The emotional value of a stimulus shapes decision-making and drives strategic behavioral choices. This value depends on the context in which a stimulus is encountered and can be altered by internal motivational states as well as learned associations. However, due to environmental complexity, stimuli can take different emotional values in different contexts, meaning that decision-related representations must be dynamically updated to maximize positive outcomes while avoiding negative ones. This strategic flexibility relies strongly on prefrontal-cortex (PFC), with its ventral sub-division thought to regulate emotions and its dorsal sub-division implicated in decision-making. Although this points to PFC as the locus for incorporating emotional value into strategic action choices, a circuit-based understanding of how the PFC integrates emotional-value into decision-making processes remains elusive. To address this question, we made Neuropixels recordings in PFC while mice performed a virtual-reality-based decision-making task. Mice were trained to turn towards a reinforced visual stimulus to get a reward in one context, but to turn away from it in a second context to avoid a punishment. In each context, the mouse can alternatively choose to approach a non-reinforced visual stimulus. Our findings indicate that reward devaluation or extinction of punishment associations lead to decreased performance and a selective shift in the behavioral strategy toward the non-reinforced or the reinforced cue, respectively. Strategy shifts seem to be associated with specific PFC circuit dynamics, suggesting that emotional value-based representations are dynamically updated based on comparing the marginal value of stimulus-associated rewards with the strength of aversive associations across contexts.