diff --git a/CHANGELOG.md b/CHANGELOG.md
index 1448129559..25b889718c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,12 @@ Motion adheres to [Semantic Versioning](http://semver.org/).
 
 Undocumented APIs should be considered internal and may change without warning.
 
+## [Unreleased]
+
+### Fixed
+
+-   `AnimatePresence`: Fix object-form `initial` values not applied on re-entry after exit completes.
+
 ## [12.38.0] 2026-03-16
 
 ### Added
diff --git a/packages/framer-motion/src/components/AnimatePresence/__tests__/AnimatePresence.test.tsx b/packages/framer-motion/src/components/AnimatePresence/__tests__/AnimatePresence.test.tsx
index cfeda6a164..29a357b154 100644
--- a/packages/framer-motion/src/components/AnimatePresence/__tests__/AnimatePresence.test.tsx
+++ b/packages/framer-motion/src/components/AnimatePresence/__tests__/AnimatePresence.test.tsx
@@ -1502,6 +1502,72 @@ describe("AnimatePresence with custom components", () => {
         expect(enterCustomValues).toContain(1)
     })
 
+    test("Re-entering child with object-form initial resets to initial values when exit was complete", async () => {
+        const opacity = motionValue(1)
+        const opacityChanges: number[] = []
+
+        opacity.on("change", (v) => {
+            opacityChanges.push(v)
+        })
+
+        const Component = ({
+            showA,
+            showB,
+        }: {
+            showA: boolean
+            showB: boolean
+        }) => {
+            return (
+                <AnimatePresence>
+                    {showA && (
+                        <motion.div
+                            key="a"
+                            initial={{ x: 0 }}
+                            animate={{ x: 100 }}
+                            exit={{ x: -100 }}
+                            transition={{ duration: 10 }}
+                        />
+                    )}
+                    {showB && (
+                        <motion.div
+                            key="b"
+                            initial={{ opacity: 0.5 }}
+                            animate={{ opacity: 1 }}
+                            exit={{ opacity: 0 }}
+                            style={{ opacity }}
+                            transition={{ type: false }}
+                        />
+                    )}
+                </AnimatePresence>
+            )
+        }
+
+        const { rerender } = render(<Component showA showB />)
+        await act(async () => {
+            await nextFrame()
+        })
+
+        await act(async () => {
+            rerender(<Component showA={false} showB={false} />)
+        })
+        await act(async () => {
+            await nextFrame()
+        })
+
+        expect(opacity.get()).toBe(0)
+
+        opacityChanges.length = 0
+        await act(async () => {
+            rerender(<Component showA={false} showB />)
+        })
+        await act(async () => {
+            await nextFrame()
+        })
+
+        expect(opacityChanges.length).toBeGreaterThan(0)
+        expect(opacityChanges[0]).toBe(0.5)
+    })
+
     test("Does not get stuck when state changes cause rapid key alternation in mode='wait'", async () => {
         /**
          * Reproduction from #3141: A loading/loaded pattern where
diff --git a/packages/framer-motion/src/motion/features/animation/exit.ts b/packages/framer-motion/src/motion/features/animation/exit.ts
index 5872216ced..a5d3c8b058 100644
--- a/packages/framer-motion/src/motion/features/animation/exit.ts
+++ b/packages/framer-motion/src/motion/features/animation/exit.ts
@@ -25,7 +25,12 @@ export class ExitAnimationFeature extends Feature<unknown> {
             if (this.isExitComplete) {
                 const { initial, custom } = this.node.getProps()
 
-                if (typeof initial === "string") {
+                if (
+                    typeof initial === "string" ||
+                    (typeof initial === "object" &&
+                        initial !== null &&
+                        !Array.isArray(initial))
+                ) {
                     const resolved = resolveVariant(
                         this.node,
                         initial,