diff --git a/packages/sideffect/benchmarks/workflow-overhead.bench.ts b/packages/sideffect/benchmarks/workflow-overhead.bench.ts
new file mode 100644
index 0000000..4e3952c
--- /dev/null
+++ b/packages/sideffect/benchmarks/workflow-overhead.bench.ts
@@ -0,0 +1,286 @@
+import { performance } from "node:perf_hooks";
+
+import { Effect } from "effect";
+
+import { Schema, Step, Workflow, WorkflowEngine } from "../src/index.ts";
+import type { NativeWorkflowStep, WorkflowLayer } from "../src/types.ts";
+import type { WorkflowStepContext, WorkflowStepEvent } from "cloudflare:workers";
+
+interface Payload {
+  readonly id: string;
+  readonly count: number;
+}
+
+interface BenchResult {
+  readonly name: string;
+  readonly steps: number;
+  readonly samplesMs: ReadonlyArray<number>;
+  readonly medianMs: number;
+  readonly minMs: number;
+  readonly maxMs: number;
+  readonly deltaFromBaselineMs: number;
+  readonly microsecondsPerStep: number;
+}
+
+interface BenchCase {
+  readonly name: string;
+  readonly makeLayer: (steps: number) => WorkflowLayer<Payload, Payload>;
+}
+
+interface Options {
+  readonly steps: ReadonlyArray<number>;
+  readonly samples: number;
+}
+
+const payload: Payload = { id: "img_123", count: 1 };
+const payloadSchema = Schema.Struct({ id: Schema.String, count: Schema.Number });
+const workflow = Workflow.make({ name: "bench-workflow", payload: payloadSchema });
+const nativeStep = fakeNativeStep();
+
+const directStep = Step.make("direct step", {
+  payload: payloadSchema,
+  result: payloadSchema,
+  run: (input: Payload) => input,
+});
+
+const promiseStep = Step.make("promise step", {
+  payload: payloadSchema,
+  result: payloadSchema,
+  run: (input: Payload) => Promise.resolve(input),
+});
+
+const effectSucceedStep = Step.make("effect succeed step", {
+  payload: payloadSchema,
+  result: payloadSchema,
+  run: (input: Payload) => Effect.succeed(input),
+});
+
+const untraced = Effect.fnUntraced(function* (input: Payload) {
+  return yield* Effect.succeed(input);
+});
+
+const effectFnUntracedStep = Step.make("effect fn untraced step", {
+  payload: payloadSchema,
+  result: payloadSchema,
+  run: (input: Payload) => untraced(input),
+});
+
+const traced = Effect.fn("benchmark.tracedStep")((input: Payload) => Effect.succeed(input));
+
+const effectFnTracedStep = Step.make("effect fn traced step", {
+  payload: payloadSchema,
+  result: payloadSchema,
+  run: (input: Payload) => traced(input),
+});
+
+const cases: ReadonlyArray<BenchCase> = [
+  {
+    name: "sideffect-direct-struct",
+    makeLayer: (steps) => workflow.toLayer((_workflow, step) => runSteps(steps, step, directStep)),
+  },
+  {
+    name: "sideffect-promise-step",
+    makeLayer: (steps) => workflow.toLayer((_workflow, step) => runSteps(steps, step, promiseStep)),
+  },
+  {
+    name: "sideffect-effect-succeed-step",
+    makeLayer: (steps) =>
+      workflow.toLayer((_workflow, step) => runSteps(steps, step, effectSucceedStep)),
+  },
+  {
+    name: "sideffect-effect-fn-untraced-step",
+    makeLayer: (steps) =>
+      workflow.toLayer((_workflow, step) => runSteps(steps, step, effectFnUntracedStep)),
+  },
+  {
+    name: "sideffect-effect-fn-traced-step",
+    makeLayer: (steps) =>
+      workflow.toLayer((_workflow, step) => runSteps(steps, step, effectFnTracedStep)),
+  },
+  {
+    name: "sideffect-effect-workflow",
+    makeLayer: (steps) =>
+      workflow.toLayer((_workflow, step) =>
+        Effect.tryPromise({
+          try: () => runSteps(steps, step, directStep),
+          catch: (cause) => cause,
+        }),
+      ),
+  },
+  {
+    name: "sideffect-effect-per-step-wrapper",
+    makeLayer: (steps) =>
+      workflow.toLayer(async (_workflow, step) => {
+        let current = payload;
+        for (let index = 0; index < steps; index++) {
+          current = await Effect.runPromise(
+            Effect.tryPromise({
+              try: () => step.do(directStep, current),
+              catch: (cause) => cause,
+            }),
+          );
+        }
+        return current;
+      }),
+  },
+];
+
+const options = parseOptions(process.argv.slice(2));
+const results = await runBenchmarks(options);
+
+printMarkdown(results);
+console.log("\nJSON:");
+console.log(JSON.stringify(results, null, 2));
+
+async function runBenchmarks(options: Options): Promise<ReadonlyArray<BenchResult>> {
+  const results: Array<BenchResult> = [];
+
+  for (const steps of options.steps) {
+    const baseline = await runNativeBaseline(steps, options.samples);
+    results.push(baseline);
+
+    for (const benchCase of cases) {
+      results.push(await runCase(benchCase, steps, options.samples, baseline.medianMs));
+    }
+  }
+
+  return results;
+}
+
+async function runNativeBaseline(steps: number, samples: number): Promise<BenchResult> {
+  await runNativeSteps(steps);
+  const samplesMs = await sample(samples, () => runNativeSteps(steps));
+  return summarize("native-fake-baseline", steps, samplesMs, 0);
+}
+
+async function runCase(
+  benchCase: BenchCase,
+  steps: number,
+  samples: number,
+  baselineMs: number,
+): Promise<BenchResult> {
+  const layer = benchCase.makeLayer(steps);
+  await runLayer(layer);
+  const samplesMs = await sample(samples, () => runLayer(layer));
+  return summarize(benchCase.name, steps, samplesMs, baselineMs);
+}
+
+async function sample(
+  samples: number,
+  run: () => Promise<unknown>,
+): Promise<ReadonlyArray<number>> {
+  const durations: Array<number> = [];
+  for (let index = 0; index < samples; index++) {
+    const start = performance.now();
+    await run();
+    durations.push(performance.now() - start);
+  }
+  return durations;
+}
+
+function summarize(
+  name: string,
+  steps: number,
+  samplesMs: ReadonlyArray<number>,
+  baselineMs: number,
+): BenchResult {
+  const sorted = [...samplesMs].sort((left, right) => left - right);
+  const medianMs = sorted[Math.floor(sorted.length / 2)] ?? 0;
+  return {
+    name,
+    steps,
+    samplesMs,
+    medianMs,
+    minMs: sorted[0] ?? 0,
+    maxMs: sorted.at(-1) ?? 0,
+    deltaFromBaselineMs: medianMs - baselineMs,
+    microsecondsPerStep: (medianMs * 1000) / steps,
+  };
+}
+
+async function runLayer(layer: WorkflowLayer<Payload, Payload>): Promise<Payload> {
+  return WorkflowEngine.run(layer, {
+    env: {},
+    ctx: {},
+    event: {
+      payload,
+      timestamp: new Date(0),
+      instanceId: "benchmark-instance",
+      workflowName: "bench-workflow",
+    },
+    step: nativeStep,
+  });
+}
+
+async function runNativeSteps(steps: number): Promise<Payload> {
+  let current = payload;
+  for (let index = 0; index < steps; index++) {
+    current = await nativeStep.do("native step", () => current);
+  }
+  return current;
+}
+
+async function runSteps(
+  steps: number,
+  step: Parameters<WorkflowLayer<Payload, Payload>["run"]>[1],
+  stepDefinition: typeof directStep,
+): Promise<Payload> {
+  let current = payload;
+  for (let index = 0; index < steps; index++) {
+    current = await step.do(stepDefinition, current);
+  }
+  return current;
+}
+
+function fakeNativeStep(): NativeWorkflowStep {
+  return {
+    do: (async (...args: Array<unknown>) => {
+      const callback = args.find((arg) => typeof arg === "function") as (
+        context: WorkflowStepContext,
+      ) => Payload | Promise<Payload>;
+      return callback({ step: { name: String(args[0]), count: 1 }, attempt: 1, config: {} });
+    }) as NativeWorkflowStep["do"],
+    async sleep() {},
+    async sleepUntil() {},
+    waitForEvent: (async <A = unknown>(
+      _name: string,
+      eventOptions: { readonly type: string; readonly timeout?: string | number },
+    ): Promise<WorkflowStepEvent<A>> => ({
+      payload: undefined as A,
+      timestamp: new Date(0),
+      type: eventOptions.type,
+    })) as NativeWorkflowStep["waitForEvent"],
+  };
+}
+
+function parseOptions(args: ReadonlyArray<string>): Options {
+  const steps = valueFor(args, "--steps")
+    ?.split(",")
+    .map((value) => Number(value.trim()))
+    .filter((value) => Number.isInteger(value) && value > 0) ?? [1_000, 10_000];
+  const samples = Number(valueFor(args, "--samples") ?? "5");
+
+  return {
+    steps,
+    samples: Number.isInteger(samples) && samples > 0 ? samples : 5,
+  };
+}
+
+function valueFor(args: ReadonlyArray<string>, name: string): string | undefined {
+  const prefix = `${name}=`;
+  return args.find((arg) => arg.startsWith(prefix))?.slice(prefix.length);
+}
+
+function printMarkdown(results: ReadonlyArray<BenchResult>): void {
+  console.log("| steps | case | median ms | delta ms | us/step | min ms | max ms |");
+  console.log("|---:|---|---:|---:|---:|---:|---:|");
+  for (const result of results) {
+    console.log(
+      `| ${result.steps} | ${result.name} | ${format(result.medianMs)} | ${format(result.deltaFromBaselineMs)} | ${format(result.microsecondsPerStep)} | ${format(result.minMs)} | ${format(result.maxMs)} |`,
+    );
+  }
+}
+
+function format(value: number): string {
+  return value.toFixed(3);
+}
diff --git a/packages/sideffect/package.json b/packages/sideffect/package.json
index e867444..7cf5252 100644
--- a/packages/sideffect/package.json
+++ b/packages/sideffect/package.json
@@ -27,6 +27,7 @@
   },
   "scripts": {
     "build": "vp pack",
+    "bench:workflow-overhead": "bun benchmarks/workflow-overhead.bench.ts",
     "dev": "vp pack --watch",
     "test": "vp test",
     "check": "vp check",
diff --git a/packages/sideffect/src/runtime.ts b/packages/sideffect/src/runtime.ts
index de025f3..4b00237 100644
--- a/packages/sideffect/src/runtime.ts
+++ b/packages/sideffect/src/runtime.ts
@@ -4,6 +4,8 @@ import { makeNonRetryableError } from "./errors.ts";
 import type { NonRetryableErrorConstructor } from "./errors.ts";
 import type { MaybeEffect } from "./types.ts";
 
+const schemaDecoders = new WeakMap<object, (value: unknown) => unknown>();
+
 /** @internal Runtime options used when converting expected failures. */
 export interface RuntimeErrorOptions {
   /** Optional native Cloudflare `NonRetryableError` constructor. */
@@ -28,7 +30,7 @@ export function decodeWithSchema<A>(
   options: RuntimeErrorOptions = {},
 ): A {
   try {
-    return Schema.decodeUnknownSync(schema as never)(value) as A;
+    return decoderFor(schema)(value) as A;
   } catch (cause) {
     throw makeNonRetryableError(
       `${operation} failed because the value did not match its schema. The workflow will not retry this invalid input. Cause: ${String(cause)}`,
@@ -36,3 +38,14 @@ export function decodeWithSchema<A>(
     );
   }
 }
+
+function decoderFor<A>(schema: Schema.Schema<A>): (value: unknown) => A {
+  const cached = schemaDecoders.get(schema);
+  if (cached) {
+    return cached as (value: unknown) => A;
+  }
+
+  const decoder = Schema.decodeUnknownSync(schema as never) as (value: unknown) => A;
+  schemaDecoders.set(schema, decoder);
+  return decoder;
+}
diff --git a/packages/sideffect/tests/index.test.ts b/packages/sideffect/tests/index.test.ts
index 5613092..89b0963 100644
--- a/packages/sideffect/tests/index.test.ts
+++ b/packages/sideffect/tests/index.test.ts
@@ -299,6 +299,26 @@ test("workflow engine accepts Effect workflow bodies and preserves catchTag", as
   ).rejects.toBeInstanceOf(NonRetryableError);
 });
 
+test("workflow engine accepts Effect step bodies", async () => {
+  const effectStep = Step.make("effect step", {
+    payload: Schema.Struct({ imageId: Schema.String }),
+    result: Schema.Struct({ id: Schema.String }),
+    run: ({ imageId }) => Effect.succeed({ id: imageId }),
+  });
+  const layer = imageWorkflow.toLayer(async (workflow, step) => {
+    return step.do(effectStep, { imageId: workflow.payload.imageId });
+  });
+
+  await expect(
+    WorkflowEngine.run(layer, {
+      env: {},
+      ctx: {},
+      event: fakeWorkflowEvent({ imageId: "img_123" }),
+      step: fakeNativeStep(),
+    }),
+  ).resolves.toEqual({ id: "img_123" });
+});
+
 test("step.do forwards Cloudflare retry and timeout options", async () => {
   const calls: Array<unknown> = [];
   const layer = imageWorkflow.toLayer(async (workflow, step) => {
@@ -509,6 +529,42 @@ test("rollback handlers receive context and forward rollback config", async () =
   ]);
 });
 
+test("rollback handlers may return Effects", async () => {
+  const rollbacks: Array<string> = [];
+  const stepWithEffectRollback = Step.make("step with effect rollback", {
+    payload: Schema.String,
+    result: Schema.String,
+    run: (value) => value,
+  }).pipe(
+    Rollback.with((result) =>
+      Effect.sync(() => {
+        rollbacks.push(`rolled back:${result}`);
+      }),
+    ),
+  );
+  const layer = imageWorkflow.toLayer(async (_workflow, step) => {
+    return step.do(stepWithEffectRollback, "value");
+  });
+  const calls: Array<unknown> = [];
+
+  await WorkflowEngine.run(layer, {
+    env: {},
+    ctx: {},
+    event: fakeWorkflowEvent({ imageId: "img_123" }),
+    step: fakeNativeStep(calls),
+  });
+
+  const rollbackOptions = (calls[0] as Array<unknown>)[1] as {
+    readonly rollback: (context: {
+      readonly output: string;
+      readonly error: Error;
+    }) => Promise<void>;
+  };
+  await rollbackOptions.rollback({ output: "value", error: new Error("rollback") });
+
+  expect(rollbacks).toEqual(["rolled back:value"]);
+});
+
 test("sleep, sleepUntil, and waitForEvent delegate to native WorkflowStep", async () => {
   const calls: Array<unknown> = [];
   const date = new Date(0);