diff --git a/packages/svelte/src/compiler/phases/3-transform/client/utils.js b/packages/svelte/src/compiler/phases/3-transform/client/utils.js
index 86aa472dcd..a3450bdb26 100644
--- a/packages/svelte/src/compiler/phases/3-transform/client/utils.js
+++ b/packages/svelte/src/compiler/phases/3-transform/client/utils.js
@@ -543,12 +543,22 @@ export function should_proxy_or_freeze(node) {
  * @returns {boolean}
  */
 export function can_inline_variable(binding, name) {
+	return can_hoist_declaration(binding, name) || (!!binding && !binding.scope.has_parent());
+}
+
+/**
+ * @param {import('#compiler').Binding | undefined} binding
+ * @param {string} name
+ * @returns {boolean}
+ */
+export function can_hoist_declaration(binding, name) {
 	return (
 		!!binding &&
 		binding.kind === 'normal' &&
 		binding.scope.is_top_level &&
-		// TODO: allow object expressions that are not passed to functions or components as props
-		// and expressions as long as they do not reference non-hoistable variables
+		// For now we just allow primitives for simplicity. We could allow object expressions that are
+		// not passed to functions or components as props and expressions as long as they do not
+		// reference functions, constructors, non-hoistable variables, etc.
 		binding.initial?.type === 'Literal' &&
 		// Checking that it's not mutated or reassigned is a bit simplistic
 		// If it's not state and thus not reactive, we could hoist the variable and mutation
@@ -558,16 +568,6 @@ export function can_inline_variable(binding, name) {
 		// Avoid conflicts. It would be nice to rename the variable, but keeping it simple for now
 		!binding.scope.declared_in_outer_scope(name) &&
 		!GlobalBindings.has(name)
-	);
-}
-
-/**
- * @param {import('#compiler').Binding | undefined} binding
- * @param {string} name
- * @returns {boolean}
- */
-export function can_hoist_declaration(binding, name) {
-	return (
-		can_inline_variable(binding, name) && !!binding && binding.scope.has_parent() // i.e. not when context="module"
+		&& binding.scope.has_parent() // i.e. not when context="module"
 	);
 }
diff --git a/packages/svelte/tests/snapshot/samples/hoist-unmodified-var/_expected/client/index.svelte.js b/packages/svelte/tests/snapshot/samples/hoist-unmodified-var/_expected/client/index.svelte.js
index 46e589c5c9..16368c4715 100644
--- a/packages/svelte/tests/snapshot/samples/hoist-unmodified-var/_expected/client/index.svelte.js
+++ b/packages/svelte/tests/snapshot/samples/hoist-unmodified-var/_expected/client/index.svelte.js
@@ -4,11 +4,12 @@ import "svelte/internal/disclose-version";
 
 const o = 'o';
 const d = 'd';
+const url = new URL('foobar.png', 'https://www.example.com/').href;
 
 import * as $ from "svelte/internal";
 
 const boolean = false;
-var frag = $.template(`<p autocapitalize="${`w${$.stringify(o)}r${$.stringify(d)}s`}" contenteditable="${boolean}">boolean is ${$.stringify(boolean)} and autocapitalize is w${$.stringify(o)}r${$.stringify(d)}s</p>`);
+var frag = $.template(`<p autocapitalize="${`w${$.stringify(o)}r${$.stringify(d)}s`}" contenteditable="${boolean}">boolean is ${$.stringify(boolean)} and autocapitalize is w${$.stringify(o)}r${$.stringify(d)}s</p> <img src="${url}" alt="example">`, true);
 
 export default function Hoist_unmodified_var($$anchor, $$props) {
 	$.push($$props, true);
@@ -18,12 +19,14 @@ export default function Hoist_unmodified_var($$anchor, $$props) {
 	value += 'd';
 
 	/* Init */
-	var p = $.open($$anchor, true, frag);
+	var fragment = $.open_frag($$anchor, true, frag);
+	var node = $.child_frag(fragment);
 
-	$.attr(p, "itemid", `w${$.stringify(o)}r${$.stringify(value)}s`);
+	$.attr(node, "itemid", `w${$.stringify(o)}r${$.stringify(value)}s`);
 
-	var text = $.child(p);
+	var text = $.child(node);
+	var img = $.sibling($.sibling(node));
 
-	$.close($$anchor, p);
+	$.close_frag($$anchor, fragment);
 	$.pop();
 }
diff --git a/packages/svelte/tests/snapshot/samples/hoist-unmodified-var/_expected/server/index.svelte.js b/packages/svelte/tests/snapshot/samples/hoist-unmodified-var/_expected/server/index.svelte.js
index 20d3af1f0c..90c098232d 100644
--- a/packages/svelte/tests/snapshot/samples/hoist-unmodified-var/_expected/server/index.svelte.js
+++ b/packages/svelte/tests/snapshot/samples/hoist-unmodified-var/_expected/server/index.svelte.js
@@ -4,6 +4,7 @@ import * as $ from "svelte/internal/server";
 
 const o = 'o';
 const d = 'd';
+const url = new URL('foobar.png', 'https://www.example.com/').href;
 
 export default function Hoist_unmodified_var($$payload, $$props) {
 	$.push(true);
@@ -12,6 +13,6 @@ export default function Hoist_unmodified_var($$payload, $$props) {
 	let value = 'd';
 
 	value += 'd';
-	$$payload.out += `<p${$.attr("autocapitalize", `w${$.stringify(o)}r${$.stringify(d)}s`, false)}${$.attr("itemid", `w${$.stringify(o)}r${$.stringify(value)}s`, false)}${$.attr("contenteditable", boolean, false)}>boolean is ${$.escape(boolean)} and autocapitalize is w${$.escape(o)}r${$.escape(d)}s</p>`;
+	$$payload.out += `<p${$.attr("autocapitalize", `w${$.stringify(o)}r${$.stringify(d)}s`, false)}${$.attr("itemid", `w${$.stringify(o)}r${$.stringify(value)}s`, false)}${$.attr("contenteditable", boolean, false)}>boolean is ${$.escape(boolean)} and autocapitalize is w${$.escape(o)}r${$.escape(d)}s</p> <img${$.attr("src", url, false)} alt="example">`;
 	$.pop();
-}
\ No newline at end of file
+}
diff --git a/packages/svelte/tests/snapshot/samples/hoist-unmodified-var/index.svelte b/packages/svelte/tests/snapshot/samples/hoist-unmodified-var/index.svelte
index 261937285c..ba4d51328e 100644
--- a/packages/svelte/tests/snapshot/samples/hoist-unmodified-var/index.svelte
+++ b/packages/svelte/tests/snapshot/samples/hoist-unmodified-var/index.svelte
@@ -3,6 +3,7 @@
 <script context="module">
 	const o = 'o';
 	const d = 'd';
+	const url = new URL('foobar.png', 'https://www.example.com/').href
 </script>
 
 <script>
@@ -12,3 +13,5 @@
 </script>
 
 <p autocapitalize="w{o}r{d}s" itemid="w{o}r{value}s" contenteditable={boolean}>boolean is {boolean} and autocapitalize is w{o}r{d}s</p>
+
+<img src={url} alt="example" />