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 9c623f90c4..e4c5c115f5 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
@@ -2189,8 +2189,11 @@ export const template_visitors = {
 			{ ...context, state: child_state }
 		);
 
-		// TODO only do this when necessary
-		child_state.init.push(b.stmt(b.call('$.reset', context.state.node)));
+		// If `hydrate_node` is set inside the element, we need to reset it
+		// after the element has been hydrated
+		if (trimmed.some((node) => node.type !== 'Text')) {
+			child_state.init.push(b.stmt(b.call('$.reset', context.state.node)));
+		}
 
 		if (has_declaration) {
 			context.state.init.push(
diff --git a/packages/svelte/tests/snapshot/samples/dynamic-attributes-casing/_expected/client/main.svelte.js b/packages/svelte/tests/snapshot/samples/dynamic-attributes-casing/_expected/client/main.svelte.js
index 3754e08c09..aa4d22d99a 100644
--- a/packages/svelte/tests/snapshot/samples/dynamic-attributes-casing/_expected/client/main.svelte.js
+++ b/packages/svelte/tests/snapshot/samples/dynamic-attributes-casing/_expected/client/main.svelte.js
@@ -9,31 +9,19 @@ export default function Main($$anchor) {
 	let y = () => 'test';
 	var fragment = root();
 	var div = $.first_child(fragment);
-
-	$.reset(div);
-
 	var svg = $.sibling($.sibling(div, true));
-
-	$.reset(svg);
-
 	var custom_element = $.sibling($.sibling(svg, true));
-
-	$.reset(custom_element);
-
 	var div_1 = $.sibling($.sibling(custom_element, true));
 
 	$.template_effect(() => $.set_attribute(div_1, "foobar", y()));
-	$.reset(div_1);
 
 	var svg_1 = $.sibling($.sibling(div_1, true));
 
 	$.template_effect(() => $.set_attribute(svg_1, "viewBox", y()));
-	$.reset(svg_1);
 
 	var custom_element_1 = $.sibling($.sibling(svg_1, true));
 
 	$.template_effect(() => $.set_custom_element_data(custom_element_1, "fooBar", y()));
-	$.reset(custom_element_1);
 
 	$.template_effect(() => {
 		$.set_attribute(div, "foobar", x);
diff --git a/packages/svelte/tests/snapshot/samples/hello-world/_expected/client/index.svelte.js b/packages/svelte/tests/snapshot/samples/hello-world/_expected/client/index.svelte.js
index a92490f4a8..92354d8f14 100644
--- a/packages/svelte/tests/snapshot/samples/hello-world/_expected/client/index.svelte.js
+++ b/packages/svelte/tests/snapshot/samples/hello-world/_expected/client/index.svelte.js
@@ -6,6 +6,5 @@ var root = $.template(`<h1>hello world</h1>`);
 export default function Hello_world($$anchor) {
 	var h1 = root();
 
-	$.reset(h1);
 	$.append($$anchor, h1);
 }
\ No newline at end of file
diff --git a/packages/svelte/tests/snapshot/samples/hmr/_expected/client/index.svelte.js b/packages/svelte/tests/snapshot/samples/hmr/_expected/client/index.svelte.js
index f7b8fb07c4..6cb6845c1c 100644
--- a/packages/svelte/tests/snapshot/samples/hmr/_expected/client/index.svelte.js
+++ b/packages/svelte/tests/snapshot/samples/hmr/_expected/client/index.svelte.js
@@ -6,7 +6,6 @@ var root = $.template(`<h1>hello world</h1>`);
 function Hmr($$anchor) {
 	var h1 = root();
 
-	$.reset(h1);
 	$.append($$anchor, h1);
 }
 
diff --git a/packages/svelte/tests/snapshot/samples/state-proxy-literal/_expected/client/index.svelte.js b/packages/svelte/tests/snapshot/samples/state-proxy-literal/_expected/client/index.svelte.js
index 1546210cf6..0f2d6f4200 100644
--- a/packages/svelte/tests/snapshot/samples/state-proxy-literal/_expected/client/index.svelte.js
+++ b/packages/svelte/tests/snapshot/samples/state-proxy-literal/_expected/client/index.svelte.js
@@ -17,17 +17,14 @@ export default function State_proxy_literal($$anchor) {
 	var input = $.first_child(fragment);
 
 	$.remove_input_defaults(input);
-	$.reset(input);
 
 	var input_1 = $.sibling($.sibling(input, true));
 
 	$.remove_input_defaults(input_1);
-	$.reset(input_1);
 
 	var button = $.sibling($.sibling(input_1, true));
 
 	button.__click = [reset, str, tpl];
-	$.reset(button);
 	$.bind_value(input, () => $.get(str), ($$value) => $.set(str, $$value));
 	$.bind_value(input_1, () => $.get(tpl), ($$value) => $.set(tpl, $$value));
 	$.append($$anchor, fragment);