diff --git a/.changeset/fix-lane-derivation-prev-3955.md b/.changeset/fix-lane-derivation-prev-3955.md
new file mode 100644
index 000000000..80df8ebd4
--- /dev/null
+++ b/.changeset/fix-lane-derivation-prev-3955.md
@@ -0,0 +1,5 @@
+---
+"@solidjs/signals": patch
+---
+
+A `createSignal(fn)` or `createMemo(fn)` derivation that reads `latest()` or `isPending()` of a signal an in-flight async memo is holding receives its previous value as `prev` on every re-run under the hold. When its first pass under the hold was equal to the previous value, the next pass received an empty internal marker instead, so `(prev = []) => [...prev]` threw `prev is not iterable` and halted the reactive system.
diff --git a/packages/signals/src/core/core.ts b/packages/signals/src/core/core.ts
index a16a7cdc6..d162fbf42 100644
--- a/packages/signals/src/core/core.ts
+++ b/packages/signals/src/core/core.ts
@@ -374,12 +374,12 @@ export function recompute(el: Computed<any>, create: boolean = false): void {
   // — here, the finally below, updateIfNecessary — carries it (#3543).
   el._flags = REACTIVE_RECOMPUTING_DEPS | (el._flags & REACTIVE_ZOMBIE);
   el._time = clock;
-  // The pass's previous value: its staging, else the lane's value for a
-  // lane's node (lanes.ts), else the committed one.
+  // The pass's previous value: its staging, else a lane node's lane value
+  // when it has one (lanes.ts), else the committed one.
   let value =
     el._pendingValue !== NOT_PENDING
       ? el._pendingValue
-      : el._config & CONFIG_OVERRIDE
+      : el._config & CONFIG_OVERRIDE && el._x!._lane !== NOT_PENDING
         ? el._x!._lane
         : el._value;
   let oldHeight = el._height;
diff --git a/packages/signals/tests/held-latest-derivation-prev-3955.test.ts b/packages/signals/tests/held-latest-derivation-prev-3955.test.ts
new file mode 100644
index 000000000..634dcfa64
--- /dev/null
+++ b/packages/signals/tests/held-latest-derivation-prev-3955.test.ts
@@ -0,0 +1,80 @@
+import { afterEach, describe, expect, it } from "vitest";
+import {
+  createMemo,
+  createRenderEffect,
+  createRoot,
+  createSignal,
+  flush,
+  isPending,
+  latest,
+  resetErrorHalt
+} from "../src/index.js";
+
+function deferred<T = void>() {
+  let resolve!: (v: T) => void;
+  const promise = new Promise<T>(r => (resolve = r));
+  return { promise, resolve };
+}
+
+async function tick(n = 4) {
+  for (let i = 0; i < n; i++) await Promise.resolve();
+  flush();
+}
+
+describe("a derivation reading a held signal through latest()/isPending() keeps its prev", () => {
+  afterEach(() => {
+    resetErrorHalt();
+  });
+
+  for (const kind of ["createSignal", "createMemo"] as const) {
+    for (const read of ["latest", "isPending"] as const) {
+      it(`${kind} + ${read}(): an equal pass under the hold does not turn the next pass's prev into NOT_PENDING`, async () => {
+        const prevs: unknown[] = [];
+        const gates = { current: deferred() };
+        let setFilter!: (v: string) => void;
+        let dispose!: () => void;
+        createRoot(d => {
+          dispose = d;
+          const [filter, set] = createSignal("a");
+          setFilter = set;
+          const data = createMemo(async () => {
+            const f = filter();
+            await gates.current.promise;
+            return f;
+          });
+          createRenderEffect(data, () => {});
+          const compute = (prev: string[] = []) => {
+            read === "latest" ? latest(filter) : isPending(filter);
+            prevs.push(prev);
+            return [...prev];
+          };
+          const equals = (a: string[], b: string[]) => a.length === b.length;
+          const names =
+            kind === "createSignal"
+              ? createSignal<string[]>(compute, { equals })[0]
+              : createMemo<string[]>(compute, { equals });
+          createRenderEffect(names, () => {});
+        });
+        flush();
+        const mountGate = gates.current;
+        gates.current = deferred();
+        mountGate.resolve();
+        await tick();
+        expect(prevs).toEqual([[]]);
+
+        setFilter("b");
+        flush();
+        setFilter("c");
+        expect(() => flush()).not.toThrow();
+        await tick();
+        expect(prevs).toEqual([[], [], []]);
+
+        gates.current.resolve();
+        for (let i = 0; i < 4; i++) await Promise.resolve();
+        expect(() => flush()).not.toThrow();
+        expect(prevs).toEqual(read === "isPending" ? [[], [], [], []] : [[], [], []]);
+        dispose();
+      });
+    }
+  }
+});