diff --git a/packages/next/build/webpack/loaders/next-app-loader.ts b/packages/next/build/webpack/loaders/next-app-loader.ts
index 86c3aefab317c96..2fade9d19f35656 100644
--- a/packages/next/build/webpack/loaders/next-app-loader.ts
+++ b/packages/next/build/webpack/loaders/next-app-loader.ts
@@ -17,6 +17,8 @@ const FILE_TYPES = {
   'not-found': 'not-found',
 } as const
 
+const GLOBAL_ERROR_FILE_TYPE = 'global-error'
+
 const PAGE_SEGMENT = 'page$'
 
 // TODO-APP: check if this can be narrowed.
@@ -43,6 +45,7 @@ async function createTreeCodeFromPath({
   const appDirPrefix = splittedPath[0]
   const pages: string[] = []
   let rootLayout: string | undefined
+  let globalError: string | undefined
 
   async function createSubtreePropsFromSegmentPath(
     segments: string[]
@@ -96,6 +99,12 @@ async function createTreeCodeFromPath({
         )?.[1]
       }
 
+      if (!globalError) {
+        globalError = await resolve(
+          `${appDirPrefix}${parallelSegmentPath}/${GLOBAL_ERROR_FILE_TYPE}`
+        )
+      }
+
       props[parallelKey] = `[
         '${parallelSegment}',
         ${subtree},
@@ -123,7 +132,7 @@ async function createTreeCodeFromPath({
   }
 
   const tree = await createSubtreePropsFromSegmentPath([])
-  return [`const tree = ${tree}.children;`, pages, rootLayout]
+  return [`const tree = ${tree}.children;`, pages, rootLayout, globalError]
 }
 
 function createAbsolutePath(appDir: string, pathToTurnAbsolute: string) {
@@ -211,11 +220,12 @@ const nextAppLoader: webpack.LoaderDefinitionFunction<{
     }
   }
 
-  const [treeCode, pages, rootLayout] = await createTreeCodeFromPath({
-    pagePath,
-    resolve: resolver,
-    resolveParallelSegments,
-  })
+  const [treeCode, pages, rootLayout, globalError] =
+    await createTreeCodeFromPath({
+      pagePath,
+      resolve: resolver,
+      resolveParallelSegments,
+    })
 
   if (!rootLayout) {
     const errorMessage = `${chalk.bold(
@@ -248,6 +258,9 @@ const nextAppLoader: webpack.LoaderDefinitionFunction<{
     export { default as AppRouter } from 'next/dist/client/components/app-router'
     export { default as LayoutRouter } from 'next/dist/client/components/layout-router'
     export { default as RenderFromTemplateContext } from 'next/dist/client/components/render-from-template-context'
+    export { default as GlobalError } from ${JSON.stringify(
+      globalError || 'next/dist/client/components/error-boundary'
+    )}
 
     export { staticGenerationAsyncStorage } from 'next/dist/client/components/static-generation-async-storage'
     export { requestAsyncStorage } from 'next/dist/client/components/request-async-storage'
diff --git a/packages/next/client/components/app-router.tsx b/packages/next/client/components/app-router.tsx
index 7de15e24bdd31cb..d3ad82e0a878ca4 100644
--- a/packages/next/client/components/app-router.tsx
+++ b/packages/next/client/components/app-router.tsx
@@ -14,6 +14,7 @@ import type {
   AppRouterInstance,
 } from '../../shared/lib/app-router-context'
 import type { FlightRouterState, FlightData } from '../../server/app-render'
+import type { ErrorComponent } from './error-boundary'
 import {
   ACTION_NAVIGATE,
   ACTION_PREFETCH,
@@ -30,7 +31,7 @@ import {
   // LayoutSegmentsContext,
 } from '../../shared/lib/hooks-client-context'
 import { useReducerWithReduxDevtools } from './use-reducer-with-devtools'
-import { ErrorBoundary, GlobalErrorComponent } from './error-boundary'
+import { ErrorBoundary } from './error-boundary'
 import {
   NEXT_ROUTER_PREFETCH,
   NEXT_ROUTER_STATE_TREE,
@@ -426,10 +427,14 @@ function Router({
   )
 }
 
-export default function AppRouter(props: AppRouterProps) {
+export default function AppRouter(
+  props: AppRouterProps & { globalErrorComponent: ErrorComponent }
+) {
+  const { globalErrorComponent, ...rest } = props
+
   return (
-    <ErrorBoundary errorComponent={GlobalErrorComponent}>
-      <Router {...props} />
+    <ErrorBoundary errorComponent={globalErrorComponent}>
+      <Router {...rest} />
     </ErrorBoundary>
   )
 }
diff --git a/packages/next/client/components/error-boundary.tsx b/packages/next/client/components/error-boundary.tsx
index 56d9efd5bf451f9..3fb7823c715e04d 100644
--- a/packages/next/client/components/error-boundary.tsx
+++ b/packages/next/client/components/error-boundary.tsx
@@ -1,19 +1,45 @@
+'use client'
+
 import React from 'react'
 
+const styles = {
+  error: {
+    fontFamily:
+      '-apple-system, BlinkMacSystemFont, Roboto, "Segoe UI", "Fira Sans", Avenir, "Helvetica Neue", "Lucida Grande", sans-serif',
+    height: '100vh',
+    textAlign: 'center',
+    display: 'flex',
+    flexDirection: 'column',
+    alignItems: 'center',
+    justifyContent: 'center',
+  },
+  desc: {
+    display: 'inline-block',
+    textAlign: 'left',
+    lineHeight: '49px',
+    height: '49px',
+    verticalAlign: 'middle',
+  },
+  text: {
+    fontSize: '14px',
+    fontWeight: 'normal',
+    lineHeight: '49px',
+    margin: 0,
+    padding: 0,
+  },
+} as const
+
 export type ErrorComponent = React.ComponentType<{
   error: Error
   reset: () => void
 }>
-interface ErrorBoundaryProps {
+
+export interface ErrorBoundaryProps {
   errorComponent: ErrorComponent
   errorStyles?: React.ReactNode | undefined
 }
 
-/**
- * Handles errors through `getDerivedStateFromError`.
- * Renders the provided error component and provides a way to `reset` the error boundary state.
- */
-class ErrorBoundaryHandler extends React.Component<
+export class ErrorBoundaryHandler extends React.Component<
   ErrorBoundaryProps,
   { error: Error | null }
 > {
@@ -47,6 +73,32 @@ class ErrorBoundaryHandler extends React.Component<
   }
 }
 
+export default function GlobalError({ error }: { error: any }) {
+  return (
+    <html>
+      <head></head>
+      <body>
+        <div style={styles.error}>
+          <div style={styles.desc}>
+            <h2 style={styles.text}>
+              Application error: a client-side exception has occurred (see the
+              browser console for more information).
+            </h2>
+            {error?.digest && (
+              <p style={styles.text}>{`Digest: ${error.digest}`}</p>
+            )}
+          </div>
+        </div>
+      </body>
+    </html>
+  )
+}
+
+/**
+ * Handles errors through `getDerivedStateFromError`.
+ * Renders the provided error component and provides a way to `reset` the error boundary state.
+ */
+
 /**
  * Renders error boundary with the provided "errorComponent" property as the fallback.
  * If no "errorComponent" property is provided it renders the children without an error boundary.
@@ -69,51 +121,3 @@ export function ErrorBoundary({
 
   return <>{children}</>
 }
-
-const styles = {
-  error: {
-    fontFamily:
-      '-apple-system, BlinkMacSystemFont, Roboto, "Segoe UI", "Fira Sans", Avenir, "Helvetica Neue", "Lucida Grande", sans-serif',
-    height: '100vh',
-    textAlign: 'center',
-    display: 'flex',
-    flexDirection: 'column',
-    alignItems: 'center',
-    justifyContent: 'center',
-  },
-  desc: {
-    display: 'inline-block',
-    textAlign: 'left',
-    lineHeight: '49px',
-    height: '49px',
-    verticalAlign: 'middle',
-  },
-  text: {
-    fontSize: '14px',
-    fontWeight: 'normal',
-    lineHeight: '49px',
-    margin: 0,
-    padding: 0,
-  },
-} as const
-
-export function GlobalErrorComponent({ error }: { error: any }) {
-  return (
-    <html>
-      <head></head>
-      <body>
-        <div style={styles.error}>
-          <div style={styles.desc}>
-            <h2 style={styles.text}>
-              Application error: a client-side exception has occurred (see the
-              browser console for more information).
-            </h2>
-            {error?.digest && (
-              <p style={styles.text}>{`Digest: ${error.digest}`}</p>
-            )}
-          </div>
-        </div>
-      </body>
-    </html>
-  )
-}
diff --git a/packages/next/server/app-render.tsx b/packages/next/server/app-render.tsx
index ef6ed8766ca7359..193b23526fe8a68 100644
--- a/packages/next/server/app-render.tsx
+++ b/packages/next/server/app-render.tsx
@@ -1628,6 +1628,11 @@ export async function renderToHTMLOrFlight(
     const AppRouter =
       ComponentMod.AppRouter as typeof import('../client/components/app-router').default
 
+    const GlobalError = interopDefault(
+      /** GlobalError can be either the default error boundary or the overwritten app/global-error.js **/
+      ComponentMod.GlobalError as typeof import('../client/components/error-boundary').default
+    )
+
     let serverComponentsInlinedTransformStream: TransformStream<
       Uint8Array,
       Uint8Array
@@ -1636,7 +1641,7 @@ export async function renderToHTMLOrFlight(
     // TODO-APP: validate req.url as it gets passed to render.
     const initialCanonicalUrl = req.url!
 
-    // Get the nonce from the incomming request if it has one.
+    // Get the nonce from the incoming request if it has one.
     const csp = req.headers['content-security-policy']
     let nonce: string | undefined
     if (csp && typeof csp === 'string') {
@@ -1682,6 +1687,7 @@ export async function renderToHTMLOrFlight(
             initialCanonicalUrl={initialCanonicalUrl}
             initialTree={initialTree}
             initialHead={initialHead}
+            globalErrorComponent={GlobalError}
           >
             <ComponentTree />
           </AppRouter>
diff --git a/test/e2e/app-dir/global-error.test.ts b/test/e2e/app-dir/global-error.test.ts
new file mode 100644
index 000000000000000..2f6b37f29ae03b5
--- /dev/null
+++ b/test/e2e/app-dir/global-error.test.ts
@@ -0,0 +1,35 @@
+import path from 'path'
+import { getRedboxHeader, hasRedbox } from 'next-test-utils'
+import { createNext, FileRef } from 'e2e-utils'
+import { NextInstance } from 'test/lib/next-modes/base'
+import webdriver from 'next-webdriver'
+
+describe('app dir - global error', () => {
+  let next: NextInstance
+  const isDev = (global as any).isNextDev
+
+  beforeAll(async () => {
+    next = await createNext({
+      files: new FileRef(path.join(__dirname, './global-error')),
+    })
+  })
+  afterAll(() => next.destroy())
+
+  it('should trigger error component when an error happens during rendering', async () => {
+    const browser = await webdriver(next.url, '/throw')
+    await browser
+      .waitForElementByCss('#error-trigger-button')
+      .elementByCss('#error-trigger-button')
+      .click()
+
+    if (isDev) {
+      expect(await hasRedbox(browser)).toBe(true)
+      expect(await getRedboxHeader(browser)).toMatch(/Error: Client error/)
+    } else {
+      await browser
+      expect(await browser.elementByCss('#error').text()).toBe(
+        'Error message: Client error'
+      )
+    }
+  })
+})
diff --git a/test/e2e/app-dir/global-error/app/global-error.js b/test/e2e/app-dir/global-error/app/global-error.js
new file mode 100644
index 000000000000000..5440155259e6ced
--- /dev/null
+++ b/test/e2e/app-dir/global-error/app/global-error.js
@@ -0,0 +1,12 @@
+'use client'
+
+export default function GlobalError({ error }) {
+  return (
+    <html>
+      <head></head>
+      <body>
+        <div id="error">{`Error message: ${error?.message}`}</div>
+      </body>
+    </html>
+  )
+}
diff --git a/test/e2e/app-dir/global-error/app/layout.js b/test/e2e/app-dir/global-error/app/layout.js
new file mode 100644
index 000000000000000..762515029332e8c
--- /dev/null
+++ b/test/e2e/app-dir/global-error/app/layout.js
@@ -0,0 +1,8 @@
+export default function Layout({ children }) {
+  return (
+    <html>
+      <head></head>
+      <body>{children}</body>
+    </html>
+  )
+}
diff --git a/test/e2e/app-dir/global-error/app/throw/page.js b/test/e2e/app-dir/global-error/app/throw/page.js
new file mode 100644
index 000000000000000..6f0fa5a919407bd
--- /dev/null
+++ b/test/e2e/app-dir/global-error/app/throw/page.js
@@ -0,0 +1,20 @@
+'use client'
+
+import { useState } from 'react'
+
+export default function Page() {
+  const [clicked, setClicked] = useState(false)
+  if (clicked) {
+    throw new Error('Client error')
+  }
+  return (
+    <button
+      id="error-trigger-button"
+      onClick={() => {
+        setClicked(true)
+      }}
+    >
+      Trigger Error!
+    </button>
+  )
+}
diff --git a/test/e2e/app-dir/global-error/next.config.js b/test/e2e/app-dir/global-error/next.config.js
new file mode 100644
index 000000000000000..8e2a6c369174469
--- /dev/null
+++ b/test/e2e/app-dir/global-error/next.config.js
@@ -0,0 +1,3 @@
+module.exports = {
+  experimental: { appDir: true },
+}
diff --git a/test/e2e/app-dir/rsc-errors.test.ts b/test/e2e/app-dir/rsc-errors.test.ts
index 4a895a93fb2a5b5..1c3e1c485424c22 100644
--- a/test/e2e/app-dir/rsc-errors.test.ts
+++ b/test/e2e/app-dir/rsc-errors.test.ts
@@ -7,8 +7,7 @@ describe('app dir - rsc errors', () => {
   let next: NextInstance
 
   const { isNextDeploy, isNextDev } = global as any
-  const isReact17 = process.env.NEXT_TEST_REACT_VERSION === '^17'
-  if (isNextDeploy || isReact17) {
+  if (isNextDeploy) {
     it('should skip tests for next-deploy and react 17', () => {})
     return
   }