diff --git a/dev-packages/e2e-tests/test-applications/tanstackstart-react/tests/errors.test.ts b/dev-packages/e2e-tests/test-applications/tanstackstart-react/tests/errors.test.ts
index f5d25febb7a4..bd2832bb5d9b 100644
--- a/dev-packages/e2e-tests/test-applications/tanstackstart-react/tests/errors.test.ts
+++ b/dev-packages/e2e-tests/test-applications/tanstackstart-react/tests/errors.test.ts
@@ -52,6 +52,7 @@ test('Sends server-side function error to Sentry with auto-instrumentation', asy
           value: 'Sentry Server Function Test Error',
           mechanism: {
             handled: false,
+            type: 'auto.function.tanstackstart.server',
           },
         },
       ],
@@ -61,7 +62,7 @@ test('Sends server-side function error to Sentry with auto-instrumentation', asy
   expect(errorEvent.transaction).toBe('/');
 });
 
-test('Sends API route error to Sentry if manually instrumented', async ({ page }) => {
+test('Sends API route error to Sentry with auto-instrumentation', async ({ page }) => {
   const errorEventPromise = waitForError('tanstackstart-react', errorEvent => {
     return errorEvent?.exception?.values?.[0]?.value === 'Sentry API Route Test Error';
   });
@@ -81,7 +82,8 @@ test('Sends API route error to Sentry if manually instrumented', async ({ page }
           type: 'Error',
           value: 'Sentry API Route Test Error',
           mechanism: {
-            handled: true,
+            handled: false,
+            type: 'auto.function.tanstackstart.server',
           },
         },
       ],
diff --git a/packages/tanstackstart-react/src/server/wrapFetchWithSentry.ts b/packages/tanstackstart-react/src/server/wrapFetchWithSentry.ts
index 22d218ef0b48..c0ac4b57a757 100644
--- a/packages/tanstackstart-react/src/server/wrapFetchWithSentry.ts
+++ b/packages/tanstackstart-react/src/server/wrapFetchWithSentry.ts
@@ -1,4 +1,4 @@
-import { SEMANTIC_ATTRIBUTE_SENTRY_OP, SEMANTIC_ATTRIBUTE_SENTRY_ORIGIN, startSpan } from '@sentry/node';
+import { captureException, SEMANTIC_ATTRIBUTE_SENTRY_OP, SEMANTIC_ATTRIBUTE_SENTRY_ORIGIN, startSpan } from '@sentry/node';
 import { extractServerFunctionSha256 } from './utils';
 
 export type ServerEntry = {
@@ -55,12 +55,32 @@ export function wrapFetchWithSentry(serverEntry: ServerEntry): ServerEntry {
               attributes: serverFunctionSpanAttributes,
             },
             () => {
-              return target.apply(thisArg, args);
+              try {
+                return target.apply(thisArg, args);
+              } catch (error) {
+                captureException(error, {
+                  mechanism: {
+                    handled: false,
+                    type: 'auto.function.tanstackstart.server',
+                  },
+                });
+                throw error;
+              }
             },
           );
         }
 
-        return target.apply(thisArg, args);
+        try {
+          return target.apply(thisArg, args);
+        } catch (error) {
+          captureException(error, {
+            mechanism: {
+              handled: false,
+              type: 'auto.function.tanstackstart.server',
+            },
+          });
+          throw error;
+        }
       },
     });
   }