diff --git a/packages/svelte/src/internal/client/dom/blocks/boundary.js b/packages/svelte/src/internal/client/dom/blocks/boundary.js
index d7a53da1d1..03cec4fd2f 100644
--- a/packages/svelte/src/internal/client/dom/blocks/boundary.js
+++ b/packages/svelte/src/internal/client/dom/blocks/boundary.js
@@ -1,6 +1,5 @@
 /** @import { Effect, TemplateNode, } from '#client' */
-
-import { BOUNDARY_EFFECT, EFFECT_TRANSPARENT } from '#client/constants';
+import { BOUNDARY_EFFECT, EFFECT_PRESERVED, EFFECT_TRANSPARENT } from '#client/constants';
 import { component_context, set_component_context } from '../../context.js';
 import { invoke_error_boundary } from '../../error-handling.js';
 import { block, branch, destroy_effect, pause_effect } from '../../reactivity/effects.js';
@@ -21,116 +20,170 @@ import {
 import { queue_micro_task } from '../task.js';
 
 /**
- * @param {Effect} boundary
- * @param {() => void} fn
+ * @typedef {{
+ * 	 onerror?: (error: unknown, reset: () => void) => void;
+ *   failed?: (anchor: Node, error: () => unknown, reset: () => () => void) => void;
+ * }} BoundaryProps
  */
-function with_boundary(boundary, fn) {
-	var previous_effect = active_effect;
-	var previous_reaction = active_reaction;
-	var previous_ctx = component_context;
-
-	set_active_effect(boundary);
-	set_active_reaction(boundary);
-	set_component_context(boundary.ctx);
-
-	try {
-		fn();
-	} finally {
-		set_active_effect(previous_effect);
-		set_active_reaction(previous_reaction);
-		set_component_context(previous_ctx);
-	}
-}
+
+var flags = EFFECT_TRANSPARENT | EFFECT_PRESERVED | BOUNDARY_EFFECT;
 
 /**
  * @param {TemplateNode} node
- * @param {{
- * 	 onerror?: (error: unknown, reset: () => void) => void,
- *   failed?: (anchor: Node, error: () => unknown, reset: () => () => void) => void
- * }} props
- * @param {((anchor: Node) => void)} boundary_fn
+ * @param {BoundaryProps} props
+ * @param {((anchor: Node) => void)} children
  * @returns {void}
  */
-export function boundary(node, props, boundary_fn) {
-	var anchor = node;
+export function boundary(node, props, children) {
+	new Boundary(node, props, children);
+}
+
+export class Boundary {
+	/** @type {TemplateNode} */
+	#anchor;
+
+	/** @type {TemplateNode} */
+	#hydrate_open;
+
+	/** @type {BoundaryProps} */
+	#props;
+
+	/** @type {((anchor: Node) => void)} */
+	#children;
 
 	/** @type {Effect} */
-	var boundary_effect;
-
-	block(() => {
-		var boundary = /** @type {Effect} */ (active_effect);
-		var hydrate_open = hydrate_node;
-		var is_creating_fallback = false;
-
-		// We re-use the effect's fn property to avoid allocation of an additional field
-		boundary.fn = (/** @type {unknown}} */ error) => {
-			var onerror = props.onerror;
-			let failed = props.failed;
-
-			// If we have nothing to capture the error, or if we hit an error while
-			// rendering the fallback, re-throw for another boundary to handle
-			if ((!onerror && !failed) || is_creating_fallback) {
-				throw error;
-			}
+	#effect;
 
-			var reset = () => {
-				pause_effect(boundary_effect);
+	/** @type {Effect | null} */
+	#main_effect = null;
 
-				with_boundary(boundary, () => {
-					is_creating_fallback = false;
-					boundary_effect = branch(() => boundary_fn(anchor));
-				});
-			};
+	/** @type {Effect | null} */
+	#failed_effect = null;
 
-			var previous_reaction = active_reaction;
+	#is_creating_fallback = false;
 
-			try {
-				set_active_reaction(null);
-				onerror?.(error, reset);
-			} finally {
-				set_active_reaction(previous_reaction);
+	/**
+	 * @param {TemplateNode} node
+	 * @param {BoundaryProps} props
+	 * @param {((anchor: Node) => void)} children
+	 */
+	constructor(node, props, children) {
+		this.#anchor = node;
+		this.#props = props;
+		this.#children = children;
+
+		this.#hydrate_open = hydrate_node;
+
+		this.#effect = block(() => {
+			/** @type {Effect} */ (active_effect).b = this;
+
+			if (hydrating) {
+				hydrate_next();
 			}
 
-			if (boundary_effect) {
-				destroy_effect(boundary_effect);
-			} else if (hydrating) {
-				set_hydrate_node(hydrate_open);
-				next();
-				set_hydrate_node(remove_nodes());
+			try {
+				this.#main_effect = branch(() => children(this.#anchor));
+			} catch (error) {
+				this.error(error);
 			}
+		}, flags);
 
-			if (failed) {
-				// Render the `failed` snippet in a microtask
-				queue_micro_task(() => {
-					with_boundary(boundary, () => {
-						is_creating_fallback = true;
-
-						try {
-							boundary_effect = branch(() => {
-								failed(
-									anchor,
-									() => error,
-									() => reset
-								);
-							});
-						} catch (error) {
-							invoke_error_boundary(error, /** @type {Effect} */ (boundary.parent));
-						}
-
-						is_creating_fallback = false;
-					});
+		if (hydrating) {
+			this.#anchor = hydrate_node;
+		}
+	}
+
+	/**
+	 * @param {() => Effect | null} fn
+	 */
+	#run(fn) {
+		var previous_effect = active_effect;
+		var previous_reaction = active_reaction;
+		var previous_ctx = component_context;
+
+		set_active_effect(this.#effect);
+		set_active_reaction(this.#effect);
+		set_component_context(this.#effect.ctx);
+
+		try {
+			return fn();
+		} finally {
+			set_active_effect(previous_effect);
+			set_active_reaction(previous_reaction);
+			set_component_context(previous_ctx);
+		}
+	}
+
+	/** @param {unknown} error */
+	error(error) {
+		var onerror = this.#props.onerror;
+		let failed = this.#props.failed;
+
+		const reset = () => {
+			if (this.#failed_effect !== null) {
+				pause_effect(this.#failed_effect, () => {
+					this.#failed_effect = null;
 				});
 			}
+
+			this.#main_effect = this.#run(() => {
+				this.#is_creating_fallback = false;
+				return branch(() => this.#children(this.#anchor));
+			});
 		};
 
-		if (hydrating) {
-			hydrate_next();
+		// If we have nothing to capture the error, or if we hit an error while
+		// rendering the fallback, re-throw for another boundary to handle
+		if (this.#is_creating_fallback || (!onerror && !failed)) {
+			throw error;
+		}
+
+		var previous_reaction = active_reaction;
+
+		try {
+			set_active_reaction(null);
+			onerror?.(error, reset);
+		} finally {
+			set_active_reaction(previous_reaction);
 		}
 
-		boundary_effect = branch(() => boundary_fn(anchor));
-	}, EFFECT_TRANSPARENT | BOUNDARY_EFFECT);
+		if (this.#main_effect) {
+			destroy_effect(this.#main_effect);
+			this.#main_effect = null;
+		}
 
-	if (hydrating) {
-		anchor = hydrate_node;
+		if (this.#failed_effect) {
+			destroy_effect(this.#failed_effect);
+			this.#failed_effect = null;
+		}
+
+		if (hydrating) {
+			set_hydrate_node(this.#hydrate_open);
+			next();
+			set_hydrate_node(remove_nodes());
+		}
+
+		if (failed) {
+			queue_micro_task(() => {
+				this.#failed_effect = this.#run(() => {
+					this.#is_creating_fallback = true;
+
+					try {
+						return branch(() => {
+							failed(
+								this.#anchor,
+								() => error,
+								() => reset
+							);
+						});
+					} catch (error) {
+						invoke_error_boundary(error, /** @type {Effect} */ (this.#effect.parent));
+						return null;
+					} finally {
+						this.#is_creating_fallback = false;
+					}
+				});
+			});
+		}
 	}
 }
diff --git a/packages/svelte/src/internal/client/error-handling.js b/packages/svelte/src/internal/client/error-handling.js
index 99f3ed6cd4..378f7408ef 100644
--- a/packages/svelte/src/internal/client/error-handling.js
+++ b/packages/svelte/src/internal/client/error-handling.js
@@ -1,4 +1,5 @@
 /** @import { Effect } from '#client' */
+/** @import { Boundary } from './dom/blocks/boundary.js' */
 import { DEV } from 'esm-env';
 import { FILENAME } from '../../constants.js';
 import { is_firefox } from './dom/operations.js';
@@ -39,8 +40,7 @@ export function invoke_error_boundary(error, effect) {
 	while (effect !== null) {
 		if ((effect.f & BOUNDARY_EFFECT) !== 0) {
 			try {
-				// @ts-expect-error
-				effect.fn(error);
+				/** @type {Boundary} */ (effect.b).error(error);
 				return;
 			} catch {}
 		}
diff --git a/packages/svelte/src/internal/client/reactivity/effects.js b/packages/svelte/src/internal/client/reactivity/effects.js
index 702c410ce8..7570064c37 100644
--- a/packages/svelte/src/internal/client/reactivity/effects.js
+++ b/packages/svelte/src/internal/client/reactivity/effects.js
@@ -104,6 +104,7 @@ function create_effect(type, fn, sync, push = true) {
 		last: null,
 		next: null,
 		parent,
+		b: parent && parent.b,
 		prev: null,
 		teardown: null,
 		transitions: null,
diff --git a/packages/svelte/src/internal/client/reactivity/types.d.ts b/packages/svelte/src/internal/client/reactivity/types.d.ts
index 80c4155705..90f922df68 100644
--- a/packages/svelte/src/internal/client/reactivity/types.d.ts
+++ b/packages/svelte/src/internal/client/reactivity/types.d.ts
@@ -5,6 +5,7 @@ import type {
 	TemplateNode,
 	TransitionManager
 } from '#client';
+import type { Boundary } from '../dom/blocks/boundary';
 
 export interface Signal {
 	/** Flags bitmask */
@@ -84,6 +85,8 @@ export interface Effect extends Reaction {
 	last: null | Effect;
 	/** Parent effect */
 	parent: Effect | null;
+	/** The boundary this effect belongs to */
+	b: Boundary | null;
 	/** Dev only */
 	component_function?: any;
 	/** Dev only. Only set for certain block effects. Contains a reference to the stack that represents the render tree */