diff --git a/packages/loot-core/src/server/sync/batchMessages.test.ts b/packages/loot-core/src/server/sync/batchMessages.test.ts
new file mode 100644
index 00000000000..284cc4e1262
--- /dev/null
+++ b/packages/loot-core/src/server/sync/batchMessages.test.ts
@@ -0,0 +1,147 @@
+import { Timestamp } from '@actual-app/crdt';
+
+import * as db from '../db';
+
+import { batchMessages, sendMessages, setSyncingMode } from './index';
+
+beforeEach(() => {
+  setSyncingMode('disabled');
+  return global.emptyDatabase()();
+});
+
+afterEach(() => {
+  global.resetTime();
+  setSyncingMode('disabled');
+});
+
+describe('batchMessages concurrency', () => {
+  it('preserves nested batch messages when outer batch fails', async () => {
+    // Regression test: nested batch messages must not be silently lost
+    // when the outer batch throws after the inner batch completes.
+    //
+    // Trace: A starts outer batch, sends msgA, yields. B starts nested
+    // batch, sends msgB, completes. A resumes and throws. Fix: messages
+    // are sent before rethrowing.
+
+    let resolveYield: () => void;
+    const yieldPromise = new Promise<void>(resolve => {
+      resolveYield = resolve;
+    });
+
+    let innerBatchReturned = false;
+
+    // Start operation A - it will yield, allowing B to interleave
+    const operationA = batchMessages(async () => {
+      await sendMessages([
+        {
+          dataset: 'transactions',
+          row: 'row-a',
+          column: 'amount',
+          value: 100,
+          timestamp: Timestamp.send(),
+        },
+      ]);
+
+      // Yield to event loop - B will run during this await
+      await yieldPromise;
+
+      // A fails after B has completed
+      throw new Error('operation A failed');
+    });
+
+    global.stepForwardInTime();
+
+    // B runs while A is yielded. IS_BATCHING is true, so B is nested.
+    await batchMessages(async () => {
+      await sendMessages([
+        {
+          dataset: 'transactions',
+          row: 'row-b',
+          column: 'amount',
+          value: 200,
+          timestamp: Timestamp.send(),
+        },
+      ]);
+    });
+    innerBatchReturned = true;
+
+    // Resume A, which will throw
+    resolveYield();
+
+    // A still fails
+    await expect(operationA).rejects.toThrow('operation A failed');
+
+    // B returned successfully
+    expect(innerBatchReturned).toBe(true);
+
+    // FIX: B's message IS applied despite outer batch failure.
+    // All accumulated messages are sent before the error is rethrown.
+    const rowB = await db.first<{ id: string }>(
+      'SELECT * FROM transactions WHERE id = ?',
+      ['row-b'],
+    );
+    expect(rowB).not.toBeNull();
+
+    // A's message is also applied (consistent with non-batched behavior
+    // where each sendMessages call applies immediately)
+    const rowA = await db.first<{ id: string }>(
+      'SELECT * FROM transactions WHERE id = ?',
+      ['row-a'],
+    );
+    expect(rowA).not.toBeNull();
+  });
+
+  it('applies all messages when outer batch succeeds', async () => {
+    let resolveYield: () => void;
+    const yieldPromise = new Promise<void>(resolve => {
+      resolveYield = resolve;
+    });
+
+    const operationA = batchMessages(async () => {
+      await sendMessages([
+        {
+          dataset: 'transactions',
+          row: 'row-a',
+          column: 'amount',
+          value: 100,
+          timestamp: Timestamp.send(),
+        },
+      ]);
+
+      // Yield to event loop
+      await yieldPromise;
+    });
+
+    global.stepForwardInTime();
+
+    // B runs as nested batch
+    await batchMessages(async () => {
+      await sendMessages([
+        {
+          dataset: 'transactions',
+          row: 'row-b',
+          column: 'amount',
+          value: 200,
+          timestamp: Timestamp.send(),
+        },
+      ]);
+    });
+
+    // Resume A (succeeds)
+    resolveYield();
+    await operationA;
+
+    // Both messages should be applied
+    const rowA = await db.first<{ id: string; amount: number }>(
+      'SELECT * FROM transactions WHERE id = ?',
+      ['row-a'],
+    );
+    expect(rowA).not.toBeNull();
+
+    const rowB = await db.first<{ id: string; amount: number }>(
+      'SELECT * FROM transactions WHERE id = ?',
+      ['row-b'],
+    );
+    expect(rowB).not.toBeNull();
+  });
+});
diff --git a/packages/loot-core/src/server/sync/index.ts b/packages/loot-core/src/server/sync/index.ts
index 6cd3ce1c129..502224ff470 100644
--- a/packages/loot-core/src/server/sync/index.ts
+++ b/packages/loot-core/src/server/sync/index.ts
@@ -482,20 +482,43 @@ export async function batchMessages(func: () => Promise<void>): Promise<void> {
 
   IS_BATCHING = true;
   let batched: Message[] = [];
+  let error: Error | undefined;
 
   try {
     await func();
   } catch (e) {
-    void errorHandler(e);
-    throw e;
+    error = e instanceof Error ? e : new Error(String(e));
   } finally {
     IS_BATCHING = false;
     batched = _BATCHED;
     _BATCHED = [];
   }
 
+  // Always send accumulated messages, even if func threw. This prevents
+  // silently losing messages from successfully-completed nested batches
+  // that were coalesced into this outer batch. Without this, if the
+  // outer batch fails, all nested batch messages are discarded even
+  // though their callers received no error. This is consistent with
+  // non-batched behavior where each sendMessages call applies immediately.
   if (batched.length > 0) {
-    await _sendMessages(batched);
+    try {
+      await _sendMessages(batched);
+    } catch (sendError) {
+      // If _sendMessages fails and we already have an error from func(),
+      // preserve the original error since it's the root cause.
+      if (!error) {
+        throw sendError instanceof Error
+          ? sendError
+          : new Error(String(sendError));
+      }
+      captureException(sendError);
+    }
+  }
+
+  if (error) {
+    void errorHandler(error);
+    // eslint-disable-next-line no-throw-literal -- oxlint can't narrow Error|undefined
+    throw error;
   }
 }
 
diff --git a/upcoming-release-notes/7225.md b/upcoming-release-notes/7225.md
new file mode 100644
index 00000000000..0973624d811
--- /dev/null
+++ b/upcoming-release-notes/7225.md
@@ -0,0 +1,6 @@
+---
+category: Bugfix
+authors: [dearlordylord]
+---
+
+Fix batchMessages silently losing nested batch messages when outer batch fails