diff --git a/compat/test/browser/suspense-hydration.test.jsx b/compat/test/browser/suspense-hydration.test.jsx
index 6a02112bf0..d4bc77b391 100644
--- a/compat/test/browser/suspense-hydration.test.jsx
+++ b/compat/test/browser/suspense-hydration.test.jsx
@@ -1018,6 +1018,120 @@ describe('suspense hydration', () => {
 		});
 	});
 
+	it('should properly hydrate suspense when resolves to a Fragment with $s:id markers', () => {
+		const originalHtml = ul([
+			li(0),
+			li(1),
+			'<!--$s:0-->',
+			li(2),
+			li(3),
+			'<!--/$s:0-->',
+			li(4),
+			li(5)
+		]);
+
+		const listeners = [vi.fn(), vi.fn(), vi.fn(), vi.fn(), vi.fn(), vi.fn()];
+
+		scratch.innerHTML = originalHtml;
+		clearLog();
+
+		const [Lazy, resolve] = createLazy();
+		hydrate(
+			<List>
+				<Fragment>
+					<ListItem onClick={listeners[0]}>0</ListItem>
+					<ListItem onClick={listeners[1]}>1</ListItem>
+				</Fragment>
+				<Suspense>
+					<Lazy />
+				</Suspense>
+				<Fragment>
+					<ListItem onClick={listeners[4]}>4</ListItem>
+					<ListItem onClick={listeners[5]}>5</ListItem>
+				</Fragment>
+			</List>,
+			scratch
+		);
+		rerender(); // Flush rerender queue to mimic what preact will really do
+		expect(getLog()).to.deep.equal([]);
+		expect(scratch.innerHTML).to.equal(originalHtml);
+		expect(listeners[5]).not.toHaveBeenCalled();
+
+		clearLog();
+		scratch.querySelector('li:last-child').dispatchEvent(createEvent('click'));
+		expect(listeners[5]).toHaveBeenCalledOnce();
+
+		return resolve(() => (
+			<Fragment>
+				<ListItem onClick={listeners[2]}>2</ListItem>
+				<ListItem onClick={listeners[3]}>3</ListItem>
+			</Fragment>
+		)).then(() => {
+			rerender();
+			expect(scratch.innerHTML).to.equal(originalHtml);
+			expect(getLog()).to.deep.equal([]);
+			clearLog();
+
+			scratch
+				.querySelector('li:nth-child(4)')
+				.dispatchEvent(createEvent('click'));
+			expect(listeners[3]).toHaveBeenCalledOnce();
+
+			scratch
+				.querySelector('li:last-child')
+				.dispatchEvent(createEvent('click'));
+			expect(listeners[5]).toHaveBeenCalledTimes(2);
+		});
+	});
+
+	it('should use updated DOM when stream patcher replaces content before suspend resolves', () => {
+		scratch.innerHTML =
+			'<!--$s:0--><span>Loading</span><!--/$s:0--><div>after</div>';
+		clearLog();
+
+		const [Lazy, resolve] = createLazy();
+		hydrate(
+			<>
+				<Suspense>
+					<Lazy />
+				</Suspense>
+				<div>after</div>
+			</>,
+			scratch
+		);
+		rerender();
+		expect(scratch.innerHTML).to.equal(
+			'<!--$s:0--><span>Loading</span><!--/$s:0--><div>after</div>'
+		);
+		expect(getLog()).to.deep.equal([]);
+		clearLog();
+
+		// Simulate stream patcher: replace fallback content while anchor comments
+		// remain. The deferred restoration should use the current DOM, not stale
+		// references to the removed <span>.
+		const endMarker = scratch.childNodes[2]; // <!--/$s:0-->
+		scratch.removeChild(scratch.childNodes[1]); // remove <span>Loading</span>
+		const resolved = document.createElement('div');
+		resolved.textContent = 'Resolved';
+		scratch.insertBefore(resolved, endMarker);
+
+		expect(scratch.innerHTML).to.equal(
+			'<!--$s:0--><div>Resolved</div><!--/$s:0--><div>after</div>'
+		);
+		// Clear the stream patcher's own DOM ops before asserting on rerender
+		clearLog();
+
+		return resolve(() => <div>Resolved</div>).then(() => {
+			rerender();
+			// Should match the stream-patched <div>Resolved</div>, no extra DOM ops
+			expect(scratch.innerHTML).to.equal(
+				'<!--$s:0--><div>Resolved</div><!--/$s:0--><div>after</div>'
+			);
+			expect(getLog()).to.deep.equal([]);
+			clearLog();
+		});
+	});
+
 	it('Should not crash when oldVNode._children is null during shouldComponentUpdate optimization', () => {
 		const originalHtml = '<div>Hello</div>';
 		scratch.innerHTML = originalHtml;
diff --git a/src/diff/index.js b/src/diff/index.js
index 46c5d8baca..d5275697d3 100644
--- a/src/diff/index.js
+++ b/src/diff/index.js
@@ -83,7 +83,24 @@ export function diff(
 		(isHydrating = oldVNode._flags & MODE_HYDRATE) &&
 		oldVNode._component._excess
 	) {
-		excessDomChildren = oldVNode._component._excess;
+		let excess = oldVNode._component._excess;
+		excessDomChildren = [];
+		if (excess.nodeType == 8) {
+			// Re-scan DOM from stored start marker for streamed hydration
+			for (
+				let depth = 1, node = excess.nextSibling;
+				node && depth > 0;
+				node = node.nextSibling
+			) {
+				if (node.nodeType == 8) {
+					if (node.data.startsWith('$s')) depth++;
+					else if (node.data.startsWith('/$s') && !--depth) break;
+				}
+				excessDomChildren.push(node);
+			}
+		} else {
+			excessDomChildren.push(excess);
+		}
 		oldDom = excessDomChildren[0];
 		oldVNode._component._excess = NULL;
 	}
@@ -311,52 +328,43 @@ export function diff(
 			if (isHydrating || excessDomChildren != NULL) {
 				if (e.then) {
 					let commentMarkersToFind = 0,
-						done;
+						startMarker;
 
 					newVNode._flags |= isHydrating
 						? MODE_HYDRATE | MODE_SUSPENDED
 						: MODE_SUSPENDED;
 
-					newVNode._component._excess = [];
 					for (let i = 0; i < excessDomChildren.length; i++) {
 						let child = excessDomChildren[i];
-						if (child == NULL || done) continue;
-
-						// When we encounter a boundary with $s we are opening
-						// a boundary, this implies that we need to bump
-						// the amount of markers we need to find before closing
-						// the outer boundary.
-						// We exclude the open and closing marker from
-						// the future excessDomChildren but any nested one
-						// needs to be included for future suspensions.
+						if (child == NULL) continue;
+
 						if (child.nodeType == 8) {
-							if (child.data == '$s') {
-								if (commentMarkersToFind) {
-									newVNode._component._excess.push(child);
-								}
+							if (child.data.startsWith('$s')) {
+								if (!commentMarkersToFind) startMarker = child;
 								commentMarkersToFind++;
-							} else if (child.data == '/$s') {
-								commentMarkersToFind--;
-								if (commentMarkersToFind) {
-									newVNode._component._excess.push(child);
+							} else if (child.data.startsWith('/$s')) {
+								if (--commentMarkersToFind == 0) {
+									oldDom = child;
+									excessDomChildren[i] = NULL;
+									break;
 								}
-								done = commentMarkersToFind == 0;
-								oldDom = excessDomChildren[i];
 							}
 							excessDomChildren[i] = NULL;
 						} else if (commentMarkersToFind) {
-							newVNode._component._excess.push(child);
 							excessDomChildren[i] = NULL;
 						}
 					}
 
-					if (!done) {
+					if (startMarker) {
+						// Store start marker directly; children re-scanned on resume
+						newVNode._component._excess = startMarker;
+					} else {
 						while (oldDom && oldDom.nodeType == 8 && oldDom.nextSibling) {
 							oldDom = oldDom.nextSibling;
 						}
 
 						excessDomChildren[excessDomChildren.indexOf(oldDom)] = NULL;
-						newVNode._component._excess = [oldDom];
+						newVNode._component._excess = oldDom;
 					}
 
 					newVNode._dom = oldDom;
diff --git a/src/internal.d.ts b/src/internal.d.ts
index 06021f43b8..fb206bbd23 100644
--- a/src/internal.d.ts
+++ b/src/internal.d.ts
@@ -163,7 +163,7 @@ export interface Component<P = {}, S = {}>
 	constructor: ComponentType<P>;
 	state: S; // Override Component["state"] to not be readonly for internal use, specifically Hooks
 
-	_excess?: PreactElement[];
+	_excess?: PreactElement;
 	_renderCallbacks: Array<() => void>; // Only class components
 	_stateCallbacks: Array<() => void>; // Only class components
 	_globalContext?: any;