diff --git a/.changeset/hungry-pants-push.md b/.changeset/hungry-pants-push.md
new file mode 100644
index 0000000000..4a341ad56f
--- /dev/null
+++ b/.changeset/hungry-pants-push.md
@@ -0,0 +1,5 @@
+---
+"svelte": patch
+---
+
+feat: provide better error messages in DEV
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 b668dc53bc..6bcf8aec47 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
@@ -449,13 +449,19 @@ export function client_component(source, analysis, options) {
 				b.id('import.meta.hot'),
 				b.block([
 					b.const(b.id('s'), b.call('$.source', b.id(analysis.name))),
+					b.const(b.id('filename'), b.member(b.id(analysis.name), b.id('filename'))),
 					b.stmt(b.assignment('=', b.id(analysis.name), b.call('$.hmr', b.id('s')))),
+					b.stmt(
+						b.assignment('=', b.member(b.id(analysis.name), b.id('filename')), b.id('filename'))
+					),
 					b.if(
 						b.id('import.meta.hot.acceptExports'),
-						b.stmt(
-							b.call('import.meta.hot.acceptExports', b.array([b.literal('default')]), accept_fn)
-						),
-						b.stmt(b.call('import.meta.hot.accept', accept_fn))
+						b.block([
+							b.stmt(
+								b.call('import.meta.hot.acceptExports', b.array([b.literal('default')]), accept_fn)
+							)
+						]),
+						b.block([b.stmt(b.call('import.meta.hot.accept', accept_fn))])
 					)
 				])
 			),
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 f7435612c2..e42e1cbc65 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
@@ -232,7 +232,7 @@ function setup_select_synchronization(value_binding, context) {
 	context.state.init.push(
 		b.stmt(
 			b.call(
-				'$.render_effect',
+				'$.template_effect',
 				b.thunk(
 					b.block([
 						b.stmt(
@@ -448,7 +448,7 @@ function serialize_dynamic_element_attributes(attributes, context, element_id) {
  * Resulting code for dynamic looks something like this:
  * ```js
  * let value;
- * $.render_effect(() => {
+ * $.template_effect(() => {
  * 	if (value !== (value = 'new value')) {
  * 		element.property = value;
  * 		// or
@@ -1184,7 +1184,7 @@ function serialize_update(statement) {
 	const body =
 		statement.type === 'ExpressionStatement' ? statement.expression : b.block([statement]);
 
-	return b.stmt(b.call('$.render_effect', b.thunk(body)));
+	return b.stmt(b.call('$.template_effect', b.thunk(body)));
 }
 
 /**
@@ -1194,7 +1194,7 @@ function serialize_update(statement) {
 function serialize_render_stmt(state) {
 	return state.update.length === 1
 		? serialize_update(state.update[0])
-		: b.stmt(b.call('$.render_effect', b.thunk(b.block(state.update))));
+		: b.stmt(b.call('$.template_effect', b.thunk(b.block(state.update))));
 }
 
 /**
@@ -1739,7 +1739,7 @@ export const template_visitors = {
 		state.init.push(
 			b.stmt(
 				b.call(
-					'$.render_effect',
+					'$.template_effect',
 					b.thunk(
 						b.block([
 							b.stmt(
diff --git a/packages/svelte/src/constants.js b/packages/svelte/src/constants.js
index d9fc86d600..0e3a1737ab 100644
--- a/packages/svelte/src/constants.js
+++ b/packages/svelte/src/constants.js
@@ -143,7 +143,8 @@ export const disallowed_paragraph_contents = [
 	'pre',
 	'section',
 	'table',
-	'ul'
+	'ul',
+	'p'
 ];
 
 // https://html.spec.whatwg.org/multipage/syntax.html#generate-implied-end-tags
diff --git a/packages/svelte/src/internal/client/index.js b/packages/svelte/src/internal/client/index.js
index eddcfc4b48..b42de9b68c 100644
--- a/packages/svelte/src/internal/client/index.js
+++ b/packages/svelte/src/internal/client/index.js
@@ -90,6 +90,7 @@ export {
 	legacy_pre_effect,
 	legacy_pre_effect_reset,
 	render_effect,
+	template_effect,
 	user_effect,
 	user_pre_effect
 } from './reactivity/effects.js';
diff --git a/packages/svelte/src/internal/client/reactivity/effects.js b/packages/svelte/src/internal/client/reactivity/effects.js
index fe361dec41..fe2fc12a4d 100644
--- a/packages/svelte/src/internal/client/reactivity/effects.js
+++ b/packages/svelte/src/internal/client/reactivity/effects.js
@@ -34,6 +34,7 @@ import { set } from './sources.js';
 import { remove } from '../dom/reconciler.js';
 import * as e from '../errors.js';
 import { DEV } from 'esm-env';
+import { define_property } from '../utils.js';
 
 /**
  * @param {'$effect' | '$effect.pre' | '$inspect'} rune
@@ -150,18 +151,25 @@ export function user_effect(fn) {
 
 	// Non-nested `$effect(...)` in a component should be deferred
 	// until the component is mounted
-	const defer =
+	var defer =
 		current_effect !== null &&
 		(current_effect.f & RENDER_EFFECT) !== 0 &&
 		// TODO do we actually need this? removing them changes nothing
 		current_component_context !== null &&
 		!current_component_context.m;
 
+	if (DEV) {
+		define_property(fn, 'name', {
+			value: '$effect'
+		});
+	}
+
 	if (defer) {
-		const context = /** @type {import('#client').ComponentContext} */ (current_component_context);
+		var context = /** @type {import('#client').ComponentContext} */ (current_component_context);
 		(context.e ??= []).push(fn);
 	} else {
-		effect(fn);
+		var signal = effect(fn);
+		return signal;
 	}
 }
 
@@ -172,6 +180,11 @@ export function user_effect(fn) {
  */
 export function user_pre_effect(fn) {
 	validate_effect('$effect.pre');
+	if (DEV) {
+		define_property(fn, 'name', {
+			value: '$effect.pre'
+		});
+	}
 	return render_effect(fn);
 }
 
@@ -249,6 +262,19 @@ export function render_effect(fn) {
 	return create_effect(RENDER_EFFECT, fn, true);
 }
 
+/**
+ * @param {() => void | (() => void)} fn
+ * @returns {import('#client').Effect}
+ */
+export function template_effect(fn) {
+	if (DEV) {
+		define_property(fn, 'name', {
+			value: '{expression}'
+		});
+	}
+	return render_effect(fn);
+}
+
 /**
  * @param {(() => void)} fn
  * @param {number} flags
diff --git a/packages/svelte/src/internal/client/render.js b/packages/svelte/src/internal/client/render.js
index 1db4c9111b..ee9cfbfc30 100644
--- a/packages/svelte/src/internal/client/render.js
+++ b/packages/svelte/src/internal/client/render.js
@@ -167,9 +167,15 @@ export function hydrate(component, options) {
 			return instance;
 		}, false);
 	} catch (error) {
-		if (!hydrated && options.recover !== false) {
+		if (
+			!hydrated &&
+			options.recover !== false &&
+			/** @type {Error} */ (error).message.includes('hydration_missing_marker_close')
+		) {
 			w.hydration_mismatch();
 
+			// If an error occured above, the operations might not yet have been initialised.
+			init_operations();
 			clear_text_content(target);
 
 			set_hydrating(false);
diff --git a/packages/svelte/src/internal/client/runtime.js b/packages/svelte/src/internal/client/runtime.js
index a37780b6b0..2b5496a990 100644
--- a/packages/svelte/src/internal/client/runtime.js
+++ b/packages/svelte/src/internal/client/runtime.js
@@ -28,6 +28,9 @@ import { lifecycle_outside_component } from '../shared/errors.js';
 const FLUSH_MICROTASK = 0;
 const FLUSH_SYNC = 1;
 
+// Used for DEV time error handling
+/** @param {WeakSet<Error>} value */
+const handled_errors = new WeakSet();
 // Used for controlling the flush of effects.
 let current_scheduler_mode = FLUSH_MICROTASK;
 // Used for handling scheduling
@@ -239,6 +242,62 @@ export function check_dirtiness(reaction) {
 	return is_dirty;
 }
 
+/**
+ * @param {Error} error
+ * @param {import("#client").Effect} effect
+ * @param {import("#client").ComponentContext | null} component_context
+ */
+function handle_error(error, effect, component_context) {
+	// Given we don't yet have error boundaries, we will just always throw.
+	if (!DEV || handled_errors.has(error) || component_context === null) {
+		throw error;
+	}
+
+	const component_stack = [];
+
+	const effect_name = effect.fn.name;
+
+	if (effect_name) {
+		component_stack.push(effect_name);
+	}
+
+	/** @type {import("#client").ComponentContext | null} */
+	let current_context = component_context;
+
+	while (current_context !== null) {
+		var filename = current_context.function?.filename;
+
+		if (filename) {
+			const file = filename.split('/').at(-1);
+			component_stack.push(file);
+		}
+
+		current_context = current_context.p;
+	}
+
+	const indent = /Firefox/.test(navigator.userAgent) ? '  ' : '\t';
+	error.message += `\n${component_stack.map((name) => `\n${indent}in ${name}`).join('')}\n`;
+
+	const stack = error.stack;
+
+	// Filter out internal files from callstack
+	if (stack) {
+		const lines = stack.split('\n');
+		const new_lines = [];
+		for (let i = 0; i < lines.length; i++) {
+			const line = lines[i];
+			if (line.includes('svelte/src/internal')) {
+				continue;
+			}
+			new_lines.push(line);
+		}
+		error.stack = new_lines.join('\n');
+	}
+
+	handled_errors.add(error);
+	throw error;
+}
+
 /**
  * @template V
  * @param {import('#client').Reaction} signal
@@ -260,7 +319,7 @@ export function execute_reaction_fn(signal) {
 	current_untracking = false;
 
 	try {
-		let res = signal.fn();
+		let res = (0, signal.fn)();
 		let dependencies = /** @type {import('#client').Value<unknown>[]} **/ (signal.deps);
 		if (current_dependencies !== null) {
 			let i;
@@ -431,6 +490,8 @@ export function execute_effect(effect) {
 		execute_effect_teardown(effect);
 		var teardown = execute_reaction_fn(effect);
 		effect.teardown = typeof teardown === 'function' ? teardown : null;
+	} catch (error) {
+		handle_error(/** @type {Error} */ (error), effect, current_component_context);
 	} finally {
 		current_effect = previous_effect;
 		current_component_context = previous_component_context;
diff --git a/packages/svelte/tests/runtime-legacy/samples/component-not-constructor2-dev/_config.js b/packages/svelte/tests/runtime-legacy/samples/component-not-constructor2-dev/_config.js
index dc220e4f3d..9152c96354 100644
--- a/packages/svelte/tests/runtime-legacy/samples/component-not-constructor2-dev/_config.js
+++ b/packages/svelte/tests/runtime-legacy/samples/component-not-constructor2-dev/_config.js
@@ -15,7 +15,7 @@ export default test({
 			component.componentName = 'banana';
 			throw new Error('Expected an error');
 		} catch (err) {
-			assert.equal(
+			assert.include(
 				/** @type {Error} */ (err).message,
 				'svelte_component_invalid_this_value\nThe `this={...}` property of a `<svelte:component>` must be a Svelte component, if defined'
 			);
diff --git a/packages/svelte/tests/runtime-legacy/samples/component-not-constructor2/_config.js b/packages/svelte/tests/runtime-legacy/samples/component-not-constructor2/_config.js
index f6eba49684..f730e431eb 100644
--- a/packages/svelte/tests/runtime-legacy/samples/component-not-constructor2/_config.js
+++ b/packages/svelte/tests/runtime-legacy/samples/component-not-constructor2/_config.js
@@ -12,7 +12,7 @@ export default test({
 			component.componentName = 'banana';
 			throw new Error('Expected an error');
 		} catch (err) {
-			assert.equal(/** @type {Error} */ (err).message, '$$component is not a function');
+			assert.include(/** @type {Error} */ (err).message, '$$component is not a function');
 		}
 	}
 });
diff --git a/packages/svelte/tests/runtime-legacy/shared.ts b/packages/svelte/tests/runtime-legacy/shared.ts
index 21012a8f5a..197e560414 100644
--- a/packages/svelte/tests/runtime-legacy/shared.ts
+++ b/packages/svelte/tests/runtime-legacy/shared.ts
@@ -392,9 +392,9 @@ async function run_test_variant(
 		}
 	} catch (err) {
 		if (config.runtime_error) {
-			assert.equal((err as Error).message, config.runtime_error);
+			assert.include((err as Error).message, config.runtime_error);
 		} else if (config.error && !unintended_error) {
-			assert.equal((err as Error).message, config.error);
+			assert.include((err as Error).message, config.error);
 		} else {
 			throw err;
 		}
diff --git a/packages/svelte/tests/snapshot/samples/bind-component-snippet/_expected/client/index.svelte.js b/packages/svelte/tests/snapshot/samples/bind-component-snippet/_expected/client/index.svelte.js
index 87f74847c9..2b7704e154 100644
--- a/packages/svelte/tests/snapshot/samples/bind-component-snippet/_expected/client/index.svelte.js
+++ b/packages/svelte/tests/snapshot/samples/bind-component-snippet/_expected/client/index.svelte.js
@@ -28,6 +28,6 @@ export default function Bind_component_snippet($$anchor) {
 
 	var text = $.sibling(node, true);
 
-	$.render_effect(() => $.set_text(text, ` value: ${$.stringify($.get(value))}`));
+	$.template_effect(() => $.set_text(text, ` value: ${$.stringify($.get(value))}`));
 	$.append($$anchor, fragment_1);
 }
\ No newline at end of file
diff --git a/packages/svelte/tests/snapshot/samples/dynamic-attributes-casing/_expected/client/main.svelte.js b/packages/svelte/tests/snapshot/samples/dynamic-attributes-casing/_expected/client/main.svelte.js
index 3cbaef59c8..aa4d22d99a 100644
--- a/packages/svelte/tests/snapshot/samples/dynamic-attributes-casing/_expected/client/main.svelte.js
+++ b/packages/svelte/tests/snapshot/samples/dynamic-attributes-casing/_expected/client/main.svelte.js
@@ -13,17 +13,17 @@ export default function Main($$anchor) {
 	var custom_element = $.sibling($.sibling(svg, true));
 	var div_1 = $.sibling($.sibling(custom_element, true));
 
-	$.render_effect(() => $.set_attribute(div_1, "foobar", y()));
+	$.template_effect(() => $.set_attribute(div_1, "foobar", y()));
 
 	var svg_1 = $.sibling($.sibling(div_1, true));
 
-	$.render_effect(() => $.set_attribute(svg_1, "viewBox", y()));
+	$.template_effect(() => $.set_attribute(svg_1, "viewBox", y()));
 
 	var custom_element_1 = $.sibling($.sibling(svg_1, true));
 
-	$.render_effect(() => $.set_custom_element_data(custom_element_1, "fooBar", y()));
+	$.template_effect(() => $.set_custom_element_data(custom_element_1, "fooBar", y()));
 
-	$.render_effect(() => {
+	$.template_effect(() => {
 		$.set_attribute(div, "foobar", x);
 		$.set_attribute(svg, "viewBox", x);
 		$.set_custom_element_data(custom_element, "fooBar", x);
diff --git a/packages/svelte/tests/snapshot/samples/each-string-template/_expected/client/index.svelte.js b/packages/svelte/tests/snapshot/samples/each-string-template/_expected/client/index.svelte.js
index 7524a55c78..2be257634c 100644
--- a/packages/svelte/tests/snapshot/samples/each-string-template/_expected/client/index.svelte.js
+++ b/packages/svelte/tests/snapshot/samples/each-string-template/_expected/client/index.svelte.js
@@ -8,7 +8,7 @@ export default function Each_string_template($$anchor) {
 	$.each(node, 1, () => ['foo', 'bar', 'baz'], $.index, ($$anchor, thing, $$index) => {
 		var text = $.text($$anchor);
 
-		$.render_effect(() => $.set_text(text, `${$.stringify($.unwrap(thing))}, `));
+		$.template_effect(() => $.set_text(text, `${$.stringify($.unwrap(thing))}, `));
 		$.append($$anchor, text);
 	});
 
diff --git a/packages/svelte/tests/snapshot/samples/function-prop-no-getter/_expected/client/index.svelte.js b/packages/svelte/tests/snapshot/samples/function-prop-no-getter/_expected/client/index.svelte.js
index bd889e91d8..a8de35aae1 100644
--- a/packages/svelte/tests/snapshot/samples/function-prop-no-getter/_expected/client/index.svelte.js
+++ b/packages/svelte/tests/snapshot/samples/function-prop-no-getter/_expected/client/index.svelte.js
@@ -19,7 +19,7 @@ export default function Function_prop_no_getter($$anchor) {
 		children: ($$anchor, $$slotProps) => {
 			var text = $.text($$anchor);
 
-			$.render_effect(() => $.set_text(text, `clicks: ${$.stringify($.get(count))}`));
+			$.template_effect(() => $.set_text(text, `clicks: ${$.stringify($.get(count))}`));
 			$.append($$anchor, text);
 		}
 	});
diff --git a/packages/svelte/tests/snapshot/samples/hmr/_expected/client/index.svelte.js b/packages/svelte/tests/snapshot/samples/hmr/_expected/client/index.svelte.js
index 46a18e0b2b..6cb6845c1c 100644
--- a/packages/svelte/tests/snapshot/samples/hmr/_expected/client/index.svelte.js
+++ b/packages/svelte/tests/snapshot/samples/hmr/_expected/client/index.svelte.js
@@ -11,14 +11,20 @@ function Hmr($$anchor) {
 
 if (import.meta.hot) {
 	const s = $.source(Hmr);
+	const filename = Hmr.filename;
 
 	Hmr = $.hmr(s);
+	Hmr.filename = filename;
 
-	if (import.meta.hot.acceptExports) import.meta.hot.acceptExports(["default"], (module) => {
-		$.set(s, module.default);
-	}); else import.meta.hot.accept((module) => {
-		$.set(s, module.default);
-	});
+	if (import.meta.hot.acceptExports) {
+		import.meta.hot.acceptExports(["default"], (module) => {
+			$.set(s, module.default);
+		});
+	} else {
+		import.meta.hot.accept((module) => {
+			$.set(s, module.default);
+		});
+	}
 }
 
-export default Hmr;
+export default Hmr;
\ No newline at end of file