diff --git a/packages/react-aria-components/src/SharedElementTransition.tsx b/packages/react-aria-components/src/SharedElementTransition.tsx
index f4b45d73081..e6c0a9f62b2 100644
--- a/packages/react-aria-components/src/SharedElementTransition.tsx
+++ b/packages/react-aria-components/src/SharedElementTransition.tsx
@@ -96,6 +96,7 @@ export const SharedElement = forwardRef(function SharedElement(
     let scope = scopeRef.current;
     let prevSnapshot = scope[name];
     let frame: number | null = null;
+    let restoreStyles: (() => void) | null = null;
 
     if (element && isVisible && prevSnapshot) {
       // Element is transitioning from a previous instance.
@@ -125,11 +126,14 @@ export const SharedElement = forwardRef(function SharedElement(
       }
 
       // Remove overrides after one frame to animate to the current values.
-      frame = requestAnimationFrame(() => {
-        frame = null;
+      restoreStyles = () => {
         for (let [property, value] of values) {
           element.style[property] = value;
         }
+      };
+      frame = requestAnimationFrame(() => {
+        frame = null;
+        restoreStyles?.();
       });
 
       delete scope[name];
@@ -160,6 +164,7 @@ export const SharedElement = forwardRef(function SharedElement(
     return () => {
       if (frame != null) {
         cancelAnimationFrame(frame);
+        restoreStyles?.();
       }
 
       if (element && element.isConnected && !element.hasAttribute('data-exiting')) {
diff --git a/packages/react-aria-components/stories/Tabs.stories.tsx b/packages/react-aria-components/stories/Tabs.stories.tsx
index 55c7930d2ad..2bf4173a4c7 100644
--- a/packages/react-aria-components/stories/Tabs.stories.tsx
+++ b/packages/react-aria-components/stories/Tabs.stories.tsx
@@ -15,8 +15,9 @@ import {Button} from '../src/Button';
 import {Meta, StoryFn} from '@storybook/react';
 import {Orientation} from '@react-types/shared';
 import {OverlayArrow} from '../src/OverlayArrow';
-import React, {useState} from 'react';
+import React, {StrictMode, useState} from 'react';
 import {RouterProvider} from 'react-aria/private/utils/openLink';
+import {SelectionIndicator} from '../src/SelectionIndicator';
 import {Tab, TabList, TabPanel, TabProps, Tabs} from '../src/Tabs';
 import {Tooltip, TooltipTrigger} from '../src/Tooltip';
 import './styles.css';
@@ -28,6 +29,34 @@ export default {
 
 export type TabsStory = StoryFn<typeof Tabs>;
 
+export const AnimatedSelectionIndicator: TabsStory = () => (
+  <StrictMode>
+    <Tabs defaultSelectedKey="settings">
+      <TabList aria-label="Sections" style={{display: 'flex', gap: 12}}>
+        {['overview', 'activity', 'settings'].map(key => (
+          <Tab key={key} id={key} style={{position: 'relative', padding: '12px 20px'}}>
+            <SelectionIndicator
+              style={{
+                position: 'absolute',
+                inset: 0,
+                border: '2px solid currentColor',
+                borderRadius: 4,
+                pointerEvents: 'none',
+                transitionProperty: 'translate, width, height',
+                transitionDuration: '200ms'
+              }}
+            />
+            {key}
+          </Tab>
+        ))}
+      </TabList>
+      <TabPanel id="overview">Overview</TabPanel>
+      <TabPanel id="activity">Activity</TabPanel>
+      <TabPanel id="settings">Settings</TabPanel>
+    </Tabs>
+  </StrictMode>
+);
+
 export const TabsExample: TabsStory = () => {
   let [url, setUrl] = useState('/FoR');
 
diff --git a/packages/react-aria-components/test/Tabs.browser.test.tsx b/packages/react-aria-components/test/Tabs.browser.test.tsx
index 8a778b0f008..9b423feb01e 100644
--- a/packages/react-aria-components/test/Tabs.browser.test.tsx
+++ b/packages/react-aria-components/test/Tabs.browser.test.tsx
@@ -11,8 +11,11 @@
  */
 
 import {expect, it} from 'vitest';
-import React from 'react';
+import {hydrateRoot} from 'react-dom/client';
+import React, {StrictMode, useEffect} from 'react';
 import {render} from 'vitest-browser-react';
+import {renderToString} from 'react-dom/server.browser';
+import {SelectionIndicator} from '../src/SelectionIndicator';
 import {Tab, TabList, TabPanel, Tabs} from '../src/Tabs';
 import {User} from '@react-aria/test-utils';
 
@@ -31,6 +34,82 @@ function TabsExample() {
   );
 }
 
+it.each([
+  {strict: false, selectedKey: 'one'},
+  {strict: false, selectedKey: 'five'},
+  {strict: true, selectedKey: 'one'},
+  {strict: true, selectedKey: 'five'}
+])(
+  'aligns the indicator after hydration (strict: $strict, selected: $selectedKey)',
+  async ({strict, selectedKey}) => {
+    let hydrated = false;
+    function HydrationMarker() {
+      useEffect(() => {
+        hydrated = true;
+      }, []);
+      return null;
+    }
+    let keys = ['one', 'two', 'three', 'four', 'five'];
+    let tree = (
+      <Tabs defaultSelectedKey={selectedKey}>
+        <HydrationMarker />
+        <TabList aria-label="Hydrated tabs" style={{display: 'flex', gap: 12}}>
+          {keys.map(key => (
+            <Tab key={key} id={key} style={{position: 'relative', padding: '12px 20px'}}>
+              <SelectionIndicator
+                style={{
+                  position: 'absolute',
+                  inset: 0,
+                  transitionProperty: 'translate, width, height',
+                  transitionDuration: '200ms'
+                }}
+              />
+              {key}
+            </Tab>
+          ))}
+        </TabList>
+        {keys.map(key => (
+          <TabPanel key={key} id={key}>
+            {key}
+          </TabPanel>
+        ))}
+      </Tabs>
+    );
+    if (strict) {
+      tree = <StrictMode>{tree}</StrictMode>;
+    }
+    let container = document.createElement('div');
+    document.body.appendChild(container);
+    container.innerHTML = renderToString(tree);
+    let root: ReturnType<typeof hydrateRoot> | undefined;
+    try {
+      root = hydrateRoot(container, tree);
+      await expect.poll(() => hydrated).toBe(true);
+      await expect
+        .poll(() => container.querySelector('[role="tab"][aria-selected="true"]')?.textContent)
+        .toBe(selectedKey);
+      let selectedTab = container.querySelector(
+        '[role="tab"][aria-selected="true"]'
+      ) as HTMLElement;
+      let indicator = selectedTab.querySelector('.react-aria-SelectionIndicator') as HTMLElement;
+      expect(selectedTab.textContent).toBe(selectedKey);
+      await expect.poll(() => indicator.style.translate).toBe('');
+      await expect
+        .poll(() =>
+          Math.abs(
+            indicator.getBoundingClientRect().left - selectedTab.getBoundingClientRect().left
+          )
+        )
+        .toBeLessThan(1);
+      expect(indicator.style.width).toBe('');
+      expect(indicator.style.height).toBe('');
+    } finally {
+      root?.unmount();
+      container.remove();
+    }
+  }
+);
+
 it.each`
   interactionType
   ${'mouse'}