diff --git a/internal/gatewayapi/backendtrafficpolicy.go b/internal/gatewayapi/backendtrafficpolicy.go
index d71d49f32ca9..8a40bfe7a3f7 100644
--- a/internal/gatewayapi/backendtrafficpolicy.go
+++ b/internal/gatewayapi/backendtrafficpolicy.go
@@ -710,8 +710,9 @@ func buildRateLimitRule(rule egv1a1.RateLimitRule) (*ir.RateLimitRule, error) {
 				fallthrough
 			case *header.Type == egv1a1.HeaderMatchExact && header.Value != nil:
 				m := &ir.StringMatch{
-					Name:  header.Name,
-					Exact: header.Value,
+					Name:   header.Name,
+					Exact:  header.Value,
+					Invert: header.Invert,
 				}
 				irRule.HeaderMatches = append(irRule.HeaderMatches, m)
 			case *header.Type == egv1a1.HeaderMatchRegularExpression && header.Value != nil:
@@ -721,12 +722,14 @@ func buildRateLimitRule(rule egv1a1.RateLimitRule) (*ir.RateLimitRule, error) {
 				m := &ir.StringMatch{
 					Name:      header.Name,
 					SafeRegex: header.Value,
+					Invert:    header.Invert,
 				}
 				irRule.HeaderMatches = append(irRule.HeaderMatches, m)
 			case *header.Type == egv1a1.HeaderMatchDistinct && header.Value == nil:
 				m := &ir.StringMatch{
 					Name:     header.Name,
 					Distinct: true,
+					Invert:   header.Invert,
 				}
 				irRule.HeaderMatches = append(irRule.HeaderMatches, m)
 			default:
diff --git a/internal/ir/xds.go b/internal/ir/xds.go
index a40cd8547665..6f6c36100843 100644
--- a/internal/ir/xds.go
+++ b/internal/ir/xds.go
@@ -47,6 +47,7 @@ var (
 	ErrDestEndpointUDSPortInvalid              = errors.New("field Port must not be specified for Unix Domain Socket address")
 	ErrDestEndpointUDSHostInvalid              = errors.New("field Host must not be specified for Unix Domain Socket address")
 	ErrStringMatchConditionInvalid             = errors.New("only one of the Exact, Prefix, SafeRegex or Distinct fields must be set")
+	ErrStringMatchInvertDistinctInvalid        = errors.New("only one of the Invert or Distinct fields can be set")
 	ErrStringMatchNameIsEmpty                  = errors.New("field Name must be specified")
 	ErrDirectResponseStatusInvalid             = errors.New("only HTTP status codes 100 - 599 are supported for DirectResponse")
 	ErrRedirectUnsupportedStatus               = errors.New("only HTTP status codes 301 and 302 are supported for redirect filters")
@@ -1392,6 +1393,8 @@ type StringMatch struct {
 	// Distinct match condition.
 	// Used to match any and all possible unique values encountered within the Name field.
 	Distinct bool `json:"distinct" yaml:"distinct"`
+	// Invert inverts the final match decision
+	Invert *bool `json:"invert" yaml:"invert"`
 }
 
 // Validate the fields within the StringMatch structure
@@ -1414,6 +1417,9 @@ func (s StringMatch) Validate() error {
 		if s.Name == "" {
 			errs = errors.Join(errs, ErrStringMatchNameIsEmpty)
 		}
+		if s.Invert != nil && *s.Invert {
+			errs = errors.Join(errs, ErrStringMatchInvertDistinctInvalid)
+		}
 		matchCount++
 	}
 
diff --git a/internal/ir/xds_test.go b/internal/ir/xds_test.go
index 882aa090e552..d0c6fee600b3 100644
--- a/internal/ir/xds_test.go
+++ b/internal/ir/xds_test.go
@@ -1178,12 +1178,20 @@ func TestValidateStringMatch(t *testing.T) {
 		want  error
 	}{
 		{
-			name: "happy",
+			name: "happy exact",
 			input: StringMatch{
 				Exact: ptr.To("example"),
 			},
 			want: nil,
 		},
+		{
+			name: "happy distinct",
+			input: StringMatch{
+				Distinct: true,
+				Name:     "example",
+			},
+			want: nil,
+		},
 		{
 			name:  "no fields set",
 			input: StringMatch{},
@@ -1198,6 +1206,15 @@ func TestValidateStringMatch(t *testing.T) {
 			},
 			want: ErrStringMatchConditionInvalid,
 		},
+		{
+			name: "both invert and distinct fields are set",
+			input: StringMatch{
+				Distinct: true,
+				Name:     "example",
+				Invert:   ptr.To(true),
+			},
+			want: ErrStringMatchInvertDistinctInvalid,
+		},
 	}
 	for _, test := range tests {
 		t.Run(test.name, func(t *testing.T) {
diff --git a/internal/xds/translator/local_ratelimit.go b/internal/xds/translator/local_ratelimit.go
index 1503758dfb42..ba330e22034c 100644
--- a/internal/xds/translator/local_ratelimit.go
+++ b/internal/xds/translator/local_ratelimit.go
@@ -218,13 +218,17 @@ func buildRouteLocalRateLimits(local *ir.LocalRateLimit) (
 					StringMatch: buildXdsStringMatcher(match),
 				},
 			}
+			expectMatch := true
+			if match.Invert != nil && *match.Invert {
+				expectMatch = false
+			}
 			action := &routev3.RateLimit_Action{
 				ActionSpecifier: &routev3.RateLimit_Action_HeaderValueMatch_{
 					HeaderValueMatch: &routev3.RateLimit_Action_HeaderValueMatch{
 						DescriptorKey:   descriptorKey,
 						DescriptorValue: descriptorVal,
 						ExpectMatch: &wrapperspb.BoolValue{
-							Value: true,
+							Value: expectMatch,
 						},
 						Headers: []*routev3.HeaderMatcher{headerMatcher},
 					},
diff --git a/internal/xds/translator/ratelimit.go b/internal/xds/translator/ratelimit.go
index 8e3e661f9d7e..660bc2a7dec0 100644
--- a/internal/xds/translator/ratelimit.go
+++ b/internal/xds/translator/ratelimit.go
@@ -180,13 +180,17 @@ func buildRouteRateLimits(descriptorPrefix string, global *ir.GlobalRateLimit) [
 						StringMatch: buildXdsStringMatcher(match),
 					},
 				}
+				expectMatch := true
+				if match.Invert != nil && *match.Invert {
+					expectMatch = false
+				}
 				action := &routev3.RateLimit_Action{
 					ActionSpecifier: &routev3.RateLimit_Action_HeaderValueMatch_{
 						HeaderValueMatch: &routev3.RateLimit_Action_HeaderValueMatch{
 							DescriptorKey:   descriptorKey,
 							DescriptorValue: descriptorVal,
 							ExpectMatch: &wrapperspb.BoolValue{
-								Value: true,
+								Value: expectMatch,
 							},
 							Headers: []*routev3.HeaderMatcher{headerMatcher},
 						},