diff --git a/.changeset/violet-poets-wait.md b/.changeset/violet-poets-wait.md
new file mode 100644
index 0000000000..8d86936fec
--- /dev/null
+++ b/.changeset/violet-poets-wait.md
@@ -0,0 +1,5 @@
+---
+'@tanstack/router-core': patch
+---
+
+Fix context value from a parent route's `beforeLoad` not being propagated to a sub-route while the sub-route's loader is reloading in the background
diff --git a/e2e/react-router/basic-file-based/src/routeTree.gen.ts b/e2e/react-router/basic-file-based/src/routeTree.gen.ts
index 7ee0051549..2a5d84fb94 100644
--- a/e2e/react-router/basic-file-based/src/routeTree.gen.ts
+++ b/e2e/react-router/basic-file-based/src/routeTree.gen.ts
@@ -25,12 +25,14 @@ import { Route as SearchParamsRouteRouteImport } from './routes/search-params/ro
 import { Route as PathlessLayoutRouteRouteImport } from './routes/pathless-layout/route'
 import { Route as NonNestedRouteRouteImport } from './routes/non-nested/route'
 import { Route as FullpathTestRouteRouteImport } from './routes/fullpath-test/route'
+import { Route as ContextPropagationRouteRouteImport } from './routes/context-propagation/route'
 import { Route as IndexRouteImport } from './routes/index'
 import { Route as SearchParamsIndexRouteImport } from './routes/search-params/index'
 import { Route as RelativeIndexRouteImport } from './routes/relative/index'
 import { Route as RedirectIndexRouteImport } from './routes/redirect/index'
 import { Route as PostsIndexRouteImport } from './routes/posts.index'
 import { Route as ParamsPsIndexRouteImport } from './routes/params-ps/index'
+import { Route as ContextPropagationIndexRouteImport } from './routes/context-propagation/index'
 import { Route as StructuralSharingEnabledRouteImport } from './routes/structural-sharing.$enabled'
 import { Route as SearchParamsDefaultRouteImport } from './routes/search-params/default'
 import { Route as RedirectTargetRouteImport } from './routes/redirect/$target'
@@ -210,6 +212,11 @@ const FullpathTestRouteRoute = FullpathTestRouteRouteImport.update({
   path: '/fullpath-test',
   getParentRoute: () => rootRouteImport,
 } as any)
+const ContextPropagationRouteRoute = ContextPropagationRouteRouteImport.update({
+  id: '/context-propagation',
+  path: '/context-propagation',
+  getParentRoute: () => rootRouteImport,
+} as any)
 const IndexRoute = IndexRouteImport.update({
   id: '/',
   path: '/',
@@ -240,6 +247,11 @@ const ParamsPsIndexRoute = ParamsPsIndexRouteImport.update({
   path: '/params-ps/',
   getParentRoute: () => rootRouteImport,
 } as any)
+const ContextPropagationIndexRoute = ContextPropagationIndexRouteImport.update({
+  id: '/',
+  path: '/',
+  getParentRoute: () => ContextPropagationRouteRoute,
+} as any)
 const StructuralSharingEnabledRoute =
   StructuralSharingEnabledRouteImport.update({
     id: '/structural-sharing/$enabled',
@@ -780,6 +792,7 @@ const NonNestedDeepBazBarFooQuxRoute =
 
 export interface FileRoutesByFullPath {
   '/': typeof IndexRoute
+  '/context-propagation': typeof ContextPropagationRouteRouteWithChildren
   '/fullpath-test': typeof FullpathTestRouteRouteWithChildren
   '/non-nested': typeof NonNestedRouteRouteWithChildren
   '/pathless-layout': typeof PathlessLayoutRouteRouteWithChildren
@@ -811,6 +824,7 @@ export interface FileRoutesByFullPath {
   '/redirect/$target': typeof RedirectTargetRouteWithChildren
   '/search-params/default': typeof SearchParamsDefaultRoute
   '/structural-sharing/$enabled': typeof StructuralSharingEnabledRoute
+  '/context-propagation/': typeof ContextPropagationIndexRoute
   '/params-ps/': typeof ParamsPsIndexRoute
   '/posts/': typeof PostsIndexRoute
   '/redirect/': typeof RedirectIndexRoute
@@ -925,6 +939,7 @@ export interface FileRoutesByTo {
   '/posts/$postId': typeof PostsPostIdRoute
   '/search-params/default': typeof SearchParamsDefaultRoute
   '/structural-sharing/$enabled': typeof StructuralSharingEnabledRoute
+  '/context-propagation': typeof ContextPropagationIndexRoute
   '/params-ps': typeof ParamsPsIndexRoute
   '/posts': typeof PostsIndexRoute
   '/redirect': typeof RedirectIndexRoute
@@ -1003,6 +1018,7 @@ export interface FileRoutesByTo {
 export interface FileRoutesById {
   __root__: typeof rootRouteImport
   '/': typeof IndexRoute
+  '/context-propagation': typeof ContextPropagationRouteRouteWithChildren
   '/fullpath-test': typeof FullpathTestRouteRouteWithChildren
   '/non-nested': typeof NonNestedRouteRouteWithChildren
   '/pathless-layout': typeof PathlessLayoutRouteRouteWithChildren
@@ -1039,6 +1055,7 @@ export interface FileRoutesById {
   '/redirect/$target': typeof RedirectTargetRouteWithChildren
   '/search-params/default': typeof SearchParamsDefaultRoute
   '/structural-sharing/$enabled': typeof StructuralSharingEnabledRoute
+  '/context-propagation/': typeof ContextPropagationIndexRoute
   '/params-ps/': typeof ParamsPsIndexRoute
   '/posts/': typeof PostsIndexRoute
   '/redirect/': typeof RedirectIndexRoute
@@ -1127,6 +1144,7 @@ export interface FileRouteTypes {
   fileRoutesByFullPath: FileRoutesByFullPath
   fullPaths:
     | '/'
+    | '/context-propagation'
     | '/fullpath-test'
     | '/non-nested'
     | '/pathless-layout'
@@ -1158,6 +1176,7 @@ export interface FileRouteTypes {
     | '/redirect/$target'
     | '/search-params/default'
     | '/structural-sharing/$enabled'
+    | '/context-propagation/'
     | '/params-ps/'
     | '/posts/'
     | '/redirect/'
@@ -1272,6 +1291,7 @@ export interface FileRouteTypes {
     | '/posts/$postId'
     | '/search-params/default'
     | '/structural-sharing/$enabled'
+    | '/context-propagation'
     | '/params-ps'
     | '/posts'
     | '/redirect'
@@ -1349,6 +1369,7 @@ export interface FileRouteTypes {
   id:
     | '__root__'
     | '/'
+    | '/context-propagation'
     | '/fullpath-test'
     | '/non-nested'
     | '/pathless-layout'
@@ -1385,6 +1406,7 @@ export interface FileRouteTypes {
     | '/redirect/$target'
     | '/search-params/default'
     | '/structural-sharing/$enabled'
+    | '/context-propagation/'
     | '/params-ps/'
     | '/posts/'
     | '/redirect/'
@@ -1472,6 +1494,7 @@ export interface FileRouteTypes {
 }
 export interface RootRouteChildren {
   IndexRoute: typeof IndexRoute
+  ContextPropagationRouteRoute: typeof ContextPropagationRouteRouteWithChildren
   FullpathTestRouteRoute: typeof FullpathTestRouteRouteWithChildren
   NonNestedRouteRoute: typeof NonNestedRouteRouteWithChildren
   PathlessLayoutRouteRoute: typeof PathlessLayoutRouteRouteWithChildren
@@ -1633,6 +1656,13 @@ declare module '@tanstack/react-router' {
       preLoaderRoute: typeof FullpathTestRouteRouteImport
       parentRoute: typeof rootRouteImport
     }
+    '/context-propagation': {
+      id: '/context-propagation'
+      path: '/context-propagation'
+      fullPath: '/context-propagation'
+      preLoaderRoute: typeof ContextPropagationRouteRouteImport
+      parentRoute: typeof rootRouteImport
+    }
     '/': {
       id: '/'
       path: '/'
@@ -1675,6 +1705,13 @@ declare module '@tanstack/react-router' {
       preLoaderRoute: typeof ParamsPsIndexRouteImport
       parentRoute: typeof rootRouteImport
     }
+    '/context-propagation/': {
+      id: '/context-propagation/'
+      path: '/'
+      fullPath: '/context-propagation/'
+      preLoaderRoute: typeof ContextPropagationIndexRouteImport
+      parentRoute: typeof ContextPropagationRouteRoute
+    }
     '/structural-sharing/$enabled': {
       id: '/structural-sharing/$enabled'
       path: '/structural-sharing/$enabled'
@@ -2364,6 +2401,20 @@ declare module '@tanstack/react-router' {
   }
 }
 
+interface ContextPropagationRouteRouteChildren {
+  ContextPropagationIndexRoute: typeof ContextPropagationIndexRoute
+}
+
+const ContextPropagationRouteRouteChildren: ContextPropagationRouteRouteChildren =
+  {
+    ContextPropagationIndexRoute: ContextPropagationIndexRoute,
+  }
+
+const ContextPropagationRouteRouteWithChildren =
+  ContextPropagationRouteRoute._addFileChildren(
+    ContextPropagationRouteRouteChildren,
+  )
+
 interface FullpathTestLayoutRouteRouteChildren {
   FullpathTestLayoutIdRoute: typeof FullpathTestLayoutIdRoute
   FullpathTestLayoutIndexRoute: typeof FullpathTestLayoutIndexRoute
@@ -2869,6 +2920,7 @@ const ParamsPsNamedFooRouteRouteWithChildren =
 
 const rootRouteChildren: RootRouteChildren = {
   IndexRoute: IndexRoute,
+  ContextPropagationRouteRoute: ContextPropagationRouteRouteWithChildren,
   FullpathTestRouteRoute: FullpathTestRouteRouteWithChildren,
   NonNestedRouteRoute: NonNestedRouteRouteWithChildren,
   PathlessLayoutRouteRoute: PathlessLayoutRouteRouteWithChildren,
diff --git a/e2e/react-router/basic-file-based/src/routes/context-propagation/index.tsx b/e2e/react-router/basic-file-based/src/routes/context-propagation/index.tsx
new file mode 100644
index 0000000000..a8b5e3a029
--- /dev/null
+++ b/e2e/react-router/basic-file-based/src/routes/context-propagation/index.tsx
@@ -0,0 +1,23 @@
+import { createFileRoute } from '@tanstack/react-router'
+
+// Records whether the component ever rendered without the context value from
+// the parent route's beforeLoad (https://github.com/TanStack/router/issues/7602)
+let sawUndefinedContext = false
+
+export const Route = createFileRoute('/context-propagation/')({
+  // ensure the loader runs again on back navigation despite defaultStaleTime
+  staleTime: 0,
+  loader: () => new Promise((resolve) => setTimeout(resolve, 100)),
+  component: RouteComponent,
+})
+
+function RouteComponent() {
+  const { number } = Route.useRouteContext()
+  sawUndefinedContext ||= number === undefined
+
+  return (
+    <p data-testid="context-propagation-result">
+      number = {String(number)}, saw undefined = {String(sawUndefinedContext)}
+    </p>
+  )
+}
diff --git a/e2e/react-router/basic-file-based/src/routes/context-propagation/route.tsx b/e2e/react-router/basic-file-based/src/routes/context-propagation/route.tsx
new file mode 100644
index 0000000000..cc04221d5b
--- /dev/null
+++ b/e2e/react-router/basic-file-based/src/routes/context-propagation/route.tsx
@@ -0,0 +1,5 @@
+import { createFileRoute } from '@tanstack/react-router'
+
+export const Route = createFileRoute('/context-propagation')({
+  beforeLoad: () => ({ number: 42 }),
+})
diff --git a/e2e/react-router/basic-file-based/tests/context-propagation.spec.ts b/e2e/react-router/basic-file-based/tests/context-propagation.spec.ts
new file mode 100644
index 0000000000..4729b497c3
--- /dev/null
+++ b/e2e/react-router/basic-file-based/tests/context-propagation.spec.ts
@@ -0,0 +1,22 @@
+import { expect, test } from '@playwright/test'
+
+// https://github.com/TanStack/router/issues/7602
+test('context value from beforeLoad is propagated to a sub-route while the loader of the sub-route is executing', async ({
+  page,
+}) => {
+  await page.goto('/context-propagation')
+  await expect(page.getByTestId('context-propagation-result')).toHaveText(
+    'number = 42, saw undefined = false',
+  )
+
+  await page.getByRole('link', { name: 'Home', exact: true }).click()
+  await expect(page.getByRole('heading')).toContainText('Welcome Home!')
+
+  await page.goBack()
+
+  // the component must never render with an undefined context value
+  // while the loader is executing
+  await expect(page.getByTestId('context-propagation-result')).toHaveText(
+    'number = 42, saw undefined = false',
+  )
+})
diff --git a/packages/router-core/src/load-matches.ts b/packages/router-core/src/load-matches.ts
index f901a0c97d..20d31afd1d 100644
--- a/packages/router-core/src/load-matches.ts
+++ b/packages/router-core/src/load-matches.ts
@@ -832,6 +832,7 @@ const loadRouteMatch = async (
       shouldReloadInBackground
     ) {
       loaderIsRunningAsync = true
+      syncMatchContext(inner, matchId, index)
       ;(async () => {
         try {
           await runLoader(inner, matchPromises, matchId, index, route)