diff --git a/compat/src/hooks.js b/compat/src/hooks.js
index d0aeeb7d7c..4a83e4a0b0 100644
--- a/compat/src/hooks.js
+++ b/compat/src/hooks.js
@@ -1,12 +1,36 @@
 import { useState, useLayoutEffect, useEffect } from 'preact/hooks';
+import { options as _options } from 'preact';
+
+const MODE_HYDRATE = 1 << 5;
+
+/** @type {boolean} */
+let hydrating;
+// Cast to use internal Options type
+const options = /** @type {import('../../src/internal').Options} */ (_options);
+let oldBeforeRender = options._render;
+
+/** @type {(vnode: import('./internal').VNode) => void} */
+options._render = _vnode => {
+	hydrating = !!(_vnode._flags & MODE_HYDRATE);
+	if (oldBeforeRender) oldBeforeRender(_vnode);
+};
 
 /**
  * This is taken from https://github.com/facebook/react/blob/main/packages/use-sync-external-store/src/useSyncExternalStoreShimClient.js#L84
  * on a high level this cuts out the warnings, ... and attempts a smaller implementation
  * @typedef {{ _value: any; _getSnapshot: () => any }} Store
  */
-export function useSyncExternalStore(subscribe, getSnapshot) {
-	const value = getSnapshot();
+export function useSyncExternalStore(
+	subscribe,
+	getSnapshot,
+	getServerSnapshot
+) {
+	const value =
+		typeof window === 'undefined' || hydrating
+			? getServerSnapshot
+				? getServerSnapshot()
+				: missingGetServerSnapshot()
+			: getSnapshot();
 
 	/**
 	 * @typedef {{ _instance: Store }} StoreRef
@@ -52,6 +76,12 @@ function didSnapshotChange(inst) {
 	}
 }
 
+function missingGetServerSnapshot() {
+	throw new Error(
+		'Missing "getServerSnapshot" parameter for "useSyncExternalStore", this is required for server rendering & hydration of server-rendered content'
+	);
+}
+
 export function startTransition(cb) {
 	cb();
 }
diff --git a/compat/src/index.d.ts b/compat/src/index.d.ts
index eb3fa7bbdb..d0caf40eb3 100644
--- a/compat/src/index.d.ts
+++ b/compat/src/index.d.ts
@@ -130,7 +130,8 @@ declare namespace React {
 	export function useDeferredValue<T = any>(val: T): T;
 	export function useSyncExternalStore<T>(
 		subscribe: (flush: () => void) => () => void,
-		getSnapshot: () => T
+		getSnapshot: () => T,
+		getServerSnapshot?: () => T
 	): T;
 
 	// Preact Defaults
diff --git a/compat/test/browser/useSyncExternalStore.test.jsx b/compat/test/browser/useSyncExternalStore.test.jsx
index 18839f36a0..2ff80efd47 100644
--- a/compat/test/browser/useSyncExternalStore.test.jsx
+++ b/compat/test/browser/useSyncExternalStore.test.jsx
@@ -3,6 +3,7 @@ import React, {
 	Fragment,
 	useSyncExternalStore,
 	render,
+	hydrate,
 	useState,
 	useCallback,
 	useEffect,
@@ -781,6 +782,46 @@ describe('useSyncExternalStore', () => {
 			expect(container.textContent).to.equal('NaN');
 		});
 
+		it('basic server hydration', async () => {
+			const store = createExternalStore('client');
+
+			const ref = React.createRef();
+			function App() {
+				const text = useSyncExternalStore(
+					store.subscribe,
+					store.getState,
+					() => 'server'
+				);
+				useEffect(() => {
+					Scheduler.log('Passive effect: ' + text);
+				}, [text]);
+				return (
+					<div ref={ref}>
+						<Text text={text} />
+					</div>
+				);
+			}
+
+			const container = document.createElement('div');
+			container.innerHTML = '<div>server</div>';
+			const serverRenderedDiv = container.getElementsByTagName('div')[0];
+
+			await act(() => {
+				hydrate(<App />, container);
+			});
+			assertLog([
+				// First it hydrates the server rendered HTML
+				'server',
+				'Passive effect: server',
+				// Then in a second paint, it re-renders with the client state
+				'client',
+				'Passive effect: client'
+			]);
+
+			expect(container.textContent).toEqual('client');
+			expect(ref.current).toEqual(serverRenderedDiv);
+		});
+
 		it('regression test for facebook/react#23150', async () => {
 			const store = createExternalStore('Initial');