diff --git a/packages/lexical-yjs/src/SyncCursors.ts b/packages/lexical-yjs/src/SyncCursors.ts
index a55500e930e..ba519b4c475 100644
--- a/packages/lexical-yjs/src/SyncCursors.ts
+++ b/packages/lexical-yjs/src/SyncCursors.ts
@@ -242,19 +242,28 @@ function createRelativePositionV2(
     return createRelativePositionFromTypeIndex(yType, adjustedOffset, assoc);
   } else if (point.type === 'element') {
     invariant($isElementNode(node), 'Element point must be an element node');
-    let i = 0;
+    // `offset` counts lexical children, but the index handed to yjs counts
+    // yjs children, and normalizeNodeContent collapses a run of adjacent
+    // TextNodes into a single XmlText child. Advance a lexical cursor to
+    // `offset` while counting each text run as one yjs child, mirroring
+    // $getNodeAndOffsetV2, which consumes one yjs offset per child and then
+    // skips the remainder of a text run.
+    let yIndex = 0;
+    let lexicalIndex = 0;
     let child = node.getFirstChild();
-    while (child !== null && i < offset) {
+    while (child !== null && lexicalIndex < offset) {
+      let nextSibling = child.getNextSibling();
+      lexicalIndex++;
       if ($isTextNode(child)) {
-        let nextSibling = child.getNextSibling();
         while ($isTextNode(nextSibling)) {
           nextSibling = nextSibling.getNextSibling();
+          lexicalIndex++;
         }
       }
-      i++;
-      child = child.getNextSibling();
+      yIndex++;
+      child = nextSibling;
     }
-    return createRelativePositionFromTypeIndex(yType, i, assoc);
+    return createRelativePositionFromTypeIndex(yType, yIndex, assoc);
   }
   return null;
 }
diff --git a/packages/lexical-yjs/src/__tests__/unit/SyncCursorsV2ElementPoint.test.ts b/packages/lexical-yjs/src/__tests__/unit/SyncCursorsV2ElementPoint.test.ts
new file mode 100644
index 00000000000..cc8316de152
--- /dev/null
+++ b/packages/lexical-yjs/src/__tests__/unit/SyncCursorsV2ElementPoint.test.ts
@@ -0,0 +1,199 @@
+/**
+ * Copyright (c) Meta Platforms, Inc. and affiliates.
+ *
+ * This source code is licensed under the MIT license found in the
+ * LICENSE file in the root directory of this source tree.
+ *
+ */
+import {
+  buildEditorFromExtensions,
+  type LexicalEditorWithDispose,
+} from '@lexical/extension';
+import {
+  $getAnchorAndFocusForUserState,
+  createBindingV2__EXPERIMENTAL,
+  type Provider,
+  type ProviderAwareness,
+  type UserState,
+} from '@lexical/yjs';
+import {
+  $createParagraphNode,
+  $createRangeSelection,
+  $createTextNode,
+  $getRoot,
+  $getSelection,
+  $setSelection,
+  defineExtension,
+  type LexicalEditor,
+} from 'lexical';
+import {
+  $createTestDecoratorNode,
+  TestDecoratorNode,
+} from 'lexical/src/__tests__/utils';
+import {afterEach, assert, describe, expect, test} from 'vitest';
+import {Doc} from 'yjs';
+
+import {syncLexicalSelectionToYjs} from '../../SyncCursors';
+import {$updateYFragment} from '../../SyncV2';
+
+// In collab-v2 a run of adjacent TextNodes is serialized as a single XmlText
+// child (see normalizeNodeContent in SyncV2), so a paragraph whose lexical
+// children are [Text, Text, Decorator] has only two yjs children:
+// [XmlText, XmlElement]. An element-type selection point therefore has to be
+// converted from a lexical child offset into a yjs child index.
+describe('collab-v2 element selection points', () => {
+  const editors: LexicalEditorWithDispose[] = [];
+  afterEach(() => {
+    for (const editor of editors) {
+      editor.dispose();
+    }
+    editors.length = 0;
+  });
+
+  function createAwareness(): {
+    awareness: ProviderAwareness;
+    getState: () => UserState | null;
+  } {
+    let localState: UserState | null = {
+      anchorPos: null,
+      awarenessData: {},
+      color: '#000000',
+      focusPos: null,
+      focusing: true,
+      name: 'test',
+    };
+    return {
+      awareness: {
+        getLocalState: () => localState,
+        getStates: () => new Map(),
+        off: () => {},
+        on: () => {},
+        setLocalState: state => {
+          localState = state;
+        },
+        setLocalStateField: (field, value) => {
+          if (localState !== null) {
+            localState = {...localState, [field]: value};
+          }
+        },
+      } as unknown as ProviderAwareness,
+      getState: () => localState,
+    };
+  }
+
+  function buildBinding() {
+    const editor = buildEditorFromExtensions(
+      defineExtension({
+        $initialEditorState: null,
+        name: '[v2-element-point]',
+        nodes: [TestDecoratorNode],
+      }),
+    );
+    editors.push(editor);
+    const doc = new Doc();
+    const docMap = new Map<string, Doc>([['v2-element-point', doc]]);
+    const binding = createBindingV2__EXPERIMENTAL(
+      editor,
+      'v2-element-point',
+      doc,
+      docMap,
+    );
+    return {binding, doc, editor};
+  }
+
+  function serialize(
+    editor: LexicalEditor,
+    binding: ReturnType<typeof createBindingV2__EXPERIMENTAL>,
+  ) {
+    editor.read(() => {
+      binding.doc.transact(() => {
+        $updateYFragment(
+          binding.doc,
+          binding.root,
+          $getRoot(),
+          binding,
+          new Set(['root']),
+        );
+      });
+    });
+  }
+
+  /**
+   * Put a collapsed element-type selection at `offset` inside the paragraph,
+   * push it through the awareness encoder, and decode it back. The encoded
+   * form is what remote peers receive, so a mismatch here is a remote cursor
+   * rendered at the wrong place.
+   */
+  function roundTripElementOffset(offset: number): {
+    key: null | string;
+    offset: number;
+    paragraphKey: string;
+  } {
+    const {binding, editor} = buildBinding();
+    const {awareness, getState} = createAwareness();
+    const provider = {awareness} as unknown as Provider;
+
+    let paragraphKey = '';
+    editor.update(
+      () => {
+        const paragraph = $createParagraphNode();
+        paragraph.append(
+          $createTextNode('a'),
+          $createTextNode('b').setFormat('bold'),
+          $createTestDecoratorNode(),
+        );
+        $getRoot().clear().append(paragraph);
+        paragraphKey = paragraph.getKey();
+      },
+      {discrete: true},
+    );
+
+    serialize(editor, binding);
+
+    editor.update(
+      () => {
+        const selection = $createRangeSelection();
+        selection.anchor.set(paragraphKey, offset, 'element');
+        selection.focus.set(paragraphKey, offset, 'element');
+        $setSelection(selection);
+      },
+      {discrete: true},
+    );
+
+    editor.read(() => {
+      syncLexicalSelectionToYjs(binding, provider, null, $getSelection());
+    });
+
+    const state = getState();
+    assert(state !== null);
+
+    const decoded = editor.read(() =>
+      $getAnchorAndFocusForUserState(binding, state),
+    );
+    return {
+      key: decoded.anchorKey,
+      offset: decoded.anchorOffset,
+      paragraphKey,
+    };
+  }
+
+  test('an element point before a decorator that follows a text run round trips', () => {
+    // lexical children: [Text 'a', Text 'b', Decorator]; offset 2 is the
+    // caret just before the decorator.
+    const result = roundTripElementOffset(2);
+    expect(result.key).toBe(result.paragraphKey);
+    expect(result.offset).toBe(2);
+  });
+
+  test('an element point at the start round trips', () => {
+    const result = roundTripElementOffset(0);
+    expect(result.key).toBe(result.paragraphKey);
+    expect(result.offset).toBe(0);
+  });
+
+  test('an element point at the end round trips', () => {
+    const result = roundTripElementOffset(3);
+    expect(result.key).toBe(result.paragraphKey);
+    expect(result.offset).toBe(3);
+  });
+});