diff --git a/.changeset/khaki-pets-exercise.md b/.changeset/khaki-pets-exercise.md
new file mode 100644
index 0000000..6a79428
--- /dev/null
+++ b/.changeset/khaki-pets-exercise.md
@@ -0,0 +1,5 @@
+---
+'svelte-hmr': patch
+---
+
+Fix preserving bind: directive (fixes #43)
diff --git a/packages/svelte-hmr-spec/test/bindings.spec.js b/packages/svelte-hmr-spec/test/bindings.spec.js
index f17dd18..d6723f6 100644
--- a/packages/svelte-hmr-spec/test/bindings.spec.js
+++ b/packages/svelte-hmr-spec/test/bindings.spec.js
@@ -56,8 +56,7 @@ describe('bindings', () => {
 
   `
 
-  // TODO should depend on preserveLocalState option
-  testHmr.skip`
+  testHmr`
     # resets bound values when owner is updated
 
     --- App.svelte ---
@@ -86,4 +85,257 @@ describe('bindings', () => {
       <input type="number" />
       <div>123</div>
   `
+
+  testHmr`
+    # instance function are preserved when binding to instance
+
+    --- App.svelte ---
+
+    <script>
+      import {onMount} from 'svelte'
+      import Foo from './Foo.svelte'
+
+      let foo
+      let x
+
+      const update = () => {
+        x = foo.get()
+      }
+
+      onMount(update)
+    </script>
+
+    <Foo bind:this={foo} />
+
+    <x-focus>{x}</x-focus>
+
+    <button on:click={update} />
+
+    --- Foo.svelte ---
+
+    <script>
+      ::0 export const get = () => 1
+      ::1 export const get = () => 2
+    </script>
+
+    * * * * *
+
+    ::0::
+      1
+    ::1::
+      ${clickButton()}
+      2
+  `
+
+  testHmr`
+    # const function bindings are preserved
+
+    --- App.svelte ---
+
+    <script>
+      import {onMount} from 'svelte'
+      import Foo from './Foo.svelte'
+
+      let get
+      let x
+
+      const update = () => {
+        x = get()
+      }
+
+      onMount(update)
+    </script>
+
+    <Foo bind:get />
+
+    <x-focus>{x}</x-focus>
+
+    <button on:click={update} />
+
+    --- Foo.svelte ---
+
+    <script>
+      ::0 export const get = () => 1
+      ::1 export const get = () => 2
+    </script>
+
+    * * * * *
+
+    ::0::
+      1
+    ::1::
+      ${clickButton()}
+      2
+  `
+
+  testHmr`
+    # const function bindings are preserved when variables change
+
+    --- App.svelte ---
+
+    <script>
+      import {onMount} from 'svelte'
+      import Foo from './Foo.svelte'
+
+      let get
+      let x
+
+      const update = () => {
+        x = get && get()
+      }
+
+      onMount(update)
+    </script>
+
+    <Foo bind:get />
+
+    <x-focus>{x}</x-focus>
+
+    <button on:click={update} />
+
+    --- Foo.svelte ---
+
+    <script>
+      ::0 export const get = () => 1
+
+      ::1 let foo = 'FOO'
+      ::1 export let bar = 'BAR'
+      ::1 export const get = () => 2
+      ::1 $: console.log(foo + bar)
+
+      ::2 let foo = 'FOO'
+      ::2 $: console.log(foo)
+      ::2 export const get = () => 3
+
+      ::3 export const set = () => {}
+
+      ::4 let foo = 'FOO'; let bar = 'BAR'; let baz = 'BAZ'; let bat = 'BAT';
+      ::4 $: console.log(foo + bar + baz + bat)
+      ::4 export const get = () => 4
+    </script>
+
+    * * * * *
+
+    ::0::
+      1
+    ::1:: exported function order in variables changes
+      1
+      ${clickButton()}
+      2
+    ::2:: exported function order in variables changes again
+      2
+      ${clickButton()}
+      3
+    ::3:: exported function disappears
+      3
+      ${clickButton()}
+      undefined
+    ::4:: exported function comes back (at another index)
+      undefined
+      ${clickButton()}
+      4
+  `
+
+  testHmr`
+    # let function bindings are preserved
+
+    --- App.svelte ---
+
+    <script>
+      import {onMount} from 'svelte'
+      import Foo from './Foo.svelte'
+
+      let get
+      let x
+
+      const update = () => {
+        x = get()
+      }
+
+      onMount(update)
+    </script>
+
+    <Foo bind:get />
+
+    <x-focus>{x}</x-focus>
+
+    <button id="update" on:click={update} />
+
+    --- Foo.svelte ---
+
+    <script>
+      ::0 export let get = () => 1
+      ::1 export let get = () => 2
+
+      export const change = () => {
+        get = () => 3
+      }
+    </script>
+
+    <button id="change-let" on:click={change} />
+
+    * * * * *
+
+    ::0::
+      1
+    ::1::
+      ${clickButton('#update')}
+      2
+      ${clickButton('#change-let')}
+      2
+      ${clickButton('#update')}
+      3
+  `
+
+  testHmr`
+    # binding to a prop that does not exists yet
+
+    --- App.svelte ---
+
+    <script>
+      import {onMount} from 'svelte'
+      import Foo from './Foo.svelte'
+
+      let get
+      let x
+
+      const update = () => {
+        x = get && get()
+      }
+
+      onMount(update)
+    </script>
+
+    <Foo bind:get />
+
+    <x-focus>{x}</x-focus>
+
+    <button on:click={update} />
+
+    --- Foo.svelte ---
+
+    <script>
+      ::0 export let bet = () => 1
+      ::1 export let get = () => 2
+      ::2 export let bet = () => 3
+      ::3 export let get = () => 4
+    </script>
+
+    * * * * *
+
+    ::0::
+      undefined
+    ::1::
+      undefined
+      ${clickButton()}
+      2
+    ::2:: doesn't reuse a wrong variable in the right place
+      2
+      ${clickButton()}
+      undefined
+    ::3:: remembers older future prop
+      undefined
+      ${clickButton()}
+      4
+  `
 })
diff --git a/packages/svelte-hmr/runtime/svelte-hooks.js b/packages/svelte-hmr/runtime/svelte-hooks.js
index 1e95dc5..864aafb 100644
--- a/packages/svelte-hmr/runtime/svelte-hooks.js
+++ b/packages/svelte-hmr/runtime/svelte-hooks.js
@@ -21,7 +21,7 @@ const captureState = cmp => {
   }
 
   const {
-    $$: { callbacks, bound, ctx },
+    $$: { callbacks, bound, ctx, props },
   } = cmp
 
   const state = cmp.$capture_state()
@@ -29,12 +29,57 @@ const captureState = cmp => {
   // capturing current value of props (or we'll recreate the component with the
   // initial prop values, that may have changed -- and would not be reflected in
   // options.props)
-  const props = Object.assign({}, cmp.$$.props)
+  const hmr_props_values = {}
   Object.keys(cmp.$$.props).forEach(prop => {
-    props[prop] = ctx[props[prop]]
+    hmr_props_values[prop] = ctx[props[prop]]
   })
 
-  return { ctx, callbacks, bound, state, props }
+  return {
+    ctx,
+    props,
+    callbacks,
+    bound,
+    state,
+    hmr_props_values,
+  }
+}
+
+// remapping all existing bindings (including hmr_future_foo ones) to the
+// new version's props indexes, and refresh them with the new value from
+// context
+const restoreBound = (cmp, restore) => {
+  // reverse prop:ctxIndex in $$.props to ctxIndex:prop
+  //
+  // ctxIndex can be either a regular index in $$.ctx or a hmr_future_ prop
+  //
+  const propsByIndex = {}
+  for (const [name, i] of Object.entries(restore.props)) {
+    propsByIndex[i] = name
+  }
+
+  // NOTE $$.bound cannot change in the HMR lifetime of a component, because
+  //      if bindings changes, that means the parent component has changed,
+  //      which means the child (current) component will be wholly recreated
+  for (const [oldIndex, updateBinding] of Object.entries(restore.bound)) {
+    // can be either regular prop, or future_hmr_ prop
+    const propName = propsByIndex[oldIndex]
+
+    // this should never happen if remembering of future props is enabled...
+    // in any case, there's nothing we can do about it if we have lost prop
+    // name knowledge at this point
+    if (propName == null) continue
+
+    // NOTE $$.props[propName] also propagates knowledge of a possible
+    //      future prop to the new $$.props (via $$.props being a Proxy)
+    const newIndex = cmp.$$.props[propName]
+    cmp.$$.bound[newIndex] = updateBinding
+
+    // NOTE if the prop doesn't exist or doesn't exist anymore in the new
+    //      version of the component, clearing the binding is the expected
+    //      behaviour (since that's what would happen in non HMR code)
+    const newValue = cmp.$$.ctx[newIndex]
+    updateBinding(newValue)
+  }
 }
 
 // restoreState
@@ -46,16 +91,16 @@ const captureState = cmp => {
 // also generally more respectful of normal operation.
 //
 const restoreState = (cmp, restore) => {
-  if (!restore) {
-    return
-  }
-  const { callbacks, bound } = restore
-  if (callbacks) {
-    cmp.$$.callbacks = callbacks
+  if (!restore) return
+
+  if (restore.callbacks) {
+    cmp.$$.callbacks = restore.callbacks
   }
-  if (bound) {
-    cmp.$$.bound = bound
+
+  if (restore.bound) {
+    restoreBound(cmp, restore)
   }
+
   // props, props.$$slots are restored at component creation (works
   // better -- well, at all actually)
 }
@@ -100,10 +145,10 @@ export const createProxiedComponent = (
     //      change without a code change to the parent itself -- hence, the
     //      child component will be fully recreated, and initial options should
     //      always represent props that are currnetly passed by the parent
-    if (options.props && restore.props) {
+    if (options.props && restore.hmr_props_values) {
       for (const prop of Object.keys(options.props)) {
-        if (restore.props.hasOwnProperty(prop)) {
-          props[prop] = restore.props[prop]
+        if (restore.hmr_props_values.hasOwnProperty(prop)) {
+          props[prop] = restore.hmr_props_values[prop]
         }
       }
     }
@@ -129,15 +174,45 @@ export const createProxiedComponent = (
     })
   }
 
+  // Preserving knowledge of "future props" -- very hackish version (maybe
+  // there should be an option to opt out of this)
+  //
+  // The use case is bind:something where something doesn't exist yet in the
+  // target component, but comes to exist later, after a HMR update.
+  //
+  // If Svelte can't map a prop in the current version of the component, it
+  // will just completely discard it:
+  // https://github.com/sveltejs/svelte/blob/1632bca34e4803d6b0e0b0abd652ab5968181860/src/runtime/internal/Component.ts#L46
+  //
+  const rememberFutureProps = cmp => {
+    if (typeof Proxy === 'undefined') return
+
+    cmp.$$.props = new Proxy(cmp.$$.props, {
+      get(target, name) {
+        if (target[name] === undefined) {
+          target[name] = 'hmr_future_' + name
+        }
+        return target[name]
+      },
+      set(target, name, value) {
+        target[name] = value
+      },
+    })
+  }
+
   const instrument = targetCmp => {
     const createComponent = (Component, restore, previousCmp) => {
       set_current_component(parentComponent || previousCmp)
       const comp = new Component(options)
-      restoreState(comp, restore)
+      // NOTE must be instrumented before restoreState, because restoring
+      // bindings relies on hacked $$.props
       instrument(comp)
+      restoreState(comp, restore)
       return comp
     }
 
+    rememberFutureProps(targetCmp)
+
     targetCmp.$$.on_hmr = []
 
     // `conservative: true` means we want to be sure that the new component has
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index cef3994..0e99ae1 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -95,7 +95,7 @@ importers:
       rollup-plugin-svelte-hot: github:rixo/rollup-plugin-svelte-hot#svhs
       rollup-plugin-terser: ^5.1.2
       sirv-cli: ^0.4.4
-      svelte: ~3.41.0
+      svelte: ~3.46.4
       svelte-hmr: workspace:*
       svelte-hmr-spec: workspace:*
     dependencies:
@@ -108,9 +108,9 @@ importers:
       rollup: 2.54.0
       rollup-plugin-hot: 0.1.1_rollup@2.54.0
       rollup-plugin-livereload: 1.3.0
-      rollup-plugin-svelte-hot: github.com/rixo/rollup-plugin-svelte-hot/5911fabc970c634f78c901e023526c81990e7474_bce53102debd41c5dac09b4d251cb2d9
+      rollup-plugin-svelte-hot: github.com/rixo/rollup-plugin-svelte-hot/5911fabc970c634f78c901e023526c81990e7474_0976037ac3c77f7249b7fcdddb456ee6
       rollup-plugin-terser: 5.3.1_rollup@2.54.0
-      svelte: 3.41.0
+      svelte: 3.46.4
       svelte-hmr: link:../../../packages/svelte-hmr
       svelte-hmr-spec: link:../../../packages/svelte-hmr-spec
 
@@ -3305,7 +3305,7 @@ packages:
   /jsonfile/4.0.0:
     resolution: {integrity: sha1-h3Gq4HmbZAdrdmQPygWPnBDjPss=}
     optionalDependencies:
-      graceful-fs: 4.2.6
+      graceful-fs: 4.2.9
     dev: true
 
   /just-extend/4.2.1:
@@ -3388,7 +3388,7 @@ packages:
     resolution: {integrity: sha512-OfCBkGEw4nN6JLtgRidPX6QxjBQGQf72q3si2uvqyFEMbycSFFHwAZeXx6cJgFM9wmLrf9zBwCP3Ivqa+LLZPw==}
     engines: {node: '>=6'}
     dependencies:
-      graceful-fs: 4.2.6
+      graceful-fs: 4.2.9
       js-yaml: 3.14.1
       pify: 4.0.1
       strip-bom: 3.0.0
@@ -5281,13 +5281,13 @@ packages:
     engines: {node: '>= 8'}
     dev: true
 
-  /svelte/3.41.0:
-    resolution: {integrity: sha512-X9/lnTcRBCrMdyFBVjfmqy1T2vyN8ejUE1OfbWSccc2Z42Amn3ab3XdBgVl+oDkZvzPfPMoxo6CEbWca7pXOew==}
+  /svelte/3.44.1:
+    resolution: {integrity: sha512-4DrCEJoBvdR689efHNSxIQn2pnFwB7E7j2yLEJtHE/P8hxwZWIphCtJ8are7bjl/iVMlcEf5uh5pJ68IwR09vQ==}
     engines: {node: '>= 8'}
     dev: true
 
-  /svelte/3.44.1:
-    resolution: {integrity: sha512-4DrCEJoBvdR689efHNSxIQn2pnFwB7E7j2yLEJtHE/P8hxwZWIphCtJ8are7bjl/iVMlcEf5uh5pJ68IwR09vQ==}
+  /svelte/3.46.4:
+    resolution: {integrity: sha512-qKJzw6DpA33CIa+C/rGp4AUdSfii0DOTCzj/2YpSKKayw5WGSS624Et9L1nU1k2OVRS9vaENQXp2CVZNU+xvIg==}
     engines: {node: '>= 8'}
     dev: true
 
@@ -5908,7 +5908,7 @@ packages:
       zora: 3.1.9
     dev: true
 
-  github.com/rixo/rollup-plugin-svelte-hot/5911fabc970c634f78c901e023526c81990e7474_bce53102debd41c5dac09b4d251cb2d9:
+  github.com/rixo/rollup-plugin-svelte-hot/5911fabc970c634f78c901e023526c81990e7474_0976037ac3c77f7249b7fcdddb456ee6:
     resolution: {tarball: https://codeload.github.com/rixo/rollup-plugin-svelte-hot/tar.gz/5911fabc970c634f78c901e023526c81990e7474}
     id: github.com/rixo/rollup-plugin-svelte-hot/5911fabc970c634f78c901e023526c81990e7474
     name: rollup-plugin-svelte-hot
@@ -5928,7 +5928,7 @@ packages:
       rollup-plugin-hot-nollup: 0.1.2_rollup@2.54.0
       rollup-pluginutils: 2.8.2
       sourcemap-codec: 1.4.8
-      svelte: 3.41.0
+      svelte: 3.46.4
     dev: true
 
   github.com/rixo/zora-reporters/002538be1e3fc28bc4bdca8e1bed15b20c8bd2e6:
diff --git a/test/apps/svhs/package.json b/test/apps/svhs/package.json
index c47e2e5..16ba92d 100644
--- a/test/apps/svhs/package.json
+++ b/test/apps/svhs/package.json
@@ -15,7 +15,7 @@
     "rollup-plugin-livereload": "^1.0.0",
     "rollup-plugin-svelte-hot": "github:rixo/rollup-plugin-svelte-hot#svhs",
     "rollup-plugin-terser": "^5.1.2",
-    "svelte": "~3.41.0",
+    "svelte": "~3.46.4",
     "svelte-hmr": "workspace:*",
     "svelte-hmr-spec": "workspace:*"
   },