diff --git a/Koha/REST/V1/Checkouts.pm b/Koha/REST/V1/Checkouts.pm
index ab99808d49..522ff799a8 100644
--- a/Koha/REST/V1/Checkouts.pm
+++ b/Koha/REST/V1/Checkouts.pm
@@ -120,8 +120,16 @@ sub _check_availability {
     if ( $c->stash('is_public') ) {
 
         # Upgrade some confirmations to blockers
-        my @should_block =
-            qw/TOO_MANY ISSUED_TO_ANOTHER RESERVED RESERVE_WAITING TRANSFERRED PROCESSING AGE_RESTRICTION/;
+        my @should_block = qw/TOO_MANY ISSUED_TO_ANOTHER AGE_RESTRICTION/;
+
+        # Hold-related confirmations are gated by AllowItemsOnHoldCheckoutSCO:
+        #   0 = block pending and waiting holds (default)
+        #   1 = allow pending holds, block waiting/transit/processing holds
+        #   2 = allow pending and waiting/transit/processing holds
+        my $hold_pref = C4::Context->preference('AllowItemsOnHoldCheckoutSCO') || 0;
+        push @should_block, 'RESERVED'                                 if $hold_pref < 1;
+        push @should_block, qw/RESERVE_WAITING TRANSFERRED PROCESSING/ if $hold_pref < 2;
+
         for my $block (@should_block) {
             if ( exists( $confirmation->{$block} ) ) {
                 $impossible->{$block} = $confirmation->{$block};
@@ -129,9 +137,15 @@ sub _check_availability {
             }
         }
 
+        # Drop the remaining hold confirmations so the caller does not have
+        # to resolve a confirmation token for a policy we've already permitted
+        for my $allowed (qw/RESERVED RESERVE_WAITING TRANSFERRED PROCESSING/) {
+            delete $confirmation->{$allowed};
+        }
+
         # Remove any non-public info that's returned by CanBookBeIssued
         my @restricted_keys =
-            qw/issued_borrowernumber issued_cardnumber issued_firstname issued_surname resborrowernumber resbranchcode rescardnumber reserve_id resfirstname resreservedate ressurname item_notforloan/;
+            qw/issued_borrowernumber issued_cardnumber issued_firstname issued_surname resborrowernumber resbranchcode rescardnumber reserve_id resfirstname resreservedate reswaitingdate ressurname item_notforloan/;
         for my $key (@restricted_keys) {
             delete $confirmation->{$key};
             delete $impossible->{$key};
diff --git a/t/db_dependent/api/v1/checkouts.t b/t/db_dependent/api/v1/checkouts.t
index adf7068ba1..a672f9e9f8 100755
--- a/t/db_dependent/api/v1/checkouts.t
+++ b/t/db_dependent/api/v1/checkouts.t
@@ -380,7 +380,7 @@ subtest 'get_availability' => sub {
     %needsconfirmation = ();
 
     subtest 'public availability' => sub {
-        plan tests => 22;
+        plan tests => 40;
 
         # Authentication required
         $t->get_ok("/api/v1/public/checkouts/availability?item_id=$item1_id&patron_id=$patron_id")->status_is(401);
@@ -411,6 +411,59 @@ subtest 'get_availability' => sub {
             ->json_has('/confirmation_token');
         %needsconfirmation = ();
 
+        # Hold confirmations are gated by AllowItemsOnHoldCheckoutSCO.
+        # Because the mocked CanBookBeIssued returns the hashes by reference
+        # and _check_availability mutates them, we reset both hashes before
+        # every request.
+        my $reset_hold_hashes = sub {
+            %issuingimpossible = ();
+            %needsconfirmation = (
+                RESERVED        => 1,
+                RESERVE_WAITING => 1,
+                TRANSFERRED     => 1,
+                PROCESSING      => 1
+            );
+        };
+
+        $reset_hold_hashes->();
+        t::lib::Mocks::mock_preference( 'AllowItemsOnHoldCheckoutSCO', 0 );
+        $t->get_ok(
+            "//$unauth_userid:$unauth_password@/api/v1/public/checkouts/availability?item_id=$item1_id&patron_id=$patron_id"
+        )->status_is(200)->json_is(
+            '/blockers' => {
+                RESERVED        => 1,
+                RESERVE_WAITING => 1,
+                TRANSFERRED     => 1,
+                PROCESSING      => 1
+            }
+        )->json_is( '/confirms' => {} )->json_is( '/warnings' => {} )->json_has('/confirmation_token');
+
+        $reset_hold_hashes->();
+        t::lib::Mocks::mock_preference( 'AllowItemsOnHoldCheckoutSCO', 1 );
+        $t->get_ok(
+            "//$unauth_userid:$unauth_password@/api/v1/public/checkouts/availability?item_id=$item1_id&patron_id=$patron_id"
+        )->status_is(200)->json_is(
+            '/blockers' => {
+                RESERVE_WAITING => 1,
+                TRANSFERRED     => 1,
+                PROCESSING      => 1
+            }
+        )->json_is( '/confirms' => {} )->json_is( '/warnings' => {} )->json_has('/confirmation_token');
+
+        $reset_hold_hashes->();
+        t::lib::Mocks::mock_preference( 'AllowItemsOnHoldCheckoutSCO', 2 );
+        $t->get_ok(
+            "//$unauth_userid:$unauth_password@/api/v1/public/checkouts/availability?item_id=$item1_id&patron_id=$patron_id"
+            )
+            ->status_is(200)
+            ->json_is( '/blockers' => {} )
+            ->json_is( '/confirms' => {} )
+            ->json_is( '/warnings' => {} )
+            ->json_has('/confirmation_token');
+
+        %issuingimpossible = ();
+        %needsconfirmation = ();
+
         # Remove personal information from public endpoint
         %issuingimpossible = (
             issued_borrowernumber => 'private',