diff --git a/packages/sdk/svelte/__tests__/lib/client/SvelteLDClient.test.ts b/packages/sdk/svelte/__tests__/lib/client/SvelteLDClient.test.ts
index 551d82852..cf8fdd3af 100644
--- a/packages/sdk/svelte/__tests__/lib/client/SvelteLDClient.test.ts
+++ b/packages/sdk/svelte/__tests__/lib/client/SvelteLDClient.test.ts
@@ -18,7 +18,7 @@ const mockLDClient = {
   on: (e: string, cb: () => void) => mockLDEventEmitter.on(e, cb),
   off: vi.fn(),
   allFlags: vi.fn().mockReturnValue(rawFlags),
-  variation: vi.fn(),
+  variation: vi.fn((_, defaultValue) => defaultValue),
   identify: vi.fn(),
 };
 
@@ -130,6 +130,9 @@ describe('launchDarkly', () => {
         const flagStore = ld.watch(booleanFlagKey);
         const flagStore2 = ld.watch(stringFlagKey);
 
+        // emit ready event to set initial flag values
+        mockLDEventEmitter.emit('ready');
+
         // 'test-flag' initial value is true according to `rawFlags`
         expect(get(flagStore)).toBe(true);
         // 'another-test-flag' intial value is 'flag-value' according to `rawFlags`
diff --git a/packages/sdk/svelte/package.json b/packages/sdk/svelte/package.json
index cf3914e34..bb972b19c 100644
--- a/packages/sdk/svelte/package.json
+++ b/packages/sdk/svelte/package.json
@@ -44,13 +44,11 @@
   },
   "peerDependencies": {
     "@launchdarkly/js-client-sdk": "workspace:^",
-    "@launchdarkly/js-client-sdk-common": "^1.10.0",
     "@launchdarkly/node-server-sdk": "^9.4.6",
     "svelte": "^4.0.0"
   },
   "dependencies": {
     "@launchdarkly/js-client-sdk": "workspace:^",
-    "@launchdarkly/js-client-sdk-common": "1.10.0",
     "esm-env": "^1.0.0"
   },
   "devDependencies": {
diff --git a/packages/sdk/svelte/src/lib/client/SvelteLDClient.ts b/packages/sdk/svelte/src/lib/client/SvelteLDClient.ts
index a251a37d3..0b3103056 100644
--- a/packages/sdk/svelte/src/lib/client/SvelteLDClient.ts
+++ b/packages/sdk/svelte/src/lib/client/SvelteLDClient.ts
@@ -27,12 +27,43 @@ function isClientInitialized(client: LDClient | undefined): asserts client is LD
   }
 }
 
+/**
+ * Creates a proxy for the given flags object that intercepts access to flag values.
+ * When a flag value is accessed, it checks if the flag key exists in the target object.
+ * If the flag key exists, it returns the variation of the flag from the client.
+ * Otherwise, it returns the current value of the flag.
+ *
+ * @param client - The LaunchDarkly client instance used to get flag variations.
+ * @param flags - The initial flags object to be proxied.
+ * @returns A proxy object that intercepts access to flag values and returns the appropriate variation.
+ */
+function toFlagsProxy(client: LDClient, flags: LDFlags): LDFlags {
+  return new Proxy(flags, {
+    get(target, prop, receiver) {
+      const currentValue = Reflect.get(target, prop, receiver);
+      // only process flag keys and ignore symbols and native Object functions
+      if (typeof prop === 'symbol') {
+        return currentValue;
+      }
+
+      // check if flag key exists
+      const validFlagKey = Object.hasOwn(target, prop);
+
+      if (!validFlagKey) {
+        return currentValue;
+      }
+
+      return client.variation(prop, currentValue);
+    },
+  });
+}
+
 /**
  * Creates a LaunchDarkly instance.
  * @returns {Object} The LaunchDarkly instance object.
  */
 function createLD() {
-  let jsSdk: LDClient | undefined;
+  let coreLdClient: LDClient | undefined;
   const loading = writable(true);
   const flagsWritable = writable<LDFlags>({});
 
@@ -43,15 +74,17 @@ function createLD() {
    */
 
   function LDInitialize(clientId: LDClientID) {
-    jsSdk = initialize(clientId);
-    jsSdk!.on('ready', () => {
+    coreLdClient = initialize(clientId);
+    coreLdClient!.on('ready', () => {
       loading.set(false);
-      const allFlags = jsSdk!.allFlags();
+      const rawFlags = coreLdClient!.allFlags();
+      const allFlags = toFlagsProxy(coreLdClient, rawFlags);
       flagsWritable.set(allFlags);
     });
 
-    jsSdk!.on('change', () => {
-      const allFlags = jsSdk!.allFlags();
+    coreLdClient!.on('change', () => {
+      const rawFlags = coreLdClient!.allFlags();
+      const allFlags = toFlagsProxy(coreLdClient, rawFlags);
       flagsWritable.set(allFlags);
     });
 
@@ -66,8 +99,8 @@ function createLD() {
    * @returns {Promise} A promise that resolves when the user is identified.
    */
   async function identify(context: LDContext) {
-    isClientInitialized(jsSdk);
-    return jsSdk.identify(context);
+    isClientInitialized(coreLdClient);
+    return coreLdClient.identify(context);
   }
 
   /**
@@ -84,7 +117,7 @@ function createLD() {
    * @returns {boolean} True if the flag is on, false otherwise.
    */
   const isOn = (flagKey: string): boolean => {
-    isClientInitialized(jsSdk);
+    isClientInitialized(coreLdClient);
     const currentFlags = get(flagsWritable);
     return !!currentFlags[flagKey];
   };