diff --git a/MIGRATION_GUIDE.md b/MIGRATION_GUIDE.md
index 4f403f4e55..ed915a8778 100644
--- a/MIGRATION_GUIDE.md
+++ b/MIGRATION_GUIDE.md
@@ -31,6 +31,7 @@ Looking to upgrade from Sentry SDK 2.x to 3.x? Here's a comprehensive list of wh
 - The option `attach_stacktrace` is now `True` by default, meaning the SDK will attach stack traces to messages.
 - The Django integration now creates spans for cache operations by default. Pass `DjangoIntegration(cache_spans=False)` to `sentry_sdk.init()` to turn them off.
 - The Django integration no longer force-enables cache spans when Spotlight is active and `settings.DEBUG` is `True`. The `cache_spans` option is now always respected as given.
+- Exception groups in exception chains are now properly unfurled.
 
 ### Logging
 
diff --git a/sentry_sdk/utils.py b/sentry_sdk/utils.py
index 5abd52501e..f22ae0db72 100644
--- a/sentry_sdk/utils.py
+++ b/sentry_sdk/utils.py
@@ -865,27 +865,16 @@ def exceptions_from_error(
     seen_exception_ids: "Optional[Set[int]]" = None,
 ) -> "Tuple[int, List[Dict[str, Any]]]":
     """
-    Creates the list of exceptions.
-    This can include chained exceptions and exceptions from an ExceptionGroup.
+    Convert the given exception information into the Sentry "exception" format.
 
-    See the Exception Interface documentation for more details:
-    https://develop.sentry.dev/sdk/event-payloads/exception/
-
-    Args:
-        exception_id (int):
-
-            Sequential counter for assigning ``mechanism.exception_id``
-            to each processed exception. Is NOT the result of calling `id()` on the exception itself.
-
-        parent_id (int):
-
-            The ``mechanism.exception_id`` of the parent exception.
-
-            Written into ``mechanism.parent_id`` in the event payload so Sentry can
-            reconstruct the exception tree.
+    This will return a list of exceptions (a flattened tree of exceptions) in the
+    format of the Exception Interface documentation:
+    https://develop.sentry.dev/sdk/data-model/event-payloads/exception/
 
-            Not to be confused with ``seen_exception_ids``, which tracks Python ``id()``
-            values for cycle detection.
+    This function can handle:
+    - simple exceptions
+    - chained exceptions (raise .. from ..)
+    - exception groups
     """
 
     if seen_exception_ids is None:
@@ -901,7 +890,7 @@ def exceptions_from_error(
         seen_exceptions.append(exc_value)
         seen_exception_ids.add(id(exc_value))
 
-    parent = single_exception_from_error_tuple(
+    base_exception = single_exception_from_error_tuple(
         exc_type=exc_type,
         exc_value=exc_value,
         tb=tb,
@@ -912,70 +901,60 @@ def exceptions_from_error(
         source=source,
         full_stack=full_stack,
     )
-    exceptions = [parent]
+    exceptions = [base_exception]
 
     parent_id = exception_id
     exception_id += 1
 
-    should_supress_context = (
+    causing_exception = None
+    exception_source = None
+
+    should_suppress_context = (
         hasattr(exc_value, "__suppress_context__") and exc_value.__suppress_context__  # type: ignore
     )
-    if should_supress_context:
-        # Add direct cause.
-        # The field `__cause__` is set when raised with the exception (using the `from` keyword).
-        exception_has_cause = (
+    if should_suppress_context:
+        has_explicit_causing_exception = (
             exc_value
             and hasattr(exc_value, "__cause__")
             and exc_value.__cause__ is not None
         )
-        if exception_has_cause:
-            cause = exc_value.__cause__  # type: ignore
-            (exception_id, child_exceptions) = exceptions_from_error(
-                exc_type=type(cause),
-                exc_value=cause,
-                tb=getattr(cause, "__traceback__", None),
-                client_options=client_options,
-                mechanism=mechanism,
-                exception_id=exception_id,
-                source="__cause__",
-                full_stack=full_stack,
-                seen_exceptions=seen_exceptions,
-                seen_exception_ids=seen_exception_ids,
-            )
-            exceptions.extend(child_exceptions)
-
+        if has_explicit_causing_exception:
+            exception_source = "__cause__"
+            causing_exception = exc_value.__cause__  # type: ignore
     else:
-        # Add indirect cause.
-        # The field `__context__` is assigned if another exception occurs while handling the exception.
-        exception_has_content = (
+        has_implicit_causing_exception = (
             exc_value
             and hasattr(exc_value, "__context__")
             and exc_value.__context__ is not None
         )
-        if exception_has_content:
-            context = exc_value.__context__  # type: ignore
-            (exception_id, child_exceptions) = exceptions_from_error(
-                exc_type=type(context),
-                exc_value=context,
-                tb=getattr(context, "__traceback__", None),
-                client_options=client_options,
-                mechanism=mechanism,
-                exception_id=exception_id,
-                source="__context__",
-                full_stack=full_stack,
-                seen_exceptions=seen_exceptions,
-                seen_exception_ids=seen_exception_ids,
-            )
-            exceptions.extend(child_exceptions)
+        if has_implicit_causing_exception:
+            exception_source = "__context__"
+            causing_exception = exc_value.__context__  # type: ignore
+
+    if causing_exception:
+        (exception_id, child_exceptions) = exceptions_from_error(
+            exc_type=type(causing_exception),
+            exc_value=causing_exception,
+            tb=getattr(causing_exception, "__traceback__", None),
+            client_options=client_options,
+            mechanism=mechanism,
+            exception_id=exception_id,
+            parent_id=parent_id,
+            source=exception_source,
+            full_stack=full_stack,
+            seen_exceptions=seen_exceptions,
+            seen_exception_ids=seen_exception_ids,
+        )
+        exceptions.extend(child_exceptions)
 
-    # Add exceptions from an ExceptionGroup.
+    # Add child exceptions from an ExceptionGroup.
     is_exception_group = exc_value and hasattr(exc_value, "exceptions")
     if is_exception_group:
-        for idx, e in enumerate(exc_value.exceptions):  # type: ignore
+        for idx, causing_exception in enumerate(exc_value.exceptions):  # type: ignore
             (exception_id, child_exceptions) = exceptions_from_error(
-                exc_type=type(e),
-                exc_value=e,
-                tb=getattr(e, "__traceback__", None),
+                exc_type=type(causing_exception),
+                exc_value=causing_exception,
+                tb=getattr(causing_exception, "__traceback__", None),
                 client_options=client_options,
                 mechanism=mechanism,
                 exception_id=exception_id,
@@ -996,38 +975,25 @@ def exceptions_from_error_tuple(
     mechanism: "Optional[Dict[str, Any]]" = None,
     full_stack: "Optional[list[dict[str, Any]]]" = None,
 ) -> "List[Dict[str, Any]]":
+    """
+    Convert an exception into Sentry's structured "exception" format.
+
+    See https://develop.sentry.dev/sdk/data-model/event-payloads/exception/
+    This is the entry point for exception handling.
+    """
     exc_type, exc_value, tb = exc_info
 
-    is_exception_group = BaseExceptionGroup is not None and isinstance(
-        exc_value, BaseExceptionGroup
+    _, exceptions = exceptions_from_error(
+        exc_type=exc_type,
+        exc_value=exc_value,
+        tb=tb,
+        client_options=client_options,
+        mechanism=mechanism,
+        exception_id=0,
+        parent_id=0,
+        full_stack=full_stack,
     )
 
-    if is_exception_group:
-        (_, exceptions) = exceptions_from_error(
-            exc_type=exc_type,
-            exc_value=exc_value,
-            tb=tb,
-            client_options=client_options,
-            mechanism=mechanism,
-            exception_id=0,
-            parent_id=0,
-            full_stack=full_stack,
-        )
-
-    else:
-        exceptions = []
-        for exc_type, exc_value, tb in walk_exception_chain(exc_info):
-            exceptions.append(
-                single_exception_from_error_tuple(
-                    exc_type=exc_type,
-                    exc_value=exc_value,
-                    tb=tb,
-                    client_options=client_options,
-                    mechanism=mechanism,
-                    full_stack=full_stack,
-                )
-            )
-
     exceptions.reverse()
 
     return exceptions
diff --git a/tests/integrations/ariadne/test_ariadne.py b/tests/integrations/ariadne/test_ariadne.py
index 616a3b9746..68617ea3d3 100644
--- a/tests/integrations/ariadne/test_ariadne.py
+++ b/tests/integrations/ariadne/test_ariadne.py
@@ -70,7 +70,9 @@ def test_capture_request_and_response_if_send_pii_is_on_async(
     assert len(events) == 1
 
     (event,) = events
-    assert event["exception"]["values"][0]["mechanism"]["type"] == "ariadne"
+    assert len(event["exception"]["values"]) == 2
+    assert event["exception"]["values"][0]["mechanism"]["type"] == "chained"
+    assert event["exception"]["values"][-1]["mechanism"]["type"] == "ariadne"
     assert event["contexts"]["response"] == {
         "data": {
             "data": {"error": None},
@@ -113,7 +115,9 @@ def graphql_server():
     assert len(events) == 1
 
     (event,) = events
-    assert event["exception"]["values"][0]["mechanism"]["type"] == "ariadne"
+    assert len(event["exception"]["values"]) == 2
+    assert event["exception"]["values"][0]["mechanism"]["type"] == "chained"
+    assert event["exception"]["values"][-1]["mechanism"]["type"] == "ariadne"
     assert event["contexts"]["response"] == {
         "data": {
             "data": {"error": None},
@@ -154,7 +158,9 @@ def test_do_not_capture_request_and_response_if_send_pii_is_off_async(
     assert len(events) == 1
 
     (event,) = events
-    assert event["exception"]["values"][0]["mechanism"]["type"] == "ariadne"
+    assert len(event["exception"]["values"]) == 2
+    assert event["exception"]["values"][0]["mechanism"]["type"] == "chained"
+    assert event["exception"]["values"][-1]["mechanism"]["type"] == "ariadne"
     assert "data" not in event["request"]
     assert "response" not in event["contexts"]
 
@@ -184,7 +190,9 @@ def graphql_server():
     assert len(events) == 1
 
     (event,) = events
-    assert event["exception"]["values"][0]["mechanism"]["type"] == "ariadne"
+    assert len(event["exception"]["values"]) == 2
+    assert event["exception"]["values"][0]["mechanism"]["type"] == "chained"
+    assert event["exception"]["values"][-1]["mechanism"]["type"] == "ariadne"
     assert "data" not in event["request"]
     assert "response" not in event["contexts"]
 
diff --git a/tests/integrations/huggingface_hub/test_huggingface_hub.py b/tests/integrations/huggingface_hub/test_huggingface_hub.py
index 5f39d3ff88..be5260f935 100644
--- a/tests/integrations/huggingface_hub/test_huggingface_hub.py
+++ b/tests/integrations/huggingface_hub/test_huggingface_hub.py
@@ -799,8 +799,10 @@ def test_chat_completion_api_error(
 
     (error,) = (item.payload for item in items if item.type == "event")
 
-    assert error["exception"]["values"][0]["mechanism"]["type"] == "huggingface_hub"
-    assert not error["exception"]["values"][0]["mechanism"]["handled"]
+    assert len(error["exception"]["values"]) == 2
+    assert error["exception"]["values"][0]["mechanism"]["type"] == "chained"
+    assert error["exception"]["values"][-1]["mechanism"]["type"] == "huggingface_hub"
+    assert not error["exception"]["values"][-1]["mechanism"]["handled"]
 
     sentry_sdk.flush()
     spans = [item.payload for item in items if item.type == "span"]
diff --git a/tests/integrations/strawberry/test_strawberry.py b/tests/integrations/strawberry/test_strawberry.py
index 29f937598c..182577bef4 100644
--- a/tests/integrations/strawberry/test_strawberry.py
+++ b/tests/integrations/strawberry/test_strawberry.py
@@ -201,7 +201,9 @@ def test_capture_request_if_available_and_send_pii_is_on(
 
     (error_event,) = events
 
-    assert error_event["exception"]["values"][0]["mechanism"]["type"] == "strawberry"
+    assert len(error_event["exception"]["values"]) == 2
+    assert error_event["exception"]["values"][0]["mechanism"]["type"] == "chained"
+    assert error_event["exception"]["values"][-1]["mechanism"]["type"] == "strawberry"
     assert error_event["request"]["api_target"] == "graphql"
     assert error_event["request"]["data"] == {
         "query": query,
@@ -255,7 +257,10 @@ def test_do_not_capture_request_if_send_pii_is_off(
     assert len(events) == 1
 
     (error_event,) = events
-    assert error_event["exception"]["values"][0]["mechanism"]["type"] == "strawberry"
+
+    assert len(error_event["exception"]["values"]) == 2
+    assert error_event["exception"]["values"][0]["mechanism"]["type"] == "chained"
+    assert error_event["exception"]["values"][-1]["mechanism"]["type"] == "strawberry"
     assert "data" not in error_event["request"]
     assert "response" not in error_event["contexts"]
 
@@ -336,7 +341,9 @@ def test_event_processor_data_collection(
     assert len(events) == 1
 
     (error_event,) = events
-    assert error_event["exception"]["values"][0]["mechanism"]["type"] == "strawberry"
+    assert len(error_event["exception"]["values"]) == 2
+    assert error_event["exception"]["values"][0]["mechanism"]["type"] == "chained"
+    assert error_event["exception"]["values"][-1]["mechanism"]["type"] == "strawberry"
 
     # request.data comes from the framework integration and must not be
     # overwritten by the strawberry integration
diff --git a/tests/test_exceptiongroup.py b/tests/test_exceptiongroup.py
index 1290b78a8d..ae476f9c33 100644
--- a/tests/test_exceptiongroup.py
+++ b/tests/test_exceptiongroup.py
@@ -217,7 +217,10 @@ def test_exception_chain_cause():
         {
             "mechanism": {
                 "handled": False,
-                "type": "test_suite",
+                "type": "chained",
+                "exception_id": 1,
+                "parent_id": 0,
+                "source": "__cause__",
             },
             "module": None,
             "type": "TypeError",
@@ -227,6 +230,7 @@ def test_exception_chain_cause():
             "mechanism": {
                 "handled": False,
                 "type": "test_suite",
+                "exception_id": 0,
             },
             "module": None,
             "type": "ValueError",
@@ -257,7 +261,10 @@ def test_exception_chain_context():
         {
             "mechanism": {
                 "handled": False,
-                "type": "test_suite",
+                "type": "chained",
+                "exception_id": 1,
+                "parent_id": 0,
+                "source": "__context__",
             },
             "module": None,
             "type": "TypeError",
@@ -267,6 +274,7 @@ def test_exception_chain_context():
             "mechanism": {
                 "handled": False,
                 "type": "test_suite",
+                "exception_id": 0,
             },
             "module": None,
             "type": "ValueError",
@@ -297,6 +305,7 @@ def test_simple_exception():
             "mechanism": {
                 "handled": False,
                 "type": "test_suite",
+                "exception_id": 0,
             },
             "module": None,
             "type": "ValueError",
@@ -308,6 +317,90 @@ def test_simple_exception():
     assert exception_values == expected_exception_values
 
 
+@minimum_python_311
+def test_exception_group_chained_with_context():
+    try:
+        try:
+            raise ExceptionGroup(
+                "group",
+                [
+                    ValueError("child1"),
+                    ExceptionGroup(
+                        "child2",
+                        [
+                            RuntimeError("grandchild1"),
+                            RuntimeError("grandchild2"),
+                        ],
+                    ),
+                ],
+            )
+        finally:
+            raise TypeError("bar")
+    except BaseException as e:
+        exc = e
+
+    (event, _) = event_from_exception(
+        exc,
+        client_options={
+            "include_local_variables": True,
+            "include_source_context": True,
+            "max_value_length": 1024,
+        },
+        mechanism={"type": "test_suite", "handled": False},
+    )
+
+    exception_values = event["exception"]["values"]
+
+    # innermost (oldest) to outermost (newest)
+    assert [(e["type"], e["value"]) for e in exception_values] == [
+        ("RuntimeError", "grandchild2"),
+        ("RuntimeError", "grandchild1"),
+        ("ExceptionGroup", "child2"),
+        ("ValueError", "child1"),
+        ("ExceptionGroup", "group"),
+        ("TypeError", "bar"),
+    ]
+
+    # TypeError("bar") is the outermost exception (exception_id=0)
+    type_error = exception_values[-1]
+    assert type_error["mechanism"]["type"] == "test_suite"
+    assert type_error["mechanism"]["exception_id"] == 0
+
+    # ExceptionGroup("group") is the __context__ of TypeError
+    group = exception_values[-2]
+    assert group["mechanism"]["type"] == "chained"
+    assert group["mechanism"]["source"] == "__context__"
+    assert group["mechanism"]["parent_id"] == 0
+    assert group["mechanism"]["is_exception_group"] is True
+
+    group_id = group["mechanism"]["exception_id"]
+
+    # ValueError("child1") and ExceptionGroup("child2") are children of "group"
+    child1 = exception_values[-3]
+    assert child1["type"] == "ValueError"
+    assert child1["mechanism"]["source"] == "exceptions[0]"
+    assert child1["mechanism"]["parent_id"] == group_id
+
+    child2 = exception_values[-4]
+    assert child2["type"] == "ExceptionGroup"
+    assert child2["mechanism"]["source"] == "exceptions[1]"
+    assert child2["mechanism"]["parent_id"] == group_id
+    assert child2["mechanism"]["is_exception_group"] is True
+
+    child2_id = child2["mechanism"]["exception_id"]
+
+    # RuntimeError("grandchild1") and RuntimeError("grandchild2") are children of "child2"
+    rt1 = exception_values[-5]
+    assert rt1["value"] == "grandchild1"
+    assert rt1["mechanism"]["source"] == "exceptions[0]"
+    assert rt1["mechanism"]["parent_id"] == child2_id
+
+    rt2 = exception_values[-6]
+    assert rt2["value"] == "grandchild2"
+    assert rt2["mechanism"]["source"] == "exceptions[1]"
+    assert rt2["mechanism"]["parent_id"] == child2_id
+
+
 @minimum_python_311
 def test_exceptiongroup_starlette_collapse():
     """