diff --git a/.changeset/healthy-walls-move.md b/.changeset/healthy-walls-move.md
new file mode 100644
index 000000000000..a5ff8ab9bb54
--- /dev/null
+++ b/.changeset/healthy-walls-move.md
@@ -0,0 +1,5 @@
+---
+'@sveltejs/kit': patch
+---
+
+add $app and $env to optimizeDeps.exclude so that libraries using these work correctly when prebundled
diff --git a/packages/kit/src/exports/vite/index.js b/packages/kit/src/exports/vite/index.js
index 3c947f258e12..179104d8c19b 100644
--- a/packages/kit/src/exports/vite/index.js
+++ b/packages/kit/src/exports/vite/index.js
@@ -274,7 +274,13 @@ function kit() {
 					external: ['@sveltejs/kit']
 				},
 				optimizeDeps: {
-					exclude: ['@sveltejs/kit']
+					exclude: [
+						'@sveltejs/kit',
+						// exclude kit features so that libraries using them work even when they are prebundled
+						// this does not affect app code, just handling of imported libraries that use $app or $env
+						'$app',
+						'$env'
+					]
 				}
 			};