diff --git a/.changeset/preserve-file-in-transform.md b/.changeset/preserve-file-in-transform.md
new file mode 100644
index 0000000000..f8d94a90b4
--- /dev/null
+++ b/.changeset/preserve-file-in-transform.md
@@ -0,0 +1,5 @@
+---
+'@tanstack/form-core': patch
+---
+
+Preserve `File` and `Blob` values when a form `transform` runs. `mergeAndUpdate` deep-copied the form state and turned these values into empty plain objects, which dropped file attachments whenever a transform (for example merging server validation errors) ran.
diff --git a/packages/form-core/src/utils.ts b/packages/form-core/src/utils.ts
index e87296e418..4557547fea 100644
--- a/packages/form-core/src/utils.ts
+++ b/packages/form-core/src/utils.ts
@@ -700,6 +700,14 @@ export function deepCopy<T>(obj: T): T {
     return new Date(obj.getTime()) as any
   }
 
+  // File extends Blob. Neither can be cloned property by property, so keep the
+  // original reference (they are immutable). Use the type tag instead of
+  // `instanceof` so values created in another realm (e.g. an iframe) match too.
+  const tag = Object.prototype.toString.call(obj)
+  if (tag === '[object Blob]' || tag === '[object File]') {
+    return obj
+  }
+
   if (Array.isArray(obj)) {
     const arrCopy = [] as any[]
     for (let i = 0; i < obj.length; i++) {
diff --git a/packages/form-core/tests/transform.spec.ts b/packages/form-core/tests/transform.spec.ts
index f67b39352c..2dd310bd02 100644
--- a/packages/form-core/tests/transform.spec.ts
+++ b/packages/form-core/tests/transform.spec.ts
@@ -1,4 +1,4 @@
-import { expect, it } from 'vitest'
+import { describe, expect, it } from 'vitest'
 import { FieldApi, FormApi, mergeAndUpdate, mergeForm } from '../src'
 import type { AnyFormState } from '../src'
 
@@ -34,3 +34,76 @@ it('transform option does not invalidate state for the field', () => {
 
   expect(ageField.state.meta.isValid).toBe(false)
 })
+
+describe('transform preserves binary values', () => {
+  const makeFile = (name = 'attachment.txt') =>
+    new File(['payload'], name, { type: 'text/plain' })
+
+  it('should preserve File values when a transform runs', () => {
+    const file = makeFile()
+    const form = new FormApi({ defaultValues: { file } })
+
+    mergeAndUpdate(form, (value) => value)
+
+    expect(form.state.values.file).toBe(file)
+  })
+
+  it('should preserve Blob values when a transform runs', () => {
+    const blob = new Blob(['payload'], { type: 'text/plain' })
+    const form = new FormApi({ defaultValues: { blob } })
+
+    mergeAndUpdate(form, (value) => value)
+
+    expect(form.state.values.blob).toBe(blob)
+  })
+
+  it('should preserve File values that fail instanceof (e.g. other realms)', () => {
+    // A File created in another realm (such as an iframe) is not an instance of
+    // this realm's Blob, but still reports the same type tag.
+    const foreignFile = Object.create(null, {
+      [Symbol.toStringTag]: { value: 'File' },
+    })
+    expect(foreignFile instanceof Blob).toBe(false)
+
+    const form = new FormApi({ defaultValues: { file: foreignFile } })
+
+    mergeAndUpdate(form, (value) => value)
+
+    expect(form.state.values.file).toBe(foreignFile)
+  })
+
+  it('should preserve File values nested in objects and arrays', () => {
+    const first = makeFile('first.txt')
+    const second = makeFile('second.txt')
+    const nested = makeFile('nested.txt')
+    const form = new FormApi({
+      defaultValues: {
+        attachments: [first, second],
+        profile: { avatar: nested },
+      },
+    })
+
+    mergeAndUpdate(form, (value) => value)
+
+    expect(form.state.values.attachments[0]).toBe(first)
+    expect(form.state.values.attachments[1]).toBe(second)
+    expect(form.state.values.profile.avatar).toBe(nested)
+  })
+
+  it('should preserve File values when a transform only merges errors', () => {
+    const file = makeFile()
+    const form = new FormApi({
+      defaultValues: { age: 0, file },
+    })
+    form.mount()
+
+    const state: Partial<AnyFormState> = {
+      errorMap: { onChange: { fields: { age: 'Age is required' } } },
+    }
+    mergeAndUpdate(form, (f) => mergeForm(f, state))
+
+    expect(form.state.values.file).toBe(file)
+    expect(form.state.values.file.name).toBe('attachment.txt')
+    expect(form.state.values.file.size).toBe(7)
+  })
+})