diff --git a/.changeset/happy-snakes-pump.md b/.changeset/happy-snakes-pump.md
new file mode 100644
index 000000000000..a5cb3dc30334
--- /dev/null
+++ b/.changeset/happy-snakes-pump.md
@@ -0,0 +1,5 @@
+---
+'svelte': patch
+---
+
+fix: ignore generic type arguments while creating AST
diff --git a/packages/svelte/package.json b/packages/svelte/package.json
index f70ae5cac6c5..1434bb9f069a 100644
--- a/packages/svelte/package.json
+++ b/packages/svelte/package.json
@@ -156,7 +156,7 @@
     "axobject-query": "^4.1.0",
     "clsx": "^2.1.1",
     "esm-env": "^1.2.1",
-    "esrap": "^1.4.3",
+    "esrap": "^1.4.6",
     "is-reference": "^3.0.3",
     "locate-character": "^3.0.0",
     "magic-string": "^0.30.11",
diff --git a/packages/svelte/src/compiler/phases/1-parse/remove_typescript_nodes.js b/packages/svelte/src/compiler/phases/1-parse/remove_typescript_nodes.js
index 37dc0e17a1ee..4ff6a782b4fb 100644
--- a/packages/svelte/src/compiler/phases/1-parse/remove_typescript_nodes.js
+++ b/packages/svelte/src/compiler/phases/1-parse/remove_typescript_nodes.js
@@ -24,6 +24,7 @@ const visitors = {
 		// until that day comes, we just delete them so they don't confuse esrap
 		delete n.typeAnnotation;
 		delete n.typeParameters;
+		delete n.typeArguments;
 		delete n.returnType;
 		delete n.accessibility;
 	},
diff --git a/packages/svelte/src/compiler/phases/3-transform/server/transform-server.js b/packages/svelte/src/compiler/phases/3-transform/server/transform-server.js
index df3d831d3cc3..f746e90fe24f 100644
--- a/packages/svelte/src/compiler/phases/3-transform/server/transform-server.js
+++ b/packages/svelte/src/compiler/phases/3-transform/server/transform-server.js
@@ -186,12 +186,10 @@ export function server_component(analysis, options) {
 			...snippets,
 			b.let('$$settled', b.true),
 			b.let('$$inner_payload'),
-			b.stmt(
-				b.function(
-					b.id('$$render_inner'),
-					[b.id('$$payload')],
-					b.block(/** @type {Statement[]} */ (rest))
-				)
+			b.function_declaration(
+				b.id('$$render_inner'),
+				[b.id('$$payload')],
+				b.block(/** @type {Statement[]} */ (rest))
 			),
 			b.do_while(
 				b.unary('!', b.id('$$settled')),
diff --git a/packages/svelte/tests/runtime-runes/samples/typescript/main.svelte b/packages/svelte/tests/runtime-runes/samples/typescript/main.svelte
index d2a9da5439a4..d1b6452df465 100644
--- a/packages/svelte/tests/runtime-runes/samples/typescript/main.svelte
+++ b/packages/svelte/tests/runtime-runes/samples/typescript/main.svelte
@@ -8,7 +8,7 @@
 		console.log(this);
 	}
 
-	function foo(): string {
+	function foo<T>(): string {
 		return ""!;
 	}
 
@@ -46,6 +46,7 @@
 
 	const TypedFoo = Foo<true>;
 	const typeAssertion = <boolean>true;
+	const x = foo<true>();
 </script>
 
 <script>
diff --git a/packages/svelte/tests/snapshot/samples/bind-component-snippet/_expected/server/index.svelte.js b/packages/svelte/tests/snapshot/samples/bind-component-snippet/_expected/server/index.svelte.js
index c091179c41ae..cadae2cf15c0 100644
--- a/packages/svelte/tests/snapshot/samples/bind-component-snippet/_expected/server/index.svelte.js
+++ b/packages/svelte/tests/snapshot/samples/bind-component-snippet/_expected/server/index.svelte.js
@@ -23,7 +23,7 @@ export default function Bind_component_snippet($$payload) {
 		});
 
 		$$payload.out += `<!----> value: ${$.escape(value)}`;
-	};
+	}
 
 	do {
 		$$settled = true;
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index eaf407e30475..e1f276d23f74 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -87,8 +87,8 @@ importers:
         specifier: ^1.2.1
         version: 1.2.1
       esrap:
-        specifier: ^1.4.3
-        version: 1.4.3
+        specifier: ^1.4.6
+        version: 1.4.6
       is-reference:
         specifier: ^3.0.3
         version: 3.0.3
@@ -1261,8 +1261,8 @@ packages:
     resolution: {integrity: sha512-YQLXUplAwJgCydQ78IMJywZCceoqk1oH01OERdSAJc/7U2AylwjhSCLDEtqwg811idIS/9fIU5GjG73IgjKMVg==}
     engines: {node: '>=0.10'}
 
-  esrap@1.4.3:
-    resolution: {integrity: sha512-Xddc1RsoFJ4z9nR7W7BFaEPIp4UXoeQ0+077UdWLxbafMQFyU79sQJMk7kxNgRwQ9/aVgaKacCHC2pUACGwmYw==}
+  esrap@1.4.6:
+    resolution: {integrity: sha512-F/D2mADJ9SHY3IwksD4DAXjTt7qt7GWUf3/8RhCNWmC/67tyb55dpimHmy7EplakFaflV0R/PC+fdSPqrRHAQw==}
 
   esrecurse@4.3.0:
     resolution: {integrity: sha512-KmfKL3b6G+RXvP8N1vr3Tq1kL/oCFgn2NYXEtqP8/L3pKapUA4G8cFVaoF3SU323CD4XypR/ffioHmkti6/Tag==}
@@ -3617,7 +3617,7 @@ snapshots:
     dependencies:
       estraverse: 5.3.0
 
-  esrap@1.4.3:
+  esrap@1.4.6:
     dependencies:
       '@jridgewell/sourcemap-codec': 1.5.0