diff --git a/A111-xds-authority-literal-rewrite.md b/A111-xds-authority-literal-rewrite.md
new file mode 100644
index 000000000..29ad2ba8e
--- /dev/null
+++ b/A111-xds-authority-literal-rewrite.md
@@ -0,0 +1,123 @@
+Title
+----
+* Author(s): Zhiyan Foo, Antoine Tollenaere
+* Approver: TBD
+* Status: Draft
+* Implemented in: Go
+* Last updated: 2026-01-15
+* Discussion at: TBD (filled after thread exists)
+
+## Abstract
+
+Implement the [`host_rewrite_literal`][envoy-host_rewrite_literal] route_action
+feature in gRPC xDS client, enabling explicit authority header rewrites. This
+will be conditioned on `trusted_xds_server` as described in [gRFC A81][A81].
+
+## Background
+
+gRPC xDS currently supports `auto_host_rewrite` as per [gRFC A81][A81] but lacks
+`host_rewrite_literal` support, useful when a single cluster targets a reverse
+proxy routing based on the authority header.
+
+```
+            +------------------+
+            |  gRPC xDS Client |  <- (RDS configuration sets `host_rewrite_literal` to
+            +------------------+      target one of Svc A/B/C)
+                     |
+                     |    <- (gRPC xDS client reuses the same CDS target for all connections to
+                     |        the proxy)
+                 +---------+
+                 |  Proxy  |
+                 +---------+
+                      |   <- (Proxy routing logic based on Authority header)
+      .---------------+--------------.
+     /                |               \
++--------+       +--------+       +--------+
+| Svc A  |       | Svc B  |       | Svc C  |
++--------+       +--------+       +--------+
+```
+
+### Related Proposals:
+* [gRFC A29: xDS-Based Security for gRPC Clients and Servers][A29]
+* [gRFC A81: xDS Authority Rewriting][A81]
+* [gRFC A86: xDS-Based HTTP CONNECT][A86]
+
+## Proposal
+
+This proposal has the following parts:
+
+- xDS resource unmarshalling: We will retrieve the `host_rewrite_literal` value
+  from RDS and return that information to the XdsClient watchers as part of the
+  parsed resources.
+
+- xDS ConfigSelector: the xDS ConfigSelector will enable authority rewriting
+  based on the chosen route.
+
+- xds_cluster_impl LB policy: The LB policy will perform the authority
+  rewriting if it was enabled by the ConfigSelector using the mechanism
+  introduced in [A81] for authority rewriting.
+
+### xDS Resource Validation
+
+When validating an RDS resource, if the `trusted_xds_server` server option is
+present for this xDS server in the bootstrap config, we will look at the
+[envoy-host_rewrite_literal] field. The string value of this field will be
+included in the parsed resource struct that is passed to the XdsClient watcher.
+If `trusted_xds_server` is unset, the field will be set to the empty string.
+
+### xDS ConfigSelector Changes
+
+When the xDS ConfigSelector performs routing, it will need to pass the values of
+the route's `host_rewrite_literal` field to the LB picker. This data will be
+passed using the mechanism used to handle `auto_host_rewrite` in [A81].
+
+### xds_cluster_impl LB Policy Changes
+
+In the xds_cluster_impl picker, if the `host_rewrite_literal` field is not empty
+in the route, the picker will set the `:authority` header to the value of the
+field attribute, as described in [A81].
+
+The `:authority` header is subject to the same secure naming checks defined in
+[A81].
+
+### Precedence rules
+
+Because `host_rewrite_literal` and `auto_host_rewrite` are part of the same
+`host_rewrite_specifier` oneof, those fields cannot collide and there is no
+precedence rule to define. If users set a per-call `:authority` explicitly, it
+will take precedence over the value in `host_rewrite_literal`. This matches the
+behavior implemented for `auto_host_rewrite`.
+
+## Temporary environment variable protection
+
+Feature guarded by `GRPC_EXPERIMENTAL_XDS_LITERAL_AUTHORITY_REWRITE` env var,
+disabled by default. The env var guard will be removed once the feature passes
+interop tests.
+
+
+## Rationale
+
+Alternative approaches considered.
+- Exclusively use the existing [`auto_host_rewrite`][route_action] feature. This would require a
+  CDS cluster per upstream target, which means that there would be one connection per service
+  behind the proxy between each gRPC clients and the proxy.
+- Using the HTTP CONNECT protocol has the same drawback in that connections to the proxy that
+  target different upstream services won't reuse the same connection.
+   - in the case where instead of a single proxy in between the client and target upstream
+     service there are two proxies (e.g. client -> egress proxy -> ingress proxy -> svc), this
+     would not only prevent connection reuse between the initial client to the proxy, but also
+     between the intermediary proxies (e.g. between the egress and ingress proxy).
+
+Even if connection pooling was not a major concern, this addition will bring gRPC xDS client
+functionality closer to parity with Envoy's capabilities, simplifying configurations for users
+migrating to or using both systems concurrently.
+
+## Implementation
+
+[Go implementation](https://github.com/grpc/grpc-go/pull/8838).
+
+[A29]: A29-xds-tls-security.md
+[A81]: A81-xds-authority-rewriting.md
+[A86]: https://github.com/grpc/proposal/pull/455
+[envoy-host_rewrite_literal]: https://www.envoyproxy.io/docs/envoy/latest/api-v3/config/route/v3/route_components.proto#envoy-v3-api-field-config-route-v3-routeaction-host-rewrite-literal
+[route_action]: https://www.envoyproxy.io/docs/envoy/latest/api-v3/config/route/v3/route_components.proto