root: FiberRoot, entangledLanes: Lanes) {
@@ -795,7 +844,6 @@ export function getBumpedLaneForHydration(
       case TransitionLane13:
       case TransitionLane14:
       case TransitionLane15:
-      case TransitionLane16:
       case RetryLane1:
       case RetryLane2:
       case RetryLane3:
diff --git a/packages/react-reconciler/src/ReactFiberWorkLoop.js b/packages/react-reconciler/src/ReactFiberWorkLoop.js
index cb217d04eba19..fbfa153b71785 100644
--- a/packages/react-reconciler/src/ReactFiberWorkLoop.js
+++ b/packages/react-reconciler/src/ReactFiberWorkLoop.js
@@ -366,6 +366,8 @@ let workInProgressRootInterleavedUpdatedLanes: Lanes = NoLanes;
 let workInProgressRootRenderPhaseUpdatedLanes: Lanes = NoLanes;
 // Lanes that were pinged (in an interleaved event) during this render.
 let workInProgressRootPingedLanes: Lanes = NoLanes;
+// If this lane scheduled deferred work, this is the lane of the deferred task.
+let workInProgressDeferredLane: Lane = NoLane;
 // Errors that are thrown during the render phase.
 let workInProgressRootConcurrentErrors: Array<CapturedValue<mixed>> | null =
   null;
@@ -683,6 +685,27 @@ function requestRetryLane(fiber: Fiber) {
   return claimNextRetryLane();
 }
 
+export function requestDeferredLane(): Lane {
+  if (workInProgressDeferredLane === NoLane) {
+    // If there are multiple useDeferredValue hooks in the same render, the
+    // tasks that they spawn should all be batched together, so they should all
+    // receive the same lane.
+    if (includesSomeLane(workInProgressRootRenderLanes, OffscreenLane)) {
+      // There's only one OffscreenLane, so if it contains deferred work, we
+      // should just reschedule using the same lane.
+      // TODO: We also use OffscreenLane for hydration, on the basis that the
+      // initial HTML is the same as the hydrated UI, but since the deferred
+      // task will change the UI, it should be treated like an update. Use
+      // TransitionHydrationLane to trigger selective hydration.
+      workInProgressDeferredLane = OffscreenLane;
+    } else {
+      // Everything else is spawned as a transition.
+      workInProgressDeferredLane = requestTransitionLane();
+    }
+  }
+  return workInProgressDeferredLane;
+}
+
 export function scheduleUpdateOnFiber(
   root: FiberRoot,
   fiber: Fiber,
@@ -712,7 +735,11 @@ export function scheduleUpdateOnFiber(
     // The incoming update might unblock the current render. Interrupt the
     // current attempt and restart from the top.
     prepareFreshStack(root, NoLanes);
-    markRootSuspended(root, workInProgressRootRenderLanes);
+    markRootSuspended(
+      root,
+      workInProgressRootRenderLanes,
+      workInProgressDeferredLane,
+    );
   }
 
   // Mark that the root has a pending update.
@@ -792,7 +819,11 @@ export function scheduleUpdateOnFiber(
         // effect of interrupting the current render and switching to the update.
         // TODO: Make sure this doesn't override pings that happen while we've
         // already started rendering.
-        markRootSuspended(root, workInProgressRootRenderLanes);
+        markRootSuspended(
+          root,
+          workInProgressRootRenderLanes,
+          workInProgressDeferredLane,
+        );
       }
     }
 
@@ -903,7 +934,7 @@ export function performConcurrentWorkOnRoot(
         // The render unwound without completing the tree. This happens in special
         // cases where need to exit the current render without producing a
         // consistent tree or committing.
-        markRootSuspended(root, lanes);
+        markRootSuspended(root, lanes, NoLane);
       } else {
         // The render completed.
 
@@ -947,7 +978,7 @@ export function performConcurrentWorkOnRoot(
         if (exitStatus === RootFatalErrored) {
           const fatalError = workInProgressRootFatalError;
           prepareFreshStack(root, NoLanes);
-          markRootSuspended(root, lanes);
+          markRootSuspended(root, lanes, NoLane);
           ensureRootIsScheduled(root);
           throw fatalError;
         }
@@ -1074,7 +1105,7 @@ function finishConcurrentRender(
         // This is a transition, so we should exit without committing a
         // placeholder and without scheduling a timeout. Delay indefinitely
         // until we receive more data.
-        markRootSuspended(root, lanes);
+        markRootSuspended(root, lanes, workInProgressDeferredLane);
         return;
       }
       // Commit the placeholder.
@@ -1096,6 +1127,7 @@ function finishConcurrentRender(
       root,
       workInProgressRootRecoverableErrors,
       workInProgressTransitions,
+      workInProgressDeferredLane,
     );
   } else {
     if (
@@ -1109,7 +1141,7 @@ function finishConcurrentRender(
 
       // Don't bother with a very short suspense time.
       if (msUntilTimeout > 10) {
-        markRootSuspended(root, lanes);
+        markRootSuspended(root, lanes, workInProgressDeferredLane);
 
         const nextLanes = getNextLanes(root, NoLanes);
         if (nextLanes !== NoLanes) {
@@ -1131,6 +1163,7 @@ function finishConcurrentRender(
             workInProgressRootRecoverableErrors,
             workInProgressTransitions,
             lanes,
+            workInProgressDeferredLane,
           ),
           msUntilTimeout,
         );
@@ -1143,6 +1176,7 @@ function finishConcurrentRender(
       workInProgressRootRecoverableErrors,
       workInProgressTransitions,
       lanes,
+      workInProgressDeferredLane,
     );
   }
 }
@@ -1153,6 +1187,7 @@ function commitRootWhenReady(
   recoverableErrors: Array<CapturedValue<mixed>> | null,
   transitions: Array<Transition> | null,
   lanes: Lanes,
+  spawnedLane: Lane,
 ) {
   // TODO: Combine retry throttling with Suspensey commits. Right now they run
   // one after the other.
@@ -1180,13 +1215,13 @@ function commitRootWhenReady(
       root.cancelPendingCommit = schedulePendingCommit(
         commitRoot.bind(null, root, recoverableErrors, transitions),
       );
-      markRootSuspended(root, lanes);
+      markRootSuspended(root, lanes, spawnedLane);
       return;
     }
   }
 
   // Otherwise, commit immediately.
-  commitRoot(root, recoverableErrors, transitions);
+  commitRoot(root, recoverableErrors, transitions, spawnedLane);
 }
 
 function isRenderConsistentWithExternalStores(finishedWork: Fiber): boolean {
@@ -1242,7 +1277,11 @@ function isRenderConsistentWithExternalStores(finishedWork: Fiber): boolean {
   return true;
 }
 
-function markRootSuspended(root: FiberRoot, suspendedLanes: Lanes) {
+function markRootSuspended(
+  root: FiberRoot,
+  suspendedLanes: Lanes,
+  spawnedLane: Lane,
+) {
   // When suspending, we should always exclude lanes that were pinged or (more
   // rarely, since we try to avoid it) updated during the render phase.
   // TODO: Lol maybe there's a better way to factor this besides this
@@ -1252,7 +1291,7 @@ function markRootSuspended(root: FiberRoot, suspendedLanes: Lanes) {
     suspendedLanes,
     workInProgressRootInterleavedUpdatedLanes,
   );
-  markRootSuspended_dontCallThisOneDirectly(root, suspendedLanes);
+  markRootSuspended_dontCallThisOneDirectly(root, suspendedLanes, spawnedLane);
 }
 
 // This is the entry point for synchronous tasks that don't go
@@ -1302,7 +1341,7 @@ export function performSyncWorkOnRoot(root: FiberRoot, lanes: Lanes): null {
   if (exitStatus === RootFatalErrored) {
     const fatalError = workInProgressRootFatalError;
     prepareFreshStack(root, NoLanes);
-    markRootSuspended(root, lanes);
+    markRootSuspended(root, lanes, NoLane);
     ensureRootIsScheduled(root);
     throw fatalError;
   }
@@ -1311,7 +1350,7 @@ export function performSyncWorkOnRoot(root: FiberRoot, lanes: Lanes): null {
     // The render unwound without completing the tree. This happens in special
     // cases where need to exit the current render without producing a
     // consistent tree or committing.
-    markRootSuspended(root, lanes);
+    markRootSuspended(root, lanes, NoLane);
     ensureRootIsScheduled(root);
     return null;
   }
@@ -1325,6 +1364,7 @@ export function performSyncWorkOnRoot(root: FiberRoot, lanes: Lanes): null {
     root,
     workInProgressRootRecoverableErrors,
     workInProgressTransitions,
+    workInProgressDeferredLane,
   );
 
   // Before exiting, make sure there's a callback scheduled for the next
@@ -1537,6 +1577,7 @@ function prepareFreshStack(root: FiberRoot, lanes: Lanes): Fiber {
   workInProgressRootInterleavedUpdatedLanes = NoLanes;
   workInProgressRootRenderPhaseUpdatedLanes = NoLanes;
   workInProgressRootPingedLanes = NoLanes;
+  workInProgressDeferredLane = NoLane;
   workInProgressRootConcurrentErrors = null;
   workInProgressRootRecoverableErrors = null;
 
@@ -1808,9 +1849,9 @@ export function renderDidSuspendDelayIfPossible(): void {
   // Check if there are updates that we skipped tree that might have unblocked
   // this render.
   if (
-    workInProgressRoot !== null &&
     (includesNonIdleWork(workInProgressRootSkippedLanes) ||
-      includesNonIdleWork(workInProgressRootInterleavedUpdatedLanes))
+      includesNonIdleWork(workInProgressRootInterleavedUpdatedLanes)) &&
+    workInProgressRoot !== null
   ) {
     // Mark the current render as suspended so that we switch to working on
     // the updates that were skipped. Usually we only suspend at the end of
@@ -1821,8 +1862,11 @@ export function renderDidSuspendDelayIfPossible(): void {
     // pinged or updated while we were rendering.
     // TODO: Consider unwinding immediately, using the
     // SuspendedOnHydration mechanism.
-    // $FlowFixMe[incompatible-call] need null check workInProgressRoot
-    markRootSuspended(workInProgressRoot, workInProgressRootRenderLanes);
+    markRootSuspended(
+      workInProgressRoot,
+      workInProgressRootRenderLanes,
+      workInProgressDeferredLane,
+    );
   }
 }
 
@@ -2592,6 +2636,7 @@ function commitRoot(
   root: FiberRoot,
   recoverableErrors: null | Array<CapturedValue<mixed>>,
   transitions: Array<Transition> | null,
+  spawnedLane: Lane,
 ) {
   // TODO: This no longer makes any sense. We already wrap the mutation and
   // layout phases. Should be able to remove.
@@ -2606,6 +2651,7 @@ function commitRoot(
       recoverableErrors,
       transitions,
       previousUpdateLanePriority,
+      spawnedLane,
     );
   } finally {
     ReactCurrentBatchConfig.transition = prevTransition;
@@ -2620,6 +2666,7 @@ function commitRootImpl(
   recoverableErrors: null | Array<CapturedValue<mixed>>,
   transitions: Array<Transition> | null,
   renderPriorityLevel: EventPriority,
+  spawnedLane: Lane,
 ) {
   do {
     // `flushPassiveEffects` will call `flushSyncUpdateQueue` at the end, which
@@ -2696,7 +2743,7 @@ function commitRootImpl(
   const concurrentlyUpdatedLanes = getConcurrentlyUpdatedLanes();
   remainingLanes = mergeLanes(remainingLanes, concurrentlyUpdatedLanes);
 
-  markRootFinished(root, remainingLanes);
+  markRootFinished(root, remainingLanes, spawnedLane);
 
   if (root === workInProgressRoot) {
     // We can reset these now that they are finished.
diff --git a/packages/react-reconciler/src/__tests__/DebugTracing-test.internal.js b/packages/react-reconciler/src/__tests__/DebugTracing-test.internal.js
index 39d42d254f610..f8026d6ea9fab 100644
--- a/packages/react-reconciler/src/__tests__/DebugTracing-test.internal.js
+++ b/packages/react-reconciler/src/__tests__/DebugTracing-test.internal.js
@@ -19,7 +19,7 @@ describe('DebugTracing', () => {
 
   const SYNC_LANE_STRING = '0b0000000000000000000000000000010';
   const DEFAULT_LANE_STRING = '0b0000000000000000000000000100000';
-  const RETRY_LANE_STRING = '0b0000000100000000000000000000000';
+  const RETRY_LANE_STRING = '0b0000000010000000000000000000000';
 
   global.IS_REACT_ACT_ENVIRONMENT = true;
 
diff --git a/packages/react-reconciler/src/__tests__/ReactDeferredValue-test.js b/packages/react-reconciler/src/__tests__/ReactDeferredValue-test.js
index c29a9c4287275..76d90f39cf276 100644
--- a/packages/react-reconciler/src/__tests__/ReactDeferredValue-test.js
+++ b/packages/react-reconciler/src/__tests__/ReactDeferredValue-test.js
@@ -15,8 +15,11 @@ let startTransition;
 let useDeferredValue;
 let useMemo;
 let useState;
+let Suspense;
+let Offscreen;
 let assertLog;
 let waitForPaint;
+let textCache;
 
 describe('ReactDeferredValue', () => {
   beforeEach(() => {
@@ -30,17 +33,78 @@ describe('ReactDeferredValue', () => {
     useDeferredValue = React.useDeferredValue;
     useMemo = React.useMemo;
     useState = React.useState;
+    Suspense = React.Suspense;
+    Offscreen = React.unstable_Offscreen;
 
     const InternalTestUtils = require('internal-test-utils');
     assertLog = InternalTestUtils.assertLog;
     waitForPaint = InternalTestUtils.waitForPaint;
+
+    textCache = new Map();
   });
 
+  function resolveText(text) {
+    const record = textCache.get(text);
+    if (record === undefined) {
+      const newRecord = {
+        status: 'resolved',
+        value: text,
+      };
+      textCache.set(text, newRecord);
+    } else if (record.status === 'pending') {
+      const thenable = record.value;
+      record.status = 'resolved';
+      record.value = text;
+      thenable.pings.forEach(t => t());
+    }
+  }
+
+  function readText(text) {
+    const record = textCache.get(text);
+    if (record !== undefined) {
+      switch (record.status) {
+        case 'pending':
+          Scheduler.log(`Suspend! [${text}]`);
+          throw record.value;
+        case 'rejected':
+          throw record.value;
+        case 'resolved':
+          return record.value;
+      }
+    } else {
+      Scheduler.log(`Suspend! [${text}]`);
+      const thenable = {
+        pings: [],
+        then(resolve) {
+          if (newRecord.status === 'pending') {
+            thenable.pings.push(resolve);
+          } else {
+            Promise.resolve().then(() => resolve(newRecord.value));
+          }
+        },
+      };
+
+      const newRecord = {
+        status: 'pending',
+        value: thenable,
+      };
+      textCache.set(text, newRecord);
+
+      throw thenable;
+    }
+  }
+
   function Text({text}) {
     Scheduler.log(text);
     return text;
   }
 
+  function AsyncText({text}) {
+    readText(text);
+    Scheduler.log(text);
+    return text;
+  }
+
   it('does not cause an infinite defer loop if the original value isn\t memoized', async () => {
     function App({value}) {
       // The object passed to useDeferredValue is never the same as the previous
@@ -341,4 +405,215 @@ describe('ReactDeferredValue', () => {
     assertLog(['Final']);
     expect(root).toMatchRenderedOutput('Final');
   });
+
+  // @gate enableUseDeferredValueInitialArg
+  it(
+    'if a suspended render spawns a deferred task, we can switch to the ' +
+      'deferred task without finishing the original one',
+    async () => {
+      function App() {
+        const text = useDeferredValue('Final', 'Loading...');
+        return <AsyncText text={text} />;
+      }
+
+      const root = ReactNoop.createRoot();
+      await act(() => root.render(<App />));
+      assertLog([
+        'Suspend! [Loading...]',
+        // The initial value suspended, so we attempt the final value, which
+        // also suspends.
+        'Suspend! [Final]',
+      ]);
+      expect(root).toMatchRenderedOutput(null);
+
+      // The final value loads, so we can skip the initial value entirely.
+      await act(() => resolveText('Final'));
+      assertLog(['Final']);
+      expect(root).toMatchRenderedOutput('Final');
+
+      // When the initial value finally loads, nothing happens because we no
+      // longer need it.
+      await act(() => resolveText('Loading...'));
+      assertLog([]);
+      expect(root).toMatchRenderedOutput('Final');
+    },
+  );
+
+  // @gate enableUseDeferredValueInitialArg
+  it(
+    'if a suspended render spawns a deferred task that also suspends, we can ' +
+      'finish the original task if that one loads first',
+    async () => {
+      function App() {
+        const text = useDeferredValue('Final', 'Loading...');
+        return <AsyncText text={text} />;
+      }
+
+      const root = ReactNoop.createRoot();
+      await act(() => root.render(<App />));
+      assertLog([
+        'Suspend! [Loading...]',
+        // The initial value suspended, so we attempt the final value, which
+        // also suspends.
+        'Suspend! [Final]',
+      ]);
+      expect(root).toMatchRenderedOutput(null);
+
+      // The initial value resolves first, so we render that.
+      await act(() => resolveText('Loading...'));
+      assertLog([
+        'Loading...',
+        // Still waiting for the final value.
+        'Suspend! [Final]',
+      ]);
+      expect(root).toMatchRenderedOutput('Loading...');
+
+      // The final value loads, so we can switch to that.
+      await act(() => resolveText('Final'));
+      assertLog(['Final']);
+      expect(root).toMatchRenderedOutput('Final');
+    },
+  );
+
+  // @gate enableUseDeferredValueInitialArg
+  it(
+    'if there are multiple useDeferredValues in the same tree, only the ' +
+      'first level defers; subsequent ones go straight to the final value, to ' +
+      'avoid a waterfall',
+    async () => {
+      function App() {
+        const showContent = useDeferredValue(true, false);
+        if (!showContent) {
+          return <Text text="App Preview" />;
+        }
+        return <Content />;
+      }
+
+      function Content() {
+        const text = useDeferredValue('Content', 'Content Preview');
+        return <AsyncText text={text} />;
+      }
+
+      const root = ReactNoop.createRoot();
+      resolveText('App Preview');
+
+      await act(() => root.render(<App />));
+      assertLog([
+        // The App shows an immediate preview
+        'App Preview',
+        // Then we switch to showing the content. The Content component also
+        // contains a useDeferredValue, but since we already showed a preview
+        // in a parent component, we skip the preview in the inner one and
+        // go straight to attempting the final value.
+        //
+        // (Note that this is intentionally different from how nested Suspense
+        // boundaries work, where we always prefer to show the innermost
+        // loading state.)
+        'Suspend! [Content]',
+      ]);
+      // Still showing the App preview state because the inner
+      // content suspended.
+      expect(root).toMatchRenderedOutput('App Preview');
+
+      // Finish loading the content
+      await act(() => resolveText('Content'));
+      // We didn't even attempt to render Content Preview.
+      assertLog(['Content']);
+      expect(root).toMatchRenderedOutput('Content');
+    },
+  );
+
+  // @gate enableUseDeferredValueInitialArg
+  it('avoids a useDeferredValue waterfall when separated by a Suspense boundary', async () => {
+    // Same as the previous test but with a Suspense boundary separating the
+    // two useDeferredValue hooks.
+    function App() {
+      const showContent = useDeferredValue(true, false);
+      if (!showContent) {
+        return <Text text="App Preview" />;
+      }
+      return (
+        <Suspense fallback={<Text text="Loading..." />}>
+          <Content />
+        </Suspense>
+      );
+    }
+
+    function Content() {
+      const text = useDeferredValue('Content', 'Content Preview');
+      return <AsyncText text={text} />;
+    }
+
+    const root = ReactNoop.createRoot();
+    resolveText('App Preview');
+
+    await act(() => root.render(<App />));
+    assertLog([
+      // The App shows an immediate preview
+      'App Preview',
+      // Then we switch to showing the content. The Content component also
+      // contains a useDeferredValue, but since we already showed a preview
+      // in a parent component, we skip the preview in the inner one and
+      // go straight to attempting the final value.
+      'Suspend! [Content]',
+      'Loading...',
+    ]);
+    // The content suspended, so we show a Suspense fallback
+    expect(root).toMatchRenderedOutput('Loading...');
+
+    // Finish loading the content
+    await act(() => resolveText('Content'));
+    // We didn't even attempt to render Content Preview.
+    assertLog(['Content']);
+    expect(root).toMatchRenderedOutput('Content');
+  });
+
+  // @gate enableUseDeferredValueInitialArg
+  // @gate enableOffscreen
+  it('useDeferredValue can spawn a deferred task while prerendering a hidden tree', async () => {
+    function App() {
+      const text = useDeferredValue('Final', 'Preview');
+      return (
+        <div>
+          <AsyncText text={text} />
+        </div>
+      );
+    }
+
+    let revealContent;
+    function Container({children}) {
+      const [shouldShow, setState] = useState(false);
+      revealContent = () => setState(true);
+      return (
+        <Offscreen mode={shouldShow ? 'visible' : 'hidden'}>
+          {children}
+        </Offscreen>
+      );
+    }
+
+    const root = ReactNoop.createRoot();
+
+    // Prerender a hidden tree
+    resolveText('Preview');
+    await act(() =>
+      root.render(
+        <Container>
+          <App />
+        </Container>,
+      ),
+    );
+    assertLog(['Preview', 'Suspend! [Final]']);
+    expect(root).toMatchRenderedOutput(<div hidden={true}>Preview</div>);
+
+    // Finish loading the content
+    await act(() => resolveText('Final'));
+    assertLog(['Final']);
+    expect(root).toMatchRenderedOutput(<div hidden={true}>Final</div>);
+
+    // Now reveal the hidden tree. It should toggle the visibility without
+    // having to re-render anything inside the prerendered tree.
+    await act(() => revealContent());
+    assertLog([]);
+    expect(root).toMatchRenderedOutput(<div>Final</div>);
+  });
 });