diff --git a/packages/svelte/CHANGELOG.md b/packages/svelte/CHANGELOG.md
index 766c83763acc..f939f69d2804 100644
--- a/packages/svelte/CHANGELOG.md
+++ b/packages/svelte/CHANGELOG.md
@@ -1,5 +1,15 @@
 # svelte
 
+## 5.37.0
+
+### Minor Changes
+
+- feat: ignore component options in `compileModule` ([#16362](https://github.com/sveltejs/svelte/pull/16362))
+
+### Patch Changes
+
+- fix: always mark props as stateful ([#16504](https://github.com/sveltejs/svelte/pull/16504))
+
 ## 5.36.17
 
 ### Patch Changes
diff --git a/packages/svelte/package.json b/packages/svelte/package.json
index 22bc8cc8fac6..c781eda8c8d0 100644
--- a/packages/svelte/package.json
+++ b/packages/svelte/package.json
@@ -2,7 +2,7 @@
   "name": "svelte",
   "description": "Cybernetically enhanced web apps",
   "license": "MIT",
-  "version": "5.36.17",
+  "version": "5.37.0",
   "type": "module",
   "types": "./types/index.d.ts",
   "engines": {
diff --git a/packages/svelte/src/compiler/phases/2-analyze/visitors/Identifier.js b/packages/svelte/src/compiler/phases/2-analyze/visitors/Identifier.js
index cced326f9baa..4dfdfe5af1a1 100644
--- a/packages/svelte/src/compiler/phases/2-analyze/visitors/Identifier.js
+++ b/packages/svelte/src/compiler/phases/2-analyze/visitors/Identifier.js
@@ -93,7 +93,10 @@ export function Identifier(node, context) {
 			context.state.expression.references.add(binding);
 			context.state.expression.has_state ||=
 				binding.kind !== 'static' &&
-				!binding.is_function() &&
+				(binding.kind === 'prop' ||
+					binding.kind === 'bindable_prop' ||
+					binding.kind === 'rest_prop' ||
+					!binding.is_function()) &&
 				!context.state.scope.evaluate(node).is_known;
 		}
 
diff --git a/packages/svelte/src/compiler/validate-options.js b/packages/svelte/src/compiler/validate-options.js
index ed83375d2236..2b727ad09335 100644
--- a/packages/svelte/src/compiler/validate-options.js
+++ b/packages/svelte/src/compiler/validate-options.js
@@ -8,7 +8,7 @@ import * as w from './warnings.js';
  * @typedef {(input: Input, keypath: string) => Required<Output>} Validator
  */
 
-const common = {
+const common_options = {
 	filename: string('(unknown)'),
 
 	// default to process.cwd() where it exists to replicate svelte4 behavior (and make Deno work with this as well)
@@ -48,110 +48,120 @@ const common = {
 	})
 };
 
-export const validate_module_options =
-	/** @type {Validator<ModuleCompileOptions, ValidatedModuleCompileOptions>} */ (
-		object({
-			...common
-		})
-	);
+const component_options = {
+	accessors: deprecate(w.options_deprecated_accessors, boolean(false)),
 
-export const validate_component_options =
-	/** @type {Validator<CompileOptions, ValidatedCompileOptions>} */ (
-		object({
-			...common,
+	css: validator('external', (input) => {
+		if (input === true || input === false) {
+			throw_error(
+				'The boolean options have been removed from the css option. Use "external" instead of false and "injected" instead of true'
+			);
+		}
+		if (input === 'none') {
+			throw_error(
+				'css: "none" is no longer a valid option. If this was crucial for you, please open an issue on GitHub with your use case.'
+			);
+		}
 
-			accessors: deprecate(w.options_deprecated_accessors, boolean(false)),
+		if (input !== 'external' && input !== 'injected') {
+			throw_error(`css should be either "external" (default, recommended) or "injected"`);
+		}
 
-			css: validator('external', (input) => {
-				if (input === true || input === false) {
-					throw_error(
-						'The boolean options have been removed from the css option. Use "external" instead of false and "injected" instead of true'
-					);
-				}
-				if (input === 'none') {
-					throw_error(
-						'css: "none" is no longer a valid option. If this was crucial for you, please open an issue on GitHub with your use case.'
-					);
-				}
+		return input;
+	}),
 
-				if (input !== 'external' && input !== 'injected') {
-					throw_error(`css should be either "external" (default, recommended) or "injected"`);
-				}
+	cssHash: fun(({ css, hash }) => {
+		return `svelte-${hash(css)}`;
+	}),
+
+	// TODO this is a sourcemap option, would be good to put under a sourcemap namespace
+	cssOutputFilename: string(undefined),
+
+	customElement: boolean(false),
+
+	discloseVersion: boolean(true),
 
-				return input;
-			}),
+	immutable: deprecate(w.options_deprecated_immutable, boolean(false)),
 
-			cssHash: fun(({ css, hash }) => {
-				return `svelte-${hash(css)}`;
-			}),
+	legacy: removed(
+		'The legacy option has been removed. If you are using this because of legacy.componentApi, use compatibility.componentApi instead'
+	),
+
+	compatibility: object({
+		componentApi: list([4, 5], 5)
+	}),
+
+	loopGuardTimeout: warn_removed(w.options_removed_loop_guard_timeout),
+
+	name: string(undefined),
 
-			// TODO this is a sourcemap option, would be good to put under a sourcemap namespace
-			cssOutputFilename: string(undefined),
+	namespace: list(['html', 'mathml', 'svg']),
 
-			customElement: boolean(false),
+	modernAst: boolean(false),
 
-			discloseVersion: boolean(true),
+	outputFilename: string(undefined),
 
-			immutable: deprecate(w.options_deprecated_immutable, boolean(false)),
+	preserveComments: boolean(false),
 
-			legacy: removed(
-				'The legacy option has been removed. If you are using this because of legacy.componentApi, use compatibility.componentApi instead'
-			),
+	fragments: list(['html', 'tree']),
 
-			compatibility: object({
-				componentApi: list([4, 5], 5)
-			}),
+	preserveWhitespace: boolean(false),
 
-			loopGuardTimeout: warn_removed(w.options_removed_loop_guard_timeout),
+	runes: boolean(undefined),
 
-			name: string(undefined),
+	hmr: boolean(false),
 
-			namespace: list(['html', 'mathml', 'svg']),
+	sourcemap: validator(undefined, (input) => {
+		// Source maps can take on a variety of values, including string, JSON, map objects from magic-string and source-map,
+		// so there's no good way to check type validity here
+		return input;
+	}),
 
-			modernAst: boolean(false),
+	enableSourcemap: warn_removed(w.options_removed_enable_sourcemap),
 
-			outputFilename: string(undefined),
+	hydratable: warn_removed(w.options_removed_hydratable),
 
-			preserveComments: boolean(false),
+	format: removed(
+		'The format option has been removed in Svelte 4, the compiler only outputs ESM now. Remove "format" from your compiler options. ' +
+			'If you did not set this yourself, bump the version of your bundler plugin (vite-plugin-svelte/rollup-plugin-svelte/svelte-loader)'
+	),
 
-			fragments: list(['html', 'tree']),
+	tag: removed(
+		'The tag option has been removed in Svelte 5. Use `<svelte:options customElement="tag-name" />` inside the component instead. ' +
+			'If that does not solve your use case, please open an issue on GitHub with details.'
+	),
 
-			preserveWhitespace: boolean(false),
+	sveltePath: removed(
+		'The sveltePath option has been removed in Svelte 5. ' +
+			'If this option was crucial for you, please open an issue on GitHub with your use case.'
+	),
 
-			runes: boolean(undefined),
+	// These two were primarily created for svelte-preprocess (https://github.com/sveltejs/svelte/pull/6194),
+	// but with new TypeScript compilation modes strictly separating types it's not necessary anymore
+	errorMode: removed(
+		'The errorMode option has been removed. If you are using this through svelte-preprocess with TypeScript, ' +
+			'use the https://www.typescriptlang.org/tsconfig#verbatimModuleSyntax setting instead'
+	),
 
-			hmr: boolean(false),
+	varsReport: removed(
+		'The vars option has been removed. If you are using this through svelte-preprocess with TypeScript, ' +
+			'use the https://www.typescriptlang.org/tsconfig#verbatimModuleSyntax setting instead'
+	)
+};
 
-			sourcemap: validator(undefined, (input) => {
-				// Source maps can take on a variety of values, including string, JSON, map objects from magic-string and source-map,
-				// so there's no good way to check type validity here
-				return input;
-			}),
+export const validate_module_options =
+	/** @type {Validator<ModuleCompileOptions, ValidatedModuleCompileOptions>} */ (
+		object({
+			...common_options,
+			...Object.fromEntries(Object.keys(component_options).map((key) => [key, () => {}]))
+		})
+	);
 
-			enableSourcemap: warn_removed(w.options_removed_enable_sourcemap),
-			hydratable: warn_removed(w.options_removed_hydratable),
-			format: removed(
-				'The format option has been removed in Svelte 4, the compiler only outputs ESM now. Remove "format" from your compiler options. ' +
-					'If you did not set this yourself, bump the version of your bundler plugin (vite-plugin-svelte/rollup-plugin-svelte/svelte-loader)'
-			),
-			tag: removed(
-				'The tag option has been removed in Svelte 5. Use `<svelte:options customElement="tag-name" />` inside the component instead. ' +
-					'If that does not solve your use case, please open an issue on GitHub with details.'
-			),
-			sveltePath: removed(
-				'The sveltePath option has been removed in Svelte 5. ' +
-					'If this option was crucial for you, please open an issue on GitHub with your use case.'
-			),
-			// These two were primarily created for svelte-preprocess (https://github.com/sveltejs/svelte/pull/6194),
-			// but with new TypeScript compilation modes strictly separating types it's not necessary anymore
-			errorMode: removed(
-				'The errorMode option has been removed. If you are using this through svelte-preprocess with TypeScript, ' +
-					'use the https://www.typescriptlang.org/tsconfig#verbatimModuleSyntax setting instead'
-			),
-			varsReport: removed(
-				'The vars option has been removed. If you are using this through svelte-preprocess with TypeScript, ' +
-					'use the https://www.typescriptlang.org/tsconfig#verbatimModuleSyntax setting instead'
-			)
+export const validate_component_options =
+	/** @type {Validator<CompileOptions, ValidatedCompileOptions>} */ (
+		object({
+			...common_options,
+			...component_options
 		})
 	);
 
diff --git a/packages/svelte/src/version.js b/packages/svelte/src/version.js
index d2992a3dcd8c..e83ba6fb3018 100644
--- a/packages/svelte/src/version.js
+++ b/packages/svelte/src/version.js
@@ -4,5 +4,5 @@
  * The current version, as set in package.json.
  * @type {string}
  */
-export const VERSION = '5.36.17';
+export const VERSION = '5.37.0';
 export const PUBLIC_VERSION = '5';
diff --git a/packages/svelte/tests/runtime-runes/samples/props-default-value-function/_config.js b/packages/svelte/tests/runtime-runes/samples/props-default-value-function/_config.js
new file mode 100644
index 000000000000..6b281f04f0ee
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/props-default-value-function/_config.js
@@ -0,0 +1,15 @@
+import { flushSync } from 'svelte';
+import { test } from '../../test';
+
+export default test({
+	mode: ['client'],
+
+	test({ assert, target }) {
+		const btn = target.querySelector('button');
+
+		assert.htmlEqual(target.innerHTML, `<button>inc</button> Inner: 0 Inner: 0`);
+		btn?.click();
+		flushSync();
+		assert.htmlEqual(target.innerHTML, `<button>inc</button> Inner: 1 Inner: 1`);
+	}
+});
diff --git a/packages/svelte/tests/runtime-runes/samples/props-default-value-function/inner.svelte b/packages/svelte/tests/runtime-runes/samples/props-default-value-function/inner.svelte
new file mode 100644
index 000000000000..6bde0a15a87c
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/props-default-value-function/inner.svelte
@@ -0,0 +1,4 @@
+<script>
+	let { getter } = $props()
+</script>
+Inner: {getter()}
diff --git a/packages/svelte/tests/runtime-runes/samples/props-default-value-function/main.svelte b/packages/svelte/tests/runtime-runes/samples/props-default-value-function/main.svelte
new file mode 100644
index 000000000000..2cb2f67b82f7
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/props-default-value-function/main.svelte
@@ -0,0 +1,14 @@
+<script>
+	import Wrapper1 from "./wrapper.svelte"
+	import Wrapper2 from "./wrapper2.svelte"
+	let count = $state(0);
+
+	let getter = $derived.by(() => {
+		const copy = count;
+		return () => copy;
+	});
+</script>
+
+<button onclick={() => count++}>inc</button>
+<Wrapper1 {getter}/>
+<Wrapper2 {getter}/>
\ No newline at end of file
diff --git a/packages/svelte/tests/runtime-runes/samples/props-default-value-function/wrapper.svelte b/packages/svelte/tests/runtime-runes/samples/props-default-value-function/wrapper.svelte
new file mode 100644
index 000000000000..525494ddfbf1
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/props-default-value-function/wrapper.svelte
@@ -0,0 +1,7 @@
+<script >
+  import Inner from "./inner.svelte";
+
+  const { getter = () => -1} = $props();
+</script>
+
+<Inner {getter} />
diff --git a/packages/svelte/tests/runtime-runes/samples/props-default-value-function/wrapper2.svelte b/packages/svelte/tests/runtime-runes/samples/props-default-value-function/wrapper2.svelte
new file mode 100644
index 000000000000..9498f432d8ce
--- /dev/null
+++ b/packages/svelte/tests/runtime-runes/samples/props-default-value-function/wrapper2.svelte
@@ -0,0 +1,7 @@
+<script >
+  import Inner from "./inner.svelte";
+
+  const { getter = $bindable(() => -1)} = $props();
+</script>
+
+<Inner {getter} />