diff --git a/dashcaddy-api/__tests__/health-checker-incident-parity.test.js b/dashcaddy-api/__tests__/health-checker-incident-parity.test.js
new file mode 100644
index 0000000..3e3ebcb
--- /dev/null
+++ b/dashcaddy-api/__tests__/health-checker-incident-parity.test.js
@@ -0,0 +1,186 @@
+/**
+ * Tests for DC-090: outage incidents follow the DISPLAYED (post-hysteresis)
+ * status — the same signal that flips the dashboard badge.
+ *
+ *   - A single raw "down" blip that hysteresis suppresses opens NO outage
+ *     incident (the DC-089-noted raw-transition bug).
+ *   - A suppressed blip does not resolve a real open outage (UP_THRESHOLD=2).
+ *   - DOWN_THRESHOLD consecutive downs open exactly ONE outage incident.
+ *   - The incident payload carries the displayed snapshot, not the raw probe.
+ *   - Direct callers without hysteresis state keep legacy raw semantics.
+ *
+ * The probe() helper replicates checkService's exact call order: capture the
+ * pre-probe raw + displayed state, recordStatus (updates both maps), then
+ * checkForIncidents with both previous states.
+ */
+
+'use strict';
+
+const path = require('path');
+const fs = require('fs');
+const os = require('os');
+
+// Use an isolated data dir so test history doesn't pollute the real one.
+const tmpDir = fs.mkdtempSync(path.join(os.tmpdir(), 'dashcaddy-incpar-'));
+process.env.HEALTH_DATA_DIR = tmpDir;
+process.env.HEALTH_CONFIG_FILE = path.join(tmpDir, 'health-config.json');
+process.env.HEALTH_HISTORY_FILE = path.join(tmpDir, 'health-history.json');
+
+// Module exports a singleton instance, not a class. Reset per-test state by
+// replacing the relevant maps on the singleton in beforeEach.
+const healthCheckerSingleton = require('../src/monitoring/health-checker');
+const originalDownThreshold = process.env.HEALTH_DOWN_THRESHOLD;
+const originalUpThreshold = process.env.HEALTH_UP_THRESHOLD;
+
+function restoreEnv(name, value) {
+  if (value === undefined) delete process.env[name];
+  else process.env[name] = value;
+}
+
+function makeUp(serviceId = 'svc1') {
+  return {
+    serviceId,
+    timestamp: new Date().toISOString(),
+    status: 'up',
+    responseTime: 50,
+    statusCode: 200,
+    message: 'Service is healthy',
+    details: { headers: {}, bodyLength: 12 }
+  };
+}
+
+function makeDown(serviceId = 'svc1') {
+  return {
+    serviceId,
+    timestamp: new Date().toISOString(),
+    status: 'down',
+    responseTime: 50,
+    statusCode: 500,
+    message: 'fail',
+    details: { headers: {}, bodyLength: 0 }
+  };
+}
+
+describe('DC-090: outage incidents follow the displayed (hysteresis) status', () => {
+  let hc;
+  let incidentCreatedSpy;
+  let incidentResolvedSpy;
+
+  beforeEach(() => {
+    healthCheckerSingleton.displayedStatus = new Map();
+    healthCheckerSingleton.consecutiveSinceChange = new Map();
+    healthCheckerSingleton.currentStatus = new Map();
+    healthCheckerSingleton.history = {};
+    healthCheckerSingleton.incidents = [];
+    healthCheckerSingleton.removeAllListeners('incident-created');
+    healthCheckerSingleton.removeAllListeners('incident-resolved');
+    incidentCreatedSpy = jest.fn();
+    incidentResolvedSpy = jest.fn();
+    healthCheckerSingleton.on('incident-created', incidentCreatedSpy);
+    healthCheckerSingleton.on('incident-resolved', incidentResolvedSpy);
+    hc = healthCheckerSingleton;
+  });
+
+  afterEach(() => {
+    restoreEnv('HEALTH_DOWN_THRESHOLD', originalDownThreshold);
+    restoreEnv('HEALTH_UP_THRESHOLD', originalUpThreshold);
+  });
+
+  afterAll(() => {
+    fs.rmSync(tmpDir, { recursive: true, force: true });
+  });
+
+  // Replicates checkService's record+incident sequence for one raw probe.
+  function probe(status, config = {}) {
+    const previousStatus = hc.currentStatus.get(status.serviceId);
+    const previousDisplayed = hc.displayedStatus.get(status.serviceId) || null;
+    hc.recordStatus(status.serviceId, status);
+    hc.checkForIncidents(status.serviceId, status, config, previousStatus, previousDisplayed);
+  }
+
+  test('a single down blip between two ups opens NO outage incident', () => {
+    probe(makeUp());      // baseline: displayed up
+    probe(makeDown());    // blip — hysteresis keeps displayed up
+    probe(makeUp());      // recovered
+    expect(hc.incidents).toHaveLength(0);
+    expect(incidentCreatedSpy).not.toHaveBeenCalled();
+  });
+
+  test('DOWN_THRESHOLD consecutive downs open exactly one outage incident (critical)', () => {
+    probe(makeUp());
+    probe(makeDown());    // counter=1, displayed still up
+    probe(makeDown());    // counter=2 → displayed flips down → incident
+    expect(hc.incidents).toHaveLength(1);
+    const incident = hc.incidents[0];
+    expect(incident.type).toBe('outage');
+    expect(incident.severity).toBe('critical');
+    expect(incident.status).toBe('open');
+    expect(incidentCreatedSpy).toHaveBeenCalledTimes(1);
+
+    probe(makeDown());    // still down — no new transition, no second incident
+    expect(hc.incidents).toHaveLength(1);
+    expect(incident.occurrences).toBe(1);  // occurrences count displayed flips, not raw probes
+    expect(incidentCreatedSpy).toHaveBeenCalledTimes(1);
+  });
+
+  test('the outage incident payload carries the displayed snapshot, not the raw blip', () => {
+    probe(makeUp());
+    const blip = makeDown();
+    blip.statusCode = 599;
+    probe(blip);          // suppressed blip — must not appear in any incident
+    probe(makeDown());    // flip
+    expect(hc.incidents).toHaveLength(1);
+    // The incident's details snapshot is the probe that FLIPPED the displayed
+    // state (the second down), not the earlier suppressed blip.
+    expect(hc.incidents[0].details.statusCode).not.toBe(599);
+  });
+
+  test('a suppressed up blip does not resolve a real open outage (UP_THRESHOLD=2)', () => {
+    process.env.HEALTH_UP_THRESHOLD = '2';
+    jest.resetModules();
+    const hc2 = require('../src/monitoring/health-checker');
+    hc2.displayedStatus = new Map();
+    hc2.consecutiveSinceChange = new Map();
+    hc2.currentStatus = new Map();
+    hc2.history = {};
+    hc2.incidents = [];
+    hc2.removeAllListeners('incident-created');
+    hc2.removeAllListeners('incident-resolved');
+
+    const p2 = (status) => {
+      const prevRaw = hc2.currentStatus.get(status.serviceId);
+      const prevDisp = hc2.displayedStatus.get(status.serviceId) || null;
+      hc2.recordStatus(status.serviceId, status);
+      hc2.checkForIncidents(status.serviceId, status, {}, prevRaw, prevDisp);
+    };
+
+    p2(makeUp());
+    p2(makeDown());
+    p2(makeDown());       // displayed down → outage opens
+    expect(hc2.incidents).toHaveLength(1);
+    expect(hc2.incidents[0].status).toBe('open');
+
+    p2(makeUp());         // counter=1 < UP_THRESHOLD=2 → displayed still down
+    expect(hc2.displayedStatus.get('svc1').status).toBe('down');
+    expect(hc2.incidents[0].status).toBe('open');   // NOT resolved by the blip
+
+    p2(makeUp());         // counter=2 → displayed up → incident resolves
+    expect(hc2.displayedStatus.get('svc1').status).toBe('up');
+    expect(hc2.incidents[0].status).toBe('resolved');
+  });
+
+  test('legacy direct callers (no displayed state) keep raw transition semantics', () => {
+    hc.currentStatus.set('svc1', { status: 'up' });
+    const status = { status: 'down', timestamp: new Date().toISOString(), responseTime: 100 };
+    hc.checkForIncidents('svc1', status, {});   // 4-arg call, no previousDisplayed
+    expect(hc.incidents).toHaveLength(1);
+    expect(hc.incidents[0].type).toBe('outage');
+  });
+
+  test('slow-response detection still fires per-probe regardless of hysteresis', () => {
+    const slowUp = makeUp();
+    slowUp.responseTime = 6000;
+    probe(slowUp, { slowResponseThreshold: 5000 });
+    expect(hc.incidents.some(i => i.type === 'slow-response')).toBe(true);
+  });
+});
diff --git a/dashcaddy-api/__tests__/health-checker.test.js b/dashcaddy-api/__tests__/health-checker.test.js
index 4fdee6a..9c1b6a0 100644
--- a/dashcaddy-api/__tests__/health-checker.test.js
+++ b/dashcaddy-api/__tests__/health-checker.test.js
@@ -204,15 +204,22 @@ describe('HealthChecker', () => {
     });
 
     it('opens and resolves an outage incident across real checkService transitions', async () => {
+      // DC-090: incidents follow the DISPLAYED (post-hysteresis) status.
+      // DOWN_THRESHOLD defaults to 2, so it takes two consecutive failed
+      // probes to flip displayed down and open the outage; one up probe
+      // (UP_THRESHOLD=1) resolves it.
       healthChecker._doRequest = jest.fn()
         .mockResolvedValueOnce({ healthy: true, statusCode: 200, message: 'ok', details: {} })
         .mockResolvedValueOnce({ healthy: false, statusCode: 500, message: 'down', details: {} })
+        .mockResolvedValueOnce({ healthy: false, statusCode: 500, message: 'down', details: {} })
         .mockResolvedValueOnce({ healthy: true, statusCode: 200, message: 'ok', details: {} });
 
       const config = { url: 'http://test.local' };
       await healthChecker.checkService('svc1', config);
       await healthChecker.checkService('svc1', config);
+      expect(healthChecker.incidents).toHaveLength(0);   // one down alone: suppressed blip
 
+      await healthChecker.checkService('svc1', config);  // second down flips displayed → open
       expect(healthChecker.incidents).toHaveLength(1);
       expect(healthChecker.incidents[0]).toMatchObject({
         serviceId: 'svc1',
@@ -220,7 +227,7 @@ describe('HealthChecker', () => {
         status: 'open'
       });
 
-      await healthChecker.checkService('svc1', config);
+      await healthChecker.checkService('svc1', config);  // up resolves
       expect(healthChecker.incidents[0].status).toBe('resolved');
       expect(healthChecker.incidents[0].resolvedAt).toBeDefined();
     });
diff --git a/dashcaddy-api/src/monitoring/health-checker.js b/dashcaddy-api/src/monitoring/health-checker.js
index e1c7eca..bff4492 100644
--- a/dashcaddy-api/src/monitoring/health-checker.js
+++ b/dashcaddy-api/src/monitoring/health-checker.js
@@ -199,8 +199,9 @@ class HealthChecker extends EventEmitter {
       }
 
       const previousStatus = this.currentStatus.get(serviceId);
+      const previousDisplayed = this.displayedStatus.get(serviceId);
       this.recordStatus(serviceId, status);
-      this.checkForIncidents(serviceId, status, config, previousStatus);
+      this.checkForIncidents(serviceId, status, config, previousStatus, previousDisplayed);
 
       return status;
     } catch (error) {
@@ -223,8 +224,9 @@ class HealthChecker extends EventEmitter {
       this.consecutiveFailures.set(serviceId, (this.consecutiveFailures.get(serviceId) || 0) + 1);
 
       const previousStatus = this.currentStatus.get(serviceId);
+      const previousDisplayed = this.displayedStatus.get(serviceId);
       this.recordStatus(serviceId, status);
-      this.checkForIncidents(serviceId, status, config, previousStatus);
+      this.checkForIncidents(serviceId, status, config, previousStatus, previousDisplayed);
 
       return status;
     }
@@ -453,10 +455,27 @@ class HealthChecker extends EventEmitter {
   /**
    * Check for incidents (downtime, slow response, etc.)
    */
-  checkForIncidents(serviceId, status, config, previous = this.currentStatus.get(serviceId)) {
+  checkForIncidents(serviceId, status, config, previous = this.currentStatus.get(serviceId), previousDisplayed = null) {
     
-    // Check for status change (up -> down or down -> up)
-    if (previous && previous.status !== status.status) {
+    // DC-090: outage incidents follow the DISPLAYED (post-hysteresis) status —
+    // the same signal that flips the dashboard badge. A single raw "down"
+    // blip that hysteresis suppresses must not open a critical outage
+    // incident (and a suppressed blip must not resolve a real one). When the
+    // caller supplies the pre-probe displayed state (checkService always
+    // does), transitions are evaluated displayed-vs-displayed using the
+    // post-recordStatus state in this.displayedStatus. Direct callers with
+    // no hysteresis state (previousDisplayed === null) keep the legacy
+    // raw-probe transition semantics.
+    if (previousDisplayed) {
+      const displayed = this.displayedStatus.get(serviceId);
+      if (displayed && displayed.status !== previousDisplayed.status) {
+        if (displayed.status === 'down') {
+          this.createIncident(serviceId, 'outage', 'Service is down', displayed);
+        } else if (displayed.status === 'up') {
+          this.resolveIncident(serviceId, 'outage', displayed);
+        }
+      }
+    } else if (previous && previous.status !== status.status) {
       if (status.status === 'down') {
         this.createIncident(serviceId, 'outage', 'Service is down', status);
       } else if (status.status === 'up') {