diff --git a/.changeset/dry-eggs-play.md b/.changeset/dry-eggs-play.md
new file mode 100644
index 0000000000..962e26fbff
--- /dev/null
+++ b/.changeset/dry-eggs-play.md
@@ -0,0 +1,5 @@
+---
+'svelte': patch
+---
+
+fix: improve text node output
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 3de77c8303..8c3cb748c4 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
@@ -1531,6 +1531,7 @@ function process_children(nodes, parent, { visit, state }) {
 		expression = b.call('$.sibling', text_id);
 	}
 
+	let is_fragment = false;
 	for (let i = 0; i < nodes.length; i += 1) {
 		const node = nodes[i];
 
@@ -1538,7 +1539,12 @@ function process_children(nodes, parent, { visit, state }) {
 			sequence.push(node);
 		} else {
 			if (sequence.length > 0) {
-				flush_sequence(sequence, true);
+				flush_sequence(sequence, is_fragment);
+				// Ensure we move to the next sibling for the case where we move reference within a fragment
+				if (!is_fragment && sequence.length === 1 && sequence[0].type === 'ExpressionTag') {
+					expression = b.call('$.sibling', expression);
+					is_fragment = true;
+				}
 				sequence = [];
 			}
 
diff --git a/packages/svelte/tests/runtime-runes/samples/each-text-template/_config.js b/packages/svelte/tests/runtime-runes/samples/each-text-template/_config.js
new file mode 100644
index 0000000000..439863e4d9
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/each-text-template/_config.js
@@ -0,0 +1,5 @@
+import { test } from '../../test';
+
+export default test({
+	html: `<p>A<br>B<br>C<br></p>`
+});
diff --git a/packages/svelte/tests/runtime-runes/samples/each-text-template/main.svelte b/packages/svelte/tests/runtime-runes/samples/each-text-template/main.svelte
new file mode 100644
index 0000000000..5d91831d0e
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/each-text-template/main.svelte
@@ -0,0 +1,9 @@
+<script>
+	let array = $state(['A', 'B', 'C']);
+</script>
+
+<p>
+{#each array as a}
+	{a}<br/>
+{/each}
+</p>