diff --git a/packages/svelte/jest.config.js b/packages/svelte/jest.config.js
index cd02790794a7..63637952d9d6 100644
--- a/packages/svelte/jest.config.js
+++ b/packages/svelte/jest.config.js
@@ -3,4 +3,8 @@ const baseConfig = require('../../jest/jest.config.js');
 module.exports = {
   ...baseConfig,
   testEnvironment: 'jsdom',
+  transform: {
+    '^.+\\.svelte$': 'svelte-jester',
+    ...baseConfig.transform,
+  },
 };
diff --git a/packages/svelte/package.json b/packages/svelte/package.json
index 0247f3ecf233..fba475b0aa6a 100644
--- a/packages/svelte/package.json
+++ b/packages/svelte/package.json
@@ -26,7 +26,9 @@
     "svelte": "3.x"
   },
   "devDependencies": {
-    "svelte": "3.49.0"
+    "@testing-library/svelte": "^3.2.1",
+    "svelte": "3.49.0",
+    "svelte-jester": "^2.3.2"
   },
   "scripts": {
     "build": "run-p build:rollup build:types",
diff --git a/packages/svelte/test/components/Dummy.svelte b/packages/svelte/test/components/Dummy.svelte
new file mode 100644
index 000000000000..ef814473f6cf
--- /dev/null
+++ b/packages/svelte/test/components/Dummy.svelte
@@ -0,0 +1,11 @@
+<script>
+  import { onMount, beforeUpdate, afterUpdate } from 'svelte';
+  import * as Sentry from '../../src/index';
+
+  // Pass options to trackComponent as props of this component
+  export let options;
+
+  Sentry.trackComponent(options);
+</script>
+
+<h1>Hi, I'm a dummy component for testing</h1>
diff --git a/packages/svelte/test/performance.test.ts b/packages/svelte/test/performance.test.ts
new file mode 100644
index 000000000000..e5ecae861a41
--- /dev/null
+++ b/packages/svelte/test/performance.test.ts
@@ -0,0 +1,193 @@
+import { Scope } from '@sentry/hub';
+import { act, render } from '@testing-library/svelte';
+
+// linter doesn't like Svelte component imports
+// eslint-disable-next-line import/no-unresolved
+import DummyComponent from './components/Dummy.svelte';
+
+let returnUndefinedTransaction = false;
+
+const testTransaction: { spans: any[]; startChild: jest.Mock; finish: jest.Mock } = {
+  spans: [],
+  startChild: jest.fn(),
+  finish: jest.fn(),
+};
+const testUpdateSpan = { finish: jest.fn() };
+const testInitSpan: any = {
+  transaction: testTransaction,
+  finish: jest.fn(),
+  startChild: jest.fn(),
+};
+
+jest.mock('@sentry/hub', () => {
+  const original = jest.requireActual('@sentry/hub');
+  return {
+    ...original,
+    getCurrentHub(): {
+      getScope(): Scope;
+    } {
+      return {
+        getScope(): any {
+          return {
+            getTransaction: () => {
+              return returnUndefinedTransaction ? undefined : testTransaction;
+            },
+          };
+        },
+      };
+    },
+  };
+});
+
+describe('Sentry.trackComponent()', () => {
+  beforeEach(() => {
+    jest.resetAllMocks();
+    testTransaction.spans = [];
+
+    testTransaction.startChild.mockImplementation(spanCtx => {
+      testTransaction.spans.push(spanCtx);
+      return testInitSpan;
+    });
+
+    testInitSpan.startChild.mockImplementation((spanCtx: any) => {
+      testTransaction.spans.push(spanCtx);
+      return testUpdateSpan;
+    });
+
+    testInitSpan.finish = jest.fn();
+    testInitSpan.endTimestamp = undefined;
+    returnUndefinedTransaction = false;
+  });
+
+  it('creates nested init and update spans on component initialization', () => {
+    render(DummyComponent, { props: { options: {} } });
+
+    expect(testTransaction.startChild).toHaveBeenCalledWith({
+      description: '<Dummy>',
+      op: 'ui.svelte.init',
+    });
+
+    expect(testInitSpan.startChild).toHaveBeenCalledWith({
+      description: '<Dummy>',
+      op: 'ui.svelte.update',
+    });
+
+    expect(testInitSpan.finish).toHaveBeenCalledTimes(1);
+    expect(testUpdateSpan.finish).toHaveBeenCalledTimes(1);
+    expect(testTransaction.spans.length).toEqual(2);
+  });
+
+  it('creates an update span, when the component is updated', async () => {
+    // Make the finish() function actually end the initSpan
+    testInitSpan.finish.mockImplementation(() => {
+      testInitSpan.endTimestamp = new Date().getTime();
+    });
+
+    // first we create the component
+    const { component } = render(DummyComponent, { props: { options: {} } });
+
+    // then trigger an update
+    // (just changing the trackUpdates prop so that we trigger an update. #
+    //  The value doesn't do anything here)
+    await act(() => component.$set({ options: { trackUpdates: true } }));
+
+    // once for init (unimportant here), once for starting the update span
+    expect(testTransaction.startChild).toHaveBeenCalledTimes(2);
+    expect(testTransaction.startChild).toHaveBeenLastCalledWith({
+      description: '<Dummy>',
+      op: 'ui.svelte.update',
+    });
+    expect(testTransaction.spans.length).toEqual(3);
+  });
+
+  it('only creates init spans if trackUpdates is deactivated', () => {
+    render(DummyComponent, { props: { options: { trackUpdates: false } } });
+
+    expect(testTransaction.startChild).toHaveBeenCalledWith({
+      description: '<Dummy>',
+      op: 'ui.svelte.init',
+    });
+
+    expect(testInitSpan.startChild).not.toHaveBeenCalled();
+
+    expect(testInitSpan.finish).toHaveBeenCalledTimes(1);
+    expect(testTransaction.spans.length).toEqual(1);
+  });
+
+  it('only creates update spans if trackInit is deactivated', () => {
+    render(DummyComponent, { props: { options: { trackInit: false } } });
+
+    expect(testTransaction.startChild).toHaveBeenCalledWith({
+      description: '<Dummy>',
+      op: 'ui.svelte.update',
+    });
+
+    expect(testInitSpan.startChild).not.toHaveBeenCalled();
+
+    expect(testInitSpan.finish).toHaveBeenCalledTimes(1);
+    expect(testTransaction.spans.length).toEqual(1);
+  });
+
+  it('creates no spans if trackInit and trackUpdates are deactivated', () => {
+    render(DummyComponent, { props: { options: { trackInit: false, trackUpdates: false } } });
+
+    expect(testTransaction.startChild).not.toHaveBeenCalled();
+    expect(testInitSpan.startChild).not.toHaveBeenCalled();
+    expect(testTransaction.spans.length).toEqual(0);
+  });
+
+  it('sets a custom component name as a span description if `componentName` is provided', async () => {
+    render(DummyComponent, {
+      props: { options: { componentName: 'CustomComponentName' } },
+    });
+
+    expect(testTransaction.startChild).toHaveBeenCalledWith({
+      description: '<CustomComponentName>',
+      op: 'ui.svelte.init',
+    });
+
+    expect(testInitSpan.startChild).toHaveBeenCalledWith({
+      description: '<CustomComponentName>',
+      op: 'ui.svelte.update',
+    });
+
+    expect(testInitSpan.finish).toHaveBeenCalledTimes(1);
+    expect(testUpdateSpan.finish).toHaveBeenCalledTimes(1);
+    expect(testTransaction.spans.length).toEqual(2);
+  });
+
+  it("doesn't do anything, if there's no ongoing transaction", async () => {
+    returnUndefinedTransaction = true;
+
+    render(DummyComponent, {
+      props: { options: { componentName: 'CustomComponentName' } },
+    });
+
+    expect(testInitSpan.finish).toHaveBeenCalledTimes(0);
+    expect(testUpdateSpan.finish).toHaveBeenCalledTimes(0);
+    expect(testTransaction.spans.length).toEqual(0);
+  });
+
+  it("doesn't record update spans, if there's no ongoing transaction at that time", async () => {
+    // Make the finish() function actually end the initSpan
+    testInitSpan.finish.mockImplementation(() => {
+      testInitSpan.endTimestamp = new Date().getTime();
+    });
+
+    // first we create the component
+    const { component } = render(DummyComponent, { props: { options: {} } });
+
+    // then clear the current transaction and trigger an update
+    returnUndefinedTransaction = true;
+    await act(() => component.$set({ options: { trackUpdates: true } }));
+
+    // we should only record the init spans (including the initial update)
+    // but not the second update
+    expect(testTransaction.startChild).toHaveBeenCalledTimes(1);
+    expect(testTransaction.startChild).toHaveBeenLastCalledWith({
+      description: '<Dummy>',
+      op: 'ui.svelte.init',
+    });
+    expect(testTransaction.spans.length).toEqual(2);
+  });
+});
diff --git a/scripts/test.ts b/scripts/test.ts
index 582a67732b55..a4904abe50f6 100644
--- a/scripts/test.ts
+++ b/scripts/test.ts
@@ -17,6 +17,7 @@ const NODE_8_SKIP_TESTS_PACKAGES = [
   '@sentry/nextjs',
   '@sentry/angular',
   '@sentry/remix',
+  '@sentry/svelte', // svelte testing library requires Node >= 10
 ];
 
 // We have to downgrade some of our dependencies in order to run tests in Node 8 and 10.
diff --git a/yarn.lock b/yarn.lock
index 7f25827379a4..544d08cb0d27 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -4979,6 +4979,20 @@
   dependencies:
     defer-to-connect "^1.0.1"
 
+"@testing-library/dom@^8.1.0":
+  version "8.17.1"
+  resolved "https://registry.yarnpkg.com/@testing-library/dom/-/dom-8.17.1.tgz#2d7af4ff6dad8d837630fecd08835aee08320ad7"
+  integrity sha512-KnH2MnJUzmFNPW6RIKfd+zf2Wue8mEKX0M3cpX6aKl5ZXrJM1/c/Pc8c2xDNYQCnJO48Sm5ITbMXgqTr3h4jxQ==
+  dependencies:
+    "@babel/code-frame" "^7.10.4"
+    "@babel/runtime" "^7.12.5"
+    "@types/aria-query" "^4.2.0"
+    aria-query "^5.0.0"
+    chalk "^4.1.0"
+    dom-accessibility-api "^0.5.9"
+    lz-string "^1.4.4"
+    pretty-format "^27.0.2"
+
 "@testing-library/dom@^8.5.0":
   version "8.12.0"
   resolved "https://registry.yarnpkg.com/@testing-library/dom/-/dom-8.12.0.tgz#fef5e545533fb084175dda6509ee71d7d2f72e23"
@@ -5013,6 +5027,13 @@
     "@testing-library/dom" "^8.5.0"
     "@types/react-dom" "*"
 
+"@testing-library/svelte@^3.2.1":
+  version "3.2.1"
+  resolved "https://registry.yarnpkg.com/@testing-library/svelte/-/svelte-3.2.1.tgz#c63bd2b7df7907f26e91b4ce0c50c77d8e7c4745"
+  integrity sha512-qP5nMAx78zt+a3y9Sws9BNQYP30cOQ/LXDYuAj7wNtw86b7AtB7TFAz6/Av9hFsW3IJHPBBIGff6utVNyq+F1g==
+  dependencies:
+    "@testing-library/dom" "^8.1.0"
+
 "@tootallnate/once@1":
   version "1.1.2"
   resolved "https://registry.yarnpkg.com/@tootallnate/once/-/once-1.1.2.tgz#ccb91445360179a04e7fe6aff78c00ffc1eeaf82"
@@ -24945,6 +24966,11 @@ supports-preserve-symlinks-flag@^1.0.0:
   resolved "https://registry.yarnpkg.com/supports-preserve-symlinks-flag/-/supports-preserve-symlinks-flag-1.0.0.tgz#6eda4bd344a3c94aea376d4cc31bc77311039e09"
   integrity sha512-ot0WnXS9fgdkgIcePe6RHNk1WA8+muPa6cSjeR3V8K27q9BB1rTE3R1p7Hv0z1ZyAc8s6Vvv8DIyWf681MAt0w==
 
+svelte-jester@^2.3.2:
+  version "2.3.2"
+  resolved "https://registry.yarnpkg.com/svelte-jester/-/svelte-jester-2.3.2.tgz#9eb818da30807bbcc940b6130d15b2c34408d64f"
+  integrity sha512-JtxSz4FWAaCRBXbPsh4LcDs4Ua7zdXgLC0TZvT1R56hRV0dymmNP+abw67DTPF7sQPyNxWsOKd0Sl7Q8SnP8kg==
+
 svelte@3.49.0:
   version "3.49.0"
   resolved "https://registry.yarnpkg.com/svelte/-/svelte-3.49.0.tgz#5baee3c672306de1070c3b7888fc2204e36a4029"