diff --git a/packages/react-dom/src/__tests__/ReactDOMFizzShellHydration-test.js b/packages/react-dom/src/__tests__/ReactDOMFizzShellHydration-test.js
index f4df63ca7a652..999fbd9f7190d 100644
--- a/packages/react-dom/src/__tests__/ReactDOMFizzShellHydration-test.js
+++ b/packages/react-dom/src/__tests__/ReactDOMFizzShellHydration-test.js
@@ -548,4 +548,79 @@ describe('ReactDOMFizzShellHydration', () => {
     ]);
     expect(container.textContent).toBe('Hello world');
   });
+
+  it(
+    'handles suspending while recovering from a hydration error (in the ' +
+      'shell, no Suspense boundary)',
+    async () => {
+      const useSyncExternalStore = React.useSyncExternalStore;
+
+      let isClient = false;
+
+      let resolve;
+      const clientPromise = new Promise(res => {
+        resolve = res;
+      });
+
+      function App() {
+        const state = useSyncExternalStore(
+          function subscribe() {
+            return () => {};
+          },
+          function getSnapshot() {
+            return 'Client';
+          },
+          function getServerSnapshot() {
+            const isHydrating = isClient;
+            if (isHydrating) {
+              // This triggers an error during hydration
+              throw new Error('Oops!');
+            }
+            return 'Server';
+          },
+        );
+
+        if (state === 'Client') {
+          return React.use(clientPromise);
+        }
+
+        return state;
+      }
+
+      // Server render
+      await serverAct(async () => {
+        const {pipe} = ReactDOMFizzServer.renderToPipeableStream(<App />);
+        pipe(writable);
+      });
+      assertLog([]);
+
+      expect(container.innerHTML).toBe('Server');
+
+      // During hydration, an error is thrown. React attempts to recover by
+      // switching to client render
+      isClient = true;
+      await clientAct(async () => {
+        ReactDOMClient.hydrateRoot(container, <App />, {
+          onRecoverableError(error) {
+            Scheduler.log('onRecoverableError: ' + error.message);
+            if (error.cause) {
+              Scheduler.log('Cause: ' + error.cause.message);
+            }
+          },
+        });
+      });
+      expect(container.innerHTML).toBe('Server'); // Still suspended
+      assertLog([]);
+
+      await clientAct(async () => {
+        resolve('Client');
+      });
+      assertLog([
+        'onRecoverableError: There was an error while hydrating but React was ' +
+          'able to recover by instead client rendering the entire root.',
+        'Cause: Oops!',
+      ]);
+      expect(container.innerHTML).toBe('Client');
+    },
+  );
 });
diff --git a/packages/react-reconciler/src/ReactFiberWorkLoop.js b/packages/react-reconciler/src/ReactFiberWorkLoop.js
index 17c1760755a7f..8b0c8729506cc 100644
--- a/packages/react-reconciler/src/ReactFiberWorkLoop.js
+++ b/packages/react-reconciler/src/ReactFiberWorkLoop.js
@@ -931,19 +931,32 @@ export function performConcurrentWorkOnRoot(
 
         // Check if something threw
         if (exitStatus === RootErrored) {
-          const originallyAttemptedLanes = lanes;
+          const lanesThatJustErrored = lanes;
           const errorRetryLanes = getLanesToRetrySynchronouslyOnError(
             root,
-            originallyAttemptedLanes,
+            lanesThatJustErrored,
           );
           if (errorRetryLanes !== NoLanes) {
             lanes = errorRetryLanes;
             exitStatus = recoverFromConcurrentError(
               root,
-              originallyAttemptedLanes,
+              lanesThatJustErrored,
               errorRetryLanes,
             );
             renderWasConcurrent = false;
+            // Need to check the exit status again.
+            if (exitStatus !== RootErrored) {
+              // The root did not error this time. Restart the exit algorithm
+              // from the beginning.
+              // TODO: Refactor the exit algorithm to be less confusing. Maybe
+              // more branches + recursion instead of a loop. I think the only
+              // thing that causes it to be a loop is the RootDidNotComplete
+              // check. If that's true, then we don't need a loop/recursion
+              // at all.
+              continue;
+            } else {
+              // The root errored yet again. Proceed to commit the tree.
+            }
           }
         }
         if (exitStatus === RootFatalErrored) {