diff --git a/packages/interactivity/src/init.ts b/packages/interactivity/src/init.ts
index fa1eec51c3e27e..39b6ec508cf439 100644
--- a/packages/interactivity/src/init.ts
+++ b/packages/interactivity/src/init.ts
@@ -29,6 +29,38 @@ export const initialVdom = new WeakMap< Element, ComponentChild[] >();
 
 // Initialize the router with the initial DOM.
 export const init = async () => {
+	const pendingNodes = new Set();
+
+	const intersectionObserver = new window.IntersectionObserver(
+		async ( entries ) => {
+			for ( const entry of entries ) {
+				if ( ! entry.isIntersecting ) {
+					continue;
+				}
+
+				const node = entry.target;
+				intersectionObserver.unobserve( node );
+				pendingNodes.delete( node );
+				if ( pendingNodes.size === 0 ) {
+					intersectionObserver.disconnect();
+				}
+
+				if ( ! hydratedIslands.has( node ) ) {
+					const fragment = getRegionRootFragment( node );
+					const vdom = toVdom( node );
+					await splitTask();
+					hydrate( vdom, fragment );
+					await splitTask();
+				}
+			}
+		},
+		{
+			root: null, // To watch for intersection relative to the device's viewport.
+			rootMargin: '100% 0% 100% 0%', // Intersect when within 1 viewport approaching from top or bottom.
+			threshold: 0.0, // As soon as even one pixel is visible.
+		}
+	);
+
 	const nodes = document.querySelectorAll(
 		`[data-${ directivePrefix }-interactive]`
 	);
@@ -45,13 +77,7 @@ export const init = async () => {
 	} );
 
 	for ( const node of nodes ) {
-		if ( ! hydratedIslands.has( node ) ) {
-			await splitTask();
-			const fragment = getRegionRootFragment( node );
-			const vdom = toVdom( node );
-			initialVdom.set( node, vdom );
-			await splitTask();
-			hydrate( vdom, fragment );
-		}
+		pendingNodes.add( node );
+		intersectionObserver.observe( node );
 	}
 };
diff --git a/test/e2e/specs/interactivity/directive-each.spec.ts b/test/e2e/specs/interactivity/directive-each.spec.ts
index 3c015e63fe4bc1..af49f3ff774990 100644
--- a/test/e2e/specs/interactivity/directive-each.spec.ts
+++ b/test/e2e/specs/interactivity/directive-each.spec.ts
@@ -11,6 +11,15 @@ test.describe( 'data-wp-each', () => {
 
 	test.beforeEach( async ( { interactivityUtils: utils, page } ) => {
 		await page.goto( utils.getLink( 'test/directive-each' ) );
+
+		// Scroll to page bottom to trigger hydration of out-of-viewport interactive regions.
+		await page.evaluate(
+			`window.scrollTo( {
+				top: document.body.scrollHeight,
+				left: 0,
+				behavior: 'instant',
+			} );`
+		);
 	} );
 
 	test.afterAll( async ( { interactivityUtils: utils } ) => {
@@ -509,7 +518,8 @@ test.describe( 'data-wp-each', () => {
 		test( `does not error with non-iterable values: ${ testId }`, async ( {
 			page,
 		} ) => {
-			await expect( page.getByTestId( testId ) ).toBeEmpty();
+			const element = page.getByTestId( testId );
+			await expect( element ).toBeEmpty();
 		} );
 	}