diff --git a/.changeset/preserve-layouts-between-child-routes.md b/.changeset/preserve-layouts-between-child-routes.md
new file mode 100644
index 00000000..367f7154
--- /dev/null
+++ b/.changeset/preserve-layouts-between-child-routes.md
@@ -0,0 +1,5 @@
+---
+"@solidjs/router": patch
+---
+
+fix #588: preserve nested route layouts between sibling navigations
diff --git a/src/routers/components.tsx b/src/routers/components.tsx
index 35b01d96..719b07f3 100644
--- a/src/routers/components.tsx
+++ b/src/routers/components.tsx
@@ -2,7 +2,7 @@
 
 import type {Component} from "solid-js";
 import type {JSX} from "@solidjs/web";
-import {createMemo, createRoot, getOwner, onCleanup, runWithOwner, untrack} from "solid-js";
+import {createMemo, createRoot, getOwner, onCleanup, runWithOwner, untrack, Show} from "solid-js";
 import {getRequestEvent, isServer, type RequestEvent} from "@solidjs/web";
 import {
     createRouteContext,
@@ -149,13 +149,11 @@ export function Routes(props: { routerState: RouterContext; branches: () => Bran
 }
 
 const createOutlet = (child: () => RouteContext | undefined) => {
-  return () => {
-    const c = child();
-    if (c) {
-      return <RouteContextObj value={c}>{c.outlet()}</RouteContextObj>;
-    }
-    return undefined;
-  };
+  return () => (
+    <Show when={child()} keyed>
+      {c => <RouteContextObj value={c}>{c.outlet()}</RouteContextObj>}
+    </Show>
+  );
 };
 
 // for data only mode with single flight mutations
diff --git a/test/client-navigation.spec.tsx b/test/client-navigation.spec.tsx
index 6d230705..9b4948a2 100644
--- a/test/client-navigation.spec.tsx
+++ b/test/client-navigation.spec.tsx
@@ -1,7 +1,13 @@
 import { render } from "@solidjs/web";
 import { createEffect, createMemo, Loading } from "solid-js";
 import { vi } from "vitest";
-import { createRouter, memoryHistory, useNavigate, useParams, type Navigator } from "../src/index.js";
+import {
+  createRouter,
+  memoryHistory,
+  useNavigate,
+  useParams,
+  type Navigator
+} from "../src/index.js";
 
 const settle = async (ms = 0) => {
   await new Promise<void>(resolve => queueMicrotask(() => resolve()));
@@ -236,6 +242,62 @@ describe("Client navigation should", () => {
     }
   });
 
+  test("preserve parent layouts when navigating between sibling child routes (#588)", async () => {
+    const div = document.createElement("div");
+    document.body.appendChild(div);
+
+    let mounts = 0;
+    let navigate!: Navigator;
+
+    const Layout = (props: { children?: any }) => {
+      mounts++;
+      navigate = useNavigate();
+      return (
+        <div data-route="layout">
+          layout
+          {props.children}
+        </div>
+      );
+    };
+
+    const Router = createRouter({
+      routes: [
+        {
+          path: "/",
+          component: Layout,
+          children: [
+            { path: "/a", component: () => <div data-route="a">A</div> },
+            { path: "/b", component: () => <div data-route="b">B</div> }
+          ]
+        }
+      ] as const,
+      history: memoryHistory("/a")
+    });
+
+    const dispose = render(() => <Router />, div);
+
+    try {
+      await settle();
+      expect(mounts).toBe(1);
+      expect(div.querySelector('[data-route="a"]')?.textContent).toBe("A");
+
+      navigate("/b");
+      await settle();
+      expect(mounts).toBe(1);
+      expect(div.querySelector('[data-route="b"]')?.textContent).toBe("B");
+      expect(div.querySelector('[data-route="a"]')).toBeNull();
+
+      navigate("/a");
+      await settle();
+      expect(mounts).toBe(1);
+      expect(div.querySelector('[data-route="a"]')?.textContent).toBe("A");
+      expect(div.querySelector('[data-route="b"]')).toBeNull();
+    } finally {
+      dispose();
+      div.remove();
+    }
+  });
+
   test("call preload with the route's own params during navigation", async () => {
     const div = document.createElement("div");
     document.body.appendChild(div);