diff --git a/packages/react-dom/src/__tests__/ReactDOMFizzServer-test.js b/packages/react-dom/src/__tests__/ReactDOMFizzServer-test.js
index 0782b57ff4b47..1ecab933035f8 100644
--- a/packages/react-dom/src/__tests__/ReactDOMFizzServer-test.js
+++ b/packages/react-dom/src/__tests__/ReactDOMFizzServer-test.js
@@ -1864,6 +1864,83 @@ describe('ReactDOMFizzServer', () => {
     }
   });
 
+  // @gate experimental
+  it(
+    'errors during hydration in the shell force a client render at the ' +
+      'root, and during the client render it recovers',
+    async () => {
+      let isClient = false;
+
+      function subscribe() {
+        return () => {};
+      }
+      function getClientSnapshot() {
+        return 'Yay!';
+      }
+
+      // At the time of writing, the only API that exposes whether it's currently
+      // hydrating is the `getServerSnapshot` API, so I'm using that here to
+      // simulate an error during hydration.
+      function getServerSnapshot() {
+        if (isClient) {
+          throw new Error('Hydration error');
+        }
+        return 'Yay!';
+      }
+
+      function Child() {
+        const value = useSyncExternalStore(
+          subscribe,
+          getClientSnapshot,
+          getServerSnapshot,
+        );
+        Scheduler.unstable_yieldValue(value);
+        return value;
+      }
+
+      const spanRef = React.createRef();
+
+      function App() {
+        return (
+          <span ref={spanRef}>
+            <Child />
+          </span>
+        );
+      }
+
+      await act(async () => {
+        const {pipe} = ReactDOMFizzServer.renderToPipeableStream(<App />);
+        pipe(writable);
+      });
+      expect(Scheduler).toHaveYielded(['Yay!']);
+
+      const span = container.getElementsByTagName('span')[0];
+
+      // Hydrate the tree. Child will throw during hydration, but not when it
+      // falls back to client rendering.
+      isClient = true;
+      ReactDOM.hydrateRoot(container, <App />, {
+        onRecoverableError(error) {
+          Scheduler.unstable_yieldValue(error.message);
+        },
+      });
+
+      // An error logged but instead of surfacing it to the UI, we switched
+      // to client rendering.
+      expect(() => {
+        expect(Scheduler).toFlushAndYield(['Yay!', 'Hydration error']);
+      }).toErrorDev(
+        'An error occurred during hydration. The server HTML was replaced',
+        {withoutStack: true},
+      );
+      expect(getVisibleChildren(container)).toEqual(<span>Yay!</span>);
+
+      // The node that's inside the boundary that errored during hydration was
+      // not hydrated.
+      expect(spanRef.current).not.toBe(span);
+    },
+  );
+
   // @gate experimental
   it(
     'errors during hydration force a client render at the nearest Suspense ' +
diff --git a/packages/react-reconciler/src/ReactFiberBeginWork.new.js b/packages/react-reconciler/src/ReactFiberBeginWork.new.js
index 521a75d11dcb7..f0d7b6c625cc6 100644
--- a/packages/react-reconciler/src/ReactFiberBeginWork.new.js
+++ b/packages/react-reconciler/src/ReactFiberBeginWork.new.js
@@ -225,9 +225,6 @@ import {
   markSkippedUpdateLanes,
   getWorkInProgressRoot,
   pushRenderLanes,
-  getExecutionContext,
-  RetryAfterError,
-  NoContext,
 } from './ReactFiberWorkLoop.new';
 import {setWorkInProgressVersion} from './ReactMutableSource.new';
 import {
@@ -2646,14 +2643,6 @@ function updateDehydratedSuspenseComponent(
   // but after we've already committed once.
   warnIfHydrating();
 
-  if ((getExecutionContext() & RetryAfterError) !== NoContext) {
-    return retrySuspenseComponentWithoutHydrating(
-      current,
-      workInProgress,
-      renderLanes,
-    );
-  }
-
   if ((workInProgress.mode & ConcurrentMode) === NoMode) {
     return retrySuspenseComponentWithoutHydrating(
       current,
diff --git a/packages/react-reconciler/src/ReactFiberBeginWork.old.js b/packages/react-reconciler/src/ReactFiberBeginWork.old.js
index 471bb11d941da..b562291850ea5 100644
--- a/packages/react-reconciler/src/ReactFiberBeginWork.old.js
+++ b/packages/react-reconciler/src/ReactFiberBeginWork.old.js
@@ -225,9 +225,6 @@ import {
   markSkippedUpdateLanes,
   getWorkInProgressRoot,
   pushRenderLanes,
-  getExecutionContext,
-  RetryAfterError,
-  NoContext,
 } from './ReactFiberWorkLoop.old';
 import {setWorkInProgressVersion} from './ReactMutableSource.old';
 import {
@@ -2646,14 +2643,6 @@ function updateDehydratedSuspenseComponent(
   // but after we've already committed once.
   warnIfHydrating();
 
-  if ((getExecutionContext() & RetryAfterError) !== NoContext) {
-    return retrySuspenseComponentWithoutHydrating(
-      current,
-      workInProgress,
-      renderLanes,
-    );
-  }
-
   if ((workInProgress.mode & ConcurrentMode) === NoMode) {
     return retrySuspenseComponentWithoutHydrating(
       current,
diff --git a/packages/react-reconciler/src/ReactFiberWorkLoop.new.js b/packages/react-reconciler/src/ReactFiberWorkLoop.new.js
index 4a1880e0cf848..12bc721c6d399 100644
--- a/packages/react-reconciler/src/ReactFiberWorkLoop.new.js
+++ b/packages/react-reconciler/src/ReactFiberWorkLoop.new.js
@@ -245,11 +245,10 @@ const {
 
 type ExecutionContext = number;
 
-export const NoContext = /*             */ 0b0000;
-const BatchedContext = /*               */ 0b0001;
-const RenderContext = /*                */ 0b0010;
-const CommitContext = /*                */ 0b0100;
-export const RetryAfterError = /*       */ 0b1000;
+export const NoContext = /*             */ 0b000;
+const BatchedContext = /*               */ 0b001;
+const RenderContext = /*                */ 0b010;
+const CommitContext = /*                */ 0b100;
 
 type RootExitStatus = 0 | 1 | 2 | 3 | 4 | 5 | 6;
 const RootInProgress = 0;
@@ -945,9 +944,6 @@ function performConcurrentWorkOnRoot(root, didTimeout) {
 }
 
 function recoverFromConcurrentError(root, errorRetryLanes) {
-  const prevExecutionContext = executionContext;
-  executionContext |= RetryAfterError;
-
   // If an error occurred during hydration, discard server response and fall
   // back to client side render.
   if (root.isDehydrated) {
@@ -970,9 +966,6 @@ function recoverFromConcurrentError(root, errorRetryLanes) {
   } else {
     // The UI failed to recover.
   }
-
-  executionContext = prevExecutionContext;
-
   return exitStatus;
 }
 
diff --git a/packages/react-reconciler/src/ReactFiberWorkLoop.old.js b/packages/react-reconciler/src/ReactFiberWorkLoop.old.js
index b9fada5bd00b0..9e37f41f4fc82 100644
--- a/packages/react-reconciler/src/ReactFiberWorkLoop.old.js
+++ b/packages/react-reconciler/src/ReactFiberWorkLoop.old.js
@@ -245,11 +245,10 @@ const {
 
 type ExecutionContext = number;
 
-export const NoContext = /*             */ 0b0000;
-const BatchedContext = /*               */ 0b0001;
-const RenderContext = /*                */ 0b0010;
-const CommitContext = /*                */ 0b0100;
-export const RetryAfterError = /*       */ 0b1000;
+export const NoContext = /*             */ 0b000;
+const BatchedContext = /*               */ 0b001;
+const RenderContext = /*                */ 0b010;
+const CommitContext = /*                */ 0b100;
 
 type RootExitStatus = 0 | 1 | 2 | 3 | 4 | 5 | 6;
 const RootInProgress = 0;
@@ -945,9 +944,6 @@ function performConcurrentWorkOnRoot(root, didTimeout) {
 }
 
 function recoverFromConcurrentError(root, errorRetryLanes) {
-  const prevExecutionContext = executionContext;
-  executionContext |= RetryAfterError;
-
   // If an error occurred during hydration, discard server response and fall
   // back to client side render.
   if (root.isDehydrated) {
@@ -970,9 +966,6 @@ function recoverFromConcurrentError(root, errorRetryLanes) {
   } else {
     // The UI failed to recover.
   }
-
-  executionContext = prevExecutionContext;
-
   return exitStatus;
 }