diff --git a/packages/svelte/src/compiler/phases/3-transform/server/visitors/SvelteBoundary.js b/packages/svelte/src/compiler/phases/3-transform/server/visitors/SvelteBoundary.js
index 0d54feee11b3..84c368e0791a 100644
--- a/packages/svelte/src/compiler/phases/3-transform/server/visitors/SvelteBoundary.js
+++ b/packages/svelte/src/compiler/phases/3-transform/server/visitors/SvelteBoundary.js
@@ -1,17 +1,112 @@
-/** @import { BlockStatement } from 'estree' */
+/** @import { BlockStatement, Statement, Expression } from 'estree' */
 /** @import { AST } from '#compiler' */
 /** @import { ComponentContext } from '../types' */
-import { BLOCK_CLOSE, BLOCK_OPEN } from '../../../../../internal/server/hydration.js';
 import * as b from '../../../../utils/builders.js';
+import { extract_identifiers } from '../../../../utils/ast.js';
 
 /**
  * @param {AST.SvelteBoundary} node
  * @param {ComponentContext} context
  */
 export function SvelteBoundary(node, context) {
-	context.state.template.push(
-		b.literal(BLOCK_OPEN),
-		/** @type {BlockStatement} */ (context.visit(node.fragment)),
-		b.literal(BLOCK_CLOSE)
-	);
+	/** @type {Statement[]} */
+	const statements = [];
+
+	/** @type {AST.SnippetBlock | null} */
+	let snippet = null;
+
+	/** @type {AST.ConstTag[]} */
+	let const_tags = [];
+
+	const nodes = [];
+
+	const payload = b.id('$$payload'); // correct ?
+
+	/** @type {Expression | undefined} */
+	let failed;
+
+	// Capture the `failed` explicit snippet prop
+	for (const attribute of node.attributes) {
+		if (attribute.type === 'Attribute' && attribute.name === 'failed' && attribute.value !== true) {
+			const chunk = Array.isArray(attribute.value)
+				? /** @type {AST.ExpressionTag} */ (attribute.value[0])
+				: attribute.value;
+			failed = /** @type {Expression} */ (context.visit(chunk.expression, context.state));
+		}
+	}
+
+	// Capture the `failed` implicit snippet prop
+	for (const child of node.fragment.nodes) {
+		if (child.type === 'SnippetBlock' && child.expression.name === 'failed') {
+			snippet = child;
+
+			/** @type {Statement[]} */
+			const init = [];
+			context.visit(snippet, { ...context.state, init });
+
+			if (init.length === 1 && init[0].type === 'FunctionDeclaration') {
+				failed = b.arrow(init[0].params, init[0].body);
+			} else {
+				statements.push(...init);
+				failed = b.id('failed');
+			}
+		} else if (child.type === 'ConstTag') {
+			const_tags.push(child);
+		} else {
+			nodes.push(child);
+		}
+	}
+
+	let max_referenced_const_tag = -1;
+
+	if (snippet) {
+		const references = context.state.scopes.get(snippet)?.references;
+		if (references != null && references.size) {
+			const keys = new Set(references.keys());
+
+			const_tags.forEach((tag, index) => {
+				if (has_reference(keys, tag)) {
+					max_referenced_const_tag = index + 1;
+				}
+			});
+		}
+	}
+
+	if (max_referenced_const_tag < 0) {
+		nodes.unshift(...const_tags);
+	} else if (max_referenced_const_tag === const_tags.length) {
+		const_tags.forEach((tag) => context.visit(tag, { ...context.state, init: statements }));
+	} else {
+		const_tags
+			.slice(0, max_referenced_const_tag)
+			.forEach((tag) => context.visit(tag, { ...context.state, init: statements }));
+		nodes.unshift(...const_tags.slice(max_referenced_const_tag));
+	}
+
+	const body_block = /** @type {BlockStatement} */ (context.visit({ ...node.fragment, nodes }));
+
+	const body = b.arrow([b.id('$$payload')], body_block);
+
+	statements.push(b.stmt(b.call('$.boundary', payload, body, failed)));
+
+	if (statements.length === 1) {
+		context.state.template.push(statements[0]);
+	} else {
+		context.state.template.push(b.block([...statements]));
+	}
+}
+
+/**
+ * @param {Set<string>} keys
+ * @param {AST.ConstTag} tag
+ */
+function has_reference(keys, tag) {
+	for (const declaration of tag.declaration.declarations) {
+		for (const id of extract_identifiers(declaration.id)) {
+			if (keys.has(id.name)) {
+				return true;
+			}
+		}
+	}
+	return false;
 }
diff --git a/packages/svelte/src/internal/client/dom/blocks/boundary.js b/packages/svelte/src/internal/client/dom/blocks/boundary.js
index c1ca7a960034..cc4b9424def1 100644
--- a/packages/svelte/src/internal/client/dom/blocks/boundary.js
+++ b/packages/svelte/src/internal/client/dom/blocks/boundary.js
@@ -1,5 +1,6 @@
 /** @import { Effect, TemplateNode, } from '#client' */
 
+import { HYDRATION_START } from '../../../../constants.js';
 import { BOUNDARY_EFFECT, EFFECT_TRANSPARENT } from '../../constants.js';
 import { component_context, set_component_context } from '../../context.js';
 import { block, branch, destroy_effect, pause_effect } from '../../reactivity/effects.js';
@@ -17,7 +18,8 @@ import {
 	hydrating,
 	next,
 	remove_nodes,
-	set_hydrate_node
+	set_hydrate_node,
+	set_hydrating
 } from '../hydration.js';
 import { queue_micro_task } from '../task.js';
 
@@ -119,12 +121,27 @@ export function boundary(node, props, boundary_fn) {
 			}
 		};
 
+		let mismatch = false;
+
 		if (hydrating) {
+			const data = /** @type {Comment} */ (anchor).data;
 			hydrate_next();
+			if (data !== HYDRATION_START) {
+				anchor = remove_nodes();
+
+				set_hydrate_node(anchor);
+				set_hydrating(false);
+				mismatch = true;
+			}
 		}
 
 		boundary_effect = branch(() => boundary_fn(anchor));
 		reset_is_throwing_error();
+
+		if (mismatch) {
+			// continue in hydration mode
+			set_hydrating(true);
+		}
 	}, EFFECT_TRANSPARENT | BOUNDARY_EFFECT);
 
 	if (hydrating) {
diff --git a/packages/svelte/src/internal/server/index.js b/packages/svelte/src/internal/server/index.js
index 6098b496c5ac..eeb21af37c46 100644
--- a/packages/svelte/src/internal/server/index.js
+++ b/packages/svelte/src/internal/server/index.js
@@ -13,7 +13,7 @@ import {
 import { escape_html } from '../../escaping.js';
 import { DEV } from 'esm-env';
 import { current_component, pop, push } from './context.js';
-import { EMPTY_COMMENT, BLOCK_CLOSE, BLOCK_OPEN } from './hydration.js';
+import { EMPTY_COMMENT, BLOCK_CLOSE, BLOCK_OPEN, BLOCK_OPEN_ELSE } from './hydration.js';
 import { validate_store } from '../shared/validate.js';
 import { is_boolean_attribute, is_raw_text_element, is_void } from '../../utils.js';
 import { reset_elements } from './dev.js';
@@ -535,7 +535,28 @@ export function props_id(payload) {
 	return uid;
 }
 
-export { attr, clsx };
+/**
+ * <svelte:boundary> for server-side
+ * @param {Payload} payload
+ * @param {(payload:Payload) => void} body
+ * @param {(payload:Payload, err: any) => void} [failed]
+ * @returns {void}
+ */
+export function boundary(payload, body, failed) {
+	var inner_payload = copy_payload(payload);
+	try {
+		inner_payload.out += BLOCK_OPEN;
+		body(inner_payload);
+	} catch (err) {
+		inner_payload = copy_payload(payload);
+		inner_payload.out += BLOCK_OPEN_ELSE;
+		failed?.(inner_payload, err);
+	}
+	inner_payload.out += BLOCK_CLOSE;
+	assign_payload(payload, inner_payload);
+}
+
+export { attr, clsx, to_class };
 
 export { html } from './blocks/html.js';