diff --git a/.changeset/unlucky-rocks-return.md b/.changeset/unlucky-rocks-return.md
new file mode 100644
index 000000000..d6b9ef847
--- /dev/null
+++ b/.changeset/unlucky-rocks-return.md
@@ -0,0 +1,5 @@
+---
+"@preact/signals": patch
+---
+
+Optimize the performance of prop bindings in Preact
diff --git a/docs/demos/animation/index.tsx b/docs/demos/animation/index.tsx
new file mode 100644
index 000000000..1bbea6a14
--- /dev/null
+++ b/docs/demos/animation/index.tsx
@@ -0,0 +1,140 @@
+import { useEffect } from "preact/hooks";
+import { useSignal, useComputed, Signal } from "@preact/signals";
+import "./style.css";
+import { setFlashingEnabled } from "../render-flasher";
+
+const COUNT = 200;
+const LOOPS = 6;
+
+export default function Animation() {
+	const x = useSignal(0);
+	const y = useSignal(0);
+	const big = useSignal(false);
+	const counter = useSignal(0);
+
+	useEffect(() => {
+		let touch = navigator.maxTouchPoints > 1;
+
+		// set mouse position state on move:
+		function move(e: MouseEvent | TouchEvent) {
+			const pointer = "touches" in e ? e.touches[0] : e;
+			x.value = pointer.clientX;
+			y.value = pointer.clientY - 52;
+		}
+		// holding the mouse down enables big mode:
+		function setBig(e: Event) {
+			big.value = true;
+			e.preventDefault();
+		}
+		function notBig() {
+			big.value = false;
+		}
+		addEventListener(touch ? "touchmove" : "mousemove", move);
+		addEventListener(touch ? "touchstart" : "mousedown", setBig);
+		addEventListener(touch ? "touchend" : "mouseup", notBig);
+
+		let running = true;
+		function tick() {
+			if (running === false) return;
+			counter.value++;
+			requestAnimationFrame(tick);
+		}
+		requestAnimationFrame(tick);
+
+		setFlashingEnabled(false);
+		setTimeout(() => setFlashingEnabled(false), 150);
+
+		return () => {
+			running = false;
+			setFlashingEnabled(true);
+			removeEventListener(touch ? "touchmove" : "mousemove", move);
+			removeEventListener(touch ? "touchstart" : "mousedown", setBig);
+			removeEventListener(touch ? "touchend" : "mouseup", notBig);
+		};
+	}, []);
+
+	const max = useComputed(() => {
+		return (
+			COUNT +
+			Math.round(Math.sin((counter.value / 90) * 2 * Math.PI) * COUNT * 0.5)
+		);
+	});
+
+	let circles = [];
+
+	// the advantage of JSX is that you can use the entirety of JS to "template":
+	for (let i = max.value; i--; ) {
+		circles[i] = (
+			<Circle i={i} x={x} y={y} big={big} max={max} counter={counter} />
+		);
+	}
+
+	return (
+		<div class="animation">
+			<Circle i={0} x={x} y={y} big={big} max={max} counter={counter} label />
+			{circles}
+		</div>
+	);
+}
+
+interface CircleProps {
+	i: number;
+	x: Signal<number>;
+	y: Signal<number>;
+	big: Signal<boolean>;
+	max: Signal<number>;
+	counter: Signal<number>;
+	label?: boolean;
+}
+
+/** Represents a single coloured dot. */
+function Circle({ label, i, x, y, big, max, counter }: CircleProps) {
+	const hue = useComputed(() => {
+		let f = (i / max.value) * LOOPS;
+		return (f * 255 + counter.value * 10) % 255;
+	});
+
+	const offsetX = useComputed(() => {
+		let f = (i / max.value) * LOOPS;
+		let θ = f * 2 * Math.PI;
+		return Math.sin(θ) * (20 + i * 2);
+	});
+
+	const offsetY = useComputed(() => {
+		let f = (i / max.value) * LOOPS;
+		let θ = f * 2 * Math.PI;
+		return Math.cos(θ) * (20 + i * 2);
+	});
+
+	// For testing nested "computeds-only" components (for GC):
+	// 	return <CircleInner {...{ label, x, y, offsetX, offsetY, hue, big }} />;
+	// }
+	// function CircleInner({ label, x, y, offsetX, offsetY, hue, big }) {
+
+	const style = useComputed(() => {
+		let left = (x.value + offsetX.value) | 0;
+		let top = (y.value + offsetY.value) | 0;
+		return `left:${left}px; top:${top}px; border-color:hsl(${hue},100%,50%);`;
+	});
+
+	const cl = useComputed(() => {
+		let cl = "circle";
+		if (label) cl += " label";
+		if (big.value) cl += " big";
+		return cl;
+	});
+
+	return (
+		<div class={cl} style={style}>
+			{label && <Label x={x} y={y} />}
+		</div>
+	);
+}
+
+function Label({ x, y }: { x: Signal<number>; y: Signal<number> }) {
+	return (
+		<span class="label">
+			{x},{y}
+		</span>
+	);
+}
diff --git a/docs/demos/animation/style.css b/docs/demos/animation/style.css
new file mode 100644
index 000000000..22db4db08
--- /dev/null
+++ b/docs/demos/animation/style.css
@@ -0,0 +1,49 @@
+.animation {
+	position: absolute;
+	left: 0;
+	top: 52px;
+	bottom: 0;
+	width: 100%;
+	background: #222;
+	color: #888;
+	text-rendering: optimizeSpeed;
+	touch-action: none;
+	overflow: hidden;
+}
+
+.circle {
+	position: absolute;
+	left: 0;
+	top: 0;
+	width: 8px;
+	height: 8px;
+	margin: -5px 0 0 -5px;
+	border: 2px solid #f00;
+	border-radius: 50%;
+	transform-origin: 50% 50%;
+	transition: all 250ms ease;
+	transition-property: width, height, margin;
+	pointer-events: none;
+	overflow: hidden;
+	font-size: 9px;
+	line-height: 25px;
+	text-indent: 15px;
+	white-space: nowrap;
+
+	&.label {
+		overflow: visible;
+	}
+
+	&.big {
+		width: 24px;
+		height: 24px;
+		margin: -13px 0 0 -13px;
+	}
+
+	& > .label {
+		position: absolute;
+		left: 0;
+		top: 0;
+		z-index: 10;
+	}
+}
diff --git a/docs/demos/index.tsx b/docs/demos/index.tsx
index 28aa34d21..cbbf08bb7 100644
--- a/docs/demos/index.tsx
+++ b/docs/demos/index.tsx
@@ -12,6 +12,7 @@ const demos = {
 	GlobalCounter,
 	DuelingCounters,
 	Nesting: lazy(() => import("./nesting")),
+	Animation: lazy(() => import("./animation")),
 };
 
 function Demos() {
diff --git a/docs/vite.config.ts b/docs/vite.config.ts
index a4982bb34..08a0ebad7 100644
--- a/docs/vite.config.ts
+++ b/docs/vite.config.ts
@@ -21,12 +21,21 @@ function packages(prod: boolean) {
 
 export default defineConfig(env => ({
 	plugins: [
-		preact({
-			exclude: /\breact/,
-		}),
+		process.env.DEBUG
+			? preact({
+					exclude: /\breact/,
+			  })
+			: null,
 		multiSpa(["index.html", "demos/**/*.html"]),
 		unsetPreactAliases(),
 	],
+	esbuild: {
+		jsx: "automatic",
+		jsxImportSource: "preact",
+	},
+	optimizeDeps: {
+		include: ["preact/jsx-runtime", "preact/jsx-dev-runtime"],
+	},
 	build: {
 		polyfillModulePreload: false,
 		cssCodeSplit: false,
diff --git a/packages/preact/src/index.ts b/packages/preact/src/index.ts
index 4185fb53e..47ee32ccc 100644
--- a/packages/preact/src/index.ts
+++ b/packages/preact/src/index.ts
@@ -53,36 +53,6 @@ function createUpdater(updater: () => void) {
 	return s;
 }
 
-// Get a (cached) Signal property updater for an element VNode
-function getElementUpdater(vnode: VNode) {
-	let updater = updaterForComponent.get(vnode) as ElementUpdater;
-	if (!updater) {
-		let signalProps: Array<{ _key: string; _signal: Signal }> = [];
-		updater = createUpdater(() => {
-			let dom = vnode.__e as Element;
-
-			for (let i = 0; i < signalProps.length; i++) {
-				let { _key: prop, _signal: signal } = signalProps[i];
-				let value = signal._value;
-				if (!dom) return;
-				if (prop in dom) {
-					// @ts-ignore-next-line silly
-					dom[prop] = value;
-				} else if (value) {
-					dom.setAttribute(prop, value);
-				} else {
-					dom.removeAttribute(prop);
-				}
-			}
-		}) as ElementUpdater;
-		updater._props = signalProps;
-		updaterForComponent.set(vnode, updater);
-	} else {
-		updater._props.length = 0;
-	}
-	return updater;
-}
-
 /** @todo This may be needed for complex prop value detection. */
 // function isSignalValue(value: any): value is Signal {
 // 	if (typeof value !== "object" || value == null) return false;
@@ -148,34 +118,19 @@ Object.defineProperties(Signal.prototype, {
 /** Inject low-level property/attribute bindings for Signals into Preact's diff */
 hook(OptionsTypes.DIFF, (old, vnode) => {
 	if (typeof vnode.type === "string") {
-		// let orig = vnode.__o || vnode;
-		let props = vnode.props;
-		let updater;
+		let signalProps: Record<string, any> | undefined;
 
+		let props = vnode.props;
 		for (let i in props) {
-			let value = props[i];
 			if (i === "children") continue;
 
+			let value = props[i];
 			if (value instanceof Signal) {
-				// first Signal prop triggers creation/cleanup of the updater:
-				if (!updater) updater = getElementUpdater(vnode);
-				// track which props are Signals for precise updates:
-				updater._props.push({ _key: i, _signal: value });
-				let newUpdater = updater._updater;
-				if (value._updater) {
-					let oldUpdater = value._updater;
-					value._updater = () => {
-						newUpdater();
-						oldUpdater();
-					};
-				} else {
-					value._updater = newUpdater;
-				}
+				if (!signalProps) vnode.__np = signalProps = {};
+				signalProps[i] = value;
 				props[i] = value.peek();
 			}
 		}
-
-		setCurrentUpdater(updater);
 	}
 
 	old(vnode);
@@ -215,19 +170,77 @@ hook(OptionsTypes.CATCH_ERROR, (old, error, vnode, oldVNode) => {
 hook(OptionsTypes.DIFFED, (old, vnode) => {
 	setCurrentUpdater();
 	currentComponent = undefined;
+
+	let dom: Element;
+	let updater: ElementUpdater;
+
+	// vnode._dom is undefined during string rendering,
+	// so we use this to skip prop subscriptions during SSR.
+	if (typeof vnode.type === "string" && (dom = vnode.__e as Element)) {
+		let props = vnode.__np;
+		if (props) {
+			// @ts-ignore-next
+			updater = dom._updater;
+			if (!updater) {
+				updater = createElementUpdater(dom);
+				// @ts-ignore-next
+				dom._updater = updater;
+			}
+			updater!._props = props;
+			setCurrentUpdater(updater);
+			// @ts-ignore-next we're adding an argument here
+			updater._updater(true);
+		}
+	}
 	old(vnode);
 });
 
+// per-element updater for 1+ signal bindings
+function createElementUpdater(dom: Element) {
+	const cache: Record<string, any> = { __proto__: null };
+	const updater = createUpdater((skip?: boolean) => {
+		const props = updater._props;
+		for (let prop in props) {
+			if (prop === "children") continue;
+			let signal = props[prop];
+			if (signal instanceof Signal) {
+				let value = signal.value;
+				let cached = cache[prop];
+				cache[prop] = value;
+				if (skip === true || cached === value) {
+					// this is just a subscribe run, not an update
+				} else if (prop in dom) {
+					// @ts-ignore-next-line silly
+					dom[prop] = value;
+				} else if (value) {
+					dom.setAttribute(prop, value);
+				} else {
+					dom.removeAttribute(prop);
+				}
+			}
+		}
+	}) as ElementUpdater;
+	return updater;
+}
+
 /** Unsubscribe from Signals when unmounting components/vnodes */
 hook(OptionsTypes.UNMOUNT, (old, vnode: VNode) => {
-	let thing = vnode.__c || vnode;
-	const updater = updaterForComponent.get(thing);
+	let component = vnode.__c;
+	const updater = component && updaterForComponent.get(component);
 	if (updater) {
-		updaterForComponent.delete(thing);
-		const signals = updater._deps;
-		if (signals) {
-			signals.forEach(signal => signal._subs.delete(updater));
-			signals.clear();
+		updaterForComponent.delete(component);
+		updater._setCurrent()(true, true);
+	}
+
+	if (typeof vnode.type === "string") {
+		const dom = vnode.__e as Element;
+
+		// @ts-ignore-next
+		const updater = dom._updater;
+		if (updater) {
+			updater._setCurrent()(true, true);
+			// @ts-ignore-next
+			dom._updater = null;
 		}
 	}
 	old(vnode);
diff --git a/packages/preact/src/internal.d.ts b/packages/preact/src/internal.d.ts
index 8ddf8c37c..ce8c688a3 100644
--- a/packages/preact/src/internal.d.ts
+++ b/packages/preact/src/internal.d.ts
@@ -8,6 +8,8 @@ export interface VNode<P = any> extends preact.VNode<P> {
 	__?: VNode;
 	/** The DOM node for this VNode */
 	__e?: Element | Text;
+	/** Props that had Signal values before diffing (used after diffing to subscribe) */
+	__np?: Record<string, any> | null;
 }
 
 export interface ComponentType extends Component {
@@ -18,7 +20,7 @@ export interface ComponentType extends Component {
 export type Updater = Signal<unknown>;
 
 export interface ElementUpdater extends Updater {
-	_props: Array<{ _key: string, _signal: Signal }>;
+	_props: Record<string, any>;
 }
 
 export const enum OptionsTypes {