diff --git a/packages/svelte/src/compiler/phases/2-analyze/index.js b/packages/svelte/src/compiler/phases/2-analyze/index.js
index daf89b6141..82bfa62d67 100644
--- a/packages/svelte/src/compiler/phases/2-analyze/index.js
+++ b/packages/svelte/src/compiler/phases/2-analyze/index.js
@@ -1109,10 +1109,30 @@ const common_visitors = {
 			if (attribute.type === 'Attribute') {
 				if (attribute.name === 'xmlns' && is_text_attribute(attribute)) {
 					node.metadata.svg = attribute.value[0].data === namespace_svg;
-					break;
+					return;
 				}
 			}
 		}
+
+		for (let i = context.path.length - 1; i >= 0; i--) {
+			const ancestor = context.path[i];
+			if (
+				ancestor.type === 'Component' ||
+				ancestor.type === 'SvelteComponent' ||
+				ancestor.type === 'SvelteFragment' ||
+				ancestor.type === 'SnippetBlock'
+			) {
+				// Inside a slot or a snippet -> this resets the namespace, so we can't determine it
+				return;
+			}
+			if (ancestor.type === 'SvelteElement' || ancestor.type === 'RegularElement') {
+				node.metadata.svg =
+					ancestor.type === 'RegularElement' && ancestor.name === 'foreignObject'
+						? false
+						: ancestor.metadata.svg;
+				return;
+			}
+		}
 	}
 };
 
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 1da9dd7f6b..9fed2b7edb 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
@@ -9,7 +9,7 @@ import {
 import { binding_properties } from '../../../bindings.js';
 import {
 	clean_nodes,
-	determine_element_namespace,
+	determine_namespace_for_children,
 	escape_html,
 	infer_namespace
 } from '../../utils.js';
@@ -1683,6 +1683,7 @@ export const template_visitors = {
 		context.state.template.push(`<!--${node.data}-->`);
 	},
 	HtmlTag(node, context) {
+		console.log('html tag');
 		context.state.template.push('<!>');
 
 		// push into init, so that bindings run afterwards, which might trigger another run and override hydration
@@ -1851,7 +1852,7 @@ export const template_visitors = {
 		const metadata = context.state.metadata;
 		const child_metadata = {
 			...context.state.metadata,
-			namespace: determine_element_namespace(node, context.state.metadata.namespace, context.path)
+			namespace: determine_namespace_for_children(node, context.state.metadata.namespace)
 		};
 
 		context.state.template.push(`<${node.name}`);
@@ -2076,11 +2077,7 @@ export const template_visitors = {
 		/** @type {import('estree').ExpressionStatement[]} */
 		const lets = [];
 
-		const namespace = determine_element_namespace(
-			node,
-			context.state.metadata.namespace,
-			context.path
-		);
+		const namespace = determine_namespace_for_children(node, context.state.metadata.namespace);
 
 		// Create a temporary context which picks up the init/update statements.
 		// They'll then be added to the function parameter of $.element
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 3aba32e22f..1d1b2f8e53 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
@@ -15,7 +15,7 @@ import {
 } from '../../constants.js';
 import {
 	clean_nodes,
-	determine_element_namespace,
+	determine_namespace_for_children,
 	escape_html,
 	infer_namespace,
 	transform_inspect_rune
@@ -1142,7 +1142,7 @@ const template_visitors = {
 	RegularElement(node, context) {
 		const metadata = {
 			...context.state.metadata,
-			namespace: determine_element_namespace(node, context.state.metadata.namespace, context.path)
+			namespace: determine_namespace_for_children(node, context.state.metadata.namespace)
 		};
 
 		context.state.template.push(t_string(`<${node.name}`));
@@ -1234,7 +1234,7 @@ const template_visitors = {
 
 		const metadata = {
 			...context.state.metadata,
-			namespace: determine_element_namespace(node, context.state.metadata.namespace, context.path)
+			namespace: determine_namespace_for_children(node, context.state.metadata.namespace)
 		};
 		/** @type {import('./types').ComponentContext} */
 		const inner_context = {
diff --git a/packages/svelte/src/compiler/phases/3-transform/utils.js b/packages/svelte/src/compiler/phases/3-transform/utils.js
index 5ad21f5594..ceb8838c90 100644
--- a/packages/svelte/src/compiler/phases/3-transform/utils.js
+++ b/packages/svelte/src/compiler/phases/3-transform/utils.js
@@ -188,7 +188,7 @@ export function clean_nodes(
 }
 
 /**
- * Infers the new namespace for the children of a node.
+ * Infers the namespace for the children of a node that should be used when creating the `$.template(...)`.
  * @param {import('#compiler').Namespace} namespace
  * @param {import('#compiler').SvelteNode} parent
  * @param {import('#compiler').SvelteNode[]} nodes
@@ -201,19 +201,28 @@ export function infer_namespace(namespace, parent, nodes, path) {
 				path.at(-1)
 			: parent;
 
-	if (
-		namespace !== 'foreign' &&
+	if (namespace !== 'foreign') {
+		if (parent_node?.type === 'RegularElement' && parent_node.name === 'foreignObject') {
+			return 'html';
+		}
+
+		if (parent_node?.type === 'RegularElement' || parent_node?.type === 'SvelteElement') {
+			return parent_node.metadata.svg ? 'svg' : 'html';
+		}
+
 		// Re-evaluate the namespace inside slot nodes that reset the namespace
-		(parent_node === undefined ||
+		if (
+			parent_node === undefined ||
 			parent_node.type === 'Root' ||
 			parent_node.type === 'Component' ||
 			parent_node.type === 'SvelteComponent' ||
 			parent_node.type === 'SvelteFragment' ||
-			parent_node.type === 'SnippetBlock')
-	) {
-		const new_namespace = check_nodes_for_namespace(nodes, 'keep');
-		if (new_namespace !== 'keep' && new_namespace !== 'maybe_html') {
-			namespace = new_namespace;
+			parent_node.type === 'SnippetBlock'
+		) {
+			const new_namespace = check_nodes_for_namespace(nodes, 'keep');
+			if (new_namespace !== 'keep' && new_namespace !== 'maybe_html') {
+				return new_namespace;
+			}
 		}
 	}
 
@@ -279,48 +288,21 @@ function check_nodes_for_namespace(nodes, namespace) {
 }
 
 /**
+ * Determines the namespace the children of this node are in.
  * @param {import('#compiler').RegularElement | import('#compiler').SvelteElement} node
  * @param {import('#compiler').Namespace} namespace
- * @param {import('#compiler').SvelteNode[]} path
  * @returns {import('#compiler').Namespace}
  */
-export function determine_element_namespace(node, namespace, path) {
-	if (namespace !== 'foreign') {
-		let parent;
-		for (let i = path.length - 1; i >= 0; i--) {
-			parent = path[i];
-			if (parent.type === 'Fragment') {
-				parent = path[i - 1];
-				i--;
-			}
-			if (
-				parent?.type !== 'EachBlock' &&
-				parent?.type !== 'IfBlock' &&
-				parent?.type !== 'KeyBlock' &&
-				parent?.type !== 'AwaitBlock'
-			) {
-				break;
-			}
-		}
+export function determine_namespace_for_children(node, namespace) {
+	if (namespace === 'foreign') {
+		return namespace;
+	}
 
-		if (parent?.type === 'RegularElement' && parent.name === 'foreignObject') {
-			return 'html';
-		} else if (
-			namespace !== 'svg' ||
-			parent?.type === 'Component' ||
-			parent?.type === 'SvelteComponent' ||
-			parent?.type === 'SvelteFragment' ||
-			parent?.type === 'SnippetBlock'
-		) {
-			if (node.metadata.svg) {
-				return 'svg';
-			} else {
-				return 'html';
-			}
-		}
+	if (node.name === 'foreignObject') {
+		return 'html';
 	}
 
-	return namespace;
+	return node.metadata.svg ? 'svg' : 'html';
 }
 
 /**
diff --git a/packages/svelte/src/compiler/types/template.d.ts b/packages/svelte/src/compiler/types/template.d.ts
index 91c156fe19..6b0d7e50c4 100644
--- a/packages/svelte/src/compiler/types/template.d.ts
+++ b/packages/svelte/src/compiler/types/template.d.ts
@@ -309,7 +309,10 @@ export interface SvelteElement extends BaseElement {
 	name: 'svelte:element';
 	tag: Expression;
 	metadata: {
-		/** `true` if this is an svg element */
+		/**
+		 * `true` if this is definitely an svg element.
+		 * `false` could still mean that it is one, but we can't know statically.
+		 */
 		svg: boolean;
 	};
 }
diff --git a/packages/svelte/src/internal/client/render.js b/packages/svelte/src/internal/client/render.js
index 03e79ab051..25e09e44f9 100644
--- a/packages/svelte/src/internal/client/render.js
+++ b/packages/svelte/src/internal/client/render.js
@@ -1636,7 +1636,7 @@ export function element(anchor_node, tag_fn, namespace, render_fn) {
 				namespace ??
 				(tag === 'svg'
 					? namespace_svg
-					: anchor_node.parentElement?.tagName === 'FOREIGNOBJECT'
+					: anchor_node.parentElement?.tagName === 'foreignObject'
 						? null
 						: anchor_node.parentElement?.namespaceURI ?? null);
 			const next_element = tag