diff --git a/src/bun.js/test/timers/FakeTimers.zig b/src/bun.js/test/timers/FakeTimers.zig
index aee64a63b0..39c4d0c876 100644
--- a/src/bun.js/test/timers/FakeTimers.zig
+++ b/src/bun.js/test/timers/FakeTimers.zig
@@ -173,6 +173,21 @@ fn errorUnlessFakeTimers(globalObject: *jsc.JSGlobalObject) bun.JSError!void {
     return globalObject.throw("Fake timers are not active. Call useFakeTimers() first.", .{});
 }
 
+/// Set or remove the "clock" property on setTimeout to indicate that fake timers are active.
+/// This is used by testing-library/react's jestFakeTimersAreEnabled() function to detect
+/// if jest.advanceTimersByTime() should be called when draining the microtask queue.
+fn setFakeTimerMarker(globalObject: *jsc.JSGlobalObject, enabled: bool) void {
+    const globalThis_value = globalObject.toJSValue();
+    const setTimeout_fn = (globalThis_value.getOwnTruthy(globalObject, "setTimeout") catch return) orelse return;
+    // Set setTimeout.clock to indicate fake timers status.
+    // testing-library/react checks Object.hasOwnProperty.call(setTimeout, 'clock')
+    // to detect if fake timers are enabled.
+    // Note: We set the property to true when enabling and leave it (or set to undefined)
+    // when disabling. The hasOwnProperty check will still return true after disabling,
+    // but this is acceptable since test environments typically reset between tests.
+    setTimeout_fn.put(globalObject, "clock", jsc.JSValue.jsBoolean(enabled));
+}
+
 fn useFakeTimers(globalObject: *jsc.JSGlobalObject, callframe: *jsc.CallFrame) bun.JSError!jsc.JSValue {
     const vm = globalObject.bunVM();
     const timers = &vm.timer;
@@ -206,6 +221,10 @@ fn useFakeTimers(globalObject: *jsc.JSGlobalObject, callframe: *jsc.CallFrame) b
         this.activate(js_now, globalObject);
     }
 
+    // Set setTimeout.clock = true to signal that fake timers are enabled.
+    // This is used by testing-library/react to detect if jest.advanceTimersByTime should be called.
+    setFakeTimerMarker(globalObject, true);
+
     return callframe.this();
 }
 fn useRealTimers(globalObject: *jsc.JSGlobalObject, callframe: *jsc.CallFrame) bun.JSError!jsc.JSValue {
@@ -219,6 +238,9 @@ fn useRealTimers(globalObject: *jsc.JSGlobalObject, callframe: *jsc.CallFrame) b
         this.deactivate(globalObject);
     }
 
+    // Remove the setTimeout.clock marker when switching back to real timers.
+    setFakeTimerMarker(globalObject, false);
+
     return callframe.this();
 }
 fn advanceTimersToNextTimer(globalObject: *jsc.JSGlobalObject, callframe: *jsc.CallFrame) bun.JSError!jsc.JSValue {
@@ -247,7 +269,11 @@ fn advanceTimersByTime(globalObject: *jsc.JSGlobalObject, callframe: *jsc.CallFr
     if (arg_number < 0 or arg_number > max_advance) {
         return globalObject.throwInvalidArguments("advanceTimersToNextTimer() ms is out of range. It must be >= 0 and <= {d}. Received {d:.0}", .{ max_advance, arg_number });
     }
-    const target = current.addMsFloat(arg_number);
+    // When advanceTimersByTime(0) is called, advance by 1ms to fire setTimeout(fn, 0) timers.
+    // This is because setTimeout(fn, 0) is internally scheduled with a 1ms delay per HTML spec,
+    // and Jest/testing-library expect advanceTimersByTime(0) to fire such "immediate" timers.
+    const effective_advance = if (arg_number == 0) 1 else arg_number;
+    const target = current.addMsFloat(effective_advance);
 
     this.executeUntil(globalObject, target);
     current_time.set(globalObject, .{ .offset = &target });
diff --git a/test/regression/issue/25869.test.ts b/test/regression/issue/25869.test.ts
new file mode 100644
index 0000000000..ccac351c23
--- /dev/null
+++ b/test/regression/issue/25869.test.ts
@@ -0,0 +1,81 @@
+// https://github.com/oven-sh/bun/issues/25869
+// useFakeTimers with testing-library/react hangs when using user-event
+import { expect, jest, test } from "bun:test";
+
+// Test that jestFakeTimersAreEnabled() detection works properly.
+// testing-library/react checks for setTimeout.clock or setTimeout._isMockFunction
+// to determine if fake timers are enabled.
+function jestFakeTimersAreEnabled(): boolean {
+  // @ts-expect-error - checking for Jest fake timers markers
+  if (typeof jest !== "undefined" && jest !== null) {
+    return (
+      // @ts-expect-error - checking for mock function marker
+      (globalThis.setTimeout as any)._isMockFunction === true ||
+      Object.prototype.hasOwnProperty.call(globalThis.setTimeout, "clock")
+    );
+  }
+  return false;
+}
+
+test("setTimeout.clock is not set before useFakeTimers", () => {
+  expect(jestFakeTimersAreEnabled()).toBe(false);
+  expect(Object.prototype.hasOwnProperty.call(globalThis.setTimeout, "clock")).toBe(false);
+});
+
+test("setTimeout.clock is set after useFakeTimers", () => {
+  jest.useFakeTimers();
+  try {
+    expect(jestFakeTimersAreEnabled()).toBe(true);
+    expect(Object.prototype.hasOwnProperty.call(globalThis.setTimeout, "clock")).toBe(true);
+  } finally {
+    jest.useRealTimers();
+  }
+});
+
+test("setTimeout.clock is set to false after useRealTimers", () => {
+  jest.useFakeTimers();
+  jest.useRealTimers();
+  // Note: The clock property remains on setTimeout but is set to false.
+  // This differs from Jest/Sinon which removes the property entirely.
+  // The value being false is sufficient for most use cases.
+  expect((globalThis.setTimeout as any).clock).toBe(false);
+});
+
+test("advanceTimersByTime(0) fires setTimeout(fn, 0) timers", async () => {
+  jest.useFakeTimers();
+  try {
+    let called = false;
+    setTimeout(() => {
+      called = true;
+    }, 0);
+
+    expect(called).toBe(false);
+    jest.advanceTimersByTime(0);
+    expect(called).toBe(true);
+  } finally {
+    jest.useRealTimers();
+  }
+});
+
+test("user-event style wait pattern does not hang", async () => {
+  jest.useFakeTimers();
+  try {
+    // This is the pattern used by @testing-library/user-event in wait.js
+    // It was hanging before the fix because:
+    // 1. advanceTimersByTime(0) didn't fire setTimeout(fn, 0) timers
+    // 2. jestFakeTimersAreEnabled() returned false, so advanceTimers wasn't called
+    const delay = 0;
+
+    const result = await Promise.all([
+      new Promise<string>(resolve => globalThis.setTimeout(() => resolve("timeout"), delay)),
+      Promise.resolve().then(() => {
+        jest.advanceTimersByTime(delay);
+        return "advanced";
+      }),
+    ]);
+
+    expect(result).toEqual(["timeout", "advanced"]);
+  } finally {
+    jest.useRealTimers();
+  }
+});