diff --git a/packages/server/src/action-seed.js b/packages/server/src/action-seed.js
index 206c4d840..a9a3c5bc9 100644
--- a/packages/server/src/action-seed.js
+++ b/packages/server/src/action-seed.js
@@ -283,31 +283,35 @@ function seedProxy(file, fnName, orig) {
  * here: the facade re-exports it wholesale through its own `export * from`
  * catch-all (#538), so nothing about it needs a decision.
  * @param {string} src
- * @returns {{ names: string[], hasDefault: boolean } }
+ * @returns {{ fnNames: string[], valNames: string[], names: string[], hasDefault: boolean }}
  */
 export function extractExportNames(src) {
-  const names = new Set();
+  const fnNames = new Set();
+  const valNames = new Set();
   let m;
   const reFn = /\bexport\s+(?:async\s+)?function\s*\*?\s+([A-Za-z_$][\w$]*)/g;
-  while ((m = reFn.exec(src))) names.add(m[1]);
-  const reVar = /\bexport\s+(?:const|let|var)\s+([A-Za-z_$][\w$]*)/g;
-  while ((m = reVar.exec(src))) names.add(m[1]);
+  while ((m = reFn.exec(src))) fnNames.add(m[1]);
+  const reFnVar = /\bexport\s+(?:const|let|var)\s+([A-Za-z_$][\w$]*)\s*=\s*(?:async\s*)?(?:function|\([^)]*\)\s*=>|[\w$]+\s*=>)/g;
+  while ((m = reFnVar.exec(src))) fnNames.add(m[1]);
   const reClass = /\bexport\s+(?:abstract\s+)?class\s+([A-Za-z_$][\w$]*)/g;
-  while ((m = reClass.exec(src))) names.add(m[1]);
+  while ((m = reClass.exec(src))) valNames.add(m[1]);
   const reList = /\bexport\s*\{([^}]*)\}/g;
   while ((m = reList.exec(src))) {
     for (const part of m[1].split(',')) {
       const seg = part.trim();
       if (!seg) continue;
-      // `a` or `a as b` (the EXPORTED name is what an importer binds).
       const as = seg.split(/\s+as\s+/);
       const exported = (as[1] || as[0]).trim();
-      if (/^[A-Za-z_$][\w$]*$/.test(exported) && exported !== 'default') names.add(exported);
-      else if (exported === 'default') names.add('__default__');
+      if (/^[A-Za-z_$][\w$]*$/.test(exported) && exported !== 'default') fnNames.add(exported);
+      else if (exported === 'default') fnNames.add('__default__');
     }
   }
-  const hasDefault = /\bexport\s+default\b/.test(src) || names.delete('__default__');
-  return { names: [...names], hasDefault };
+  const reVar = /\bexport\s+(?:const|let|var)\s+([A-Za-z_$][\w$]*)/g;
+  while ((m = reVar.exec(src))) {
+    if (!fnNames.has(m[1])) valNames.add(m[1]);
+  }
+  const hasDefault = /\bexport\s+default\b/.test(src) || fnNames.delete('__default__') || valNames.delete('__default__');
+  return { fnNames: [...fnNames], valNames: [...valNames], names: [...fnNames, ...valNames], hasDefault };
 }
 
 /**
@@ -316,7 +320,7 @@ export function extractExportNames(src) {
  * unwrapped) and re-exports each function through `__actionWrap`.
  * @param {string} origUrl the real module URL, WITHOUT the seed query
  * @param {string} absPath the real module's absolute file path (the hash basis)
- * @param {{ names: string[], hasDefault: boolean }} exports
+ * @param {{ fnNames: string[], valNames: string[], names: string[], hasDefault: boolean }} exports
  * @returns {string}
  */
 function buildFacade(origUrl, absPath, exports) {
@@ -325,18 +329,16 @@ function buildFacade(origUrl, absPath, exports) {
   const file = JSON.stringify(absPath);
   let out = `import * as __orig from ${origSpec};\n`;
   out += `import { __actionWrap as __w } from ${JSON.stringify(SELF_URL)};\n`;
-  // Fail-open catch-all (#535). Re-export every named binding of the real module.
-  // An explicit `export const NAME = __w(...)` below SHADOWS the matching star
-  // binding (an explicit export wins over a star re-export of the same name, with
-  // no SyntaxError), so an enumerated export is still wrapped and seeded. A named
-  // export the `extractExportNames` regex MISSED (exotic syntax, an unusual
-  // re-export form, a codegen-produced export) is NOT enumerated below, so it
-  // flows through this star unwrapped: it resolves and works over a normal RPC,
-  // just is not seeded, instead of being dropped and crashing the importer with
-  // `undefined`. `export *` does not carry `default`, which the explicit default
-  // line below still handles.
   out += `export * from ${origSpec};\n`;
-  for (const n of exports.names) {
+  for (const n of exports.fnNames) {
+    const k = JSON.stringify(n);
+    out += `export function ${n}(...args) {\n`;
+    out += `  const fn = __w(${file}, ${k}, __orig[${k}]);\n`;
+    out += `  return typeof fn === 'function' ? fn.apply(this, args) : fn;\n`;
+    out += `}\n`;
+    out += `__w(${file}, ${k}, ${n});\n`;
+  }
+  for (const n of exports.valNames) {
     const k = JSON.stringify(n);
     out += `export const ${n} = __w(${file}, ${k}, __orig[${k}]);\n`;
   }
diff --git a/packages/server/test/seed/action-seed-unit.test.js b/packages/server/test/seed/action-seed-unit.test.js
index 326698356..cdb170a3a 100644
--- a/packages/server/test/seed/action-seed-unit.test.js
+++ b/packages/server/test/seed/action-seed-unit.test.js
@@ -72,7 +72,7 @@ test('a star re-export is FACETED, not passed through (#1155)', () => {
     `export async function createTodo(fd) { return fd; }\n`;
   const facade = buildSeedFacade('file:///app/t.server.js', '/app/t.server.js', src);
   assert.ok(facade, 'a star re-export is faceted like any other module');
-  assert.match(facade, /export const createTodo = __w\(/, 'its own export is wrapped, so identity resolves');
+  assert.match(facade, /export (?:const|function) createTodo\b/, 'its own export is wrapped, so identity resolves');
   assert.match(facade, /export \* from "file:\/\/\/app\/t\.server\.js\?webjs-seed-orig"/,
     'the star catch-all carries the re-exported bindings');
 });
@@ -93,7 +93,7 @@ test('the word "export" in a comment does not change how a module loads', () =>
     `export async function submitFeedback(fd) { return fd; }\n`;
   const facade = buildSeedFacade('file:///app/f.server.js', '/app/f.server.js', src);
   assert.ok(facade, 'the module is faceted');
-  assert.match(facade, /export const submitFeedback = __w\(/, 'so its identity registers');
+  assert.match(facade, /export (?:const|function) submitFeedback\b/, 'so its identity registers');
 });
 
 test('a re-exported action keeps the identity of its DEFINING module', () => {
@@ -130,7 +130,7 @@ test('buildSeedFacade emits an export* catch-all so a MISSED export is fail-open
     /export \* from "file:\/\/\/app\/x\.server\.js\?webjs-seed-orig"/,
     'the facade re-exports everything via a star catch-all (the fail-open guard)',
   );
-  assert.match(facade, /export const getUser = __w\(/, 'an enumerated export is still wrapped + seeded');
+  assert.match(facade, /export (?:const|function) getUser\b/, 'an enumerated export is still wrapped + seeded');
   assert.doesNotMatch(
     facade,
     /export const BRAND =/,
diff --git a/packages/server/test/seed/seed-hook.test.js b/packages/server/test/seed/seed-hook.test.js
index 044443d1e..bf344d125 100644
--- a/packages/server/test/seed/seed-hook.test.js
+++ b/packages/server/test/seed/seed-hook.test.js
@@ -21,7 +21,7 @@ import { hashFile } from '../../src/actions.js';
 import { stringify } from '@webjsdev/core';
 
 let dir;
-let actionUrl, utilUrl, exoticUrl;
+let actionUrl, utilUrl, exoticUrl, c1Url, c2Url;
 
 before(async () => {
   dir = mkdtempSync(join(tmpdir(), 'webjs-seedhook-'));
@@ -49,6 +49,24 @@ before(async () => {
   utilUrl = pathToFileURL(util).toString();
   exoticUrl = pathToFileURL(exotic).toString();
 
+  // Circular re-export pair (#1208)
+  const c1 = join(dir, 'c1.server.js');
+  const c2 = join(dir, 'c2.server.js');
+  writeFileSync(
+    c1,
+    `'use server';\n` +
+      `export { helper } from './c2.server.js';\n` +
+      `export async function ring(x) { return x + 1; }\n`,
+  );
+  writeFileSync(
+    c2,
+    `'use server';\n` +
+      `export { ring } from './c1.server.js';\n` +
+      `export async function helper(x) { return x * 2; }\n`,
+  );
+  c1Url = pathToFileURL(c1).toString();
+  c2Url = pathToFileURL(c2).toString();
+
   // Install the global hook BEFORE importing the fixtures (ESM caches by URL).
   await registerActionHooks({ seed: true });
 });
@@ -95,3 +113,12 @@ test('an export the facade regex MISSES flows through the export* catch-all, not
   assert.equal(value, 40, 'the enumerated action still runs and is seeded');
   assert.equal(collector.size, 1, 'the enumerated action seeds; the missed (unwrapped) ones do not');
 });
+
+test('circular re-export between two use-server modules loads without throwing (#1208)', async () => {
+  const mod1 = await import(c1Url);
+  assert.equal(typeof mod1.ring, 'function');
+  assert.equal(typeof mod1.helper, 'function');
+  assert.equal(await mod1.ring(5), 6);
+  assert.equal(await mod1.helper(5), 10);
+});
+
diff --git a/test/bun/action-seed-circular.test.mjs b/test/bun/action-seed-circular.test.mjs
new file mode 100644
index 000000000..875d33655
--- /dev/null
+++ b/test/bun/action-seed-circular.test.mjs
@@ -0,0 +1,46 @@
+/**
+ * Bun parity test for circular re-exports between 'use server' modules (#1208).
+ *
+ * Proves that two 'use server' modules that re-export from each other load
+ * without throwing ReferenceError on Bun as well as Node.
+ */
+import { test } from 'node:test';
+import assert from 'node:assert/strict';
+import { mkdtempSync, rmSync, writeFileSync } from 'node:fs';
+import { tmpdir } from 'node:os';
+import { join } from 'node:path';
+import { pathToFileURL } from 'node:url';
+
+import { installBunSeedPlugin } from '../../packages/server/src/action-seed-bun.js';
+import { seedingEnabled, registerActionHooks } from '../../packages/server/src/action-seed.js';
+
+test('circular re-export between use-server modules loads on Bun / Node (#1208)', async () => {
+  const dir = mkdtempSync(join(tmpdir(), 'webjs-bun-circular-'));
+  try {
+    const c1 = join(dir, 'c1.server.js');
+    const c2 = join(dir, 'c2.server.js');
+    writeFileSync(
+      c1,
+      `'use server';\n` +
+        `export { helper } from './c2.server.js';\n` +
+        `export async function ring(x) { return x + 1; }\n`,
+    );
+    writeFileSync(
+      c2,
+      `'use server';\n` +
+        `export { ring } from './c1.server.js';\n` +
+        `export async function helper(x) { return x * 2; }\n`,
+    );
+
+    if (!seedingEnabled()) await registerActionHooks({ seed: true });
+
+    const c1Url = pathToFileURL(c1).toString();
+    const mod1 = await import(c1Url);
+    assert.equal(typeof mod1.ring, 'function');
+    assert.equal(typeof mod1.helper, 'function');
+    assert.equal(await mod1.ring(10), 11);
+    assert.equal(await mod1.helper(10), 20);
+  } finally {
+    rmSync(dir, { recursive: true, force: true });
+  }
+});