diff --git a/src/BladeRenderer.php b/src/BladeRenderer.php
index 9a308736..8004b61a 100644
--- a/src/BladeRenderer.php
+++ b/src/BladeRenderer.php
@@ -2,19 +2,22 @@
 
 namespace Livewire\Blaze;
 
+use Closure;
 use Illuminate\Contracts\View\Factory;
 use Illuminate\Support\Arr;
 use Illuminate\Support\Facades\File;
 use Illuminate\View\Compilers\BladeCompiler;
-use Illuminate\View\Component;
 use Illuminate\View\ComponentSlot;
+use Livewire\Blaze\Exceptions\InvalidBlazeFoldUsageException;
 use Livewire\Blaze\Parser\Attribute;
 use Livewire\Blaze\Parser\Nodes\ComponentNode;
 use Livewire\Blaze\Parser\Nodes\SlotNode;
 use Livewire\Blaze\Runtime\BlazeRuntime;
-use Livewire\Blaze\Support\ComponentSource;
 use Livewire\Blaze\Support\Utils;
 use ReflectionClass;
+use ReflectionFunction;
+
+use function Livewire\invade;
 
 /**
  * Handles isolated Blade rendering used during compile-time folding.
@@ -79,6 +82,16 @@ function ($input) {
                     return $input;
                 },
             ],
+            'precompilers' => fn (array $precompilers) => [
+                ...$this->withoutLivewirePrecompilers($precompilers),
+                function (string $input) use ($path) {
+                    if (preg_match('~<\s*livewire[-:]|(?<![@\w])@livewire\b(?=\s*\()~', $input)) {
+                        throw InvalidBlazeFoldUsageException::forLivewire($path);
+                    }
+
+                    return $input;
+                }
+             ],
             'path' => null,
             'forElseCounter' => 0,
             'firstCaseInSwitch' => true,
@@ -173,10 +186,12 @@ protected function freezeObjectProperties(object|string $object, array $properti
 
             $property = $reflection->getProperty($name);
 
-            $frozen[$name] = $property->getValue(is_object($object) ? $object : null);
+            $currentValue = $property->getValue(is_object($object) ? $object : null);
+
+            $frozen[$name] = $currentValue;
 
             if (! is_numeric($key)) {
-                $property->setValue($object, $value);
+                $property->setValue($object, $value instanceof Closure ? $value($currentValue) : $value);
             }
         }
 
@@ -187,4 +202,39 @@ protected function freezeObjectProperties(object|string $object, array $properti
             }
         };
     }
+
+    /**
+     * Filter out Livewire-specific precompilers.
+     */
+    protected function withoutLivewirePrecompilers(array $precompilers): array
+    {
+        if (! class_exists(\Livewire\Livewire::class)) {
+            return $precompilers;
+        }
+
+        $livewireOnlyPrecompilers = class_exists(\Livewire\Mechanisms\ExtendBlade\ExtendBlade::class)
+            ? invade(app(\Livewire\Mechanisms\ExtendBlade\ExtendBlade::class))->precompilers
+            : [];
+
+        return Arr::where($precompilers, function ($precompiler) use ($livewireOnlyPrecompilers) {
+            if ($precompiler instanceof \Livewire\Mechanisms\CompileLivewireTags\LivewireTagPrecompiler) {
+                return false;
+            }
+
+            if (in_array($precompiler, $livewireOnlyPrecompilers, true)) {
+                return false;
+            }
+
+            if ($precompiler instanceof Closure && in_array((new ReflectionFunction($precompiler))->getClosureScopeClass()?->getName(), [
+                \Livewire\Features\SupportCompiledWireKeys\SupportCompiledWireKeys::class,
+                \Livewire\Features\SupportMorphAwareBladeCompilation\SupportMorphAwareBladeCompilation::class,
+                \Livewire\Mechanisms\ExtendBlade\ExtendBlade::class,
+                \Livewire\LivewireServiceProvider::class,
+            ], true)) {
+                return false;
+            }
+
+            return true;
+        });
+    }
 }
diff --git a/src/Exceptions/InvalidBlazeFoldUsageException.php b/src/Exceptions/InvalidBlazeFoldUsageException.php
index e2aae66b..b71a9419 100644
--- a/src/Exceptions/InvalidBlazeFoldUsageException.php
+++ b/src/Exceptions/InvalidBlazeFoldUsageException.php
@@ -127,4 +127,12 @@ public static function forOnce(string $componentPath): self
         );
     }
 
+    public static function forLivewire(string $componentPath): self
+    {
+        return new self(
+            $componentPath,
+            '<livewire:|@livewire',
+            'Components with livewire components should not use @blaze fold as Livewire components maintain runtime state'
+        );
+    }
 }
diff --git a/src/Folder/Folder.php b/src/Folder/Folder.php
index 8643bc82..e87c0613 100644
--- a/src/Folder/Folder.php
+++ b/src/Folder/Folder.php
@@ -232,6 +232,8 @@ protected function checkProblematicPatterns(ComponentSource $source): void
             'auth\\(\\)' => 'forAuth',
             'request\\(\\)' => 'forRequest',
             'old\\(' => 'forOld',
+            '<livewire:' => 'forLivewire',
+            '@livewire' => 'forLivewire',
         ];
 
         foreach ($problematicPatterns as $pattern => $factoryMethod) {
diff --git a/tests/Folder/FolderTest.php b/tests/Folder/FolderTest.php
index c0a0889b..8dfa1849 100644
--- a/tests/Folder/FolderTest.php
+++ b/tests/Folder/FolderTest.php
@@ -301,7 +301,7 @@
 
     expect(fn () => app(Folder::class)->fold($node))
         ->toThrow(InvalidBlazeFoldUsageException::class);
-})->with(['errors', 'session', 'error', 'csrf', 'auth', 'request', 'old', 'once']);
+})->with(['errors', 'session', 'error', 'csrf', 'auth', 'request', 'old', 'once', 'livewire', 'livewire-directive', 'livewire-wrapped']);
 
 test('does not fold components with slots wrapped in directives', function () {
     $input = '<x-foldable.card>@if(false)<x-slot:header>Header</x-slot:header>@endif</x-foldable.card>';
diff --git a/tests/fixtures/views/components/invalid-foldable/livewire-directive.blade.php b/tests/fixtures/views/components/invalid-foldable/livewire-directive.blade.php
new file mode 100644
index 00000000..6b849516
--- /dev/null
+++ b/tests/fixtures/views/components/invalid-foldable/livewire-directive.blade.php
@@ -0,0 +1,3 @@
+@blaze(fold: true)
+
+@livewire('counter')
diff --git a/tests/fixtures/views/components/invalid-foldable/livewire-wrapped.blade.php b/tests/fixtures/views/components/invalid-foldable/livewire-wrapped.blade.php
new file mode 100644
index 00000000..0cf8c29f
--- /dev/null
+++ b/tests/fixtures/views/components/invalid-foldable/livewire-wrapped.blade.php
@@ -0,0 +1,3 @@
+@blaze(fold: true)
+
+<x-invalid-foldable.livewire />
diff --git a/tests/fixtures/views/components/invalid-foldable/livewire.blade.php b/tests/fixtures/views/components/invalid-foldable/livewire.blade.php
new file mode 100644
index 00000000..072db7aa
--- /dev/null
+++ b/tests/fixtures/views/components/invalid-foldable/livewire.blade.php
@@ -0,0 +1,3 @@
+@blaze(fold: true)
+
+<livewire:counter />