diff --git a/providers/flagsmith/pom.xml b/providers/flagsmith/pom.xml
index f73f689d9e..e7c2a3e6e3 100644
--- a/providers/flagsmith/pom.xml
+++ b/providers/flagsmith/pom.xml
@@ -30,20 +30,20 @@
         <dependency>
             <groupId>com.flagsmith</groupId>
             <artifactId>flagsmith-java-client</artifactId>
-            <version>7.4.3</version>
+            <version>8.1.1</version>
         </dependency>
 
         <dependency>
             <groupId>com.squareup.okhttp3</groupId>
-            <artifactId>okhttp</artifactId>
-            <version>4.12.0</version>
+            <artifactId>okhttp-jvm</artifactId>
+            <version>5.0.0</version>
         </dependency>
 
         <!-- test -->
         <dependency>
             <groupId>com.squareup.okhttp3</groupId>
             <artifactId>mockwebserver</artifactId>
-            <version>4.12.0</version>
+            <version>5.0.0</version>
             <scope>test</scope>
         </dependency>
 
diff --git a/providers/flagsmith/src/test/java/dev.openfeature.contrib.providers.flagsmith/FlagsmithProviderTest.java b/providers/flagsmith/src/test/java/dev.openfeature.contrib.providers.flagsmith/FlagsmithProviderTest.java
index e3a27c988c..505c9649af 100644
--- a/providers/flagsmith/src/test/java/dev.openfeature.contrib.providers.flagsmith/FlagsmithProviderTest.java
+++ b/providers/flagsmith/src/test/java/dev.openfeature.contrib.providers.flagsmith/FlagsmithProviderTest.java
@@ -1,5 +1,6 @@
 package dev.openfeature.contrib.providers.flagsmith;
 
+import static org.awaitility.Awaitility.await;
 import static org.junit.jupiter.api.Assertions.assertDoesNotThrow;
 import static org.junit.jupiter.api.Assertions.assertEquals;
 import static org.junit.jupiter.api.Assertions.assertNull;
@@ -22,15 +23,16 @@
 import java.lang.reflect.Method;
 import java.nio.file.Files;
 import java.nio.file.Paths;
+import java.time.Duration;
 import java.util.Collections;
 import java.util.HashMap;
 import java.util.Map;
 import java.util.concurrent.TimeUnit;
 import java.util.stream.Stream;
 import lombok.SneakyThrows;
+import okhttp3.mockwebserver.Dispatcher;
 import okhttp3.mockwebserver.MockResponse;
 import okhttp3.mockwebserver.MockWebServer;
-import okhttp3.mockwebserver.QueueDispatcher;
 import okhttp3.mockwebserver.RecordedRequest;
 import org.junit.jupiter.api.AfterEach;
 import org.junit.jupiter.api.BeforeEach;
@@ -47,7 +49,7 @@ public class FlagsmithProviderTest {
     public static MockWebServer mockFlagsmithErrorServer;
     public static FlagsmithProvider flagsmithProvider;
 
-    final QueueDispatcher dispatcher = new QueueDispatcher() {
+    final Dispatcher dispatcher = new Dispatcher() {
         @SneakyThrows
         @Override
         public MockResponse dispatch(RecordedRequest request) {
@@ -70,7 +72,7 @@ public MockResponse dispatch(RecordedRequest request) {
         }
     };
 
-    final QueueDispatcher errorDispatcher = new QueueDispatcher() {
+    final Dispatcher errorDispatcher = new Dispatcher() {
         @SneakyThrows
         @Override
         public MockResponse dispatch(RecordedRequest request) {
@@ -212,6 +214,49 @@ void shouldDefaultEnvironmentRefreshIntervalSecondsTo60() {
         assertEquals(Integer.valueOf(60), options.getEnvironmentRefreshIntervalSeconds());
     }
 
+    @Test
+    void shouldMatchIdentitySegmentDuringLocalEvaluation() {
+        mockFlagsmithServer.setDispatcher(new Dispatcher() {
+            @SneakyThrows
+            @Override
+            public MockResponse dispatch(RecordedRequest request) {
+                if (request.getPath().startsWith("/environment-document/")) {
+                    return new MockResponse()
+                            .setBody(readMockResponse("identity-segment-environment-document.json"))
+                            .addHeader("Content-Type", "application/json");
+                }
+                return new MockResponse().setResponseCode(404);
+            }
+        });
+
+        FlagsmithProvider localProvider = new FlagsmithProvider(FlagsmithProviderOptions.builder()
+                .apiKey("ser.API_KEY")
+                .baseUri(String.format("http://localhost:%s", mockFlagsmithServer.getPort()))
+                .localEvaluation(true)
+                .build());
+        try {
+            MutableContext matchingContext = new MutableContext();
+            matchingContext.setTargetingKey("matching-identity");
+
+            await().atMost(Duration.ofSeconds(5))
+                    .untilAsserted(() -> assertEquals(
+                            "matched",
+                            localProvider
+                                    .getStringEvaluation("identity_feature", "fallback", matchingContext)
+                                    .getValue()));
+
+            MutableContext otherContext = new MutableContext();
+            otherContext.setTargetingKey("other-identity");
+            assertEquals(
+                    "default",
+                    localProvider
+                            .getStringEvaluation("identity_feature", "fallback", otherContext)
+                            .getValue());
+        } finally {
+            localProvider.shutdown();
+        }
+    }
+
     @ParameterizedTest
     @MethodSource("invalidOptions")
     void shouldThrowAnExceptionWhenOptionsInvalid(FlagsmithProviderOptions options) {
diff --git a/providers/flagsmith/src/test/resources/mock_responses/identity-segment-environment-document.json b/providers/flagsmith/src/test/resources/mock_responses/identity-segment-environment-document.json
new file mode 100644
index 0000000000..9b5e8d1e6e
--- /dev/null
+++ b/providers/flagsmith/src/test/resources/mock_responses/identity-segment-environment-document.json
@@ -0,0 +1,44 @@
+{
+  "id": 18141,
+  "api_key": "ser.API_KEY",
+  "name": "Test environment",
+  "feature_states": [
+    {
+      "django_id": 188032,
+      "feature": {"id": 35352, "name": "identity_feature", "type": "STANDARD"},
+      "enabled": true,
+      "feature_state_value": "default",
+      "multivariate_feature_state_values": []
+    }
+  ],
+  "identity_overrides": [],
+  "project": {
+    "id": 7720,
+    "name": "Test project",
+    "segments": [
+      {
+        "id": 123,
+        "name": "identity-segment",
+        "rules": [
+          {
+            "type": "ALL",
+            "conditions": [
+              {"operator": "EQUAL", "property_": "$.identity.identifier", "value": "matching-identity"}
+            ],
+            "rules": []
+          }
+        ],
+        "feature_states": [
+          {
+            "django_id": 188033,
+            "feature": {"id": 35352, "name": "identity_feature", "type": "STANDARD"},
+            "enabled": true,
+            "feature_state_value": "matched",
+            "multivariate_feature_state_values": [],
+            "feature_segment": {"priority": 1}
+          }
+        ]
+      }
+    ]
+  }
+}