diff --git a/compiler/packages/babel-plugin-react-compiler/src/CompilerError.ts b/compiler/packages/babel-plugin-react-compiler/src/CompilerError.ts
index c7c8d6a161e..7bc0d6a551a 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/CompilerError.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/CompilerError.ts
@@ -854,7 +854,9 @@ function getRuleForCategoryImpl(category: ErrorCategory): LintRule {
         severity: ErrorSeverity.Error,
         name: 'set-state-in-effect',
         description:
-          'Validates against calling setState synchronously in an effect, which can lead to re-renders that degrade performance',
+          'Validates against calling setState synchronously in an effect. ' +
+          'This can indicate non-local derived data, a derived event pattern, or ' +
+          'improper external data synchronization.',
         preset: LintRulePreset.Recommended,
       };
     }
diff --git a/compiler/packages/babel-plugin-react-compiler/src/HIR/Environment.ts b/compiler/packages/babel-plugin-react-compiler/src/HIR/Environment.ts
index 17dd53adf56..750e650dec1 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/HIR/Environment.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/HIR/Environment.ts
@@ -695,6 +695,16 @@ export const EnvironmentConfigSchema = z.object({
    */
   enableAllowSetStateFromRefsInEffects: z.boolean().default(true),
 
+  /**
+   * When enabled, provides verbose error messages for setState calls within effects,
+   * presenting multiple possible fixes to the user/agent since we cannot statically
+   * determine which specific use-case applies:
+   * 1. Non-local derived data - requires restructuring state ownership
+   * 2. Derived event pattern - detecting when a prop changes
+   * 3. Force update / external sync - should use useSyncExternalStore
+   */
+  enableVerboseNoSetStateInEffect: z.boolean().default(false),
+
   /**
    * Enables inference of event handler types for JSX props on built-in DOM elements.
    * When enabled, functions passed to event handler props (props starting with "on")
diff --git a/compiler/packages/babel-plugin-react-compiler/src/Validation/ValidateNoSetStateInEffects.ts b/compiler/packages/babel-plugin-react-compiler/src/Validation/ValidateNoSetStateInEffects.ts
index 86070e2973e..91de8f20671 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/Validation/ValidateNoSetStateInEffects.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/Validation/ValidateNoSetStateInEffects.ts
@@ -121,26 +121,58 @@ export function validateNoSetStateInEffects(
             if (arg !== undefined && arg.kind === 'Identifier') {
               const setState = setStateFunctions.get(arg.identifier.id);
               if (setState !== undefined) {
-                errors.pushDiagnostic(
-                  CompilerDiagnostic.create({
-                    category: ErrorCategory.EffectSetState,
-                    reason:
-                      'Calling setState synchronously within an effect can trigger cascading renders',
-                    description:
-                      'Effects are intended to synchronize state between React and external systems such as manually updating the DOM, state management libraries, or other platform APIs. ' +
-                      'In general, the body of an effect should do one or both of the following:\n' +
-                      '* Update external systems with the latest state from React.\n' +
-                      '* Subscribe for updates from some external system, calling setState in a callback function when external state changes.\n\n' +
-                      'Calling setState synchronously within an effect body causes cascading renders that can hurt performance, and is not recommended. ' +
-                      '(https://react.dev/learn/you-might-not-need-an-effect)',
-                    suggestions: null,
-                  }).withDetails({
-                    kind: 'error',
-                    loc: setState.loc,
-                    message:
-                      'Avoid calling setState() directly within an effect',
-                  }),
-                );
+                const enableVerbose =
+                  env.config.enableVerboseNoSetStateInEffect;
+                if (enableVerbose) {
+                  errors.pushDiagnostic(
+                    CompilerDiagnostic.create({
+                      category: ErrorCategory.EffectSetState,
+                      reason:
+                        'Calling setState synchronously within an effect can trigger cascading renders',
+                      description:
+                        'Effects are intended to synchronize state between React and external systems. ' +
+                        'Calling setState synchronously causes cascading renders that hurt performance.\n\n' +
+                        'This pattern may indicate one of several issues:\n\n' +
+                        '**1. Non-local derived data**: If the value being set could be computed from props/state ' +
+                        'but requires data from a parent component, consider restructuring state ownership so the ' +
+                        'derivation can happen during render in the component that owns the relevant state.\n\n' +
+                        "**2. Derived event pattern**: If you're detecting when a prop changes (e.g., `isPlaying` " +
+                        'transitioning from false to true), this often indicates the parent should provide an event ' +
+                        'callback (like `onPlay`) instead of just the current state. Request access to the original event.\n\n' +
+                        "**3. Force update / external sync**: If you're forcing a re-render to sync with an external " +
+                        'data source (mutable values outside React), use `useSyncExternalStore` to properly subscribe ' +
+                        'to external state changes.\n\n' +
+                        'See: https://react.dev/learn/you-might-not-need-an-effect',
+                      suggestions: null,
+                    }).withDetails({
+                      kind: 'error',
+                      loc: setState.loc,
+                      message:
+                        'Avoid calling setState() directly within an effect',
+                    }),
+                  );
+                } else {
+                  errors.pushDiagnostic(
+                    CompilerDiagnostic.create({
+                      category: ErrorCategory.EffectSetState,
+                      reason:
+                        'Calling setState synchronously within an effect can trigger cascading renders',
+                      description:
+                        'Effects are intended to synchronize state between React and external systems such as manually updating the DOM, state management libraries, or other platform APIs. ' +
+                        'In general, the body of an effect should do one or both of the following:\n' +
+                        '* Update external systems with the latest state from React.\n' +
+                        '* Subscribe for updates from some external system, calling setState in a callback function when external state changes.\n\n' +
+                        'Calling setState synchronously within an effect body causes cascading renders that can hurt performance, and is not recommended. ' +
+                        '(https://react.dev/learn/you-might-not-need-an-effect)',
+                      suggestions: null,
+                    }).withDetails({
+                      kind: 'error',
+                      loc: setState.loc,
+                      message:
+                        'Avoid calling setState() directly within an effect',
+                    }),
+                  );
+                }
               }
             }
           }
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/invalid-set-state-in-effect-verbose-derived-event.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/invalid-set-state-in-effect-verbose-derived-event.expect.md
new file mode 100644
index 00000000000..60479b8c230
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/invalid-set-state-in-effect-verbose-derived-event.expect.md
@@ -0,0 +1,74 @@
+
+## Input
+
+```javascript
+// @validateNoSetStateInEffects @enableVerboseNoSetStateInEffect
+import {useState, useEffect} from 'react';
+
+function VideoPlayer({isPlaying}) {
+  const [wasPlaying, setWasPlaying] = useState(isPlaying);
+  useEffect(() => {
+    if (isPlaying !== wasPlaying) {
+      setWasPlaying(isPlaying);
+      console.log('Play state changed!');
+    }
+  }, [isPlaying, wasPlaying]);
+  return <video />;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: VideoPlayer,
+  params: [{isPlaying: true}],
+};
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime"; // @validateNoSetStateInEffects @enableVerboseNoSetStateInEffect
+import { useState, useEffect } from "react";
+
+function VideoPlayer(t0) {
+  const $ = _c(5);
+  const { isPlaying } = t0;
+  const [wasPlaying, setWasPlaying] = useState(isPlaying);
+  let t1;
+  let t2;
+  if ($[0] !== isPlaying || $[1] !== wasPlaying) {
+    t1 = () => {
+      if (isPlaying !== wasPlaying) {
+        setWasPlaying(isPlaying);
+        console.log("Play state changed!");
+      }
+    };
+
+    t2 = [isPlaying, wasPlaying];
+    $[0] = isPlaying;
+    $[1] = wasPlaying;
+    $[2] = t1;
+    $[3] = t2;
+  } else {
+    t1 = $[2];
+    t2 = $[3];
+  }
+  useEffect(t1, t2);
+  let t3;
+  if ($[4] === Symbol.for("react.memo_cache_sentinel")) {
+    t3 = <video />;
+    $[4] = t3;
+  } else {
+    t3 = $[4];
+  }
+  return t3;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: VideoPlayer,
+  params: [{ isPlaying: true }],
+};
+
+```
+      
+### Eval output
+(kind: ok) <video></video>
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/invalid-set-state-in-effect-verbose-derived-event.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/invalid-set-state-in-effect-verbose-derived-event.js
new file mode 100644
index 00000000000..4928dbe6078
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/invalid-set-state-in-effect-verbose-derived-event.js
@@ -0,0 +1,18 @@
+// @validateNoSetStateInEffects @enableVerboseNoSetStateInEffect
+import {useState, useEffect} from 'react';
+
+function VideoPlayer({isPlaying}) {
+  const [wasPlaying, setWasPlaying] = useState(isPlaying);
+  useEffect(() => {
+    if (isPlaying !== wasPlaying) {
+      setWasPlaying(isPlaying);
+      console.log('Play state changed!');
+    }
+  }, [isPlaying, wasPlaying]);
+  return <video />;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: VideoPlayer,
+  params: [{isPlaying: true}],
+};
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/invalid-set-state-in-effect-verbose-force-update.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/invalid-set-state-in-effect-verbose-force-update.expect.md
new file mode 100644
index 00000000000..131eb99127b
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/invalid-set-state-in-effect-verbose-force-update.expect.md
@@ -0,0 +1,97 @@
+
+## Input
+
+```javascript
+// @validateNoSetStateInEffects @enableVerboseNoSetStateInEffect
+import {useState, useEffect} from 'react';
+
+const externalStore = {
+  value: 0,
+  subscribe(callback) {
+    return () => {};
+  },
+  getValue() {
+    return this.value;
+  },
+};
+
+function ExternalDataComponent() {
+  const [, forceUpdate] = useState({});
+  useEffect(() => {
+    const unsubscribe = externalStore.subscribe(() => {
+      forceUpdate({});
+    });
+    return unsubscribe;
+  }, []);
+  return <div>{externalStore.getValue()}</div>;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: ExternalDataComponent,
+  params: [],
+};
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime"; // @validateNoSetStateInEffects @enableVerboseNoSetStateInEffect
+import { useState, useEffect } from "react";
+
+const externalStore = {
+  value: 0,
+  subscribe(callback) {
+    return () => {};
+  },
+  getValue() {
+    return this.value;
+  },
+};
+
+function ExternalDataComponent() {
+  const $ = _c(4);
+  let t0;
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
+    t0 = {};
+    $[0] = t0;
+  } else {
+    t0 = $[0];
+  }
+  const [, forceUpdate] = useState(t0);
+  let t1;
+  let t2;
+  if ($[1] === Symbol.for("react.memo_cache_sentinel")) {
+    t1 = () => {
+      const unsubscribe = externalStore.subscribe(() => {
+        forceUpdate({});
+      });
+      return unsubscribe;
+    };
+    t2 = [];
+    $[1] = t1;
+    $[2] = t2;
+  } else {
+    t1 = $[1];
+    t2 = $[2];
+  }
+  useEffect(t1, t2);
+  let t3;
+  if ($[3] === Symbol.for("react.memo_cache_sentinel")) {
+    t3 = <div>{externalStore.getValue()}</div>;
+    $[3] = t3;
+  } else {
+    t3 = $[3];
+  }
+  return t3;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: ExternalDataComponent,
+  params: [],
+};
+
+```
+      
+### Eval output
+(kind: ok) <div>0</div>
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/invalid-set-state-in-effect-verbose-force-update.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/invalid-set-state-in-effect-verbose-force-update.js
new file mode 100644
index 00000000000..e7653d1a1ec
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/invalid-set-state-in-effect-verbose-force-update.js
@@ -0,0 +1,28 @@
+// @validateNoSetStateInEffects @enableVerboseNoSetStateInEffect
+import {useState, useEffect} from 'react';
+
+const externalStore = {
+  value: 0,
+  subscribe(callback) {
+    return () => {};
+  },
+  getValue() {
+    return this.value;
+  },
+};
+
+function ExternalDataComponent() {
+  const [, forceUpdate] = useState({});
+  useEffect(() => {
+    const unsubscribe = externalStore.subscribe(() => {
+      forceUpdate({});
+    });
+    return unsubscribe;
+  }, []);
+  return <div>{externalStore.getValue()}</div>;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: ExternalDataComponent,
+  params: [],
+};
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/invalid-set-state-in-effect-verbose-non-local-derived.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/invalid-set-state-in-effect-verbose-non-local-derived.expect.md
new file mode 100644
index 00000000000..35cdeb212d5
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/invalid-set-state-in-effect-verbose-non-local-derived.expect.md
@@ -0,0 +1,68 @@
+
+## Input
+
+```javascript
+// @validateNoSetStateInEffects @enableVerboseNoSetStateInEffect
+import {useState, useEffect} from 'react';
+
+function Child({firstName, lastName}) {
+  const [fullName, setFullName] = useState('');
+  useEffect(() => {
+    setFullName(firstName + ' ' + lastName);
+  }, [firstName, lastName]);
+  return <div>{fullName}</div>;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Child,
+  params: [{firstName: 'John', lastName: 'Doe'}],
+};
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime"; // @validateNoSetStateInEffects @enableVerboseNoSetStateInEffect
+import { useState, useEffect } from "react";
+
+function Child(t0) {
+  const $ = _c(6);
+  const { firstName, lastName } = t0;
+  const [fullName, setFullName] = useState("");
+  let t1;
+  let t2;
+  if ($[0] !== firstName || $[1] !== lastName) {
+    t1 = () => {
+      setFullName(firstName + " " + lastName);
+    };
+    t2 = [firstName, lastName];
+    $[0] = firstName;
+    $[1] = lastName;
+    $[2] = t1;
+    $[3] = t2;
+  } else {
+    t1 = $[2];
+    t2 = $[3];
+  }
+  useEffect(t1, t2);
+  let t3;
+  if ($[4] !== fullName) {
+    t3 = <div>{fullName}</div>;
+    $[4] = fullName;
+    $[5] = t3;
+  } else {
+    t3 = $[5];
+  }
+  return t3;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Child,
+  params: [{ firstName: "John", lastName: "Doe" }],
+};
+
+```
+      
+### Eval output
+(kind: ok) <div>John Doe</div>
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/invalid-set-state-in-effect-verbose-non-local-derived.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/invalid-set-state-in-effect-verbose-non-local-derived.js
new file mode 100644
index 00000000000..eba6b5cdc0f
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/invalid-set-state-in-effect-verbose-non-local-derived.js
@@ -0,0 +1,15 @@
+// @validateNoSetStateInEffects @enableVerboseNoSetStateInEffect
+import {useState, useEffect} from 'react';
+
+function Child({firstName, lastName}) {
+  const [fullName, setFullName] = useState('');
+  useEffect(() => {
+    setFullName(firstName + ' ' + lastName);
+  }, [firstName, lastName]);
+  return <div>{fullName}</div>;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Child,
+  params: [{firstName: 'John', lastName: 'Doe'}],
+};