diff --git a/docs/INTERNALS.md b/docs/INTERNALS.md
index b7aa312..09fef9e 100644
--- a/docs/INTERNALS.md
+++ b/docs/INTERNALS.md
@@ -227,11 +227,13 @@ Three classes for async result handling:
 - `await` — first call resolves via the internal context's `resolve_handle(handle)`, subsequent calls return cached value
 - `completed?` — non-blocking check via the internal context's `completed?(handle)`
 - `handle` — the raw VM notification handle (Integer)
+- `or_timeout(duration)` — races `self` against `Restate.sleep(duration)` via `Restate.wait_any`. Returns the future's value if it completes first; raises `Restate::TimeoutError` if the sleep wins. The sleep handle is **not** cancelled when this future wins — `restate-sdk-shared-core` 0.7 exposes no `sys_cancel_handle` primitive (only `sys_cancel_invocation` on a different invocation), so the journal entry remains until the timer fires. Same footprint as TS `RestatePromise.orTimeout` and Java `DurableFuture.withTimeout`.
 
 **`DurableCallFuture` < `DurableFuture`** — returned by `Restate.service_call`, `Restate.object_call`, `Restate.workflow_call`.
 - Two handles: `result_handle` (for await) and `invocation_id_handle` (for ID)
 - `invocation_id` — lazily resolved on first access
 - `cancel` — calls `Restate.cancel_invocation(invocation_id)`
+- Inherits `or_timeout` from the parent — does **not** auto-cancel the remote invocation on timeout (matches TS/Java SDKs). Callers rescue `Restate::TimeoutError` and invoke `#cancel` themselves if they want the callee stopped.
 
 **`SendHandle`** — returned by `Restate.service_send`, `Restate.object_send`, `Restate.workflow_send`.
 - `invocation_id` — lazily resolved
diff --git a/docs/USER_GUIDE.md b/docs/USER_GUIDE.md
index 9601903..b9b54c3 100644
--- a/docs/USER_GUIDE.md
+++ b/docs/USER_GUIDE.md
@@ -270,6 +270,46 @@ Restate.sleep(5.0).await                # Sleep for 5 seconds (durable timer)
 
 The timer survives crashes — if the handler restarts, it resumes waiting for the remaining time.
 
+### Timeouts
+
+Race any `DurableFuture` against a deadline via `#or_timeout(seconds)`.
+Returns the future's value if it wins; raises `Restate::TimeoutError`
+(a `TerminalError` subclass, HTTP 408) if the sleep wins.
+
+```ruby
+# Bound a service call to 5 seconds.
+result = Worker.call.process(task).or_timeout(5)
+
+# Works on any DurableFuture — sleeps, run-blocks, etc.
+Restate.run('expensive') { compute }.or_timeout(10)
+```
+
+Timeout does **not** cancel the underlying work — matches the TS and
+Java SDKs. To stop the remote invocation on a service call, rescue
+the error and call `#cancel`:
+
+```ruby
+future = Worker.call.process(task)
+begin
+  future.or_timeout(5)
+rescue Restate::TimeoutError
+  future.cancel
+  raise
+end
+```
+
+**Caveat — orphan sleep**: the underlying shared-core VM has no
+primitive to cancel an in-flight sleep handle (only
+`sys_cancel_invocation` for a separate invocation), so when the
+future wins the race the sleep stays in the journal until the
+duration elapses. The wake-up is a no-op against a completed
+handler but keeps the invocation row alive in Restate's state for
+the deadline window. For long deadlines on workflows whose
+retention you care about, route the timer through a separate
+cancellable invocation (delayed `Restate.service_send` to a small
+trigger service that resolves an awakeable) and cancel the
+`SendHandle` on success.
+
 ### Service Communication
 
 #### Fluent Call API (Recommended)
@@ -912,6 +952,25 @@ rescue Restate::TerminalError => e
 end
 ```
 
+#### TimeoutError
+
+`Restate::TimeoutError` is a `TerminalError` subclass raised by
+`DurableFuture#or_timeout` when the deadline elapses before the
+future completes (HTTP status 408). Because it inherits from
+`TerminalError`, the same `rescue` block catches it uniformly:
+
+```ruby
+begin
+  Worker.call.process(task).or_timeout(5)
+rescue Restate::TimeoutError => e
+  # specific timeout handling
+rescue Restate::TerminalError => e
+  # any other terminal failure
+end
+```
+
+See the [Timeouts](#timeouts) section above for the full API.
+
 ### Transient Errors
 
 Any `StandardError` (other than `TerminalError`) triggers a retry of the entire invocation.
@@ -1137,7 +1196,7 @@ The `examples/` directory contains runnable examples:
 | `durable_execution.rb` | `Restate.run`, `Restate.run_sync`, `background: true`, `RunRetryPolicy`, `TerminalError` |
 | `virtual_objects.rb` | Declarative state, `handler` vs `shared`, `state_keys`, `clear_all` |
 | `workflow.rb` | Declarative state, promises, signals |
-| `service_communication.rb` | Fluent call API, fan-out/fan-in, `wait_any`, awakeables |
+| `service_communication.rb` | Fluent call API, fan-out/fan-in, `wait_any`, `or_timeout`, awakeables |
 | `typed_handlers.rb` | `input:`/`output:` with `Dry::Struct`, JSON Schema generation |
 | `service_configuration.rb` | Service-level config: timeouts, retention, retry policy, lazy state |
 | `deadlock_detection.rb` | Built-in deadlock detection middleware for VirtualObjects |
diff --git a/examples/service_communication.rb b/examples/service_communication.rb
index d65c3a3..6af8cb1 100644
--- a/examples/service_communication.rb
+++ b/examples/service_communication.rb
@@ -13,6 +13,7 @@
 #   - Restate.service_call / Restate.service_send — explicit RPC (same thing, verbose)
 #   - Fan-out/fan-in             — launch concurrent calls, collect results
 #   - Restate.wait_any           — race multiple futures, handle first completer
+#   - future.or_timeout(seconds) — bound a single future with a deadline
 #   - Restate.awakeable          — pause until an external system calls back
 #
 # Try it:
@@ -59,6 +60,18 @@ class FanOut < Restate::Service
     completed.first.await
   end
 
+  # Bound a single call with a deadline. +or_timeout+ races the call
+  # against a +Restate.sleep+ and raises +Restate::TimeoutError+ if the
+  # sleep wins. The remote invocation keeps running unless you cancel
+  # it explicitly — see the rescue below.
+  handler def with_deadline(task)
+    future = Worker.call.process(task)
+    future.or_timeout(5)
+  rescue Restate::TimeoutError => e
+    future.cancel
+    { 'task' => task, 'error' => e.message, 'status_code' => e.status_code }
+  end
+
   # Awakeable: pause until an external system resolves the callback.
   handler def with_callback(task)
     awakeable_id, future = Restate.awakeable
diff --git a/lib/restate/durable_future.rb b/lib/restate/durable_future.rb
index 422235f..85887c3 100644
--- a/lib/restate/durable_future.rb
+++ b/lib/restate/durable_future.rb
@@ -33,6 +33,19 @@ def await
     def completed?
       @resolved || @ctx.completed?(@handle)
     end
+
+    # Race +self+ against +Restate.sleep(duration)+. Returns the value
+    # if the future wins; raises {Restate::TimeoutError} otherwise.
+    # Does not cancel the underlying work (matches TS/Java SDKs); on
+    # a {DurableCallFuture}, call +#cancel+ in the rescue if you want
+    # the remote invocation stopped.
+    def or_timeout(duration)
+      sleep_future = Restate.sleep(duration)
+      Restate.wait_any(self, sleep_future)
+      return await if completed?
+
+      raise TimeoutError
+    end
   end
 
   # A durable future for service/object/workflow calls.
diff --git a/lib/restate/errors.rb b/lib/restate/errors.rb
index 6853124..60ded74 100644
--- a/lib/restate/errors.rb
+++ b/lib/restate/errors.rb
@@ -17,6 +17,18 @@ def initialize(message = 'Internal Server Error', status_code: 500, metadata: ni
     end
   end
 
+  # Raised by {DurableFuture#or_timeout} when the timeout elapses
+  # before the future completes. Mirrors +TimeoutError+ in the
+  # TypeScript SDK (408 Request Timeout) and +TimeoutException+ in
+  # the Java SDK. Inherits from {TerminalError} so the same
+  # +rescue Restate::TerminalError+ block in user handlers catches
+  # timeouts alongside other terminal failures.
+  class TimeoutError < TerminalError
+    def initialize(message = 'Timeout occurred', metadata: nil)
+      super(message, status_code: 408, metadata: metadata)
+    end
+  end
+
   # Internal: raised when the VM suspends execution.
   # User code should NOT catch this.
   class SuspendedError < StandardError
diff --git a/sig/restate.rbs b/sig/restate.rbs
index 66c2c89..4ed8d4c 100644
--- a/sig/restate.rbs
+++ b/sig/restate.rbs
@@ -73,6 +73,10 @@ module Restate
     def initialize: (?String message, ?status_code: Integer, ?metadata: Hash[String, String]?) -> void
   end
 
+  class TimeoutError < TerminalError
+    def initialize: (?String message, ?metadata: Hash[String, String]?) -> void
+  end
+
   class SuspendedError < StandardError
     def initialize: () -> void
   end
@@ -92,6 +96,7 @@ module Restate
     def initialize: (untyped ctx, Integer handle, ?serde: untyped) -> void
     def await: () -> untyped
     def completed?: () -> bool
+    def or_timeout: (Numeric duration) -> untyped
   end
 
   class DurableCallFuture < DurableFuture
diff --git a/spec/or_timeout_spec.rb b/spec/or_timeout_spec.rb
new file mode 100644
index 0000000..710c0c4
--- /dev/null
+++ b/spec/or_timeout_spec.rb
@@ -0,0 +1,125 @@
+# frozen_string_literal: true
+
+require 'spec_helper'
+require 'restate'
+
+# Unit coverage for +DurableFuture#or_timeout+ and
+# +DurableCallFuture#or_timeout+. Stubs the +Restate+ module-level
+# helpers (+sleep+, +wait_any+) so the spec doesn't need a live VM —
+# this is intentionally an SDK-shape check, not an end-to-end
+# integration. The +test-services/+ suite covers the live-VM path.
+RSpec.describe Restate::DurableFuture do
+  # Minimal fake context that just records calls. Real Server::Context
+  # is too heavy for this spec — we only need +resolve_handle+ and
+  # +completed?+ to respond.
+  let(:ctx) { double('ctx', resolve_handle: 'ignored', completed?: false) }
+
+  describe '#or_timeout' do
+    context 'when the future completes before the sleep' do
+      it "returns the future's value" do
+        future = described_class.new(ctx, :handle_a)
+        sleep_future = described_class.new(ctx, :handle_sleep)
+
+        allow(Restate).to receive(:sleep).with(5).and_return(sleep_future)
+        allow(Restate).to receive(:wait_any) do
+          # Race outcome: the work future wins.
+          allow(future).to receive(:completed?).and_return(true)
+          allow(future).to receive(:await).and_return('done')
+          nil
+        end
+
+        expect(future.or_timeout(5)).to eq('done')
+      end
+    end
+
+    context 'when the sleep wins the race' do
+      it 'raises Restate::TimeoutError' do
+        future = described_class.new(ctx, :handle_a)
+        sleep_future = described_class.new(ctx, :handle_sleep)
+
+        allow(Restate).to receive(:sleep).with(5).and_return(sleep_future)
+        allow(Restate).to receive(:wait_any) do
+          # Race outcome: the sleep wins; the work future stays incomplete.
+          allow(future).to receive(:completed?).and_return(false)
+          nil
+        end
+
+        expect { future.or_timeout(5) }.to raise_error(Restate::TimeoutError)
+      end
+
+      it 'attaches HTTP status 408 (Request Timeout)' do
+        future = described_class.new(ctx, :handle_a)
+        allow(Restate).to receive(:sleep).and_return(described_class.new(ctx, :sleep))
+        allow(Restate).to receive(:wait_any) do
+          allow(future).to receive(:completed?).and_return(false)
+          nil
+        end
+
+        future.or_timeout(5)
+      rescue Restate::TimeoutError => e
+        expect(e.status_code).to eq(408)
+      end
+    end
+  end
+end
+
+RSpec.describe Restate::DurableCallFuture do
+  let(:ctx) do
+    double('ctx', resolve_handle: 'inv_xyz', completed?: false, cancel_invocation: nil)
+  end
+
+  def build_call_future
+    described_class.new(ctx, :result_handle, :invocation_id_handle, output_serde: nil)
+  end
+
+  # Matches TS/Java SDKs: timeout never auto-cancels the underlying call.
+  # Users who want that behavior rescue +TimeoutError+ and call +#cancel+.
+  describe '#or_timeout' do
+    context 'when the call completes before the sleep' do
+      it "returns the call's value and does not cancel" do
+        future = build_call_future
+        sleep_future = Restate::DurableFuture.new(ctx, :handle_sleep)
+
+        allow(Restate).to receive(:sleep).with(5).and_return(sleep_future)
+        allow(Restate).to receive(:wait_any) do
+          allow(future).to receive(:completed?).and_return(true)
+          allow(future).to receive(:await).and_return({ 'ok' => true })
+          nil
+        end
+
+        expect(future.or_timeout(5)).to eq({ 'ok' => true })
+        expect(ctx).not_to have_received(:cancel_invocation)
+      end
+    end
+
+    context 'when the sleep wins the race' do
+      it 'raises TimeoutError without cancelling the remote invocation' do
+        future = build_call_future
+        sleep_future = Restate::DurableFuture.new(ctx, :handle_sleep)
+
+        allow(Restate).to receive(:sleep).with(5).and_return(sleep_future)
+        allow(Restate).to receive(:wait_any) do
+          allow(future).to receive(:completed?).and_return(false)
+          nil
+        end
+
+        expect { future.or_timeout(5) }.to raise_error(Restate::TimeoutError)
+        expect(ctx).not_to have_received(:cancel_invocation)
+      end
+    end
+  end
+end
+
+RSpec.describe Restate::TimeoutError do
+  it 'inherits from TerminalError so user rescue blocks catch it uniformly' do
+    expect(described_class.ancestors).to include(Restate::TerminalError)
+  end
+
+  it 'defaults to HTTP status 408 (Request Timeout) matching the TS SDK' do
+    expect(described_class.new.status_code).to eq(408)
+  end
+
+  it 'has a meaningful default message' do
+    expect(described_class.new.message).to eq('Timeout occurred')
+  end
+end