diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/event-proxy-server.ts b/dev-packages/e2e-tests/test-applications/sveltekit/event-proxy-server.ts
index 66a9e744846e..1bc419bd0b4c 100644
--- a/dev-packages/e2e-tests/test-applications/sveltekit/event-proxy-server.ts
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/event-proxy-server.ts
@@ -6,7 +6,7 @@ import * as os from 'os';
 import * as path from 'path';
 import * as util from 'util';
 import * as zlib from 'zlib';
-import type { Envelope, EnvelopeItem, Event } from '@sentry/types';
+import type { Envelope, EnvelopeItem, Event, SerializedEvent } from '@sentry/types';
 import { parseEnvelope } from '@sentry/utils';
 
 const readFile = util.promisify(fs.readFile);
@@ -226,13 +226,13 @@ export function waitForError(
 
 export function waitForTransaction(
   proxyServerName: string,
-  callback: (transactionEvent: Event) => Promise<boolean> | boolean,
-): Promise<Event> {
+  callback: (transactionEvent: SerializedEvent) => Promise<boolean> | boolean,
+): Promise<SerializedEvent> {
   return new Promise((resolve, reject) => {
     waitForEnvelopeItem(proxyServerName, async envelopeItem => {
       const [envelopeItemHeader, envelopeItemBody] = envelopeItem;
-      if (envelopeItemHeader.type === 'transaction' && (await callback(envelopeItemBody as Event))) {
-        resolve(envelopeItemBody as Event);
+      if (envelopeItemHeader.type === 'transaction' && (await callback(envelopeItemBody as SerializedEvent))) {
+        resolve(envelopeItemBody as SerializedEvent);
         return true;
       }
       return false;
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/package.json b/dev-packages/e2e-tests/test-applications/sveltekit/package.json
index ad6bf6456843..ea21787939c3 100644
--- a/dev-packages/e2e-tests/test-applications/sveltekit/package.json
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/package.json
@@ -10,20 +10,19 @@
     "check": "svelte-kit sync && svelte-check --tsconfig ./tsconfig.json",
     "check:watch": "svelte-kit sync && svelte-check --tsconfig ./tsconfig.json --watch",
     "test:prod": "TEST_ENV=production playwright test",
-    "test:dev": "TEST_ENV=development playwright test",
-    "test:build": "pnpm install && pnpm build",
-    "test:assert": "pnpm -v"
+    "test:build": "pnpm install && npx playwright install && pnpm build",
+    "test:assert": "pnpm test:prod"
   },
   "dependencies": {
     "@sentry/sveltekit": "latest || *"
   },
   "devDependencies": {
-    "@playwright/test": "^1.27.1",
+    "@playwright/test": "^1.41.1",
     "@sentry/types": "latest || *",
     "@sentry/utils": "latest || *",
     "@sveltejs/adapter-auto": "^2.0.0",
     "@sveltejs/adapter-node": "^1.2.4",
-    "@sveltejs/kit": "^1.5.0",
+    "@sveltejs/kit": "^1.30.3",
     "svelte": "^3.54.0",
     "svelte-check": "^3.0.1",
     "ts-node": "10.9.1",
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/playwright.config.ts b/dev-packages/e2e-tests/test-applications/sveltekit/playwright.config.ts
index bfa29df7d549..779757c8807f 100644
--- a/dev-packages/e2e-tests/test-applications/sveltekit/playwright.config.ts
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/playwright.config.ts
@@ -8,6 +8,7 @@ if (!testEnv) {
 }
 
 const port = 3030;
+const eventProxyPort = 3031;
 
 /**
  * See https://playwright.dev/docs/test-configuration.
@@ -23,8 +24,9 @@ const config: PlaywrightTestConfig = {
      */
     timeout: 10000,
   },
+  workers: 1,
   /* Run tests in files in parallel */
-  fullyParallel: true,
+  fullyParallel: false,
   /* Fail the build on CI if you accidentally left test.only in the source code. */
   forbidOnly: !!process.env.CI,
   /* `next dev` is incredibly buggy with the app dir */
@@ -61,8 +63,8 @@ const config: PlaywrightTestConfig = {
     {
       command:
         testEnv === 'development'
-          ? `pnpm wait-port ${port} && pnpm dev --port ${port}`
-          : `pnpm wait-port ${port} && pnpm preview --port ${port}`,
+          ? `pnpm wait-port ${eventProxyPort} && pnpm dev --port ${port}`
+          : `pnpm wait-port ${eventProxyPort} && pnpm preview --port ${port}`,
       port,
     },
   ],
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/src/app.html b/dev-packages/e2e-tests/test-applications/sveltekit/src/app.html
index 117bd026151a..435cf39f2268 100644
--- a/dev-packages/e2e-tests/test-applications/sveltekit/src/app.html
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/src/app.html
@@ -6,7 +6,7 @@
     <meta name="viewport" content="width=device-width" />
     %sveltekit.head%
   </head>
-  <body data-sveltekit-preload-data="hover">
+  <body data-sveltekit-preload-data="off">
     <div style="display: contents">%sveltekit.body%</div>
   </body>
 </html>
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/src/hooks.server.ts b/dev-packages/e2e-tests/test-applications/sveltekit/src/hooks.server.ts
index 2d9cb9b02328..375b8d2c170a 100644
--- a/dev-packages/e2e-tests/test-applications/sveltekit/src/hooks.server.ts
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/src/hooks.server.ts
@@ -9,9 +9,8 @@ Sentry.init({
   tracesSampleRate: 1.0,
 });
 
-const myErrorHandler = ({ error, event }: any) => {
-  console.error('An error occurred on the server side:', error, event);
-};
+// not logging anything to console to avoid noise in the test output
+const myErrorHandler = ({ error, event }: any) => {};
 
 export const handleError = Sentry.handleErrorWithSentry(myErrorHandler);
 
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/+layout.svelte b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/+layout.svelte
new file mode 100644
index 000000000000..8b7db6f720bf
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/+layout.svelte
@@ -0,0 +1,10 @@
+<script lang="typescript">
+  import { onMount } from 'svelte';
+
+  onMount(() => {
+    // Indicate that the SvelteKit app was hydrated
+    document.body.classList.add('hydrated');
+  });
+</script>
+
+<slot />
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/+page.svelte b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/+page.svelte
index 5982b0ae37dd..aeb12d58603f 100644
--- a/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/+page.svelte
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/+page.svelte
@@ -1,2 +1,26 @@
 <h1>Welcome to SvelteKit</h1>
 <p>Visit <a href="https://kit.svelte.dev">kit.svelte.dev</a> to read the documentation</p>
+
+<ul>
+  <li>
+    <a href="/client-error">Client error</a>
+  </li>
+  <li>
+    <a href="/universal-load-error">Universal Load error</a>
+  </li>
+  <li>
+    <a href="/server-load-error">Server Load error</a>
+  </li>
+  <li>
+    <a href="/server-route-error">Server Route error</a>
+  </li>
+  <li>
+    <a href="/users/123abc">Route with Params</a>
+  </li>
+  <li>
+    <a href="/users">Route with Server Load</a>
+  </li>
+  <li>
+    <a href="/universal-load-fetch">Route with fetch in universal load</a>
+  </li>
+</ul>
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/api/users/+server.ts b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/api/users/+server.ts
new file mode 100644
index 000000000000..d0e4371c594b
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/api/users/+server.ts
@@ -0,0 +1,3 @@
+export const GET = () => {
+  return new Response(JSON.stringify({ users: ['alice', 'bob', 'carol'] }));
+};
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/client-error/+page.svelte b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/client-error/+page.svelte
new file mode 100644
index 000000000000..ba6b464e9324
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/client-error/+page.svelte
@@ -0,0 +1,9 @@
+<script lang="ts">
+  function throwError() {
+    throw new Error('Click Error');
+  }
+</script>
+
+<h1>Client error</h1>
+
+<button on:click={throwError}>Throw error</button>
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/server-load-error/+page.server.ts b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/server-load-error/+page.server.ts
new file mode 100644
index 000000000000..17dd53fb5bbb
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/server-load-error/+page.server.ts
@@ -0,0 +1,6 @@
+export const load = async () => {
+  throw new Error('Server Load Error');
+  return {
+    msg: 'Hello World',
+  };
+};
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/server-load-error/+page.svelte b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/server-load-error/+page.svelte
new file mode 100644
index 000000000000..3a0942971d06
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/server-load-error/+page.svelte
@@ -0,0 +1,9 @@
+<script lang="ts">
+  export let data
+</script>
+
+<h1>Server load error</h1>
+
+<p>
+  Message: {data.msg}
+</p>
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/server-route-error/+page.svelte b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/server-route-error/+page.svelte
new file mode 100644
index 000000000000..3d682e7e3462
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/server-route-error/+page.svelte
@@ -0,0 +1,9 @@
+<script lang="ts">
+  export let data;
+</script>
+
+<h1>Server Route error</h1>
+
+<p>
+  Message: {data.msg}
+</p>
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/server-route-error/+page.ts b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/server-route-error/+page.ts
new file mode 100644
index 000000000000..298240827714
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/server-route-error/+page.ts
@@ -0,0 +1,7 @@
+export const load = async ({ fetch }) => {
+  const res = await fetch('/server-route-error');
+  const data = await res.json();
+  return {
+    msg: data,
+  };
+};
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/server-route-error/+server.ts b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/server-route-error/+server.ts
new file mode 100644
index 000000000000..f1a4b94b7706
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/server-route-error/+server.ts
@@ -0,0 +1,6 @@
+export const GET = async () => {
+  throw new Error('Server Route Error');
+  return {
+    msg: 'Hello World',
+  };
+};
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/universal-load-error/+page.svelte b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/universal-load-error/+page.svelte
new file mode 100644
index 000000000000..dc2d311a0ece
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/universal-load-error/+page.svelte
@@ -0,0 +1,17 @@
+<script lang="ts">
+  export let data
+</script>
+
+<h1>Universal load error</h1>
+
+<p>
+  To trigger from client: Load on another route, then navigate to this route.
+</p>
+
+<p>
+  To trigger from server: Load on this route
+</p>
+
+<p>
+  Message: {data.msg}
+</p>
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/universal-load-error/+page.ts b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/universal-load-error/+page.ts
new file mode 100644
index 000000000000..3d72bf4a890f
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/universal-load-error/+page.ts
@@ -0,0 +1,8 @@
+import { browser } from '$app/environment';
+
+export const load = async () => {
+  throw new Error(`Universal Load Error (${browser ? 'browser' : 'server'})`);
+  return {
+    msg: 'Hello World',
+  };
+};
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/universal-load-fetch/+page.svelte b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/universal-load-fetch/+page.svelte
new file mode 100644
index 000000000000..563c51e8c850
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/universal-load-fetch/+page.svelte
@@ -0,0 +1,14 @@
+<script lang="ts">
+  export let data;
+  console.log(data);
+</script>
+
+<h2>Fetching in universal load</h2>
+
+<p>Here's a list of a few users:</p>
+
+<ul>
+  {#each data.users as user}
+    <li>{user}</li>
+  {/each}
+</ul>
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/universal-load-fetch/+page.ts b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/universal-load-fetch/+page.ts
new file mode 100644
index 000000000000..63c1ee68e1cb
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/universal-load-fetch/+page.ts
@@ -0,0 +1,5 @@
+export const load = async ({ fetch }) => {
+  const usersRes = await fetch('/api/users');
+  const data = await usersRes.json();
+  return { users: data.users };
+};
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/users/+page.server.ts b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/users/+page.server.ts
new file mode 100644
index 000000000000..a34c5450f682
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/users/+page.server.ts
@@ -0,0 +1,5 @@
+export const load = async () => {
+  return {
+    msg: 'Hi everyone!',
+  };
+};
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/users/+page.svelte b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/users/+page.svelte
new file mode 100644
index 000000000000..aa804a4518fa
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/users/+page.svelte
@@ -0,0 +1,10 @@
+<script lang="ts">
+  export let data;
+</script>
+<h2>
+  All Users:
+</h2>
+
+<p>
+  message: {data.msg}
+</p>
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/users/[id]/+page.server.ts b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/users/[id]/+page.server.ts
new file mode 100644
index 000000000000..9388f3927018
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/users/[id]/+page.server.ts
@@ -0,0 +1,5 @@
+export const load = async ({ params }) => {
+  return {
+    msg: `This is a special message for user ${params.id}`,
+  };
+};
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/users/[id]/+page.svelte b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/users/[id]/+page.svelte
new file mode 100644
index 000000000000..d348a8c57dad
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/src/routes/users/[id]/+page.svelte
@@ -0,0 +1,14 @@
+<script lang="ts">
+import { page } from '$app/stores';
+export let data;
+</script>
+
+<h1>Route with dynamic params</h1>
+
+<p>
+  User id: {$page.params.id}
+</p>
+
+<p>
+  Secret message for user: {data.msg}
+</p>
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/test/errors.client.test.ts b/dev-packages/e2e-tests/test-applications/sveltekit/test/errors.client.test.ts
new file mode 100644
index 000000000000..7cd1a545165b
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/test/errors.client.test.ts
@@ -0,0 +1,55 @@
+import { expect, test } from '@playwright/test';
+import { waitForError } from '../event-proxy-server';
+import { waitForInitialPageload } from '../utils';
+
+test.describe('client-side errors', () => {
+  test('captures error thrown on click', async ({ page }) => {
+    await page.goto('/client-error');
+
+    await expect(page.getByText('Client error')).toBeVisible();
+
+    const errorEventPromise = waitForError('sveltekit', errorEvent => {
+      return errorEvent?.exception?.values?.[0]?.value === 'Click Error';
+    });
+
+    const clickPromise = page.getByText('Throw error').click();
+
+    const [errorEvent, _] = await Promise.all([errorEventPromise, clickPromise]);
+
+    const errorEventFrames = errorEvent.exception?.values?.[0]?.stacktrace?.frames;
+
+    expect(errorEventFrames?.[errorEventFrames?.length - 1]).toEqual(
+      expect.objectContaining({
+        function: expect.stringContaining('HTMLButtonElement'),
+        lineno: 1,
+        in_app: true,
+      }),
+    );
+
+    expect(errorEvent.tags).toMatchObject({ runtime: 'browser' });
+  });
+
+  test('captures universal load error', async ({ page }) => {
+    await waitForInitialPageload(page);
+    await page.reload();
+
+    const errorEventPromise = waitForError('sveltekit', errorEvent => {
+      return errorEvent?.exception?.values?.[0]?.value === 'Universal Load Error (browser)';
+    });
+
+    // navigating triggers the error on the client
+    await page.getByText('Universal Load error').click();
+
+    const errorEvent = await errorEventPromise;
+    const errorEventFrames = errorEvent.exception?.values?.[0]?.stacktrace?.frames;
+
+    expect(errorEventFrames?.[errorEventFrames?.length - 1]).toEqual(
+      expect.objectContaining({
+        lineno: 1,
+        in_app: true,
+      }),
+    );
+
+    expect(errorEvent.tags).toMatchObject({ runtime: 'browser' });
+  });
+});
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/test/errors.server.test.ts b/dev-packages/e2e-tests/test-applications/sveltekit/test/errors.server.test.ts
new file mode 100644
index 000000000000..5493659b19db
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/test/errors.server.test.ts
@@ -0,0 +1,71 @@
+import { expect, test } from '@playwright/test';
+import { waitForError } from '../event-proxy-server';
+
+test.describe('server-side errors', () => {
+  test('captures universal load error', async ({ page }) => {
+    const errorEventPromise = waitForError('sveltekit', errorEvent => {
+      return errorEvent?.exception?.values?.[0]?.value === 'Universal Load Error (server)';
+    });
+
+    await page.goto('/universal-load-error');
+
+    const errorEvent = await errorEventPromise;
+    const errorEventFrames = errorEvent.exception?.values?.[0]?.stacktrace?.frames;
+
+    expect(errorEventFrames?.[errorEventFrames?.length - 1]).toEqual(
+      expect.objectContaining({
+        function: 'load$1',
+        lineno: 3,
+        in_app: true,
+      }),
+    );
+
+    expect(errorEvent.tags).toMatchObject({ runtime: 'node' });
+  });
+
+  test('captures server load error', async ({ page }) => {
+    const errorEventPromise = waitForError('sveltekit', errorEvent => {
+      return errorEvent?.exception?.values?.[0]?.value === 'Server Load Error';
+    });
+
+    await page.goto('/server-load-error');
+
+    const errorEvent = await errorEventPromise;
+    const errorEventFrames = errorEvent.exception?.values?.[0]?.stacktrace?.frames;
+
+    expect(errorEventFrames?.[errorEventFrames?.length - 1]).toEqual(
+      expect.objectContaining({
+        function: 'load$1',
+        lineno: 3,
+        in_app: true,
+      }),
+    );
+
+    expect(errorEvent.tags).toMatchObject({ runtime: 'node' });
+  });
+
+  test('captures server route (GET) error', async ({ page }) => {
+    const errorEventPromise = waitForError('sveltekit', errorEvent => {
+      return errorEvent?.exception?.values?.[0]?.value === 'Server Route Error';
+    });
+
+    await page.goto('/server-route-error');
+
+    const errorEvent = await errorEventPromise;
+    const errorEventFrames = errorEvent.exception?.values?.[0]?.stacktrace?.frames;
+
+    expect(errorEventFrames?.[errorEventFrames?.length - 1]).toEqual(
+      expect.objectContaining({
+        filename: 'app:///_server.ts.js',
+        function: 'GET',
+        lineno: 2,
+        in_app: true,
+      }),
+    );
+
+    expect(errorEvent.tags).toMatchObject({
+      runtime: 'node',
+      transaction: 'GET /server-route-error',
+    });
+  });
+});
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/test/performance.test.ts b/dev-packages/e2e-tests/test-applications/sveltekit/test/performance.test.ts
new file mode 100644
index 000000000000..e0d3d16df1ab
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/test/performance.test.ts
@@ -0,0 +1,124 @@
+import { expect, test } from '@playwright/test';
+import { waitForTransaction } from '../event-proxy-server.js';
+import { waitForInitialPageload } from '../utils.js';
+
+test('sends a pageload transaction', async ({ page }) => {
+  const pageloadTransactionEventPromise = waitForTransaction('sveltekit', (transactionEvent: any) => {
+    return transactionEvent?.contexts?.trace?.op === 'pageload' && transactionEvent?.transaction === '/';
+  });
+
+  await page.goto('/');
+
+  const transactionEvent = await pageloadTransactionEventPromise;
+
+  expect(transactionEvent).toMatchObject({
+    transaction: '/',
+    transaction_info: {
+      source: 'route',
+    },
+    contexts: {
+      trace: {
+        op: 'pageload',
+        origin: 'auto.pageload.sveltekit',
+      },
+    },
+    tags: {
+      'routing.instrumentation': '@sentry/sveltekit',
+    },
+  });
+});
+
+test('captures a distributed pageload trace', async ({ page }) => {
+  await page.goto('/users/123xyz');
+
+  const clientTxnEventPromise = waitForTransaction('sveltekit', txnEvent => {
+    return txnEvent?.transaction === '/users/[id]';
+  });
+
+  const serverTxnEventPromise = waitForTransaction('sveltekit', txnEvent => {
+    return txnEvent?.transaction === 'GET /users/[id]';
+  });
+
+  const [clientTxnEvent, serverTxnEvent] = await Promise.all([clientTxnEventPromise, serverTxnEventPromise]);
+
+  expect(clientTxnEvent).toMatchObject({
+    transaction: '/users/[id]',
+    tags: { runtime: 'browser' },
+    transaction_info: { source: 'route' },
+    type: 'transaction',
+    contexts: {
+      trace: {
+        op: 'pageload',
+        origin: 'auto.pageload.sveltekit',
+      },
+    },
+  });
+
+  expect(serverTxnEvent).toMatchObject({
+    transaction: 'GET /users/[id]',
+    tags: { runtime: 'node' },
+    transaction_info: { source: 'route' },
+    type: 'transaction',
+    contexts: {
+      trace: {
+        op: 'http.server',
+        origin: 'auto.http.sveltekit',
+      },
+    },
+  });
+  // connected trace
+  expect(clientTxnEvent.contexts?.trace?.trace_id).toBe(serverTxnEvent.contexts?.trace?.trace_id);
+
+  // weird but server txn is parent of client txn
+  expect(clientTxnEvent.contexts?.trace?.parent_span_id).toBe(serverTxnEvent.contexts?.trace?.span_id);
+});
+
+test('captures a distributed navigation trace', async ({ page }) => {
+  await waitForInitialPageload(page);
+
+  const clientNavigationTxnEventPromise = waitForTransaction('sveltekit', txnEvent => {
+    return txnEvent?.transaction === '/users/[id]';
+  });
+
+  const serverTxnEventPromise = waitForTransaction('sveltekit', txnEvent => {
+    return txnEvent?.transaction === 'GET /users/[id]';
+  });
+
+  // navigation to page
+  const clickPromise = page.getByText('Route with Params').click();
+
+  const [clientTxnEvent, serverTxnEvent, _1] = await Promise.all([
+    clientNavigationTxnEventPromise,
+    serverTxnEventPromise,
+    clickPromise,
+  ]);
+
+  expect(clientTxnEvent).toMatchObject({
+    transaction: '/users/[id]',
+    tags: { runtime: 'browser' },
+    transaction_info: { source: 'route' },
+    type: 'transaction',
+    contexts: {
+      trace: {
+        op: 'navigation',
+        origin: 'auto.navigation.sveltekit',
+      },
+    },
+  });
+
+  expect(serverTxnEvent).toMatchObject({
+    transaction: 'GET /users/[id]',
+    tags: { runtime: 'node' },
+    transaction_info: { source: 'route' },
+    type: 'transaction',
+    contexts: {
+      trace: {
+        op: 'http.server',
+        origin: 'auto.http.sveltekit',
+      },
+    },
+  });
+
+  // trace is connected
+  expect(clientTxnEvent.contexts?.trace?.trace_id).toBe(serverTxnEvent.contexts?.trace?.trace_id);
+});
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/test/transaction.test.ts b/dev-packages/e2e-tests/test-applications/sveltekit/test/transaction.test.ts
deleted file mode 100644
index 7d621af34dcf..000000000000
--- a/dev-packages/e2e-tests/test-applications/sveltekit/test/transaction.test.ts
+++ /dev/null
@@ -1,48 +0,0 @@
-import { expect, test } from '@playwright/test';
-import axios, { AxiosError } from 'axios';
-// @ts-expect-error ok ok
-import { waitForTransaction } from '../event-proxy-server.ts';
-
-const authToken = process.env.E2E_TEST_AUTH_TOKEN;
-const sentryTestOrgSlug = process.env.E2E_TEST_SENTRY_ORG_SLUG;
-const sentryTestProject = process.env.E2E_TEST_SENTRY_TEST_PROJECT;
-const EVENT_POLLING_TIMEOUT = 90_000;
-
-test('Sends a pageload transaction', async ({ page }) => {
-  const pageloadTransactionEventPromise = waitForTransaction('sveltekit', (transactionEvent: any) => {
-    return transactionEvent?.contexts?.trace?.op === 'pageload' && transactionEvent?.transaction === '/';
-  });
-
-  await page.goto('/');
-
-  const transactionEvent = await pageloadTransactionEventPromise;
-  const transactionEventId = transactionEvent.event_id;
-
-  await expect
-    .poll(
-      async () => {
-        try {
-          const response = await axios.get(
-            `https://sentry.io/api/0/projects/${sentryTestOrgSlug}/${sentryTestProject}/events/${transactionEventId}/`,
-            { headers: { Authorization: `Bearer ${authToken}` } },
-          );
-
-          return response.status;
-        } catch (e) {
-          if (e instanceof AxiosError && e.response) {
-            if (e.response.status !== 404) {
-              throw e;
-            } else {
-              return e.response.status;
-            }
-          } else {
-            throw e;
-          }
-        }
-      },
-      {
-        timeout: EVENT_POLLING_TIMEOUT,
-      },
-    )
-    .toBe(200);
-});
diff --git a/dev-packages/e2e-tests/test-applications/sveltekit/utils.ts b/dev-packages/e2e-tests/test-applications/sveltekit/utils.ts
new file mode 100644
index 000000000000..2886873bb8fb
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/sveltekit/utils.ts
@@ -0,0 +1,53 @@
+import { Page } from '@playwright/test';
+import { waitForTransaction } from './event-proxy-server';
+
+/**
+ * Helper function that waits for the initial pageload to complete.
+ *
+ * This function
+ * - loads the given route ("/" by default)
+ * - waits for SvelteKit's hydration
+ * - waits for the pageload transaction to be sent (doesn't assert on it though)
+ *
+ * Useful for tests that test outcomes of _navigations_ after an initial pageload.
+ * Waiting on the pageload transaction excludes edge cases where navigations occur
+ * so quickly that the pageload idle transaction is still active. This might lead
+ * to cases where the routing span would be attached to the pageload transaction
+ * and hence eliminates a lot of flakiness.
+ *
+ */
+export async function waitForInitialPageload(
+  page: Page,
+  opts?: { route?: string; parameterizedRoute?: string; debug: boolean },
+) {
+  const route = opts?.route ?? '/';
+  const txnName = opts?.parameterizedRoute ?? route;
+  const debug = opts?.debug ?? false;
+
+  const clientPageloadTxnEventPromise = waitForTransaction('sveltekit', txnEvent => {
+    debug &&
+      console.log({
+        txn: txnEvent?.transaction,
+        op: txnEvent.contexts?.trace?.op,
+        trace: txnEvent.contexts?.trace?.trace_id,
+        span: txnEvent.contexts?.trace?.span_id,
+        parent: txnEvent.contexts?.trace?.parent_span_id,
+      });
+
+    return txnEvent?.transaction === txnName && txnEvent.contexts?.trace?.op === 'pageload';
+  });
+
+  await Promise.all([
+    page.goto(route),
+    // the test app adds the "hydrated" class to the body when hydrating
+    page.waitForSelector('body.hydrated'),
+    // also waiting for the initial pageload txn so that later navigations don't interfere
+    clientPageloadTxnEventPromise,
+  ]);
+
+  // let's add a buffer because it seems like the hydrated flag isn't enough :(
+  // guess: The layout finishes hydration/mounting before the components within finish
+  // await page.waitForTimeout(10_000);
+
+  debug && console.log('hydrated');
+}
diff --git a/package.json b/package.json
index da7149544f46..9a226b3d8408 100644
--- a/package.json
+++ b/package.json
@@ -16,7 +16,8 @@
     "clean:build": "lerna run clean",
     "clean:caches": "yarn rimraf eslintcache .nxcache && yarn jest --clearCache",
     "clean:deps": "lerna clean --yes && rm -rf node_modules && yarn",
-    "clean:all": "run-s clean:build clean:caches clean:deps",
+    "clean:tarballs": "rimraf **/*.tgz",
+    "clean:all": "run-s clean:build clean:tarballs clean:caches clean:deps",
     "codecov": "codecov",
     "fix": "run-s fix:biome fix:prettier fix:lerna",
     "fix:lerna": "lerna run fix",