diff --git a/.gitignore b/.gitignore
index f0178bd96a..aac5c06f93 100644
--- a/.gitignore
+++ b/.gitignore
@@ -61,5 +61,8 @@ yalc.lock
 # Generated by ROR FS-based Registry
 generated
 
+# Server-side rendering generated bundles
+ssr-generated
+
 # Claude Code local settings
 .claude/settings.local.json
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 24c0790740..3ff1de26dd 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -23,6 +23,45 @@ After a release, please make sure to run `bundle exec rake update_changelog`. Th
 
 Changes since the last non-beta release.
 
+#### Breaking Changes
+
+- **Removed `generated_assets_dirs` configuration**: The legacy `config.generated_assets_dirs` option is no longer supported and will raise an error if used. Since Shakapacker is now required, asset paths are automatically determined from `shakapacker.yml` configuration. Remove any `config.generated_assets_dirs` from your `config/initializers/react_on_rails.rb` file. Use `public_output_path` in `config/shakapacker.yml` to customize asset output location instead. [PR 1798](https://github.com/shakacode/react_on_rails/pull/1798)
+
+#### New Features
+
+- **Server Bundle Security**: Added new configuration options for enhanced server bundle security and organization:
+
+  - `server_bundle_output_path`: Configurable directory (relative to the Rails root) for server bundle output (default: "ssr-generated"). If set to `nil`, the server bundle will be loaded from the same public directory as client bundles.
+  - `enforce_private_server_bundles`: When enabled, ensures server bundles are only loaded from private directories outside the public folder (default: false for backward compatibility)
+
+- **Improved Bundle Path Resolution**: Bundle path resolution for server bundles now works as follows:
+  - If `server_bundle_output_path` is set, the server bundle is loaded from that directory.
+  - If `server_bundle_output_path` is not set, the server bundle falls back to the client bundle directory (typically the public output path).
+  - If `enforce_private_server_bundles` is enabled:
+    - The server bundle will only be loaded from the private directory specified by `server_bundle_output_path`.
+    - If the bundle is not found there, it will _not_ fall back to the public directory.
+  - If `enforce_private_server_bundles` is not enabled and the bundle is not found in the private directory, it will fall back to the public directory.
+  - This logic ensures that, when strict enforcement is enabled, server bundles are never loaded from public directories, improving security and clarity of bundle resolution.
+
+#### API Improvements
+
+- **Method Naming Clarification**: Added `public_bundles_full_path` method to clarify bundle path handling:
+  - `public_bundles_full_path`: New method specifically for webpack bundles in public directories
+  - `generated_assets_full_path`: Now deprecated (backwards-compatible alias)
+  - This eliminates confusion between webpack bundles and general Rails public assets
+
+#### Security Enhancements
+
+- **Private Server Bundle Enforcement**: When `enforce_private_server_bundles` is enabled, server bundles bypass public directory fallbacks and are only loaded from designated private locations
+- **Path Validation**: Added validation to ensure `server_bundle_output_path` points to private directories when enforcement is enabled
+
+#### Bug Fixes
+
+- **Non-Packer Environment Compatibility**: Fixed potential NoMethodError when using bundle path resolution in environments without Shakapacker
+- **Shakapacker version requirements**: Fixed inconsistent version requirements between basic pack generation (6.5.1+) and advanced auto-bundling features (7.0.0+). Added backward compatibility for users on Shakapacker 6.5.1-6.9.x while providing clear upgrade guidance for advanced features. Added new constants `MINIMUM_SHAKAPACKER_VERSION_FOR_AUTO_BUNDLING` and improved version checking performance with caching. [PR 1798](https://github.com/shakacode/react_on_rails/pull/1798)
+
+### [16.0.1-rc.2] - 2025-09-20
+
 #### Bug Fixes
 
 - **Packs generator**: Fixed error when `server_bundle_js_file` configuration is empty (default). Added safety check to prevent attempting operations on invalid file paths when server-side rendering is not configured. [PR 1802](https://github.com/shakacode/react_on_rails/pull/1802)
diff --git a/docs/guides/configuration.md b/docs/guides/configuration.md
index 82f6731351..1d7a7e4b91 100644
--- a/docs/guides/configuration.md
+++ b/docs/guides/configuration.md
@@ -129,6 +129,51 @@ ReactOnRails.configure do |config|
   # This manifest file is automatically generated by the React Server Components Webpack plugin. Only set this if you've configured the plugin to use a different filename.
   config.react_server_client_manifest_file = "react-server-client-manifest.json"
 
+  ################################################################################
+  # SERVER BUNDLE SECURITY AND ORGANIZATION
+  ################################################################################
+
+  # This configures the directory (relative to the Rails root) where the server bundle will be output.
+  # By default, this is "ssr-generated". If set to nil, the server bundle will be loaded from the same
+  # public directory as client bundles. For enhanced security, use this option in conjunction with
+  # `enforce_private_server_bundles` to ensure server bundles are only loaded from private directories
+  # config.server_bundle_output_path = "ssr-generated"
+
+  # When set to true, React on Rails will only load server bundles from private, explicitly configured directories (such as `ssr-generated`), and will raise an error if a server bundle is found in a public or untrusted location. This helps prevent accidental or malicious execution of untrusted JavaScript on the server, and is strongly recommended for production environments. And prevent leakage of server-side code to the client (Especially in the case of RSC).
+  # Default is false for backward compatibility, but enabling this option is a best practice for security.
+  config.enforce_private_server_bundles = false
+
+  ################################################################################
+  # BUNDLE ORGANIZATION EXAMPLES
+  ################################################################################
+  #
+  # This configuration creates a clear separation between client and server assets:
+  #
+  # CLIENT BUNDLES (Public, Web-Accessible):
+  #   Location: public/webpack/[environment]/ or public/packs/ (According to your shakapacker.yml configuration)
+  #   Files: application.js, manifest.json, CSS files
+  #   Served by: Web server directly
+  #   Access: ReactOnRails::Utils.public_bundles_full_path
+  #
+  # SERVER BUNDLES (Private, Server-Only):
+  #   Location: ssr-generated/ (when server_bundle_output_path configured)
+  #   Files: server-bundle.js, rsc-bundle.js
+  #   Served by: Never served to browsers
+  #   Access: ReactOnRails::Utils.server_bundle_js_file_path
+  #
+  # Example directory structure with recommended configuration:
+  #   app/
+  #   ├── ssr-generated/           # Private server bundles
+  #   │   ├── server-bundle.js
+  #   │   └── rsc-bundle.js
+  #   └── public/
+  #       └── webpack/development/ # Public client bundles
+  #           ├── application.js
+  #           ├── manifest.json
+  #           └── styles.css
+  #
+  ################################################################################
+
   # `prerender` means server-side rendering
   # default is false. This is an option for view helpers `render_component` and `render_component_hash`.
   # Set to true to change the default value to true.
diff --git a/lib/generators/react_on_rails/base_generator.rb b/lib/generators/react_on_rails/base_generator.rb
index 2b3a197c67..06f5c208fd 100644
--- a/lib/generators/react_on_rails/base_generator.rb
+++ b/lib/generators/react_on_rails/base_generator.rb
@@ -24,7 +24,7 @@ def add_hello_world_route
       end
 
       def create_react_directories
-        # Create auto-registration directory structure for non-Redux components only
+        # Create auto-bundling directory structure for non-Redux components only
         # Redux components handle their own directory structure
         return if options.redux?
 
@@ -136,14 +136,17 @@ def update_gitignore_for_auto_registration
         return unless File.exist?(gitignore_path)
 
         gitignore_content = File.read(gitignore_path)
-        return if gitignore_content.include?("**/generated/**")
 
-        append_to_file ".gitignore" do
-          <<~GITIGNORE
+        additions = []
+        additions << "**/generated/**" unless gitignore_content.include?("**/generated/**")
+        additions << "ssr-generated" unless gitignore_content.include?("ssr-generated")
+
+        return if additions.empty?
 
-            # Generated React on Rails packs
-            **/generated/**
-          GITIGNORE
+        append_to_file ".gitignore" do
+          lines = ["\n# Generated React on Rails packs"]
+          lines.concat(additions)
+          "#{lines.join("\n")}\n"
         end
       end
 
diff --git a/lib/generators/react_on_rails/react_with_redux_generator.rb b/lib/generators/react_on_rails/react_with_redux_generator.rb
index 19076b4718..643b306cfa 100644
--- a/lib/generators/react_on_rails/react_with_redux_generator.rb
+++ b/lib/generators/react_on_rails/react_with_redux_generator.rb
@@ -19,7 +19,7 @@ class ReactWithReduxGenerator < Rails::Generators::Base
                    aliases: "-T"
 
       def create_redux_directories
-        # Create auto-registration directory structure for Redux
+        # Create auto-bundling directory structure for Redux
         empty_directory("app/javascript/src/HelloWorldApp/ror_components")
 
         # Create Redux support directories within the component directory
@@ -31,7 +31,7 @@ def copy_base_files
         base_js_path = "redux/base"
         ext = component_extension(options)
 
-        # Copy Redux-connected component to auto-registration structure
+        # Copy Redux-connected component to auto-bundling structure
         copy_file("#{base_js_path}/app/javascript/bundles/HelloWorld/startup/HelloWorldApp.client.#{ext}",
                   "app/javascript/src/HelloWorldApp/ror_components/HelloWorldApp.client.#{ext}")
         copy_file("#{base_js_path}/app/javascript/bundles/HelloWorld/startup/HelloWorldApp.server.#{ext}",
diff --git a/lib/generators/react_on_rails/templates/base/base/config/initializers/react_on_rails.rb.tt b/lib/generators/react_on_rails/templates/base/base/config/initializers/react_on_rails.rb.tt
index 223169639a..4b2f750f39 100644
--- a/lib/generators/react_on_rails/templates/base/base/config/initializers/react_on_rails.rb.tt
+++ b/lib/generators/react_on_rails/templates/base/base/config/initializers/react_on_rails.rb.tt
@@ -43,6 +43,20 @@ ReactOnRails.configure do |config|
   #
   config.server_bundle_js_file = "server-bundle.js"
 
+  # The location of the server bundle file defaults to the location of your client bundle file.
+  # However, you can change this location in your config/shakapacker.yml file, using Shakapacker v8.5.0 or greater
+  # If you are not using Shakapacker v8.5.0 or greater, then you can set the value here. v17 will probably remove configuration
+  # of the server_bundle_output_path.
+
+  # Configure where server bundles are output. Defaults to "ssr-generated".
+  # This should match your webpack configuration for server bundles.
+  config.server_bundle_output_path = "ssr-generated"
+
+  # Enforce that server bundles are only loaded from private (non-public) directories.
+  # When true, server bundles will only be loaded from the configured server_bundle_output_path.
+  # This is recommended for production to prevent server-side code from being exposed.
+  config.enforce_private_server_bundles = true
+
   ################################################################################
   ################################################################################
   # FILE SYSTEM BASED COMPONENT REGISTRY
diff --git a/lib/generators/react_on_rails/templates/base/base/config/webpack/serverWebpackConfig.js.tt b/lib/generators/react_on_rails/templates/base/base/config/webpack/serverWebpackConfig.js.tt
index a1f40f065d..deb724704d 100644
--- a/lib/generators/react_on_rails/templates/base/base/config/webpack/serverWebpackConfig.js.tt
+++ b/lib/generators/react_on_rails/templates/base/base/config/webpack/serverWebpackConfig.js.tt
@@ -44,13 +44,14 @@ const configureServer = () => {
 
   // Custom output for the server-bundle that matches the config in
   // config/initializers/react_on_rails.rb
+  // Server bundles are output to a private directory (not public) for security
   serverWebpackConfig.output = {
     filename: 'server-bundle.js',
     globalObject: 'this',
     // If using the React on Rails Pro node server renderer, uncomment the next line
     // libraryTarget: 'commonjs2',
-    path: config.outputPath,
-    publicPath: config.publicPath,
+    path: require('path').resolve(__dirname, '../../ssr-generated'),
+    // No publicPath needed since server bundles are not served via web
     // https://webpack.js.org/configuration/output/#outputglobalobject
   };
 
diff --git a/lib/react_on_rails/configuration.rb b/lib/react_on_rails/configuration.rb
index d3047a59ed..5cece82754 100644
--- a/lib/react_on_rails/configuration.rb
+++ b/lib/react_on_rails/configuration.rb
@@ -52,7 +52,9 @@ def self.configuration
       # If exceeded, an error will be thrown for server-side rendered components not registered on the client.
       # Set to 0 to disable the timeout and wait indefinitely for component registration.
       component_registry_timeout: DEFAULT_COMPONENT_REGISTRY_TIMEOUT,
-      generated_component_packs_loading_strategy: nil
+      generated_component_packs_loading_strategy: nil,
+      server_bundle_output_path: "ssr-generated",
+      enforce_private_server_bundles: false
     )
   end
 
@@ -68,7 +70,8 @@ class Configuration
                   :same_bundle_for_client_and_server, :rendering_props_extension,
                   :make_generated_server_bundle_the_entrypoint,
                   :generated_component_packs_loading_strategy, :immediate_hydration, :rsc_bundle_js_file,
-                  :react_client_manifest_file, :react_server_client_manifest_file, :component_registry_timeout
+                  :react_client_manifest_file, :react_server_client_manifest_file, :component_registry_timeout,
+                  :server_bundle_output_path, :enforce_private_server_bundles
 
     # rubocop:disable Metrics/AbcSize
     def initialize(node_modules_location: nil, server_bundle_js_file: nil, prerender: nil,
@@ -85,7 +88,7 @@ def initialize(node_modules_location: nil, server_bundle_js_file: nil, prerender
                    random_dom_id: nil, server_render_method: nil, rendering_props_extension: nil,
                    components_subdirectory: nil, auto_load_bundle: nil, immediate_hydration: nil,
                    rsc_bundle_js_file: nil, react_client_manifest_file: nil, react_server_client_manifest_file: nil,
-                   component_registry_timeout: nil)
+                   component_registry_timeout: nil, server_bundle_output_path: nil, enforce_private_server_bundles: nil)
       self.node_modules_location = node_modules_location.present? ? node_modules_location : Rails.root
       self.generated_assets_dirs = generated_assets_dirs
       self.generated_assets_dir = generated_assets_dir
@@ -130,6 +133,8 @@ def initialize(node_modules_location: nil, server_bundle_js_file: nil, prerender
       self.defer_generated_component_packs = defer_generated_component_packs
       self.immediate_hydration = immediate_hydration
       self.generated_component_packs_loading_strategy = generated_component_packs_loading_strategy
+      self.server_bundle_output_path = server_bundle_output_path
+      self.enforce_private_server_bundles = enforce_private_server_bundles
     end
     # rubocop:enable Metrics/AbcSize
 
@@ -139,13 +144,13 @@ def setup_config_values
       ensure_webpack_generated_files_exists
       configure_generated_assets_dirs_deprecation
       configure_skip_display_none_deprecation
-      ensure_generated_assets_dir_present
       check_server_render_method_is_only_execjs
       error_if_using_packer_and_generated_assets_dir_not_match_public_output_path
       # check_deprecated_settings
       adjust_precompile_task
       check_component_registry_timeout
       validate_generated_component_packs_loading_strategy
+      validate_enforce_private_server_bundles
     end
 
     private
@@ -194,23 +199,41 @@ def validate_generated_component_packs_loading_strategy
       raise ReactOnRails::Error, "generated_component_packs_loading_strategy must be either :async, :defer, or :sync"
     end
 
-    def check_autobundling_requirements
-      raise_missing_components_subdirectory if auto_load_bundle && !components_subdirectory.present?
-      return unless components_subdirectory.present?
+    def validate_enforce_private_server_bundles
+      return unless enforce_private_server_bundles
+
+      # Check if server_bundle_output_path is nil
+      if server_bundle_output_path.nil?
+        raise ReactOnRails::Error, "enforce_private_server_bundles is set to true, but " \
+                                   "server_bundle_output_path is nil. Please set server_bundle_output_path " \
+                                   "to a directory outside of the public directory."
+      end
+
+      # Check if server_bundle_output_path is inside public directory
+      # Skip validation if Rails.root is not available (e.g., in tests)
+      return unless defined?(Rails) && Rails.root
+
+      public_path = Rails.root.join("public").to_s
+      server_output_path = File.expand_path(server_bundle_output_path, Rails.root.to_s)
+
+      return unless server_output_path.start_with?(public_path)
 
-      # Check basic pack generation support for auto_load_bundle
+      raise ReactOnRails::Error, "enforce_private_server_bundles is set to true, but " \
+                                 "server_bundle_output_path (#{server_bundle_output_path}) is inside " \
+                                 "the public directory. Please set it to a directory outside of public."
+    end
+
+    def check_minimum_shakapacker_version
       ReactOnRails::PackerUtils.raise_shakapacker_version_incompatible_for_basic_pack_generation unless
         ReactOnRails::PackerUtils.supports_basic_pack_generation?
+    end
 
-      # Additional checks for advanced features requiring nested entries
-      if ReactOnRails::PackerUtils.supports_autobundling?
-        ReactOnRails::PackerUtils.raise_nested_entries_disabled unless ReactOnRails::PackerUtils.nested_entries?
-      else
-        # Warn users about missing advanced features but don't block basic functionality
-        min_version = ReactOnRails::PacksGenerator::MINIMUM_SHAKAPACKER_VERSION_FOR_AUTO_REGISTRATION
-        Rails.logger.warn("React on Rails: Basic pack generation enabled. " \
-                          "Upgrade to Shakapacker #{min_version}+ for advanced auto-registration features.")
-      end
+    def check_autobundling_requirements
+      raise_missing_components_subdirectory unless components_subdirectory.present?
+
+      ReactOnRails::PackerUtils.raise_shakapacker_version_incompatible_for_autobundling unless
+        ReactOnRails::PackerUtils.supports_autobundling?
+      ReactOnRails::PackerUtils.raise_nested_entries_disabled unless ReactOnRails::PackerUtils.nested_entries?
     end
 
     def adjust_precompile_task
@@ -250,15 +273,15 @@ def error_if_using_packer_and_generated_assets_dir_not_match_public_output_path
 
       if File.expand_path(generated_assets_dir) == packer_public_output_path.to_s
         Rails.logger.warn("You specified generated_assets_dir in `config/initializers/react_on_rails.rb` " \
-                          "with shakapacker. " \
+                          "with Shakapacker. " \
                           "Remove this line from your configuration file.")
       else
         msg = <<~MSG
-          Configuration mismatch in config/initializers/react_on_rails.rb:
-
-          Your generated_assets_dir setting (#{generated_assets_dir}) does not match the value for public_output_path (#{packer_public_output_path}).
-
-          Remove the generated_assets_dir configuration and let Shakapacker manage the output path.
+          Error configuring /config/initializers/react_on_rails.rb: You are using Shakapacker
+          and your specified value for generated_assets_dir = #{generated_assets_dir}
+          that does not match the value for public_output_path specified in
+          shakapacker.yml = #{packer_public_output_path}. You should remove the configuration
+          value for "generated_assets_dir" from your config/initializers/react_on_rails.rb file.
         MSG
         raise ReactOnRails::Error, msg
       end
@@ -276,23 +299,20 @@ def check_server_render_method_is_only_execjs
       raise ReactOnRails::Error, msg
     end
 
-    def ensure_generated_assets_dir_present
-      return if generated_assets_dir.present?
-
-      # When using Shakapacker, don't set a default generated_assets_dir since
-      # Shakapacker manages its own public_output_path configuration
-      # This prevents configuration mismatches between ReactOnRails and Shakapacker
-      Rails.logger.warn "ReactOnRails: No generated_assets_dir specified, using Shakapacker public_output_path"
-    end
-
     def configure_generated_assets_dirs_deprecation
       return if generated_assets_dirs.blank?
 
       packer_public_output_path = ReactOnRails::PackerUtils.packer_public_output_path
-      Rails.logger.warn "You specified generated_assets_dirs in `config/initializers/react_on_rails.rb` " \
-                        "with Shakapacker. Remove this configuration as the output path is automatically " \
-                        "determined by `public_output_path` in shakapacker.yml " \
-                        "(currently: #{packer_public_output_path})."
+
+      msg = <<~MSG
+        ReactOnRails Configuration Error: The 'generated_assets_dirs' configuration option is no longer supported.
+        Since Shakapacker is now required, asset paths are automatically determined from your shakapacker.yml configuration.
+        Please remove 'config.generated_assets_dirs' from your config/initializers/react_on_rails.rb file.
+        Assets will be loaded from: #{packer_public_output_path}
+        If you need to customize the output path, configure it in config/shakapacker.yml under 'public_output_path'.
+      MSG
+
+      raise ReactOnRails::Error, msg
     end
 
     def ensure_webpack_generated_files_exists
diff --git a/lib/react_on_rails/packer_utils.rb b/lib/react_on_rails/packer_utils.rb
index 9e78e272e0..d1349466f7 100644
--- a/lib/react_on_rails/packer_utils.rb
+++ b/lib/react_on_rails/packer_utils.rb
@@ -41,7 +41,7 @@ def self.supports_basic_pack_generation?
     end
 
     def self.supports_autobundling?
-      min_version = ReactOnRails::PacksGenerator::MINIMUM_SHAKAPACKER_VERSION_FOR_AUTO_REGISTRATION
+      min_version = ReactOnRails::PacksGenerator::MINIMUM_SHAKAPACKER_VERSION_FOR_AUTO_BUNDLING
       ::Shakapacker.config.respond_to?(:nested_entries?) && shakapacker_version_requirement_met?(min_version)
     end
 
@@ -115,7 +115,7 @@ def self.check_manifest_not_cached
       msg = <<-MSG.strip_heredoc
           ERROR: you have enabled cache_manifest in the #{Rails.env} env when using the
           ReactOnRails::TestHelper.configure_rspec_to_compile_assets helper
-          To fix this: edit your config/shaka::Shakapacker.yml file and set cache_manifest to false for test.
+          To fix this: edit your config/shakapacker.yml file and set cache_manifest to false for test.
       MSG
       puts wrap_message(msg)
       exit!
@@ -135,8 +135,8 @@ def self.webpack_assets_status_checker
 
     def self.raise_nested_entries_disabled
       msg = <<~MSG
-        **ERROR** ReactOnRails: `nested_entries` is configured to be disabled in shaka::Shakapacker. Please update \
-        config/shaka::Shakapacker.yml to enable nested entries. for more information read
+        **ERROR** ReactOnRails: `nested_entries` is configured to be disabled in shakapacker. Please update \
+        config/shakapacker.yml to enable nested entries. for more information read
         https://www.shakacode.com/react-on-rails/docs/guides/file-system-based-automated-bundle-generation.md#enable-nested_entries-for-shakapacker
       MSG
 
@@ -145,7 +145,7 @@ def self.raise_nested_entries_disabled
 
     def self.raise_shakapacker_version_incompatible_for_autobundling
       msg = <<~MSG
-        **ERROR** ReactOnRails: Please upgrade ::Shakapacker to version #{ReactOnRails::PacksGenerator::MINIMUM_SHAKAPACKER_VERSION_FOR_AUTO_REGISTRATION} or \
+        **ERROR** ReactOnRails: Please upgrade ::Shakapacker to version #{ReactOnRails::PacksGenerator::MINIMUM_SHAKAPACKER_VERSION_FOR_AUTO_BUNDLING} or \
         above to use the automated bundle generation feature (which requires nested_entries support). \
         The currently installed version is #{ReactOnRails::PackerUtils.shakapacker_version}. \
         Basic pack generation requires ::Shakapacker #{ReactOnRails::PacksGenerator::MINIMUM_SHAKAPACKER_VERSION} or above.
@@ -162,15 +162,5 @@ def self.raise_shakapacker_version_incompatible_for_basic_pack_generation
 
       raise ReactOnRails::Error, msg
     end
-
-    def self.raise_shakapacker_not_installed
-      msg = <<~MSG
-        **ERROR** ReactOnRails: Missing ::Shakapacker gem. Please upgrade to use ::Shakapacker \
-        #{ReactOnRails::PacksGenerator::MINIMUM_SHAKAPACKER_VERSION} or above to use the \
-        automated bundle generation feature.
-      MSG
-
-      raise ReactOnRails::Error, msg
-    end
   end
 end
diff --git a/lib/react_on_rails/packs_generator.rb b/lib/react_on_rails/packs_generator.rb
index 171fe0e2d0..09807a288c 100644
--- a/lib/react_on_rails/packs_generator.rb
+++ b/lib/react_on_rails/packs_generator.rb
@@ -10,7 +10,7 @@ class PacksGenerator
     COMPONENT_EXTENSIONS = /\.(jsx?|tsx?)$/
     MINIMUM_SHAKAPACKER_VERSION = "6.5.1"
     # Auto-registration requires nested_entries support which was added in 7.0.0
-    MINIMUM_SHAKAPACKER_VERSION_FOR_AUTO_REGISTRATION = "7.0.0"
+    MINIMUM_SHAKAPACKER_VERSION_FOR_AUTO_BUNDLING = "7.0.0"
 
     def self.instance
       @instance ||= PacksGenerator.new
@@ -166,7 +166,7 @@ def generated_server_pack_file_content
 
     def add_generated_pack_to_server_bundle
       return if ReactOnRails.configuration.make_generated_server_bundle_the_entrypoint
-      return if ReactOnRails.configuration.server_bundle_js_file.empty?
+      return if ReactOnRails.configuration.server_bundle_js_file.blank?
 
       relative_path_to_generated_server_bundle = relative_path(server_bundle_entrypoint,
                                                                generated_server_bundle_file_path)
diff --git a/lib/react_on_rails/system_checker.rb b/lib/react_on_rails/system_checker.rb
index 935a2b8d0c..cc7bdca932 100644
--- a/lib/react_on_rails/system_checker.rb
+++ b/lib/react_on_rails/system_checker.rb
@@ -622,10 +622,10 @@ def report_shakapacker_version_with_threshold
             Gem::Version.new(version)
 
             if ReactOnRails::PackerUtils.supports_autobundling?
-              add_success("✅ Shakapacker #{version} (supports React on Rails auto-registration)")
+              add_success("✅ Shakapacker #{version} (supports React on Rails auto-bundling)")
             else
               add_warning("⚠️  Shakapacker #{version} - Version 7.0+ with nested_entries support needed " \
-                          "for React on Rails auto-registration")
+                          "for React on Rails auto-bundling")
             end
           rescue ArgumentError
             # Fallback for invalid version strings
diff --git a/lib/react_on_rails/utils.rb b/lib/react_on_rails/utils.rb
index 1f148188d8..60e15664f5 100644
--- a/lib/react_on_rails/utils.rb
+++ b/lib/react_on_rails/utils.rb
@@ -72,30 +72,70 @@ def self.server_bundle_path_is_http?
     end
 
     def self.bundle_js_file_path(bundle_name)
-      # Either:
-      # 1. Using same bundle for both server and client, so server bundle will be hashed in manifest
-      # 2. Using a different bundle (different Webpack config), so file is not hashed, and
-      #    bundle_js_path will throw so the default path is used without a hash.
-      # 3. The third option of having the server bundle hashed and a different configuration than
-      #    the client bundle is not supported for 2 reasons:
-      #    a. The webpack manifest plugin would have a race condition where the same manifest.json
-      #       is edited by both the webpack-dev-server
-      #    b. There is no good reason to hash the server bundle name.
+      # Priority order depends on bundle type:
+      # SERVER BUNDLES (normal case): Try private non-public locations first, then manifest, then legacy
+      # CLIENT BUNDLES (normal case): Try manifest first, then fallback locations
       if bundle_name == "manifest.json"
         # Default to the non-hashed name in the specified output directory, which, for legacy
         # React on Rails, this is the output directory picked up by the asset pipeline.
         # For Shakapacker, this is the public output path defined in the (shaka/web)packer.yml file.
-        File.join(generated_assets_full_path, bundle_name)
+        File.join(public_bundles_full_path, bundle_name)
       else
-        begin
-          ReactOnRails::PackerUtils.bundle_js_uri_from_packer(bundle_name)
-        rescue Shakapacker::Manifest::MissingEntryError
-          File.expand_path(
-            File.join(ReactOnRails::PackerUtils.packer_public_output_path,
-                      bundle_name)
-          )
+        bundle_js_file_path_with_packer(bundle_name)
+      end
+    end
+
+    private_class_method def self.bundle_js_file_path_with_packer(bundle_name)
+      is_server_bundle = server_bundle?(bundle_name)
+      config = ReactOnRails.configuration
+      root_path = Rails.root || "."
+
+      # If server bundle and server_bundle_output_path is configured, return that path directly
+      if is_server_bundle && config.server_bundle_output_path.present?
+        private_server_bundle_path = File.expand_path(File.join(root_path, config.server_bundle_output_path,
+                                                                bundle_name))
+
+        # Don't fall back to public directory if enforce_private_server_bundles is enabled
+        if config.enforce_private_server_bundles || File.exist?(private_server_bundle_path)
+          return private_server_bundle_path
+        end
+      end
+
+      # Try manifest lookup for all bundles
+      begin
+        ReactOnRails::PackerUtils.bundle_js_uri_from_packer(bundle_name)
+      rescue Shakapacker::Manifest::MissingEntryError
+        handle_missing_manifest_entry(bundle_name, is_server_bundle)
+      end
+    end
+
+    private_class_method def self.server_bundle?(bundle_name)
+      config = ReactOnRails.configuration
+      bundle_name == config.server_bundle_js_file ||
+      bundle_name == config.rsc_bundle_js_file
+    end
+
+    private_class_method def self.handle_missing_manifest_entry(bundle_name, is_server_bundle)
+      config = ReactOnRails.configuration
+      root_path = Rails.root || "."
+
+      # For server bundles with server_bundle_output_path configured, use that
+      if is_server_bundle && config.server_bundle_output_path.present?
+        candidate_paths = [File.expand_path(File.join(root_path, config.server_bundle_output_path, bundle_name))]
+        unless config.enforce_private_server_bundles
+          candidate_paths << File.expand_path(File.join(ReactOnRails::PackerUtils.packer_public_output_path,
+                                                        bundle_name))
+        end
+
+        candidate_paths.each do |path|
+          return path if File.exist?(path)
         end
+        return candidate_paths.first
       end
+
+      # For client bundles and server bundles without special config, use packer's public path
+      # This returns the environment-specific path configured in shakapacker.yml
+      File.expand_path(File.join(ReactOnRails::PackerUtils.packer_public_output_path, bundle_name))
     end
 
     def self.server_bundle_js_file_path
@@ -130,7 +170,7 @@ def self.react_server_client_manifest_file_path
               "react_server_client_manifest_file is nil, ensure it is set in your configuration"
       end
 
-      @react_server_manifest_path = File.join(generated_assets_full_path, asset_name)
+      @react_server_manifest_path = File.join(public_bundles_full_path, asset_name)
     end
 
     def self.running_on_windows?
@@ -166,10 +206,15 @@ def self.using_packer_source_path_is_not_defined_and_custom_node_modules?
         ReactOnRails.configuration.node_modules_location.present?
     end
 
-    def self.generated_assets_full_path
+    def self.public_bundles_full_path
       ReactOnRails::PackerUtils.packer_public_output_path
     end
 
+    # DEPRECATED: Use public_bundles_full_path for clarity about public vs private bundle paths
+    def self.generated_assets_full_path
+      public_bundles_full_path
+    end
+
     def self.gem_available?(name)
       Gem.loaded_specs[name].present?
     rescue Gem::LoadError
diff --git a/spec/dummy/config/initializers/react_on_rails.rb b/spec/dummy/config/initializers/react_on_rails.rb
index b1c70a9722..b1a46ea5db 100644
--- a/spec/dummy/config/initializers/react_on_rails.rb
+++ b/spec/dummy/config/initializers/react_on_rails.rb
@@ -27,6 +27,11 @@ def self.adjust_props_for_client_side_hydration(component_name, props)
   config.server_bundle_js_file = "server-bundle.js"
   config.random_dom_id = false # default is true
 
+  # Set server_bundle_output_path to nil so bundles are read from public path
+  # This ensures the dummy app uses the standard webpack output location
+  config.server_bundle_output_path = nil
+  config.enforce_private_server_bundles = false
+
   # Uncomment to test these
   # config.build_test_command = "yarn run build:test"
   # config.build_production_command = "RAILS_ENV=production NODE_ENV=production bin/shakapacker"
diff --git a/spec/react_on_rails/configuration_spec.rb b/spec/react_on_rails/configuration_spec.rb
index c3037546cf..4d79e0e6d2 100644
--- a/spec/react_on_rails/configuration_spec.rb
+++ b/spec/react_on_rails/configuration_spec.rb
@@ -12,6 +12,10 @@ module ReactOnRails
 
     before do
       ReactOnRails.instance_variable_set(:@configuration, nil)
+      # Mock PackerUtils to avoid Shakapacker dependency in tests
+      allow(Rails).to receive(:root).and_return(Pathname.new("/fake/rails/root")) unless Rails.root
+      allow(ReactOnRails::PackerUtils).to receive(:packer_public_output_path)
+        .and_return(File.expand_path(File.join(Rails.root, "public/packs")))
     end
 
     after do
@@ -21,13 +25,15 @@ module ReactOnRails
     describe "generated_assets_dir" do
       let(:using_packer) { true }
       let(:packer_public_output_path) do
-        File.expand_path(File.join(Rails.root, "public/webpack/dev"))
+        File.expand_path(File.join(Rails.root, "public/packs"))
       end
 
       before do
         allow(Rails).to receive(:root).and_return(File.expand_path("."))
         allow(::Shakapacker).to receive_message_chain("config.public_output_path")
           .and_return(Pathname.new(packer_public_output_path))
+        allow(ReactOnRails::PackerUtils).to receive(:packer_public_output_path)
+          .and_return(packer_public_output_path)
       end
 
       it "does not throw if the generated assets dir is blank with shakapacker" do
@@ -41,7 +47,7 @@ module ReactOnRails
       it "does not throw if the packer_public_output_path does match the generated assets dir" do
         expect do
           ReactOnRails.configure do |config|
-            config.generated_assets_dir = "public/webpack/dev"
+            config.generated_assets_dir = "public/packs"
           end
         end.not_to raise_error
       end
@@ -292,6 +298,8 @@ module ReactOnRails
       test_path = File.expand_path("public/webpack/test")
       allow(::Shakapacker).to receive_message_chain("config.public_output_path")
         .and_return(Pathname.new(test_path))
+      allow(ReactOnRails::PackerUtils).to receive(:packer_public_output_path)
+        .and_return(test_path)
 
       ReactOnRails.configure do |config|
         config.generated_assets_dir = test_path
@@ -307,6 +315,8 @@ module ReactOnRails
       test_path = File.expand_path("public/webpack/test")
       allow(::Shakapacker).to receive_message_chain("config.public_output_path")
         .and_return(Pathname.new(test_path))
+      allow(ReactOnRails::PackerUtils).to receive(:packer_public_output_path)
+        .and_return(test_path)
 
       ReactOnRails.configure do |config|
         config.generated_assets_dir = test_path
@@ -459,6 +469,62 @@ module ReactOnRails
         end
       end
     end
+
+    describe "enforce_private_server_bundles validation" do
+      context "when enforce_private_server_bundles is true" do
+        before do
+          # Mock Rails.root for tests that need path validation
+          allow(Rails).to receive(:root).and_return(Pathname.new("/test/app"))
+        end
+
+        it "raises error when server_bundle_output_path is nil" do
+          expect do
+            ReactOnRails.configure do |config|
+              config.server_bundle_output_path = nil
+              config.enforce_private_server_bundles = true
+            end
+          end.to raise_error(ReactOnRails::Error, /server_bundle_output_path is nil/)
+        end
+
+        it "raises error when server_bundle_output_path is inside public directory" do
+          expect do
+            ReactOnRails.configure do |config|
+              config.server_bundle_output_path = "public/server-bundles"
+              config.enforce_private_server_bundles = true
+            end
+          end.to raise_error(ReactOnRails::Error, /is inside the public directory/)
+        end
+
+        it "allows server_bundle_output_path outside public directory" do
+          expect do
+            ReactOnRails.configure do |config|
+              config.server_bundle_output_path = "ssr-generated"
+              config.enforce_private_server_bundles = true
+            end
+          end.not_to raise_error
+        end
+      end
+
+      context "when enforce_private_server_bundles is false" do
+        it "allows server_bundle_output_path to be nil" do
+          expect do
+            ReactOnRails.configure do |config|
+              config.server_bundle_output_path = nil
+              config.enforce_private_server_bundles = false
+            end
+          end.not_to raise_error
+        end
+
+        it "allows server_bundle_output_path inside public directory" do
+          expect do
+            ReactOnRails.configure do |config|
+              config.server_bundle_output_path = "public/server-bundles"
+              config.enforce_private_server_bundles = false
+            end
+          end.not_to raise_error
+        end
+      end
+    end
   end
 end
 
diff --git a/spec/react_on_rails/packer_utils_spec.rb b/spec/react_on_rails/packer_utils_spec.rb
index 4f94a7384a..6636eaa65f 100644
--- a/spec/react_on_rails/packer_utils_spec.rb
+++ b/spec/react_on_rails/packer_utils_spec.rb
@@ -118,7 +118,7 @@ module ReactOnRails
       it "returns true when ::Shakapacker >= 7.0.0 with nested_entries support" do
         allow(mock_config).to receive(:respond_to?).with(:nested_entries?).and_return(true)
         allow(described_class).to receive(:shakapacker_version_requirement_met?)
-          .with(ReactOnRails::PacksGenerator::MINIMUM_SHAKAPACKER_VERSION_FOR_AUTO_REGISTRATION).and_return(true)
+          .with(ReactOnRails::PacksGenerator::MINIMUM_SHAKAPACKER_VERSION_FOR_AUTO_BUNDLING).and_return(true)
 
         expect(described_class.supports_autobundling?).to be(true)
       end
@@ -126,7 +126,7 @@ module ReactOnRails
       it "returns false when ::Shakapacker < 7.0.0" do
         allow(mock_config).to receive(:respond_to?).with(:nested_entries?).and_return(true)
         allow(described_class).to receive(:shakapacker_version_requirement_met?)
-          .with(ReactOnRails::PacksGenerator::MINIMUM_SHAKAPACKER_VERSION_FOR_AUTO_REGISTRATION).and_return(false)
+          .with(ReactOnRails::PacksGenerator::MINIMUM_SHAKAPACKER_VERSION_FOR_AUTO_BUNDLING).and_return(false)
 
         expect(described_class.supports_autobundling?).to be(false)
       end
@@ -134,7 +134,7 @@ module ReactOnRails
       it "returns false when nested_entries method is not available" do
         allow(mock_config).to receive(:respond_to?).with(:nested_entries?).and_return(false)
         allow(described_class).to receive(:shakapacker_version_requirement_met?)
-          .with(ReactOnRails::PacksGenerator::MINIMUM_SHAKAPACKER_VERSION_FOR_AUTO_REGISTRATION).and_return(true)
+          .with(ReactOnRails::PacksGenerator::MINIMUM_SHAKAPACKER_VERSION_FOR_AUTO_BUNDLING).and_return(true)
 
         expect(described_class.supports_autobundling?).to be(false)
       end
@@ -144,13 +144,13 @@ module ReactOnRails
   describe "version constants validation" do
     it "ensures MINIMUM_SHAKAPACKER_VERSION constants are properly defined" do
       expect(ReactOnRails::PacksGenerator::MINIMUM_SHAKAPACKER_VERSION).to eq("6.5.1")
-      expect(ReactOnRails::PacksGenerator::MINIMUM_SHAKAPACKER_VERSION_FOR_AUTO_REGISTRATION).to eq("7.0.0")
+      expect(ReactOnRails::PacksGenerator::MINIMUM_SHAKAPACKER_VERSION_FOR_AUTO_BUNDLING).to eq("7.0.0")
     end
 
     it "ensures version requirements are logically consistent" do
       basic_version = Gem::Version.new(ReactOnRails::PacksGenerator::MINIMUM_SHAKAPACKER_VERSION)
       auto_reg_version = Gem::Version.new(
-        ReactOnRails::PacksGenerator::MINIMUM_SHAKAPACKER_VERSION_FOR_AUTO_REGISTRATION
+        ReactOnRails::PacksGenerator::MINIMUM_SHAKAPACKER_VERSION_FOR_AUTO_BUNDLING
       )
 
       expect(auto_reg_version).to be >= basic_version,
diff --git a/spec/react_on_rails/test_helper/webpack_assets_status_checker_spec.rb b/spec/react_on_rails/test_helper/webpack_assets_status_checker_spec.rb
index 3e48778c9d..76b46e52f5 100644
--- a/spec/react_on_rails/test_helper/webpack_assets_status_checker_spec.rb
+++ b/spec/react_on_rails/test_helper/webpack_assets_status_checker_spec.rb
@@ -62,7 +62,7 @@
         let(:fixture_dirname) { "assets_with_manifest_exist_server_bundle_separate" }
 
         before do
-          Packer = Shakapacker # rubocop:disable Lint/ConstantDefinitionInBlock, RSpec/LeakyConstantDeclaration
+          stub_const("Packer", Shakapacker)
           allow(ReactOnRails::PackerUtils).to receive_messages(
             manifest_exists?: true,
             packer_public_output_path: generated_assets_full_path
@@ -73,7 +73,7 @@
             .and_return(File.join(generated_assets_full_path, "manifest.json"))
           allow(ReactOnRails::PackerUtils).to receive(:bundle_js_uri_from_packer)
             .with("server-bundle.js")
-            .and_raise(Packer::Manifest::MissingEntryError)
+            .and_raise(Shakapacker::Manifest::MissingEntryError)
           touch_files_in_dir(generated_assets_full_path)
         end
 
diff --git a/spec/react_on_rails/utils_spec.rb b/spec/react_on_rails/utils_spec.rb
index dae9850b83..34e94a0ab3 100644
--- a/spec/react_on_rails/utils_spec.rb
+++ b/spec/react_on_rails/utils_spec.rb
@@ -61,6 +61,10 @@ def mock_bundle_configs(server_bundle_name: random_bundle_name, rsc_bundle_name:
         .and_return(server_bundle_name)
       allow(ReactOnRails).to receive_message_chain("configuration.rsc_bundle_js_file")
         .and_return(rsc_bundle_name)
+      allow(ReactOnRails).to receive_message_chain("configuration.server_bundle_output_path")
+        .and_return("ssr-generated")
+      allow(ReactOnRails).to receive_message_chain("configuration.enforce_private_server_bundles")
+        .and_return(false)
     end
 
     def mock_dev_server_running
@@ -88,6 +92,14 @@ def mock_dev_server_running
       end
 
       describe ".bundle_js_file_path" do
+        before do
+          # Mock configuration calls to avoid server bundle detection for regular client bundles
+          allow(ReactOnRails).to receive_message_chain("configuration.server_bundle_js_file")
+            .and_return("server-bundle.js")
+          allow(ReactOnRails).to receive_message_chain("configuration.rsc_bundle_js_file")
+            .and_return("rsc-bundle.js")
+        end
+
         subject do
           described_class.bundle_js_file_path("webpack-bundle.js")
         end
@@ -117,6 +129,90 @@ def mock_dev_server_running
 
               it { is_expected.to eq("#{packer_public_output_path}/manifest.json") }
             end
+
+            context "when file not in manifest" do
+              before do
+                mock_missing_manifest_entry("webpack-bundle.js")
+              end
+
+              let(:env_specific_path) { File.join(packer_public_output_path, "webpack-bundle.js") }
+
+              it "returns environment-specific path" do
+                result = described_class.bundle_js_file_path("webpack-bundle.js")
+                expect(result).to eq(File.expand_path(env_specific_path))
+              end
+            end
+
+            context "with server bundle (SSR/RSC) file not in manifest" do
+              let(:server_bundle_name) { "server-bundle.js" }
+              let(:ssr_generated_path) { File.expand_path(File.join("ssr-generated", server_bundle_name)) }
+
+              context "with server_bundle_output_path configured" do
+                before do
+                  mock_missing_manifest_entry(server_bundle_name)
+                  allow(ReactOnRails).to receive_message_chain("configuration.server_bundle_js_file")
+                    .and_return(server_bundle_name)
+                  allow(ReactOnRails).to receive_message_chain("configuration.server_bundle_output_path")
+                    .and_return("ssr-generated")
+                  allow(ReactOnRails).to receive_message_chain("configuration.enforce_private_server_bundles")
+                    .and_return(false)
+                end
+
+                it "returns configured path directly without checking existence" do
+                  # When enforce_private_server_bundles is false, it will check File.exist?
+                  # for both private and public paths, but should still return the configured path
+                  public_path = File.expand_path(File.join(packer_public_output_path, server_bundle_name))
+                  allow(File).to receive(:exist?).with(ssr_generated_path).and_return(false)
+                  allow(File).to receive(:exist?).with(public_path).and_return(false)
+
+                  result = described_class.bundle_js_file_path(server_bundle_name)
+                  expect(result).to eq(ssr_generated_path)
+                end
+              end
+
+              context "without server_bundle_output_path configured" do
+                before do
+                  mock_missing_manifest_entry(server_bundle_name)
+                  allow(ReactOnRails).to receive_message_chain("configuration.server_bundle_js_file")
+                    .and_return(server_bundle_name)
+                  allow(ReactOnRails).to receive_message_chain("configuration.server_bundle_output_path")
+                    .and_return(nil)
+                  allow(ReactOnRails).to receive_message_chain("configuration.enforce_private_server_bundles")
+                    .and_return(false)
+                end
+
+                it "uses packer public output path" do
+                  result = described_class.bundle_js_file_path(server_bundle_name)
+                  expect(result).to eq(File.expand_path(File.join(packer_public_output_path, server_bundle_name)))
+                end
+              end
+            end
+
+            context "with RSC bundle file not in manifest" do
+              let(:rsc_bundle_name) { "rsc-bundle.js" }
+              let(:ssr_generated_path) { File.expand_path(File.join("ssr-generated", rsc_bundle_name)) }
+
+              before do
+                mock_missing_manifest_entry(rsc_bundle_name)
+                allow(ReactOnRails).to receive_message_chain("configuration.rsc_bundle_js_file")
+                  .and_return(rsc_bundle_name)
+                allow(ReactOnRails).to receive_message_chain("configuration.server_bundle_output_path")
+                  .and_return("ssr-generated")
+                allow(ReactOnRails).to receive_message_chain("configuration.enforce_private_server_bundles")
+                  .and_return(false)
+              end
+
+              it "treats RSC bundles as server bundles and returns configured path directly" do
+                # When enforce_private_server_bundles is false, it will check File.exist?
+                # for both private and public paths, but should still return the configured path
+                public_path = File.expand_path(File.join(packer_public_output_path, rsc_bundle_name))
+                allow(File).to receive(:exist?).with(ssr_generated_path).and_return(false)
+                allow(File).to receive(:exist?).with(public_path).and_return(false)
+
+                result = described_class.bundle_js_file_path(rsc_bundle_name)
+                expect(result).to eq(ssr_generated_path)
+              end
+            end
           end
         end
       end
@@ -157,25 +253,49 @@ def mock_dev_server_running
           include_context "with #{packer_type} enabled"
 
           context "with server file not in manifest", packer_type.to_sym do
-            it "returns the unhashed server path" do
+            it "returns the private ssr-generated path for server bundles" do
               server_bundle_name = "server-bundle.js"
               mock_bundle_configs(server_bundle_name: server_bundle_name)
               mock_missing_manifest_entry(server_bundle_name)
 
               path = described_class.server_bundle_js_file_path
 
-              expect(path).to end_with("public/webpack/development/#{server_bundle_name}")
+              expect(path).to end_with("ssr-generated/#{server_bundle_name}")
+            end
+
+            context "with server_bundle_output_path configured" do
+              it "returns the configured path directly without checking file existence" do
+                server_bundle_name = "server-bundle.js"
+                mock_bundle_configs(server_bundle_name: server_bundle_name)
+                mock_missing_manifest_entry(server_bundle_name)
+                # NOTE: mock_bundle_configs sets enforce_private_server_bundles to false
+
+                # Since server_bundle_output_path is configured, it will try manifest lookup first,
+                # then fall back to candidate paths. With enforce_private_server_bundles=false,
+                # it will check File.exist? for both private and public paths
+                ssr_generated_path = File.expand_path(File.join("ssr-generated", server_bundle_name))
+                public_path = File.expand_path(File.join(packer_public_output_path, server_bundle_name))
+                allow(File).to receive(:exist?).with(ssr_generated_path).and_return(false)
+                allow(File).to receive(:exist?).with(public_path).and_return(false)
+
+                path = described_class.server_bundle_js_file_path
+
+                expect(path).to end_with("ssr-generated/#{server_bundle_name}")
+              end
             end
           end
 
           context "with server file in the manifest, used for client", packer_type.to_sym do
             it "returns the correct path hashed server path" do
-              packer = ::Shakapacker
+              # Use Shakapacker directly instead of packer method
               mock_bundle_configs(server_bundle_name: "webpack-bundle.js")
+              # Clear server_bundle_output_path to test manifest behavior
+              allow(ReactOnRails).to receive_message_chain("configuration.server_bundle_output_path")
+                .and_return(nil)
               allow(ReactOnRails).to receive_message_chain("configuration.same_bundle_for_client_and_server")
                 .and_return(true)
               mock_bundle_in_manifest("webpack-bundle.js", "webpack/development/webpack-bundle-123456.js")
-              allow(packer).to receive_message_chain("dev_server.running?")
+              allow(Shakapacker).to receive_message_chain("dev_server.running?")
                 .and_return(false)
 
               path = described_class.server_bundle_js_file_path
@@ -186,6 +306,9 @@ def mock_dev_server_running
             context "with webpack-dev-server running, and same file used for server and client" do
               it "returns the correct path hashed server path" do
                 mock_bundle_configs(server_bundle_name: "webpack-bundle.js")
+                # Clear server_bundle_output_path to test manifest behavior
+                allow(ReactOnRails).to receive_message_chain("configuration.server_bundle_output_path")
+                  .and_return(nil)
                 allow(ReactOnRails).to receive_message_chain("configuration.same_bundle_for_client_and_server")
                   .and_return(true)
                 mock_dev_server_running
@@ -202,6 +325,9 @@ def mock_dev_server_running
                   packer_type.to_sym do
             it "returns the correct path hashed server path" do
               mock_bundle_configs(server_bundle_name: "server-bundle.js")
+              # Clear server_bundle_output_path to test manifest behavior
+              allow(ReactOnRails).to receive_message_chain("configuration.server_bundle_output_path")
+                .and_return(nil)
               allow(ReactOnRails).to receive_message_chain("configuration.same_bundle_for_client_and_server")
                 .and_return(false)
               mock_bundle_in_manifest("server-bundle.js", "webpack/development/server-bundle-123456.js")
@@ -220,25 +346,28 @@ def mock_dev_server_running
           include_context "with #{packer_type} enabled"
 
           context "with server file not in manifest", packer_type.to_sym do
-            it "returns the unhashed server path" do
+            it "returns the private ssr-generated path for RSC bundles" do
               server_bundle_name = "rsc-bundle.js"
               mock_bundle_configs(rsc_bundle_name: server_bundle_name)
               mock_missing_manifest_entry(server_bundle_name)
 
               path = described_class.rsc_bundle_js_file_path
 
-              expect(path).to end_with("public/webpack/development/#{server_bundle_name}")
+              expect(path).to end_with("ssr-generated/#{server_bundle_name}")
             end
           end
 
           context "with server file in the manifest, used for client", packer_type.to_sym do
             it "returns the correct path hashed server path" do
-              packer = ::Shakapacker
+              # Use Shakapacker directly instead of packer method
               mock_bundle_configs(rsc_bundle_name: "webpack-bundle.js")
+              # Clear server_bundle_output_path to test manifest behavior
+              allow(ReactOnRails).to receive_message_chain("configuration.server_bundle_output_path")
+                .and_return(nil)
               allow(ReactOnRails).to receive_message_chain("configuration.same_bundle_for_client_and_server")
                 .and_return(true)
               mock_bundle_in_manifest("webpack-bundle.js", "webpack/development/webpack-bundle-123456.js")
-              allow(packer).to receive_message_chain("dev_server.running?")
+              allow(Shakapacker).to receive_message_chain("dev_server.running?")
                 .and_return(false)
 
               path = described_class.rsc_bundle_js_file_path
@@ -249,6 +378,9 @@ def mock_dev_server_running
             context "with webpack-dev-server running, and same file used for server and client" do
               it "returns the correct path hashed server path" do
                 mock_bundle_configs(rsc_bundle_name: "webpack-bundle.js")
+                # Clear server_bundle_output_path to test manifest behavior
+                allow(ReactOnRails).to receive_message_chain("configuration.server_bundle_output_path")
+                  .and_return(nil)
                 allow(ReactOnRails).to receive_message_chain("configuration.same_bundle_for_client_and_server")
                   .and_return(true)
                 mock_dev_server_running
@@ -265,6 +397,9 @@ def mock_dev_server_running
                   packer_type.to_sym do
             it "returns the correct path hashed server path" do
               mock_bundle_configs(rsc_bundle_name: "rsc-bundle.js")
+              # Clear server_bundle_output_path to test manifest behavior
+              allow(ReactOnRails).to receive_message_chain("configuration.server_bundle_output_path")
+                .and_return(nil)
               allow(ReactOnRails).to receive_message_chain("configuration.same_bundle_for_client_and_server")
                 .and_return(false)
               mock_bundle_in_manifest("rsc-bundle.js", "webpack/development/server-bundle-123456.js")
@@ -534,7 +669,7 @@ def mock_dev_server_running
       context "when in development environment" do
         before do
           allow(Rails.env).to receive(:development?).and_return(true)
-          allow(described_class).to receive(:generated_assets_full_path)
+          allow(described_class).to receive(:public_bundles_full_path)
             .and_return("/path/to/generated/assets")
         end
 
@@ -554,7 +689,7 @@ def mock_dev_server_running
 
       context "when not in development environment" do
         before do
-          allow(described_class).to receive(:generated_assets_full_path)
+          allow(described_class).to receive(:public_bundles_full_path)
             .and_return("/path/to/generated/assets")
         end
 
@@ -574,7 +709,7 @@ def mock_dev_server_running
 
       context "with different manifest file names" do
         before do
-          allow(described_class).to receive(:generated_assets_full_path)
+          allow(described_class).to receive(:public_bundles_full_path)
             .and_return("/path/to/generated/assets")
         end
 
@@ -599,7 +734,7 @@ def mock_dev_server_running
         before do
           allow(ReactOnRails.configuration).to receive(:react_server_client_manifest_file)
             .and_return(nil)
-          allow(described_class).to receive(:generated_assets_full_path)
+          allow(described_class).to receive(:public_bundles_full_path)
             .and_return("/path/to/generated/assets")
         end