diff --git a/.changeset/gorgeous-hats-wonder.md b/.changeset/gorgeous-hats-wonder.md
new file mode 100644
index 0000000000..e1ce7bdaed
--- /dev/null
+++ b/.changeset/gorgeous-hats-wonder.md
@@ -0,0 +1,5 @@
+---
+"svelte": patch
+---
+
+fix: ensure element size bindings don't unsubscribe multiple times from the resize observer
diff --git a/.changeset/hot-rivers-punch.md b/.changeset/hot-rivers-punch.md
new file mode 100644
index 0000000000..4669e6d3c9
--- /dev/null
+++ b/.changeset/hot-rivers-punch.md
@@ -0,0 +1,5 @@
+---
+"svelte": patch
+---
+
+fix: prevent misidentification of bindings as delegatable event handlers if used outside event attribute
diff --git a/.changeset/moody-toys-relax.md b/.changeset/moody-toys-relax.md
new file mode 100644
index 0000000000..236fa089c4
--- /dev/null
+++ b/.changeset/moody-toys-relax.md
@@ -0,0 +1,5 @@
+---
+"svelte": patch
+---
+
+fix: preserve current input values when removing defaults
diff --git a/.changeset/pre.json b/.changeset/pre.json
index 269df98439..faff6a413b 100644
--- a/.changeset/pre.json
+++ b/.changeset/pre.json
@@ -205,6 +205,7 @@
     "good-plums-type",
     "good-rivers-yawn",
     "good-roses-argue",
+    "gorgeous-hats-wonder",
     "gorgeous-monkeys-carry",
     "gorgeous-singers-rest",
     "great-fans-unite",
@@ -234,6 +235,7 @@
     "honest-pans-kick",
     "hot-cooks-repair",
     "hot-jobs-tap",
+    "hot-rivers-punch",
     "hot-sloths-clap",
     "hungry-boxes-relate",
     "hungry-dots-fry",
@@ -326,6 +328,7 @@
     "moody-houses-argue",
     "moody-owls-cry",
     "moody-sheep-type",
+    "moody-toys-relax",
     "nasty-glasses-begin",
     "nasty-lions-double",
     "nasty-yaks-peel",
@@ -526,6 +529,7 @@
     "strong-lemons-provide",
     "strong-pans-doubt",
     "stupid-parents-crash",
+    "sweet-bottles-check",
     "sweet-mangos-beg",
     "sweet-pens-sniff",
     "swift-donkeys-perform",
@@ -608,6 +612,7 @@
     "weak-drinks-speak",
     "weak-frogs-bow",
     "weak-terms-destroy",
+    "wet-bats-exercise",
     "wet-games-fly",
     "wet-pears-remain",
     "wet-wombats-repeat",
diff --git a/.changeset/sweet-bottles-check.md b/.changeset/sweet-bottles-check.md
new file mode 100644
index 0000000000..fafab0f70f
--- /dev/null
+++ b/.changeset/sweet-bottles-check.md
@@ -0,0 +1,5 @@
+---
+"svelte": patch
+---
+
+chore: improve runtime performance of capturing reactive signals
diff --git a/.changeset/twenty-gifts-develop.md b/.changeset/twenty-gifts-develop.md
new file mode 100644
index 0000000000..f610d9647f
--- /dev/null
+++ b/.changeset/twenty-gifts-develop.md
@@ -0,0 +1,5 @@
+---
+"svelte": patch
+---
+
+fix: remove document event listeners on unmount
diff --git a/.changeset/wet-bats-exercise.md b/.changeset/wet-bats-exercise.md
new file mode 100644
index 0000000000..550ad83375
--- /dev/null
+++ b/.changeset/wet-bats-exercise.md
@@ -0,0 +1,5 @@
+---
+"svelte": patch
+---
+
+fix: preserve component function context for nested components
diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index 572de29b85..d3c8b3955c 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -60,3 +60,17 @@ jobs:
       - name: build and check generated types
         if: (${{ success() }} || ${{ failure() }}) # ensures this step runs even if previous steps fail
         run: pnpm build && { [ "`git status --porcelain=v1`" == "" ] || (echo "Generated types have changed — please regenerate types locally and commit the changes after you have reviewed them"; git diff; exit 1); }
+  Benchmarks:
+    runs-on: ubuntu-latest
+    timeout-minutes: 15
+    steps:
+      - uses: actions/checkout@v3
+      - uses: pnpm/action-setup@v4
+      - uses: actions/setup-node@v3
+        with:
+          node-version: 18
+          cache: pnpm
+      - run: pnpm install --frozen-lockfile
+      - run: pnpm bench
+        env:
+          CI: true
diff --git a/.gitignore b/.gitignore
index 4ce5c243c7..d503437664 100644
--- a/.gitignore
+++ b/.gitignore
@@ -22,3 +22,5 @@ coverage
 .DS_Store
 
 tmp
+
+benchmarking/compare/.results
diff --git a/benchmarking/benchmarks.js b/benchmarking/benchmarks.js
new file mode 100644
index 0000000000..283112dbe3
--- /dev/null
+++ b/benchmarking/benchmarks.js
@@ -0,0 +1,24 @@
+import { kairo_avoidable } from './benchmarks/kairo/kairo_avoidable.js';
+import { kairo_broad } from './benchmarks/kairo/kairo_broad.js';
+import { kairo_deep } from './benchmarks/kairo/kairo_deep.js';
+import { kairo_diamond } from './benchmarks/kairo/kairo_diamond.js';
+import { kairo_mux } from './benchmarks/kairo/kairo_mux.js';
+import { kairo_repeated } from './benchmarks/kairo/kairo_repeated.js';
+import { kairo_triangle } from './benchmarks/kairo/kairo_triangle.js';
+import { kairo_unstable } from './benchmarks/kairo/kairo_unstable.js';
+import { mol_bench } from './benchmarks/mol_bench.js';
+
+// This benchmark has been adapted from the js-reactivity-benchmark (https://github.com/milomg/js-reactivity-benchmark)
+// Not all tests are the same, and many parts have been tweaked to capture different data.
+
+export const benchmarks = [
+	kairo_avoidable,
+	kairo_broad,
+	kairo_deep,
+	kairo_diamond,
+	kairo_triangle,
+	kairo_mux,
+	kairo_repeated,
+	kairo_unstable,
+	mol_bench
+];
diff --git a/benchmarking/benchmarks/kairo/kairo_avoidable.js b/benchmarking/benchmarks/kairo/kairo_avoidable.js
new file mode 100644
index 0000000000..636e96ccce
--- /dev/null
+++ b/benchmarking/benchmarks/kairo/kairo_avoidable.js
@@ -0,0 +1,60 @@
+import { assert, fastest_test } from '../../utils.js';
+import * as $ from '../../../packages/svelte/src/internal/client/index.js';
+import { busy } from './util.js';
+
+function setup() {
+	let head = $.source(0);
+	let computed1 = $.derived(() => $.get(head));
+	let computed2 = $.derived(() => ($.get(computed1), 0));
+	let computed3 = $.derived(() => (busy(), $.get(computed2) + 1)); // heavy computation
+	let computed4 = $.derived(() => $.get(computed3) + 2);
+	let computed5 = $.derived(() => $.get(computed4) + 3);
+
+	const destroy = $.effect_root(() => {
+		$.render_effect(() => {
+			$.get(computed5);
+			busy(); // heavy side effect
+		});
+	});
+
+	return {
+		destroy,
+		run() {
+			$.flush_sync(() => {
+				$.set(head, 1);
+			});
+			assert($.get(computed5) === 6);
+			for (let i = 0; i < 1000; i++) {
+				$.flush_sync(() => {
+					$.set(head, i);
+				});
+				assert($.get(computed5) === 6);
+			}
+		}
+	};
+}
+
+export async function kairo_avoidable() {
+	// Do 10 loops to warm up JIT
+	for (let i = 0; i < 10; i++) {
+		const { run, destroy } = setup();
+		run();
+		destroy();
+	}
+
+	const { run, destroy } = setup();
+
+	const { timing } = await fastest_test(10, () => {
+		for (let i = 0; i < 100; i++) {
+			run();
+		}
+	});
+
+	destroy();
+
+	return {
+		benchmark: 'kairo_avoidable',
+		time: timing.time.toFixed(2),
+		gc_time: timing.gc_time.toFixed(2)
+	};
+}
diff --git a/benchmarking/benchmarks/kairo/kairo_broad.js b/benchmarking/benchmarks/kairo/kairo_broad.js
new file mode 100644
index 0000000000..682154f0e3
--- /dev/null
+++ b/benchmarking/benchmarks/kairo/kairo_broad.js
@@ -0,0 +1,66 @@
+import { assert, fastest_test } from '../../utils.js';
+import * as $ from '../../../packages/svelte/src/internal/client/index.js';
+
+function setup() {
+	let head = $.source(0);
+	let last = head;
+	let counter = 0;
+
+	const destroy = $.effect_root(() => {
+		for (let i = 0; i < 50; i++) {
+			let current = $.derived(() => {
+				return $.get(head) + i;
+			});
+			let current2 = $.derived(() => {
+				return $.get(current) + 1;
+			});
+			$.render_effect(() => {
+				$.get(current2);
+				counter++;
+			});
+			last = current2;
+		}
+	});
+
+	return {
+		destroy,
+		run() {
+			$.flush_sync(() => {
+				$.set(head, 1);
+			});
+			counter = 0
+			for (let i = 0; i < 50; i++) {
+				$.flush_sync(() => {
+					$.set(head, i);
+				});
+				assert($.get(last) === i + 50);
+			}
+			assert(counter === 50 * 50);
+		}
+	};
+}
+
+export async function kairo_broad() {
+	// Do 10 loops to warm up JIT
+	for (let i = 0; i < 10; i++) {
+		const { run, destroy } = setup();
+		run();
+		destroy();
+	}
+
+	const { run, destroy } = setup();
+
+	const { timing } = await fastest_test(10, () => {
+		for (let i = 0; i < 100; i++) {
+			run();
+		}
+	});
+
+	destroy();
+
+	return {
+		benchmark: 'kairo_broad',
+		time: timing.time.toFixed(2),
+		gc_time: timing.gc_time.toFixed(2)
+	};
+}
diff --git a/benchmarking/benchmarks/kairo/kairo_deep.js b/benchmarking/benchmarks/kairo/kairo_deep.js
new file mode 100644
index 0000000000..af985c3e43
--- /dev/null
+++ b/benchmarking/benchmarks/kairo/kairo_deep.js
@@ -0,0 +1,66 @@
+import { assert, fastest_test } from '../../utils.js';
+import * as $ from '../../../packages/svelte/src/internal/client/index.js';
+
+let len = 50;
+const iter = 50;
+
+function setup() {
+	let head = $.source(0);
+	let current = head;
+	for (let i = 0; i < len; i++) {
+    let c = current;
+    current = $.derived(() => {
+      return $.get(c) + 1;
+    });
+  }
+  let counter = 0;
+
+	const destroy = $.effect_root(() => {
+		$.render_effect(() => {
+			$.get(current);
+			counter++;
+		});
+	});
+
+	return {
+		destroy,
+		run() {
+			$.flush_sync(() => {
+				$.set(head, 1);
+			});
+			counter = 0
+			for (let i = 0; i < iter; i++) {
+				$.flush_sync(() => {
+					$.set(head, i);
+				});
+				assert($.get(current) === len + i);
+			}
+			assert(counter === iter);
+		}
+	};
+}
+
+export async function kairo_deep() {
+	// Do 10 loops to warm up JIT
+	for (let i = 0; i < 10; i++) {
+		const { run, destroy } = setup();
+		run();
+		destroy();
+	}
+
+	const { run, destroy } = setup();
+
+	const { timing } = await fastest_test(10, () => {
+		for (let i = 0; i < 100; i++) {
+			run();
+		}
+	});
+
+	destroy();
+
+	return {
+		benchmark: 'kairo_deep',
+		time: timing.time.toFixed(2),
+		gc_time: timing.gc_time.toFixed(2)
+	};
+}
diff --git a/benchmarking/benchmarks/kairo/kairo_diamond.js b/benchmarking/benchmarks/kairo/kairo_diamond.js
new file mode 100644
index 0000000000..879727c99e
--- /dev/null
+++ b/benchmarking/benchmarks/kairo/kairo_diamond.js
@@ -0,0 +1,70 @@
+import { assert, fastest_test } from '../../utils.js';
+import * as $ from '../../../packages/svelte/src/internal/client/index.js';
+
+let width = 5;
+
+function setup() {
+	let head = $.source(0);
+  let current = [];
+  for (let i = 0; i < width; i++) {
+    current.push(
+      $.derived(() => {
+        return $.get(head) + 1;
+      })
+    );
+  }
+  let sum = $.derived(() => {
+    return current.map((x) => $.get(x)).reduce((a, b) => a + b, 0);
+  });
+	let counter = 0;
+
+	const destroy = $.effect_root(() => {
+		$.render_effect(() => {
+			$.get(sum);
+			counter++;
+		});
+	});
+
+	return {
+		destroy,
+		run() {
+			$.flush_sync(() => {
+				$.set(head, 1);
+			});
+			assert($.get(sum) === 2 * width);
+			counter = 0;
+			for (let i = 0; i < 500; i++) {
+				$.flush_sync(() => {
+					$.set(head, i);
+				});
+				assert($.get(sum) === (i + 1) * width);
+			}
+			assert(counter === 500);
+		}
+	};
+}
+
+export async function kairo_diamond() {
+	// Do 10 loops to warm up JIT
+	for (let i = 0; i < 10; i++) {
+		const { run, destroy } = setup();
+		run();
+		destroy();
+	}
+
+	const { run, destroy } = setup();
+
+	const { timing } = await fastest_test(10, () => {
+		for (let i = 0; i < 100; i++) {
+			run();
+		}
+	});
+
+	destroy();
+
+	return {
+		benchmark: 'kairo_diamond',
+		time: timing.time.toFixed(2),
+		gc_time: timing.gc_time.toFixed(2)
+	};
+}
diff --git a/benchmarking/benchmarks/kairo/kairo_mux.js b/benchmarking/benchmarks/kairo/kairo_mux.js
new file mode 100644
index 0000000000..d2867f499b
--- /dev/null
+++ b/benchmarking/benchmarks/kairo/kairo_mux.js
@@ -0,0 +1,63 @@
+import { assert, fastest_test } from '../../utils.js';
+import * as $ from '../../../packages/svelte/src/internal/client/index.js';
+
+function setup() {
+	let heads = new Array(100).fill(null).map((_) => $.source(0));
+  const mux = $.derived(() => {
+    return Object.fromEntries(heads.map((h) => $.get(h)).entries());
+  });
+  const splited = heads
+    .map((_, index) => $.derived(() => $.get(mux)[index]))
+    .map((x) => $.derived(() => $.get(x) + 1));
+
+	const destroy = $.effect_root(() => {
+		splited.forEach((x) => {
+			$.render_effect(() => {
+				$.get(x);
+			});
+		});
+	});
+
+	return {
+		destroy,
+		run() {
+			for (let i = 0; i < 10; i++) {
+				$.flush_sync(() => {
+					$.set(heads[i], i);
+				});
+				assert($.get(splited[i]) === i + 1);
+			}
+			for (let i = 0; i < 10; i++) {
+				$.flush_sync(() => {
+					$.set(heads[i], i * 2);
+				});
+				assert($.get(splited[i]) === i * 2 + 1);
+			}
+		}
+	};
+}
+
+export async function kairo_mux() {
+	// Do 10 loops to warm up JIT
+	for (let i = 0; i < 10; i++) {
+		const { run, destroy } = setup();
+		run();
+		destroy();
+	}
+
+	const { run, destroy } = setup();
+
+	const { timing } = await fastest_test(10, () => {
+		for (let i = 0; i < 100; i++) {
+			run();
+		}
+	});
+
+	destroy();
+
+	return {
+		benchmark: 'kairo_mux',
+		time: timing.time.toFixed(2),
+		gc_time: timing.gc_time.toFixed(2)
+	};
+}
diff --git a/benchmarking/benchmarks/kairo/kairo_repeated.js b/benchmarking/benchmarks/kairo/kairo_repeated.js
new file mode 100644
index 0000000000..fd22c1e563
--- /dev/null
+++ b/benchmarking/benchmarks/kairo/kairo_repeated.js
@@ -0,0 +1,67 @@
+import { assert, fastest_test } from '../../utils.js';
+import * as $ from '../../../packages/svelte/src/internal/client/index.js';
+
+let size = 30;
+
+function setup() {
+  let head = $.source(0);
+  let current = $.derived(() => {
+    let result = 0;
+    for (let i = 0; i < size; i++) {
+      result += $.get(head);
+    }
+    return result;
+  });
+
+	let counter = 0;
+
+	const destroy = $.effect_root(() => {
+		$.render_effect(() => {
+			$.get(current);
+			counter++;
+		});
+	});
+
+	return {
+		destroy,
+		run() {
+			$.flush_sync(() => {
+				$.set(head, 1);
+			});
+			assert($.get(current) === size);
+			counter = 0;
+			for (let i = 0; i < 100; i++) {
+				$.flush_sync(() => {
+					$.set(head, i);
+				});
+				assert($.get(current) === i * size);
+			}
+			assert(counter === 100);
+		}
+	};
+}
+
+export async function kairo_repeated() {
+	// Do 10 loops to warm up JIT
+	for (let i = 0; i < 10; i++) {
+		const { run, destroy } = setup();
+		run();
+		destroy();
+	}
+
+	const { run, destroy } = setup();
+
+	const { timing } = await fastest_test(10, () => {
+		for (let i = 0; i < 100; i++) {
+			run();
+		}
+	});
+
+	destroy();
+
+	return {
+		benchmark: 'kairo_repeated',
+		time: timing.time.toFixed(2),
+		gc_time: timing.gc_time.toFixed(2)
+	};
+}
diff --git a/benchmarking/benchmarks/kairo/kairo_triangle.js b/benchmarking/benchmarks/kairo/kairo_triangle.js
new file mode 100644
index 0000000000..4e8afe1b82
--- /dev/null
+++ b/benchmarking/benchmarks/kairo/kairo_triangle.js
@@ -0,0 +1,80 @@
+import { assert, fastest_test } from '../../utils.js';
+import * as $ from '../../../packages/svelte/src/internal/client/index.js';
+
+let width = 10;
+
+function count(number) {
+  return new Array(number)
+    .fill(0)
+    .map((_, i) => i + 1)
+    .reduce((x, y) => x + y, 0);
+}
+
+function setup() {
+	let head = $.source(0);
+  let current = head;
+  let list = [];
+  for (let i = 0; i < width; i++) {
+    let c = current;
+    list.push(current);
+    current = $.derived(() => {
+      return $.get(c) + 1;
+    });
+  }
+  let sum = $.derived(() => {
+    return list.map((x) => $.get(x)).reduce((a, b) => a + b, 0);
+  });
+
+	let counter = 0;
+
+	const destroy = $.effect_root(() => {
+		$.render_effect(() => {
+			$.get(sum);
+			counter++;
+		});
+	});
+
+	return {
+		destroy,
+		run() {
+			const constant = count(width);
+			$.flush_sync(() => {
+				$.set(head, 1);
+			});
+			assert($.get(sum) === constant);
+			counter = 0;
+			for (let i = 0; i < 100; i++) {
+				$.flush_sync(() => {
+					$.set(head, i);
+				});
+				assert($.get(sum) === constant - width + i * width);
+			}
+			assert(counter === 100);
+		}
+	};
+}
+
+export async function kairo_triangle() {
+	// Do 10 loops to warm up JIT
+	for (let i = 0; i < 10; i++) {
+		const { run, destroy } = setup();
+		run();
+		destroy();
+	}
+
+	const { run, destroy } = setup();
+
+	const { timing } = await fastest_test(10, () => {
+		for (let i = 0; i < 100; i++) {
+			run();
+		}
+	});
+
+	destroy();
+
+	return {
+		benchmark: 'kairo_triangle',
+		time: timing.time.toFixed(2),
+		gc_time: timing.gc_time.toFixed(2)
+	};
+}
diff --git a/benchmarking/benchmarks/kairo/kairo_unstable.js b/benchmarking/benchmarks/kairo/kairo_unstable.js
new file mode 100644
index 0000000000..0185d12868
--- /dev/null
+++ b/benchmarking/benchmarks/kairo/kairo_unstable.js
@@ -0,0 +1,66 @@
+import { assert, fastest_test } from '../../utils.js';
+import * as $ from '../../../packages/svelte/src/internal/client/index.js';
+
+function setup() {
+  let head = $.source(0);
+  const double = $.derived(() => $.get(head) * 2);
+  const inverse = $.derived(() => -$.get(head));
+  let current = $.derived(() => {
+    let result = 0;
+    for (let i = 0; i < 20; i++) {
+      result += $.get(head) % 2 ? $.get(double) : $.get(inverse);
+    }
+    return result;
+  });
+
+	let counter = 0;
+
+	const destroy = $.effect_root(() => {
+		$.render_effect(() => {
+			$.get(current);
+			counter++;
+		});
+	});
+
+	return {
+		destroy,
+		run() {
+			$.flush_sync(() => {
+				$.set(head, 1);
+			});
+			assert($.get(current) === 40);
+			counter = 0;
+			for (let i = 0; i < 100; i++) {
+				$.flush_sync(() => {
+					$.set(head, i);
+				});
+			}
+			assert(counter === 100);
+		}
+	};
+}
+
+export async function kairo_unstable() {
+	// Do 10 loops to warm up JIT
+	for (let i = 0; i < 10; i++) {
+		const { run, destroy } = setup();
+		run();
+		destroy();
+	}
+
+	const { run, destroy } = setup();
+
+	const { timing } = await fastest_test(10, () => {
+		for (let i = 0; i < 100; i++) {
+			run();
+		}
+	});
+
+	destroy();
+
+	return {
+		benchmark: 'kairo_unstable',
+		time: timing.time.toFixed(2),
+		gc_time: timing.gc_time.toFixed(2)
+	};
+}
diff --git a/benchmarking/benchmarks/kairo/util.js b/benchmarking/benchmarks/kairo/util.js
new file mode 100644
index 0000000000..5c73e99eec
--- /dev/null
+++ b/benchmarking/benchmarks/kairo/util.js
@@ -0,0 +1,7 @@
+
+export function busy() {
+  let a = 0;
+  for (let i = 0; i < 1_00; i++) {
+    a++;
+  }
+}
diff --git a/benchmarking/benchmarks/mol_bench.js b/benchmarking/benchmarks/mol_bench.js
new file mode 100644
index 0000000000..7fa49d7df4
--- /dev/null
+++ b/benchmarking/benchmarks/mol_bench.js
@@ -0,0 +1,90 @@
+import { assert, fastest_test } from '../utils.js';
+import * as $ from '../../packages/svelte/src/internal/client/index.js';
+
+/**
+ * @param {number} n
+ */
+function fib(n) {
+	if (n < 2) return 1;
+	return fib(n - 1) + fib(n - 2);
+}
+
+/**
+ * @param {number} n
+ */
+function hard(n) {
+	return n + fib(16);
+}
+
+const numbers = Array.from({ length: 5 }, (_, i) => i);
+
+function setup() {
+	let res = [];
+	const A = $.source(0);
+	const B = $.source(0);
+	const C = $.derived(() => ($.get(A) % 2) + ($.get(B) % 2));
+	const D = $.derived(() => numbers.map((i) => i + ($.get(A) % 2) - ($.get(B) % 2)));
+	D.equals = function (/** @type {number[]} */ l) {
+		var r = this.v;
+		return r !== null && l.length === r.length && l.every((v, i) => v === r[i]);
+	};
+	const E = $.derived(() => hard($.get(C) + $.get(A) + $.get(D)[0]));
+	const F = $.derived(() => hard($.get(D)[0] && $.get(B)));
+	const G = $.derived(() => $.get(C) + ($.get(C) || $.get(E) % 2) + $.get(D)[0] + $.get(F));
+
+	const destroy = $.effect_root(() => {
+		$.render_effect(() => {
+			res.push(hard($.get(G)));
+		});
+		$.render_effect(() => {
+			res.push($.get(G));
+		});
+		$.render_effect(() => {
+			res.push(hard($.get(F)));
+		});
+	});
+
+	return {
+		destroy,
+		/**
+		 * @param {number} i
+		 */
+		run(i) {
+			res.length = 0;
+			$.flush_sync(() => {
+				$.set(B, 1);
+				$.set(A, 1 + i * 2);
+			});
+			$.flush_sync(() => {
+				$.set(A, 2 + i * 2);
+				$.set(B, 2);
+			});
+			assert(res[0] === 3198 && res[1] === 1601 && res[2] === 3195 && res[3] === 1598);
+		}
+	};
+}
+
+export async function mol_bench() {
+	// Do 10 loops to warm up JIT
+	for (let i = 0; i < 10; i++) {
+		const { run, destroy } = setup();
+		run(0);
+		destroy();
+	}
+
+	const { run, destroy } = setup();
+
+	const { timing } = await fastest_test(10, () => {
+		for (let i = 0; i < 1e4; i++) {
+			run(i);
+		}
+	});
+
+	destroy();
+
+	return {
+		benchmark: 'mol_bench',
+		time: timing.time.toFixed(2),
+		gc_time: timing.gc_time.toFixed(2)
+	};
+}
diff --git a/benchmarking/compare/index.js b/benchmarking/compare/index.js
new file mode 100644
index 0000000000..a5fc6d10a9
--- /dev/null
+++ b/benchmarking/compare/index.js
@@ -0,0 +1,90 @@
+import fs from 'node:fs';
+import path from 'node:path';
+import { execSync, fork } from 'node:child_process';
+import { fileURLToPath } from 'node:url';
+import { benchmarks } from '../benchmarks.js';
+
+// if (execSync('git status --porcelain').toString().trim()) {
+// 	console.error('Working directory is not clean');
+// 	process.exit(1);
+// }
+
+const filename = fileURLToPath(import.meta.url);
+const runner = path.resolve(filename, '../runner.js');
+const outdir = path.resolve(filename, '../.results');
+
+if (fs.existsSync(outdir)) fs.rmSync(outdir, { recursive: true });
+fs.mkdirSync(outdir);
+
+const branches = [];
+
+for (const arg of process.argv.slice(2)) {
+	if (arg.startsWith('--')) continue;
+	if (arg === filename) continue;
+
+	branches.push(arg);
+}
+
+if (branches.length === 0) {
+	branches.push(
+		execSync('git symbolic-ref --short -q HEAD || git rev-parse --short HEAD').toString().trim()
+	);
+}
+
+if (branches.length === 1) {
+	branches.push('main');
+}
+
+process.on('exit', () => {
+	execSync(`git checkout ${branches[0]}`);
+});
+
+for (const branch of branches) {
+	console.group(`Benchmarking ${branch}`);
+
+	execSync(`git checkout ${branch}`);
+
+	await new Promise((fulfil, reject) => {
+		const child = fork(runner);
+
+		child.on('message', (results) => {
+			fs.writeFileSync(`${outdir}/${branch}.json`, JSON.stringify(results, null, '  '));
+			fulfil();
+		});
+
+		child.on('error', reject);
+	});
+
+	console.groupEnd();
+}
+
+const results = branches.map((branch) => {
+	return JSON.parse(fs.readFileSync(`${outdir}/${branch}.json`, 'utf-8'));
+});
+
+for (let i = 0; i < results[0].length; i += 1) {
+	console.group(`${results[0][i].benchmark}`);
+
+	for (const metric of ['time', 'gc_time']) {
+		const times = results.map((result) => +result[i][metric]);
+		let min = Infinity;
+		let min_index = -1;
+
+		for (let b = 0; b < times.length; b += 1) {
+			if (times[b] < min) {
+				min = times[b];
+				min_index = b;
+			}
+		}
+
+		if (min !== 0) {
+			console.group(`${metric}: fastest is ${branches[min_index]}`);
+			times.forEach((time, b) => {
+				console.log(`${branches[b]}: ${time.toFixed(2)}ms (${((time / min) * 100).toFixed(2)}%)`);
+			});
+			console.groupEnd();
+		}
+	}
+
+	console.groupEnd();
+}
diff --git a/benchmarking/compare/runner.js b/benchmarking/compare/runner.js
new file mode 100644
index 0000000000..6fa58e2bac
--- /dev/null
+++ b/benchmarking/compare/runner.js
@@ -0,0 +1,10 @@
+import { benchmarks } from '../benchmarks.js';
+
+const results = [];
+for (const benchmark of benchmarks) {
+	const result = await benchmark();
+	console.error(result.benchmark);
+	results.push(result);
+}
+
+process.send(results);
diff --git a/benchmarking/run.js b/benchmarking/run.js
new file mode 100644
index 0000000000..35a6ac307f
--- /dev/null
+++ b/benchmarking/run.js
@@ -0,0 +1,32 @@
+import * as $ from '../packages/svelte/src/internal/client/index.js';
+import { benchmarks } from './benchmarks.js';
+
+let total_time = 0;
+let total_gc_time = 0;
+
+// eslint-disable-next-line no-console
+console.log('-- Benchmarking Started --');
+$.push({}, true);
+try {
+	for (const benchmark of benchmarks) {
+		const results = await benchmark();
+		// eslint-disable-next-line no-console
+		console.log(results);
+		total_time += Number(results.time);
+		total_gc_time += Number(results.gc_time);
+	}
+} catch (e) {
+	// eslint-disable-next-line no-console
+	console.error('-- Benchmarking Failed --');
+	// eslint-disable-next-line no-console
+	console.error(e);
+	process.exit(1);
+}
+$.pop();
+// eslint-disable-next-line no-console
+console.log('-- Benchmarking Complete --');
+// eslint-disable-next-line no-console
+console.log({
+	total_time: total_time.toFixed(2),
+	total_gc_time: total_gc_time.toFixed(2)
+});
diff --git a/benchmarking/tsconfig.json b/benchmarking/tsconfig.json
new file mode 100644
index 0000000000..81fe19744a
--- /dev/null
+++ b/benchmarking/tsconfig.json
@@ -0,0 +1,17 @@
+{
+	"compilerOptions": {
+		"moduleResolution": "Bundler",
+		"target": "ESNext",
+		"module": "ESNext",
+		"verbatimModuleSyntax": true,
+		"isolatedModules": true,
+		"resolveJsonModule": true,
+		"sourceMap": true,
+		"esModuleInterop": true,
+		"skipLibCheck": true,
+		"forceConsistentCasingInFileNames": true,
+		"allowJs": true,
+		"checkJs": true
+	},
+	"include": ["./run.js", "./utils.js", "./benchmarks"]
+}
diff --git a/benchmarking/utils.js b/benchmarking/utils.js
new file mode 100644
index 0000000000..db2fa753ee
--- /dev/null
+++ b/benchmarking/utils.js
@@ -0,0 +1,98 @@
+import { performance, PerformanceObserver } from 'node:perf_hooks';
+import v8 from 'v8-natives';
+
+// Credit to https://github.com/milomg/js-reactivity-benchmark for the logic for timing + GC tracking.
+
+class GarbageTrack {
+	track_id = 0;
+	observer = new PerformanceObserver((list) => this.perf_entries.push(...list.getEntries()));
+	perf_entries = [];
+	periods = [];
+
+	watch(fn) {
+		this.track_id++;
+		const start = performance.now();
+		const result = fn();
+		const end = performance.now();
+		this.periods.push({ track_id: this.track_id, start, end });
+
+		return { result, track_id: this.track_id };
+	}
+
+	/**
+	 * @param {number} track_id
+	 */
+	async gcDuration(track_id) {
+		await promise_delay(10);
+
+		const period = this.periods.find((period) => period.track_id === track_id);
+		if (!period) {
+			// eslint-disable-next-line @typescript-eslint/prefer-promise-reject-errors
+			return Promise.reject('no period found');
+		}
+
+		const entries = this.perf_entries.filter(
+			(e) => e.startTime >= period.start && e.startTime < period.end
+		);
+		return entries.reduce((t, e) => e.duration + t, 0);
+	}
+
+	destroy() {
+		this.observer.disconnect();
+	}
+
+	constructor() {
+		this.observer.observe({ entryTypes: ['gc'] });
+	}
+}
+
+function promise_delay(timeout = 0) {
+	return new Promise((resolve) => setTimeout(resolve, timeout));
+}
+
+/**
+ * @param {{ (): void; (): any; }} fn
+ */
+function run_timed(fn) {
+	const start = performance.now();
+	const result = fn();
+	const time = performance.now() - start;
+	return { result, time };
+}
+
+/**
+ * @param {() => void} fn
+ */
+async function run_tracked(fn) {
+	v8.collectGarbage();
+	const gc_track = new GarbageTrack();
+	const { result: wrappedResult, track_id } = gc_track.watch(() => run_timed(fn));
+	const gc_time = await gc_track.gcDuration(track_id);
+	const { result, time } = wrappedResult;
+	gc_track.destroy();
+	return { result, timing: { time, gc_time } };
+}
+
+/**
+ * @param {number} times
+ * @param {() => void} fn
+ */
+export async function fastest_test(times, fn) {
+	const results = [];
+	for (let i = 0; i < times; i++) {
+		const run = await run_tracked(fn);
+		results.push(run);
+	}
+	const fastest = results.reduce((a, b) => (a.timing.time < b.timing.time ? a : b));
+
+	return fastest;
+}
+
+/**
+ * @param {boolean} a
+ */
+export function assert(a) {
+	if (!a) {
+		throw new Error('Assertion failed');
+	}
+}
diff --git a/package.json b/package.json
index bb50cef2d5..ee8dc4f836 100644
--- a/package.json
+++ b/package.json
@@ -23,7 +23,10 @@
     "test": "vitest run",
     "test-output": "vitest run --coverage --reporter=json --outputFile=sites/svelte-5-preview/src/routes/status/results.json",
     "changeset:version": "changeset version && pnpm -r generate:version && git add --all",
-    "changeset:publish": "changeset publish"
+    "changeset:publish": "changeset publish",
+    "bench": "node --allow-natives-syntax ./benchmarking/run.js",
+    "bench:compare": "node --allow-natives-syntax ./benchmarking/compare/index.js",
+    "bench:debug": "node --allow-natives-syntax --inspect-brk ./benchmarking/run.js"
   },
   "devDependencies": {
     "@changesets/cli": "^2.27.1",
@@ -41,6 +44,7 @@
     "prettier-plugin-svelte": "^3.1.2",
     "typescript": "^5.3.3",
     "typescript-eslint": "^8.0.0-alpha.20",
+    "v8-natives": "^1.2.5",
     "vitest": "^1.2.1"
   },
   "pnpm": {
diff --git a/packages/svelte/CHANGELOG.md b/packages/svelte/CHANGELOG.md
index b132e414a6..f6cb14fa8a 100644
--- a/packages/svelte/CHANGELOG.md
+++ b/packages/svelte/CHANGELOG.md
@@ -1,5 +1,23 @@
 # svelte
 
+## 5.0.0-next.160
+
+### Patch Changes
+
+- chore: improve runtime performance of capturing reactive signals ([#12093](https://github.com/sveltejs/svelte/pull/12093))
+
+## 5.0.0-next.159
+
+### Patch Changes
+
+- fix: ensure element size bindings don't unsubscribe multiple times from the resize observer ([#12091](https://github.com/sveltejs/svelte/pull/12091))
+
+- fix: prevent misidentification of bindings as delegatable event handlers if used outside event attribute ([#12081](https://github.com/sveltejs/svelte/pull/12081))
+
+- fix: preserve current input values when removing defaults ([#12083](https://github.com/sveltejs/svelte/pull/12083))
+
+- fix: preserve component function context for nested components ([#12089](https://github.com/sveltejs/svelte/pull/12089))
+
 ## 5.0.0-next.158
 
 ### Patch Changes
diff --git a/packages/svelte/elements.d.ts b/packages/svelte/elements.d.ts
index 191308bbf2..05c113358e 100644
--- a/packages/svelte/elements.d.ts
+++ b/packages/svelte/elements.d.ts
@@ -113,6 +113,7 @@ export interface DOMAttributes<T extends EventTarget> {
 	'on:beforeinput'?: EventHandler<InputEvent, T> | undefined | null;
 	onbeforeinput?: EventHandler<InputEvent, T> | undefined | null;
 	onbeforeinputcapture?: EventHandler<InputEvent, T> | undefined | null;
+	// oninput can be either an InputEvent or an Event, depending on the target element (input, textarea etc).
 	'on:input'?: FormEventHandler<T> | undefined | null;
 	oninput?: FormEventHandler<T> | undefined | null;
 	oninputcapture?: FormEventHandler<T> | undefined | null;
diff --git a/packages/svelte/package.json b/packages/svelte/package.json
index 09c70a1522..ff6c49cb83 100644
--- a/packages/svelte/package.json
+++ b/packages/svelte/package.json
@@ -2,7 +2,7 @@
   "name": "svelte",
   "description": "Cybernetically enhanced web apps",
   "license": "MIT",
-  "version": "5.0.0-next.158",
+  "version": "5.0.0-next.160",
   "type": "module",
   "types": "./types/index.d.ts",
   "engines": {
diff --git a/packages/svelte/src/compiler/phases/2-analyze/index.js b/packages/svelte/src/compiler/phases/2-analyze/index.js
index 16c0e8f834..ad39beb4eb 100644
--- a/packages/svelte/src/compiler/phases/2-analyze/index.js
+++ b/packages/svelte/src/compiler/phases/2-analyze/index.js
@@ -111,23 +111,24 @@ function get_delegated_event(event_name, handler, context) {
 		if (binding != null) {
 			for (const { path } of binding.references) {
 				const parent = path.at(-1);
-				if (parent == null) {
-					return non_hoistable;
-				}
+				if (parent == null) return non_hoistable;
+
+				const grandparent = path.at(-2);
 
 				/** @type {import('#compiler').RegularElement | null} */
 				let element = null;
 				/** @type {string | null} */
 				let event_name = null;
 				if (parent.type === 'OnDirective') {
-					element = /** @type {import('#compiler').RegularElement} */ (path.at(-2));
+					element = /** @type {import('#compiler').RegularElement} */ (grandparent);
 					event_name = parent.name;
 				} else if (
 					parent.type === 'ExpressionTag' &&
-					is_event_attribute(/** @type {import('#compiler').Attribute} */ (path.at(-2)))
+					grandparent?.type === 'Attribute' &&
+					is_event_attribute(grandparent)
 				) {
 					element = /** @type {import('#compiler').RegularElement} */ (path.at(-3));
-					const attribute = /** @type {import('#compiler').Attribute} */ (path.at(-2));
+					const attribute = /** @type {import('#compiler').Attribute} */ (grandparent);
 					event_name = get_attribute_event_name(attribute.name);
 				}
 
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 b72b61cf7d..d8ae6749f4 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
@@ -886,7 +886,12 @@ function serialize_inline_component(node, component_name, context) {
 
 		if (slot_name === 'default' && !has_children_prop) {
 			push_prop(
-				b.init('children', context.state.options.dev ? b.call('$.wrap_snippet', slot_fn) : slot_fn)
+				b.init(
+					'children',
+					context.state.options.dev
+						? b.call('$.wrap_snippet', slot_fn, b.id(context.state.analysis.name))
+						: slot_fn
+				)
 			);
 			// We additionally add the default slot as a boolean, so that the slot render function on the other
 			// side knows it should get the content to render from $$props.children
@@ -2030,7 +2035,7 @@ export const template_visitors = {
 		}
 
 		if (needs_input_reset && node.name === 'input') {
-			context.state.init.push(b.stmt(b.call('$.remove_input_attr_defaults', context.state.node)));
+			context.state.init.push(b.stmt(b.call('$.remove_input_defaults', context.state.node)));
 		}
 
 		if (needs_content_reset && node.name === 'textarea') {
@@ -2699,7 +2704,7 @@ export const template_visitors = {
 		let snippet = b.arrow(args, body);
 
 		if (context.state.options.dev) {
-			snippet = b.call('$.wrap_snippet', snippet);
+			snippet = b.call('$.wrap_snippet', snippet, b.id(context.state.analysis.name));
 		}
 
 		const declaration = b.var(node.expression, snippet);
diff --git a/packages/svelte/src/internal/client/dom/blocks/snippet.js b/packages/svelte/src/internal/client/dom/blocks/snippet.js
index 5bf13a45d8..611733feb1 100644
--- a/packages/svelte/src/internal/client/dom/blocks/snippet.js
+++ b/packages/svelte/src/internal/client/dom/blocks/snippet.js
@@ -39,15 +39,13 @@ export function snippet(get_snippet, node, ...args) {
  * In development, wrap the snippet function so that it passes validation, and so that the
  * correct component context is set for ownership checks
  * @param {(node: import('#client').TemplateNode, ...args: any[]) => import('#client').Dom} fn
- * @returns
+ * @param {any} component
  */
-export function wrap_snippet(fn) {
-	let component = /** @type {import('#client').ComponentContext} */ (current_component_context);
-
+export function wrap_snippet(fn, component) {
 	return add_snippet_symbol(
 		(/** @type {import('#client').TemplateNode} */ node, /** @type {any[]} */ ...args) => {
 			var previous_component_function = dev_current_component_function;
-			set_dev_current_component_function(component.function);
+			set_dev_current_component_function(component);
 
 			try {
 				return fn(node, ...args);
diff --git a/packages/svelte/src/internal/client/dom/elements/attributes.js b/packages/svelte/src/internal/client/dom/elements/attributes.js
index e6d6e78c1f..d09667dd90 100644
--- a/packages/svelte/src/internal/client/dom/elements/attributes.js
+++ b/packages/svelte/src/internal/client/dom/elements/attributes.js
@@ -16,29 +16,40 @@ import { queue_idle_task, queue_micro_task } from '../task.js';
 /**
  * The value/checked attribute in the template actually corresponds to the defaultValue property, so we need
  * to remove it upon hydration to avoid a bug when someone resets the form value.
- * @param {HTMLInputElement} dom
+ * @param {HTMLInputElement} input
  * @returns {void}
  */
-export function remove_input_attr_defaults(dom) {
-	if (hydrating) {
-		let already_removed = false;
-		// We try and remove the default attributes later, rather than sync during hydration.
-		// Doing it sync during hydration has a negative impact on performance, but deferring the
-		// work in an idle task alleviates this greatly. If a form reset event comes in before
-		// the idle callback, then we ensure the input defaults are cleared just before.
-		const remove_defaults = () => {
-			if (already_removed) return;
-			already_removed = true;
-			const value = dom.getAttribute('value');
-			set_attribute(dom, 'value', null);
-			set_attribute(dom, 'checked', null);
-			if (value) dom.value = value;
-		};
-		// @ts-expect-error
-		dom.__on_r = remove_defaults;
-		queue_idle_task(remove_defaults);
-		add_form_reset_listener();
-	}
+export function remove_input_defaults(input) {
+	if (!hydrating) return;
+
+	var already_removed = false;
+
+	// We try and remove the default attributes later, rather than sync during hydration.
+	// Doing it sync during hydration has a negative impact on performance, but deferring the
+	// work in an idle task alleviates this greatly. If a form reset event comes in before
+	// the idle callback, then we ensure the input defaults are cleared just before.
+	var remove_defaults = () => {
+		if (already_removed) return;
+		already_removed = true;
+
+		// Remove the attributes but preserve the values
+		if (input.hasAttribute('value')) {
+			var value = input.value;
+			set_attribute(input, 'value', null);
+			input.value = value;
+		}
+
+		if (input.hasAttribute('checked')) {
+			var checked = input.checked;
+			set_attribute(input, 'checked', null);
+			input.checked = checked;
+		}
+	};
+
+	// @ts-expect-error
+	input.__on_r = remove_defaults;
+	queue_idle_task(remove_defaults);
+	add_form_reset_listener();
 }
 
 /**
diff --git a/packages/svelte/src/internal/client/dom/elements/bindings/size.js b/packages/svelte/src/internal/client/dom/elements/bindings/size.js
index e0ad045d80..c817787497 100644
--- a/packages/svelte/src/internal/client/dom/elements/bindings/size.js
+++ b/packages/svelte/src/internal/client/dom/elements/bindings/size.js
@@ -1,4 +1,5 @@
 import { effect, teardown } from '../../../reactivity/effects.js';
+import { untrack } from '../../../runtime.js';
 
 /**
  * Resize observer singleton.
@@ -100,7 +101,8 @@ export function bind_element_size(element, type, update) {
 	var unsub = resize_observer_border_box.observe(element, () => update(element[type]));
 
 	effect(() => {
-		update(element[type]);
+		// The update could contain reads which should be ignored
+		untrack(() => update(element[type]));
 		return unsub;
 	});
 }
diff --git a/packages/svelte/src/internal/client/index.js b/packages/svelte/src/internal/client/index.js
index 148c64bb69..36df01ce18 100644
--- a/packages/svelte/src/internal/client/index.js
+++ b/packages/svelte/src/internal/client/index.js
@@ -21,7 +21,7 @@ export { element } from './dom/blocks/svelte-element.js';
 export { head } from './dom/blocks/svelte-head.js';
 export { action } from './dom/elements/actions.js';
 export {
-	remove_input_attr_defaults,
+	remove_input_defaults,
 	set_attribute,
 	set_attributes,
 	set_custom_element_data,
diff --git a/packages/svelte/src/internal/client/render.js b/packages/svelte/src/internal/client/render.js
index 82d2c6bd57..f380f3729f 100644
--- a/packages/svelte/src/internal/client/render.js
+++ b/packages/svelte/src/internal/client/render.js
@@ -251,6 +251,7 @@ function _mount(Component, { target, anchor, props = {}, events, context, intro
 		return () => {
 			for (const event_name of registered_events) {
 				target.removeEventListener(event_name, bound_event_listener);
+				document.removeEventListener(event_name, bound_event_listener);
 			}
 			root_event_handles.delete(event_handle);
 			mounted_components.delete(component);
diff --git a/packages/svelte/src/version.js b/packages/svelte/src/version.js
index 6b9acb45e3..1b9efa6021 100644
--- a/packages/svelte/src/version.js
+++ b/packages/svelte/src/version.js
@@ -6,5 +6,5 @@
  * https://svelte.dev/docs/svelte-compiler#svelte-version
  * @type {string}
  */
-export const VERSION = '5.0.0-next.158';
+export const VERSION = '5.0.0-next.160';
 export const PUBLIC_VERSION = '5';
diff --git a/packages/svelte/tests/hydration/samples/input-value-changed/_config.js b/packages/svelte/tests/hydration/samples/input-value-changed/_config.js
new file mode 100644
index 0000000000..f8c0dea072
--- /dev/null
+++ b/packages/svelte/tests/hydration/samples/input-value-changed/_config.js
@@ -0,0 +1,16 @@
+import { test } from '../../test';
+
+export default test({
+	server_props: {
+		name: 'server'
+	},
+
+	props: {
+		name: 'browser'
+	},
+
+	test(assert, target) {
+		const input = target.querySelector('input');
+		assert.equal(input?.value, 'browser');
+	}
+});
diff --git a/packages/svelte/tests/hydration/samples/input-value-changed/_expected.html b/packages/svelte/tests/hydration/samples/input-value-changed/_expected.html
new file mode 100644
index 0000000000..c5384e717e
--- /dev/null
+++ b/packages/svelte/tests/hydration/samples/input-value-changed/_expected.html
@@ -0,0 +1 @@
+<!--[--><input type="text"><!--]-->
diff --git a/packages/svelte/tests/hydration/samples/input-value-changed/main.svelte b/packages/svelte/tests/hydration/samples/input-value-changed/main.svelte
new file mode 100644
index 0000000000..c07692dc02
--- /dev/null
+++ b/packages/svelte/tests/hydration/samples/input-value-changed/main.svelte
@@ -0,0 +1,5 @@
+<script>
+	const { name } = $props();
+</script>
+
+<input type="text" value={name} />
diff --git a/packages/svelte/tests/runtime-runes/samples/event-on-3/_config.js b/packages/svelte/tests/runtime-runes/samples/event-on-3/_config.js
new file mode 100644
index 0000000000..5460c761ac
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/event-on-3/_config.js
@@ -0,0 +1,7 @@
+import { test } from '../../test';
+
+export default test({
+	test() {
+		// Compiler shouldn't error
+	}
+});
diff --git a/packages/svelte/tests/runtime-runes/samples/event-on-3/main.svelte b/packages/svelte/tests/runtime-runes/samples/event-on-3/main.svelte
new file mode 100644
index 0000000000..4fa2257227
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/event-on-3/main.svelte
@@ -0,0 +1,5 @@
+<script>
+	function f() {}
+</script>
+
+<input onchange={f}>{f}
diff --git a/packages/svelte/tests/runtime-runes/samples/non-local-mutation-with-binding-6/Component1.svelte b/packages/svelte/tests/runtime-runes/samples/non-local-mutation-with-binding-6/Component1.svelte
new file mode 100644
index 0000000000..17d34e7cf6
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/non-local-mutation-with-binding-6/Component1.svelte
@@ -0,0 +1,5 @@
+<script>
+	let { children } = $props();
+</script>
+
+{@render children()}
diff --git a/packages/svelte/tests/runtime-runes/samples/non-local-mutation-with-binding-6/Component2.svelte b/packages/svelte/tests/runtime-runes/samples/non-local-mutation-with-binding-6/Component2.svelte
new file mode 100644
index 0000000000..17d34e7cf6
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/non-local-mutation-with-binding-6/Component2.svelte
@@ -0,0 +1,5 @@
+<script>
+	let { children } = $props();
+</script>
+
+{@render children()}
diff --git a/packages/svelte/tests/runtime-runes/samples/non-local-mutation-with-binding-6/Component3.svelte b/packages/svelte/tests/runtime-runes/samples/non-local-mutation-with-binding-6/Component3.svelte
new file mode 100644
index 0000000000..57ef96fed5
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/non-local-mutation-with-binding-6/Component3.svelte
@@ -0,0 +1,5 @@
+<script lang="ts">
+	let { count = $bindable() } = $props();
+</script>
+
+<button onclick={() => count.value++}>{count.value}</button>
diff --git a/packages/svelte/tests/runtime-runes/samples/non-local-mutation-with-binding-6/_config.js b/packages/svelte/tests/runtime-runes/samples/non-local-mutation-with-binding-6/_config.js
new file mode 100644
index 0000000000..216f4c138a
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/non-local-mutation-with-binding-6/_config.js
@@ -0,0 +1,23 @@
+import { flushSync } from 'svelte';
+import { test } from '../../test';
+
+// Tests that nested snippets preserve correct component function context so we don't get false positive warnings
+export default test({
+	html: `<button>0</button>`,
+
+	compileOptions: {
+		dev: true
+	},
+
+	test({ assert, target, warnings }) {
+		const button = target.querySelector('button');
+
+		button?.click();
+		flushSync();
+
+		assert.htmlEqual(target.innerHTML, `<button>1</button>`);
+		assert.deepEqual(warnings, []);
+	},
+
+	warnings: []
+});
diff --git a/packages/svelte/tests/runtime-runes/samples/non-local-mutation-with-binding-6/main.svelte b/packages/svelte/tests/runtime-runes/samples/non-local-mutation-with-binding-6/main.svelte
new file mode 100644
index 0000000000..d2f53f5363
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/non-local-mutation-with-binding-6/main.svelte
@@ -0,0 +1,13 @@
+<script>
+	import Component1 from './Component1.svelte';
+	import Component2 from './Component2.svelte';
+	import Component3 from './Component3.svelte';
+
+	let count = $state({ value: 0 });
+</script>
+
+<Component1>
+	<Component2>
+		<Component3 bind:count></Component3>
+	</Component2>
+</Component1>
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 455f227e09..7cb2415bf5 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
@@ -16,11 +16,11 @@ export default function State_proxy_literal($$anchor) {
 	var fragment = root();
 	var input = $.first_child(fragment);
 
-	$.remove_input_attr_defaults(input);
+	$.remove_input_defaults(input);
 
 	var input_1 = $.sibling($.sibling(input, true));
 
-	$.remove_input_attr_defaults(input_1);
+	$.remove_input_defaults(input_1);
 
 	var button = $.sibling($.sibling(input_1, true));
 
@@ -30,4 +30,4 @@ export default function State_proxy_literal($$anchor) {
 	$.append($$anchor, fragment);
 }
 
-$.delegate(["click"]);
\ No newline at end of file
+$.delegate(["click"]);
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 8e63c570df..7c61c77e45 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -16,7 +16,7 @@ importers:
         version: 2.27.1
       '@sveltejs/eslint-config':
         specifier: ^7.0.1
-        version: 7.0.1(@stylistic/eslint-plugin-js@1.8.0(eslint@9.0.0))(eslint-config-prettier@9.1.0(eslint@9.0.0))(eslint-plugin-svelte@2.38.0(eslint@9.0.0)(svelte@5.0.0-next.144))(eslint-plugin-unicorn@52.0.0(eslint@9.0.0))(eslint@9.0.0)(typescript-eslint@8.0.0-alpha.20(eslint@9.0.0)(typescript@5.3.3))(typescript@5.3.3)
+        version: 7.0.1(@stylistic/eslint-plugin-js@1.8.0(eslint@9.0.0))(eslint-config-prettier@9.1.0(eslint@9.0.0))(eslint-plugin-svelte@2.38.0(eslint@9.0.0)(svelte@5.0.0-next.158))(eslint-plugin-unicorn@52.0.0(eslint@9.0.0))(eslint@9.0.0)(typescript-eslint@8.0.0-alpha.20(eslint@9.0.0)(typescript@5.3.3))(typescript@5.3.3)
       '@svitejs/changesets-changelog-github-compact':
         specifier: ^1.1.0
         version: 1.1.0
@@ -49,13 +49,16 @@ importers:
         version: 3.2.4
       prettier-plugin-svelte:
         specifier: ^3.1.2
-        version: 3.1.2(prettier@3.2.4)(svelte@5.0.0-next.144)
+        version: 3.1.2(prettier@3.2.4)(svelte@5.0.0-next.158)
       typescript:
         specifier: ^5.3.3
         version: 5.3.3
       typescript-eslint:
         specifier: ^8.0.0-alpha.20
         version: 8.0.0-alpha.20(eslint@9.0.0)(typescript@5.3.3)
+      v8-natives:
+        specifier: ^1.2.5
+        version: 1.2.5
       vitest:
         specifier: ^1.2.1
         version: 1.2.1(@types/node@20.11.5)(jsdom@22.0.0)(lightningcss@1.23.0)(sass@1.70.0)(terser@5.27.0)
@@ -4575,8 +4578,8 @@ packages:
     resolution: {integrity: sha512-hsoB/WZGEPFXeRRLPhPrbRz67PhP6sqYgvwcAs+gWdSQSvNDw+/lTeUJSWe5h2xC97Fz/8QxAOqItwBzNJPU8w==}
     engines: {node: '>=16'}
 
-  svelte@5.0.0-next.144:
-    resolution: {integrity: sha512-akjtRBHzaLa1XdMv9tBGkXE5N2JaRc3gL+ZIctjc9Gew9DF7NxGTlxXq+HR9yUV7Lsg4o9ltMfkxz8H3K7piNQ==}
+  svelte@5.0.0-next.158:
+    resolution: {integrity: sha512-QRmXxHByWntyWqLtzjNsBbNT89F2yA7aWPp9M9l9a6/PAE3gmQh6+qoVPgrxMR7iiFgpwh5ZU9Bm25j3IhGicQ==}
     engines: {node: '>=18'}
 
   symbol-tree@3.2.4:
@@ -4829,6 +4832,10 @@ packages:
     resolution: {integrity: sha512-pMZTvIkT1d+TFGvDOqodOclx0QWkkgi6Tdoa8gC8ffGAAqz9pzPTZWAybbsHHoED/ztMtkv/VoYTYyShUn81hA==}
     engines: {node: '>= 0.4.0'}
 
+  v8-natives@1.2.5:
+    resolution: {integrity: sha512-CVNliz6KF2yet3HBIkbFJKZmjlt95C8dsNZDnwoS6X98+QJRpsSz9uxo3TziBqdyJQkWwfD3VG9lRzsQNvF24Q==}
+    engines: {node: '>= 0.6.0'}
+
   v8-to-istanbul@9.2.0:
     resolution: {integrity: sha512-/EH/sDgxU2eGxajKdwLCDmQ4FWq+kpi3uCmBGpw1xJtnAxEjlD8j8PEiGWpCIMIs3ciNAgH0d3TTJiUkYzyZjA==}
     engines: {node: '>=10.12.0'}
@@ -6453,12 +6460,12 @@ snapshots:
       - encoding
       - supports-color
 
-  '@sveltejs/eslint-config@7.0.1(@stylistic/eslint-plugin-js@1.8.0(eslint@9.0.0))(eslint-config-prettier@9.1.0(eslint@9.0.0))(eslint-plugin-svelte@2.38.0(eslint@9.0.0)(svelte@5.0.0-next.144))(eslint-plugin-unicorn@52.0.0(eslint@9.0.0))(eslint@9.0.0)(typescript-eslint@8.0.0-alpha.20(eslint@9.0.0)(typescript@5.3.3))(typescript@5.3.3)':
+  '@sveltejs/eslint-config@7.0.1(@stylistic/eslint-plugin-js@1.8.0(eslint@9.0.0))(eslint-config-prettier@9.1.0(eslint@9.0.0))(eslint-plugin-svelte@2.38.0(eslint@9.0.0)(svelte@5.0.0-next.158))(eslint-plugin-unicorn@52.0.0(eslint@9.0.0))(eslint@9.0.0)(typescript-eslint@8.0.0-alpha.20(eslint@9.0.0)(typescript@5.3.3))(typescript@5.3.3)':
     dependencies:
       '@stylistic/eslint-plugin-js': 1.8.0(eslint@9.0.0)
       eslint: 9.0.0
       eslint-config-prettier: 9.1.0(eslint@9.0.0)
-      eslint-plugin-svelte: 2.38.0(eslint@9.0.0)(svelte@5.0.0-next.144)
+      eslint-plugin-svelte: 2.38.0(eslint@9.0.0)(svelte@5.0.0-next.158)
       eslint-plugin-unicorn: 52.0.0(eslint@9.0.0)
       globals: 15.0.0
       typescript: 5.3.3
@@ -7570,7 +7577,7 @@ snapshots:
 
   eslint-plugin-lube@0.4.3: {}
 
-  eslint-plugin-svelte@2.38.0(eslint@9.0.0)(svelte@5.0.0-next.144):
+  eslint-plugin-svelte@2.38.0(eslint@9.0.0)(svelte@5.0.0-next.158):
     dependencies:
       '@eslint-community/eslint-utils': 4.4.0(eslint@9.0.0)
       '@jridgewell/sourcemap-codec': 1.4.15
@@ -7584,9 +7591,9 @@ snapshots:
       postcss-safe-parser: 6.0.0(postcss@8.4.38)
       postcss-selector-parser: 6.0.16
       semver: 7.6.0
-      svelte-eslint-parser: 0.35.0(svelte@5.0.0-next.144)
+      svelte-eslint-parser: 0.35.0(svelte@5.0.0-next.158)
     optionalDependencies:
-      svelte: 5.0.0-next.144
+      svelte: 5.0.0-next.158
     transitivePeerDependencies:
       - supports-color
       - ts-node
@@ -9094,10 +9101,10 @@ snapshots:
       prettier: 3.2.4
       svelte: 4.2.9
 
-  prettier-plugin-svelte@3.1.2(prettier@3.2.4)(svelte@5.0.0-next.144):
+  prettier-plugin-svelte@3.1.2(prettier@3.2.4)(svelte@5.0.0-next.158):
     dependencies:
       prettier: 3.2.4
-      svelte: 5.0.0-next.144
+      svelte: 5.0.0-next.158
 
   prettier@2.8.8: {}
 
@@ -9726,7 +9733,7 @@ snapshots:
       - stylus
       - sugarss
 
-  svelte-eslint-parser@0.35.0(svelte@5.0.0-next.144):
+  svelte-eslint-parser@0.35.0(svelte@5.0.0-next.158):
     dependencies:
       eslint-scope: 7.2.2
       eslint-visitor-keys: 3.4.3
@@ -9734,7 +9741,7 @@ snapshots:
       postcss: 8.4.38
       postcss-scss: 4.0.9(postcss@8.4.38)
     optionalDependencies:
-      svelte: 5.0.0-next.144
+      svelte: 5.0.0-next.158
 
   svelte-hmr@0.16.0(svelte@4.2.9):
     dependencies:
@@ -9809,7 +9816,7 @@ snapshots:
       magic-string: 0.30.5
       periscopic: 3.1.0
 
-  svelte@5.0.0-next.144:
+  svelte@5.0.0-next.158:
     dependencies:
       '@ampproject/remapping': 2.2.1
       '@jridgewell/sourcemap-codec': 1.4.15
@@ -10070,6 +10077,8 @@ snapshots:
 
   utils-merge@1.0.1: {}
 
+  v8-natives@1.2.5: {}
+
   v8-to-istanbul@9.2.0:
     dependencies:
       '@jridgewell/trace-mapping': 0.3.22