diff --git a/dev-packages/e2e-tests/test-applications/nitro-3/package.json b/dev-packages/e2e-tests/test-applications/nitro-3/package.json
index 99fd417c2a54..85713dccc138 100644
--- a/dev-packages/e2e-tests/test-applications/nitro-3/package.json
+++ b/dev-packages/e2e-tests/test-applications/nitro-3/package.json
@@ -19,7 +19,7 @@
     "@playwright/test": "~1.56.0",
     "@sentry-internal/test-utils": "link:../../../test-utils",
     "@sentry/core": "latest || *",
-    "nitro": "^3.0.260429-beta",
+    "nitro": "^3.0.260522-beta",
     "rolldown": "latest",
     "vite": "latest"
   },
diff --git a/dev-packages/e2e-tests/test-applications/nitro-3/tests/errors.test.ts b/dev-packages/e2e-tests/test-applications/nitro-3/tests/errors.test.ts
index 8e419ac9ba62..673a6e293fab 100644
--- a/dev-packages/e2e-tests/test-applications/nitro-3/tests/errors.test.ts
+++ b/dev-packages/e2e-tests/test-applications/nitro-3/tests/errors.test.ts
@@ -10,22 +10,16 @@ test('Sends an error event to Sentry', async ({ request }) => {
 
   const errorEvent = await errorEventPromise;
 
-  // Nitro wraps thrown errors in an HTTPError with .cause, producing a chained exception
-  expect(errorEvent.exception?.values).toHaveLength(2);
+  expect(errorEvent.exception?.values).toHaveLength(1);
 
-  // The innermost exception (values[0]) is the original thrown error
   expect(errorEvent.exception?.values?.[0]?.type).toBe('Error');
   expect(errorEvent.exception?.values?.[0]?.value).toBe('This is a test error');
   expect(errorEvent.exception?.values?.[0]?.mechanism).toEqual(
     expect.objectContaining({
       handled: false,
-      type: 'auto.function.nitro.captureErrorHook',
+      type: 'auto.http.nitro.onTraceError',
     }),
   );
-
-  // The outermost exception (values[1]) is the HTTPError wrapper
-  expect(errorEvent.exception?.values?.[1]?.type).toBe('HTTPError');
-  expect(errorEvent.exception?.values?.[1]?.value).toBe('This is a test error');
 });
 
 test('Does not send 404 errors to Sentry', async ({ request }) => {
diff --git a/dev-packages/e2e-tests/test-applications/nitro-3/tests/span-nesting.test.ts b/dev-packages/e2e-tests/test-applications/nitro-3/tests/span-nesting.test.ts
index 090f8af36fb2..8a824c4fe429 100644
--- a/dev-packages/e2e-tests/test-applications/nitro-3/tests/span-nesting.test.ts
+++ b/dev-packages/e2e-tests/test-applications/nitro-3/tests/span-nesting.test.ts
@@ -33,17 +33,17 @@ test('Span nesting: h3 middleware spans are children of the srvx request span',
   expect(srvxSpan).toBeDefined();
 
   // All h3 middleware spans should be children of the srvx span
-  const h3Spans = event.spans?.filter(span => span.origin === 'auto.http.nitro.h3');
-  expect(h3Spans?.length).toBeGreaterThanOrEqual(1);
+  const h3MiddlewareSpans = event.spans?.filter(
+    span => span.origin === 'auto.http.nitro.h3' && span.op === 'middleware.nitro',
+  );
+  expect(h3MiddlewareSpans?.length).toBeGreaterThanOrEqual(1);
 
-  for (const span of h3Spans ?? []) {
+  for (const span of h3MiddlewareSpans ?? []) {
     expect(span.parent_span_id).toBe(srvxSpan!.span_id);
   }
 });
 
-test('Span nesting: manual startSpan calls inside route handler are children of the srvx request span', async ({
-  request,
-}) => {
+test('Span nesting: h3 route handler span is a child of the srvx request span', async ({ request }) => {
   const transactionEventPromise = waitForTransaction('nitro-3', event => {
     return event?.transaction === 'GET /api/test-nesting';
   });
@@ -52,10 +52,28 @@ test('Span nesting: manual startSpan calls inside route handler are children of
 
   const event = await transactionEventPromise;
 
-  // Find the srvx request span — this is the parent of all h3 and manual spans
   const srvxSpan = event.spans?.find(span => span.origin === 'auto.http.nitro.srvx' && span.op === 'http.server');
   expect(srvxSpan).toBeDefined();
-  const srvxSpanId = srvxSpan!.span_id;
+
+  const h3HandlerSpan = event.spans?.find(span => span.origin === 'auto.http.nitro.h3' && span.op === 'http.server');
+  expect(h3HandlerSpan).toBeDefined();
+  expect(h3HandlerSpan!.parent_span_id).toBe(srvxSpan!.span_id);
+});
+
+test('Span nesting: manual startSpan calls inside route handler are children of the h3 route handler span', async ({
+  request,
+}) => {
+  const transactionEventPromise = waitForTransaction('nitro-3', event => {
+    return event?.transaction === 'GET /api/test-nesting';
+  });
+
+  await request.get('/api/test-nesting');
+
+  const event = await transactionEventPromise;
+
+  // Find the h3 route handler span
+  const h3HandlerSpan = event.spans?.find(span => span.origin === 'auto.http.nitro.h3' && span.op === 'http.server');
+  expect(h3HandlerSpan).toBeDefined();
 
   // Find the manually created db spans
   const dbSelectSpan = event.spans?.find(span => span.op === 'db' && span.description === 'db.select');
@@ -63,12 +81,9 @@ test('Span nesting: manual startSpan calls inside route handler are children of
   expect(dbSelectSpan).toBeDefined();
   expect(dbInsertSpan).toBeDefined();
 
-  // FIXME: Once nitro's h3 tracing plugin emits a separate span for route handlers (type: "route"),
-  // the db spans should be children of the h3 route handler span, not the srvx span directly.
-  // Currently nitro bypasses h3's ~routes for file-based routing, so h3 only emits middleware spans.
-  // Both db spans should be children of the srvx request span
-  expect(dbSelectSpan!.parent_span_id).toBe(srvxSpanId);
-  expect(dbInsertSpan!.parent_span_id).toBe(srvxSpanId);
+  // Both db spans should be children of the h3 route handler span
+  expect(dbSelectSpan!.parent_span_id).toBe(h3HandlerSpan!.span_id);
+  expect(dbInsertSpan!.parent_span_id).toBe(h3HandlerSpan!.span_id);
 
   // Both db spans should be siblings (same parent)
   expect(dbSelectSpan!.parent_span_id).toBe(dbInsertSpan!.parent_span_id);
@@ -79,49 +94,6 @@ test('Span nesting: manual startSpan calls inside route handler are children of
   expect(serializeSpan!.parent_span_id).toBe(dbInsertSpan!.span_id);
 });
 
-// FIXME: Nitro's file-based routing bypasses h3's ~routes, so h3's tracing plugin never wraps
-// route handlers with type: "route". Once this is fixed upstream or we add our own wrapping,
-// uncomment these tests to verify the h3 route handler span exists and is the parent of manual spans.
-//
-// test('Span nesting: h3 route handler span is a child of the srvx request span', async ({ request }) => {
-//   const transactionEventPromise = waitForTransaction('nitro-3', event => {
-//     return event?.transaction === 'GET /api/test-nesting';
-//   });
-//
-//   await request.get('/api/test-nesting');
-//
-//   const event = await transactionEventPromise;
-//
-//   const srvxSpan = event.spans?.find(span => span.origin === 'auto.http.nitro.srvx' && span.op === 'http.server');
-//   expect(srvxSpan).toBeDefined();
-//
-//   const h3HandlerSpan = event.spans?.find(
-//     span => span.origin === 'auto.http.nitro.h3' && span.op === 'http.server',
-//   );
-//   expect(h3HandlerSpan).toBeDefined();
-//   expect(h3HandlerSpan!.parent_span_id).toBe(srvxSpan!.span_id);
-// });
-//
-// test('Span nesting: manual startSpan calls are children of the h3 route handler span', async ({ request }) => {
-//   const transactionEventPromise = waitForTransaction('nitro-3', event => {
-//     return event?.transaction === 'GET /api/test-nesting';
-//   });
-//
-//   await request.get('/api/test-nesting');
-//
-//   const event = await transactionEventPromise;
-//
-//   const h3HandlerSpan = event.spans?.find(
-//     span => span.origin === 'auto.http.nitro.h3' && span.op === 'http.server',
-//   );
-//   expect(h3HandlerSpan).toBeDefined();
-//
-//   const dbSelectSpan = event.spans?.find(span => span.op === 'db' && span.description === 'db.select');
-//   const dbInsertSpan = event.spans?.find(span => span.op === 'db' && span.description === 'db.insert');
-//   expect(dbSelectSpan!.parent_span_id).toBe(h3HandlerSpan!.span_id);
-//   expect(dbInsertSpan!.parent_span_id).toBe(h3HandlerSpan!.span_id);
-// });
-
 test('Span nesting: middleware spans start before manual spans in the span tree', async ({ request }) => {
   const transactionEventPromise = waitForTransaction('nitro-3', event => {
     return event?.transaction === 'GET /api/test-nesting';