diff --git a/.changeset/mermaid-stable-svg-html.md b/.changeset/mermaid-stable-svg-html.md
new file mode 100644
index 00000000..bd1a62b0
--- /dev/null
+++ b/.changeset/mermaid-stable-svg-html.md
@@ -0,0 +1,5 @@
+---
+"streamdown": patch
+---
+
+perf: stop re-parsing a Mermaid diagram's SVG every time it re-renders with the same chart
diff --git a/packages/streamdown/__tests__/mermaid-component.test.tsx b/packages/streamdown/__tests__/mermaid-component.test.tsx
index d8f90953..c6de6e8b 100644
--- a/packages/streamdown/__tests__/mermaid-component.test.tsx
+++ b/packages/streamdown/__tests__/mermaid-component.test.tsx
@@ -247,6 +247,21 @@ describe("Mermaid Component", () => {
     });
   });
 
+  it("should keep the rendered SVG node when re-rendering the same chart", async () => {
+    const { container, rerender } = renderWithContext(
+      <Mermaid chart={simpleChart} />
+    );
+
+    await waitFor(() => {
+      expect(container.querySelector('[role="img"] svg')).toBeTruthy();
+    });
+    const svg = container.querySelector('[role="img"] svg');
+
+    rerender(<Mermaid chart={simpleChart} />);
+
+    expect(container.querySelector('[role="img"] svg')).toBe(svg);
+  });
+
   it("should generate unique IDs for multiple charts", async () => {
     const mockRender = vi.fn().mockResolvedValue({
       svg: "<svg><text>Chart</text></svg>",
diff --git a/packages/streamdown/lib/mermaid/index.tsx b/packages/streamdown/lib/mermaid/index.tsx
index d86d350f..6fc5d5a7 100644
--- a/packages/streamdown/lib/mermaid/index.tsx
+++ b/packages/streamdown/lib/mermaid/index.tsx
@@ -1,4 +1,4 @@
-import { useContext, useEffect, useRef, useState } from "react";
+import { useContext, useEffect, useMemo, useRef, useState } from "react";
 import { useDeferredRender } from "../../hooks/use-deferred-render";
 import { StreamdownContext } from "../../index";
 import { useIsCodeFenceIncomplete } from "../block-incomplete-context";
@@ -210,6 +210,11 @@ export const Mermaid = ({
     renderLatest();
   }, [chart, config, retryCount, shouldRender, mermaidPlugin]);
 
+  // Always render the SVG if we have content (either current or last valid)
+  const displaySvg = svgContent || lastValidSvg;
+  // react-dom 19.2 rewrites innerHTML whenever this object's identity changes
+  const svgHtml = useMemo(() => ({ __html: displaySvg }), [displaySvg]);
+
   // Show placeholder when not scheduled to render
   if (!(shouldRender || svgContent || lastValidSvg)) {
     return (
@@ -275,9 +280,6 @@ export const Mermaid = ({
     );
   }
 
-  // Always render the SVG if we have content (either current or last valid)
-  const displaySvg = svgContent || lastValidSvg;
-
   return (
     <div
       className={cn(
@@ -310,7 +312,7 @@ export const Mermaid = ({
             fullscreen ? "size-full items-center" : null
           )}
           // biome-ignore lint/security/noDangerouslySetInnerHtml: "Required for Mermaid"
-          dangerouslySetInnerHTML={{ __html: displaySvg }}
+          dangerouslySetInnerHTML={svgHtml}
           role="img"
         />
       </PanZoom>