diff --git a/.changeset/spotty-shrimps-hug.md b/.changeset/spotty-shrimps-hug.md
new file mode 100644
index 000000000000..7ddfdf518bc4
--- /dev/null
+++ b/.changeset/spotty-shrimps-hug.md
@@ -0,0 +1,5 @@
+---
+'svelte': patch
+---
+
+feat: single-pass hydration
diff --git a/packages/svelte/scripts/check-treeshakeability.js b/packages/svelte/scripts/check-treeshakeability.js
index 7b9fb816beb3..90d5ab022c7e 100644
--- a/packages/svelte/scripts/check-treeshakeability.js
+++ b/packages/svelte/scripts/check-treeshakeability.js
@@ -113,7 +113,7 @@ const bundle = await bundle_code(
 	).js.code
 );
 
-if (!bundle.includes('hydrate_nodes') && !bundle.includes('hydrate_anchor')) {
+if (!bundle.includes('hydrate_node') && !bundle.includes('hydrate_next')) {
 	// eslint-disable-next-line no-console
 	console.error(`✅ Hydration code treeshakeable`);
 } else {
diff --git a/packages/svelte/src/compiler/phases/3-transform/client/visitors/template.js b/packages/svelte/src/compiler/phases/3-transform/client/visitors/template.js
index deaf7dd20853..0de47791afb0 100644
--- a/packages/svelte/src/compiler/phases/3-transform/client/visitors/template.js
+++ b/packages/svelte/src/compiler/phases/3-transform/client/visitors/template.js
@@ -980,7 +980,8 @@ function serialize_inline_component(node, component_name, context, anchor = cont
 
 		statements.push(
 			b.stmt(b.call('$.css_props', anchor, b.thunk(b.object(custom_css_props)))),
-			b.stmt(fn(b.member(anchor, b.id('lastChild'))))
+			b.stmt(fn(b.member(anchor, b.id('lastChild')))),
+			b.stmt(b.call('$.reset', anchor))
 		);
 	} else {
 		context.state.template.push('<!>');
@@ -1441,6 +1442,12 @@ function process_children(nodes, expression, is_element, { visit, state }) {
 	}
 
 	if (sequence.length > 0) {
+		// if the final item in a fragment is static text,
+		// we need to force `hydrate_node` to advance
+		if (sequence.length === 1 && sequence[0].type === 'Text' && nodes.length > 1) {
+			state.init.push(b.stmt(b.call('$.next')));
+		}
+
 		flush_sequence(sequence);
 	}
 }
@@ -1569,7 +1576,7 @@ export const template_visitors = {
 
 		const namespace = infer_namespace(context.state.metadata.namespace, parent, node.nodes);
 
-		const { hoisted, trimmed, is_standalone } = clean_nodes(
+		const { hoisted, trimmed, is_standalone, is_text_first } = clean_nodes(
 			parent,
 			node.nodes,
 			context.path,
@@ -1619,6 +1626,11 @@ export const template_visitors = {
 			context.visit(node, state);
 		}
 
+		if (is_text_first) {
+			// skip over inserted comment
+			body.push(b.stmt(b.call('$.next')));
+		}
+
 		/**
 		 * @param {import('estree').Identifier} template_name
 		 * @param {import('estree').Expression[]} args
@@ -1677,11 +1689,7 @@ export const template_visitors = {
 					state
 				});
 
-				body.push(
-					b.var(id, b.call('$.text', b.id('$$anchor'))),
-					...state.before_init,
-					...state.init
-				);
+				body.push(b.var(id, b.call('$.text')), ...state.before_init, ...state.init);
 				close = b.stmt(b.call('$.append', b.id('$$anchor'), id));
 			} else {
 				if (is_standalone) {
@@ -1689,8 +1697,7 @@ export const template_visitors = {
 					process_children(trimmed, () => b.id('$$anchor'), false, { ...context, state });
 				} else {
 					/** @type {(is_text: boolean) => import('estree').Expression} */
-					const expression = (is_text) =>
-						is_text ? b.call('$.first_child', id, b.true) : b.call('$.first_child', id);
+					const expression = (is_text) => b.call('$.first_child', id, is_text && b.true);
 
 					process_children(trimmed, expression, false, { ...context, state });
 
@@ -2180,18 +2187,30 @@ export const template_visitors = {
 			context.visit(node, child_state);
 		}
 
-		process_children(
-			trimmed,
-			() =>
-				b.call(
-					'$.child',
-					node.name === 'template'
-						? b.member(context.state.node, b.id('content'))
-						: context.state.node
-				),
-			true,
-			{ ...context, state: child_state }
-		);
+		/** @type {import('estree').Expression} */
+		let arg = context.state.node;
+
+		// If `hydrate_node` is set inside the element, we need to reset it
+		// after the element has been hydrated
+		let needs_reset = trimmed.some((node) => node.type !== 'Text');
+
+		// The same applies if it's a `<template>` element, since we need to
+		// set the value of `hydrate_node` to `node.content`
+		if (node.name === 'template') {
+			needs_reset = true;
+
+			arg = b.member(arg, b.id('content'));
+			child_state.init.push(b.stmt(b.call('$.reset', arg)));
+		}
+
+		process_children(trimmed, () => b.call('$.child', arg), true, {
+			...context,
+			state: child_state
+		});
+
+		if (needs_reset) {
+			child_state.init.push(b.stmt(b.call('$.reset', context.state.node)));
+		}
 
 		if (has_declaration) {
 			context.state.init.push(
diff --git a/packages/svelte/src/compiler/phases/3-transform/server/transform-server.js b/packages/svelte/src/compiler/phases/3-transform/server/transform-server.js
index d5c9c790b710..9359f967dfd2 100644
--- a/packages/svelte/src/compiler/phases/3-transform/server/transform-server.js
+++ b/packages/svelte/src/compiler/phases/3-transform/server/transform-server.js
@@ -33,16 +33,21 @@ import {
 import { escape_html } from '../../../../escaping.js';
 import { sanitize_template_string } from '../../../utils/sanitize_template_string.js';
 import {
-	BLOCK_ANCHOR,
+	EMPTY_COMMENT,
 	BLOCK_CLOSE,
-	BLOCK_CLOSE_ELSE,
-	BLOCK_OPEN
+	BLOCK_OPEN,
+	BLOCK_OPEN_ELSE
 } from '../../../../internal/server/hydration.js';
 import { filename, locator } from '../../../state.js';
 
-export const block_open = b.literal(BLOCK_OPEN);
-export const block_close = b.literal(BLOCK_CLOSE);
-export const block_anchor = b.literal(BLOCK_ANCHOR);
+/** Opens an if/each block, so that we can remove nodes in the case of a mismatch */
+const block_open = b.literal(BLOCK_OPEN);
+
+/** Closes an if/each block, so that we can remove nodes in the case of a mismatch. Also serves as an anchor for these blocks */
+const block_close = b.literal(BLOCK_CLOSE);
+
+/** Empty comment to keep text nodes separate, or provide an anchor node for blocks */
+const empty_comment = b.literal(EMPTY_COMMENT);
 
 /**
  * @param {import('estree').Node} node
@@ -996,22 +1001,32 @@ function serialize_inline_component(node, expression, context) {
 		statement = b.block([...snippet_declarations, statement]);
 	}
 
+	const dynamic =
+		node.type === 'SvelteComponent' || (node.type === 'Component' && node.metadata.dynamic);
+
 	if (custom_css_props.length > 0) {
-		statement = b.stmt(
-			b.call(
-				'$.css_props',
-				b.id('$$payload'),
-				b.literal(context.state.namespace === 'svg' ? false : true),
-				b.object(custom_css_props),
-				b.thunk(b.block([statement]))
+		context.state.template.push(
+			b.stmt(
+				b.call(
+					'$.css_props',
+					b.id('$$payload'),
+					b.literal(context.state.namespace === 'svg' ? false : true),
+					b.object(custom_css_props),
+					b.thunk(b.block([statement])),
+					dynamic && b.true
+				)
 			)
 		);
+	} else {
+		if (dynamic) {
+			context.state.template.push(empty_comment);
+		}
 
 		context.state.template.push(statement);
-	} else if (context.state.skip_hydration_boundaries) {
-		context.state.template.push(statement);
-	} else {
-		context.state.template.push(block_open, statement, block_close);
+
+		if (!context.state.skip_hydration_boundaries) {
+			context.state.template.push(empty_comment);
+		}
 	}
 }
 
@@ -1119,7 +1134,7 @@ const template_visitors = {
 		const parent = context.path.at(-1) ?? node;
 		const namespace = infer_namespace(context.state.namespace, parent, node.nodes);
 
-		const { hoisted, trimmed, is_standalone } = clean_nodes(
+		const { hoisted, trimmed, is_standalone, is_text_first } = clean_nodes(
 			parent,
 			node.nodes,
 			context.path,
@@ -1142,13 +1157,18 @@ const template_visitors = {
 			context.visit(node, state);
 		}
 
+		if (is_text_first) {
+			// insert `<!---->` to prevent this from being glued to the previous fragment
+			state.template.push(empty_comment);
+		}
+
 		process_children(trimmed, { ...context, state });
 
 		return b.block([...state.init, ...serialize_template(state.template)]);
 	},
 	HtmlTag(node, context) {
 		const expression = /** @type {import('estree').Expression} */ (context.visit(node.expression));
-		context.state.template.push(block_open, expression, block_close);
+		context.state.template.push(empty_comment, expression, empty_comment);
 	},
 	ConstTag(node, { state, visit }) {
 		const declaration = node.declaration.declarations[0];
@@ -1188,10 +1208,6 @@ const template_visitors = {
 			return /** @type {import('estree').Expression} */ (context.visit(arg));
 		});
 
-		if (!context.state.skip_hydration_boundaries) {
-			context.state.template.push(block_open);
-		}
-
 		context.state.template.push(
 			b.stmt(
 				(node.expression.type === 'CallExpression' ? b.call : b.maybe_call)(
@@ -1203,7 +1219,7 @@ const template_visitors = {
 		);
 
 		if (!context.state.skip_hydration_boundaries) {
-			context.state.template.push(block_close);
+			context.state.template.push(empty_comment);
 		}
 	},
 	ClassDirective() {
@@ -1353,7 +1369,6 @@ const template_visitors = {
 	},
 	EachBlock(node, context) {
 		const state = context.state;
-		state.template.push(block_open);
 
 		const each_node_meta = node.metadata;
 		const collection = /** @type {import('estree').Expression} */ (context.visit(node.expression));
@@ -1376,12 +1391,8 @@ const template_visitors = {
 			each.push(b.let(node.index, index));
 		}
 
-		each.push(b.stmt(b.assignment('+=', b.id('$$payload.out'), b.literal(BLOCK_OPEN))));
-
 		each.push(.../** @type {import('estree').BlockStatement} */ (context.visit(node.body)).body);
 
-		each.push(b.stmt(b.assignment('+=', b.id('$$payload.out'), b.literal(BLOCK_CLOSE))));
-
 		const for_loop = b.for(
 			b.let(index, b.literal(0)),
 			b.binary('<', index, b.member(array_id, b.id('length'))),
@@ -1389,26 +1400,27 @@ const template_visitors = {
 			b.block(each)
 		);
 
-		const close = b.stmt(b.assignment('+=', b.id('$$payload.out'), b.literal(BLOCK_CLOSE)));
-
 		if (node.fallback) {
+			const open = b.stmt(b.assignment('+=', b.id('$$payload.out'), block_open));
+
 			const fallback = /** @type {import('estree').BlockStatement} */ (
 				context.visit(node.fallback)
 			);
 
-			fallback.body.push(
-				b.stmt(b.assignment('+=', b.id('$$payload.out'), b.literal(BLOCK_CLOSE_ELSE)))
+			fallback.body.unshift(
+				b.stmt(b.assignment('+=', b.id('$$payload.out'), b.literal(BLOCK_OPEN_ELSE)))
 			);
 
 			state.template.push(
 				b.if(
 					b.binary('!==', b.member(array_id, b.id('length')), b.literal(0)),
-					b.block([for_loop, close]),
+					b.block([open, for_loop]),
 					fallback
-				)
+				),
+				block_close
 			);
 		} else {
-			state.template.push(for_loop, close);
+			state.template.push(block_open, for_loop, block_close);
 		}
 	},
 	IfBlock(node, context) {
@@ -1422,16 +1434,17 @@ const template_visitors = {
 			? /** @type {import('estree').BlockStatement} */ (context.visit(node.alternate))
 			: b.block([]);
 
-		consequent.body.push(b.stmt(b.assignment('+=', b.id('$$payload.out'), b.literal(BLOCK_CLOSE))));
-		alternate.body.push(
-			b.stmt(b.assignment('+=', b.id('$$payload.out'), b.literal(BLOCK_CLOSE_ELSE)))
+		consequent.body.unshift(b.stmt(b.assignment('+=', b.id('$$payload.out'), block_open)));
+
+		alternate.body.unshift(
+			b.stmt(b.assignment('+=', b.id('$$payload.out'), b.literal(BLOCK_OPEN_ELSE)))
 		);
 
-		context.state.template.push(block_open, b.if(test, consequent, alternate));
+		context.state.template.push(b.if(test, consequent, alternate), block_close);
 	},
 	AwaitBlock(node, context) {
 		context.state.template.push(
-			block_open,
+			empty_comment,
 			b.stmt(
 				b.call(
 					'$.await',
@@ -1455,12 +1468,12 @@ const template_visitors = {
 					)
 				)
 			),
-			block_close
+			empty_comment
 		);
 	},
 	KeyBlock(node, context) {
 		const block = /** @type {import('estree').BlockStatement} */ (context.visit(node.fragment));
-		context.state.template.push(block_open, block, block_close);
+		context.state.template.push(empty_comment, block, empty_comment);
 	},
 	SnippetBlock(node, context) {
 		const fn = b.function_declaration(
@@ -1594,7 +1607,7 @@ const template_visitors = {
 
 		const slot = b.call('$.slot', b.id('$$payload'), expression, props_expression, fallback);
 
-		context.state.template.push(block_open, b.stmt(slot), block_close);
+		context.state.template.push(empty_comment, b.stmt(slot), empty_comment);
 	},
 	SvelteHead(node, context) {
 		const block = /** @type {import('estree').BlockStatement} */ (context.visit(node.fragment));
diff --git a/packages/svelte/src/compiler/phases/3-transform/utils.js b/packages/svelte/src/compiler/phases/3-transform/utils.js
index 4eeeeed03895..c396c5d7530e 100644
--- a/packages/svelte/src/compiler/phases/3-transform/utils.js
+++ b/packages/svelte/src/compiler/phases/3-transform/utils.js
@@ -270,21 +270,28 @@ export function clean_nodes(
 
 	var first = trimmed[0];
 
-	/**
-	 * In a case like `{#if x}<Foo />{/if}`, we don't need to wrap the child in
-	 * comments — we can just use the parent block's anchor for the component.
-	 * TODO extend this optimisation to other cases
-	 */
-	const is_standalone =
-		trimmed.length === 1 &&
-		((first.type === 'RenderTag' && !first.metadata.dynamic) ||
-			(first.type === 'Component' &&
-				!state.options.hmr &&
-				!first.attributes.some(
-					(attribute) => attribute.type === 'Attribute' && attribute.name.startsWith('--')
-				)));
-
-	return { hoisted, trimmed, is_standalone };
+	return {
+		hoisted,
+		trimmed,
+		/**
+		 * In a case like `{#if x}<Foo />{/if}`, we don't need to wrap the child in
+		 * comments — we can just use the parent block's anchor for the component.
+		 * TODO extend this optimisation to other cases
+		 */
+		is_standalone:
+			trimmed.length === 1 &&
+			((first.type === 'RenderTag' && !first.metadata.dynamic) ||
+				(first.type === 'Component' &&
+					!state.options.hmr &&
+					!first.attributes.some(
+						(attribute) => attribute.type === 'Attribute' && attribute.name.startsWith('--')
+					))),
+		/** if a component or snippet starts with text, we need to add an anchor comment so that its text node doesn't get fused with its surroundings */
+		is_text_first:
+			(parent.type === 'Fragment' || parent.type === 'SnippetBlock') &&
+			first &&
+			(first?.type === 'Text' || first?.type === 'ExpressionTag')
+	};
 }
 
 /**
diff --git a/packages/svelte/src/constants.js b/packages/svelte/src/constants.js
index 619a83562d58..6f5b03ec38c1 100644
--- a/packages/svelte/src/constants.js
+++ b/packages/svelte/src/constants.js
@@ -20,9 +20,9 @@ export const TEMPLATE_FRAGMENT = 1;
 export const TEMPLATE_USE_IMPORT_NODE = 1 << 1;
 
 export const HYDRATION_START = '[';
+/** used to indicate that an `{:else}...` block was rendered */
+export const HYDRATION_START_ELSE = '[!';
 export const HYDRATION_END = ']';
-export const HYDRATION_ANCHOR = '';
-export const HYDRATION_END_ELSE = `${HYDRATION_END}!`; // used to indicate that an `{:else}...` block was rendered
 export const HYDRATION_ERROR = {};
 
 export const ELEMENT_IS_NAMESPACED = 1;
diff --git a/packages/svelte/src/internal/client/dev/elements.js b/packages/svelte/src/internal/client/dev/elements.js
index 14713736ade3..bf75e6e5ccef 100644
--- a/packages/svelte/src/internal/client/dev/elements.js
+++ b/packages/svelte/src/internal/client/dev/elements.js
@@ -1,5 +1,5 @@
 /** @import { SourceLocation } from '#shared' */
-import { HYDRATION_END, HYDRATION_START } from '../../../constants.js';
+import { HYDRATION_END, HYDRATION_START, HYDRATION_START_ELSE } from '../../../constants.js';
 import { hydrating } from '../dom/hydration.js';
 
 /**
@@ -47,7 +47,7 @@ function assign_locations(node, filename, locations) {
 	while (node && i < locations.length) {
 		if (hydrating && node.nodeType === 8) {
 			var comment = /** @type {Comment} */ (node);
-			if (comment.data === HYDRATION_START) depth += 1;
+			if (comment.data === HYDRATION_START || comment.data === HYDRATION_START_ELSE) depth += 1;
 			else if (comment.data[0] === HYDRATION_END) depth -= 1;
 		}
 
diff --git a/packages/svelte/src/internal/client/dom/blocks/await.js b/packages/svelte/src/internal/client/dom/blocks/await.js
index 22cf23828566..547717666041 100644
--- a/packages/svelte/src/internal/client/dom/blocks/await.js
+++ b/packages/svelte/src/internal/client/dom/blocks/await.js
@@ -12,7 +12,7 @@ import {
 import { block, branch, pause_effect, resume_effect } from '../../reactivity/effects.js';
 import { DEV } from 'esm-env';
 import { queue_micro_task } from '../task.js';
-import { hydrating } from '../hydration.js';
+import { hydrate_next, hydrate_node, hydrating } from '../hydration.js';
 import { mutable_source, set, source } from '../../reactivity/sources.js';
 
 const PENDING = 0;
@@ -21,14 +21,19 @@ const CATCH = 2;
 
 /**
  * @template V
- * @param {TemplateNode} anchor
+ * @param {TemplateNode} node
  * @param {(() => Promise<V>)} get_input
  * @param {null | ((anchor: Node) => void)} pending_fn
  * @param {null | ((anchor: Node, value: Source<V>) => void)} then_fn
  * @param {null | ((anchor: Node, error: unknown) => void)} catch_fn
  * @returns {void}
  */
-export function await_block(anchor, get_input, pending_fn, then_fn, catch_fn) {
+export function await_block(node, get_input, pending_fn, then_fn, catch_fn) {
+	if (hydrating) {
+		hydrate_next();
+	}
+
+	var anchor = node;
 	var runes = is_runes();
 	var component_context = current_component_context;
 
@@ -147,4 +152,8 @@ export function await_block(anchor, get_input, pending_fn, then_fn, catch_fn) {
 		// teardown function is an easy way to ensure that this is not discarded
 		return noop;
 	});
+
+	if (hydrating) {
+		anchor = hydrate_node;
+	}
 }
diff --git a/packages/svelte/src/internal/client/dom/blocks/css-props.js b/packages/svelte/src/internal/client/dom/blocks/css-props.js
index 8cae0c652636..c5d63fc9a6ae 100644
--- a/packages/svelte/src/internal/client/dom/blocks/css-props.js
+++ b/packages/svelte/src/internal/client/dom/blocks/css-props.js
@@ -1,6 +1,6 @@
 /** @import { TemplateNode } from '#client' */
-import { hydrating, set_hydrate_nodes } from '../hydration.js';
 import { render_effect, teardown } from '../../reactivity/effects.js';
+import { hydrate_node, hydrating, set_hydrate_node } from '../hydration.js';
 
 /**
  * @param {HTMLDivElement | SVGGElement} element
@@ -9,7 +9,7 @@ import { render_effect, teardown } from '../../reactivity/effects.js';
  */
 export function css_props(element, get_styles) {
 	if (hydrating) {
-		set_hydrate_nodes(/** @type {TemplateNode[]} */ ([...element.childNodes]).slice(0, -1));
+		set_hydrate_node(/** @type {TemplateNode} */ (element.firstChild));
 	}
 
 	render_effect(() => {
diff --git a/packages/svelte/src/internal/client/dom/blocks/each.js b/packages/svelte/src/internal/client/dom/blocks/each.js
index 2e274d1b03b4..2faca068b4fc 100644
--- a/packages/svelte/src/internal/client/dom/blocks/each.js
+++ b/packages/svelte/src/internal/client/dom/blocks/each.js
@@ -1,3 +1,4 @@
+/** @import { TemplateNode } from '#client' */
 import {
 	EACH_INDEX_REACTIVE,
 	EACH_IS_ANIMATED,
@@ -5,18 +6,18 @@ import {
 	EACH_IS_STRICT_EQUALS,
 	EACH_ITEM_REACTIVE,
 	EACH_KEYED,
-	HYDRATION_END_ELSE,
-	HYDRATION_START
+	HYDRATION_END,
+	HYDRATION_START_ELSE
 } from '../../../../constants.js';
 import {
-	hydrate_anchor,
-	hydrate_nodes,
-	hydrate_start,
+	hydrate_next,
+	hydrate_node,
 	hydrating,
+	remove_nodes,
+	set_hydrate_node,
 	set_hydrating
 } from '../hydration.js';
 import { clear_text_content, empty } from '../operations.js';
-import { remove } from '../reconciler.js';
 import {
 	block,
 	branch,
@@ -96,7 +97,7 @@ function pause_effects(state, items, controlled_anchor, items_map) {
 
 /**
  * @template V
- * @param {Element | Comment} anchor The next sibling node, or the parent node if this is a 'controlled' block
+ * @param {Element | Comment} node The next sibling node, or the parent node if this is a 'controlled' block
  * @param {number} flags
  * @param {() => V[]} get_collection
  * @param {(value: V, index: number) => any} get_key
@@ -104,22 +105,26 @@ function pause_effects(state, items, controlled_anchor, items_map) {
  * @param {null | ((anchor: Node) => void)} fallback_fn
  * @returns {void}
  */
-export function each(anchor, flags, get_collection, get_key, render_fn, fallback_fn = null) {
+export function each(node, flags, get_collection, get_key, render_fn, fallback_fn = null) {
+	var anchor = node;
+
 	/** @type {import('#client').EachState} */
 	var state = { flags, items: new Map(), first: null };
 
 	var is_controlled = (flags & EACH_IS_CONTROLLED) !== 0;
 
 	if (is_controlled) {
-		var parent_node = /** @type {Element} */ (anchor);
+		var parent_node = /** @type {Element} */ (node);
 
 		anchor = hydrating
-			? /** @type {Comment | Text} */ (
-					hydrate_anchor(/** @type {Comment | Text} */ (parent_node.firstChild))
-				)
+			? set_hydrate_node(/** @type {Comment | Text} */ (parent_node.firstChild))
 			: parent_node.appendChild(empty());
 	}
 
+	if (hydrating) {
+		hydrate_next();
+	}
+
 	/** @type {import('#client').Effect | null} */
 	var fallback = null;
 
@@ -155,11 +160,13 @@ export function each(anchor, flags, get_collection, get_key, render_fn, fallback
 		let mismatch = false;
 
 		if (hydrating) {
-			var is_else = /** @type {Comment} */ (anchor).data === HYDRATION_END_ELSE;
+			var is_else = /** @type {Comment} */ (anchor).data === HYDRATION_START_ELSE;
 
-			if (is_else !== (length === 0) || hydrate_start === undefined) {
+			if (is_else !== (length === 0)) {
 				// hydration mismatch — remove the server-rendered DOM and start over
-				remove(hydrate_nodes);
+				anchor = remove_nodes();
+
+				set_hydrate_node(anchor);
 				set_hydrating(false);
 				mismatch = true;
 			}
@@ -167,9 +174,6 @@ export function each(anchor, flags, get_collection, get_key, render_fn, fallback
 
 		// this is separate to the previous block because `hydrating` might change
 		if (hydrating) {
-			/** @type {Node} */
-			var child_anchor = hydrate_start;
-
 			/** @type {import('#client').EachItem | null} */
 			var prev = null;
 
@@ -178,33 +182,28 @@ export function each(anchor, flags, get_collection, get_key, render_fn, fallback
 
 			for (var i = 0; i < length; i++) {
 				if (
-					child_anchor.nodeType !== 8 ||
-					/** @type {Comment} */ (child_anchor).data !== HYDRATION_START
+					hydrate_node.nodeType === 8 &&
+					/** @type {Comment} */ (hydrate_node).data === HYDRATION_END
 				) {
-					// If `nodes` is null, then that means that the server rendered fewer items than what
-					// expected, so break out and continue appending non-hydrated items
+					// The server rendered fewer items than expected,
+					// so break out and continue appending non-hydrated items
+					anchor = /** @type {Comment} */ (hydrate_node);
 					mismatch = true;
 					set_hydrating(false);
 					break;
 				}
 
-				child_anchor = hydrate_anchor(child_anchor);
 				var value = array[i];
 				var key = get_key(value, i);
-				item = create_item(child_anchor, state, prev, null, value, key, i, render_fn, flags);
+				item = create_item(hydrate_node, state, prev, null, value, key, i, render_fn, flags);
 				state.items.set(key, item);
-				child_anchor = /** @type {Comment} */ (child_anchor.nextSibling);
 
 				prev = item;
 			}
 
 			// remove excess nodes
 			if (length > 0) {
-				while (child_anchor !== anchor) {
-					var next = /** @type {import('#client').TemplateNode} */ (child_anchor.nextSibling);
-					/** @type {import('#client').TemplateNode} */ (child_anchor).remove();
-					child_anchor = next;
-				}
+				set_hydrate_node(remove_nodes());
 			}
 		}
 
@@ -231,6 +230,10 @@ export function each(anchor, flags, get_collection, get_key, render_fn, fallback
 			set_hydrating(true);
 		}
 	});
+
+	if (hydrating) {
+		anchor = hydrate_node;
+	}
 }
 
 /**
diff --git a/packages/svelte/src/internal/client/dom/blocks/html.js b/packages/svelte/src/internal/client/dom/blocks/html.js
index 220e44794849..4d0fc38e6796 100644
--- a/packages/svelte/src/internal/client/dom/blocks/html.js
+++ b/packages/svelte/src/internal/client/dom/blocks/html.js
@@ -1,17 +1,21 @@
 /** @import { Effect, TemplateNode } from '#client' */
+import { HYDRATION_ERROR } from '../../../../constants.js';
 import { block, branch, destroy_effect } from '../../reactivity/effects.js';
-import { get_start, hydrate_nodes, hydrating } from '../hydration.js';
+import { hydrate_next, hydrate_node, hydrating, set_hydrate_node } from '../hydration.js';
 import { create_fragment_from_html } from '../reconciler.js';
 import { assign_nodes } from '../template.js';
+import * as w from '../../warnings.js';
 
 /**
- * @param {Element | Text | Comment} anchor
+ * @param {Element | Text | Comment} node
  * @param {() => string} get_value
  * @param {boolean} svg
  * @param {boolean} mathml
  * @returns {void}
  */
-export function html(anchor, get_value, svg, mathml) {
+export function html(node, get_value, svg, mathml) {
+	var anchor = node;
+
 	var value = '';
 
 	/** @type {Effect | null} */
@@ -29,7 +33,24 @@ export function html(anchor, get_value, svg, mathml) {
 
 		effect = branch(() => {
 			if (hydrating) {
-				assign_nodes(get_start(), hydrate_nodes[hydrate_nodes.length - 1]);
+				var next = hydrate_next();
+				var last = next;
+
+				while (
+					next !== null &&
+					(next.nodeType !== 8 || /** @type {Comment} */ (next).data !== '')
+				) {
+					last = next;
+					next = /** @type {TemplateNode} */ (next.nextSibling);
+				}
+
+				if (next === null) {
+					w.hydration_mismatch();
+					throw HYDRATION_ERROR;
+				}
+
+				assign_nodes(hydrate_node, last);
+				anchor = set_hydrate_node(next);
 				return;
 			}
 
diff --git a/packages/svelte/src/internal/client/dom/blocks/if.js b/packages/svelte/src/internal/client/dom/blocks/if.js
index 80ed8c09f4f6..dc3ffbd72d44 100644
--- a/packages/svelte/src/internal/client/dom/blocks/if.js
+++ b/packages/svelte/src/internal/client/dom/blocks/if.js
@@ -1,24 +1,31 @@
+/** @import { TemplateNode } from '#client' */
 import { EFFECT_TRANSPARENT } from '../../constants.js';
-import { hydrate_nodes, hydrating, set_hydrating } from '../hydration.js';
-import { remove } from '../reconciler.js';
+import {
+	hydrate_next,
+	hydrate_node,
+	hydrating,
+	remove_nodes,
+	set_hydrate_node,
+	set_hydrating
+} from '../hydration.js';
 import { block, branch, pause_effect, resume_effect } from '../../reactivity/effects.js';
-import { HYDRATION_END_ELSE } from '../../../../constants.js';
+import { HYDRATION_START_ELSE } from '../../../../constants.js';
 
 /**
- * @param {Comment} anchor
+ * @param {TemplateNode} node
  * @param {() => boolean} get_condition
  * @param {(anchor: Node) => import('#client').Dom} consequent_fn
  * @param {null | ((anchor: Node) => import('#client').Dom)} [alternate_fn]
  * @param {boolean} [elseif] True if this is an `{:else if ...}` block rather than an `{#if ...}`, as that affects which transitions are considered 'local'
  * @returns {void}
  */
-export function if_block(
-	anchor,
-	get_condition,
-	consequent_fn,
-	alternate_fn = null,
-	elseif = false
-) {
+export function if_block(node, get_condition, consequent_fn, alternate_fn = null, elseif = false) {
+	if (hydrating) {
+		hydrate_next();
+	}
+
+	var anchor = node;
+
 	/** @type {import('#client').Effect | null} */
 	var consequent_effect = null;
 
@@ -37,12 +44,14 @@ export function if_block(
 		let mismatch = false;
 
 		if (hydrating) {
-			const is_else = anchor.data === HYDRATION_END_ELSE;
+			const is_else = /** @type {Comment} */ (anchor).data === HYDRATION_START_ELSE;
 
 			if (condition === is_else) {
 				// Hydration mismatch: remove everything inside the anchor and start fresh.
 				// This could happen with `{#if browser}...{/if}`, for example
-				remove(hydrate_nodes);
+				anchor = remove_nodes();
+
+				set_hydrate_node(anchor);
 				set_hydrating(false);
 				mismatch = true;
 			}
@@ -79,4 +88,8 @@ export function if_block(
 			set_hydrating(true);
 		}
 	}, flags);
+
+	if (hydrating) {
+		anchor = hydrate_node;
+	}
 }
diff --git a/packages/svelte/src/internal/client/dom/blocks/key.js b/packages/svelte/src/internal/client/dom/blocks/key.js
index 489262b71477..04b8ab403f00 100644
--- a/packages/svelte/src/internal/client/dom/blocks/key.js
+++ b/packages/svelte/src/internal/client/dom/blocks/key.js
@@ -1,21 +1,28 @@
-/** @import { Dom, Effect } from '#client' */
+/** @import { Effect, TemplateNode } from '#client' */
 import { UNINITIALIZED } from '../../../../constants.js';
 import { block, branch, pause_effect } from '../../reactivity/effects.js';
 import { safe_not_equal } from '../../reactivity/equality.js';
+import { hydrate_next, hydrate_node, hydrating } from '../hydration.js';
 
 /**
  * @template V
- * @param {Comment} anchor
+ * @param {TemplateNode} node
  * @param {() => V} get_key
- * @param {(anchor: Node) => Dom | void} render_fn
+ * @param {(anchor: Node) => TemplateNode | void} render_fn
  * @returns {void}
  */
-export function key_block(anchor, get_key, render_fn) {
+export function key_block(node, get_key, render_fn) {
+	if (hydrating) {
+		hydrate_next();
+	}
+
+	var anchor = node;
+
 	/** @type {V | typeof UNINITIALIZED} */
-	let key = UNINITIALIZED;
+	var key = UNINITIALIZED;
 
 	/** @type {Effect} */
-	let effect;
+	var effect;
 
 	block(() => {
 		if (safe_not_equal(key, (key = get_key()))) {
@@ -26,4 +33,8 @@ export function key_block(anchor, get_key, render_fn) {
 			effect = branch(() => render_fn(anchor));
 		}
 	});
+
+	if (hydrating) {
+		anchor = hydrate_node;
+	}
 }
diff --git a/packages/svelte/src/internal/client/dom/blocks/slot.js b/packages/svelte/src/internal/client/dom/blocks/slot.js
index 6ef1885e007c..c4ed14200b52 100644
--- a/packages/svelte/src/internal/client/dom/blocks/slot.js
+++ b/packages/svelte/src/internal/client/dom/blocks/slot.js
@@ -1,3 +1,5 @@
+import { hydrate_next, hydrating } from '../hydration.js';
+
 /**
  * @param {Comment} anchor
  * @param {void | ((anchor: Comment, slot_props: Record<string, unknown>) => void)} slot_fn
@@ -5,6 +7,10 @@
  * @param {null | ((anchor: Comment) => void)} fallback_fn
  */
 export function slot(anchor, slot_fn, slot_props, fallback_fn) {
+	if (hydrating) {
+		hydrate_next();
+	}
+
 	if (slot_fn === undefined) {
 		if (fallback_fn !== null) {
 			fallback_fn(anchor);
diff --git a/packages/svelte/src/internal/client/dom/blocks/snippet.js b/packages/svelte/src/internal/client/dom/blocks/snippet.js
index b962b7b84ce6..c0fc350ce45c 100644
--- a/packages/svelte/src/internal/client/dom/blocks/snippet.js
+++ b/packages/svelte/src/internal/client/dom/blocks/snippet.js
@@ -6,15 +6,18 @@ import {
 	dev_current_component_function,
 	set_dev_current_component_function
 } from '../../runtime.js';
+import { hydrate_node, hydrating } from '../hydration.js';
 
 /**
  * @template {(node: TemplateNode, ...args: any[]) => void} SnippetFn
- * @param {TemplateNode} anchor
+ * @param {TemplateNode} node
  * @param {() => SnippetFn | null | undefined} get_snippet
  * @param {(() => any)[]} args
  * @returns {void}
  */
-export function snippet(anchor, get_snippet, ...args) {
+export function snippet(node, get_snippet, ...args) {
+	var anchor = node;
+
 	/** @type {SnippetFn | null | undefined} */
 	var snippet;
 
@@ -33,6 +36,10 @@ export function snippet(anchor, get_snippet, ...args) {
 			snippet_effect = branch(() => /** @type {SnippetFn} */ (snippet)(anchor, ...args));
 		}
 	}, EFFECT_TRANSPARENT);
+
+	if (hydrating) {
+		anchor = hydrate_node;
+	}
 }
 
 /**
diff --git a/packages/svelte/src/internal/client/dom/blocks/svelte-component.js b/packages/svelte/src/internal/client/dom/blocks/svelte-component.js
index 9a4f6db33408..1c7106bb7f5f 100644
--- a/packages/svelte/src/internal/client/dom/blocks/svelte-component.js
+++ b/packages/svelte/src/internal/client/dom/blocks/svelte-component.js
@@ -1,20 +1,27 @@
 /** @import { TemplateNode, Dom, Effect } from '#client' */
 import { block, branch, pause_effect } from '../../reactivity/effects.js';
+import { hydrate_next, hydrate_node, hydrating } from '../hydration.js';
 
 /**
  * @template P
  * @template {(props: P) => void} C
- * @param {TemplateNode} anchor
+ * @param {TemplateNode} node
  * @param {() => C} get_component
  * @param {(anchor: TemplateNode, component: C) => Dom | void} render_fn
  * @returns {void}
  */
-export function component(anchor, get_component, render_fn) {
+export function component(node, get_component, render_fn) {
+	if (hydrating) {
+		hydrate_next();
+	}
+
+	var anchor = node;
+
 	/** @type {C} */
-	let component;
+	var component;
 
 	/** @type {Effect | null} */
-	let effect;
+	var effect;
 
 	block(() => {
 		if (component === (component = get_component())) return;
@@ -28,4 +35,8 @@ export function component(anchor, get_component, render_fn) {
 			effect = branch(() => render_fn(anchor, component));
 		}
 	});
+
+	if (hydrating) {
+		anchor = hydrate_node;
+	}
 }
diff --git a/packages/svelte/src/internal/client/dom/blocks/svelte-element.js b/packages/svelte/src/internal/client/dom/blocks/svelte-element.js
index 428f7a5ca48b..1df6c8acabab 100644
--- a/packages/svelte/src/internal/client/dom/blocks/svelte-element.js
+++ b/packages/svelte/src/internal/client/dom/blocks/svelte-element.js
@@ -1,5 +1,12 @@
+/** @import { Effect, EffectNodes, TemplateNode } from '#client' */
 import { namespace_svg } from '../../../../constants.js';
-import { hydrating, set_hydrate_nodes } from '../hydration.js';
+import {
+	hydrate_next,
+	hydrate_node,
+	hydrating,
+	set_hydrate_node,
+	set_hydrating
+} from '../hydration.js';
 import { empty } from '../operations.js';
 import {
 	block,
@@ -10,10 +17,10 @@ import {
 } from '../../reactivity/effects.js';
 import { set_should_intro } from '../../render.js';
 import { current_each_item, set_current_each_item } from './each.js';
-import { current_component_context } from '../../runtime.js';
+import { current_component_context, current_effect } from '../../runtime.js';
 import { DEV } from 'esm-env';
-import { assign_nodes } from '../template.js';
 import { EFFECT_TRANSPARENT } from '../../constants.js';
+import { assign_nodes } from '../template.js';
 
 /**
  * @param {Comment | Element} node
@@ -25,36 +32,43 @@ import { EFFECT_TRANSPARENT } from '../../constants.js';
  * @returns {void}
  */
 export function element(node, get_tag, is_svg, render_fn, get_namespace, location) {
-	const filename = DEV && location && current_component_context?.function.filename;
+	let was_hydrating = hydrating;
+
+	if (hydrating) {
+		hydrate_next();
+	}
+
+	var filename = DEV && location && current_component_context?.function.filename;
 
 	/** @type {string | null} */
-	let tag;
+	var tag;
 
 	/** @type {string | null} */
-	let current_tag;
+	var current_tag;
 
 	/** @type {null | Element} */
-	let element = hydrating && node.nodeType === 1 ? /** @type {Element} */ (node) : null;
+	var element = null;
+
+	if (hydrating && hydrate_node.nodeType === 1) {
+		element = /** @type {Element} */ (hydrate_node);
+		hydrate_next();
+	}
 
-	let anchor = /** @type {Comment} */ (hydrating && element ? element.nextSibling : node);
+	var anchor = /** @type {TemplateNode} */ (hydrating ? hydrate_node : node);
 
-	/** @type {import('#client').Effect | null} */
-	let effect;
+	/** @type {Effect | null} */
+	var effect;
 
 	/**
 	 * The keyed `{#each ...}` item block, if any, that this element is inside.
 	 * We track this so we can set it when changing the element, allowing any
 	 * `animate:` directive to bind itself to the correct block
 	 */
-	let each_item_block = current_each_item;
+	var each_item_block = current_each_item;
 
 	block(() => {
 		const next_tag = get_tag() || null;
-		const ns = get_namespace
-			? get_namespace()
-			: is_svg || next_tag === 'svg'
-				? namespace_svg
-				: null;
+		var ns = get_namespace ? get_namespace() : is_svg || next_tag === 'svg' ? namespace_svg : null;
 
 		// Assumption: Noone changes the namespace but not the tag (what would that even mean?)
 		if (next_tag === tag) return;
@@ -88,8 +102,6 @@ export function element(node, get_tag, is_svg, render_fn, get_namespace, locatio
 						? document.createElementNS(ns, next_tag)
 						: document.createElement(next_tag);
 
-				assign_nodes(element, element);
-
 				if (DEV && location) {
 					// @ts-expect-error
 					element.__svelte_meta = {
@@ -101,15 +113,21 @@ export function element(node, get_tag, is_svg, render_fn, get_namespace, locatio
 					};
 				}
 
+				assign_nodes(element, element);
+
 				if (render_fn) {
 					// If hydrating, use the existing ssr comment as the anchor so that the
 					// inner open and close methods can pick up the existing nodes correctly
-					var child_anchor = hydrating ? element.lastChild : element.appendChild(empty());
-
-					if (hydrating && child_anchor) {
-						set_hydrate_nodes(
-							/** @type {import('#client').TemplateNode[]} */ ([...element.childNodes]).slice(0, -1)
-						);
+					var child_anchor = /** @type {TemplateNode} */ (
+						hydrating ? element.firstChild : element.appendChild(empty())
+					);
+
+					if (hydrating) {
+						if (child_anchor === null) {
+							set_hydrating(false);
+						} else {
+							set_hydrate_node(child_anchor);
+						}
 					}
 
 					// `child_anchor` is undefined if this is a void element, but we still
@@ -119,6 +137,9 @@ export function element(node, get_tag, is_svg, render_fn, get_namespace, locatio
 					render_fn(element, child_anchor);
 				}
 
+				// we do this after calling `render_fn` so that child effects don't override `nodes.end`
+				/** @type {Effect & { nodes: EffectNodes }} */ (current_effect).nodes.end = element;
+
 				anchor.before(element);
 			});
 		}
@@ -129,4 +150,9 @@ export function element(node, get_tag, is_svg, render_fn, get_namespace, locatio
 
 		set_current_each_item(previous_each_item);
 	}, EFFECT_TRANSPARENT);
+
+	if (was_hydrating) {
+		set_hydrating(true);
+		set_hydrate_node(anchor);
+	}
 }
diff --git a/packages/svelte/src/internal/client/dom/blocks/svelte-head.js b/packages/svelte/src/internal/client/dom/blocks/svelte-head.js
index f25ecefa0334..bfd429172841 100644
--- a/packages/svelte/src/internal/client/dom/blocks/svelte-head.js
+++ b/packages/svelte/src/internal/client/dom/blocks/svelte-head.js
@@ -1,8 +1,9 @@
-import { hydrate_anchor, hydrate_nodes, hydrating, set_hydrate_nodes } from '../hydration.js';
+/** @import { TemplateNode } from '#client' */
+import { hydrate_node, hydrating, set_hydrate_node } from '../hydration.js';
 import { empty } from '../operations.js';
 import { block } from '../../reactivity/effects.js';
-import { HYDRATION_END, HYDRATION_START } from '../../../../constants.js';
 import { HEAD_EFFECT } from '../../constants.js';
+import { HYDRATION_START } from '../../../../constants.js';
 
 /**
  * @type {Node | undefined}
@@ -14,35 +15,34 @@ export function reset_head_anchor() {
 }
 
 /**
- * @param {(anchor: Node) => import('#client').Dom | void} render_fn
+ * @param {(anchor: Node) => void} render_fn
  * @returns {void}
  */
 export function head(render_fn) {
 	// The head function may be called after the first hydration pass and ssr comment nodes may still be present,
 	// therefore we need to skip that when we detect that we're not in hydration mode.
-	let previous_hydrate_nodes = null;
+	let previous_hydrate_node = null;
 	let was_hydrating = hydrating;
 
 	/** @type {Comment | Text} */
 	var anchor;
 
 	if (hydrating) {
-		previous_hydrate_nodes = hydrate_nodes;
+		previous_hydrate_node = hydrate_node;
 
 		// There might be multiple head blocks in our app, so we need to account for each one needing independent hydration.
 		if (head_anchor === undefined) {
-			head_anchor = /** @type {import('#client').TemplateNode} */ (document.head.firstChild);
+			head_anchor = /** @type {TemplateNode} */ (document.head.firstChild);
 		}
 
 		while (
 			head_anchor.nodeType !== 8 ||
 			/** @type {Comment} */ (head_anchor).data !== HYDRATION_START
 		) {
-			head_anchor = /** @type {import('#client').TemplateNode} */ (head_anchor.nextSibling);
+			head_anchor = /** @type {TemplateNode} */ (head_anchor.nextSibling);
 		}
 
-		head_anchor = /** @type {import('#client').TemplateNode} */ (hydrate_anchor(head_anchor));
-		head_anchor = /** @type {import('#client').TemplateNode} */ (head_anchor.nextSibling);
+		head_anchor = set_hydrate_node(/** @type {TemplateNode} */ (head_anchor.nextSibling));
 	} else {
 		anchor = document.head.appendChild(empty());
 	}
@@ -51,7 +51,7 @@ export function head(render_fn) {
 		block(() => render_fn(anchor), HEAD_EFFECT);
 	} finally {
 		if (was_hydrating) {
-			set_hydrate_nodes(/** @type {import('#client').TemplateNode[]} */ (previous_hydrate_nodes));
+			set_hydrate_node(/** @type {TemplateNode} */ (previous_hydrate_node));
 		}
 	}
 }
diff --git a/packages/svelte/src/internal/client/dom/hydration.js b/packages/svelte/src/internal/client/dom/hydration.js
index 02d07be057d1..8b03fe7f9eb6 100644
--- a/packages/svelte/src/internal/client/dom/hydration.js
+++ b/packages/svelte/src/internal/client/dom/hydration.js
@@ -1,6 +1,6 @@
-import { DEV } from 'esm-env';
-import { HYDRATION_END, HYDRATION_START, HYDRATION_ERROR } from '../../../constants.js';
-import * as w from '../warnings.js';
+/** @import { TemplateNode } from '#client' */
+
+import { HYDRATION_END, HYDRATION_START, HYDRATION_START_ELSE } from '../../../constants.js';
 
 /**
  * Use this variable to guard everything related to hydration code so it can be treeshaken out
@@ -14,86 +14,57 @@ export function set_hydrating(value) {
 }
 
 /**
- * Array of nodes to traverse for hydration. This will be null if we're not hydrating, but for
- * the sake of simplicity we're not going to use `null` checks everywhere and instead rely on
- * the `hydrating` flag to tell whether or not we're in hydration mode at which point this is set.
- * @type {import('#client').TemplateNode[]}
+ * The node that is currently being hydrated. This starts out as the first node inside the opening
+ * <!--[--> comment, and updates each time a component calls `$.child(...)` or `$.sibling(...)`.
+ * When entering a block (e.g. `{#if ...}`), `hydrate_node` is the block opening comment; by the
+ * time we leave the block it is the closing comment, which serves as the block's anchor.
+ * @type {TemplateNode}
  */
-export let hydrate_nodes = /** @type {any} */ (null);
-
-/** @type {import('#client').TemplateNode} */
-export let hydrate_start;
+export let hydrate_node;
 
-/** @param {import('#client').TemplateNode[]} nodes */
-export function set_hydrate_nodes(nodes) {
-	hydrate_nodes = nodes;
-	hydrate_start = nodes && nodes[0];
+/** @param {TemplateNode} node */
+export function set_hydrate_node(node) {
+	return (hydrate_node = node);
 }
 
-/**
- * When assigning nodes to an effect during hydration, we typically want the hydration boundary comment node
- * immediately before `hydrate_start`. In some cases, this comment doesn't exist because we optimized it away.
- * TODO it might be worth storing this value separately rather than retrieving it with `previousSibling`
- */
-export function get_start() {
-	return /** @type {import('#client').TemplateNode} */ (
-		hydrate_start.previousSibling ?? hydrate_start
-	);
+export function hydrate_next() {
+	return (hydrate_node = /** @type {TemplateNode} */ (hydrate_node.nextSibling));
 }
 
-/**
- * This function is only called when `hydrating` is true. If passed a `<!--[-->` opening
- * hydration marker, it finds the corresponding closing marker and sets `hydrate_nodes`
- * to everything between the markers, before returning the closing marker.
- * @param {Node} node
- * @returns {Node}
- */
-export function hydrate_anchor(node) {
-	if (node.nodeType !== 8) {
-		return node;
+/** @param {TemplateNode} node */
+export function reset(node) {
+	if (hydrating) {
+		hydrate_node = node;
 	}
+}
 
-	var current = /** @type {Node | null} */ (node);
-
-	// TODO this could have false positives, if a user comment consisted of `[`. need to tighten that up
-	if (/** @type {Comment} */ (current).data !== HYDRATION_START) {
-		return node;
+export function next() {
+	if (hydrating) {
+		hydrate_next();
 	}
+}
 
-	/** @type {Node[]} */
-	var nodes = [];
+/**
+ * Removes all nodes starting at `hydrate_node` up until the next hydration end comment
+ */
+export function remove_nodes() {
 	var depth = 0;
+	var node = hydrate_node;
 
-	while ((current = /** @type {Node} */ (current).nextSibling) !== null) {
-		if (current.nodeType === 8) {
-			var data = /** @type {Comment} */ (current).data;
-
-			if (data === HYDRATION_START) {
-				depth += 1;
-			} else if (data[0] === HYDRATION_END) {
-				if (depth === 0) {
-					hydrate_nodes = /** @type {import('#client').TemplateNode[]} */ (nodes);
-					hydrate_start = /** @type {import('#client').TemplateNode} */ (nodes[0]);
-					return current;
-				}
+	while (true) {
+		if (node.nodeType === 8) {
+			var data = /** @type {Comment} */ (node).data;
 
+			if (data === HYDRATION_END) {
+				if (depth === 0) return node;
 				depth -= 1;
+			} else if (data === HYDRATION_START || data === HYDRATION_START_ELSE) {
+				depth += 1;
 			}
 		}
 
-		nodes.push(current);
+		var next = /** @type {TemplateNode} */ (node.nextSibling);
+		node.remove();
+		node = next;
 	}
-
-	let location;
-
-	if (DEV) {
-		// @ts-expect-error
-		const loc = node.parentNode?.__svelte_meta?.loc;
-		if (loc) {
-			location = `${loc.file}:${loc.line}:${loc.column}`;
-		}
-	}
-
-	w.hydration_mismatch(location);
-	throw HYDRATION_ERROR;
 }
diff --git a/packages/svelte/src/internal/client/dom/operations.js b/packages/svelte/src/internal/client/dom/operations.js
index 175719f66c70..c1eb66305349 100644
--- a/packages/svelte/src/internal/client/dom/operations.js
+++ b/packages/svelte/src/internal/client/dom/operations.js
@@ -1,8 +1,8 @@
-import { hydrate_anchor, hydrate_start, hydrating } from './hydration.js';
+/** @import { Effect, TemplateNode } from '#client' */
+import { hydrate_node, hydrating, set_hydrate_node } from './hydration.js';
 import { DEV } from 'esm-env';
 import { init_array_prototype_warnings } from '../dev/equality.js';
 import { current_effect } from '../runtime.js';
-import { HYDRATION_ANCHOR } from '../../../constants.js';
 
 // export these for reference in the compiled code, making global name deduplication unnecessary
 /** @type {Window} */
@@ -58,19 +58,23 @@ export function empty() {
  */
 /*#__NO_SIDE_EFFECTS__*/
 export function child(node) {
-	const child = node.firstChild;
-	if (!hydrating) return child;
+	if (!hydrating) {
+		return node.firstChild;
+	}
+
+	var child = /** @type {TemplateNode} */ (hydrate_node.firstChild);
 
 	// Child can be null if we have an element with a single child, like `<p>{text}</p>`, where `text` is empty
 	if (child === null) {
-		return node.appendChild(empty());
+		child = hydrate_node.appendChild(empty());
 	}
 
-	return hydrate_anchor(child);
+	set_hydrate_node(child);
+	return child;
 }
 
 /**
- * @param {DocumentFragment | import('#client').TemplateNode[]} fragment
+ * @param {DocumentFragment | TemplateNode[]} fragment
  * @param {boolean} is_text
  * @returns {Node | null}
  */
@@ -88,19 +92,15 @@ export function first_child(fragment, is_text) {
 
 	// if an {expression} is empty during SSR, there might be no
 	// text node to hydrate — we must therefore create one
-	if (is_text && hydrate_start?.nodeType !== 3) {
+	if (is_text && hydrate_node?.nodeType !== 3) {
 		var text = empty();
-		var effect = /** @type {import('#client').Effect} */ (current_effect);
-
-		if (effect.nodes?.start === hydrate_start) {
-			effect.nodes.start = text;
-		}
 
-		hydrate_start?.before(text);
+		hydrate_node?.before(text);
+		set_hydrate_node(text);
 		return text;
 	}
 
-	return hydrate_anchor(hydrate_start);
+	return hydrate_node;
 }
 
 /**
@@ -111,27 +111,25 @@ export function first_child(fragment, is_text) {
  */
 /*#__NO_SIDE_EFFECTS__*/
 export function sibling(node, is_text = false) {
-	var next_sibling = /** @type {import('#client').TemplateNode} */ (node.nextSibling);
-
 	if (!hydrating) {
-		return next_sibling;
+		return /** @type {TemplateNode} */ (node.nextSibling);
 	}
 
-	var type = next_sibling.nodeType;
+	var next_sibling = /** @type {TemplateNode} */ (hydrate_node.nextSibling);
 
-	if (type === 8 && /** @type {Comment} */ (next_sibling).data === HYDRATION_ANCHOR) {
-		return sibling(next_sibling, is_text);
-	}
+	var type = next_sibling.nodeType;
 
 	// if a sibling {expression} is empty during SSR, there might be no
 	// text node to hydrate — we must therefore create one
 	if (is_text && type !== 3) {
 		var text = empty();
 		next_sibling?.before(text);
+		set_hydrate_node(text);
 		return text;
 	}
 
-	return hydrate_anchor(/** @type {Node} */ (next_sibling));
+	set_hydrate_node(next_sibling);
+	return /** @type {TemplateNode} */ (next_sibling);
 }
 
 /**
diff --git a/packages/svelte/src/internal/client/dom/reconciler.js b/packages/svelte/src/internal/client/dom/reconciler.js
index 5b9f246ed338..9897e08d5314 100644
--- a/packages/svelte/src/internal/client/dom/reconciler.js
+++ b/packages/svelte/src/internal/client/dom/reconciler.js
@@ -1,24 +1,6 @@
-import { is_array } from '../utils.js';
-
 /** @param {string} html */
 export function create_fragment_from_html(html) {
 	var elem = document.createElement('template');
 	elem.innerHTML = html;
 	return elem.content;
 }
-
-/**
- * @param {import('#client').Dom} current
- */
-export function remove(current) {
-	if (is_array(current)) {
-		for (var i = 0; i < current.length; i++) {
-			var node = current[i];
-			if (node.isConnected) {
-				node.remove();
-			}
-		}
-	} else if (current.isConnected) {
-		current.remove();
-	}
-}
diff --git a/packages/svelte/src/internal/client/dom/template.js b/packages/svelte/src/internal/client/dom/template.js
index ab7c57fa71dc..3ef0b181b7b5 100644
--- a/packages/svelte/src/internal/client/dom/template.js
+++ b/packages/svelte/src/internal/client/dom/template.js
@@ -1,4 +1,5 @@
-import { get_start, hydrate_nodes, hydrate_start, hydrating } from './hydration.js';
+/** @import { Effect, EffectNodes, TemplateNode } from '#client' */
+import { hydrate_next, hydrate_node, hydrating, set_hydrate_node } from './hydration.js';
 import { empty } from './operations.js';
 import { create_fragment_from_html } from './reconciler.js';
 import { current_effect } from '../runtime.js';
@@ -6,11 +7,11 @@ import { TEMPLATE_FRAGMENT, TEMPLATE_USE_IMPORT_NODE } from '../../../constants.
 import { queue_micro_task } from './task.js';
 
 /**
- * @param {import('#client').TemplateNode} start
- * @param {import('#client').TemplateNode} end
+ * @param {TemplateNode} start
+ * @param {TemplateNode | null} end
  */
 export function assign_nodes(start, end) {
-	/** @type {import('#client').Effect} */ (current_effect).nodes ??= { start, end };
+	/** @type {Effect} */ (current_effect).nodes ??= { start, end };
 }
 
 /**
@@ -34,9 +35,8 @@ export function template(content, flags) {
 
 	return () => {
 		if (hydrating) {
-			assign_nodes(get_start(), hydrate_nodes[hydrate_nodes.length - 1]);
-
-			return hydrate_start;
+			assign_nodes(hydrate_node, null);
+			return hydrate_node;
 		}
 
 		if (!node) {
@@ -44,13 +44,13 @@ export function template(content, flags) {
 			if (!is_fragment) node = /** @type {Node} */ (node.firstChild);
 		}
 
-		var clone = /** @type {import('#client').TemplateNode} */ (
+		var clone = /** @type {TemplateNode} */ (
 			use_import_node ? document.importNode(node, true) : node.cloneNode(true)
 		);
 
 		if (is_fragment) {
-			var start = /** @type {import('#client').TemplateNode} */ (clone.firstChild);
-			var end = /** @type {import('#client').TemplateNode} */ (clone.lastChild);
+			var start = /** @type {TemplateNode} */ (clone.firstChild);
+			var end = /** @type {TemplateNode} */ (clone.lastChild);
 
 			assign_nodes(start, end);
 		} else {
@@ -107,9 +107,8 @@ export function ns_template(content, flags, ns = 'svg') {
 
 	return () => {
 		if (hydrating) {
-			assign_nodes(get_start(), hydrate_nodes[hydrate_nodes.length - 1]);
-
-			return hydrate_start;
+			assign_nodes(hydrate_node, null);
+			return hydrate_node;
 		}
 
 		if (!node) {
@@ -126,11 +125,11 @@ export function ns_template(content, flags, ns = 'svg') {
 			}
 		}
 
-		var clone = /** @type {import('#client').TemplateNode} */ (node.cloneNode(true));
+		var clone = /** @type {TemplateNode} */ (node.cloneNode(true));
 
 		if (is_fragment) {
-			var start = /** @type {import('#client').TemplateNode} */ (clone.firstChild);
-			var end = /** @type {import('#client').TemplateNode} */ (clone.lastChild);
+			var start = /** @type {TemplateNode} */ (clone.firstChild);
+			var end = /** @type {TemplateNode} */ (clone.lastChild);
 
 			assign_nodes(start, end);
 		} else {
@@ -195,6 +194,7 @@ function run_scripts(node) {
 		}
 
 		clone.textContent = script.textContent;
+
 		// If node === script tag, replaceWith will do nothing because there's no parent yet,
 		// waiting until that's the case using an effect solves this.
 		// Don't do it in other circumstances or we could accidentally execute scripts
@@ -207,23 +207,20 @@ function run_scripts(node) {
 	}
 }
 
-/**
- * @param {Text | Comment | Element} anchor
- */
 /*#__NO_SIDE_EFFECTS__*/
-export function text(anchor) {
+export function text() {
 	if (!hydrating) {
 		var t = empty();
 		assign_nodes(t, t);
 		return t;
 	}
 
-	var node = hydrate_start;
+	var node = hydrate_node;
 
-	if (!node) {
-		// if an {expression} is empty during SSR, `hydrate_nodes` will be empty.
-		// we need to insert an empty text node
-		anchor.before((node = empty()));
+	if (node.nodeType !== 3) {
+		// if an {expression} is empty during SSR, we need to insert an empty text node
+		node.before((node = empty()));
+		set_hydrate_node(node);
 	}
 
 	assign_nodes(node, node);
@@ -233,9 +230,8 @@ export function text(anchor) {
 export function comment() {
 	// we're not delegating to `template` here for performance reasons
 	if (hydrating) {
-		assign_nodes(get_start(), hydrate_nodes[hydrate_nodes.length - 1]);
-
-		return hydrate_start;
+		assign_nodes(hydrate_node, null);
+		return hydrate_node;
 	}
 
 	var frag = document.createDocumentFragment();
@@ -255,10 +251,16 @@ export function comment() {
  * @param {DocumentFragment | Element} dom
  */
 export function append(anchor, dom) {
-	if (hydrating) return;
-	// We intentionally do not assign the `dom` property of the effect here because it's far too
-	// late. If we try, we will capture additional DOM elements that we cannot control the lifecycle
-	// for and will inevitably cause memory leaks. See https://github.com/sveltejs/svelte/pull/11832
+	if (hydrating) {
+		/** @type {Effect & { nodes: EffectNodes }} */ (current_effect).nodes.end = hydrate_node;
+		hydrate_next();
+		return;
+	}
+
+	if (anchor === null) {
+		// edge case — void `<svelte:element>` with content
+		return;
+	}
 
 	anchor.before(/** @type {Node} */ (dom));
 }
diff --git a/packages/svelte/src/internal/client/index.js b/packages/svelte/src/internal/client/index.js
index 4575f75f0dc8..3231b5f5d1dd 100644
--- a/packages/svelte/src/internal/client/index.js
+++ b/packages/svelte/src/internal/client/index.js
@@ -63,6 +63,7 @@ export {
 	bind_focused
 } from './dom/elements/bindings/universal.js';
 export { bind_window_scroll, bind_window_size } from './dom/elements/bindings/window.js';
+export { next, reset } from './dom/hydration.js';
 export {
 	once,
 	preventDefault,
diff --git a/packages/svelte/src/internal/client/reactivity/types.d.ts b/packages/svelte/src/internal/client/reactivity/types.d.ts
index abc2be90154c..1e347c011f0f 100644
--- a/packages/svelte/src/internal/client/reactivity/types.d.ts
+++ b/packages/svelte/src/internal/client/reactivity/types.d.ts
@@ -36,7 +36,7 @@ export interface Derived<V = unknown> extends Value<V>, Reaction {
 
 export interface EffectNodes {
 	start: TemplateNode;
-	end: TemplateNode;
+	end: null | TemplateNode;
 }
 
 export interface Effect extends Reaction {
diff --git a/packages/svelte/src/internal/client/render.js b/packages/svelte/src/internal/client/render.js
index 7dfa69585162..b6cdd8303c45 100644
--- a/packages/svelte/src/internal/client/render.js
+++ b/packages/svelte/src/internal/client/render.js
@@ -1,12 +1,18 @@
 import { DEV } from 'esm-env';
 import { clear_text_content, empty, init_operations } from './dom/operations.js';
-import { HYDRATION_ERROR, HYDRATION_START, PassiveDelegatedEvents } from '../../constants.js';
-import { flush_sync, push, pop, current_component_context } from './runtime.js';
+import {
+	HYDRATION_END,
+	HYDRATION_ERROR,
+	HYDRATION_START,
+	PassiveDelegatedEvents
+} from '../../constants.js';
+import { flush_sync, push, pop, current_component_context, current_effect } from './runtime.js';
 import { effect_root, branch } from './reactivity/effects.js';
 import {
-	hydrate_anchor,
-	hydrate_nodes,
-	set_hydrate_nodes,
+	hydrate_next,
+	hydrate_node,
+	hydrating,
+	set_hydrate_node,
 	set_hydrating
 } from './dom/hydration.js';
 import { array_from } from './utils.js';
@@ -15,6 +21,7 @@ import { reset_head_anchor } from './dom/blocks/svelte-head.js';
 import * as w from './warnings.js';
 import * as e from './errors.js';
 import { validate_component } from '../shared/validate.js';
+import { assign_nodes } from './dom/template.js';
 
 /** @type {Set<string>} */
 export const all_registered_events = new Set();
@@ -113,28 +120,37 @@ export function hydrate(component, options) {
 
 	options.intro = options.intro ?? false;
 	const target = options.target;
-	const previous_hydrate_nodes = hydrate_nodes;
+	const was_hydrating = hydrating;
 
 	try {
 		// Don't flush previous effects to ensure order of outer effects stays consistent
 		return flush_sync(() => {
-			set_hydrating(true);
-
-			var node = target.firstChild;
+			var anchor = /** @type {import('#client').TemplateNode} */ (target.firstChild);
 			while (
-				node &&
-				(node.nodeType !== 8 || /** @type {Comment} */ (node).data !== HYDRATION_START)
+				anchor &&
+				(anchor.nodeType !== 8 || /** @type {Comment} */ (anchor).data !== HYDRATION_START)
 			) {
-				node = node.nextSibling;
+				anchor = /** @type {import('#client').TemplateNode} */ (anchor.nextSibling);
 			}
 
-			if (!node) {
+			if (!anchor) {
 				throw HYDRATION_ERROR;
 			}
 
-			const anchor = hydrate_anchor(node);
+			set_hydrating(true);
+			set_hydrate_node(/** @type {Comment} */ (anchor));
+			hydrate_next();
+
 			const instance = _mount(component, { ...options, anchor });
 
+			if (
+				hydrate_node.nodeType !== 8 ||
+				/** @type {Comment} */ (hydrate_node).data !== HYDRATION_END
+			) {
+				w.hydration_mismatch();
+				throw HYDRATION_ERROR;
+			}
+
 			// flush_sync will run this callback and then synchronously run any pending effects,
 			// which don't belong to the hydration phase anymore - therefore reset it here
 			set_hydrating(false);
@@ -143,6 +159,9 @@ export function hydrate(component, options) {
 		}, false);
 	} catch (error) {
 		if (error === HYDRATION_ERROR) {
+			// TODO it's possible for event listeners to have been added and
+			// not removed, e.g. with `<svelte:window>` or `<svelte:document>`
+
 			if (options.recover === false) {
 				e.hydration_failed();
 			}
@@ -157,8 +176,7 @@ export function hydrate(component, options) {
 
 		throw error;
 	} finally {
-		set_hydrating(!!previous_hydrate_nodes);
-		set_hydrate_nodes(previous_hydrate_nodes);
+		set_hydrating(was_hydrating);
 		reset_head_anchor();
 	}
 }
@@ -222,11 +240,21 @@ function _mount(Component, { target, anchor, props = {}, events, context, intro
 				/** @type {any} */ (props).$$events = events;
 			}
 
+			if (hydrating) {
+				assign_nodes(/** @type {import('#client').TemplateNode} */ (anchor), null);
+			}
+
 			should_intro = intro;
 			// @ts-expect-error the public typings are not what the actual function looks like
 			component = Component(anchor, props) || {};
 			should_intro = true;
 
+			if (hydrating) {
+				/** @type {import('#client').Effect & { nodes: import('#client').EffectNodes }} */ (
+					current_effect
+				).nodes.end = hydrate_node;
+			}
+
 			if (context) {
 				pop();
 			}
diff --git a/packages/svelte/src/internal/server/hydration.js b/packages/svelte/src/internal/server/hydration.js
index d860d759d24e..94fc61b89ca1 100644
--- a/packages/svelte/src/internal/server/hydration.js
+++ b/packages/svelte/src/internal/server/hydration.js
@@ -1,11 +1,6 @@
-import {
-	HYDRATION_ANCHOR,
-	HYDRATION_END,
-	HYDRATION_END_ELSE,
-	HYDRATION_START
-} from '../../constants.js';
+import { HYDRATION_END, HYDRATION_START, HYDRATION_START_ELSE } from '../../constants.js';
 
 export const BLOCK_OPEN = `<!--${HYDRATION_START}-->`;
+export const BLOCK_OPEN_ELSE = `<!--${HYDRATION_START_ELSE}-->`;
 export const BLOCK_CLOSE = `<!--${HYDRATION_END}-->`;
-export const BLOCK_ANCHOR = `<!--${HYDRATION_ANCHOR}-->`;
-export const BLOCK_CLOSE_ELSE = `<!--${HYDRATION_END_ELSE}-->`;
+export const EMPTY_COMMENT = `<!---->`;
diff --git a/packages/svelte/src/internal/server/index.js b/packages/svelte/src/internal/server/index.js
index fc3ad10d30f2..8238e469cfdb 100644
--- a/packages/svelte/src/internal/server/index.js
+++ b/packages/svelte/src/internal/server/index.js
@@ -10,7 +10,7 @@ import {
 import { escape_html } from '../../escaping.js';
 import { DEV } from 'esm-env';
 import { current_component, pop, push } from './context.js';
-import { BLOCK_ANCHOR, BLOCK_CLOSE, BLOCK_OPEN } from './hydration.js';
+import { EMPTY_COMMENT, BLOCK_CLOSE, BLOCK_OPEN } from './hydration.js';
 import { validate_store } from '../shared/validate.js';
 
 // https://html.spec.whatwg.org/multipage/syntax.html#attributes-2
@@ -73,6 +73,8 @@ export function assign_payload(p1, p2) {
  * @returns {void}
  */
 export function element(payload, tag, attributes_fn = noop, children_fn = noop) {
+	payload.out += '<!---->';
+
 	if (tag) {
 		payload.out += `<${tag} `;
 		attributes_fn();
@@ -81,7 +83,7 @@ export function element(payload, tag, attributes_fn = noop, children_fn = noop)
 		if (!VoidElements.has(tag)) {
 			children_fn();
 			if (!RawTextElements.includes(tag)) {
-				payload.out += BLOCK_ANCHOR;
+				payload.out += EMPTY_COMMENT;
 			}
 			payload.out += `</${tag}>`;
 		}
@@ -141,9 +143,9 @@ export function render(component, options = {}) {
  */
 export function head(payload, fn) {
 	const head_payload = payload.head;
-	payload.head.out += BLOCK_OPEN;
+	head_payload.out += BLOCK_OPEN;
 	fn(head_payload);
-	payload.head.out += BLOCK_CLOSE;
+	head_payload.out += BLOCK_CLOSE;
 }
 
 /**
@@ -164,16 +166,24 @@ export function attr(name, value, is_boolean = false) {
  * @param {boolean} is_html
  * @param {Record<string, string>} props
  * @param {() => void} component
+ * @param {boolean} dynamic
  * @returns {void}
  */
-export function css_props(payload, is_html, props, component) {
+export function css_props(payload, is_html, props, component, dynamic = false) {
 	const styles = style_object_to_string(props);
+
 	if (is_html) {
 		payload.out += `<div style="display: contents; ${styles}">`;
 	} else {
 		payload.out += `<g style="${styles}">`;
 	}
+
+	if (dynamic) {
+		payload.out += '<!---->';
+	}
+
 	component();
+
 	if (is_html) {
 		payload.out += `<!----></div>`;
 	} else {
diff --git a/packages/svelte/tests/hydration/samples/binding-input/_expected.html b/packages/svelte/tests/hydration/samples/binding-input/_expected.html
index b5bc6af1614a..e36735dc6b9d 100644
--- a/packages/svelte/tests/hydration/samples/binding-input/_expected.html
+++ b/packages/svelte/tests/hydration/samples/binding-input/_expected.html
@@ -1 +1 @@
-<!--ssr:0--><input> <p>Hello world!</p><!--ssr:0-->
+<!--[--><input> <p>Hello world!</p><!--]-->
diff --git a/packages/svelte/tests/hydration/samples/dynamic-text-changed/_expected.html b/packages/svelte/tests/hydration/samples/dynamic-text-changed/_expected.html
index b163603869b5..11e3f55d6b56 100644
--- a/packages/svelte/tests/hydration/samples/dynamic-text-changed/_expected.html
+++ b/packages/svelte/tests/hydration/samples/dynamic-text-changed/_expected.html
@@ -1 +1 @@
-<!--ssr:0--><h1>Hello everybody!</h1><!--ssr:0-->
+<!--[--><h1>Hello everybody!</h1><!--]-->
diff --git a/packages/svelte/tests/hydration/samples/each-block-0-on-server-more-on-client/_expected.html b/packages/svelte/tests/hydration/samples/each-block-0-on-server-more-on-client/_expected.html
index 5de1a42d70a9..2b2a31b92633 100644
--- a/packages/svelte/tests/hydration/samples/each-block-0-on-server-more-on-client/_expected.html
+++ b/packages/svelte/tests/hydration/samples/each-block-0-on-server-more-on-client/_expected.html
@@ -1,9 +1 @@
-<!--ssr:0--><ul><!--ssr:1--><!--ssr:7--><li>a</li><!--ssr:7--><!--ssr:1--></ul>
-<ul><!--ssr:2--><!--ssr:9--><li>a</li><!--ssr:9--><!--ssr:2--></ul>
-<ul><!--ssr:3--><!--ssr:11--><li>a</li><!--ssr:11--><!--ssr:3--></ul>
-<!--ssr:4--><!--ssr:13--><li>a</li>
-<li>a</li><!--ssr:13--><!--ssr:4-->
-<!--ssr:5--><!--ssr:15--><li>a</li>
-<li>a</li><!--ssr:15--><!--ssr:5-->
-<!--ssr:6--><!--ssr:17--><li>a</li>
-<li>a</li><!--ssr:17--><!--ssr:6--><!--ssr:0--></div>
+<!--[--><ul><!--[--><li>a</li><!--]--></ul> <ul><!--[--><li>a</li><!--]--></ul> <ul><!--[--><li>a</li><!--]--></ul> <!--[--><li>a</li> <li>a</li><!--]--> <!--[--><li>a</li> <li>a</li><!--]--> <!--[--><li>a</li> <li>a</li><!--]--><!--]-->
diff --git a/packages/svelte/tests/hydration/samples/each-block-fallback-mismatch/_expected.html b/packages/svelte/tests/hydration/samples/each-block-fallback-mismatch/_expected.html
index fcfd9fe9efe2..af66d98b25b6 100644
--- a/packages/svelte/tests/hydration/samples/each-block-fallback-mismatch/_expected.html
+++ b/packages/svelte/tests/hydration/samples/each-block-fallback-mismatch/_expected.html
@@ -1,2 +1 @@
-<!--ssr:0--><!--ssr:1--><p>a</p><!--ssr:1-->
-<!--ssr:2--><p>empty</p><!--ssr:2--><!--ssr:0-->
+<!--[--><!--[!--><p>a</p><!--]--> <!--[--><p>empty</p><!--]--><!--]-->
diff --git a/packages/svelte/tests/hydration/samples/each-block-less-nodes-on-client/_expected.html b/packages/svelte/tests/hydration/samples/each-block-less-nodes-on-client/_expected.html
index 5de1a42d70a9..2b2a31b92633 100644
--- a/packages/svelte/tests/hydration/samples/each-block-less-nodes-on-client/_expected.html
+++ b/packages/svelte/tests/hydration/samples/each-block-less-nodes-on-client/_expected.html
@@ -1,9 +1 @@
-<!--ssr:0--><ul><!--ssr:1--><!--ssr:7--><li>a</li><!--ssr:7--><!--ssr:1--></ul>
-<ul><!--ssr:2--><!--ssr:9--><li>a</li><!--ssr:9--><!--ssr:2--></ul>
-<ul><!--ssr:3--><!--ssr:11--><li>a</li><!--ssr:11--><!--ssr:3--></ul>
-<!--ssr:4--><!--ssr:13--><li>a</li>
-<li>a</li><!--ssr:13--><!--ssr:4-->
-<!--ssr:5--><!--ssr:15--><li>a</li>
-<li>a</li><!--ssr:15--><!--ssr:5-->
-<!--ssr:6--><!--ssr:17--><li>a</li>
-<li>a</li><!--ssr:17--><!--ssr:6--><!--ssr:0--></div>
+<!--[--><ul><!--[--><li>a</li><!--]--></ul> <ul><!--[--><li>a</li><!--]--></ul> <ul><!--[--><li>a</li><!--]--></ul> <!--[--><li>a</li> <li>a</li><!--]--> <!--[--><li>a</li> <li>a</li><!--]--> <!--[--><li>a</li> <li>a</li><!--]--><!--]-->
diff --git a/packages/svelte/tests/hydration/samples/each-block-more-nodes-on-client/_expected.html b/packages/svelte/tests/hydration/samples/each-block-more-nodes-on-client/_expected.html
index 453cee352ba8..fa72a80dcda0 100644
--- a/packages/svelte/tests/hydration/samples/each-block-more-nodes-on-client/_expected.html
+++ b/packages/svelte/tests/hydration/samples/each-block-more-nodes-on-client/_expected.html
@@ -1,9 +1 @@
-<!--ssr:0--><ul><!--ssr:1--><!--ssr:7--><li>a</li><!--ssr:7--><li>b</li><!--ssr:1--></ul>
-<ul><!--ssr:2--><!--ssr:8--><li>a</li><!--ssr:8--><li>b</li><!--ssr:2--></ul>
-<ul><!--ssr:3--><!--ssr:9--><li>a</li><!--ssr:9--><li>b</li><!--ssr:3--></ul>
-<!--ssr:4--><!--ssr:10--><li>a</li>
-<li>a</li><!--ssr:10--><li>b</li><li>b</li><!--ssr:4-->
-<!--ssr:5--><!--ssr:11--><li>a</li>
-<li>a</li><!--ssr:11--><li>b</li><li>b</li><!--ssr:5-->
-<!--ssr:6--><!--ssr:12--><li>a</li>
-<li>a</li><!--ssr:12--><li>b</li><li>b</li><!--ssr:6--><!--ssr:0--></div>
+<!--[--><ul><!--[--><li>a</li><li>b</li><!--]--></ul> <ul><!--[--><li>a</li><li>b</li><!--]--></ul> <ul><!--[--><li>a</li><li>b</li><!--]--></ul> <!--[--><li>a</li> <li>a</li><li>b</li> <li>b</li><!--]--> <!--[--><li>a</li> <li>a</li><li>b</li> <li>b</li><!--]--> <!--[--><li>a</li> <li>a</li><li>b</li> <li>b</li><!--]--><!--]-->
diff --git a/packages/svelte/tests/hydration/samples/element-attribute-added/_expected.html b/packages/svelte/tests/hydration/samples/element-attribute-added/_expected.html
index 73cf4a84b646..7d8e91c757e1 100644
--- a/packages/svelte/tests/hydration/samples/element-attribute-added/_expected.html
+++ b/packages/svelte/tests/hydration/samples/element-attribute-added/_expected.html
@@ -1 +1 @@
-<!--ssr:0--><div class="bar"></div><!--ssr:0-->
+<!--[--><div class="bar"></div><!--]-->
diff --git a/packages/svelte/tests/hydration/samples/element-attribute-changed/_expected.html b/packages/svelte/tests/hydration/samples/element-attribute-changed/_expected.html
index 73cf4a84b646..7d8e91c757e1 100644
--- a/packages/svelte/tests/hydration/samples/element-attribute-changed/_expected.html
+++ b/packages/svelte/tests/hydration/samples/element-attribute-changed/_expected.html
@@ -1 +1 @@
-<!--ssr:0--><div class="bar"></div><!--ssr:0-->
+<!--[--><div class="bar"></div><!--]-->
diff --git a/packages/svelte/tests/hydration/samples/element-attribute-removed/_expected.html b/packages/svelte/tests/hydration/samples/element-attribute-removed/_expected.html
index bbd534112d67..a6c1be8b4906 100644
--- a/packages/svelte/tests/hydration/samples/element-attribute-removed/_expected.html
+++ b/packages/svelte/tests/hydration/samples/element-attribute-removed/_expected.html
@@ -1 +1 @@
-<div></div><div></div><div></div>
+<!--[--><div></div> <!--[--><div></div> <div></div><!--]--><!--]-->
diff --git a/packages/svelte/tests/hydration/samples/noscript/_expected.html b/packages/svelte/tests/hydration/samples/noscript/_expected.html
index be193b8c989a..990ce87303d2 100644
--- a/packages/svelte/tests/hydration/samples/noscript/_expected.html
+++ b/packages/svelte/tests/hydration/samples/noscript/_expected.html
@@ -1,2 +1 @@
-<!--ssr:0--><noscript>JavaScript is required for this site.</noscript>
-<h1>Hello!</h1><p>Count: 1</p><!--ssr:0-->
+<!--[--><noscript>JavaScript is required for this site.</noscript> <h1>Hello!</h1><p>Count: 1</p><!--]-->
diff --git a/packages/svelte/tests/hydration/samples/raw-repair/_expected.html b/packages/svelte/tests/hydration/samples/raw-repair/_expected.html
new file mode 100644
index 000000000000..39714f0fd3cd
--- /dev/null
+++ b/packages/svelte/tests/hydration/samples/raw-repair/_expected.html
@@ -0,0 +1 @@
+<!----><p><p>invalid</p><!----></p><!----> <p><p>invalid</p><!----></p>
diff --git a/packages/svelte/tests/hydration/samples/standalone-component/Child.svelte b/packages/svelte/tests/hydration/samples/standalone-component/Child.svelte
new file mode 100644
index 000000000000..b69380af2b5e
--- /dev/null
+++ b/packages/svelte/tests/hydration/samples/standalone-component/Child.svelte
@@ -0,0 +1 @@
+<p>child</p>
diff --git a/packages/svelte/tests/hydration/samples/standalone-component/_config.js b/packages/svelte/tests/hydration/samples/standalone-component/_config.js
new file mode 100644
index 000000000000..5e08315e29cf
--- /dev/null
+++ b/packages/svelte/tests/hydration/samples/standalone-component/_config.js
@@ -0,0 +1,4 @@
+import { test } from '../../test';
+
+// Ensure that we don't create additional comment nodes for standalone components
+export default test({});
diff --git a/packages/svelte/tests/hydration/samples/standalone-component/_expected.html b/packages/svelte/tests/hydration/samples/standalone-component/_expected.html
new file mode 100644
index 000000000000..96850f7bdf73
--- /dev/null
+++ b/packages/svelte/tests/hydration/samples/standalone-component/_expected.html
@@ -0,0 +1 @@
+<!--[--><!--[--><p>child</p><!--]--> <!--[--><p>child</p><p>child</p><p>child</p><!--]--><!--]-->
diff --git a/packages/svelte/tests/hydration/samples/standalone-component/main.svelte b/packages/svelte/tests/hydration/samples/standalone-component/main.svelte
new file mode 100644
index 000000000000..8d6342246d9f
--- /dev/null
+++ b/packages/svelte/tests/hydration/samples/standalone-component/main.svelte
@@ -0,0 +1,11 @@
+<script>
+	import Child from './Child.svelte';
+</script>
+
+{#if true}
+	<Child />
+{/if}
+
+{#each [1, 2, 3] as n}
+	<Child />
+{/each}
diff --git a/packages/svelte/tests/hydration/samples/standalone-snippet/_config.js b/packages/svelte/tests/hydration/samples/standalone-snippet/_config.js
new file mode 100644
index 000000000000..5e08315e29cf
--- /dev/null
+++ b/packages/svelte/tests/hydration/samples/standalone-snippet/_config.js
@@ -0,0 +1,4 @@
+import { test } from '../../test';
+
+// Ensure that we don't create additional comment nodes for standalone components
+export default test({});
diff --git a/packages/svelte/tests/hydration/samples/standalone-snippet/_expected.html b/packages/svelte/tests/hydration/samples/standalone-snippet/_expected.html
new file mode 100644
index 000000000000..acb14818c2c9
--- /dev/null
+++ b/packages/svelte/tests/hydration/samples/standalone-snippet/_expected.html
@@ -0,0 +1 @@
+<!--[--><!--[--><p>thing</p><!--]--> <!--[--><p>thing</p><p>thing</p><p>thing</p><!--]--><!--]-->
diff --git a/packages/svelte/tests/hydration/samples/standalone-snippet/main.svelte b/packages/svelte/tests/hydration/samples/standalone-snippet/main.svelte
new file mode 100644
index 000000000000..9ce34a0baa7e
--- /dev/null
+++ b/packages/svelte/tests/hydration/samples/standalone-snippet/main.svelte
@@ -0,0 +1,11 @@
+{#snippet thing()}
+	<p>thing</p>
+{/snippet}
+
+{#if true}
+	{@render thing()}
+{/if}
+
+{#each [1, 2, 3] as n}
+	{@render thing()}
+{/each}
diff --git a/packages/svelte/tests/hydration/samples/text-empty/_expected.html b/packages/svelte/tests/hydration/samples/text-empty/_expected.html
index 5592a725f3bc..2e03580f422c 100644
--- a/packages/svelte/tests/hydration/samples/text-empty/_expected.html
+++ b/packages/svelte/tests/hydration/samples/text-empty/_expected.html
@@ -1 +1 @@
-<!--ssr:0-->x<!--ssr:0-->
\ No newline at end of file
+<!--[--><!---->x<!--]-->
diff --git a/packages/svelte/tests/hydration/test.ts b/packages/svelte/tests/hydration/test.ts
index 0fcdc6f1b4c9..c18680271172 100644
--- a/packages/svelte/tests/hydration/test.ts
+++ b/packages/svelte/tests/hydration/test.ts
@@ -52,8 +52,10 @@ const { test, run } = suite<HydrationTest>(async (config, cwd) => {
 		props: config.server_props ?? config.props ?? {}
 	});
 
+	const override = read(`${cwd}/_override.html`);
+
 	fs.writeFileSync(`${cwd}/_output/body.html`, rendered.html + '\n');
-	target.innerHTML = read(`${cwd}/_override.html`) ?? rendered.html;
+	target.innerHTML = override ?? rendered.html;
 
 	if (rendered.head) {
 		fs.writeFileSync(`${cwd}/_output/head.html`, rendered.head + '\n');
@@ -109,12 +111,14 @@ const { test, run } = suite<HydrationTest>(async (config, cwd) => {
 			throw new Error(`Unexpected errors: ${errors.join('\n')}`);
 		}
 
-		const expected = read(`${cwd}/_expected.html`) ?? rendered.html;
-		assert_html_equal(target.innerHTML, expected);
+		if (!override) {
+			const expected = read(`${cwd}/_expected.html`) ?? rendered.html;
+			assert.equal(target.innerHTML.trim(), expected.trim());
+		}
 
 		if (rendered.head) {
 			const expected = read(`${cwd}/_expected_head.html`) ?? rendered.head;
-			assert_html_equal(head.innerHTML, expected);
+			assert.equal(head.innerHTML.trim(), expected.trim());
 		}
 
 		if (config.snapshot) {
diff --git a/packages/svelte/tests/runtime-legacy/samples/dynamic-component-in-if-initial-falsy/Foo.svelte b/packages/svelte/tests/runtime-legacy/samples/dynamic-component-in-if-initial-falsy/Foo.svelte
new file mode 100644
index 000000000000..c62ee08e19f5
--- /dev/null
+++ b/packages/svelte/tests/runtime-legacy/samples/dynamic-component-in-if-initial-falsy/Foo.svelte
@@ -0,0 +1 @@
+<p>Foo</p>
\ No newline at end of file
diff --git a/packages/svelte/tests/runtime-legacy/samples/dynamic-component-in-if-initial-falsy/_config.js b/packages/svelte/tests/runtime-legacy/samples/dynamic-component-in-if-initial-falsy/_config.js
new file mode 100644
index 000000000000..1acbf9b07379
--- /dev/null
+++ b/packages/svelte/tests/runtime-legacy/samples/dynamic-component-in-if-initial-falsy/_config.js
@@ -0,0 +1,32 @@
+import { flushSync } from 'svelte';
+import { test } from '../../test';
+
+export default test({
+	html: `
+		<button>toggle component</button>
+		<button>toggle show</button>
+	`,
+
+	test({ assert, component, target }) {
+		const [btn1, btn2] = target.querySelectorAll('button');
+
+		flushSync(() => btn1.click());
+		assert.htmlEqual(
+			target.innerHTML,
+			`
+				<button>toggle component</button>
+				<button>toggle show</button>
+				<p>Foo</p>
+			`
+		);
+
+		flushSync(() => btn2.click());
+		assert.htmlEqual(
+			target.innerHTML,
+			`
+				<button>toggle component</button>
+				<button>toggle show</button>
+			`
+		);
+	}
+});
diff --git a/packages/svelte/tests/runtime-legacy/samples/dynamic-component-in-if-initial-falsy/main.svelte b/packages/svelte/tests/runtime-legacy/samples/dynamic-component-in-if-initial-falsy/main.svelte
new file mode 100644
index 000000000000..c275f6b4fd16
--- /dev/null
+++ b/packages/svelte/tests/runtime-legacy/samples/dynamic-component-in-if-initial-falsy/main.svelte
@@ -0,0 +1,15 @@
+<script>
+	import Foo from './Foo.svelte';
+
+	/** @type {typeof Foo | null} */
+	let component = null;
+
+	let show = true;
+</script>
+
+<button on:click={() => (component = component ? null : Foo)}>toggle component</button>
+<button on:click={() => (show = !show)}>toggle show</button>
+
+{#if show}
+	<svelte:component this={component} />
+{/if}
diff --git a/packages/svelte/tests/runtime-legacy/samples/raw-anchor-first-child/_config.js b/packages/svelte/tests/runtime-legacy/samples/raw-anchor-first-child/_config.js
index f575b3274e15..0f47f3c1143c 100644
--- a/packages/svelte/tests/runtime-legacy/samples/raw-anchor-first-child/_config.js
+++ b/packages/svelte/tests/runtime-legacy/samples/raw-anchor-first-child/_config.js
@@ -11,7 +11,7 @@ export default test({
 		if (variant === 'dom') {
 			assert.ok(!span.previousSibling);
 		} else {
-			assert.ok(span.previousSibling?.textContent === '['); // ssr commment node
+			assert.ok(span.previousSibling?.textContent === ''); // ssr commment node
 		}
 
 		component.raw = '<span>bar</span>';
diff --git a/packages/svelte/tests/server-side-rendering/samples/head-svelte-components-raw-content/_expected.html b/packages/svelte/tests/server-side-rendering/samples/head-svelte-components-raw-content/_expected.html
index 48da62b4de5a..290179a702bb 100644
--- a/packages/svelte/tests/server-side-rendering/samples/head-svelte-components-raw-content/_expected.html
+++ b/packages/svelte/tests/server-side-rendering/samples/head-svelte-components-raw-content/_expected.html
@@ -1,13 +1,17 @@
 <!--[-->
+<!---->
 <title>lorem</title>
 <!---->
+<!---->
 <style>
 	.ipsum {
 		display: block;
 	}
-</style>
+	</style>
+<!---->
 <!---->
 <script>
 	console.log(true);
 </script>
-<!----><!--]-->
+<!---->
+<!--]-->
diff --git a/packages/svelte/tests/snapshot/samples/bind-component-snippet/_expected/client/index.svelte.js b/packages/svelte/tests/snapshot/samples/bind-component-snippet/_expected/client/index.svelte.js
index ba4352d57b80..38f60bacdffc 100644
--- a/packages/svelte/tests/snapshot/samples/bind-component-snippet/_expected/client/index.svelte.js
+++ b/packages/svelte/tests/snapshot/samples/bind-component-snippet/_expected/client/index.svelte.js
@@ -7,6 +7,8 @@ var root = $.template(`<!> `, 1);
 
 export default function Bind_component_snippet($$anchor) {
 	const snippet = ($$anchor) => {
+		$.next();
+
 		var fragment = root_1();
 
 		$.append($$anchor, fragment);
diff --git a/packages/svelte/tests/snapshot/samples/bind-component-snippet/_expected/server/index.svelte.js b/packages/svelte/tests/snapshot/samples/bind-component-snippet/_expected/server/index.svelte.js
index 5c9a37cfdbf2..b645d055702c 100644
--- a/packages/svelte/tests/snapshot/samples/bind-component-snippet/_expected/server/index.svelte.js
+++ b/packages/svelte/tests/snapshot/samples/bind-component-snippet/_expected/server/index.svelte.js
@@ -6,15 +6,13 @@ export default function Bind_component_snippet($$payload) {
 	const _snippet = snippet;
 
 	function snippet($$payload) {
-		$$payload.out += `Something`;
+		$$payload.out += `<!---->Something`;
 	}
 
 	let $$settled = true;
 	let $$inner_payload;
 
 	function $$render_inner($$payload) {
-		$$payload.out += `<!--[-->`;
-
 		TextInput($$payload, {
 			get value() {
 				return value;
@@ -25,7 +23,7 @@ export default function Bind_component_snippet($$payload) {
 			}
 		});
 
-		$$payload.out += `<!--]--> value: ${$.escape(value)}`;
+		$$payload.out += `<!----> value: ${$.escape(value)}`;
 	};
 
 	do {
diff --git a/packages/svelte/tests/snapshot/samples/each-string-template/_expected/client/index.svelte.js b/packages/svelte/tests/snapshot/samples/each-string-template/_expected/client/index.svelte.js
index 5d5e47faf2d6..c63bbfe561c3 100644
--- a/packages/svelte/tests/snapshot/samples/each-string-template/_expected/client/index.svelte.js
+++ b/packages/svelte/tests/snapshot/samples/each-string-template/_expected/client/index.svelte.js
@@ -6,7 +6,7 @@ export default function Each_string_template($$anchor) {
 	var node = $.first_child(fragment);
 
 	$.each(node, 1, () => ['foo', 'bar', 'baz'], $.index, ($$anchor, thing, $$index) => {
-		var text = $.text($$anchor);
+		var text = $.text();
 
 		$.template_effect(() => $.set_text(text, `${$.unwrap(thing) ?? ""}, `));
 		$.append($$anchor, text);
diff --git a/packages/svelte/tests/snapshot/samples/each-string-template/_expected/server/index.svelte.js b/packages/svelte/tests/snapshot/samples/each-string-template/_expected/server/index.svelte.js
index fb143a56c9dd..9258fb774783 100644
--- a/packages/svelte/tests/snapshot/samples/each-string-template/_expected/server/index.svelte.js
+++ b/packages/svelte/tests/snapshot/samples/each-string-template/_expected/server/index.svelte.js
@@ -8,10 +8,8 @@ export default function Each_string_template($$payload) {
 	for (let $$index = 0; $$index < each_array.length; $$index++) {
 		const thing = each_array[$$index];
 
-		$$payload.out += "<!--[-->";
 		$$payload.out += `${$.escape(thing)}, `;
-		$$payload.out += "<!--]-->";
 	}
 
-	$$payload.out += "<!--]-->";
+	$$payload.out += `<!--]-->`;
 }
\ No newline at end of file
diff --git a/packages/svelte/tests/snapshot/samples/function-prop-no-getter/_expected/client/index.svelte.js b/packages/svelte/tests/snapshot/samples/function-prop-no-getter/_expected/client/index.svelte.js
index 8fb6d075cd7c..0515f1aa331c 100644
--- a/packages/svelte/tests/snapshot/samples/function-prop-no-getter/_expected/client/index.svelte.js
+++ b/packages/svelte/tests/snapshot/samples/function-prop-no-getter/_expected/client/index.svelte.js
@@ -15,7 +15,7 @@ export default function Function_prop_no_getter($$anchor) {
 		onmouseup,
 		onmouseenter: () => $.set(count, $.proxy(plusOne($.get(count)))),
 		children: ($$anchor, $$slotProps) => {
-			var text = $.text($$anchor);
+			var text = $.text();
 
 			$.template_effect(() => $.set_text(text, `clicks: ${$.get(count) ?? ""}`));
 			$.append($$anchor, text);