diff --git a/src/lib/components/transitions/TransitionChild.svelte b/src/lib/components/transitions/TransitionChild.svelte
index 9138b90..1c54ff3 100644
--- a/src/lib/components/transitions/TransitionChild.svelte
+++ b/src/lib/components/transitions/TransitionChild.svelte
@@ -40,16 +40,19 @@
   const dispatch = createEventDispatcher();
 
   let container: HTMLElement | null = null;
-  let state = TreeStates.Visible;
 
   let transitionContext = useTransitionContext();
   let nestingContext = useParentNesting();
+  let state =
+    $transitionContext.initialShow || $$props.unmount !== false
+      ? TreeStates.Visible
+      : TreeStates.Hidden;
 
   let initial = true;
-
   let id = useId();
-
   let isTransitioning = false;
+  $: strategy =
+    $$props.unmount === false ? RenderStrategy.Hidden : RenderStrategy.Unmount;
 
   let nesting: Writable<NestingContextValues> = writable(
     useNesting(() => {
@@ -68,7 +71,7 @@
   $: {
     (() => {
       // If we are in another mode than the Hidden mode then ignore
-      /* if (strategy.value !== RenderStrategy.Hidden) return */
+      if (strategy !== RenderStrategy.Hidden) return;
       if (!id) return;
 
       // Make sure that we are visible
@@ -90,13 +93,15 @@
       .filter((className) => className.trim().length > 1);
   }
 
-  let enterClasses = splitClasses(enter);
-  let enterFromClasses = splitClasses(enterFrom);
-  let enterToClasses = splitClasses(enterTo);
+  $: enterClasses = splitClasses(enter);
+  $: enterFromClasses = splitClasses(enterFrom);
+  $: enterToClasses = splitClasses(enterTo);
 
-  let leaveClasses = splitClasses(leave);
-  let leaveFromClasses = splitClasses(leaveFrom);
-  let leaveToClasses = splitClasses(leaveTo);
+  $: enteredClasses = splitClasses(entered);
+
+  $: leaveClasses = splitClasses(leave);
+  $: leaveFromClasses = splitClasses(leaveFrom);
+  $: leaveToClasses = splitClasses(leaveTo);
 
   let mounted = false;
   onMount(() => (mounted = true));
@@ -120,6 +125,7 @@
           enterClasses,
           enterFromClasses,
           enterToClasses,
+          enteredClasses,
           (reason) => {
             isTransitioning = false;
             if (reason === Reason.Finished) dispatch("afterEnter");
@@ -130,6 +136,7 @@
           leaveClasses,
           leaveFromClasses,
           leaveToClasses,
+          enteredClasses,
           (reason) => {
             isTransitioning = false;
 
diff --git a/src/lib/components/transitions/TransitionRoot.svelte b/src/lib/components/transitions/TransitionRoot.svelte
index 992e399..dd38d37 100644
--- a/src/lib/components/transitions/TransitionRoot.svelte
+++ b/src/lib/components/transitions/TransitionRoot.svelte
@@ -15,6 +15,12 @@
   interface TransitionContextValues {
     show: boolean;
     appear: boolean;
+    // This is not part of base Headless UI, but we need it because TransitionRoot does not render.
+    // In base Headless UI, for a component with unmount=false, the initial state for the Child is
+    // still "visible". It still works, because the parent still is hidden and has display: none
+    // In our version the parent renders nothing, so we need to send down the correct initial state
+    // ourselves.
+    initialShow: boolean;
   }
 
   const TRANSITION_CONTEXT_NAME = "headlessui-transition-context";
@@ -148,6 +154,9 @@
     show,
     openClosedState !== undefined ? $openClosedState : undefined
   );
+
+  let initialShow = shouldShow;
+
   $: {
     shouldShow = computeShow(
       show,
@@ -172,6 +181,7 @@
   $: transitionBag.set({
     show: !!shouldShow,
     appear: appear || !initial,
+    initialShow: !!initialShow,
   });
 
   onMount(() => {
diff --git a/src/lib/utils/transition.ts b/src/lib/utils/transition.ts
index e7b8c2e..fc51bbd 100644
--- a/src/lib/utils/transition.ts
+++ b/src/lib/utils/transition.ts
@@ -62,12 +62,13 @@ export function transition(
   base: string[],
   from: string[],
   to: string[],
+  entered: string[],
   done?: (reason: Reason) => void
 ) {
   let d = disposables();
   let _done = done !== undefined ? once(done) : () => { };
 
-  removeClasses(node);
+  removeClasses(node, ...entered);
   addClasses(node, ...base, ...from);
 
   d.nextFrame(() => {
@@ -77,6 +78,7 @@ export function transition(
     d.add(
       waitForTransition(node, (reason) => {
         removeClasses(node, ...to, ...base);
+        addClasses(node, ...entered);
         return _done(reason);
       })
     );