diff --git a/.changeset/perfect-bags-occur.md b/.changeset/perfect-bags-occur.md
new file mode 100644
index 000000000..4c3a94ada
--- /dev/null
+++ b/.changeset/perfect-bags-occur.md
@@ -0,0 +1,26 @@
+---
+'houdini-svelte': patch
+---
+
+Remove generics from script tag before calling svelte preprocessor.
+
+Otherwise it will fail to parse the source if the generics attribute contains angle brackets.
+
+For example this code failed to parse:
+
+```html
+<script lang="ts" generics="T extends Record<string, unknown>">
+
+</script>
+```
+
+Now the `parseSvelte` function will remove the generics attribute before calling the svelte preprocessor
+preserving the token positions in the source code.
+
+The output for the above example will be:
+
+```html
+<script lang="ts"                                             >
+
+</script>
+```
diff --git a/packages/houdini-svelte/src/plugin/extract.test.ts b/packages/houdini-svelte/src/plugin/extract.test.ts
index 261571c2d..c8b98ba1c 100644
--- a/packages/houdini-svelte/src/plugin/extract.test.ts
+++ b/packages/houdini-svelte/src/plugin/extract.test.ts
@@ -54,6 +54,57 @@ describe('parser tests', () => {
 		`)
 	})
 
+	test('happy path - typescript with generics', async () => {
+		const doc = `
+			<script lang="ts" generics="T extends Record<string, unknown>">
+				export let x: T
+			</script>
+		`
+		// parse the string
+		const result = await parseSvelte(doc)
+
+		expect(result?.script).toMatchInlineSnapshot('export let x: T;')
+	})
+
+	test('happy path - typescript with generics over several lines', async () => {
+		const doc = `
+				<script lang="ts" context="module">
+					// eslint-disable-next-line @typescript-eslint/no-unused-vars
+					import type { FormPath, SuperForm } from 'sveltekit-superforms';
+					type T = Record<string, unknown>;
+					type U = unknown;
+				</script>
+				
+				<script
+					lang="ts"
+					generics="T extends Record<string, unknown>, U extends FormPath<T>"
+				>
+					import * as FormPrimitive from 'formsnap';
+					import { cn } from '$lib/utils.js';
+				
+					type $$Props = FormPrimitive.FieldsetProps<T, U>;
+				
+					export let form: SuperForm<T>;
+					export let name: U;
+				
+					let className: $$Props['class'] = undefined;
+					export { className as class };
+				</script>
+			`
+		// parse the string
+		const result = await parseSvelte(doc)
+
+		expect(result?.script).toMatchInlineSnapshot(`
+			import * as FormPrimitive from "formsnap";
+			import { cn } from "$lib/utils.js";
+			type $$Props = FormPrimitive.FieldsetProps<T, U>;
+			export let form: SuperForm<T>;
+			export let name: U;
+			let className: $$Props["class"] = undefined;
+			export { className as class };
+		`)
+	})
+
 	test('nested script block', async () => {
 		const doc = `
 			<div>
diff --git a/packages/houdini-svelte/src/plugin/extract.ts b/packages/houdini-svelte/src/plugin/extract.ts
index a0c9b3371..397a16c39 100644
--- a/packages/houdini-svelte/src/plugin/extract.ts
+++ b/packages/houdini-svelte/src/plugin/extract.ts
@@ -40,6 +40,15 @@ export async function parseSvelte(str: string): Promise<Maybe<EmbeddedScript>> {
 	// parsing a file happens in two steps:
 	// - first we use svelte's parser to find the bounds of the script tag
 	// - then we run the contents through babel to parse it
+
+	// remove generics from script tag — otherwise svelte preprocessor will fail to parse
+	// if the generics attribute contains angle brackets
+	// Input:  <script lang="ts" generics="T extends Record<string, unknown>">
+	// Output: <script lang="ts"                                             >
+	str = str.replace(/(<script[^>]*)(\s+)(generics="[^"]+?")/, (_, $1, $2, $3) => {
+		return $1 + $2 + ' '.repeat($3.length)
+	})
+
 	const preprocessed = await svelte.preprocess(str, [
 		{
 			script({ content: input }) {