diff --git a/.changeset/shiny-walls-battle.md b/.changeset/shiny-walls-battle.md
new file mode 100644
index 00000000000..97e4ebd18cd
--- /dev/null
+++ b/.changeset/shiny-walls-battle.md
@@ -0,0 +1,5 @@
+---
+'@tanstack/svelte-query': patch
+---
+
+fix(svelte-query): fix reactive observer subscription lifecycle during restoration
diff --git a/packages/svelte-query/src/createBaseQuery.svelte.ts b/packages/svelte-query/src/createBaseQuery.svelte.ts
index 03fc6b28db4..a6a456d74e4 100644
--- a/packages/svelte-query/src/createBaseQuery.svelte.ts
+++ b/packages/svelte-query/src/createBaseQuery.svelte.ts
@@ -1,3 +1,4 @@
+import { untrack } from 'svelte'
 import { useIsRestoring } from './useIsRestoring.js'
 import { useQueryClient } from './useQueryClient.js'
 import { createRawRef } from './containers.svelte.js'
@@ -46,6 +47,7 @@ export function createBaseQuery<
       resolvedOptions,
     ),
   )
+
   watchChanges(
     () => client,
     'pre',
@@ -66,19 +68,17 @@ export function createBaseQuery<
       ? observer.trackResult(result)
       : result
   }
+
   const [query, update] = createRawRef(
     // svelte-ignore state_referenced_locally - intentional, initial value
     createResult(),
   )
 
-  $effect(() => {
-    const unsubscribe = isRestoring.current
-      ? () => undefined
-      : observer.subscribe(() => update(createResult()))
-    observer.updateResult()
-    return unsubscribe
-  })
+  const refreshResult = () => {
+    untrack(() => update(createResult()))
+  }
 
+  // Keep observer options updated before DOM flush
   watchChanges(
     () => resolvedOptions,
     'pre',
@@ -86,22 +86,23 @@ export function createBaseQuery<
       observer.setOptions(resolvedOptions)
     },
   )
-  watchChanges(
-    () => [resolvedOptions, observer],
-    'pre',
-    () => {
-      // The only reason this is necessary is because of `isRestoring`.
-      // Because we don't subscribe while restoring, the following can occur:
-      // - `isRestoring` is true
-      // - `isRestoring` becomes false
-      // - `observer.subscribe` and `observer.updateResult` is called in the above effect,
-      //   but the subsequent `fetch` has already completed
-      // - `result` misses the intermediate restored-but-not-fetched state
-      //
-      // this could technically be its own effect but that doesn't seem necessary
-      update(createResult())
-    },
-  )
+
+  // Manage subscription lifecycle reactively to prevent restoration race conditions
+  $effect(() => {
+    if (isRestoring.current) {
+      return
+    }
+
+    const unsubscribe = observer.subscribe(refreshResult)
+
+    // Surface any state that settled between render and subscription commit without tracking resolvedOptions
+    refreshResult()
+    observer.updateResult()
+
+    return () => {
+      unsubscribe()
+    }
+  })
 
   return query
-}
+}
\ No newline at end of file
diff --git a/packages/svelte-query/tests/createQuery/IsRestoringDynamic.svelte b/packages/svelte-query/tests/createQuery/IsRestoringDynamic.svelte
new file mode 100644
index 00000000000..866e409e002
--- /dev/null
+++ b/packages/svelte-query/tests/createQuery/IsRestoringDynamic.svelte
@@ -0,0 +1,31 @@
+<script lang="ts">
+  import type { QueryClient } from '@tanstack/query-core'
+  import {
+    setIsRestoringContext,
+    setQueryClientContext,
+  } from '../../src/context.js'
+  import { createQuery } from '../../src/index.js'
+
+  type Props = {
+    queryClient: QueryClient
+    queryFn: () => Promise<string>
+    queryKey: Array<string>
+    isRestoringRef: { current: boolean }
+  }
+
+  let { queryClient, queryFn, queryKey, isRestoringRef }: Props = $props()
+
+  setQueryClientContext(queryClient)
+  setIsRestoringContext(isRestoringRef)
+
+  const query = createQuery(() => ({
+    queryKey,
+    queryFn,
+  }))
+</script>
+
+<div>
+  <div data-testid="status">{query.status}</div>
+  <div data-testid="fetchStatus">{query.fetchStatus}</div>
+  <div data-testid="data">{query.data ?? 'undefined'}</div>
+</div>
\ No newline at end of file
diff --git a/packages/svelte-query/tests/createQuery/createQuery.svelte.test.ts b/packages/svelte-query/tests/createQuery/createQuery.svelte.test.ts
index 3864b369076..f939e4dac74 100644
--- a/packages/svelte-query/tests/createQuery/createQuery.svelte.test.ts
+++ b/packages/svelte-query/tests/createQuery/createQuery.svelte.test.ts
@@ -11,6 +11,7 @@ import {
 import { promiseWithResolvers, withEffectRoot } from '../utils.svelte.js'
 import Base from './Base.svelte'
 import Counter from './Counter.svelte'
+import IsRestoringDynamic from './IsRestoringDynamic.svelte'
 import IsRestoring from './IsRestoring.svelte'
 import Select from './Select.svelte'
 import TwoQueries from './TwoQueries.svelte'
@@ -1650,4 +1651,44 @@ describe('createQuery', () => {
     expect(rendered.getByTestId('data')).toHaveTextContent('undefined')
     expect(queryFn).toHaveBeenCalledTimes(0)
   })
+
+  it('should subscribe and fetch when isRestoring transitions to false', async () => {
+  const key = queryKey()
+  const queryFn = vi.fn().mockImplementation(async () => {
+    await sleep(10)
+    return 'restored-data'
+  })
+
+  const isRestoringRef = $state({ current: true })
+
+  const rendered = render(IsRestoringDynamic, {
+    props: {
+      queryClient,
+      queryFn,
+      queryKey: key,
+      isRestoringRef,
+    },
+  })
+
+  await vi.advanceTimersByTimeAsync(0)
+
+  // While restoring, observer should not fetch
+  expect(rendered.getByTestId('status')).toHaveTextContent('pending')
+  expect(rendered.getByTestId('fetchStatus')).toHaveTextContent('idle')
+  expect(queryFn).toHaveBeenCalledTimes(0)
+
+  // Complete restoration
+  isRestoringRef.current = false
+
+  // Wait for the effect to attach the subscription and start fetching
+  await vi.advanceTimersByTimeAsync(0)
+  expect(rendered.getByTestId('fetchStatus')).toHaveTextContent('fetching')
+  expect(queryFn).toHaveBeenCalledTimes(1)
+
+  // Let the fetch resolve
+  await vi.advanceTimersByTimeAsync(10)
+  expect(rendered.getByTestId('status')).toHaveTextContent('success')
+  expect(rendered.getByTestId('fetchStatus')).toHaveTextContent('idle')
+  expect(rendered.getByTestId('data')).toHaveTextContent('restored-data')
+})
 })