diff --git a/semantica/context/decision_methods.py b/semantica/context/decision_methods.py
index 5a339238..b1349cd4 100644
--- a/semantica/context/decision_methods.py
+++ b/semantica/context/decision_methods.py
@@ -221,7 +221,7 @@ def capture_decision_trace(
     graph_store: Optional[GraphStore] = None,
     entities: Optional[List[str]] = None,
     source_documents: Optional[List[str]] = None,
-    policy_ids: Optional[List[str]] = None,
+    policy_ids: Optional[Union[str, Dict[str, str], List[Union[str, Dict[str, str]]]]] = None,
     exceptions: Optional[List[Dict[str, Any]]] = None,
     approvals: Optional[List[Dict[str, Any]]] = None,
     precedents: Optional[List[Dict[str, str]]] = None,
@@ -236,7 +236,9 @@ def capture_decision_trace(
         graph_store: Optional graph store used to persist full trace
         entities: Optional list of linked entities
         source_documents: Optional list of source documents
-        policy_ids: Optional list of policy IDs applied to the decision
+        policy_ids: Optional list of policy refs. Supports:
+            - "policy_id"
+            - {"policy_id": "...", "version": "..."}
         exceptions: Optional list of exception records
         approvals: Optional list of approval records
         precedents: Optional list of precedent links
@@ -259,7 +261,7 @@ def capture_decision_trace(
         recorder = DecisionRecorder(graph_store)
         entities = _normalize_string_list(entities)
         source_documents = _normalize_string_list(source_documents)
-        policy_ids = _normalize_string_list(policy_ids)
+        policy_refs = _normalize_policy_refs(policy_ids)
         exceptions = _normalize_record_list(exceptions)
         approvals = _normalize_record_list(approvals)
         precedents = _normalize_precedents(precedents)
@@ -294,10 +296,16 @@ def capture_decision_trace(
                 }
             )
 
-        if policy_ids:
-            recorder.apply_policies(decision_id, policy_ids)
+        if policy_refs:
+            applied_policies = recorder.apply_policies(decision_id, policy_refs)
             trace_events.append(
-                {"event_type": "POLICIES_APPLIED", "payload": {"policy_ids": policy_ids}}
+                {
+                    "event_type": "POLICIES_APPLIED",
+                    "payload": {
+                        "policy_ids": [p.get("policy_id") for p in policy_refs],
+                        "applied_policies": applied_policies,
+                    },
+                }
             )
 
         if exceptions:
@@ -481,6 +489,36 @@ def _normalize_record_list(
     return []
 
 
+def _normalize_policy_refs(
+    value: Optional[Union[str, Dict[str, str], List[Union[str, Dict[str, str]]]]]
+) -> List[Dict[str, str]]:
+    """Normalize policy refs to [{policy_id, version?}] for version-safe matching."""
+    if value is None:
+        return []
+
+    raw_items: List[Union[str, Dict[str, str]]]
+    if isinstance(value, (str, dict)):
+        raw_items = [value]
+    elif isinstance(value, list):
+        raw_items = value
+    else:
+        return []
+
+    normalized: List[Dict[str, str]] = []
+    for item in raw_items:
+        if isinstance(item, str) and item:
+            normalized.append({"policy_id": item})
+        elif isinstance(item, dict):
+            policy_id = item.get("policy_id")
+            if not policy_id:
+                continue
+            ref: Dict[str, str] = {"policy_id": str(policy_id)}
+            if item.get("version") is not None and str(item.get("version")):
+                ref["version"] = str(item.get("version"))
+            normalized.append(ref)
+    return normalized
+
+
 def _normalize_precedents(
     value: Optional[Union[str, Dict[str, str], List[Union[str, Dict[str, str]]]]]
 ) -> List[Dict[str, str]]:
diff --git a/semantica/context/decision_recorder.py b/semantica/context/decision_recorder.py
index 7d340c6c..872005aa 100644
--- a/semantica/context/decision_recorder.py
+++ b/semantica/context/decision_recorder.py
@@ -179,29 +179,82 @@ class DecisionRecorder:
             self.logger.exception("Failed to link entities")
             raise
     
-    def apply_policies(self, decision_id: str, policy_ids: List[str]) -> None:
+    def apply_policies(
+        self,
+        decision_id: str,
+        policy_ids: List[Union[str, Dict[str, str]]],
+    ) -> List[Dict[str, str]]:
         """
         Track policy applications for a decision.
         
         Args:
             decision_id: Decision ID
-            policy_ids: List of policy IDs that were applied
+            policy_ids: List of policy IDs or policy refs with explicit version
+
+        Returns:
+            Applied policy references with resolved versions
         """
         try:
-            for policy_id in policy_ids:
-                # Create APPLIED_POLICY relationship
+            applied: List[Dict[str, str]] = []
+
+            for policy_ref in policy_ids:
+                if isinstance(policy_ref, dict):
+                    policy_id = str(policy_ref.get("policy_id", ""))
+                    policy_version = (
+                        str(policy_ref.get("version"))
+                        if policy_ref.get("version") is not None
+                        else None
+                    )
+                else:
+                    policy_id = str(policy_ref)
+                    policy_version = None
+
+                if not policy_id:
+                    continue
+
+                # Resolve exactly one policy node:
+                # - explicit version when provided
+                # - latest available version for legacy callers
                 query = """
                 MATCH (d:Decision {decision_id: $decision_id})
                 MATCH (p:Policy {policy_id: $policy_id})
-                MERGE (d)-[:APPLIED_POLICY]->(p)
-                SET d.applied_at = timestamp()
+                WHERE $policy_version IS NULL OR p.version = $policy_version
+                WITH d, p
+                ORDER BY p.updated_at DESC, p.version DESC
+                LIMIT 1
+                MERGE (d)-[r:APPLIED_POLICY]->(p)
+                SET r.policy_id = $policy_id,
+                    r.policy_version = p.version,
+                    d.applied_at = timestamp()
+                RETURN p.policy_id as policy_id, p.version as version
                 """
-                self.graph_store.execute_query(query, {
+                result = self.graph_store.execute_query(query, {
                     "decision_id": decision_id,
-                    "policy_id": policy_id
+                    "policy_id": policy_id,
+                    "policy_version": policy_version,
                 })
+
+                records = (
+                    result.get("records", [])
+                    if isinstance(result, dict)
+                    else (result if isinstance(result, list) else [])
+                )
+                if records:
+                    record = records[0]
+                    applied.append(
+                        {
+                            "policy_id": str(record.get("policy_id", policy_id)),
+                            "version": str(record.get("version", policy_version or "")),
+                        }
+                    )
+                else:
+                    self.logger.warning(
+                        f"No policy match found for {policy_id}"
+                        + (f" version {policy_version}" if policy_version else "")
+                    )
             
-            self.logger.info(f"Applied {len(policy_ids)} policies to decision {decision_id}")
+            self.logger.info(f"Applied {len(applied)} policies to decision {decision_id}")
+            return applied
             
         except Exception as e:
             self.logger.exception("Failed to apply policies")
diff --git a/tests/context/test_decision_methods_trace.py b/tests/context/test_decision_methods_trace.py
index cf462c08..2c578a5c 100644
--- a/tests/context/test_decision_methods_trace.py
+++ b/tests/context/test_decision_methods_trace.py
@@ -78,3 +78,27 @@ def test_capture_decision_trace_accepts_legacy_payload_shapes():
 
     assert decision_id == decision.decision_id
     assert graph_store.execute_query.call_count > 0
+
+
+def test_capture_decision_trace_accepts_versioned_policy_refs():
+    decision = _sample_decision()
+    graph_store = Mock()
+    graph_store.execute_query = Mock(
+        return_value={"records": [{"policy_id": "renewal_discount_policy", "version": "3.2"}]}
+    )
+
+    decision_id = capture_decision_trace(
+        decision=decision,
+        cross_system_context={"crm": {"arr": 120000}},
+        graph_store=graph_store,
+        policy_ids=[{"policy_id": "renewal_discount_policy", "version": "3.2"}],
+        immutable_audit_log=False,
+    )
+
+    assert decision_id == decision.decision_id
+    policy_calls = [
+        c for c in graph_store.execute_query.call_args_list
+        if "policy_version" in c[0][1]
+    ]
+    assert policy_calls
+    assert policy_calls[0][0][1]["policy_version"] == "3.2"
diff --git a/tests/context/test_decision_recorder.py b/tests/context/test_decision_recorder.py
index a4328501..2a32422d 100644
--- a/tests/context/test_decision_recorder.py
+++ b/tests/context/test_decision_recorder.py
@@ -139,11 +139,29 @@ class TestDecisionRecorder:
         """Test applying policies to decision."""
         decision_id = "decision_001"
         policy_ids = ["policy_001", "policy_002"]
+        mock_graph_store.execute_query.return_value = {"records": [{"policy_id": "policy_001", "version": "2.0"}]}
         
-        decision_recorder.apply_policies(decision_id, policy_ids)
+        applied = decision_recorder.apply_policies(decision_id, policy_ids)
         
         # Verify graph store was called for each policy
         assert mock_graph_store.execute_query.call_count == len(policy_ids)
+        assert isinstance(applied, list)
+
+    def test_apply_policies_with_explicit_version(self, decision_recorder, mock_graph_store):
+        """Test applying a specific policy version to avoid ambiguous linking."""
+        decision_id = "decision_001"
+        policy_refs = [{"policy_id": "policy_001", "version": "3.2"}]
+        mock_graph_store.execute_query.return_value = {
+            "records": [{"policy_id": "policy_001", "version": "3.2"}]
+        }
+
+        applied = decision_recorder.apply_policies(decision_id, policy_refs)
+
+        assert len(applied) == 1
+        assert applied[0]["policy_id"] == "policy_001"
+        assert applied[0]["version"] == "3.2"
+        call = mock_graph_store.execute_query.call_args_list[0]
+        assert call[0][1]["policy_version"] == "3.2"
     
     def test_record_exception(self, decision_recorder, mock_graph_store):
         """Test recording policy exception."""