diff --git a/.changeset/silver-points-approve.md b/.changeset/silver-points-approve.md
new file mode 100644
index 0000000000..2946fc832c
--- /dev/null
+++ b/.changeset/silver-points-approve.md
@@ -0,0 +1,5 @@
+---
+"svelte": patch
+---
+
+fix: improve indexed each array reconcilation
diff --git a/packages/svelte/src/internal/client/each.js b/packages/svelte/src/internal/client/each.js
index 8485f51958..68b5f446c2 100644
--- a/packages/svelte/src/internal/client/each.js
+++ b/packages/svelte/src/internal/client/each.js
@@ -14,14 +14,11 @@ import {
 	set_current_hydration_fragment
 } from './hydration.js';
 import { clear_text_content, map_get, map_set } from './operations.js';
-import { STATE_SYMBOL } from './proxy.js';
 import { insert, remove } from './reconciler.js';
 import { empty } from './render.js';
 import {
 	destroy_signal,
 	execute_effect,
-	is_lazy_property,
-	lazy_property,
 	mutable_source,
 	push_destroy_fn,
 	render_effect,
@@ -132,7 +129,7 @@ function each(anchor_node, collection, flags, key_fn, render_fn, fallback_fn, re
 	};
 
 	/** @param {import('./types.js').EachBlock} block */
-	const clear_each = (block) => {
+	const render_each = (block) => {
 		const flags = block.f;
 		const is_controlled = (flags & EACH_IS_CONTROLLED) !== 0;
 		const anchor_node = block.a;
@@ -175,7 +172,7 @@ function each(anchor_node, collection, flags, key_fn, render_fn, fallback_fn, re
 			if (fallback_fn !== null) {
 				if (length === 0) {
 					if (block.v.length !== 0 || render === null) {
-						clear_each(block);
+						render_each(block);
 						create_fallback_effect();
 						return;
 					}
@@ -201,7 +198,7 @@ function each(anchor_node, collection, flags, key_fn, render_fn, fallback_fn, re
 		false
 	);
 
-	render = render_effect(clear_each, block, true);
+	render = render_effect(render_each, block, true);
 
 	if (mismatch) {
 		// Set a fragment so that Svelte continues to operate in hydration mode
@@ -279,14 +276,9 @@ function reconcile_indexed_array(
 	flags,
 	apply_transitions
 ) {
-	var is_proxied_array = STATE_SYMBOL in array && /** @type {any} */ (array[STATE_SYMBOL]).i;
 	var a_blocks = each_block.v;
 	var active_transitions = each_block.s;
 
-	if (is_proxied_array) {
-		flags &= ~EACH_ITEM_REACTIVE;
-	}
-
 	/** @type {number | void} */
 	var a = a_blocks.length;
 
@@ -334,7 +326,7 @@ function reconcile_indexed_array(
 					break;
 				}
 
-				item = is_proxied_array ? lazy_property(array, index) : array[index];
+				item = array[index];
 				block = each_item_block(item, null, index, render_fn, flags);
 				b_blocks[index] = block;
 
@@ -349,7 +341,7 @@ function reconcile_indexed_array(
 		for (; index < length; index++) {
 			if (index >= a) {
 				// Add block
-				item = is_proxied_array ? lazy_property(array, index) : array[index];
+				item = array[index];
 				block = each_item_block(item, null, index, render_fn, flags);
 				b_blocks[index] = block;
 				insert_each_item_block(block, dom, is_controlled, null);
@@ -789,17 +781,6 @@ function update_each_item_block(block, item, index, type) {
 	const block_v = block.v;
 	if ((type & EACH_ITEM_REACTIVE) !== 0) {
 		set_signal_value(block_v, item);
-	} else if (is_lazy_property(block_v)) {
-		// If we have lazy properties, it means that an array was used that has been
-		// proxied. Given this, we need to re-sync the old array by mutating the backing
-		// value to be the latest value to ensure the UI updates correctly. TODO: maybe
-		// we should bypass any internal mutation checks for this?
-		const o = block_v.o;
-		const p = block_v.p;
-		const prev = o[p];
-		if (prev !== item) {
-			o[p] = item;
-		}
 	}
 	const transitions = block.s;
 	const index_is_reactive = (type & EACH_INDEX_REACTIVE) !== 0;
@@ -856,9 +837,7 @@ export function destroy_each_item_block(
 
 /**
  * @template V
- * @template O
- * @template P
- * @param {V | import('./types.js').LazyProperty<O, P>} item
+ * @param {V} item
  * @param {unknown} key
  * @param {number} index
  * @param {(anchor: null, item: V, index: number | import('./types.js').Signal<number>) => void} render_fn
diff --git a/packages/svelte/src/internal/client/runtime.js b/packages/svelte/src/internal/client/runtime.js
index 6f6ac4742d..e200c6ec32 100644
--- a/packages/svelte/src/internal/client/runtime.js
+++ b/packages/svelte/src/internal/client/runtime.js
@@ -39,7 +39,6 @@ const FLUSH_MICROTASK = 0;
 const FLUSH_SYNC = 1;
 
 export const UNINITIALIZED = Symbol();
-export const LAZY_PROPERTY = Symbol();
 
 // Used for controlling the flush of effects.
 let current_scheduler_mode = FLUSH_MICROTASK;
@@ -1542,20 +1541,6 @@ export function is_signal(val) {
 	);
 }
 
-/**
- * @template O
- * @template P
- * @param {any} val
- * @returns {val is import('./types.js').LazyProperty<O, P>}
- */
-export function is_lazy_property(val) {
-	return (
-		typeof val === 'object' &&
-		val !== null &&
-		/** @type {import('./types.js').LazyProperty<O, P>} */ (val).t === LAZY_PROPERTY
-	);
-}
-
 /**
  * @template V
  * @param {unknown} val
@@ -2084,21 +2069,6 @@ export function inspect(get_value, inspect = console.log) {
 	});
 }
 
-/**
- * @template O
- * @template P
- * @param {O} o
- * @param {P} p
- * @returns {import('./types.js').LazyProperty<O, P>}
- */
-export function lazy_property(o, p) {
-	return {
-		o,
-		p,
-		t: LAZY_PROPERTY
-	};
-}
-
 /**
  * @template V
  * @param {V} value
@@ -2109,9 +2079,6 @@ export function unwrap(value) {
 		// @ts-ignore
 		return get(value);
 	}
-	if (is_lazy_property(value)) {
-		return value.o[value.p];
-	}
 	// @ts-ignore
 	return value;
 }
diff --git a/packages/svelte/src/internal/client/types.d.ts b/packages/svelte/src/internal/client/types.d.ts
index c8918fa441..7d34789d3b 100644
--- a/packages/svelte/src/internal/client/types.d.ts
+++ b/packages/svelte/src/internal/client/types.d.ts
@@ -11,7 +11,7 @@ import {
 	SNIPPET_BLOCK
 } from './block.js';
 import type { READONLY_SYMBOL, STATE_SYMBOL } from './proxy.js';
-import { DERIVED, EFFECT, RENDER_EFFECT, SOURCE, PRE_EFFECT, LAZY_PROPERTY } from './runtime.js';
+import { DERIVED, EFFECT, RENDER_EFFECT, SOURCE, PRE_EFFECT } from './runtime.js';
 
 // Put all internal types in this file. Once we convert to JSDoc, we can make this a d.ts file
 
@@ -123,12 +123,6 @@ export type MaybeSignal<T = unknown> = T | Signal<T>;
 
 export type UnwrappedSignal<T> = T extends Signal<infer U> ? U : T;
 
-export type LazyProperty<O, P> = {
-	o: O;
-	p: P;
-	t: typeof LAZY_PROPERTY;
-};
-
 export type EqualsFunctions<T = any> = (a: T, v: T) => boolean;
 
 export type BlockType =
diff --git a/packages/svelte/tests/runtime-runes/samples/each-updates-3/_config.js b/packages/svelte/tests/runtime-runes/samples/each-updates-3/_config.js
new file mode 100644
index 0000000000..5caa453fed
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/each-updates-3/_config.js
@@ -0,0 +1,43 @@
+import { flushSync } from 'svelte';
+import { test } from '../../test';
+
+export default test({
+	html: `<ul><li><button>Delete</button>\na\na</li><li><button>Delete</button>\nb\nb</li><li><button>Delete</button>\nc\nc</li><li><button>Delete</button>\nd\nd</li></ul>`,
+
+	async test({ assert, target }) {
+		/**
+		 * @type {{ click: () => void; }}
+		 */
+		let btn1;
+
+		[btn1] = target.querySelectorAll('button');
+
+		flushSync(() => {
+			btn1.click();
+		});
+
+		assert.htmlEqual(
+			target.innerHTML,
+			`<ul><li><button>Delete</button>\nb\nb</li><li><button>Delete</button>\nc\nc</li><li><button>Delete</button>\nd\nd</li></ul>`
+		);
+
+		[btn1] = target.querySelectorAll('button');
+
+		flushSync(() => {
+			btn1.click();
+		});
+
+		assert.htmlEqual(
+			target.innerHTML,
+			`<ul><li><button>Delete</button>\nc\nc</li><li><button>Delete</button>\nd\nd</li></ul>`
+		);
+
+		[btn1] = target.querySelectorAll('button');
+
+		flushSync(() => {
+			btn1.click();
+		});
+
+		assert.htmlEqual(target.innerHTML, `<ul><li><button>Delete</button>\nd\nd</li></ul>`);
+	}
+});
diff --git a/packages/svelte/tests/runtime-runes/samples/each-updates-3/main.svelte b/packages/svelte/tests/runtime-runes/samples/each-updates-3/main.svelte
new file mode 100644
index 0000000000..35ab6cfc69
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/each-updates-3/main.svelte
@@ -0,0 +1,36 @@
+<script>
+	let entries = $state([
+			{
+					id: 'a',
+					subitems: ['a'],
+			},
+			{
+					id: 'b',
+					subitems: ['b'],
+			},
+			{
+					id: 'c',
+					subitems: ['c'],
+			},
+			{
+					id: 'd',
+					subitems: ['d'],
+			},
+	]);
+
+	function onDeleteEntry(entry) {
+			entries = entries.filter((innerEntry) => innerEntry.id !== entry.id);
+	}
+	</script>
+
+	<ul>
+			{#each entries as entry}
+					<li>
+							<button on:click={() => onDeleteEntry(entry)}>Delete</button>
+							{entry.id}
+							{#each entry.subitems as subitem}
+									{subitem}
+							{/each}
+					</li>
+			{/each}
+	</ul>