diff --git a/.changeset/chilly-laws-juggle.md b/.changeset/chilly-laws-juggle.md
new file mode 100644
index 0000000000..9f7c4b89d9
--- /dev/null
+++ b/.changeset/chilly-laws-juggle.md
@@ -0,0 +1,5 @@
+---
+"svelte": patch
+---
+
+fix: relax `Component` type
diff --git a/packages/svelte/src/index.d.ts b/packages/svelte/src/index.d.ts
index 71c180d522..49207da0d5 100644
--- a/packages/svelte/src/index.d.ts
+++ b/packages/svelte/src/index.d.ts
@@ -129,7 +129,7 @@ export class SvelteComponent<
 export interface Component<
 	Props extends Record<string, any> = {},
 	Exports extends Record<string, any> = {},
-	Bindings extends keyof Props | '' = ''
+	Bindings extends keyof Props | '' = string
 > {
 	/**
 	 * @param internal An internal object used by Svelte. Do not use or modify.
diff --git a/packages/svelte/tests/types/component.ts b/packages/svelte/tests/types/component.ts
index b240d4a4be..047363947b 100644
--- a/packages/svelte/tests/types/component.ts
+++ b/packages/svelte/tests/types/component.ts
@@ -204,6 +204,8 @@ const functionComponent: Component<
 };
 functionComponent.element === HTMLElement;
 
+const bindingIsOkayToWiden: Component<any> = functionComponent;
+
 functionComponent(null as any, {
 	binding: true,
 	// @ts-expect-error
diff --git a/packages/svelte/types/index.d.ts b/packages/svelte/types/index.d.ts
index ee42b58ec4..acc19259c3 100644
--- a/packages/svelte/types/index.d.ts
+++ b/packages/svelte/types/index.d.ts
@@ -126,7 +126,7 @@ declare module 'svelte' {
 	export interface Component<
 		Props extends Record<string, any> = {},
 		Exports extends Record<string, any> = {},
-		Bindings extends keyof Props | '' = ''
+		Bindings extends keyof Props | '' = string
 	> {
 		/**
 		 * @param internal An internal object used by Svelte. Do not use or modify.
@@ -1990,7 +1990,7 @@ declare module 'svelte/legacy' {
 	 *
 	 * */
 	export function createClassComponent<Props extends Record<string, any>, Exports extends Record<string, any>, Events extends Record<string, any>, Slots extends Record<string, any>>(options: import("svelte").ComponentConstructorOptions<Props> & {
-		component: import("svelte").ComponentType<import("svelte").SvelteComponent<Props, Events, Slots>> | import("svelte").Component<Props, any, "">;
+		component: import("svelte").ComponentType<import("svelte").SvelteComponent<Props, Events, Slots>> | import("svelte").Component<Props, any, string>;
 		immutable?: boolean | undefined;
 		hydrate?: boolean | undefined;
 		recover?: boolean | undefined;
@@ -2001,7 +2001,7 @@ declare module 'svelte/legacy' {
 	 * @deprecated Use this only as a temporary solution to migrate your imperative component code to Svelte 5.
 	 *
 	 * */
-	export function asClassComponent<Props extends Record<string, any>, Exports extends Record<string, any>, Events extends Record<string, any>, Slots extends Record<string, any>>(component: import("svelte").SvelteComponent<Props, Events, Slots> | import("svelte").Component<Props, any, "">): import("svelte").ComponentType<import("svelte").SvelteComponent<Props, Events, Slots> & Exports>;
+	export function asClassComponent<Props extends Record<string, any>, Exports extends Record<string, any>, Events extends Record<string, any>, Slots extends Record<string, any>>(component: import("svelte").SvelteComponent<Props, Events, Slots> | import("svelte").Component<Props, any, string>): import("svelte").ComponentType<import("svelte").SvelteComponent<Props, Events, Slots> & Exports>;
 	/**
 	 * Runs the given function once immediately on the server, and works like `$effect.pre` on the client.
 	 *