diff --git a/FEATURES.md b/FEATURES.md
index 72e7813..49586cd 100644
--- a/FEATURES.md
+++ b/FEATURES.md
@@ -29,6 +29,7 @@ Overview of features supported by each editor client.
 |---------|:-------:|:--------:|:------:|:---:|
 | Success Emoji | ✅ | ✅ | ✅ | ✅ |
 | Error Emoji | ✅ | ✅ | ✅ | ✅ |
+| Skipped Emoji (`"use no memo"`) | ✅ | ✅ | ✅ | ✅ |
 | Babel Plugin Path | ✅ | ✅ | ✅ | ✅ |
 | Excluded Directories | ✅ | ✅ | ❌ | ❌ |
 | Supported Extensions | ✅ | ✅ | ❌ | ❌ |
diff --git a/README.md b/README.md
index 2f540a3..4adae02 100644
--- a/README.md
+++ b/README.md
@@ -7,6 +7,7 @@
 ## Features
 
 - Visual emoji markers next to React components (customizable)
+- Respects the `"use no memo"` / `"use no forget"` opt-out directive — opted-out functions are reported as skipped (⏭️) rather than failed
 - Hover tooltips with optimization details and error messages
 - Preview compiled output to see what the React Compiler generates
 - Generate reports for a full-project compilation snapshot
diff --git a/packages/cli/src/formatText.ts b/packages/cli/src/formatText.ts
index cb2329f..69e7d7b 100644
--- a/packages/cli/src/formatText.ts
+++ b/packages/cli/src/formatText.ts
@@ -14,8 +14,10 @@ function parseFailure(filePath: string, log: LogEntry): ParsedFailure {
     log.detail?.options?.details?.at(0)?.loc?.start?.line ??
     log.detail?.options?.loc?.start?.line ??
     log.detail?.loc?.start?.line ??
+    log.loc?.start?.line ??
+    log.fnLoc?.start?.line ??
     undefined;
-  const reason = log?.detail?.options?.reason || "Unknown reason";
+  const reason = log?.detail?.options?.reason || log?.reason || "Unknown reason";
   return { filePath, fnName: log.fnName, reason, line };
 }
 
@@ -29,6 +31,7 @@ export function formatText(report: ReactCompilerReport): string {
   lines.push(`Files with results: ${totals.filesWithResults}`);
   lines.push(`Compiled (success): ${totals.successCount}`);
   lines.push(`Failed:             ${totals.failedCount}`);
+  lines.push(`Skipped:            ${totals.skippedCount}`);
 
   if (report.errors.length > 0) {
     lines.push("");
@@ -57,6 +60,24 @@ export function formatText(report: ReactCompilerReport): string {
     }
   }
 
+  const skips: ParsedFailure[] = [];
+  for (const file of report.files) {
+    for (const log of file.skipped ?? []) {
+      skips.push(parseFailure(file.path, log));
+    }
+  }
+
+  if (skips.length > 0) {
+    lines.push("");
+    lines.push("Skipped components:");
+    lines.push("----------------------------------------");
+    for (const s of skips) {
+      const loc = s.line ? `:${s.line}` : "";
+      const name = s.fnName ?? "(anonymous)";
+      lines.push(`  ${s.filePath}${loc} - ${name}: ${s.reason}`);
+    }
+  }
+
   lines.push("");
   return lines.join("\n");
 }
diff --git a/packages/cli/src/main.ts b/packages/cli/src/main.ts
index ae39d40..0e305bd 100644
--- a/packages/cli/src/main.ts
+++ b/packages/cli/src/main.ts
@@ -190,7 +190,7 @@ function formatOutput(report: ReactCompilerReport, format: string): string {
       const tree = buildReportTree(report);
       return getReportHtml({
         data: tree,
-        emojis: { success: "\u2705", error: "\u274C" },
+        emojis: { success: "\u2705", error: "\u274C", skipped: "\u23ED\uFE0F" },
         theme: "auto",
         headExtra: `<style>${STANDALONE_CSS}</style>`,
       });
diff --git a/packages/intellij-client/src/main/kotlin/com/blazejkustra/reactcompilermarker/actions/GenerateReportAction.kt b/packages/intellij-client/src/main/kotlin/com/blazejkustra/reactcompilermarker/actions/GenerateReportAction.kt
index 03e8dae..c8345e1 100644
--- a/packages/intellij-client/src/main/kotlin/com/blazejkustra/reactcompilermarker/actions/GenerateReportAction.kt
+++ b/packages/intellij-client/src/main/kotlin/com/blazejkustra/reactcompilermarker/actions/GenerateReportAction.kt
@@ -52,7 +52,8 @@ class GenerateReportAction : AnAction() {
             "respectGitignore" to settings.respectGitignore,
             "emojis" to mapOf(
                 "success" to settings.successEmoji,
-                "error" to settings.errorEmoji
+                "error" to settings.errorEmoji,
+                "skipped" to settings.skippedEmoji
             )
         )
 
@@ -136,6 +137,7 @@ class GenerateReportAction : AnAction() {
         val listHoverBg = shiftColor(bg, shift)
         val success = if (isDark) Color(0x73, 0xC9, 0x91) else Color(0x2E, 0x7D, 0x32)
         val failed = if (isDark) Color(0xF4, 0x87, 0x71) else Color(0xC6, 0x28, 0x28)
+        val skipped = if (isDark) Color(0xB0, 0xB7, 0xC2) else Color(0x5F, 0x66, 0x73)
         val fontFamily = UIManager.getFont("Label.font")?.family ?: "sans-serif"
         val fontSize = UIManager.getFont("Label.font")?.size ?: 13
         val editorFont = UIManager.getFont("EditorPane.font")?.family ?: "monospace"
@@ -157,6 +159,7 @@ class GenerateReportAction : AnAction() {
                 --rcm-list-hover-bg: ${colorToCssAlpha(listHoverBg, 0.5)};
                 --rcm-success: ${colorToCss(success)};
                 --rcm-failed: ${colorToCss(failed)};
+                --rcm-skipped: ${colorToCss(skipped)};
                 --rcm-font-family: '${fontFamily}', sans-serif;
                 --rcm-font-size: ${fontSize}px;
                 --rcm-editor-font-family: '${editorFont}', monospace;
diff --git a/packages/intellij-client/src/main/kotlin/com/blazejkustra/reactcompilermarker/settings/ReactCompilerMarkerConfigurable.kt b/packages/intellij-client/src/main/kotlin/com/blazejkustra/reactcompilermarker/settings/ReactCompilerMarkerConfigurable.kt
index 7b5b424..c99d89a 100644
--- a/packages/intellij-client/src/main/kotlin/com/blazejkustra/reactcompilermarker/settings/ReactCompilerMarkerConfigurable.kt
+++ b/packages/intellij-client/src/main/kotlin/com/blazejkustra/reactcompilermarker/settings/ReactCompilerMarkerConfigurable.kt
@@ -15,6 +15,7 @@ class ReactCompilerMarkerConfigurable(private val project: Project) : Configurab
     private var enabledCheckbox: JBCheckBox? = null
     private var successEmojiField: JBTextField? = null
     private var errorEmojiField: JBTextField? = null
+    private var skippedEmojiField: JBTextField? = null
     private var babelPluginPathField: JBTextField? = null
     private var excludedDirectoriesField: JBTextField? = null
     private var supportedExtensionsField: JBTextField? = null
@@ -26,6 +27,7 @@ class ReactCompilerMarkerConfigurable(private val project: Project) : Configurab
         enabledCheckbox = JBCheckBox("Enable React Compiler Marker")
         successEmojiField = JBTextField()
         errorEmojiField = JBTextField()
+        skippedEmojiField = JBTextField()
         babelPluginPathField = JBTextField()
         excludedDirectoriesField = JBTextField()
         supportedExtensionsField = JBTextField()
@@ -36,6 +38,7 @@ class ReactCompilerMarkerConfigurable(private val project: Project) : Configurab
             .addSeparator()
             .addLabeledComponent(JBLabel("Success emoji:"), successEmojiField!!, 1, false)
             .addLabeledComponent(JBLabel("Error emoji:"), errorEmojiField!!, 1, false)
+            .addLabeledComponent(JBLabel("Skipped emoji:"), skippedEmojiField!!, 1, false)
             .addSeparator()
             .addLabeledComponent(JBLabel("Babel plugin path:"), babelPluginPathField!!, 1, false)
             .addSeparator()
@@ -52,6 +55,7 @@ class ReactCompilerMarkerConfigurable(private val project: Project) : Configurab
         return enabledCheckbox?.isSelected != settings.isEnabled ||
                successEmojiField?.text != settings.successEmoji ||
                errorEmojiField?.text != settings.errorEmoji ||
+               skippedEmojiField?.text != settings.skippedEmoji ||
                babelPluginPathField?.text != settings.babelPluginPath ||
                excludedDirectoriesField?.text != settings.excludedDirectories ||
                supportedExtensionsField?.text != settings.supportedExtensions ||
@@ -63,6 +67,7 @@ class ReactCompilerMarkerConfigurable(private val project: Project) : Configurab
         settings.isEnabled = enabledCheckbox?.isSelected ?: true
         settings.successEmoji = successEmojiField?.text ?: "\u2728"
         settings.errorEmoji = errorEmojiField?.text ?: "\uD83D\uDEAB"
+        settings.skippedEmoji = skippedEmojiField?.text ?: "\u23ED\uFE0F"
         settings.babelPluginPath = babelPluginPathField?.text ?: "node_modules/babel-plugin-react-compiler"
         settings.excludedDirectories = excludedDirectoriesField?.text ?: ""
         settings.supportedExtensions = supportedExtensionsField?.text ?: ""
@@ -78,6 +83,7 @@ class ReactCompilerMarkerConfigurable(private val project: Project) : Configurab
         enabledCheckbox?.isSelected = settings.isEnabled
         successEmojiField?.text = settings.successEmoji
         errorEmojiField?.text = settings.errorEmoji
+        skippedEmojiField?.text = settings.skippedEmoji
         babelPluginPathField?.text = settings.babelPluginPath
         excludedDirectoriesField?.text = settings.excludedDirectories
         supportedExtensionsField?.text = settings.supportedExtensions
@@ -88,6 +94,7 @@ class ReactCompilerMarkerConfigurable(private val project: Project) : Configurab
         enabledCheckbox = null
         successEmojiField = null
         errorEmojiField = null
+        skippedEmojiField = null
         babelPluginPathField = null
         excludedDirectoriesField = null
         supportedExtensionsField = null
diff --git a/packages/intellij-client/src/main/kotlin/com/blazejkustra/reactcompilermarker/settings/ReactCompilerMarkerSettings.kt b/packages/intellij-client/src/main/kotlin/com/blazejkustra/reactcompilermarker/settings/ReactCompilerMarkerSettings.kt
index e66d247..dc01a34 100644
--- a/packages/intellij-client/src/main/kotlin/com/blazejkustra/reactcompilermarker/settings/ReactCompilerMarkerSettings.kt
+++ b/packages/intellij-client/src/main/kotlin/com/blazejkustra/reactcompilermarker/settings/ReactCompilerMarkerSettings.kt
@@ -15,8 +15,9 @@ class ReactCompilerMarkerSettings : PersistentStateComponent<ReactCompilerMarker
 
     class State {
         var isEnabled: Boolean = true
-        var successEmoji: String = "\u2728" // ✨
-        var errorEmoji: String = "\uD83D\uDEAB" // 🚫
+        var successEmoji: String = "✨" // ✨
+        var errorEmoji: String = "🚫" // 🚫
+        var skippedEmoji: String = "⏭️" // ⏭️
         var babelPluginPath: String = "node_modules/babel-plugin-react-compiler"
         var excludedDirectories: String = "node_modules, .git, dist, build, out, coverage, .next, .turbo"
         var supportedExtensions: String = ".js, .jsx, .ts, .tsx, .mjs, .cjs"
@@ -47,6 +48,12 @@ class ReactCompilerMarkerSettings : PersistentStateComponent<ReactCompilerMarker
             myState.errorEmoji = value
         }
 
+    var skippedEmoji: String
+        get() = myState.skippedEmoji
+        set(value) {
+            myState.skippedEmoji = value
+        }
+
     var babelPluginPath: String
         get() = myState.babelPluginPath
         set(value) {
@@ -80,6 +87,7 @@ class ReactCompilerMarkerSettings : PersistentStateComponent<ReactCompilerMarker
     fun toMap(): Map<String, Any?> = mapOf(
         "successEmoji" to successEmoji,
         "errorEmoji" to errorEmoji,
+        "skippedEmoji" to skippedEmoji,
         "babelPluginPath" to babelPluginPath,
         "excludedDirectories" to excludedDirectoriesList,
         "supportedExtensions" to supportedExtensionsList,
diff --git a/packages/nvim-client/lua/react-compiler-marker/config.lua b/packages/nvim-client/lua/react-compiler-marker/config.lua
index 2ffa8da..0cbca71 100644
--- a/packages/nvim-client/lua/react-compiler-marker/config.lua
+++ b/packages/nvim-client/lua/react-compiler-marker/config.lua
@@ -18,6 +18,8 @@ M.defaults = {
     success = "✨",
     -- Marker for components that failed to optimize
     error = "🚫",
+    -- Marker for components that opted out via "use no memo"
+    skipped = "⏭️",
   },
 
   -- Path to babel-plugin-react-compiler (relative to workspace root)
@@ -122,6 +124,7 @@ function M.get_server_settings()
     reactCompilerMarker = {
       successEmoji = M.config.emojis.success,
       errorEmoji = M.config.emojis.error,
+      skippedEmoji = M.config.emojis.skipped,
       babelPluginPath = M.config.babel_plugin_path,
     },
   }
diff --git a/packages/server/src/checkReactCompiler.ts b/packages/server/src/checkReactCompiler.ts
index fa4cbe1..1894a15 100644
--- a/packages/server/src/checkReactCompiler.ts
+++ b/packages/server/src/checkReactCompiler.ts
@@ -27,6 +27,8 @@ export type LoggerEvent = {
   kind?: string;
   fnLoc: EventLocation;
   fnName?: string;
+  reason?: string;
+  loc?: EventLocation;
   detail?: Details & {
     options: Details;
   };
@@ -52,6 +54,7 @@ export function clearPluginCache(): void {
 interface CompilationResult {
   successfulCompilations: Array<LoggerEvent>;
   failedCompilations: Array<LoggerEvent>;
+  skippedCompilations: Array<LoggerEvent>;
 }
 
 const compilationCache = new LRUCache<CompilationResult>(100);
@@ -79,6 +82,7 @@ function runBabelPluginReactCompiler(
 ) {
   const successfulCompilations: Array<LoggerEvent> = [];
   const failedCompilations: Array<LoggerEvent> = [];
+  const skippedCompilations: Array<LoggerEvent> = [];
 
   const logger = {
     logEvent(filename: string | null, rawEvent: LoggerEvent) {
@@ -93,6 +97,9 @@ function runBabelPluginReactCompiler(
         case "PipelineError":
           failedCompilations.push(event);
           return;
+        case "CompileSkip":
+          skippedCompilations.push(event);
+          return;
       }
     },
   };
@@ -126,6 +133,7 @@ function runBabelPluginReactCompiler(
   return {
     successfulCompilations,
     failedCompilations,
+    skippedCompilations,
   };
 }
 
@@ -180,7 +188,7 @@ export function checkReactCompiler(
   const BabelPluginReactCompiler = importBabelPluginReactCompiler(workspaceFolder, babelPluginPath);
 
   if (!BabelPluginReactCompiler) {
-    return { successfulCompilations: [], failedCompilations: [] };
+    return { successfulCompilations: [], failedCompilations: [], skippedCompilations: [] };
   }
 
   try {
@@ -198,7 +206,11 @@ export function checkReactCompiler(
     return result;
   } catch (error: any) {
     throttledError(`Failed to compile the file. Please check the file content. ${error?.message}`);
-    const emptyResult: CompilationResult = { successfulCompilations: [], failedCompilations: [] };
+    const emptyResult: CompilationResult = {
+      successfulCompilations: [],
+      failedCompilations: [],
+      skippedCompilations: [],
+    };
     compilationCache.set(sourceCode, filename, emptyResult);
     return emptyResult;
   }
diff --git a/packages/server/src/inlayHints.ts b/packages/server/src/inlayHints.ts
index 3a6e8cf..e61a475 100644
--- a/packages/server/src/inlayHints.ts
+++ b/packages/server/src/inlayHints.ts
@@ -79,8 +79,10 @@ export function generateInlayHints(
   document: TextDocument,
   successfulCompilations: LoggerEvent[],
   failedCompilations: LoggerEvent[],
+  skippedCompilations: LoggerEvent[],
   successEmoji: string | null,
   errorEmoji: string | null,
+  skippedEmoji: string | null,
   documentUri: string,
   tooltipFormat: TooltipFormat = "markdown",
   clientName?: string
@@ -119,6 +121,28 @@ export function generateInlayHints(
     }
   }
 
+  // Generate hints for skipped compilations (opt-out via "use no memo")
+  if (skippedEmoji) {
+    for (const log of skippedCompilations) {
+      const positionInfo = getInlayHintPosition(document, log);
+      if (!positionInfo) {
+        continue;
+      }
+
+      const f = fmt[tooltipFormat];
+      const tooltipValue = `${skippedEmoji} ${f.bold(positionInfo.functionName)} has been skipped by React Compiler due to a \`"use no memo"\` directive.`;
+
+      const hint: InlayHint = {
+        position: positionInfo.position,
+        label: `${skippedEmoji} `,
+        kind: InlayHintKind.Type,
+        tooltip: { kind: "markdown", value: tooltipValue },
+      };
+
+      hints.push(hint);
+    }
+  }
+
   // Generate hint for failed compilations (one hint with all errors)
   if (errorEmoji && failedCompilations.length > 0) {
     const f = fmt[tooltipFormat];
diff --git a/packages/server/src/parseLog.ts b/packages/server/src/parseLog.ts
index a22933c..fb0d590 100644
--- a/packages/server/src/parseLog.ts
+++ b/packages/server/src/parseLog.ts
@@ -21,6 +21,9 @@ export function parseLog(log: LoggerEvent): ParsedLog {
       log.detail?.options?.details?.at(0)?.loc?.[property]?.[field] ??
       log.detail?.options?.loc?.[property]?.[field] ??
       log.detail?.loc?.[property]?.[field] ??
+      // CompileSkip events expose the directive location at the top level
+      log.loc?.[property]?.[field] ??
+      log.fnLoc?.[property]?.[field] ??
       defaultValue
     );
   };
@@ -30,7 +33,7 @@ export function parseLog(log: LoggerEvent): ParsedLog {
   const startChar = getLocValue("start", "column", 0);
   const endChar = getLocValue("end", "column", 0);
 
-  const reason = log?.detail?.options?.reason || "Unknown reason";
+  const reason = log?.detail?.options?.reason || log.reason || "Unknown reason";
   const description = log?.detail?.options?.description || "";
 
   return {
diff --git a/packages/server/src/report/buildTree.ts b/packages/server/src/report/buildTree.ts
index 1aa71c1..7a29473 100644
--- a/packages/server/src/report/buildTree.ts
+++ b/packages/server/src/report/buildTree.ts
@@ -10,6 +10,7 @@ export function buildReportTree(report: ReactCompilerReport): ReportTreeData {
     children: [],
     successCount: 0,
     failedCount: 0,
+    skippedCount: 0,
   };
 
   for (const file of report.files) {
@@ -34,6 +35,7 @@ export function buildReportTree(report: ReactCompilerReport): ReportTreeData {
           children: isFile ? undefined : [],
           successCount: 0,
           failedCount: 0,
+          skippedCount: 0,
         };
         current.children.push(child);
       }
@@ -41,7 +43,7 @@ export function buildReportTree(report: ReactCompilerReport): ReportTreeData {
       if (isFile) {
         const toEntry = (
           event: (typeof file.success)[number],
-          kind: "success" | "failure"
+          kind: NormalizedEntry["kind"]
         ): NormalizedEntry => {
           const parsed = parseLog(event);
           return {
@@ -53,13 +55,16 @@ export function buildReportTree(report: ReactCompilerReport): ReportTreeData {
             column: parsed.startChar,
           };
         };
+        const skipped = file.skipped ?? [];
         const entries: NormalizedEntry[] = [
           ...file.success.map((event) => toEntry(event, "success")),
           ...file.failed.map((event) => toEntry(event, "failure")),
+          ...skipped.map((event) => toEntry(event, "skip")),
         ];
         child.entries = entries;
         child.successCount = entries.filter((e) => e.kind === "success").length;
         child.failedCount = entries.filter((e) => e.kind === "failure").length;
+        child.skippedCount = entries.filter((e) => e.kind === "skip").length;
       }
 
       current = child;
@@ -85,11 +90,13 @@ function aggregateCounts(node: TreeNode): void {
 
   node.successCount = 0;
   node.failedCount = 0;
+  node.skippedCount = 0;
 
   for (const child of node.children) {
     aggregateCounts(child);
     node.successCount += child.successCount;
     node.failedCount += child.failedCount;
+    node.skippedCount += child.skippedCount;
   }
 }
 
diff --git a/packages/server/src/report/generate.ts b/packages/server/src/report/generate.ts
index 469a191..3494f13 100644
--- a/packages/server/src/report/generate.ts
+++ b/packages/server/src/report/generate.ts
@@ -15,13 +15,16 @@ export interface ReactCompilerReport {
     filesWithResults: number;
     compiledFiles: number;
     failedFiles: number;
+    skippedFiles: number;
     successCount: number;
     failedCount: number;
+    skippedCount: number;
   };
   files: Array<{
     path: string;
     success: LoggerEvent[];
     failed: LoggerEvent[];
+    skipped: LoggerEvent[];
   }>;
   errors: Array<{
     path: string;
@@ -220,16 +223,13 @@ export async function generateReport(options: ReportOptions): Promise<ReactCompi
   const results = await mapWithConcurrency(files, maxConcurrency, async (filePath) => {
     try {
       const sourceCode = await fs.readFile(filePath, "utf8");
-      const { successfulCompilations, failedCompilations } = checkReactCompiler(
-        sourceCode,
-        filePath,
-        root,
-        options.babelPluginPath
-      );
+      const { successfulCompilations, failedCompilations, skippedCompilations } =
+        checkReactCompiler(sourceCode, filePath, root, options.babelPluginPath);
       return {
         path: path.relative(root, filePath),
         success: successfulCompilations,
         failed: failedCompilations,
+        skipped: skippedCompilations,
       };
     } catch (error: any) {
       errors.push({
@@ -244,22 +244,34 @@ export async function generateReport(options: ReportOptions): Promise<ReactCompi
 
   const filesWithResults = results.filter(
     (result): result is NonNullable<typeof result> =>
-      !!result && (result.success.length > 0 || result.failed.length > 0)
+      !!result &&
+      (result.success.length > 0 || result.failed.length > 0 || result.skipped.length > 0)
   );
 
   const totals = filesWithResults.reduce(
     (acc, result) => {
       acc.successCount += result.success.length;
       acc.failedCount += result.failed.length;
+      acc.skippedCount += result.skipped.length;
       if (result.success.length > 0) {
         acc.compiledFiles += 1;
       }
       if (result.failed.length > 0) {
         acc.failedFiles += 1;
       }
+      if (result.skipped.length > 0) {
+        acc.skippedFiles += 1;
+      }
       return acc;
     },
-    { successCount: 0, failedCount: 0, compiledFiles: 0, failedFiles: 0 }
+    {
+      successCount: 0,
+      failedCount: 0,
+      skippedCount: 0,
+      compiledFiles: 0,
+      failedFiles: 0,
+      skippedFiles: 0,
+    }
   );
 
   return {
@@ -269,8 +281,10 @@ export async function generateReport(options: ReportOptions): Promise<ReactCompi
       filesWithResults: filesWithResults.length,
       compiledFiles: totals.compiledFiles,
       failedFiles: totals.failedFiles,
+      skippedFiles: totals.skippedFiles,
       successCount: totals.successCount,
       failedCount: totals.failedCount,
+      skippedCount: totals.skippedCount,
     },
     files: filesWithResults,
     errors,
diff --git a/packages/server/src/report/types.ts b/packages/server/src/report/types.ts
index cffd3a8..9d1fd96 100644
--- a/packages/server/src/report/types.ts
+++ b/packages/server/src/report/types.ts
@@ -2,7 +2,7 @@ import type { ReactCompilerReport } from "./generate";
 
 export interface NormalizedEntry {
   fnName: string | undefined;
-  kind: "success" | "failure";
+  kind: "success" | "failure" | "skip";
   reason: string;
   description: string;
   line: number | undefined;
@@ -16,6 +16,7 @@ export interface TreeNode {
   children?: TreeNode[];
   successCount: number;
   failedCount: number;
+  skippedCount: number;
   entries?: NormalizedEntry[];
 }
 
@@ -27,7 +28,7 @@ export interface ReportTreeData {
 }
 
 export interface FilterState {
-  statusFilter: "all" | "compiled" | "failed";
+  statusFilter: "all" | "compiled" | "failed" | "skipped";
   searchQuery: string;
   errorTypeFilter: string;
 }
@@ -35,6 +36,7 @@ export interface FilterState {
 export interface EmojiConfig {
   success: string;
   error: string;
+  skipped: string;
 }
 
 export type WebviewMessage =
diff --git a/packages/server/src/report/webviewContent.ts b/packages/server/src/report/webviewContent.ts
index 74208d1..13d942d 100644
--- a/packages/server/src/report/webviewContent.ts
+++ b/packages/server/src/report/webviewContent.ts
@@ -219,6 +219,7 @@ export function getReportHtml(options: ReportHtmlOptions): string {
     }
     .success-text { color: var(--rcm-success); }
     .failed-text { color: var(--rcm-failed); }
+    .skipped-text { color: var(--rcm-skipped, var(--rcm-foreground)); opacity: 0.85; }
 
     .errors-section {
       margin-top: 16px;
@@ -259,6 +260,7 @@ export function getReportHtml(options: ReportHtmlOptions): string {
       <option value="all">All files</option>
       <option value="compiled">Compiled only</option>
       <option value="failed">Failed only</option>
+      <option value="skipped">Skipped only</option>
     </select>
     <select id="errorTypeFilter" title="Filter by error type">
       <option value="">All error types</option>
@@ -317,10 +319,12 @@ export function getReportHtml(options: ReportHtmlOptions): string {
 
     function renderSummary() {
       var t = reportData.totals;
+      var skippedCount = t.skippedCount || 0;
       document.getElementById('summary').innerHTML =
         '<div class="stat"><span class="stat-value">' + t.filesScanned + '</span><span class="stat-label">scanned</span></div>' +
         '<div class="stat"><span class="stat-value success-text">' + t.successCount + ' ' + emojis.success + '</span><span class="stat-label">compiled</span></div>' +
         '<div class="stat"><span class="stat-value failed-text">' + t.failedCount + ' ' + emojis.error + '</span><span class="stat-label">failed</span></div>' +
+        '<div class="stat"><span class="stat-value skipped-text">' + skippedCount + ' ' + emojis.skipped + '</span><span class="stat-label">skipped</span></div>' +
         '<div class="stat"><span class="stat-value">' + t.filesWithResults + '</span><span class="stat-label">files with results</span></div>';
       document.getElementById('generatedAt').textContent = 'Generated: ' + new Date(reportData.generatedAt).toLocaleString();
     }
@@ -362,6 +366,7 @@ export function getReportHtml(options: ReportHtmlOptions): string {
       if (node.type === 'file') {
         if (sf === 'compiled' && node.successCount === 0) return false;
         if (sf === 'failed' && node.failedCount === 0) return false;
+        if (sf === 'skipped' && (node.skippedCount || 0) === 0) return false;
         if (sq && !node.path.toLowerCase().includes(sq)) return false;
         if (ef) {
           var hasMatchingError = node.entries && node.entries.some(function(e) {
@@ -390,11 +395,16 @@ export function getReportHtml(options: ReportHtmlOptions): string {
         var col = e.column || 0;
         var locText = line !== undefined ? ':' + line : '';
         var isSuccess = e.kind === 'success';
+        var isSkip = e.kind === 'skip';
+        var isFailure = e.kind === 'failure';
 
-        if (!isSuccess && filterState.errorTypeFilter && e.reason !== filterState.errorTypeFilter) continue;
+        if (isFailure && filterState.errorTypeFilter && e.reason !== filterState.errorTypeFilter) continue;
+        if (filterState.statusFilter === 'compiled' && !isSuccess) continue;
+        if (filterState.statusFilter === 'failed' && !isFailure) continue;
+        if (filterState.statusFilter === 'skipped' && !isSkip) continue;
 
-        var emoji = isSuccess ? emojis.success : emojis.error;
-        var textClass = isSuccess ? 'success-text' : 'failed-text';
+        var emoji = isSuccess ? emojis.success : isSkip ? emojis.skipped : emojis.error;
+        var textClass = isSuccess ? 'success-text' : isSkip ? 'skipped-text' : 'failed-text';
         var nameHtml = name ? '<span class="detail-name ' + textClass + '">' + escapeHtml(name) + '</span>' : '';
         var reasonHtml = !isSuccess && e.reason ? '<span class="detail-reason">' + escapeHtml(e.reason) + '</span>' : '';
 
@@ -426,9 +436,16 @@ export function getReportHtml(options: ReportHtmlOptions): string {
       html += '<span class="icon">' + nodeIcon + '</span>';
       html += '<span class="node-name ' + nameClass + '" data-path="' + escapeAttr(node.path) + '">' + escapeHtml(node.name) + '</span>';
       var countsHtml = '';
+      var skippedCount = node.skippedCount || 0;
       if (node.successCount > 0) countsHtml += node.successCount + emojis.success;
-      if (node.successCount > 0 && node.failedCount > 0) countsHtml += ' ';
-      if (node.failedCount > 0) countsHtml += node.failedCount + emojis.error;
+      if (node.failedCount > 0) {
+        if (countsHtml) countsHtml += ' ';
+        countsHtml += node.failedCount + emojis.error;
+      }
+      if (skippedCount > 0) {
+        if (countsHtml) countsHtml += ' ';
+        countsHtml += skippedCount + emojis.skipped;
+      }
       if (countsHtml) html += '<span class="counts">' + countsHtml + '</span>';
       html += '</div>';
 
diff --git a/packages/server/src/server.ts b/packages/server/src/server.ts
index f8fbcc7..914cf7f 100644
--- a/packages/server/src/server.ts
+++ b/packages/server/src/server.ts
@@ -46,12 +46,14 @@ const documents: TextDocuments<TextDocument> = new TextDocuments(TextDocument);
 interface Settings {
   successEmoji: string | null;
   errorEmoji: string | null;
+  skippedEmoji: string | null;
   babelPluginPath: string;
 }
 
 let globalSettings: Settings = {
   successEmoji: "✨",
   errorEmoji: "🚫",
+  skippedEmoji: "⏭️",
   babelPluginPath: "node_modules/babel-plugin-react-compiler",
 };
 
@@ -136,6 +138,7 @@ connection.onDidChangeConfiguration((change) => {
     globalSettings = {
       successEmoji: settings.successEmoji ?? "✨",
       errorEmoji: settings.errorEmoji ?? "🚫",
+      skippedEmoji: settings.skippedEmoji ?? "⏭️",
       babelPluginPath: settings.babelPluginPath ?? "node_modules/babel-plugin-react-compiler",
     };
 
@@ -175,19 +178,22 @@ connection.languages.inlayHint.on(async (params: InlayHintParams): Promise<Inlay
     try {
       const sourceCode = document.getText();
 
-      const { successfulCompilations, failedCompilations } = checkReactCompiler(
-        sourceCode,
-        fileNameForCompiler,
-        workspaceFolder,
-        globalSettings.babelPluginPath
-      );
+      const { successfulCompilations, failedCompilations, skippedCompilations } =
+        checkReactCompiler(
+          sourceCode,
+          fileNameForCompiler,
+          workspaceFolder,
+          globalSettings.babelPluginPath
+        );
 
       return generateInlayHints(
         document,
         successfulCompilations,
         failedCompilations,
+        skippedCompilations,
         globalSettings.successEmoji,
         globalSettings.errorEmoji,
+        globalSettings.skippedEmoji,
         params.textDocument.uri,
         tooltipFormat,
         clientName
@@ -223,7 +229,7 @@ connection.onHover((params: HoverParams): Hover | null => {
   try {
     const sourceCode = document.getText();
 
-    const { successfulCompilations, failedCompilations } = checkReactCompiler(
+    const { successfulCompilations, failedCompilations, skippedCompilations } = checkReactCompiler(
       sourceCode,
       fileNameForCompiler,
       workspaceFolder,
@@ -235,8 +241,10 @@ connection.onHover((params: HoverParams): Hover | null => {
       document,
       successfulCompilations,
       failedCompilations,
+      skippedCompilations,
       globalSettings.successEmoji,
       globalSettings.errorEmoji,
+      globalSettings.skippedEmoji,
       params.textDocument.uri,
       tooltipFormat,
       clientName
@@ -330,7 +338,7 @@ connection.onExecuteCommand(async (params: ExecuteCommandParams) => {
             : undefined,
         });
         logMessage(
-          `Report generated: scanned=${report.totals.filesScanned} files=${report.totals.filesWithResults} success=${report.totals.successCount} failed=${report.totals.failedCount}`
+          `Report generated: scanned=${report.totals.filesScanned} files=${report.totals.filesWithResults} success=${report.totals.successCount} failed=${report.totals.failedCount} skipped=${report.totals.skippedCount}`
         );
         return { success: true, report };
       } catch (error: any) {
@@ -368,6 +376,7 @@ connection.onExecuteCommand(async (params: ExecuteCommandParams) => {
         const emojis = {
           success: htmlOptions?.emojis?.success ?? globalSettings.successEmoji ?? "✨",
           error: htmlOptions?.emojis?.error ?? globalSettings.errorEmoji ?? "🚫",
+          skipped: htmlOptions?.emojis?.skipped ?? globalSettings.skippedEmoji ?? "⏭️",
         };
         const html = getReportHtml({
           data: treeData,
@@ -377,7 +386,7 @@ connection.onExecuteCommand(async (params: ExecuteCommandParams) => {
           scriptExtra: htmlOptions?.scriptExtra,
         });
         logMessage(
-          `HTML report generated: scanned=${report.totals.filesScanned} files=${report.totals.filesWithResults} success=${report.totals.successCount} failed=${report.totals.failedCount}`
+          `HTML report generated: scanned=${report.totals.filesScanned} files=${report.totals.filesWithResults} success=${report.totals.successCount} failed=${report.totals.failedCount} skipped=${report.totals.skippedCount}`
         );
         return { success: true, html, report };
       } catch (error: any) {
diff --git a/packages/vscode-client/package.json b/packages/vscode-client/package.json
index 0b4cc8d..0977557 100644
--- a/packages/vscode-client/package.json
+++ b/packages/vscode-client/package.json
@@ -193,6 +193,12 @@
           "nullable": true,
           "default": "✨",
           "description": "Emoji marker to display next to components that were successfully memoized"
+        },
+        "reactCompilerMarker.skippedEmoji": {
+          "type": "string",
+          "nullable": true,
+          "default": "⏭️",
+          "description": "Emoji marker to display next to components that opted out via the \"use no memo\" directive"
         }
       }
     }
diff --git a/packages/vscode-client/src/extension.ts b/packages/vscode-client/src/extension.ts
index 0563e5a..36a1e8a 100644
--- a/packages/vscode-client/src/extension.ts
+++ b/packages/vscode-client/src/extension.ts
@@ -169,6 +169,7 @@ export function activate(context: vscode.ExtensionContext): void {
           const emojis = {
             success: config.get<string>("successEmoji") ?? "\u2728",
             error: config.get<string>("errorEmoji") ?? "\uD83D\uDEAB",
+            skipped: config.get<string>("skippedEmoji") ?? "\u23ED\uFE0F",
           };
           const workspaceFolder = vscode.workspace.workspaceFolders?.[0];
           if (!workspaceFolder) {
@@ -414,6 +415,7 @@ function registerCommands(
               const emojis = {
                 success: config.get<string>("successEmoji") ?? "✨",
                 error: config.get<string>("errorEmoji") ?? "🚫",
+                skipped: config.get<string>("skippedEmoji") ?? "⏭️",
               };
               ReportPanel.createOrShow(workspaceFolder.uri, treeData, emojis);
             } finally {
diff --git a/packages/vscode-client/src/report/ReportPanel.ts b/packages/vscode-client/src/report/ReportPanel.ts
index 6f31855..832ac74 100644
--- a/packages/vscode-client/src/report/ReportPanel.ts
+++ b/packages/vscode-client/src/report/ReportPanel.ts
@@ -81,6 +81,7 @@ export class ReportPanel {
         --rcm-list-hover-bg: var(--vscode-list-hoverBackground);
         --rcm-success: var(--vscode-testing-iconPassed, #4caf50);
         --rcm-failed: var(--vscode-testing-iconFailed, #f44336);
+        --rcm-skipped: var(--vscode-testing-iconSkipped, var(--vscode-descriptionForeground));
         --rcm-font-family: var(--vscode-font-family);
         --rcm-font-size: var(--vscode-font-size);
         --rcm-editor-font-family: var(--vscode-editor-font-family, monospace);
diff --git a/packages/vscode-client/src/sidebar/ReportsTreeProvider.ts b/packages/vscode-client/src/sidebar/ReportsTreeProvider.ts
index 97ac382..1f8d01e 100644
--- a/packages/vscode-client/src/sidebar/ReportsTreeProvider.ts
+++ b/packages/vscode-client/src/sidebar/ReportsTreeProvider.ts
@@ -22,9 +22,11 @@ export class ReportItem extends vscode.TreeItem {
 
     super(label, vscode.TreeItemCollapsibleState.None);
 
-    this.description = `\u2728 ${report.totals.successCount}  \uD83D\uDEAB ${report.totals.failedCount}`;
+    const skippedCount = report.totals.skippedCount ?? 0;
+    const skippedDesc = skippedCount > 0 ? `  \u23ED\uFE0F ${skippedCount}` : "";
+    this.description = `\u2728 ${report.totals.successCount}  \uD83D\uDEAB ${report.totals.failedCount}${skippedDesc}`;
     this.iconPath = new vscode.ThemeIcon("graph");
-    this.tooltip = `Files scanned: ${report.totals.filesScanned}\nCompiled: ${report.totals.successCount}\nFailed: ${report.totals.failedCount}`;
+    this.tooltip = `Files scanned: ${report.totals.filesScanned}\nCompiled: ${report.totals.successCount}\nFailed: ${report.totals.failedCount}\nSkipped: ${skippedCount}`;
     this.contextValue = "reportItem";
     this.command = {
       command: "react-compiler-marker.openReport",
diff --git a/packages/vscode-client/test/decorations.test.ts b/packages/vscode-client/test/decorations.test.ts
index febff55..f966c33 100644
--- a/packages/vscode-client/test/decorations.test.ts
+++ b/packages/vscode-client/test/decorations.test.ts
@@ -132,6 +132,39 @@ suite("Critical error handling", () => {
     );
   });
 
+  test('use-no-memo.tsx: opted-out functions are reported as skipped, not failed', () => {
+    const text = readFixture("use-no-memo.tsx").trim();
+    const filename = "/mock/use-no-memo.tsx";
+
+    const { successfulCompilations, failedCompilations, skippedCompilations } =
+      compileFixture(text, filename);
+
+    assert.ok(Array.isArray(skippedCompilations), "skippedCompilations should be an array");
+    assert.strictEqual(
+      skippedCompilations.length,
+      1,
+      `Expected 1 skipped compilation, got ${skippedCompilations.length}`
+    );
+    assert.strictEqual(
+      successfulCompilations.length,
+      1,
+      `Expected 1 successful compilation, got ${successfulCompilations.length}`
+    );
+
+    // No remaining failure should overlap the opted-out component's range.
+    const skipStart = skippedCompilations[0].fnLoc?.start?.line ?? 0;
+    const skipEnd = skippedCompilations[0].fnLoc?.end?.line ?? skipStart;
+    for (const failed of failedCompilations) {
+      const failStart = failed.fnLoc?.start?.line ?? 0;
+      const failEnd = failed.fnLoc?.end?.line ?? failStart;
+      const overlaps = failStart <= skipEnd && skipStart <= failEnd;
+      assert.ok(
+        !overlaps,
+        `Failure at line ${failStart} overlaps the opted-out component (lines ${skipStart}-${skipEnd}); opt-outs must not be reported as failures.`
+      );
+    }
+  });
+
   test("error-without-ranges.tsx: handles errors without location ranges gracefully", () => {
     const text = readFixture("error-without-ranges.tsx").trim();
     const filename = "/mock/error-without-ranges.tsx";
diff --git a/packages/vscode-client/test/fixtures/use-no-memo.tsx b/packages/vscode-client/test/fixtures/use-no-memo.tsx
new file mode 100644
index 0000000..4589198
--- /dev/null
+++ b/packages/vscode-client/test/fixtures/use-no-memo.tsx
@@ -0,0 +1,22 @@
+import React from "react";
+
+// Opted out via "use no memo" — the compiler emits CompileSkip for this one.
+export function OptedOutComponent({ name }: { name: string }) {
+  "use no memo";
+
+  return <div>Hello {name}</div>;
+}
+
+// Compiles cleanly.
+export function CompiledComponent({ name }: { name: string }) {
+  return <div>Hello {name}</div>;
+}
+
+// Genuine compile failure — mutates a ref outside an effect — must remain in the failed bucket.
+export function FailingComponent() {
+  const ref = React.useRef("initial");
+
+  ref.current = "updated";
+
+  return <div>{ref.current}</div>;
+}
diff --git a/packages/zed-client/README.md b/packages/zed-client/README.md
index a187c36..bf843cc 100644
--- a/packages/zed-client/README.md
+++ b/packages/zed-client/README.md
@@ -54,6 +54,7 @@ Add settings to your Zed `settings.json` (`cmd+,`):
       "settings": {
         "successEmoji": "✨",
         "errorEmoji": "🚫",
+        "skippedEmoji": "⏭️",
         "babelPluginPath": "node_modules/babel-plugin-react-compiler"
       }
     }
@@ -67,6 +68,7 @@ Add settings to your Zed `settings.json` (`cmd+,`):
 |---------|---------|-------------|
 | `successEmoji` | `✨` | Emoji shown for successfully optimized components |
 | `errorEmoji` | `🚫` | Emoji shown for components with optimization errors |
+| `skippedEmoji` | `⏭️` | Emoji shown for components that opted out via `"use no memo"` |
 | `babelPluginPath` | `node_modules/babel-plugin-react-compiler` | Path to the babel-plugin-react-compiler package |
 
 ## Limitations