diff --git a/.changeset/kind-wombats-jam.md b/.changeset/kind-wombats-jam.md
new file mode 100644
index 000000000000..ff872aa64529
--- /dev/null
+++ b/.changeset/kind-wombats-jam.md
@@ -0,0 +1,5 @@
+---
+'svelte': patch
+---
+
+fix: don't delegate events on custom elements
diff --git a/.changeset/six-steaks-provide.md b/.changeset/six-steaks-provide.md
new file mode 100644
index 000000000000..3459c832d0d7
--- /dev/null
+++ b/.changeset/six-steaks-provide.md
@@ -0,0 +1,5 @@
+---
+'svelte': patch
+---
+
+fix: still invoke listener for cancelled event on the element where it was cancelled
diff --git a/packages/svelte/src/compiler/phases/2-analyze/visitors/Attribute.js b/packages/svelte/src/compiler/phases/2-analyze/visitors/Attribute.js
index 9d801e095e8d..515871032fa3 100644
--- a/packages/svelte/src/compiler/phases/2-analyze/visitors/Attribute.js
+++ b/packages/svelte/src/compiler/phases/2-analyze/visitors/Attribute.js
@@ -7,6 +7,7 @@ import {
 	get_attribute_expression,
 	is_event_attribute
 } from '../../../utils/ast.js';
+import { is_custom_element_node } from '../../nodes.js';
 import { mark_subtree_dynamic } from './shared/fragment.js';
 
 /**
@@ -67,7 +68,6 @@ export function Attribute(node, context) {
 		}
 
 		if (is_event_attribute(node)) {
-			const parent = context.path.at(-1);
 			if (parent?.type === 'RegularElement' || parent?.type === 'SvelteElement') {
 				context.state.analysis.uses_event_attributes = true;
 			}
@@ -75,7 +75,14 @@ export function Attribute(node, context) {
 			const expression = get_attribute_expression(node);
 			const delegated_event = get_delegated_event(node.name.slice(2), expression, context);
 
-			if (delegated_event !== null) {
+			if (
+				delegated_event !== null &&
+				// We can't assume that the events from within the shadow root bubble beyond it.
+				// If someone dispatches them without the composed option, they won't. Also
+				// people could repurpose the event names to do something else, or call stopPropagation
+				// on the shadow root so it doesn't bubble beyond it.
+				!(parent?.type === 'RegularElement' && is_custom_element_node(parent))
+			) {
 				if (delegated_event.hoisted) {
 					delegated_event.function.metadata.hoisted = true;
 				}
diff --git a/packages/svelte/src/internal/client/dom/elements/attributes.js b/packages/svelte/src/internal/client/dom/elements/attributes.js
index 6656532986d7..c91a4e018f36 100644
--- a/packages/svelte/src/internal/client/dom/elements/attributes.js
+++ b/packages/svelte/src/internal/client/dom/elements/attributes.js
@@ -318,7 +318,8 @@ export function set_attributes(
 			const opts = {};
 			const event_handle_key = '$$' + key;
 			let event_name = key.slice(2);
-			var delegated = is_delegated(event_name);
+			// Events on custom elements can be anything, we can't assume they bubble
+			var delegated = !is_custom_element && is_delegated(event_name);
 
 			if (is_capture_event(event_name)) {
 				event_name = event_name.slice(0, -7);
diff --git a/packages/svelte/src/internal/client/dom/elements/events.js b/packages/svelte/src/internal/client/dom/elements/events.js
index f2038f96ada3..9af6040bbb39 100644
--- a/packages/svelte/src/internal/client/dom/elements/events.js
+++ b/packages/svelte/src/internal/client/dom/elements/events.js
@@ -61,7 +61,10 @@ export function create_event(event_name, dom, handler, options) {
 			// Only call in the bubble phase, else delegated events would be called before the capturing events
 			handle_event_propagation.call(dom, event);
 		}
-		if (!event.cancelBubble) {
+
+		// @ts-expect-error Use this instead of cancelBubble, because cancelBubble is also true if
+		// we're the last element on which the event will be handled.
+		if (!event.__cancelled || event.__cancelled === dom) {
 			return without_reactive_context(() => {
 				return handler.call(this, event);
 			});
@@ -171,6 +174,8 @@ export function handle_event_propagation(event) {
 			// chain in case someone manually dispatches the same event object again.
 			// @ts-expect-error
 			event.__root = handler_element;
+			// @ts-expect-error
+			event.__cancelled = null;
 			return;
 		}
 
@@ -216,6 +221,7 @@ export function handle_event_propagation(event) {
 	set_active_effect(null);
 
 	try {
+		var cancelled = event.cancelBubble;
 		/**
 		 * @type {unknown}
 		 */
@@ -253,6 +259,10 @@ export function handle_event_propagation(event) {
 				}
 			}
 			if (event.cancelBubble || parent_element === handler_element || parent_element === null) {
+				if (!cancelled && event.cancelBubble) {
+					// @ts-expect-error
+					event.__cancelled = current_target;
+				}
 				break;
 			}
 			current_target = parent_element;
diff --git a/packages/svelte/tests/runtime-runes/samples/event-attribute-delegation-custom-elements/_config.js b/packages/svelte/tests/runtime-runes/samples/event-attribute-delegation-custom-elements/_config.js
new file mode 100644
index 000000000000..15d3395b7af7
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/event-attribute-delegation-custom-elements/_config.js
@@ -0,0 +1,18 @@
+import { test } from '../../test';
+
+export default test({
+	mode: ['client'],
+	async test({ assert, target, logs }) {
+		const [btn1, btn2] = [...target.querySelectorAll('custom-element')].map((c) =>
+			c.shadowRoot?.querySelector('button')
+		);
+
+		btn1?.click();
+		await Promise.resolve();
+		assert.deepEqual(logs, ['reached shadow root1']);
+
+		btn2?.click();
+		await Promise.resolve();
+		assert.deepEqual(logs, ['reached shadow root1', 'reached shadow root2']);
+	}
+});
diff --git a/packages/svelte/tests/runtime-runes/samples/event-attribute-delegation-custom-elements/main.svelte b/packages/svelte/tests/runtime-runes/samples/event-attribute-delegation-custom-elements/main.svelte
new file mode 100644
index 000000000000..2f5e6afe6ca1
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/event-attribute-delegation-custom-elements/main.svelte
@@ -0,0 +1,19 @@
+<script>
+	class CustomElement extends HTMLElement {
+		constructor() {
+			super();
+			this.attachShadow({ mode: 'open' });
+			this.shadowRoot.innerHTML = '<button>click me</button>';
+			// Looks weird, but some custom element implementations actually do this
+			// to prevent unwanted side upwards event propagation
+			this.addEventListener('click', (e) => e.stopPropagation());
+		}
+	}
+
+	customElements.define('custom-element', CustomElement);
+</script>
+
+<div onclick={() => console.log('bubbled beyond shadow root')}>
+	<custom-element onclick={() => console.log('reached shadow root1')}></custom-element>
+	<custom-element {...{onclick:() => console.log('reached shadow root2')}}></custom-element>
+</div>