diff --git a/packages/runtime-vapor/src/dom/hydration.ts b/packages/runtime-vapor/src/dom/hydration.ts
index d05090981..9a4d923f7 100644
--- a/packages/runtime-vapor/src/dom/hydration.ts
+++ b/packages/runtime-vapor/src/dom/hydration.ts
@@ -29,8 +29,9 @@ function performHydration<T>(
     locateHydrationNode = locateHydrationNodeImpl
     // optimize anchor cache lookup
     ;(Comment.prototype as any).$fe = undefined
+    ;(Node.prototype as any).$pns = undefined
     ;(Node.prototype as any).$idx = undefined
-    ;(Node.prototype as any).$auc = undefined
+    ;(Node.prototype as any).$uc = undefined
     ;(Node.prototype as any).$children = undefined
     isOptimized = true
   }
@@ -140,20 +141,28 @@ function locateHydrationNodeImpl(): void {
     const { prevDynamicCount, logicalChildren, appendAnchor } = hydrationState
     // prepend
     if (insertionAnchor === 0) {
+      // use prevDynamicCount as index to locate the hydration node
       node = logicalChildren[prevDynamicCount]
     }
     // insert
     else if (insertionAnchor instanceof Node) {
-      const usedCount = (insertionAnchor as ChildItem).$auc
+      // handling insertion anchors:
+      // 1. first encounter: use insertionAnchor itself as the hydration node
+      // 2. subsequent: use node following the insertionAnchor as the hydration node
+      // used count tracks how many times insertionAnchor has been used, ensuring
+      // consecutive insert operations locate the correct hydration node.
+      let { $idx, $uc: usedCount } = insertionAnchor as ChildItem
       if (usedCount !== undefined) {
-        node =
-          logicalChildren[(insertionAnchor as ChildItem).$idx + usedCount + 1]
-        ;(insertionAnchor as ChildItem).$auc = usedCount + 1
+        node = logicalChildren[$idx + usedCount + 1]
+        usedCount++
       } else {
         node = insertionAnchor
-        hydrationState.insertionAnchorCount++
-        ;(insertionAnchor as ChildItem).$auc = 0
+        // first use of this anchor: it doesn't consume the next child
+        // so we track unique anchor appearances for later offset correction
+        hydrationState.uniqueAnchorCount++
+        usedCount = 0
       }
+      ;(insertionAnchor as ChildItem).$uc = usedCount
     }
     // append
     else {
@@ -161,14 +170,18 @@ function locateHydrationNodeImpl(): void {
         node = logicalChildren[(appendAnchor as ChildItem).$idx + 1]
       } else {
         node =
+          // insertionAnchor is null, indicates no previous static nodes
+          // use the first child as hydration node
           insertionAnchor === null
             ? logicalChildren[0]
             : // insertionAnchor is a number > 0
               // indicates how many static nodes precede the node to append
+              // use it as index to locate the hydration node
               logicalChildren[prevDynamicCount + insertionAnchor]
       }
       hydrationState.appendAnchor = node
     }
+
     hydrationState.prevDynamicCount++
   } else {
     node = currentHydrationNode
diff --git a/packages/runtime-vapor/src/dom/node.ts b/packages/runtime-vapor/src/dom/node.ts
index 21c94eeff..a48ecf5bb 100644
--- a/packages/runtime-vapor/src/dom/node.ts
+++ b/packages/runtime-vapor/src/dom/node.ts
@@ -72,7 +72,7 @@ export function _nthChild(node: InsertionParent, i: number): Node {
 export function __nthChild(node: Node, i: number): Node {
   const hydrationState = getHydrationState(node as ParentNode)
   if (hydrationState) {
-    const { prevDynamicCount, insertionAnchorCount, logicalChildren } =
+    const { prevDynamicCount, uniqueAnchorCount, logicalChildren } =
       hydrationState
     // prevDynamicCount tracks how many dynamic nodes have been processed
     // so far (prepend/insert/append).
@@ -80,11 +80,11 @@ export function __nthChild(node: Node, i: number): Node {
     // anchor node itself and do NOT consume the next child in `logicalChildren`,
     // yet prevDynamicCount is still incremented. This overcounts the base
     // offset by 1 per unique anchor that has appeared.
-    // insertionAnchorCount equals the number of unique anchors seen, so we
+    // uniqueAnchorCount equals the number of unique anchors seen, so we
     // subtract it to neutralize those "first-use doesn't consume" cases:
-    //   base = prevDynamicCount - insertionAnchorCount
+    //   base = prevDynamicCount - uniqueAnchorCount
     // Then index from this base: logicalChildren[base + i].
-    return logicalChildren[prevDynamicCount - insertionAnchorCount + i]
+    return logicalChildren[prevDynamicCount - uniqueAnchorCount + i]
   }
   return node.childNodes[i]
 }
@@ -103,9 +103,8 @@ export function __next(node: Node): Node {
   const hydrationState = getHydrationState(node.parentNode!)
   if (hydrationState) {
     const { logicalChildren } = hydrationState
-    return logicalChildren[
-      (node as ChildItem).$idx + ((node as ChildItem).$auc || 0) + 1
-    ]
+    const { $idx, $uc: usedCount = 0 } = node as ChildItem
+    return logicalChildren[$idx + usedCount + 1]
   }
   return node.nextSibling!
 }
diff --git a/packages/runtime-vapor/src/insertionState.ts b/packages/runtime-vapor/src/insertionState.ts
index 6d53aeec5..0b29f59d2 100644
--- a/packages/runtime-vapor/src/insertionState.ts
+++ b/packages/runtime-vapor/src/insertionState.ts
@@ -1,17 +1,24 @@
 import { isHydrating } from './dom/hydration'
-export type ChildItem = ChildNode & { $idx: number; $auc?: number }
+export type ChildItem = ChildNode & {
+  $idx: number
+  // used count as an anchor
+  $uc?: number
+}
 export type InsertionParent = ParentNode & { $children?: ChildItem[] }
-
 type HydrationState = {
+  // static nodes and the start anchors of fragments
   logicalChildren: ChildItem[]
+  // hydrated dynamic children count so far
   prevDynamicCount: number
-  insertionAnchorCount: number
+  // number of unique insertion anchors that have appeared
+  uniqueAnchorCount: number
+  // current append anchor
   appendAnchor: Node | null
 }
-export let insertionParent: InsertionParent | undefined
-export let insertionAnchor: Node | 0 | undefined | null
 
 const hydrationStateCache = new WeakMap<ParentNode, HydrationState>()
+export let insertionParent: InsertionParent | undefined
+export let insertionAnchor: Node | 0 | undefined | null
 
 /**
  * This function is called before a block type that requires insertion
@@ -77,7 +84,7 @@ function initializeHydrationState(
     hydrationStateCache.set(parent, {
       logicalChildren,
       prevDynamicCount: 0,
-      insertionAnchorCount: 0,
+      uniqueAnchorCount: 0,
       appendAnchor: null,
     })
   }