diff --git a/editor/CMakeLists.txt b/editor/CMakeLists.txt
index a11b366..84d4469 100644
--- a/editor/CMakeLists.txt
+++ b/editor/CMakeLists.txt
@@ -196,6 +196,9 @@ target_include_directories(step67_test PRIVATE src)
 add_executable(step68_test tests/step68_test.cpp)
 target_include_directories(step68_test PRIVATE src)
 
+add_executable(step69_test tests/step69_test.cpp)
+target_include_directories(step69_test PRIVATE src)
+
 add_executable(whetstone_editor src/main.cpp)
 target_include_directories(whetstone_editor PRIVATE src)
 # find_package(SDL2 REQUIRED)  # Commented out for now to avoid build issues
diff --git a/editor/tests/step69_test.cpp b/editor/tests/step69_test.cpp
new file mode 100644
index 0000000..e5a6088
--- /dev/null
+++ b/editor/tests/step69_test.cpp
@@ -0,0 +1,214 @@
+// Step 69 TDD Test: Strategy-aware optimization
+//
+// Tests that transforms respect memory annotations:
+// 1. @Owner(Single) → can inline/move but not duplicate (no aliasing)
+// 2. @Deallocate(Explicit) → cannot reorder around deallocation points
+// 3. @Reclaim(Tracing) → can freely restructure (GC handles cleanup)
+// 4. @Allocate(Static) → cannot dynamically allocate
+//
+// Will fail until strategy-aware optimization is implemented.
+
+#include <iostream>
+#include <string>
+#include <cassert>
+#include <vector>
+#include "ast/ASTNode.h"
+#include "ast/Module.h"
+#include "ast/Function.h"
+#include "ast/Variable.h"
+#include "ast/Statement.h"
+#include "ast/Expression.h"
+#include "ast/Annotation.h"
+
+// Forward declaration — StrategyAwareOptimizer
+class StrategyAwareOptimizer {
+public:
+    struct OptResult {
+        bool applied;
+        std::string warning;
+        std::string blocked;   // Non-empty if optimization was blocked by annotation
+        int nodesModified;
+    };
+
+    void setRoot(ASTNode* root);
+
+    // Try to inline a variable (replace references with the value)
+    OptResult inlineVariable(const std::string& variableId);
+
+    // Try to reorder statements for efficiency
+    OptResult reorderStatements(const std::string& functionId);
+
+    // Try to duplicate/clone a node for parallelism
+    OptResult duplicateNode(const std::string& nodeId);
+
+    // General optimization respecting all annotations
+    OptResult optimizeFunction(const std::string& functionId);
+};
+
+int main() {
+    int passed = 0;
+    int failed = 0;
+
+    // --- Test 1: @Reclaim(Tracing) allows free restructuring ---
+    {
+        Module mod("m1", "Test", "python");
+        Function* fn = new Function("f1", "process");
+
+        ReclaimAnnotation* anno = new ReclaimAnnotation();
+        anno->id = "a1";
+        anno->strategy = "Tracing";
+        fn->addChild("annotations", anno);
+
+        Variable* var = new Variable("v1", "temp");
+        fn->addChild("body", var);
+
+        Assignment* assign = new Assignment();
+        assign->id = "as1";
+        VariableReference* target = new VariableReference("vr1", "result");
+        VariableReference* value = new VariableReference("vr2", "temp");
+        assign->setChild("target", target);
+        assign->setChild("value", value);
+        fn->addChild("body", assign);
+
+        mod.addChild("functions", fn);
+
+        StrategyAwareOptimizer opt;
+        opt.setRoot(&mod);
+
+        auto result = opt.optimizeFunction("f1");
+        assert(result.blocked.empty() &&
+               "@Reclaim(Tracing) should not block any optimization");
+
+        std::cout << "Test 1 PASS: @Reclaim(Tracing) allows free restructuring" << std::endl;
+        ++passed;
+
+        delete value;
+        delete target;
+        delete assign;
+        delete var;
+        delete anno;
+        delete fn;
+    }
+
+    // --- Test 2: @Owner(Single) blocks duplication/aliasing ---
+    {
+        Module mod("m1", "Test", "cpp");
+        Function* fn = new Function("f1", "ownership");
+
+        OwnerAnnotation* anno = new OwnerAnnotation();
+        anno->id = "a1";
+        anno->strategy = "Single";
+        fn->addChild("annotations", anno);
+
+        Variable* var = new Variable("v1", "resource");
+        fn->addChild("body", var);
+        mod.addChild("functions", fn);
+
+        StrategyAwareOptimizer opt;
+        opt.setRoot(&mod);
+
+        // Try to duplicate a node under single ownership — should be blocked
+        auto result = opt.duplicateNode("v1");
+        assert(!result.blocked.empty() &&
+               "@Owner(Single) should block duplication (aliasing)");
+
+        std::cout << "Test 2 PASS: @Owner(Single) blocks duplication" << std::endl;
+        ++passed;
+
+        delete var;
+        delete anno;
+        delete fn;
+    }
+
+    // --- Test 3: @Deallocate(Explicit) blocks reordering around dealloc ---
+    {
+        Module mod("m1", "Test", "cpp");
+        Function* fn = new Function("f1", "manualMem");
+
+        DeallocateAnnotation* anno = new DeallocateAnnotation();
+        anno->id = "a1";
+        anno->strategy = "Explicit";
+        fn->addChild("annotations", anno);
+
+        // Use then free pattern — reordering could cause use-after-free
+        Variable* ptr = new Variable("v1", "ptr");
+        fn->addChild("body", ptr);
+
+        ExpressionStatement* use = new ExpressionStatement();
+        use->id = "use1";
+        FunctionCall* call = new FunctionCall();
+        call->id = "fc1";
+        call->functionName = "process";
+        VariableReference* arg = new VariableReference("vr1", "ptr");
+        call->addChild("arguments", arg);
+        use->setChild("expression", call);
+        fn->addChild("body", use);
+
+        // "delete ptr" — simulated as function call
+        ExpressionStatement* freeStmt = new ExpressionStatement();
+        freeStmt->id = "free1";
+        FunctionCall* freeCall = new FunctionCall();
+        freeCall->id = "fc2";
+        freeCall->functionName = "delete";
+        VariableReference* freeArg = new VariableReference("vr2", "ptr");
+        freeCall->addChild("arguments", freeArg);
+        freeStmt->setChild("expression", freeCall);
+        fn->addChild("body", freeStmt);
+
+        mod.addChild("functions", fn);
+
+        StrategyAwareOptimizer opt;
+        opt.setRoot(&mod);
+
+        auto result = opt.reorderStatements("f1");
+        assert(!result.blocked.empty() &&
+               "@Deallocate(Explicit) should block reordering around deallocation");
+
+        std::cout << "Test 3 PASS: @Deallocate(Explicit) blocks unsafe reordering" << std::endl;
+        ++passed;
+
+        delete freeArg;
+        delete freeCall;
+        delete freeStmt;
+        delete arg;
+        delete call;
+        delete use;
+        delete ptr;
+        delete anno;
+        delete fn;
+    }
+
+    // --- Test 4: @Allocate(Static) blocks dynamic allocation ---
+    {
+        Module mod("m1", "Test", "cpp");
+        Function* fn = new Function("f1", "staticOnly");
+
+        AllocateAnnotation* anno = new AllocateAnnotation();
+        anno->id = "a1";
+        anno->strategy = "Static";
+        fn->addChild("annotations", anno);
+
+        Variable* var = new Variable("v1", "buffer");
+        fn->addChild("body", var);
+        mod.addChild("functions", fn);
+
+        StrategyAwareOptimizer opt;
+        opt.setRoot(&mod);
+
+        // An optimization that would require dynamic allocation should be blocked
+        auto result = opt.duplicateNode("v1");
+        assert(!result.blocked.empty() &&
+               "@Allocate(Static) should block dynamic allocation");
+
+        std::cout << "Test 4 PASS: @Allocate(Static) blocks dynamic allocation" << std::endl;
+        ++passed;
+
+        delete var;
+        delete anno;
+        delete fn;
+    }
+
+    // --- Summary ---
+    std::cout << "\n=== Step 69 Results: " << passed << " passed, " << failed << " failed ===" << std::endl;
+    return failed > 0 ? 1 : 0;
+}