diff --git a/.changeset/gorgeous-jokes-sit.md b/.changeset/gorgeous-jokes-sit.md
new file mode 100644
index 000000000000..934bae780fce
--- /dev/null
+++ b/.changeset/gorgeous-jokes-sit.md
@@ -0,0 +1,5 @@
+---
+'svelte': patch
+---
+
+breaking: array proxy coercion is no longer reactive in template
diff --git a/packages/svelte/src/internal/client/constants.js b/packages/svelte/src/internal/client/constants.js
index 53df86126ac4..dd9fc2a5249e 100644
--- a/packages/svelte/src/internal/client/constants.js
+++ b/packages/svelte/src/internal/client/constants.js
@@ -3,22 +3,23 @@ export const EFFECT = 1 << 2;
 export const RENDER_EFFECT = 1 << 3;
 export const BLOCK_EFFECT = 1 << 4;
 export const BRANCH_EFFECT = 1 << 5;
-export const ROOT_EFFECT = 1 << 6;
-export const UNOWNED = 1 << 7;
-export const DISCONNECTED = 1 << 8;
-export const CLEAN = 1 << 9;
-export const DIRTY = 1 << 10;
-export const MAYBE_DIRTY = 1 << 11;
-export const INERT = 1 << 12;
-export const DESTROYED = 1 << 13;
-export const EFFECT_RAN = 1 << 14;
+export const TEMPLATE_EFFECT = 1 << 6;
+export const ROOT_EFFECT = 1 << 7;
+export const UNOWNED = 1 << 8;
+export const DISCONNECTED = 1 << 9;
+export const CLEAN = 1 << 10;
+export const DIRTY = 1 << 11;
+export const MAYBE_DIRTY = 1 << 12;
+export const INERT = 1 << 13;
+export const DESTROYED = 1 << 14;
+export const EFFECT_RAN = 1 << 15;
 /** 'Transparent' effects do not create a transition boundary */
-export const EFFECT_TRANSPARENT = 1 << 15;
+export const EFFECT_TRANSPARENT = 1 << 16;
 /** Svelte 4 legacy mode props need to be handled with deriveds and be recognized elsewhere, hence the dedicated flag */
-export const LEGACY_DERIVED_PROP = 1 << 16;
-export const INSPECT_EFFECT = 1 << 17;
-export const HEAD_EFFECT = 1 << 18;
-export const EFFECT_HAS_DERIVED = 1 << 19;
+export const LEGACY_DERIVED_PROP = 1 << 17;
+export const INSPECT_EFFECT = 1 << 18;
+export const HEAD_EFFECT = 1 << 19;
+export const EFFECT_HAS_DERIVED = 1 << 20;
 
 export const STATE_SYMBOL = Symbol('$state');
 export const STATE_SYMBOL_METADATA = Symbol('$state metadata');
diff --git a/packages/svelte/src/internal/client/proxy.js b/packages/svelte/src/internal/client/proxy.js
index 7454a22183ac..3409b013cc5f 100644
--- a/packages/svelte/src/internal/client/proxy.js
+++ b/packages/svelte/src/internal/client/proxy.js
@@ -1,6 +1,6 @@
 /** @import { ProxyMetadata, ProxyStateObject, Source } from '#client' */
 import { DEV } from 'esm-env';
-import { get, component_context, active_effect } from './runtime.js';
+import { get, component_context, active_effect, untrack, active_reaction } from './runtime.js';
 import {
 	array_prototype,
 	get_descriptor,
@@ -10,7 +10,7 @@ import {
 } from '../shared/utils.js';
 import { check_ownership, widen_ownership } from './dev/ownership.js';
 import { source, set } from './reactivity/sources.js';
-import { STATE_SYMBOL, STATE_SYMBOL_METADATA } from './constants.js';
+import { STATE_SYMBOL, STATE_SYMBOL_METADATA, TEMPLATE_EFFECT } from './constants.js';
 import { UNINITIALIZED } from '../../constants.js';
 import * as e from './errors.js';
 
@@ -115,6 +115,17 @@ export function proxy(value, parent = null, prev) {
 			if (DEV && prop === STATE_SYMBOL_METADATA) {
 				return metadata;
 			}
+			// We untrack Symbol.toPrimitive when used within a template effect. If people want explicit reactivity,
+			// they should use toString() or some other coercion method instead
+			if (
+				is_proxied_array &&
+				prop === Symbol.toPrimitive &&
+				active_reaction !== null &&
+				(active_reaction.f & TEMPLATE_EFFECT) !== 0
+			) {
+				return (/** @type {'string' | 'number' | 'default'} */ hint) =>
+					untrack(() => (hint === 'number' ? Number(target) : String(target)));
+			}
 
 			if (prop === STATE_SYMBOL) {
 				return value;
diff --git a/packages/svelte/src/internal/client/reactivity/effects.js b/packages/svelte/src/internal/client/reactivity/effects.js
index b5955e9b32c0..41dd61c18070 100644
--- a/packages/svelte/src/internal/client/reactivity/effects.js
+++ b/packages/svelte/src/internal/client/reactivity/effects.js
@@ -35,7 +35,8 @@ import {
 	INSPECT_EFFECT,
 	HEAD_EFFECT,
 	MAYBE_DIRTY,
-	EFFECT_HAS_DERIVED
+	EFFECT_HAS_DERIVED,
+	TEMPLATE_EFFECT
 } from '../constants.js';
 import { set } from './sources.js';
 import * as e from '../errors.js';
@@ -324,7 +325,7 @@ export function template_effect(fn) {
 			value: '{expression}'
 		});
 	}
-	return render_effect(fn);
+	return create_effect(RENDER_EFFECT | TEMPLATE_EFFECT, fn, true);
 }
 
 /**
diff --git a/packages/svelte/tests/runtime-runes/samples/inspect-derived-2/main.svelte b/packages/svelte/tests/runtime-runes/samples/inspect-derived-2/main.svelte
index 1071d37c39c6..14e9e7acc75f 100644
--- a/packages/svelte/tests/runtime-runes/samples/inspect-derived-2/main.svelte
+++ b/packages/svelte/tests/runtime-runes/samples/inspect-derived-2/main.svelte
@@ -18,4 +18,4 @@
 </script>
 
 <button onclick={() => (state.data.list.push(1))}>update</button>
-{state.data.list}
+{state.data.list.toString()}
diff --git a/packages/svelte/tests/runtime-runes/samples/props-default-value-lazy-accessors/main.svelte b/packages/svelte/tests/runtime-runes/samples/props-default-value-lazy-accessors/main.svelte
index fe2ac37bd3f6..ce2a5e5e2dbf 100644
--- a/packages/svelte/tests/runtime-runes/samples/props-default-value-lazy-accessors/main.svelte
+++ b/packages/svelte/tests/runtime-runes/samples/props-default-value-lazy-accessors/main.svelte
@@ -26,4 +26,4 @@
 </script>
 
 <p>props: {p0} {p1} {p2} {p3} {p4} {p5} {p6} {p7}</p>
-<p>log: {log}</p>
+<p>log: {log.toString()}</p>
diff --git a/packages/svelte/tests/runtime-runes/samples/props-default-value-lazy/sub.svelte b/packages/svelte/tests/runtime-runes/samples/props-default-value-lazy/sub.svelte
index fe2ac37bd3f6..ce2a5e5e2dbf 100644
--- a/packages/svelte/tests/runtime-runes/samples/props-default-value-lazy/sub.svelte
+++ b/packages/svelte/tests/runtime-runes/samples/props-default-value-lazy/sub.svelte
@@ -26,4 +26,4 @@
 </script>
 
 <p>props: {p0} {p1} {p2} {p3} {p4} {p5} {p6} {p7}</p>
-<p>log: {log}</p>
+<p>log: {log.toString()}</p>
diff --git a/packages/svelte/tests/runtime-runes/samples/proxy-to-primitive/_config.js b/packages/svelte/tests/runtime-runes/samples/proxy-to-primitive/_config.js
new file mode 100644
index 000000000000..684e5870c19d
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/proxy-to-primitive/_config.js
@@ -0,0 +1,30 @@
+import { flushSync } from 'svelte';
+import { test } from '../../test';
+
+export default test({
+	html: `
+		<button>add</button><ul><li>1,2,3</li><li>1,2,3</li><li>text
+		1,2,3</li><li>1,2,3</li><li>1,2,3</li><li title="1,2,3"></li><li title="1,2,3"></li><li><input readonly="" type="text"></li><li><input readonly="" type="text"></li></ul>
+	`,
+
+	ssrHtml: `
+		<button>add</button><ul><li>1,2,3</li><li>1,2,3</li><li>text
+		1,2,3</li><li>1,2,3</li><li>1,2,3</li><li title="1,2,3"></li><li title="1,2,3"></li><li><input readonly="" type="text" value="1,2,3"></li><li><input readonly="" type="text" value="1,2,3"></li></ul>
+	`,
+
+	test({ assert, target }) {
+		const [btn1] = target.querySelectorAll('button');
+
+		flushSync(() => {
+			btn1?.click();
+		});
+
+		assert.htmlEqual(
+			target.innerHTML,
+			`
+				<button>add</button><ul><li>1,2,3</li><li>1,2,3,4</li><li>text
+				1,2,3</li><li>1,2,3</li><li>1,2,3,4</li><li title="1,2,3"></li><li title="1,2,3,4"></li><li><input readonly="" type="text"></li><li><input readonly="" type="text"></li></ul>
+			`
+		);
+	}
+});
diff --git a/packages/svelte/tests/runtime-runes/samples/proxy-to-primitive/main.svelte b/packages/svelte/tests/runtime-runes/samples/proxy-to-primitive/main.svelte
new file mode 100644
index 000000000000..a02ab881c6e2
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/proxy-to-primitive/main.svelte
@@ -0,0 +1,21 @@
+<script>
+	let array = $state([1,2,3]);
+
+	function addToArray() {
+		array.push(array.length+1);
+	}
+</script>
+
+<button onclick={addToArray}>add</button>
+
+<ul>
+	<li>{@html array}</li>
+	<li>{@html array?.toString()}</li>
+	<li>text {array}</li>
+	<li>{array}</li>
+	<li>{array?.toString()}</li>
+	<li title={array}></li>
+	<li title={array?.toString()}></li>
+	<li><input type="text" value={array} readonly/> </li>
+	<li><input type="text" value={array?.toString()} readonly/> </li>
+</ul>