diff --git a/src/Server/ZB.MOM.WW.OtOpcUa.OpcUaServer/Phase7Applier.cs b/src/Server/ZB.MOM.WW.OtOpcUa.OpcUaServer/Phase7Applier.cs
index bdc97367..ccb2eb85 100644
--- a/src/Server/ZB.MOM.WW.OtOpcUa.OpcUaServer/Phase7Applier.cs
+++ b/src/Server/ZB.MOM.WW.OtOpcUa.OpcUaServer/Phase7Applier.cs
@@ -189,7 +189,16 @@ public sealed class Phase7Applier
                 ? tag.EquipmentId
                 : EquipmentNodeIds.SubFolder(tag.EquipmentId, tag.FolderPath);
             var nodeId = EquipmentNodeIds.Variable(tag.EquipmentId, tag.FolderPath, tag.Name);
-            SafeEnsureVariable(nodeId, parent, tag.Name, tag.DataType, tag.Writable);
+            if (tag.Alarm is not null)
+            {
+                // Native alarm tag → a real Part 9 condition node (reuses the scripted-alarm path),
+                // NOT a value variable. Parent is the sub-folder when set, else the equipment folder.
+                SafeMaterialiseAlarmCondition(nodeId, parent, tag.Name, tag.Alarm.AlarmType, tag.Alarm.Severity);
+            }
+            else
+            {
+                SafeEnsureVariable(nodeId, parent, tag.Name, tag.DataType, tag.Writable);
+            }
         }
 
         _logger.LogInformation(
diff --git a/tests/Server/ZB.MOM.WW.OtOpcUa.OpcUaServer.Tests/Phase7ApplierTests.cs b/tests/Server/ZB.MOM.WW.OtOpcUa.OpcUaServer.Tests/Phase7ApplierTests.cs
index 4dbb9503..d14992ae 100644
--- a/tests/Server/ZB.MOM.WW.OtOpcUa.OpcUaServer.Tests/Phase7ApplierTests.cs
+++ b/tests/Server/ZB.MOM.WW.OtOpcUa.OpcUaServer.Tests/Phase7ApplierTests.cs
@@ -197,6 +197,71 @@ public sealed class Phase7ApplierTests
         sink.VariableCalls.ShouldContain(("eq-2/Speed", "eq-2", "Speed", "Float", false));
     }
 
+    /// <summary>Phase B WS-3 — an alarm-bearing equipment tag (<c>Alarm is not null</c>) materialises a
+    /// real OPC UA Part 9 condition node (via the same path scripted alarms use) instead of a value
+    /// variable; a plain tag (<c>Alarm == null</c>) stays a value variable. The alarm tag's condition
+    /// uses the tag's folder-scoped NodeId, the equipment folder as parent, and carries the tag's
+    /// AlarmType/Severity. Proves BOTH branches in one composition.</summary>
+    [Fact]
+    public void MaterialiseEquipmentTags_alarm_bearing_tag_becomes_condition_plain_tag_stays_variable()
+    {
+        var sink = new RecordingSink();
+        var applier = new Phase7Applier(sink, NullLogger<Phase7Applier>.Instance);
+
+        var composition = new Phase7CompositionResult(
+            Array.Empty<EquipmentNode>(), Array.Empty<DriverInstancePlan>(), Array.Empty<ScriptedAlarmPlan>())
+        {
+            EquipmentTags = new[]
+            {
+                new EquipmentTagPlan("tag-plain", "eq-1", "drv", FolderPath: "", Name: "Speed", DataType: "Float", FullName: "40001", Writable: true, Alarm: null),
+                new EquipmentTagPlan("tag-alarm", "eq-1", "drv", FolderPath: "", Name: "OverTemp", DataType: "Boolean", FullName: "00001", Writable: false, Alarm: new EquipmentTagAlarmInfo("OffNormalAlarm", 700)),
+            },
+        };
+
+        applier.MaterialiseEquipmentTags(composition);
+
+        // The plain tag drove EnsureVariable at its folder-scoped NodeId, and NOT a condition.
+        var plainNodeId = EquipmentNodeIds.Variable("eq-1", "", "Speed");
+        sink.VariableCalls.ShouldHaveSingleItem().ShouldBe((plainNodeId, "eq-1", "Speed", "Float", true));
+        sink.AlarmConditionCalls.ShouldNotContain(c => c.AlarmNodeId == plainNodeId);
+
+        // The alarm tag drove MaterialiseAlarmCondition (folder-scoped NodeId, equipment parent,
+        // matching display/type/severity) and did NOT drive EnsureVariable.
+        var alarmNodeId = EquipmentNodeIds.Variable("eq-1", "", "OverTemp");
+        sink.AlarmConditionCalls.ShouldHaveSingleItem()
+            .ShouldBe((alarmNodeId, "eq-1", "OverTemp", "OffNormalAlarm", 700));
+        sink.VariableCalls.ShouldNotContain(v => v.NodeId == alarmNodeId);
+    }
+
+    /// <summary>Phase B WS-3 — an alarm-bearing equipment tag WITH a FolderPath still gets its
+    /// sub-folder created, and its condition is parented to that sub-folder (not the equipment folder),
+    /// using the folder-scoped NodeId.</summary>
+    [Fact]
+    public void MaterialiseEquipmentTags_alarm_bearing_tag_with_FolderPath_conditions_under_subfolder()
+    {
+        var sink = new RecordingSink();
+        var applier = new Phase7Applier(sink, NullLogger<Phase7Applier>.Instance);
+
+        var composition = new Phase7CompositionResult(
+            Array.Empty<EquipmentNode>(), Array.Empty<DriverInstancePlan>(), Array.Empty<ScriptedAlarmPlan>())
+        {
+            EquipmentTags = new[]
+            {
+                new EquipmentTagPlan("tag-alarm", "eq-1", "drv", FolderPath: "Diagnostics", Name: "OverTemp", DataType: "Boolean", FullName: "00001", Writable: false, Alarm: new EquipmentTagAlarmInfo("OffNormalAlarm", 500)),
+            },
+        };
+
+        applier.MaterialiseEquipmentTags(composition);
+
+        // The sub-folder is still created for an alarm tag with a FolderPath.
+        sink.FolderCalls.ShouldHaveSingleItem().ShouldBe(("eq-1/Diagnostics", "eq-1", "Diagnostics"));
+        // Condition is parented to the sub-folder, with the folder-scoped NodeId. No value variable.
+        var alarmNodeId = EquipmentNodeIds.Variable("eq-1", "Diagnostics", "OverTemp");
+        sink.AlarmConditionCalls.ShouldHaveSingleItem()
+            .ShouldBe((alarmNodeId, "eq-1/Diagnostics", "OverTemp", "OffNormalAlarm", 500));
+        sink.VariableCalls.ShouldBeEmpty();
+    }
+
     /// <summary>Verifies MaterialiseEquipmentVirtualTags creates one Variable per VirtualTag directly
     /// under its existing equipment folder, with a folder-scoped NodeId (EquipmentId/Name — NOT the
     /// VirtualTagId or Expression), parent == EquipmentId, displayName == Name, and does NOT re-create