diff --git a/packages/e2e-tests/test-applications/nextjs-app-dir/app/layout.tsx b/packages/e2e-tests/test-applications/nextjs-app-dir/app/layout.tsx
index 35c4704735e7..b93ad29e53cb 100644
--- a/packages/e2e-tests/test-applications/nextjs-app-dir/app/layout.tsx
+++ b/packages/e2e-tests/test-applications/nextjs-app-dir/app/layout.tsx
@@ -29,6 +29,12 @@ export default function Layout({ children }: { children: React.ReactNode }) {
             <li>
               <Link href="/server-component/parameter/foo/bar/baz">/server-component/parameter/foo/bar/baz</Link>
             </li>
+            <li>
+              <Link href="/not-found">/not-found</Link>
+            </li>
+            <li>
+              <Link href="/redirect">/redirect</Link>
+            </li>
           </ul>
           <TransactionContextProvider>{children}</TransactionContextProvider>
         </div>
diff --git a/packages/e2e-tests/test-applications/nextjs-app-dir/app/not-found.tsx b/packages/e2e-tests/test-applications/nextjs-app-dir/app/not-found.tsx
index 5e7b156553a6..87ce52a19e73 100644
--- a/packages/e2e-tests/test-applications/nextjs-app-dir/app/not-found.tsx
+++ b/packages/e2e-tests/test-applications/nextjs-app-dir/app/not-found.tsx
@@ -1,7 +1,10 @@
+import { ClientErrorDebugTools } from '../components/client-error-debug-tools';
+
 export default function NotFound() {
   return (
     <div style={{ border: '1px solid lightgrey', padding: '12px' }}>
       <h2>Not found (/)</h2>;
+      <ClientErrorDebugTools />
     </div>
   );
 }
diff --git a/packages/e2e-tests/test-applications/nextjs-app-dir/app/server-component/not-found/page.tsx b/packages/e2e-tests/test-applications/nextjs-app-dir/app/server-component/not-found/page.tsx
new file mode 100644
index 000000000000..c88c2d097d4f
--- /dev/null
+++ b/packages/e2e-tests/test-applications/nextjs-app-dir/app/server-component/not-found/page.tsx
@@ -0,0 +1,7 @@
+import { notFound } from 'next/navigation';
+
+export const dynamic = 'force-dynamic';
+
+export default function Page() {
+  notFound();
+}
diff --git a/packages/e2e-tests/test-applications/nextjs-app-dir/app/server-component/redirect/page.tsx b/packages/e2e-tests/test-applications/nextjs-app-dir/app/server-component/redirect/page.tsx
new file mode 100644
index 000000000000..3df1746a97ff
--- /dev/null
+++ b/packages/e2e-tests/test-applications/nextjs-app-dir/app/server-component/redirect/page.tsx
@@ -0,0 +1,7 @@
+import { redirect } from 'next/navigation';
+
+export const dynamic = 'force-dynamic';
+
+export default function Page() {
+  redirect('/');
+}
diff --git a/packages/e2e-tests/test-applications/nextjs-app-dir/tests/transactions.test.ts b/packages/e2e-tests/test-applications/nextjs-app-dir/tests/transactions.test.ts
index 5ef4e6f28b5f..8dac4e58e5ba 100644
--- a/packages/e2e-tests/test-applications/nextjs-app-dir/tests/transactions.test.ts
+++ b/packages/e2e-tests/test-applications/nextjs-app-dir/tests/transactions.test.ts
@@ -89,4 +89,26 @@ if (process.env.TEST_ENV === 'production') {
       )
       .toBe(200);
   });
+
+  test('Should not set an error status on a server component transaction when it redirects', async ({ page }) => {
+    const serverComponentTransactionPromise = waitForTransaction('nextjs-13-app-dir', async transactionEvent => {
+      return transactionEvent?.transaction === 'Page Server Component (/server-component/redirect)';
+    });
+
+    await page.goto('/server-component/redirect');
+
+    expect((await serverComponentTransactionPromise).contexts?.trace?.status).not.toBe('internal_error');
+  });
+
+  test('Should set a "not_found" status on a server component transaction when notFound() is called', async ({
+    page,
+  }) => {
+    const serverComponentTransactionPromise = waitForTransaction('nextjs-13-app-dir', async transactionEvent => {
+      return transactionEvent?.transaction === 'Page Server Component (/server-component/not-found)';
+    });
+
+    await page.goto('/server-component/not-found');
+
+    expect((await serverComponentTransactionPromise).contexts?.trace?.status).toBe('not_found');
+  });
 }
diff --git a/packages/nextjs/src/common/nextNavigationErrorUtils.ts b/packages/nextjs/src/common/nextNavigationErrorUtils.ts
new file mode 100644
index 000000000000..d4a67791525f
--- /dev/null
+++ b/packages/nextjs/src/common/nextNavigationErrorUtils.ts
@@ -0,0 +1,21 @@
+import { isError } from '@sentry/utils';
+
+/**
+ * Determines whether input is a Next.js not-found error.
+ * https://beta.nextjs.org/docs/api-reference/notfound#notfound
+ */
+export function isNotFoundNavigationError(subject: unknown): boolean {
+  return isError(subject) && (subject as Error & { digest?: unknown }).digest === 'NEXT_NOT_FOUND';
+}
+
+/**
+ * Determines whether input is a Next.js redirect error.
+ * https://beta.nextjs.org/docs/api-reference/redirect#redirect
+ */
+export function isRedirectNavigationError(subject: unknown): boolean {
+  return (
+    isError(subject) &&
+    typeof (subject as Error & { digest?: unknown }).digest === 'string' &&
+    (subject as Error & { digest: string }).digest.startsWith('NEXT_REDIRECT;') // a redirect digest looks like "NEXT_REDIRECT;[redirect path]"
+  );
+}
diff --git a/packages/nextjs/src/server/wrapServerComponentWithSentry.ts b/packages/nextjs/src/server/wrapServerComponentWithSentry.ts
index 12ff9ceb5f72..2c25e8811409 100644
--- a/packages/nextjs/src/server/wrapServerComponentWithSentry.ts
+++ b/packages/nextjs/src/server/wrapServerComponentWithSentry.ts
@@ -2,6 +2,7 @@ import { addTracingExtensions, captureException, getCurrentHub, startTransaction
 import { baggageHeaderToDynamicSamplingContext, extractTraceparentData } from '@sentry/utils';
 import * as domain from 'domain';
 
+import { isNotFoundNavigationError, isRedirectNavigationError } from '../common/nextNavigationErrorUtils';
 import type { ServerComponentContext } from '../common/types';
 
 /**
@@ -45,12 +46,24 @@ export function wrapServerComponentWithSentry<F extends (...args: any[]) => any>
           currentScope.setSpan(transaction);
         }
 
+        const handleErrorCase = (e: unknown): void => {
+          if (isNotFoundNavigationError(e)) {
+            // We don't want to report "not-found"s
+            transaction.setStatus('not_found');
+          } else if (isRedirectNavigationError(e)) {
+            // We don't want to report redirects
+          } else {
+            transaction.setStatus('internal_error');
+            captureException(e);
+          }
+
+          transaction.finish();
+        };
+
         try {
           maybePromiseResult = originalFunction.apply(thisArg, args);
         } catch (e) {
-          transaction.setStatus('internal_error');
-          captureException(e);
-          transaction.finish();
+          handleErrorCase(e);
           throw e;
         }
 
@@ -60,10 +73,8 @@ export function wrapServerComponentWithSentry<F extends (...args: any[]) => any>
             () => {
               transaction.finish();
             },
-            (e: Error) => {
-              transaction.setStatus('internal_error');
-              captureException(e);
-              transaction.finish();
+            e => {
+              handleErrorCase(e);
             },
           );