diff --git a/.changeset/four-yaks-boil.md b/.changeset/four-yaks-boil.md
new file mode 100644
index 0000000000..ede6c1de19
--- /dev/null
+++ b/.changeset/four-yaks-boil.md
@@ -0,0 +1,5 @@
+---
+'svelte': patch
+---
+
+breaking: replace `$state.frozen` with `$state.raw`
diff --git a/packages/svelte/messages/client-errors/errors.md b/packages/svelte/messages/client-errors/errors.md
index f0ca476ff1..e509c970a2 100644
--- a/packages/svelte/messages/client-errors/errors.md
+++ b/packages/svelte/messages/client-errors/errors.md
@@ -64,10 +64,6 @@
 
 > The `%rune%` rune is only available inside `.svelte` and `.svelte.js/ts` files
 
-## state_frozen_invalid_argument
-
-> The argument to `$state.frozen(...)` cannot be an object created with `$state(...)`. You should create a copy of it first, for example with `$state.snapshot`
-
 ## state_prototype_fixed
 
 > Cannot set prototype of `$state` object
diff --git a/packages/svelte/src/ambient.d.ts b/packages/svelte/src/ambient.d.ts
index 63a3873d3f..82242cb494 100644
--- a/packages/svelte/src/ambient.d.ts
+++ b/packages/svelte/src/ambient.d.ts
@@ -102,12 +102,13 @@ declare namespace $state {
 						: never;
 
 	/**
-	 * Declares reactive read-only state that is shallowly immutable.
+	 * Declares state that is _not_ made deeply reactive — instead of mutating it,
+	 * you must reassign it.
 	 *
 	 * Example:
 	 * ```ts
 	 * <script>
-	 *   let items = $state.frozen([0]);
+	 *   let items = $state.raw([0]);
 	 *
 	 *   const addItem = () => {
 	 *     items = [...items, items.length];
@@ -123,8 +124,8 @@ declare namespace $state {
 	 *
 	 * @param initial The initial value
 	 */
-	export function frozen<T>(initial: T): Readonly<T>;
-	export function frozen<T>(): Readonly<T> | undefined;
+	export function raw<T>(initial: T): T;
+	export function raw<T>(): T | undefined;
 	/**
 	 * To take a static snapshot of a deeply reactive `$state` proxy, use `$state.snapshot`:
 	 *
diff --git a/packages/svelte/src/compiler/phases/2-analyze/visitors/BindDirective.js b/packages/svelte/src/compiler/phases/2-analyze/visitors/BindDirective.js
index ad70cd2717..c1557ff600 100644
--- a/packages/svelte/src/compiler/phases/2-analyze/visitors/BindDirective.js
+++ b/packages/svelte/src/compiler/phases/2-analyze/visitors/BindDirective.js
@@ -34,7 +34,7 @@ export function BindDirective(node, context) {
 			node.name !== 'this' && // bind:this also works for regular variables
 			(!binding ||
 				(binding.kind !== 'state' &&
-					binding.kind !== 'frozen_state' &&
+					binding.kind !== 'raw_state' &&
 					binding.kind !== 'prop' &&
 					binding.kind !== 'bindable_prop' &&
 					binding.kind !== 'each' &&
diff --git a/packages/svelte/src/compiler/phases/2-analyze/visitors/CallExpression.js b/packages/svelte/src/compiler/phases/2-analyze/visitors/CallExpression.js
index 57cdae0c66..92edd00739 100644
--- a/packages/svelte/src/compiler/phases/2-analyze/visitors/CallExpression.js
+++ b/packages/svelte/src/compiler/phases/2-analyze/visitors/CallExpression.js
@@ -73,7 +73,7 @@ export function CallExpression(node, context) {
 			break;
 
 		case '$state':
-		case '$state.frozen':
+		case '$state.raw':
 		case '$derived':
 		case '$derived.by':
 			if (
diff --git a/packages/svelte/src/compiler/phases/2-analyze/visitors/ExportNamedDeclaration.js b/packages/svelte/src/compiler/phases/2-analyze/visitors/ExportNamedDeclaration.js
index 694c047b9c..e50de112e0 100644
--- a/packages/svelte/src/compiler/phases/2-analyze/visitors/ExportNamedDeclaration.js
+++ b/packages/svelte/src/compiler/phases/2-analyze/visitors/ExportNamedDeclaration.js
@@ -32,7 +32,7 @@ export function ExportNamedDeclaration(node, context) {
 					e.derived_invalid_export(node);
 				}
 
-				if ((binding.kind === 'state' || binding.kind === 'frozen_state') && binding.reassigned) {
+				if ((binding.kind === 'state' || binding.kind === 'raw_state') && binding.reassigned) {
 					e.state_invalid_export(node);
 				}
 			}
diff --git a/packages/svelte/src/compiler/phases/2-analyze/visitors/ExportSpecifier.js b/packages/svelte/src/compiler/phases/2-analyze/visitors/ExportSpecifier.js
index 4660a450d6..320b81d086 100644
--- a/packages/svelte/src/compiler/phases/2-analyze/visitors/ExportSpecifier.js
+++ b/packages/svelte/src/compiler/phases/2-analyze/visitors/ExportSpecifier.js
@@ -26,7 +26,7 @@ export function ExportSpecifier(node, context) {
 			if (
 				binding !== null &&
 				(binding.kind === 'state' ||
-					binding.kind === 'frozen_state' ||
+					binding.kind === 'raw_state' ||
 					(binding.kind === 'normal' &&
 						(binding.declaration_kind === 'let' || binding.declaration_kind === 'var')))
 			) {
@@ -60,7 +60,7 @@ function validate_export(node, scope, name) {
 		e.derived_invalid_export(node);
 	}
 
-	if ((binding.kind === 'state' || binding.kind === 'frozen_state') && binding.reassigned) {
+	if ((binding.kind === 'state' || binding.kind === 'raw_state') && binding.reassigned) {
 		e.state_invalid_export(node);
 	}
 }
diff --git a/packages/svelte/src/compiler/phases/2-analyze/visitors/Identifier.js b/packages/svelte/src/compiler/phases/2-analyze/visitors/Identifier.js
index 8de4a419a7..7fb819bc17 100644
--- a/packages/svelte/src/compiler/phases/2-analyze/visitors/Identifier.js
+++ b/packages/svelte/src/compiler/phases/2-analyze/visitors/Identifier.js
@@ -1,7 +1,7 @@
 /** @import { Expression, Identifier } from 'estree' */
 /** @import { Context } from '../types' */
 import is_reference from 'is-reference';
-import { should_proxy_or_freeze } from '../../3-transform/client/utils.js';
+import { should_proxy } from '../../3-transform/client/utils.js';
 import * as e from '../../../errors.js';
 import * as w from '../../../warnings.js';
 import { is_rune } from '../../../../utils.js';
@@ -53,6 +53,10 @@ export function Identifier(node, context) {
 						e.rune_renamed(parent, '$effect.active', '$effect.tracking');
 					}
 
+					if (name === '$state.frozen') {
+						e.rune_renamed(parent, '$state.frozen', '$state.raw');
+					}
+
 					e.rune_invalid_name(parent, name);
 				}
 			}
@@ -132,8 +136,8 @@ export function Identifier(node, context) {
 					(binding.initial?.type === 'CallExpression' &&
 						binding.initial.arguments.length === 1 &&
 						binding.initial.arguments[0].type !== 'SpreadElement' &&
-						!should_proxy_or_freeze(binding.initial.arguments[0], context.state.scope)))) ||
-				binding.kind === 'frozen_state' ||
+						!should_proxy(binding.initial.arguments[0], context.state.scope)))) ||
+				binding.kind === 'raw_state' ||
 				binding.kind === 'derived') &&
 			// We're only concerned with reads here
 			(parent.type !== 'AssignmentExpression' || parent.left !== node) &&
diff --git a/packages/svelte/src/compiler/phases/2-analyze/visitors/VariableDeclarator.js b/packages/svelte/src/compiler/phases/2-analyze/visitors/VariableDeclarator.js
index 5025fab1d8..6d9b3e29b9 100644
--- a/packages/svelte/src/compiler/phases/2-analyze/visitors/VariableDeclarator.js
+++ b/packages/svelte/src/compiler/phases/2-analyze/visitors/VariableDeclarator.js
@@ -21,7 +21,7 @@ export function VariableDeclarator(node, context) {
 		// TODO feels like this should happen during scope creation?
 		if (
 			rune === '$state' ||
-			rune === '$state.frozen' ||
+			rune === '$state.raw' ||
 			rune === '$derived' ||
 			rune === '$derived.by' ||
 			rune === '$props'
@@ -32,8 +32,8 @@ export function VariableDeclarator(node, context) {
 				binding.kind =
 					rune === '$state'
 						? 'state'
-						: rune === '$state.frozen'
-							? 'frozen_state'
+						: rune === '$state.raw'
+							? 'raw_state'
 							: rune === '$derived' || rune === '$derived.by'
 								? 'derived'
 								: path.is_rest
diff --git a/packages/svelte/src/compiler/phases/2-analyze/visitors/shared/utils.js b/packages/svelte/src/compiler/phases/2-analyze/visitors/shared/utils.js
index 963882d396..0d3165e355 100644
--- a/packages/svelte/src/compiler/phases/2-analyze/visitors/shared/utils.js
+++ b/packages/svelte/src/compiler/phases/2-analyze/visitors/shared/utils.js
@@ -78,7 +78,7 @@ export function validate_no_const_assignment(node, argument, scope, is_binding)
 			// 	// This takes advantage of the fact that we don't assign initial for let directives and then/catch variables.
 			// 	// If we start doing that, we need another property on the binding to differentiate, or give up on the more precise error message.
 			// 	binding.kind !== 'state' &&
-			// 		binding.kind !== 'frozen_state' &&
+			// 		binding.kind !== 'raw_state' &&
 			// 		(binding.kind !== 'normal' || !binding.initial)
 			// );
 
diff --git a/packages/svelte/src/compiler/phases/3-transform/client/transform-client.js b/packages/svelte/src/compiler/phases/3-transform/client/transform-client.js
index 15c0de5df8..5bc3e123cc 100644
--- a/packages/svelte/src/compiler/phases/3-transform/client/transform-client.js
+++ b/packages/svelte/src/compiler/phases/3-transform/client/transform-client.js
@@ -271,19 +271,9 @@ export function client_component(analysis, options) {
 			}
 		}
 
-		if (binding?.kind === 'state' || binding?.kind === 'frozen_state') {
-			return [
-				getter,
-				b.set(alias ?? name, [
-					b.stmt(
-						b.call(
-							'$.set',
-							b.id(name),
-							b.call(binding.kind === 'state' ? '$.proxy' : '$.freeze', b.id('$$value'))
-						)
-					)
-				])
-			];
+		if (binding?.kind === 'state' || binding?.kind === 'raw_state') {
+			const value = binding.kind === 'state' ? b.call('$.proxy', b.id('$$value')) : b.id('$$value');
+			return [getter, b.set(alias ?? name, [b.stmt(b.call('$.set', b.id(name), value))])];
 		}
 
 		return getter;
diff --git a/packages/svelte/src/compiler/phases/3-transform/client/types.d.ts b/packages/svelte/src/compiler/phases/3-transform/client/types.d.ts
index cae1a10940..e44cc0239c 100644
--- a/packages/svelte/src/compiler/phases/3-transform/client/types.d.ts
+++ b/packages/svelte/src/compiler/phases/3-transform/client/types.d.ts
@@ -88,7 +88,7 @@ export interface ComponentClientTransformState extends ClientTransformState {
 }
 
 export interface StateField {
-	kind: 'state' | 'frozen_state' | 'derived' | 'derived_by';
+	kind: 'state' | 'raw_state' | 'derived' | 'derived_by';
 	id: PrivateIdentifier;
 }
 
diff --git a/packages/svelte/src/compiler/phases/3-transform/client/utils.js b/packages/svelte/src/compiler/phases/3-transform/client/utils.js
index 786cdc2761..1fc7798c99 100644
--- a/packages/svelte/src/compiler/phases/3-transform/client/utils.js
+++ b/packages/svelte/src/compiler/phases/3-transform/client/utils.js
@@ -8,7 +8,8 @@ import {
 	PROPS_IS_LAZY_INITIAL,
 	PROPS_IS_IMMUTABLE,
 	PROPS_IS_RUNES,
-	PROPS_IS_UPDATED
+	PROPS_IS_UPDATED,
+	PROPS_IS_BINDABLE
 } from '../../../../constants.js';
 import { dev } from '../../../state.js';
 import { get_value } from './visitors/shared/declarations.js';
@@ -20,7 +21,7 @@ import { get_value } from './visitors/shared/declarations.js';
  */
 export function is_state_source(binding, state) {
 	return (
-		(binding.kind === 'state' || binding.kind === 'frozen_state') &&
+		(binding.kind === 'state' || binding.kind === 'raw_state') &&
 		(!state.analysis.immutable || binding.reassigned || state.analysis.accessors)
 	);
 }
@@ -168,6 +169,10 @@ export function get_prop_source(binding, state, name, initial) {
 
 	let flags = 0;
 
+	if (binding.kind === 'bindable_prop') {
+		flags |= PROPS_IS_BINDABLE;
+	}
+
 	if (state.analysis.immutable) {
 		flags |= PROPS_IS_IMMUTABLE;
 	}
@@ -238,7 +243,7 @@ export function is_prop_source(binding, state) {
  * @param {Expression} node
  * @param {Scope | null} scope
  */
-export function should_proxy_or_freeze(node, scope) {
+export function should_proxy(node, scope) {
 	if (
 		!node ||
 		node.type === 'Literal' ||
@@ -263,7 +268,7 @@ export function should_proxy_or_freeze(node, scope) {
 			binding.initial.type !== 'ImportDeclaration' &&
 			binding.initial.type !== 'EachBlock'
 		) {
-			return should_proxy_or_freeze(binding.initial, null);
+			return should_proxy(binding.initial, null);
 		}
 	}
 	return true;
diff --git a/packages/svelte/src/compiler/phases/3-transform/client/visitors/AssignmentExpression.js b/packages/svelte/src/compiler/phases/3-transform/client/visitors/AssignmentExpression.js
index afd2d50ba4..bdc144fe32 100644
--- a/packages/svelte/src/compiler/phases/3-transform/client/visitors/AssignmentExpression.js
+++ b/packages/svelte/src/compiler/phases/3-transform/client/visitors/AssignmentExpression.js
@@ -3,7 +3,7 @@
 import * as b from '../../../../utils/builders.js';
 import { build_assignment_value } from '../../../../utils/ast.js';
 import { is_ignored } from '../../../../state.js';
-import { build_proxy_reassignment, should_proxy_or_freeze } from '../utils.js';
+import { build_proxy_reassignment, should_proxy } from '../utils.js';
 import { visit_assignment_expression } from '../../shared/assignments.js';
 
 /**
@@ -37,11 +37,11 @@ export function build_assignment(operator, left, right, context) {
 					context.visit(build_assignment_value(operator, left, right))
 				);
 
-				if (should_proxy_or_freeze(value, context.state.scope)) {
+				if (should_proxy(value, context.state.scope)) {
 					transformed = true;
 					value =
-						private_state.kind === 'frozen_state'
-							? b.call('$.freeze', value)
+						private_state.kind === 'raw_state'
+							? value
 							: build_proxy_reassignment(value, private_state.id);
 				}
 
@@ -54,14 +54,14 @@ export function build_assignment(operator, left, right, context) {
 		} else if (left.property.type === 'Identifier' && context.state.in_constructor) {
 			const public_state = context.state.public_state.get(left.property.name);
 
-			if (public_state !== undefined && should_proxy_or_freeze(right, context.state.scope)) {
+			if (public_state !== undefined && should_proxy(right, context.state.scope)) {
 				const value = /** @type {Expression} */ (context.visit(right));
 
 				return b.assignment(
 					operator,
 					/** @type {Pattern} */ (context.visit(left)),
-					public_state.kind === 'frozen_state'
-						? b.call('$.freeze', value)
+					public_state.kind === 'raw_state'
+						? value
 						: build_proxy_reassignment(value, public_state.id)
 				);
 			}
@@ -99,13 +99,11 @@ export function build_assignment(operator, left, right, context) {
 		if (
 			!is_primitive &&
 			binding.kind !== 'prop' &&
+			binding.kind !== 'bindable_prop' &&
 			context.state.analysis.runes &&
-			should_proxy_or_freeze(value, context.state.scope)
+			should_proxy(value, context.state.scope)
 		) {
-			value =
-				binding.kind === 'frozen_state'
-					? b.call('$.freeze', value)
-					: build_proxy_reassignment(value, object.name);
+			value = binding.kind === 'raw_state' ? value : build_proxy_reassignment(value, object.name);
 		}
 
 		return transform.assign(object, value);
diff --git a/packages/svelte/src/compiler/phases/3-transform/client/visitors/ClassBody.js b/packages/svelte/src/compiler/phases/3-transform/client/visitors/ClassBody.js
index aa9931ade3..5342e70aac 100644
--- a/packages/svelte/src/compiler/phases/3-transform/client/visitors/ClassBody.js
+++ b/packages/svelte/src/compiler/phases/3-transform/client/visitors/ClassBody.js
@@ -5,7 +5,7 @@ import { dev, is_ignored } from '../../../../state.js';
 import * as b from '../../../../utils/builders.js';
 import { regex_invalid_identifier_chars } from '../../../patterns.js';
 import { get_rune } from '../../../scope.js';
-import { build_proxy_reassignment, should_proxy_or_freeze } from '../utils.js';
+import { build_proxy_reassignment, should_proxy } from '../utils.js';
 
 /**
  * @param {ClassBody} node
@@ -44,7 +44,7 @@ export function ClassBody(node, context) {
 				const rune = get_rune(definition.value, context.state.scope);
 				if (
 					rune === '$state' ||
-					rune === '$state.frozen' ||
+					rune === '$state.raw' ||
 					rune === '$derived' ||
 					rune === '$derived.by'
 				) {
@@ -53,8 +53,8 @@ export function ClassBody(node, context) {
 						kind:
 							rune === '$state'
 								? 'state'
-								: rune === '$state.frozen'
-									? 'frozen_state'
+								: rune === '$state.raw'
+									? 'raw_state'
 									: rune === '$derived.by'
 										? 'derived_by'
 										: 'derived',
@@ -114,15 +114,10 @@ export function ClassBody(node, context) {
 						field.kind === 'state'
 							? b.call(
 									'$.source',
-									should_proxy_or_freeze(init, context.state.scope) ? b.call('$.proxy', init) : init
+									should_proxy(init, context.state.scope) ? b.call('$.proxy', init) : init
 								)
-							: field.kind === 'frozen_state'
-								? b.call(
-										'$.source',
-										should_proxy_or_freeze(init, context.state.scope)
-											? b.call('$.freeze', init)
-											: init
-									)
+							: field.kind === 'raw_state'
+								? b.call('$.source', init)
 								: field.kind === 'derived_by'
 									? b.call('$.derived', init)
 									: b.call('$.derived', b.thunk(init));
@@ -154,16 +149,11 @@ export function ClassBody(node, context) {
 						);
 					}
 
-					if (field.kind === 'frozen_state') {
+					if (field.kind === 'raw_state') {
 						// set foo(value) { this.#foo = value; }
 						const value = b.id('value');
 						body.push(
-							b.method(
-								'set',
-								definition.key,
-								[value],
-								[b.stmt(b.call('$.set', member, b.call('$.freeze', value)))]
-							)
+							b.method('set', definition.key, [value], [b.stmt(b.call('$.set', member, value))])
 						);
 					}
 
diff --git a/packages/svelte/src/compiler/phases/3-transform/client/visitors/EachBlock.js b/packages/svelte/src/compiler/phases/3-transform/client/visitors/EachBlock.js
index 173b2edf13..97cb057cc5 100644
--- a/packages/svelte/src/compiler/phases/3-transform/client/visitors/EachBlock.js
+++ b/packages/svelte/src/compiler/phases/3-transform/client/visitors/EachBlock.js
@@ -6,7 +6,7 @@ import {
 	EACH_INDEX_REACTIVE,
 	EACH_IS_ANIMATED,
 	EACH_IS_CONTROLLED,
-	EACH_IS_STRICT_EQUALS,
+	EACH_ITEM_IMMUTABLE,
 	EACH_ITEM_REACTIVE,
 	EACH_KEYED
 } from '../../../../../constants.js';
@@ -55,6 +55,17 @@ export function EachBlock(node, context) {
 		node.context.type === 'Identifier' &&
 		node.context.name === node.key.name;
 
+	// if the each block expression references a store subscription, we need
+	// to use mutable stores internally
+	let uses_store;
+
+	for (const binding of node.metadata.expression.dependencies) {
+		if (binding.kind === 'store_sub') {
+			uses_store = true;
+			break;
+		}
+	}
+
 	for (const binding of node.metadata.expression.dependencies) {
 		// if the expression doesn't reference any external state, we don't need to
 		// create a source for the item. TODO cover more cases (e.g. `x.filter(y)`
@@ -64,12 +75,16 @@ export function EachBlock(node, context) {
 			continue;
 		}
 
-		if (!context.state.analysis.runes || !key_is_item || binding.kind === 'store_sub') {
+		if (!context.state.analysis.runes || !key_is_item || uses_store) {
 			flags |= EACH_ITEM_REACTIVE;
 			break;
 		}
 	}
 
+	if (context.state.analysis.runes && !uses_store) {
+		flags |= EACH_ITEM_IMMUTABLE;
+	}
+
 	// Since `animate:` can only appear on elements that are the sole child of a keyed each block,
 	// we can determine at compile time whether the each block is animated or not (in which
 	// case it should measure animated elements before and after reconciliation).
@@ -87,10 +102,6 @@ export function EachBlock(node, context) {
 		flags |= EACH_IS_CONTROLLED;
 	}
 
-	if (context.state.analysis.runes) {
-		flags |= EACH_IS_STRICT_EQUALS;
-	}
-
 	// If the array is a store expression, we need to invalidate it when the array is changed.
 	// This doesn't catch all cases, but all the ones that Svelte 4 catches, too.
 	let store_to_invalidate = '';
diff --git a/packages/svelte/src/compiler/phases/3-transform/client/visitors/VariableDeclaration.js b/packages/svelte/src/compiler/phases/3-transform/client/visitors/VariableDeclaration.js
index 914db108e3..8d36046be3 100644
--- a/packages/svelte/src/compiler/phases/3-transform/client/visitors/VariableDeclaration.js
+++ b/packages/svelte/src/compiler/phases/3-transform/client/visitors/VariableDeclaration.js
@@ -7,12 +7,7 @@ import { extract_paths } from '../../../../utils/ast.js';
 import * as b from '../../../../utils/builders.js';
 import * as assert from '../../../../utils/assert.js';
 import { get_rune } from '../../../scope.js';
-import {
-	get_prop_source,
-	is_prop_source,
-	is_state_source,
-	should_proxy_or_freeze
-} from '../utils.js';
+import { get_prop_source, is_prop_source, is_state_source, should_proxy } from '../utils.js';
 import { is_hoisted_function } from '../../utils.js';
 
 /**
@@ -86,7 +81,7 @@ export function VariableDeclaration(node, context) {
 							if (
 								initial &&
 								binding.kind === 'bindable_prop' &&
-								should_proxy_or_freeze(initial, context.state.scope)
+								should_proxy(initial, context.state.scope)
 							) {
 								initial = b.call('$.proxy', initial);
 							}
@@ -119,7 +114,7 @@ export function VariableDeclaration(node, context) {
 			const value =
 				args.length === 0 ? b.id('undefined') : /** @type {Expression} */ (context.visit(args[0]));
 
-			if (rune === '$state' || rune === '$state.frozen') {
+			if (rune === '$state' || rune === '$state.raw') {
 				/**
 				 * @param {Identifier} id
 				 * @param {Expression} value
@@ -128,8 +123,8 @@ export function VariableDeclaration(node, context) {
 					const binding = /** @type {import('#compiler').Binding} */ (
 						context.state.scope.get(id.name)
 					);
-					if (should_proxy_or_freeze(value, context.state.scope)) {
-						value = b.call(rune === '$state' ? '$.proxy' : '$.freeze', value);
+					if (rune === '$state' && should_proxy(value, context.state.scope)) {
+						value = b.call('$.proxy', value);
 					}
 					if (is_state_source(binding, context.state)) {
 						value = b.call('$.source', value);
@@ -151,7 +146,7 @@ export function VariableDeclaration(node, context) {
 							const binding = context.state.scope.get(/** @type {Identifier} */ (path.node).name);
 							return b.declarator(
 								path.node,
-								binding?.kind === 'state' || binding?.kind === 'frozen_state'
+								binding?.kind === 'state' || binding?.kind === 'raw_state'
 									? create_state_declarator(binding.node, value)
 									: value
 							);
diff --git a/packages/svelte/src/compiler/phases/3-transform/client/visitors/shared/declarations.js b/packages/svelte/src/compiler/phases/3-transform/client/visitors/shared/declarations.js
index 5a03fd9be4..0ea6a7ff6d 100644
--- a/packages/svelte/src/compiler/phases/3-transform/client/visitors/shared/declarations.js
+++ b/packages/svelte/src/compiler/phases/3-transform/client/visitors/shared/declarations.js
@@ -1,6 +1,6 @@
-/** @import { BinaryOperator, Expression, Identifier } from 'estree' */
+/** @import { Identifier } from 'estree' */
 /** @import { ComponentContext, Context } from '../../types' */
-import { build_proxy_reassignment, is_state_source, should_proxy_or_freeze } from '../../utils.js';
+import { is_state_source } from '../../utils.js';
 import * as b from '../../../../../utils/builders.js';
 
 /**
diff --git a/packages/svelte/src/compiler/phases/3-transform/server/visitors/PropertyDefinition.js b/packages/svelte/src/compiler/phases/3-transform/server/visitors/PropertyDefinition.js
index 72831dce86..04751a19d1 100644
--- a/packages/svelte/src/compiler/phases/3-transform/server/visitors/PropertyDefinition.js
+++ b/packages/svelte/src/compiler/phases/3-transform/server/visitors/PropertyDefinition.js
@@ -11,7 +11,7 @@ export function PropertyDefinition(node, context) {
 	if (context.state.analysis.runes && node.value != null && node.value.type === 'CallExpression') {
 		const rune = get_rune(node.value, context.state.scope);
 
-		if (rune === '$state' || rune === '$state.frozen' || rune === '$derived') {
+		if (rune === '$state' || rune === '$state.raw' || rune === '$derived') {
 			return {
 				...node,
 				value:
diff --git a/packages/svelte/src/compiler/types/index.d.ts b/packages/svelte/src/compiler/types/index.d.ts
index f7d111a267..24da8c9b84 100644
--- a/packages/svelte/src/compiler/types/index.d.ts
+++ b/packages/svelte/src/compiler/types/index.d.ts
@@ -278,7 +278,7 @@ export interface Binding {
 		| 'bindable_prop'
 		| 'rest_prop'
 		| 'state'
-		| 'frozen_state'
+		| 'raw_state'
 		| 'derived'
 		| 'each'
 		| 'snippet'
diff --git a/packages/svelte/src/constants.js b/packages/svelte/src/constants.js
index 9a4aa58193..f66c99e5c7 100644
--- a/packages/svelte/src/constants.js
+++ b/packages/svelte/src/constants.js
@@ -5,12 +5,13 @@ export const EACH_KEYED = 1 << 2;
 /** See EachBlock interface metadata.is_controlled for an explanation what this is */
 export const EACH_IS_CONTROLLED = 1 << 3;
 export const EACH_IS_ANIMATED = 1 << 4;
-export const EACH_IS_STRICT_EQUALS = 1 << 6;
+export const EACH_ITEM_IMMUTABLE = 1 << 5;
 
 export const PROPS_IS_IMMUTABLE = 1;
 export const PROPS_IS_RUNES = 1 << 1;
 export const PROPS_IS_UPDATED = 1 << 2;
-export const PROPS_IS_LAZY_INITIAL = 1 << 3;
+export const PROPS_IS_BINDABLE = 1 << 3;
+export const PROPS_IS_LAZY_INITIAL = 1 << 4;
 
 export const TRANSITION_IN = 1;
 export const TRANSITION_OUT = 1 << 1;
diff --git a/packages/svelte/src/internal/client/constants.js b/packages/svelte/src/internal/client/constants.js
index accdf05036..286396703a 100644
--- a/packages/svelte/src/internal/client/constants.js
+++ b/packages/svelte/src/internal/client/constants.js
@@ -20,5 +20,4 @@ export const INSPECT_EFFECT = 1 << 17;
 export const HEAD_EFFECT = 1 << 18;
 
 export const STATE_SYMBOL = Symbol('$state');
-export const STATE_FROZEN_SYMBOL = Symbol('$state.frozen');
 export const LOADING_ATTR_SYMBOL = Symbol('');
diff --git a/packages/svelte/src/internal/client/dom/blocks/each.js b/packages/svelte/src/internal/client/dom/blocks/each.js
index 669232fca2..24dfe2ebcf 100644
--- a/packages/svelte/src/internal/client/dom/blocks/each.js
+++ b/packages/svelte/src/internal/client/dom/blocks/each.js
@@ -3,9 +3,8 @@ import {
 	EACH_INDEX_REACTIVE,
 	EACH_IS_ANIMATED,
 	EACH_IS_CONTROLLED,
-	EACH_IS_STRICT_EQUALS,
+	EACH_ITEM_IMMUTABLE,
 	EACH_ITEM_REACTIVE,
-	EACH_KEYED,
 	HYDRATION_END,
 	HYDRATION_START_ELSE
 } from '../../../../constants.js';
@@ -29,7 +28,7 @@ import {
 } from '../../reactivity/effects.js';
 import { source, mutable_source, set } from '../../reactivity/sources.js';
 import { is_array, is_frozen } from '../../../shared/utils.js';
-import { INERT, STATE_FROZEN_SYMBOL, STATE_SYMBOL } from '../../constants.js';
+import { INERT, STATE_SYMBOL } from '../../constants.js';
 import { queue_micro_task } from '../task.js';
 import { current_effect } from '../../runtime.js';
 
@@ -139,18 +138,6 @@ export function each(node, flags, get_collection, get_key, render_fn, fallback_f
 
 		var length = array.length;
 
-		// If we are working with an array that isn't proxied or frozen, then remove strict equality and ensure the items
-		// are treated as reactive, so they get wrapped in a signal.
-		var flags = state.flags;
-		if (
-			(flags & EACH_IS_STRICT_EQUALS) !== 0 &&
-			!is_frozen(array) &&
-			!(STATE_FROZEN_SYMBOL in array) &&
-			!(STATE_SYMBOL in array)
-		) {
-			flags ^= EACH_IS_STRICT_EQUALS;
-		}
-
 		/** `true` if there was a hydration mismatch. Needs to be a `let` or else it isn't treeshaken out */
 		let mismatch = false;
 
@@ -470,7 +457,7 @@ function create_item(anchor, state, prev, next, value, key, index, render_fn, fl
 
 	try {
 		var reactive = (flags & EACH_ITEM_REACTIVE) !== 0;
-		var mutable = (flags & EACH_IS_STRICT_EQUALS) === 0;
+		var mutable = (flags & EACH_ITEM_IMMUTABLE) === 0;
 
 		var v = reactive ? (mutable ? mutable_source(value) : source(value)) : value;
 		var i = (flags & EACH_INDEX_REACTIVE) === 0 ? index : source(index);
diff --git a/packages/svelte/src/internal/client/errors.js b/packages/svelte/src/internal/client/errors.js
index 20a338fd5b..d6c04cf414 100644
--- a/packages/svelte/src/internal/client/errors.js
+++ b/packages/svelte/src/internal/client/errors.js
@@ -278,22 +278,6 @@ export function rune_outside_svelte(rune) {
 	}
 }
 
-/**
- * The argument to `$state.frozen(...)` cannot be an object created with `$state(...)`. You should create a copy of it first, for example with `$state.snapshot`
- * @returns {never}
- */
-export function state_frozen_invalid_argument() {
-	if (DEV) {
-		const error = new Error(`state_frozen_invalid_argument\nThe argument to \`$state.frozen(...)\` cannot be an object created with \`$state(...)\`. You should create a copy of it first, for example with \`$state.snapshot\``);
-
-		error.name = 'Svelte error';
-		throw error;
-	} else {
-		// TODO print a link to the documentation
-		throw new Error("state_frozen_invalid_argument");
-	}
-}
-
 /**
  * Cannot set prototype of `$state` object
  * @returns {never}
diff --git a/packages/svelte/src/internal/client/freeze.js b/packages/svelte/src/internal/client/freeze.js
deleted file mode 100644
index 540168afcf..0000000000
--- a/packages/svelte/src/internal/client/freeze.js
+++ /dev/null
@@ -1,40 +0,0 @@
-import { DEV } from 'esm-env';
-import { define_property, is_array, is_frozen, object_freeze } from '../shared/utils.js';
-import { STATE_FROZEN_SYMBOL, STATE_SYMBOL } from './constants.js';
-import * as e from './errors.js';
-
-/**
- * Expects a value that was wrapped with `freeze` and makes it frozen in DEV.
- * @template T
- * @param {T} value
- * @returns {Readonly<T>}
- */
-export function freeze(value) {
-	if (
-		typeof value === 'object' &&
-		value !== null &&
-		!is_frozen(value) &&
-		!(STATE_FROZEN_SYMBOL in value)
-	) {
-		var copy = /** @type {T} */ (value);
-
-		if (STATE_SYMBOL in value) {
-			e.state_frozen_invalid_argument();
-		}
-
-		define_property(copy, STATE_FROZEN_SYMBOL, {
-			value: true,
-			writable: true,
-			enumerable: false
-		});
-
-		// Freeze the object in DEV
-		if (DEV) {
-			object_freeze(copy);
-		}
-
-		return /** @type {Readonly<T>} */ (copy);
-	}
-
-	return value;
-}
diff --git a/packages/svelte/src/internal/client/freeze.test.ts b/packages/svelte/src/internal/client/freeze.test.ts
deleted file mode 100644
index fdc79ec13c..0000000000
--- a/packages/svelte/src/internal/client/freeze.test.ts
+++ /dev/null
@@ -1,16 +0,0 @@
-import { freeze } from './freeze.js';
-import { assert, test } from 'vitest';
-import { proxy } from './proxy.js';
-
-test('freezes an object', () => {
-	const frozen = freeze({ a: 1 });
-
-	assert.throws(() => {
-		// @ts-expect-error
-		frozen.a += 1;
-	}, /Cannot assign to read only property/);
-});
-
-test('throws if argument is a state proxy', () => {
-	assert.throws(() => freeze(proxy({})), /state_frozen_invalid_argument/);
-});
diff --git a/packages/svelte/src/internal/client/index.js b/packages/svelte/src/internal/client/index.js
index b1dfebbec5..489d45df02 100644
--- a/packages/svelte/src/internal/client/index.js
+++ b/packages/svelte/src/internal/client/index.js
@@ -93,7 +93,6 @@ export {
 	template_with_script,
 	text
 } from './dom/template.js';
-export { freeze } from './freeze.js';
 export { derived, derived_safe_equal } from './reactivity/deriveds.js';
 export {
 	effect_tracking,
diff --git a/packages/svelte/src/internal/client/proxy.js b/packages/svelte/src/internal/client/proxy.js
index 7b172f0a12..1827b1efda 100644
--- a/packages/svelte/src/internal/client/proxy.js
+++ b/packages/svelte/src/internal/client/proxy.js
@@ -12,7 +12,7 @@ import {
 } from '../shared/utils.js';
 import { check_ownership, widen_ownership } from './dev/ownership.js';
 import { source, set } from './reactivity/sources.js';
-import { STATE_FROZEN_SYMBOL, STATE_SYMBOL } from './constants.js';
+import { STATE_SYMBOL } from './constants.js';
 import { UNINITIALIZED } from '../../constants.js';
 import * as e from './errors.js';
 
@@ -24,12 +24,7 @@ import * as e from './errors.js';
  * @returns {ProxyStateObject<T> | T}
  */
 export function proxy(value, parent = null, prev) {
-	if (
-		typeof value === 'object' &&
-		value != null &&
-		!is_frozen(value) &&
-		!(STATE_FROZEN_SYMBOL in value)
-	) {
+	if (typeof value === 'object' && value != null && !is_frozen(value)) {
 		// If we have an existing proxy, return it...
 		if (STATE_SYMBOL in value) {
 			const metadata = /** @type {ProxyMetadata<T>} */ (value[STATE_SYMBOL]);
diff --git a/packages/svelte/src/internal/client/reactivity/props.js b/packages/svelte/src/internal/client/reactivity/props.js
index 81c3e4d743..0a5e746730 100644
--- a/packages/svelte/src/internal/client/reactivity/props.js
+++ b/packages/svelte/src/internal/client/reactivity/props.js
@@ -1,6 +1,7 @@
 /** @import { Source } from './types.js' */
 import { DEV } from 'esm-env';
 import {
+	PROPS_IS_BINDABLE,
 	PROPS_IS_IMMUTABLE,
 	PROPS_IS_LAZY_INITIAL,
 	PROPS_IS_RUNES,
@@ -13,6 +14,7 @@ import { get, is_signals_recorded, untrack, update } from '../runtime.js';
 import { safe_equals } from './equality.js';
 import * as e from '../errors.js';
 import { LEGACY_DERIVED_PROP } from '../constants.js';
+import { proxy } from '../proxy.js';
 
 /**
  * @param {((value?: number) => number)} fn
@@ -228,6 +230,7 @@ export function spread_props(...props) {
 export function prop(props, key, flags, fallback) {
 	var immutable = (flags & PROPS_IS_IMMUTABLE) !== 0;
 	var runes = (flags & PROPS_IS_RUNES) !== 0;
+	var bindable = (flags & PROPS_IS_BINDABLE) !== 0;
 	var lazy = (flags & PROPS_IS_LAZY_INITIAL) !== 0;
 
 	var prop_value = /** @type {V} */ (props[key]);
@@ -343,7 +346,7 @@ export function prop(props, key, flags, fallback) {
 		}
 
 		if (arguments.length > 0) {
-			const new_value = mutation ? get(current_value) : value;
+			const new_value = mutation ? get(current_value) : bindable ? proxy(value) : value;
 
 			if (!current_value.equals(new_value)) {
 				from_child = true;
diff --git a/packages/svelte/src/utils.js b/packages/svelte/src/utils.js
index 60250075c6..f5a523f107 100644
--- a/packages/svelte/src/utils.js
+++ b/packages/svelte/src/utils.js
@@ -393,7 +393,7 @@ export function is_mathml(name) {
 
 const RUNES = /** @type {const} */ ([
 	'$state',
-	'$state.frozen',
+	'$state.raw',
 	'$state.snapshot',
 	'$state.is',
 	'$props',
diff --git a/packages/svelte/tests/runtime-runes/samples/bind-this-frozen/ComponentA.svelte b/packages/svelte/tests/runtime-runes/samples/bind-this-raw/ComponentA.svelte
similarity index 100%
rename from packages/svelte/tests/runtime-runes/samples/bind-this-frozen/ComponentA.svelte
rename to packages/svelte/tests/runtime-runes/samples/bind-this-raw/ComponentA.svelte
diff --git a/packages/svelte/tests/runtime-runes/samples/bind-this-frozen/ComponentB.svelte b/packages/svelte/tests/runtime-runes/samples/bind-this-raw/ComponentB.svelte
similarity index 100%
rename from packages/svelte/tests/runtime-runes/samples/bind-this-frozen/ComponentB.svelte
rename to packages/svelte/tests/runtime-runes/samples/bind-this-raw/ComponentB.svelte
diff --git a/packages/svelte/tests/runtime-runes/samples/bind-this-frozen/_config.js b/packages/svelte/tests/runtime-runes/samples/bind-this-raw/_config.js
similarity index 100%
rename from packages/svelte/tests/runtime-runes/samples/bind-this-frozen/_config.js
rename to packages/svelte/tests/runtime-runes/samples/bind-this-raw/_config.js
diff --git a/packages/svelte/tests/runtime-runes/samples/bind-this-frozen/main.svelte b/packages/svelte/tests/runtime-runes/samples/bind-this-raw/main.svelte
similarity index 93%
rename from packages/svelte/tests/runtime-runes/samples/bind-this-frozen/main.svelte
rename to packages/svelte/tests/runtime-runes/samples/bind-this-raw/main.svelte
index 4b314a33fa..653f56bd55 100644
--- a/packages/svelte/tests/runtime-runes/samples/bind-this-frozen/main.svelte
+++ b/packages/svelte/tests/runtime-runes/samples/bind-this-raw/main.svelte
@@ -3,7 +3,7 @@
 	import ComponentB from './ComponentB.svelte';
 
 	let type = $state(ComponentA);
-	let elem = $state.frozen();
+	let elem = $state.raw();
 
 	$effect(() => {
 		console.log(elem);
diff --git a/packages/svelte/tests/runtime-runes/samples/binding-property-static/_config.js b/packages/svelte/tests/runtime-runes/samples/binding-property-static/_config.js
index 7202aadfa4..5c0b524a89 100644
--- a/packages/svelte/tests/runtime-runes/samples/binding-property-static/_config.js
+++ b/packages/svelte/tests/runtime-runes/samples/binding-property-static/_config.js
@@ -8,9 +8,9 @@ export default test({
 	async test({ assert, warnings }) {
 		assert.deepEqual(warnings, [
 			'`bind:value={pojo.value}` (main.svelte:50:7) is binding to a non-reactive property',
-			'`bind:value={frozen.value}` (main.svelte:51:7) is binding to a non-reactive property',
+			'`bind:value={raw.value}` (main.svelte:51:7) is binding to a non-reactive property',
 			'`bind:value={pojo.value}` (main.svelte:52:7) is binding to a non-reactive property',
-			'`bind:value={frozen.value}` (main.svelte:53:7) is binding to a non-reactive property',
+			'`bind:value={raw.value}` (main.svelte:53:7) is binding to a non-reactive property',
 			'`bind:this={pojo.value}` (main.svelte:55:6) is binding to a non-reactive property'
 		]);
 	}
diff --git a/packages/svelte/tests/runtime-runes/samples/binding-property-static/main.svelte b/packages/svelte/tests/runtime-runes/samples/binding-property-static/main.svelte
index 3195aa35ea..e7d7ca35c1 100644
--- a/packages/svelte/tests/runtime-runes/samples/binding-property-static/main.svelte
+++ b/packages/svelte/tests/runtime-runes/samples/binding-property-static/main.svelte
@@ -5,7 +5,7 @@
 		value: 1
 	};
 
-	let frozen = $state.frozen({
+	let raw = $state.raw({
 		value: 2
 	});
 
@@ -48,9 +48,9 @@
 
 <!-- should warn -->
 <input bind:value={pojo.value} />
-<input bind:value={frozen.value} />
+<input bind:value={raw.value} />
 <Child bind:value={pojo.value} />
-<Child bind:value={frozen.value} />
+<Child bind:value={raw.value} />
 {#if value}
 	<div bind:this={pojo.value}></div>
 {/if}
diff --git a/packages/svelte/tests/runtime-runes/samples/class-frozen-state-object/main.svelte b/packages/svelte/tests/runtime-runes/samples/class-frozen-state-object/main.svelte
deleted file mode 100644
index bdadbeee82..0000000000
--- a/packages/svelte/tests/runtime-runes/samples/class-frozen-state-object/main.svelte
+++ /dev/null
@@ -1,14 +0,0 @@
-<script>
-	class Counter {
-		count = $state.frozen({ a: 0 });
-	}
-	const counter = new Counter();
-</script>
-
-<button on:click={() => {
-	try {
-		counter.count.a++
-	} catch (e) {
-		console.log('read only')
-	}
-}}>{counter.count.a}</button>
diff --git a/packages/svelte/tests/runtime-runes/samples/class-private-frozen-state-object/_config.js b/packages/svelte/tests/runtime-runes/samples/class-private-raw-state-object/_config.js
similarity index 80%
rename from packages/svelte/tests/runtime-runes/samples/class-private-frozen-state-object/_config.js
rename to packages/svelte/tests/runtime-runes/samples/class-private-raw-state-object/_config.js
index 4b043a75e2..ad93c66761 100644
--- a/packages/svelte/tests/runtime-runes/samples/class-private-frozen-state-object/_config.js
+++ b/packages/svelte/tests/runtime-runes/samples/class-private-raw-state-object/_config.js
@@ -4,7 +4,7 @@ import { test } from '../../test';
 export default test({
 	html: `<button>0</button>`,
 
-	test({ assert, target, logs }) {
+	test({ assert, target }) {
 		const btn = target.querySelector('button');
 
 		btn?.click();
@@ -14,7 +14,5 @@ export default test({
 		btn?.click();
 		flushSync();
 		assert.htmlEqual(target.innerHTML, `<button>0</button>`);
-
-		assert.deepEqual(logs, ['read only', 'read only']);
 	}
 });
diff --git a/packages/svelte/tests/runtime-runes/samples/class-private-frozen-state-object/main.svelte b/packages/svelte/tests/runtime-runes/samples/class-private-raw-state-object/main.svelte
similarity index 60%
rename from packages/svelte/tests/runtime-runes/samples/class-private-frozen-state-object/main.svelte
rename to packages/svelte/tests/runtime-runes/samples/class-private-raw-state-object/main.svelte
index 557dc86998..f7f1c74c29 100644
--- a/packages/svelte/tests/runtime-runes/samples/class-private-frozen-state-object/main.svelte
+++ b/packages/svelte/tests/runtime-runes/samples/class-private-raw-state-object/main.svelte
@@ -1,6 +1,6 @@
 <script>
 	class Counter {
-		#count = $state.frozen();
+		#count = $state.raw();
 
 		constructor(initial_count) {
 			this.#count = { a: initial_count };
@@ -16,10 +16,8 @@
 	const counter = new Counter(0);
 </script>
 
-<button on:click={() => {
-	try {
-		counter.count.a++
-	} catch (e) {
-		console.log('read only')
-	}
-}}>{counter.count.a}</button>
+<button
+	on:click={() => {
+		counter.count.a++;
+	}}>{counter.count.a}</button
+>
diff --git a/packages/svelte/tests/runtime-runes/samples/class-frozen-state/_config.js b/packages/svelte/tests/runtime-runes/samples/class-private-raw-state/_config.js
similarity index 100%
rename from packages/svelte/tests/runtime-runes/samples/class-frozen-state/_config.js
rename to packages/svelte/tests/runtime-runes/samples/class-private-raw-state/_config.js
diff --git a/packages/svelte/tests/runtime-runes/samples/class-private-frozen-state/main.svelte b/packages/svelte/tests/runtime-runes/samples/class-private-raw-state/main.svelte
similarity index 91%
rename from packages/svelte/tests/runtime-runes/samples/class-private-frozen-state/main.svelte
rename to packages/svelte/tests/runtime-runes/samples/class-private-raw-state/main.svelte
index f509f351bb..f4812b1dde 100644
--- a/packages/svelte/tests/runtime-runes/samples/class-private-frozen-state/main.svelte
+++ b/packages/svelte/tests/runtime-runes/samples/class-private-raw-state/main.svelte
@@ -1,6 +1,6 @@
 <script>
 	class Counter {
-		#count = $state.frozen(0);
+		#count = $state.raw(0);
 
 		constructor(initial_count) {
 			this.#count = initial_count;
diff --git a/packages/svelte/tests/runtime-runes/samples/class-frozen-state-object/_config.js b/packages/svelte/tests/runtime-runes/samples/class-raw-state-object/_config.js
similarity index 80%
rename from packages/svelte/tests/runtime-runes/samples/class-frozen-state-object/_config.js
rename to packages/svelte/tests/runtime-runes/samples/class-raw-state-object/_config.js
index 4b043a75e2..ad93c66761 100644
--- a/packages/svelte/tests/runtime-runes/samples/class-frozen-state-object/_config.js
+++ b/packages/svelte/tests/runtime-runes/samples/class-raw-state-object/_config.js
@@ -4,7 +4,7 @@ import { test } from '../../test';
 export default test({
 	html: `<button>0</button>`,
 
-	test({ assert, target, logs }) {
+	test({ assert, target }) {
 		const btn = target.querySelector('button');
 
 		btn?.click();
@@ -14,7 +14,5 @@ export default test({
 		btn?.click();
 		flushSync();
 		assert.htmlEqual(target.innerHTML, `<button>0</button>`);
-
-		assert.deepEqual(logs, ['read only', 'read only']);
 	}
 });
diff --git a/packages/svelte/tests/runtime-runes/samples/class-raw-state-object/main.svelte b/packages/svelte/tests/runtime-runes/samples/class-raw-state-object/main.svelte
new file mode 100644
index 0000000000..17ef0e7f34
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/class-raw-state-object/main.svelte
@@ -0,0 +1,12 @@
+<script>
+	class Counter {
+		count = $state.raw({ a: 0 });
+	}
+	const counter = new Counter();
+</script>
+
+<button
+	on:click={() => {
+		counter.count.a++;
+	}}>{counter.count.a}</button
+>
diff --git a/packages/svelte/tests/runtime-runes/samples/class-private-frozen-state/_config.js b/packages/svelte/tests/runtime-runes/samples/class-raw-state/_config.js
similarity index 100%
rename from packages/svelte/tests/runtime-runes/samples/class-private-frozen-state/_config.js
rename to packages/svelte/tests/runtime-runes/samples/class-raw-state/_config.js
diff --git a/packages/svelte/tests/runtime-runes/samples/class-frozen-state/main.svelte b/packages/svelte/tests/runtime-runes/samples/class-raw-state/main.svelte
similarity index 83%
rename from packages/svelte/tests/runtime-runes/samples/class-frozen-state/main.svelte
rename to packages/svelte/tests/runtime-runes/samples/class-raw-state/main.svelte
index a723976ea9..2913d1ecec 100644
--- a/packages/svelte/tests/runtime-runes/samples/class-frozen-state/main.svelte
+++ b/packages/svelte/tests/runtime-runes/samples/class-raw-state/main.svelte
@@ -1,6 +1,6 @@
 <script>
 	class Counter {
-		count = $state.frozen(0);
+		count = $state.raw(0);
 	}
 	const counter = new Counter();
 </script>
diff --git a/packages/svelte/tests/runtime-runes/samples/class-state-frozen/_config.js b/packages/svelte/tests/runtime-runes/samples/class-state-raw/_config.js
similarity index 100%
rename from packages/svelte/tests/runtime-runes/samples/class-state-frozen/_config.js
rename to packages/svelte/tests/runtime-runes/samples/class-state-raw/_config.js
diff --git a/packages/svelte/tests/runtime-runes/samples/class-state-frozen/main.svelte b/packages/svelte/tests/runtime-runes/samples/class-state-raw/main.svelte
similarity index 100%
rename from packages/svelte/tests/runtime-runes/samples/class-state-frozen/main.svelte
rename to packages/svelte/tests/runtime-runes/samples/class-state-raw/main.svelte
diff --git a/packages/svelte/tests/runtime-runes/samples/each-updates-frozen/main.svelte b/packages/svelte/tests/runtime-runes/samples/each-updates-frozen/main.svelte
deleted file mode 100644
index 8aabde46cf..0000000000
--- a/packages/svelte/tests/runtime-runes/samples/each-updates-frozen/main.svelte
+++ /dev/null
@@ -1,16 +0,0 @@
-<script>
-  let frozen_items = $state.frozen([
-		{id: 0, text: 'a'},
-		{id: 1, text: 'b'},
-		{id: 2, text: 'c'}
-	])
-</script>
-
-{#each frozen_items as item (item.id)}
-	{console.log(item.text)}
-  {item.text}
-{/each}
-
-<button onclick={() => {
-	frozen_items = [...frozen_items, {id: 3, text: 'd'}]
-}}></button>
diff --git a/packages/svelte/tests/runtime-runes/samples/each-updates-frozen/_config.js b/packages/svelte/tests/runtime-runes/samples/each-updates-raw/_config.js
similarity index 100%
rename from packages/svelte/tests/runtime-runes/samples/each-updates-frozen/_config.js
rename to packages/svelte/tests/runtime-runes/samples/each-updates-raw/_config.js
diff --git a/packages/svelte/tests/runtime-runes/samples/each-updates-raw/main.svelte b/packages/svelte/tests/runtime-runes/samples/each-updates-raw/main.svelte
new file mode 100644
index 0000000000..07efc5e349
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/each-updates-raw/main.svelte
@@ -0,0 +1,18 @@
+<script>
+	let raw_items = $state.raw([
+		{ id: 0, text: 'a' },
+		{ id: 1, text: 'b' },
+		{ id: 2, text: 'c' }
+	]);
+</script>
+
+{#each raw_items as item (item.id)}
+	{console.log(item.text)}
+	{item.text}
+{/each}
+
+<button
+	onclick={() => {
+		raw_items = [...raw_items, { id: 3, text: 'd' }];
+	}}
+></button>
diff --git a/packages/svelte/tests/runtime-runes/samples/readonly-state-replace/main.svelte b/packages/svelte/tests/runtime-runes/samples/readonly-state-replace/main.svelte
index 4a53807030..4b5dc5ac59 100644
--- a/packages/svelte/tests/runtime-runes/samples/readonly-state-replace/main.svelte
+++ b/packages/svelte/tests/runtime-runes/samples/readonly-state-replace/main.svelte
@@ -1,5 +1,5 @@
 <script>
-	let items = $state.frozen([0]);
+	let items = $state.raw([0]);
 
 	const addItem = () => {
 		items = [...items, items.length];
diff --git a/packages/svelte/tests/runtime-runes/samples/readonly-state/main.svelte b/packages/svelte/tests/runtime-runes/samples/readonly-state/main.svelte
index e92a479c93..9cfda45e18 100644
--- a/packages/svelte/tests/runtime-runes/samples/readonly-state/main.svelte
+++ b/packages/svelte/tests/runtime-runes/samples/readonly-state/main.svelte
@@ -1,6 +1,6 @@
 <script>
-	let x = $state.frozen(0);
-	let y = $state.frozen(0);
+	let x = $state.raw(0);
+	let y = $state.raw(0);
 
 	$effect(() => {
 		console.log(x);
diff --git a/packages/svelte/tests/runtime-runes/samples/state-raw-bindable/Child.svelte b/packages/svelte/tests/runtime-runes/samples/state-raw-bindable/Child.svelte
new file mode 100644
index 0000000000..37d06d5f80
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/state-raw-bindable/Child.svelte
@@ -0,0 +1,6 @@
+<script>
+	let { object = $bindable() } = $props();
+</script>
+
+<button onclick={() => (object = { count: object.count + 1 })}>reassign</button>
+<button onclick={() => (object.count += 1)}>mutate</button>
diff --git a/packages/svelte/tests/runtime-runes/samples/state-raw-bindable/_config.js b/packages/svelte/tests/runtime-runes/samples/state-raw-bindable/_config.js
new file mode 100644
index 0000000000..995aec0ad8
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/state-raw-bindable/_config.js
@@ -0,0 +1,20 @@
+import { flushSync } from 'svelte';
+import { ok, test } from '../../test';
+
+export default test({
+	html: '<button>reassign</button> <button>mutate</button> <p>0</p>',
+	test({ assert, target }) {
+		const [reassign, mutate] = target.querySelectorAll('button');
+		const output = target.querySelector('p');
+		ok(output);
+
+		flushSync(() => mutate.click());
+		assert.htmlEqual(output.innerHTML, '0');
+
+		flushSync(() => reassign.click());
+		assert.htmlEqual(output.innerHTML, '2');
+
+		flushSync(() => mutate.click());
+		assert.htmlEqual(output.innerHTML, '2');
+	}
+});
diff --git a/packages/svelte/tests/runtime-runes/samples/state-raw-bindable/main.svelte b/packages/svelte/tests/runtime-runes/samples/state-raw-bindable/main.svelte
new file mode 100644
index 0000000000..39599673fc
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/state-raw-bindable/main.svelte
@@ -0,0 +1,8 @@
+<script>
+	import Child from './Child.svelte';
+
+	let object = $state.raw({ count: 0 });
+</script>
+
+<Child bind:object />
+<p>{object.count}</p>
diff --git a/packages/svelte/types/index.d.ts b/packages/svelte/types/index.d.ts
index ed61515c5a..f31cb2a6d3 100644
--- a/packages/svelte/types/index.d.ts
+++ b/packages/svelte/types/index.d.ts
@@ -927,7 +927,7 @@ declare module 'svelte/compiler' {
 			| 'bindable_prop'
 			| 'rest_prop'
 			| 'state'
-			| 'frozen_state'
+			| 'raw_state'
 			| 'derived'
 			| 'each'
 			| 'snippet'
@@ -2879,12 +2879,13 @@ declare namespace $state {
 						: never;
 
 	/**
-	 * Declares reactive read-only state that is shallowly immutable.
+	 * Declares state that is _not_ made deeply reactive — instead of mutating it,
+	 * you must reassign it.
 	 *
 	 * Example:
 	 * ```ts
 	 * <script>
-	 *   let items = $state.frozen([0]);
+	 *   let items = $state.raw([0]);
 	 *
 	 *   const addItem = () => {
 	 *     items = [...items, items.length];
@@ -2900,8 +2901,8 @@ declare namespace $state {
 	 *
 	 * @param initial The initial value
 	 */
-	export function frozen<T>(initial: T): Readonly<T>;
-	export function frozen<T>(): Readonly<T> | undefined;
+	export function raw<T>(initial: T): T;
+	export function raw<T>(): T | undefined;
 	/**
 	 * To take a static snapshot of a deeply reactive `$state` proxy, use `$state.snapshot`:
 	 *