Balancing Server and Client Components is challenging because Server Components excel at data fetching and reducing client bundle size, but lack interactivity, while Client Components handle interactivity but increase bundle size and complexity.
- Server Components cannot use React Context or state hooks, limiting shared state management and requiring new architectural approaches.
- Client Components must be explicitly marked and can only import other Client Components, complicating component dependencies.
- Debugging hydration mismatches and boundary crossing bugs between server and client is frequent and difficult.
- Many popular client-side libraries are incompatible with Server Components, forcing workarounds or client-only wrappers.
- Migrating existing client-heavy apps to hybrid models requires significant refactoring and a shift in mental models.
- Bundler and framework tooling around Server Components is still evolving, causing versioning and stability challenges.
- Performance depends heavily on the correct division of server and client portions; improper splits lead to larger bundles or slower


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