diff --git a/lib/core/useIsRtl.test.ts b/lib/core/useIsRtl.test.ts
new file mode 100644
index 00000000..0296fa3b
--- /dev/null
+++ b/lib/core/useIsRtl.test.ts
@@ -0,0 +1,43 @@
+import { renderHook } from "@testing-library/react";
+import { describe, expect, test } from "vitest";
+import { useIsRtl } from "./useIsRtl";
+
+describe("useIsRtl", () => {
+  test("should read the DOM element's direction when no explicit prop provided", () => {
+    const ltrElement = document.createElement("div");
+    ltrElement.dir = "ltr";
+
+    const rtlElement = document.createElement("div");
+    rtlElement.dir = "rtl";
+
+    const { result, rerender } = renderHook(
+      (element: HTMLElement) => useIsRtl(element, undefined),
+      { initialProps: ltrElement }
+    );
+
+    expect(result.current).toBe(false);
+
+    rerender(rtlElement);
+    expect(result.current).toBe(true);
+
+    rerender(ltrElement);
+    expect(result.current).toBe(false);
+  });
+
+  test("should update when an explicit direction changes", () => {
+    const element = document.createElement("div");
+
+    const { result, rerender } = renderHook(
+      (dir: "ltr" | "rtl") => useIsRtl(element, dir),
+      { initialProps: "ltr" as "ltr" | "rtl" }
+    );
+
+    expect(result.current).toBe(false);
+
+    rerender("rtl");
+    expect(result.current).toBe(true);
+
+    rerender("ltr");
+    expect(result.current).toBe(false);
+  });
+});
diff --git a/lib/core/useIsRtl.ts b/lib/core/useIsRtl.ts
index ee687b5f..b9f35f89 100644
--- a/lib/core/useIsRtl.ts
+++ b/lib/core/useIsRtl.ts
@@ -8,10 +8,10 @@ export function useIsRtl(
   const [value, setValue] = useState(dir === "rtl");
 
   useLayoutEffect(() => {
-    if (element) {
-      if (!dir) {
-        setValue(isRtl(element));
-      }
+    if (dir) {
+      setValue(dir === "rtl");
+    } else if (element) {
+      setValue(isRtl(element));
     }
   }, [dir, element]);