diff --git a/packages/nextjs/src/utils/handlers.ts b/packages/nextjs/src/utils/handlers.ts
index 9b86e7bdd5e4..af0114258fad 100644
--- a/packages/nextjs/src/utils/handlers.ts
+++ b/packages/nextjs/src/utils/handlers.ts
@@ -1,6 +1,7 @@
 import { captureException, flush, getCurrentHub, Handlers, startTransaction, withScope } from '@sentry/node';
 import { extractTraceparentData, getActiveTransaction, hasTracingEnabled } from '@sentry/tracing';
 import { addExceptionMechanism, isString, logger, stripUrlQueryAndFragment } from '@sentry/utils';
+import * as domain from 'domain';
 import { NextApiHandler } from 'next';
 
 import { addRequestDataToEvent, NextRequest } from './instrumentServer';
@@ -14,70 +15,82 @@ type WrappedNextApiHandler = NextApiHandler;
 export const withSentry = (handler: NextApiHandler): WrappedNextApiHandler => {
   // eslint-disable-next-line @typescript-eslint/explicit-module-boundary-types
   return async (req, res) => {
-    try {
-      const currentScope = getCurrentHub().getScope();
+    // wrap everything in a domain in order to prevent scope bleed between requests
+    const local = domain.create();
+    local.add(req);
+    local.add(res);
 
-      if (currentScope) {
-        currentScope.addEventProcessor(event => addRequestDataToEvent(event, req as NextRequest));
+    // `local.bind` causes everything to run inside a domain, just like `local.run` does, but it also lets the callback
+    // return a value. In our case, all any of the codepaths return is a promise of `void`, but nextjs still counts on
+    // getting that before it will finish the response.
+    const boundHandler = local.bind(async () => {
+      try {
+        const currentScope = getCurrentHub().getScope();
 
-        if (hasTracingEnabled()) {
-          // If there is a trace header set, extract the data from it (parentSpanId, traceId, and sampling decision)
-          let traceparentData;
-          if (req.headers && isString(req.headers['sentry-trace'])) {
-            traceparentData = extractTraceparentData(req.headers['sentry-trace'] as string);
-            logger.log(`[Tracing] Continuing trace ${traceparentData?.traceId}.`);
-          }
+        if (currentScope) {
+          currentScope.addEventProcessor(event => addRequestDataToEvent(event, req as NextRequest));
 
-          const url = `${req.url}`;
-          // pull off query string, if any
-          let reqPath = stripUrlQueryAndFragment(url);
-          // Replace with placeholder
-          if (req.query) {
-            // TODO get this from next if possible, to avoid accidentally replacing non-dynamic parts of the path if
-            // they match dynamic parts
-            for (const [key, value] of Object.entries(req.query)) {
-              reqPath = reqPath.replace(`${value}`, `[${key}]`);
+          if (hasTracingEnabled()) {
+            // If there is a trace header set, extract the data from it (parentSpanId, traceId, and sampling decision)
+            let traceparentData;
+            if (req.headers && isString(req.headers['sentry-trace'])) {
+              traceparentData = extractTraceparentData(req.headers['sentry-trace'] as string);
+              logger.log(`[Tracing] Continuing trace ${traceparentData?.traceId}.`);
             }
-          }
-          const reqMethod = `${(req.method || 'GET').toUpperCase()} `;
 
-          const transaction = startTransaction(
-            {
-              name: `${reqMethod}${reqPath}`,
-              op: 'http.server',
-              ...traceparentData,
-            },
-            // extra context passed to the `tracesSampler`
-            { request: req },
-          );
-          currentScope.setSpan(transaction);
+            const url = `${req.url}`;
+            // pull off query string, if any
+            let reqPath = stripUrlQueryAndFragment(url);
+            // Replace with placeholder
+            if (req.query) {
+              // TODO get this from next if possible, to avoid accidentally replacing non-dynamic parts of the path if
+              // they match dynamic parts
+              for (const [key, value] of Object.entries(req.query)) {
+                reqPath = reqPath.replace(`${value}`, `[${key}]`);
+              }
+            }
+            const reqMethod = `${(req.method || 'GET').toUpperCase()} `;
+
+            const transaction = startTransaction(
+              {
+                name: `${reqMethod}${reqPath}`,
+                op: 'http.server',
+                ...traceparentData,
+              },
+              // extra context passed to the `tracesSampler`
+              { request: req },
+            );
+            currentScope.setSpan(transaction);
+          }
         }
-      }
 
-      return await handler(req, res); // Call original handler
-    } catch (e) {
-      withScope(scope => {
-        scope.addEventProcessor(event => {
-          addExceptionMechanism(event, {
-            handled: false,
+        return await handler(req, res); // Call original handler
+      } catch (e) {
+        withScope(scope => {
+          scope.addEventProcessor(event => {
+            addExceptionMechanism(event, {
+              handled: false,
+            });
+            return parseRequest(event, req);
           });
-          return parseRequest(event, req);
+          captureException(e);
         });
-        captureException(e);
-      });
-      throw e;
-    } finally {
-      const transaction = getActiveTransaction();
-      if (transaction) {
-        transaction.setHttpStatus(res.statusCode);
+        throw e;
+      } finally {
+        const transaction = getActiveTransaction();
+        if (transaction) {
+          transaction.setHttpStatus(res.statusCode);
 
-        transaction.finish();
-      }
-      try {
-        await flush(2000);
-      } catch (e) {
-        // no-empty
+          transaction.finish();
+        }
+        try {
+          await flush(2000);
+        } catch (e) {
+          // no-empty
+        }
       }
-    }
+    });
+
+    return await boundHandler();
   };
 };