diff --git a/.changeset/swift-ravens-hunt.md b/.changeset/swift-ravens-hunt.md
new file mode 100644
index 0000000000..d62ff1ca51
--- /dev/null
+++ b/.changeset/swift-ravens-hunt.md
@@ -0,0 +1,5 @@
+---
+'svelte': patch
+---
+
+fix: improve template text node serialization
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 855a795284..5b4003f180 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
@@ -1382,13 +1382,17 @@ function process_children(nodes, parent, { visit, state }) {
 
 	/**
 	 * @param {Sequence} sequence
+	 * @param {boolean} in_fragment
 	 */
-	function flush_sequence(sequence) {
+	function flush_sequence(sequence, in_fragment) {
 		if (sequence.length === 1) {
 			const node = sequence[0];
 
-			if (node.type === 'Text') {
+			if ((in_fragment && node.type === 'ExpressionTag') || node.type === 'Text') {
 				expression = b.call('$.sibling', expression);
+			}
+
+			if (node.type === 'Text') {
 				state.template.push(node.raw);
 				return;
 			}
@@ -1475,7 +1479,7 @@ function process_children(nodes, parent, { visit, state }) {
 			sequence.push(node);
 		} else {
 			if (sequence.length > 0) {
-				flush_sequence(sequence);
+				flush_sequence(sequence, true);
 				sequence = [];
 			}
 
@@ -1519,7 +1523,7 @@ function process_children(nodes, parent, { visit, state }) {
 	}
 
 	if (sequence.length > 0) {
-		flush_sequence(sequence);
+		flush_sequence(sequence, false);
 	}
 }
 
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 37f4cc757f..79153baed6 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
@@ -173,7 +173,7 @@ function process_children(nodes, parent, { visit, state }) {
 			}
 
 			const expression = b.call(
-				'$.escape',
+				'$.escape_text',
 				/** @type {import('estree').Expression} */ (visit(node.expression))
 			);
 			state.template.push(t_expression(expression));
diff --git a/packages/svelte/src/internal/server/index.js b/packages/svelte/src/internal/server/index.js
index 4fe85992f4..dc0afe7ec2 100644
--- a/packages/svelte/src/internal/server/index.js
+++ b/packages/svelte/src/internal/server/index.js
@@ -150,6 +150,17 @@ export function escape(value, is_attr = false) {
 	return escaped + str.substring(last);
 }
 
+/**
+ * @template V
+ * @param {V} value
+ * @returns {string}
+ */
+export function escape_text(value) {
+	const escaped = escape(value);
+	// If the value is empty, then ensure we put a space so that it creates a text node on the client
+	return escaped === '' ? ' ' : escaped;
+}
+
 /**
  * @param {Payload} payload
  * @param {(head_payload: Payload['head']) => void} fn
diff --git a/packages/svelte/tests/runtime-runes/samples/event-attribute-template/_config.js b/packages/svelte/tests/runtime-runes/samples/event-attribute-template/_config.js
new file mode 100644
index 0000000000..340b0ff4c9
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/event-attribute-template/_config.js
@@ -0,0 +1,15 @@
+import { flushSync } from 'svelte';
+import { test } from '../../test';
+
+export default test({
+	async test({ assert, target, component }) {
+		const [b1] = target.querySelectorAll('button');
+
+		flushSync(() => {
+			b1?.click();
+		});
+
+		await Promise.resolve();
+		assert.deepEqual(component.log, ['onclick']);
+	}
+});
diff --git a/packages/svelte/tests/runtime-runes/samples/event-attribute-template/main.svelte b/packages/svelte/tests/runtime-runes/samples/event-attribute-template/main.svelte
new file mode 100644
index 0000000000..66db0b6013
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/event-attribute-template/main.svelte
@@ -0,0 +1,10 @@
+<script>
+	const {log = []} = $props();
+
+	function send() {
+		log.push("onclick")
+	}
+</script>
+
+{undefined}<hr/>
+<button onclick={send}>Send Event</button>