diff --git a/test/Dapr.IntegrationTest.Workflow/ExternalEventDoesNotBlockConcurrencySlotTests.cs b/test/Dapr.IntegrationTest.Workflow/ExternalEventDoesNotBlockConcurrencySlotTests.cs
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+++ b/test/Dapr.IntegrationTest.Workflow/ExternalEventDoesNotBlockConcurrencySlotTests.cs
@@ -0,0 +1,160 @@
+// ------------------------------------------------------------------------
+// Copyright 2025 The Dapr 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.
+//  ------------------------------------------------------------------------
+
+using Dapr.Testcontainers.Common;
+using Dapr.Testcontainers.Harnesses;
+using Dapr.Workflow;
+using Microsoft.Extensions.Configuration;
+using Microsoft.Extensions.DependencyInjection;
+
+namespace Dapr.IntegrationTest.Workflow;
+
+/// <summary>
+/// Verifies that workflows suspended on <see cref="WorkflowContext.WaitForExternalEventAsync{T}"/>
+/// do not occupy a concurrency slot, allowing additional workflows to run while the first
+/// batch is waiting.
+/// </summary>
+public sealed class ExternalEventDoesNotBlockConcurrencySlotTests
+{
+    private const string WaitingStatus = "WaitingForEvent";
+    private const string EventName = "ContinueSignal";
+
+    /// <summary>
+    /// With <see cref="WorkflowRuntimeOptions.MaxConcurrentWorkflows"/> set to 3, schedule
+    /// 3 workflows that each wait on an external event, then schedule a 4th workflow and
+    /// confirm it completes before releasing the waiting ones.
+    /// </summary>
+    [Fact]
+    public async Task FourthWorkflow_ShouldComplete_WhileFirstThreeAreWaitingOnExternalEvent()
+    {
+        const int concurrencyLimit = 3;
+
+        var componentsDir = TestDirectoryManager.CreateTestDirectory("workflow-components");
+
+        // Three workflows that will block on an external event.
+        var waitingIds = Enumerable.Range(0, concurrencyLimit)
+            .Select(_ => Guid.NewGuid().ToString())
+            .ToArray();
+
+        // One workflow that should run immediately even though the limit is 3.
+        var fourthId = Guid.NewGuid().ToString();
+
+        await using var environment = await DaprTestEnvironment.CreateWithPooledNetworkAsync(
+            needsActorState: true,
+            cancellationToken: TestContext.Current.CancellationToken);
+        await environment.StartAsync(TestContext.Current.CancellationToken);
+
+        var harness = new DaprHarnessBuilder(componentsDir)
+            .WithEnvironment(environment)
+            .BuildWorkflow();
+
+        await using var testApp = await DaprHarnessBuilder.ForHarness(harness)
+            .ConfigureServices(builder =>
+            {
+                builder.Services.AddDaprWorkflowBuilder(
+                    configureRuntime: opt =>
+                    {
+                        opt.MaxConcurrentWorkflows = concurrencyLimit;
+                        opt.RegisterWorkflow<WaitForEventWorkflow>();
+                        opt.RegisterWorkflow<EchoWorkflow>();
+                        opt.RegisterActivity<EchoActivity>();
+                    },
+                    configureClient: (sp, clientBuilder) =>
+                    {
+                        var config = sp.GetRequiredService<IConfiguration>();
+                        var grpcEndpoint = config["DAPR_GRPC_ENDPOINT"];
+                        if (!string.IsNullOrEmpty(grpcEndpoint))
+                            clientBuilder.UseGrpcEndpoint(grpcEndpoint);
+                    });
+            })
+            .BuildAndStartAsync();
+
+        using var scope = testApp.CreateScope();
+        var daprWorkflowClient = scope.ServiceProvider.GetRequiredService<DaprWorkflowClient>();
+
+        // Schedule all three waiting workflows and let them reach their suspended state.
+        await Task.WhenAll(waitingIds.Select(id =>
+            daprWorkflowClient.ScheduleNewWorkflowAsync(nameof(WaitForEventWorkflow), id, id)));
+
+        using var waitCts = new CancellationTokenSource(TimeSpan.FromMinutes(2));
+        await Task.WhenAll(waitingIds.Select(id =>
+            WaitForCustomStatusAsync(daprWorkflowClient, id, WaitingStatus, waitCts.Token)));
+
+        // All three are now suspended. Schedule the fourth, which should not be blocked.
+        await daprWorkflowClient.ScheduleNewWorkflowAsync(nameof(EchoWorkflow), fourthId, fourthId);
+
+        using var fourthCts = new CancellationTokenSource(TimeSpan.FromMinutes(2));
+        var fourthResult = await daprWorkflowClient.WaitForWorkflowCompletionAsync(
+            fourthId, getInputsAndOutputs: true, cancellation: fourthCts.Token);
+
+        Assert.Equal(WorkflowRuntimeStatus.Completed, fourthResult.RuntimeStatus);
+        Assert.Equal(fourthId, fourthResult.ReadOutputAs<string>());
+
+        // Release all three waiting workflows.
+        await Task.WhenAll(waitingIds.Select(id =>
+            daprWorkflowClient.RaiseEventAsync(id, EventName, "released",
+                TestContext.Current.CancellationToken)));
+
+        using var completionCts = new CancellationTokenSource(TimeSpan.FromMinutes(2));
+        var waitingResults = await Task.WhenAll(waitingIds.Select(id =>
+            daprWorkflowClient.WaitForWorkflowCompletionAsync(
+                id, getInputsAndOutputs: true, cancellation: completionCts.Token)));
+
+        foreach (var result in waitingResults)
+        {
+            Assert.Equal(WorkflowRuntimeStatus.Completed, result.RuntimeStatus);
+            Assert.Equal("released", result.ReadOutputAs<string>());
+        }
+    }
+
+    private static async Task WaitForCustomStatusAsync(
+        DaprWorkflowClient client,
+        string instanceId,
+        string expectedStatus,
+        CancellationToken cancellationToken)
+    {
+        while (true)
+        {
+            cancellationToken.ThrowIfCancellationRequested();
+            var state = await client.GetWorkflowStateAsync(
+                instanceId, getInputsAndOutputs: true, cancellation: cancellationToken);
+            if (state is not null &&
+                string.Equals(state.ReadCustomStatusAs<string>(), expectedStatus, StringComparison.Ordinal))
+                return;
+
+            await Task.Delay(TimeSpan.FromMilliseconds(200), cancellationToken);
+        }
+    }
+
+    /// <summary>Waits indefinitely for an external event then returns its payload.</summary>
+    private sealed class WaitForEventWorkflow : Workflow<string, string>
+    {
+        public override async Task<string> RunAsync(WorkflowContext context, string input)
+        {
+            context.SetCustomStatus(WaitingStatus);
+            return await context.WaitForExternalEventAsync<string>(EventName);
+        }
+    }
+
+    private sealed class EchoActivity : WorkflowActivity<string, string>
+    {
+        public override Task<string> RunAsync(WorkflowActivityContext context, string input) =>
+            Task.FromResult(input);
+    }
+
+    private sealed class EchoWorkflow : Workflow<string, string>
+    {
+        public override async Task<string> RunAsync(WorkflowContext context, string input) =>
+            await context.CallActivityAsync<string>(nameof(EchoActivity), input);
+    }
+}