diff --git a/plugins/plugin-svelte/README.md b/plugins/plugin-svelte/README.md
index 8488f0f0d3..d55cedaf6f 100644
--- a/plugins/plugin-svelte/README.md
+++ b/plugins/plugin-svelte/README.md
@@ -15,6 +15,31 @@ npm install --save-dev @snowpack/plugin-svelte
 }
 ```
 
-#### Plugin Options
+## Plugin Options
 
 This plugin also supports all Svelte compiler options. See [here](https://svelte.dev/docs#svelte_compile) for a list of supported options.
+
+### HMR Options
+
+You can pass Svelte HMR specific options through the `hot` option of the plugin. Here are the available options and their defaults:
+
+```js
+{
+  "plugins": [
+    ["@snowpack/plugin-svelte", {
+      hot: {
+        // don't preserve local state
+        noPreserveState: false,
+        // escape hatch from preserve local state -- if this string appears anywhere
+        // in the component's code, then state won't be preserved for this update
+        noPreserveStateKey: '@!hmr',
+        // don't reload on fatal error
+        noReload: false,
+        // try to recover after runtime errors during component init
+        optimistic: false,
+      },
+    }]
+  ]
+}
+```
+
diff --git a/plugins/plugin-svelte/package.json b/plugins/plugin-svelte/package.json
index fbdf1bddaf..6a86eb2d67 100644
--- a/plugins/plugin-svelte/package.json
+++ b/plugins/plugin-svelte/package.json
@@ -17,7 +17,8 @@
   },
   "gitHead": "a01616bb0787d56cd782f94cecf2daa12c7594e4",
   "dependencies": {
-    "rollup-plugin-svelte": "^5.2.3"
+    "rollup-plugin-svelte": "^5.2.3",
+    "svelte-hmr": "^0.11.2-1"
   },
   "devDependencies": {
     "node-sass": "^4.14.1",
diff --git a/plugins/plugin-svelte/plugin.js b/plugins/plugin-svelte/plugin.js
index 5ced6a476a..fbcb532584 100644
--- a/plugins/plugin-svelte/plugin.js
+++ b/plugins/plugin-svelte/plugin.js
@@ -2,8 +2,14 @@ const svelte = require('svelte/compiler');
 const svelteRollupPlugin = require('rollup-plugin-svelte');
 const fs = require('fs');
 const path = require('path');
+const {createMakeHot} = require('svelte-hmr');
 
-module.exports = function plugin(snowpackConfig, pluginOptions = {}) {
+let makeHot = (...args) => {
+  makeHot = createMakeHot({walk: svelte.walk});
+  return makeHot(...args)
+}
+
+module.exports = function plugin(snowpackConfig, {hot: hotOptions, ...sveltePluginOptions} = {}) {
   const isDev = process.env.NODE_ENV !== 'production';
 
   // Support importing Svelte files when you install dependencies.
@@ -15,7 +21,7 @@ module.exports = function plugin(snowpackConfig, pluginOptions = {}) {
   let preprocessOptions;
   // Note(drew): __config is for internal testing use; maybe we should make this public at some point?
   const userSvelteConfigLoc =
-    pluginOptions.__config || path.join(process.cwd(), 'svelte.config.js');
+    sveltePluginOptions.__config || path.join(process.cwd(), 'svelte.config.js');
   if (fs.existsSync(userSvelteConfigLoc)) {
     const userSvelteConfig = require(userSvelteConfigLoc);
     const {preprocess, ..._svelteOptions} = userSvelteConfig;
@@ -27,7 +33,7 @@ module.exports = function plugin(snowpackConfig, pluginOptions = {}) {
     dev: isDev,
     css: false,
     ...svelteOptions,
-    ...pluginOptions,
+    ...sveltePluginOptions,
   };
 
   return {
@@ -36,9 +42,13 @@ module.exports = function plugin(snowpackConfig, pluginOptions = {}) {
       input: ['.svelte'],
       output: ['.js', '.css'],
     },
-    knownEntrypoints: ['svelte/internal'],
-    async load({filePath, isSSR}) {
-      let codeToCompile = fs.readFileSync(filePath, 'utf-8');
+    knownEntrypoints: [
+      'svelte/internal',
+      'svelte-hmr/runtime/hot-api-esm.js',
+      'svelte-hmr/runtime/proxy-adapter-dom.js',
+    ],
+    async load({filePath, isHmrEnabled, isSSR}) {
+      let codeToCompile = await fs.promises.readFile(filePath, 'utf-8');
       // PRE-PROCESS
       if (preprocessOptions) {
         codeToCompile = (
@@ -48,12 +58,16 @@ module.exports = function plugin(snowpackConfig, pluginOptions = {}) {
         ).code;
       }
 
-      const {js, css} = svelte.compile(codeToCompile, {
+      const compileOptions = {
         generate: isSSR ? 'ssr' : 'dom',
         ...svelteOptions, // Note(drew) should take precedence over generate above
         outputFilename: filePath,
         filename: filePath,
-      });
+      };
+
+      const compiled = svelte.compile(codeToCompile, compileOptions);
+
+      const {js, css} = compiled;
 
       const {sourceMaps} = snowpackConfig.buildOptions;
       const output = {
@@ -62,6 +76,22 @@ module.exports = function plugin(snowpackConfig, pluginOptions = {}) {
           map: sourceMaps ? js.map : undefined,
         },
       };
+
+      if (isHmrEnabled && !isSSR) {
+        output['.js'].code = makeHot({
+          id: filePath,
+          compiledCode: compiled.js.code,
+          hotOptions: {
+            ...hotOptions,
+            absoluteImports: false,
+            injectCss: true,
+          },
+          compiled,
+          originalCode: codeToCompile,
+          compileOptions,
+        });
+      }
+
       if (!svelteOptions.css && css && css.code) {
         output['.css'] = {
           code: css.code,
diff --git a/yarn.lock b/yarn.lock
index c3b93776f0..5ced299c0d 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -13060,6 +13060,11 @@ svelte-check@^1.0.0:
     vscode-languageserver-types "3.15.1"
     vscode-uri "2.1.2"
 
+svelte-hmr@^0.11.2-1:
+  version "0.11.2-1"
+  resolved "https://registry.yarnpkg.com/svelte-hmr/-/svelte-hmr-0.11.2-1.tgz#ce1b481a2489697ccf7aa405bccae1421ce80011"
+  integrity sha512-VanuFg1OiMvLjs44jo8+qnZnKfQGfflNRf8hETUhOs28J5V4xsCgU2NJHy+3iTVgEX1+a41zIEIBgquh02o9bQ==
+
 svelte-language-server@*:
   version "0.10.133"
   resolved "https://registry.yarnpkg.com/svelte-language-server/-/svelte-language-server-0.10.133.tgz#e5d121a1a27090076e6c6c046b1aeeb45b5d0b93"