From 8bd4df74e19dabea09c23b418decc55c51f2194b Mon Sep 17 00:00:00 2001
From: KaifAhmad1 <kaifahmad087@gmail.com>
Date: Wed, 18 Feb 2026 12:50:08 +0530
Subject: [PATCH] Apply entity scoping in ContextGraph policy fallback

---
 semantica/context/policy_engine.py  |  6 ++--
 tests/context/test_policy_engine.py | 44 +++++++++++++++++++++++++++++
 2 files changed, 48 insertions(+), 2 deletions(-)

diff --git a/semantica/context/policy_engine.py b/semantica/context/policy_engine.py
index 9085a6d4..b4d064ee 100644
--- a/semantica/context/policy_engine.py
+++ b/semantica/context/policy_engine.py
@@ -301,7 +301,7 @@ class PolicyEngine:
 
             policies: List[Policy] = []
             for data in latest_by_policy_id.values():
-                policies.append(self._dict_to_policy({
+                policy = self._dict_to_policy({
                     "policy_id": data.get("policy_id"),
                     "name": data.get("name"),
                     "description": data.get("description"),
@@ -311,7 +311,9 @@ class PolicyEngine:
                     "created_at": data.get("created_at"),
                     "updated_at": data.get("updated_at"),
                     "metadata": data.get("metadata", {})
-                }))
+                })
+                if self._policy_matches_entities(policy, entities):
+                    policies.append(policy)
 
             self.logger.info(f"Found {len(policies)} applicable policies for category {category}")
             return policies
diff --git a/tests/context/test_policy_engine.py b/tests/context/test_policy_engine.py
index 89d0ce72..c7152aee 100644
--- a/tests/context/test_policy_engine.py
+++ b/tests/context/test_policy_engine.py
@@ -223,6 +223,50 @@ class TestPolicyEngine:
         policies = policy_engine.get_applicable_policies(category, None)
 
         assert policies == []
+
+    def test_get_applicable_policies_context_graph_fallback_respects_entities(self):
+        """Test entity scoping is applied in find_nodes() fallback path."""
+        category = "credit_approval"
+        entities = ["customer:target"]
+
+        class _ContextGraphLike:
+            def find_nodes(self, node_type=None):
+                if node_type != "Policy":
+                    return []
+                return [
+                    {
+                        "metadata": {
+                            "policy_id": "policy_match",
+                            "name": "Scoped policy",
+                            "description": "Applies to target customer",
+                            "rules": {},
+                            "category": "credit_approval",
+                            "version": "1.0",
+                            "created_at": datetime.now().isoformat(),
+                            "updated_at": datetime.now().isoformat(),
+                            "metadata": {"entities": ["customer:target"]},
+                        }
+                    },
+                    {
+                        "metadata": {
+                            "policy_id": "policy_other",
+                            "name": "Other scoped policy",
+                            "description": "Applies elsewhere",
+                            "rules": {},
+                            "category": "credit_approval",
+                            "version": "1.0",
+                            "created_at": datetime.now().isoformat(),
+                            "updated_at": datetime.now().isoformat(),
+                            "metadata": {"entities": ["customer:other"]},
+                        }
+                    },
+                ]
+
+        engine = PolicyEngine(graph_store=_ContextGraphLike())
+        policies = engine.get_applicable_policies(category, entities)
+
+        assert len(policies) == 1
+        assert policies[0].policy_id == "policy_match"
     
     def test_check_compliance_success(self, policy_engine, mock_graph_store):
         """Test successful compliance checking."""