diff --git a/test/e2e/locality_lb_test.go b/test/e2e/locality_lb_test.go
new file mode 100644
index 000000000..1bc5e42dd
--- /dev/null
+++ b/test/e2e/locality_lb_test.go
@@ -0,0 +1,576 @@
+// +build integ
+
+/*
+ * Copyright The Kmesh Authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at:
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+ package kmesh
+
+ import (
+   "fmt"
+   "os"
+   "path/filepath"
+   "strings"
+   "testing"
+   "time"
+ 
+   "istio.io/istio/pkg/test/framework"
+   "istio.io/istio/pkg/test/shell"
+   "istio.io/istio/pkg/test/util/retry"
+ )
+ 
+ func runCommand(ctx framework.TestContext, cmd string) string {
+   out, err := shell.Execute(true, cmd)
+   if err != nil {
+     ctx.Fatalf("Command %q failed: %v\n%s", cmd, err, out)
+   }
+   ctx.Logf(">>> Command succeeded: %s\n%s", cmd, out)
+   return out
+ }
+
+ func applyManifest(ctx framework.TestContext, ns, mani string) {
+   ctx.Logf(">>> Applying to namespace %q manifest:\n%s", ns, mani)
+   dir := ctx.CreateTmpDirectoryOrFail("kmesh-lb")
+   path := filepath.Join(dir, "m.yaml")
+   if err := os.WriteFile(path, []byte(mani), 0644); err != nil {
+     ctx.Fatalf("WriteFile(%s) failed: %v", path, err)
+   }
+   content, _ := os.ReadFile(path)
+   ctx.Logf(">>> On-disk manifest at %s:\n%s", path, content)
+   runCommand(ctx, fmt.Sprintf("kubectl apply -n %s -f %s", ns, path))
+ }
+
+ func getClusterIP(ctx framework.TestContext, ns, svc string) string {
+   ip := runCommand(ctx, fmt.Sprintf(
+     "kubectl get svc %s -n %s -o jsonpath={.spec.clusterIP}", svc, ns))
+   if ip == "" {
+     ctx.Fatalf("Empty ClusterIP for %s/%s", ns, svc)
+   }
+   if strings.Contains(ip, ":") {
+     ip = "[" + ip + "]"
+   }
+   ctx.Logf("ClusterIP for %s/%s = %s", ns, svc, ip)
+   return ip
+ }
+ 
+ func getSleepPod(ctx framework.TestContext, ns string) string {
+   pod := runCommand(ctx, fmt.Sprintf(
+     "kubectl get pod -n %s -l app=sleep -o jsonpath={.items[0].metadata.name}", ns))
+   if pod == "" {
+     ctx.Fatalf("No sleep pod found in %s", ns)
+   }
+   ctx.Logf("sleep pod = %s", pod)
+   return pod
+ }
+ 
+ func waitForDeployment(ctx framework.TestContext, ns, name string) {
+   runCommand(ctx, fmt.Sprintf(
+     "kubectl wait --for=condition=available deployment/%s -n %s --timeout=120s",
+     name, ns))
+ }
+ 
+ func curlHello(ctx framework.TestContext, ns, pod, fqdn, ip string) (string, error) {
+   cmd := fmt.Sprintf(
+     "kubectl exec -n %s %s -- curl -sSL -v --resolve %s:5000:%s http://%s:5000/hello",
+     ns, pod, fqdn, ip, fqdn)
+   return shell.Execute(false, cmd)
+ }
+ 
+ // Test 1: PreferClose via annotation
+ func TestLocality_PreferClose_Annotation(t *testing.T) {
+   framework.NewTest(t).Run(func(ctx framework.TestContext) {
+     // Label nodes subzone1 (worker) & subzone2 (control-plane)
+     runCommand(ctx, "kubectl label node kmesh-testing-worker topology.kubernetes.io/region=region topology.kubernetes.io/zone=zone1 topology.kubernetes.io/subzone=subzone1 --overwrite")
+     runCommand(ctx, "kubectl label node kmesh-testing-control-plane topology.kubernetes.io/region=region topology.kubernetes.io/zone=zone1 topology.kubernetes.io/subzone=subzone2 --overwrite")
+ 
+     ns, svc := "sample-pc-annot", "helloworld"
+     fqdn := svc + "." + ns + ".svc.cluster.local"
+     localVer, remoteVer := "sub1", "sub2"
+ 
+     runCommand(ctx, "kubectl create namespace "+ns)
+ 
+     // Service with PreferClose via annotation
+     applyManifest(ctx, ns, fmt.Sprintf(`
+ apiVersion: v1
+ kind: Service
+ metadata:
+   name: %s
+   namespace: %s
+   annotations:
+     networking.istio.io/traffic-distribution: PreferClose
+   labels:
+     app: helloworld
+ spec:
+   selector:
+     app: helloworld
+   ports:
+   - name: http
+     port: 5000
+     targetPort: 5000
+ `, svc, ns))
+ 
+     // Local deployment (sub1) on worker
+     applyManifest(ctx, ns, fmt.Sprintf(`
+ apiVersion: apps/v1
+ kind: Deployment
+ metadata:
+   name: helloworld-%s
+   namespace: %s
+   labels:
+     app: helloworld
+     version: %s
+ spec:
+   replicas: 1
+   selector:
+     matchLabels:
+       app: helloworld
+       version: %s
+   template:
+     metadata:
+       labels:
+         app: helloworld
+         version: %s
+     spec:
+       nodeSelector:
+         kubernetes.io/hostname: kmesh-testing-worker
+       containers:
+       - name: helloworld
+         image: docker.io/istio/examples-helloworld-v1
+         imagePullPolicy: IfNotPresent
+         env:
+         - name: SERVICE_VERSION
+           value: %s
+         ports:
+         - containerPort: 5000
+ `, localVer, ns, localVer, localVer, localVer, localVer))
+ 
+     // Remote deployment (sub2) on control-plane (with toleration)
+     applyManifest(ctx, ns, fmt.Sprintf(`
+ apiVersion: apps/v1
+ kind: Deployment
+ metadata:
+   name: helloworld-%s
+   namespace: %s
+   labels:
+     app: helloworld
+     version: %s
+ spec:
+   replicas: 1
+   selector:
+     matchLabels:
+       app: helloworld
+       version: %s
+   template:
+     metadata:
+       labels:
+         app: helloworld
+         version: %s
+     spec:
+       nodeSelector:
+         kubernetes.io/hostname: kmesh-testing-control-plane
+       tolerations:
+       - key: "node-role.kubernetes.io/control-plane"
+         operator: "Exists"
+         effect: NoSchedule
+       containers:
+       - name: helloworld
+         image: docker.io/istio/examples-helloworld-v1
+         imagePullPolicy: IfNotPresent
+         env:
+         - name: SERVICE_VERSION
+           value: %s
+         ports:
+         - containerPort: 5000
+ `, remoteVer, ns, remoteVer, remoteVer, remoteVer, remoteVer))
+ 
+     // Sleep client on worker
+     applyManifest(ctx, ns, fmt.Sprintf(`
+ apiVersion: apps/v1
+ kind: Deployment
+ metadata:
+   name: sleep
+   namespace: %s
+   labels:
+     app: sleep
+ spec:
+   replicas: 1
+   selector:
+     matchLabels:
+       app: sleep
+   template:
+     metadata:
+       labels:
+         app: sleep
+     spec:
+       nodeSelector:
+         kubernetes.io/hostname: kmesh-testing-worker
+       containers:
+       - name: sleep
+         image: curlimages/curl
+         command: ["/bin/sleep","infinity"]
+ `, ns))
+ 
+     waitForDeployment(ctx, ns, "helloworld-"+localVer)
+     waitForDeployment(ctx, ns, "helloworld-"+remoteVer)
+     waitForDeployment(ctx, ns, "sleep")
+ 
+     ip := getClusterIP(ctx, ns, svc)
+     pod := getSleepPod(ctx, ns)
+ 
+     // Expect only local → no remote yet
+     sawLocal := false
+     for i := 0; i < 10; i++ {
+       out, _ := curlHello(ctx, ns, pod, fqdn, ip)
+       ctx.Logf("curl #%d → %q", i+1, out)
+       if strings.Contains(out, remoteVer) {
+         ctx.Fatalf("remote seen before deletion: %q", out)
+       }
+       if strings.Contains(out, localVer) {
+         sawLocal = true
+         break
+       }
+       time.Sleep(2 * time.Second)
+     }
+     if !sawLocal {
+       ctx.Fatalf("never saw local (%q)", localVer)
+     }
+ 
+     // Delete local → should fail over to remote
+     runCommand(ctx, "kubectl delete deployment helloworld-"+localVer+" -n "+ns)
+     retry.UntilSuccessOrFail(ctx, func() error {
+       out, _ := curlHello(ctx, ns, pod, fqdn, ip)
+       if !strings.Contains(out, remoteVer) {
+         return fmt.Errorf("still not remote: %q", out)
+       }
+       return nil
+     }, retry.Timeout(60*time.Second), retry.Delay(2*time.Second))
+   })
+ }
+ 
+ // Test 2: Local strict via internalTrafficPolicy: Local
+ func TestLocality_LocalStrict(t *testing.T) {
+   framework.NewTest(t).Run(func(ctx framework.TestContext) {
+     runCommand(ctx, "kubectl label node kmesh-testing-worker topology.kubernetes.io/region=region topology.kubernetes.io/zone=zone1 topology.kubernetes.io/subzone=subzone1 --overwrite")
+     runCommand(ctx, "kubectl label node kmesh-testing-control-plane topology.kubernetes.io/region=region topology.kubernetes.io/zone=zone1 topology.kubernetes.io/subzone=subzone2 --overwrite")
+ 
+     ns, svc := "sample-local", "helloworld"
+     fqdn := svc + "." + ns + ".svc.cluster.local"
+     localVer, remoteVer := "sub1", "sub2"
+ 
+     runCommand(ctx, "kubectl create namespace "+ns)
+ 
+     // Service in strict Local mode
+     applyManifest(ctx, ns, fmt.Sprintf(`
+ apiVersion: v1
+ kind: Service
+ metadata:
+   name: %s
+   namespace: %s
+   labels:
+     app: helloworld
+ spec:
+   selector:
+     app: helloworld
+   ports:
+   - name: http
+     port: 5000
+     targetPort: 5000
+   internalTrafficPolicy: Local
+ `, svc, ns))
+ 
+     // Local deployment
+     applyManifest(ctx, ns, fmt.Sprintf(`
+ apiVersion: apps/v1
+ kind: Deployment
+ metadata:
+   name: helloworld-%s
+   namespace: %s
+   labels:
+     app: helloworld
+     version: %s
+ spec:
+   replicas: 1
+   selector:
+     matchLabels:
+       app: helloworld
+       version: %s
+   template:
+     metadata:
+       labels:
+         app: helloworld
+         version: %s
+     spec:
+       nodeSelector:
+         kubernetes.io/hostname: kmesh-testing-worker
+       containers:
+       - name: helloworld
+         image: docker.io/istio/examples-helloworld-v1
+         imagePullPolicy: IfNotPresent
+         env:
+         - name: SERVICE_VERSION
+           value: %s
+         ports:
+         - containerPort: 5000
+ `, localVer, ns, localVer, localVer, localVer, localVer))
+ 
+     // Remote deployment (to prove strict mode blocks it)
+     applyManifest(ctx, ns, fmt.Sprintf(`
+ apiVersion: apps/v1
+ kind: Deployment
+ metadata:
+   name: helloworld-%s
+   namespace: %s
+   labels:
+     app: helloworld
+     version: %s
+ spec:
+   replicas: 1
+   selector:
+     matchLabels:
+       app: helloworld
+       version: %s
+   template:
+     metadata:
+       labels:
+         app: helloworld
+         version: %s
+     spec:
+       nodeSelector:
+         kubernetes.io/hostname: kmesh-testing-control-plane
+       tolerations:
+       - key: "node-role.kubernetes.io/control-plane"
+         operator: "Exists"
+         effect: NoSchedule
+       containers:
+       - name: helloworld
+         image: docker.io/istio/examples-helloworld-v1
+         imagePullPolicy: IfNotPresent
+         env:
+         - name: SERVICE_VERSION
+           value: %s
+         ports:
+         - containerPort: 5000
+ `, remoteVer, ns, remoteVer, remoteVer, remoteVer, remoteVer))
+ 
+     // Sleep client
+     applyManifest(ctx, ns, fmt.Sprintf(`
+ apiVersion: apps/v1
+ kind: Deployment
+ metadata:
+   name: sleep
+   namespace: %s
+   labels:
+     app: sleep
+ spec:
+   replicas: 1
+   selector:
+     matchLabels:
+       app: sleep
+   template:
+     metadata:
+       labels:
+         app: sleep
+     spec:
+       nodeSelector:
+         kubernetes.io/hostname: kmesh-testing-worker
+       containers:
+       - name: sleep
+         image: curlimages/curl
+         command: ["/bin/sleep","infinity"]
+ `, ns))
+ 
+     waitForDeployment(ctx, ns, "helloworld-"+localVer)
+     waitForDeployment(ctx, ns, "helloworld-"+remoteVer)
+     waitForDeployment(ctx, ns, "sleep")
+ 
+     pod := getSleepPod(ctx, ns)
+     ip := getClusterIP(ctx, ns, svc)
+ 
+     // Must initially hit local
+     out, _ := curlHello(ctx, ns, pod, fqdn, ip)
+     if !strings.Contains(out, localVer) {
+       ctx.Fatalf("Local strict initial: expected %q, got %q", localVer, out)
+     }
+ 
+     // Delete local → should now fail (no remote fallback)
+     runCommand(ctx, "kubectl delete deployment helloworld-"+localVer+" -n "+ns)
+     time.Sleep(5 * time.Second)
+     if out, err := curlHello(ctx, ns, pod, fqdn, ip); err == nil {
+       ctx.Fatalf("Local strict should fail, but got %q", out)
+     }
+   })
+ }
+ 
+ // Test 3: Subzone distribution across two fallback pods
+ func TestLocality_SubzoneDistribution(t *testing.T) {
+   framework.NewTest(t).Run(func(ctx framework.TestContext) {
+     runCommand(ctx, "kubectl label node kmesh-testing-worker topology.kubernetes.io/region=region topology.kubernetes.io/zone=zone1 topology.kubernetes.io/subzone=subzone1 --overwrite")
+     runCommand(ctx, "kubectl label node kmesh-testing-control-plane topology.kubernetes.io/region=region topology.kubernetes.io/zone=zone1 topology.kubernetes.io/subzone=subzone2 --overwrite")
+ 
+     ns, svc := "sample-dist", "helloworld"
+     fqdn := svc + "." + ns + ".svc.cluster.local"
+     localVer := "sub1"
+     rem1, rem2 := "sub2-a", "sub2-b"
+ 
+     runCommand(ctx, "kubectl create namespace "+ns)
+ 
+     // Service again via annotation
+     applyManifest(ctx, ns, fmt.Sprintf(`
+ apiVersion: v1
+ kind: Service
+ metadata:
+   name: %s
+   namespace: %s
+   annotations:
+     networking.istio.io/traffic-distribution: PreferClose
+   labels:
+     app: helloworld
+ spec:
+   selector:
+     app: helloworld
+   ports:
+   - name: http
+     port: 5000
+     targetPort: 5000
+ `, svc, ns))
+ 
+     // Local
+     applyManifest(ctx, ns, fmt.Sprintf(`
+ apiVersion: apps/v1
+ kind: Deployment
+ metadata:
+   name: helloworld-%s
+   namespace: %s
+   labels:
+     app: helloworld
+     version: %s
+ spec:
+   replicas: 1
+   selector:
+     matchLabels:
+       app: helloworld
+       version: %s
+   template:
+     metadata:
+       labels:
+         app: helloworld
+         version: %s
+     spec:
+       nodeSelector:
+         kubernetes.io/hostname: kmesh-testing-worker
+       containers:
+       - name: helloworld
+         image: docker.io/istio/examples-helloworld-v1
+         env:
+         - name: SERVICE_VERSION
+           value: %s
+         ports:
+         - containerPort: 5000
+ `, localVer, ns, localVer, localVer, localVer, localVer))
+ 
+     // Two fallback (lowercase!)
+     for _, v := range []string{rem1, rem2} {
+       applyManifest(ctx, ns, fmt.Sprintf(`
+ apiVersion: apps/v1
+ kind: Deployment
+ metadata:
+   name: helloworld-%s
+   namespace: %s
+   labels:
+     app: helloworld
+     version: %s
+ spec:
+   replicas: 1
+   selector:
+     matchLabels:
+       app: helloworld
+       version: %s
+   template:
+     metadata:
+       labels:
+         app: helloworld
+         version: %s
+     spec:
+       nodeSelector:
+         kubernetes.io/hostname: kmesh-testing-control-plane
+       tolerations:
+       - key: "node-role.kubernetes.io/control-plane"
+         operator: "Exists"
+         effect: NoSchedule
+       containers:
+       - name: helloworld
+         image: docker.io/istio/examples-helloworld-v1
+         env:
+         - name: SERVICE_VERSION
+           value: %s
+         ports:
+         - containerPort: 5000
+ `, v, ns, v, v, v, v))
+     }
+ 
+     // Sleep client
+     applyManifest(ctx, ns, fmt.Sprintf(`
+ apiVersion: apps/v1
+ kind: Deployment
+ metadata:
+   name: sleep
+   namespace: %s
+   labels:
+     app: sleep
+ spec:
+   replicas: 1
+   selector:
+     matchLabels:
+       app: sleep
+   template:
+     metadata:
+       labels:
+         app: sleep
+     spec:
+       nodeSelector:
+         kubernetes.io/hostname: kmesh-testing-worker
+       containers:
+       - name: sleep
+         image: curlimages/curl
+         command: ["/bin/sleep","infinity"]
+ `, ns))
+ 
+     waitForDeployment(ctx, ns, "helloworld-"+localVer)
+     waitForDeployment(ctx, ns, "helloworld-"+rem1)
+     waitForDeployment(ctx, ns, "helloworld-"+rem2)
+     waitForDeployment(ctx, ns, "sleep")
+ 
+     // Delete local → exercise distribution
+     runCommand(ctx, "kubectl delete deployment helloworld-"+localVer+" -n "+ns)
+     ip := getClusterIP(ctx, ns, svc)
+     pod := getSleepPod(ctx, ns)
+ 
+     counts := map[string]int{}
+     for i := 0; i < 20; i++ {
+       out, _ := curlHello(ctx, ns, pod, fqdn, ip)
+       for _, v := range []string{rem1, rem2} {
+         if strings.Contains(out, v) {
+           counts[v]++
+         }
+       }
+       time.Sleep(200 * time.Millisecond)
+     }
+     ctx.Logf("Distribution: %+v", counts)
+     if counts[rem1] == 0 || counts[rem2] == 0 {
+       ctx.Fatalf("Expected both %q and %q, got %+v", rem1, rem2, counts)
+     }
+   })
+ }
+ 
\ No newline at end of file