diff --git a/.changeset/fine-planets-wash.md b/.changeset/fine-planets-wash.md
new file mode 100644
index 000000000..b0510e567
--- /dev/null
+++ b/.changeset/fine-planets-wash.md
@@ -0,0 +1,5 @@
+---
+'@tanstack/db': patch
+---
+
+Add support for delete-then-insert on the same record within a transaction, enabling undo workflows by either canceling both mutations (if data matches) or converting to an update.
diff --git a/packages/db/src/transactions.ts b/packages/db/src/transactions.ts
index 858772be2..42e9098e8 100644
--- a/packages/db/src/transactions.ts
+++ b/packages/db/src/transactions.ts
@@ -1,5 +1,6 @@
 import { createDeferred } from './deferred'
 import './duplicate-instance-check'
+import { deepEquals } from './utils'
 import {
   MissingMutationFunctionError,
   TransactionAlreadyCompletedRollbackError,
@@ -31,9 +32,10 @@ let sequenceNumber = 0
  * - (update, update) → update (replace with latest, union changes)
  * - (delete, delete) → delete (replace with latest)
  * - (insert, insert) → insert (replace with latest)
+ * - (delete, insert) → null if restoring original, otherwise update
  *
- * Note: (delete, update) and (delete, insert) should never occur as the collection
- * layer prevents operations on deleted items within the same transaction.
+ * Note: (delete, update) should never occur as the collection layer prevents
+ * update operations on deleted items within the same transaction.
  *
  * @param existing - The existing mutation in the transaction
  * @param incoming - The new mutation being applied
@@ -93,6 +95,33 @@ function mergePendingMutations<T extends object>(
       // Same type: replace with latest
       return incoming
 
+    case `delete-insert`: {
+      // Insert after delete: check if restoring to original state
+      if (deepEquals(existing.original, incoming.modified)) {
+        // Exact restore - cancel both mutations (like insert-delete)
+        return null
+      }
+      // Different data - treat as update from original to new state
+      // Compute actual diff for changes (only properties that differ)
+      // Cast existing.original to T since delete mutations always have the full original
+      const originalData = existing.original as T
+      const changes = Object.fromEntries(
+        Object.entries(incoming.modified).filter(
+          ([key, value]) =>
+            !deepEquals(originalData[key as keyof T], value as T[keyof T]),
+        ),
+      ) as Partial<T>
+      return {
+        ...incoming,
+        type: `update` as const,
+        original: existing.original,
+        modified: incoming.modified,
+        changes,
+        metadata: incoming.metadata ?? existing.metadata,
+        syncMetadata: { ...existing.syncMetadata, ...incoming.syncMetadata },
+      }
+    }
+
     default: {
       // Exhaustiveness check
       const _exhaustive: never = `${existing.type}-${incoming.type}` as never
diff --git a/packages/db/tests/transactions.test.ts b/packages/db/tests/transactions.test.ts
index a0c716052..ba949b147 100644
--- a/packages/db/tests/transactions.test.ts
+++ b/packages/db/tests/transactions.test.ts
@@ -554,6 +554,91 @@ describe(`Transactions`, () => {
     expect(transaction3.state).toBe(`failed`)
   })
 
+  describe(`delete-insert mutation merging`, () => {
+    it(`should cancel both mutations when re-inserting the same data after delete`, () => {
+      const transaction = createTransaction({
+        mutationFn: async () => Promise.resolve(),
+        autoCommit: false,
+      })
+      const collection = createCollection<{
+        id: number
+        value: string
+      }>({
+        id: `delete-insert-same`,
+        getKey: (item) => item.id,
+        sync: {
+          sync: () => {},
+        },
+      })
+
+      // Seed synced data
+      const originalItem = { id: 1, value: `original` }
+      collection._state.syncedData.set(1, originalItem)
+
+      // Delete then re-insert with same data
+      transaction.mutate(() => {
+        collection.delete(1)
+      })
+      expect(transaction.mutations).toHaveLength(1)
+      expect(transaction.mutations[0]!.type).toBe(`delete`)
+
+      transaction.mutate(() => {
+        collection.insert({ id: 1, value: `original` })
+      })
+
+      // Should cancel both mutations since data is identical
+      expect(transaction.mutations).toHaveLength(0)
+    })
+
+    it(`should convert to update when re-inserting different data after delete`, () => {
+      const transaction = createTransaction({
+        mutationFn: async () => Promise.resolve(),
+        autoCommit: false,
+      })
+      const collection = createCollection<{
+        id: number
+        value: string
+      }>({
+        id: `delete-insert-different`,
+        getKey: (item) => item.id,
+        sync: {
+          sync: () => {},
+        },
+      })
+
+      // Seed synced data
+      const originalItem = { id: 1, value: `original` }
+      collection._state.syncedData.set(1, originalItem)
+
+      // Delete then re-insert with different data
+      transaction.mutate(() => {
+        collection.delete(1)
+      })
+      expect(transaction.mutations).toHaveLength(1)
+      expect(transaction.mutations[0]!.type).toBe(`delete`)
+
+      transaction.mutate(() => {
+        collection.insert({ id: 1, value: `modified` })
+      })
+
+      // Should become an update mutation
+      expect(transaction.mutations).toHaveLength(1)
+      expect(transaction.mutations[0]!.type).toBe(`update`)
+      expect(transaction.mutations[0]!.original).toEqual({
+        id: 1,
+        value: `original`,
+      })
+      expect(transaction.mutations[0]!.modified).toEqual({
+        id: 1,
+        value: `modified`,
+      })
+      // Changes should only contain the properties that actually differ
+      expect(transaction.mutations[0]!.changes).toEqual({
+        value: `modified`,
+      })
+    })
+  })
+
   describe(`duplicate instance detection`, () => {
     it(`sets a global marker in dev mode when in browser top window`, () => {
       // The duplicate instance marker should be set when the module loads in dev mode