diff --git a/.changeset/smooth-cobras-check.md b/.changeset/smooth-cobras-check.md
new file mode 100644
index 000000000..db65daa72
--- /dev/null
+++ b/.changeset/smooth-cobras-check.md
@@ -0,0 +1,6 @@
+---
+'@livekit/components-react': patch
+'@livekit/components-core': patch
+---
+
+Order transcriptions by data stream initial open time, NOT by first packet arrival time
diff --git a/packages/core/src/components/textStream.test.ts b/packages/core/src/components/textStream.test.ts
new file mode 100644
index 000000000..697cb6b61
--- /dev/null
+++ b/packages/core/src/components/textStream.test.ts
@@ -0,0 +1,195 @@
+import type { Room, TextStreamInfo, TextStreamReader } from 'livekit-client';
+import { afterEach, beforeEach, describe, expect, it, vi } from 'vitest';
+import { ParticipantAgentAttributes } from '../helper';
+import { setupTextStream, type TextStreamData } from './textStream';
+
+const SEGMENT_ATTR = ParticipantAgentAttributes.TranscriptionSegmentId;
+const TOPIC = 'lk.transcription';
+
+type StreamHandler = (
+  reader: TextStreamReader,
+  participantInfo: { identity: string },
+) => void | Promise<void>;
+
+/**
+ * An async-iterable stand-in for a `TextStreamReader` whose text only flows once `release()`
+ * is called. This lets a test open several streams (capturing their first-received time) and
+ * then deliver their text in a different order than they were opened.
+ */
+class ControllableStream {
+  info: TextStreamInfo;
+  private chunks: string[];
+  private gate: Promise<void>;
+  private openGate!: () => void;
+
+  constructor(info: TextStreamInfo, chunks: string[]) {
+    this.info = info;
+    this.chunks = chunks;
+    this.gate = new Promise<void>((resolve) => {
+      this.openGate = resolve;
+    });
+  }
+
+  /** Let this stream's text start flowing. */
+  release() {
+    this.openGate();
+  }
+
+  async *[Symbol.asyncIterator]() {
+    await this.gate;
+    for (const chunk of this.chunks) {
+      yield chunk;
+    }
+  }
+}
+
+function transcriptionInfo(id: string, segmentId: string, timestamp: number): TextStreamInfo {
+  return {
+    id,
+    topic: TOPIC,
+    timestamp,
+    mimeType: 'text/plain',
+    attributes: { [SEGMENT_ATTR]: segmentId },
+  } as unknown as TextStreamInfo;
+}
+
+function createMockRoom() {
+  let handler: StreamHandler | undefined;
+  const room = {
+    registerTextStreamHandler: (_topic: string, cb: StreamHandler) => {
+      handler = cb;
+    },
+    unregisterTextStreamHandler: () => {
+      handler = undefined;
+    },
+    on: () => room,
+    off: () => room,
+  };
+  return {
+    room: room as unknown as Room,
+    open(stream: ControllableStream, identity: string) {
+      if (!handler) throw new Error('no text stream handler registered yet');
+      return handler(stream as unknown as TextStreamReader, { identity });
+    },
+  };
+}
+
+/** Let queued microtasks (async-iterator pulls) settle. */
+const flush = () => new Promise((resolve) => setTimeout(resolve, 0));
+
+describe('setupTextStream ordering', () => {
+  let now = 0;
+
+  beforeEach(() => {
+    now = 1_000;
+    vi.spyOn(Date, 'now').mockImplementation(() => now);
+  });
+
+  afterEach(() => {
+    vi.restoreAllMocks();
+  });
+
+  it('orders by first receipt of the segment, not by when its text finishes streaming (issue #1280)', async () => {
+    const { room, open } = createMockRoom();
+    const emissions: Array<Array<TextStreamData>> = [];
+    const sub = setupTextStream(room, TOPIC).subscribe((streams) => emissions.push(streams));
+
+    // The user speaks first, so their transcription stream is opened first...
+    now = 1_000;
+    const user = new ControllableStream(transcriptionInfo('user-1', 'seg-user', 1_000), ['Hello']);
+    open(user, 'user');
+
+    // ...then the agent replies, opening its stream a moment later.
+    now = 2_000;
+    const agent = new ControllableStream(transcriptionInfo('agent-1', 'seg-agent', 2_000), [
+      'Hi there!',
+    ]);
+    open(agent, 'agent');
+
+    // But the agent's text streams in immediately while the user's transcript lags behind.
+    agent.release();
+    await flush();
+    user.release();
+    await flush();
+
+    const final = emissions.at(-1)!;
+    expect(final.map((s) => s.participantInfo.identity)).toEqual(['user', 'agent']);
+    expect(final.map((s) => s.text)).toEqual(['Hello', 'Hi there!']);
+
+    sub.unsubscribe();
+  });
+
+  it('orders by local first-received time, not the sender-stamped timestamp (DL clock drift)', async () => {
+    const { room, open } = createMockRoom();
+    const emissions: Array<Array<TextStreamData>> = [];
+    const sub = setupTextStream(room, TOPIC).subscribe((streams) => emissions.push(streams));
+
+    // First message opened locally, but its sender's clock is running far ahead (timestamp 9000).
+    now = 1_000;
+    const first = new ControllableStream(transcriptionInfo('first-1', 'seg-first', 9_000), [
+      'first',
+    ]);
+    open(first, 'participant-a');
+
+    // Second message opened locally later, but carries an earlier sender timestamp (1000).
+    now = 2_000;
+    const second = new ControllableStream(transcriptionInfo('second-1', 'seg-second', 1_000), [
+      'second',
+    ]);
+    open(second, 'participant-b');
+
+    // Deliver text in reverse order of opening. Insertion order would give [second, first];
+    // sorting by the sender timestamp would also give [second, first]. Only first-received
+    // ordering yields the chronological [first, second].
+    second.release();
+    await flush();
+    first.release();
+    await flush();
+
+    const final = emissions.at(-1)!;
+    expect(final.map((s) => s.text)).toEqual(['first', 'second']);
+
+    sub.unsubscribe();
+  });
+
+  it('keeps a transcription in place (and updates its text) when a later segment update arrives', async () => {
+    const { room, open } = createMockRoom();
+    const emissions: Array<Array<TextStreamData>> = [];
+    const sub = setupTextStream(room, TOPIC).subscribe((streams) => emissions.push(streams));
+
+    // A transcription segment is created first.
+    now = 1_000;
+    const create = new ControllableStream(transcriptionInfo('seg-a-create', 'seg-a', 1_000), [
+      'partial',
+    ]);
+    open(create, 'speaker');
+    create.release();
+    await flush();
+
+    // A second, unrelated transcription opens afterwards.
+    now = 2_000;
+    const other = new ControllableStream(transcriptionInfo('other-1', 'seg-other', 2_000), [
+      'other',
+    ]);
+    open(other, 'speaker-2');
+    other.release();
+    await flush();
+
+    // Now an update for the first segment arrives much later, as its own stream.
+    now = 5_000;
+    const update = new ControllableStream(transcriptionInfo('seg-a-update', 'seg-a', 5_000), [
+      'partial then final',
+    ]);
+    open(update, 'speaker');
+    update.release();
+    await flush();
+
+    const final = emissions.at(-1)!;
+    // The updated segment must keep its original (earlier) position rather than jumping to the end.
+    expect(final.map((s) => s.participantInfo.identity)).toEqual(['speaker', 'speaker-2']);
+    expect(final[0].text).toBe('partial then final');
+    expect(final[0].streamInfo.attributes?.[SEGMENT_ATTR]).toBe('seg-a');
+
+    sub.unsubscribe();
+  });
+});
diff --git a/packages/core/src/components/textStream.ts b/packages/core/src/components/textStream.ts
index ea3a0db03..d9447b118 100644
--- a/packages/core/src/components/textStream.ts
+++ b/packages/core/src/components/textStream.ts
@@ -7,6 +7,14 @@ export interface TextStreamData {
   text: string;
   participantInfo: { identity: string }; // Replace with the correct type from livekit-client
   streamInfo: TextStreamInfo;
+  /**
+   * Client-side timestamp (ms since epoch) captured the moment this stream was first opened,
+   * before any text arrived. Used for chronological ordering: unlike `streamInfo.timestamp`
+   * (stamped by the sender's clock) this is sampled from a single local clock, so it stays
+   * comparable across streams from different senders, and unlike insertion order it is immune
+   * to text that streams in late.
+   */
+  firstReceivedTime: number;
 }
 
 // Singleton getters for lazy initialization
@@ -56,9 +64,25 @@ export function setupTextStream(room: Room, topic: string): Observable<TextStrea
 
   const textStreamsSubject = new Subject<TextStreamData[]>();
   let textStreams: TextStreamData[] = [];
+  // The first time we become aware of a stream (its header arrives), keyed by the same
+  // identity used for de-duplication below — the transcription segment id when present,
+  // otherwise the stream id. Captured once and never overwritten, so create/update streams
+  // for the same segment share the earliest time.
+  let firstReceivedTimes = new Map<string, number>();
 
   const segmentAttribute = ParticipantAgentAttributes.TranscriptionSegmentId;
 
+  // Emit a snapshot ordered chronologically by when each stream was first opened rather than
+  // by the order in which the first chunk happened to arrive. Streams whose text is delayed
+  // would otherwise sort after streams that streamed immediately, producing out-of-order
+  // transcriptions (e.g. an agent reply appearing before the user utterance it answered).
+  // Array#sort is stable, so streams sharing a timestamp keep their insertion order.
+  const emit = () => {
+    textStreamsSubject.next(
+      textStreams.slice().sort((a, b) => a.firstReceivedTime - b.firstReceivedTime),
+    );
+  };
+
   // Create shared observable and store in cache
   const sharedObservable = textStreamsSubject.pipe(
     tap({
@@ -73,6 +97,16 @@ export function setupTextStream(room: Room, topic: string): Observable<TextStrea
 
           const isTranscription = !!reader.info.attributes?.[segmentAttribute];
 
+          // Capture when this stream was first opened — now, before any text has streamed in —
+          // so ordering is unaffected by how quickly each stream's text arrives.
+          const streamKey =
+            (isTranscription ? reader.info.attributes?.[segmentAttribute] : undefined) ??
+            reader.info.id;
+          if (!firstReceivedTimes.has(streamKey)) {
+            firstReceivedTimes.set(streamKey, Date.now());
+          }
+          const firstReceivedTime = firstReceivedTimes.get(streamKey)!;
+
           // Subscribe to the stream and update our array when new chunks arrive
           streamObservable.subscribe((accumulatedText) => {
             // Find and update the stream in our array
@@ -90,17 +124,18 @@ export function setupTextStream(room: Room, topic: string): Observable<TextStrea
               };
 
               // Emit the updated array
-              textStreamsSubject.next([...textStreams]);
+              emit();
             } else {
               // Handle case where stream ID wasn't found (new stream)
               textStreams.push({
                 text: accumulatedText,
                 participantInfo,
                 streamInfo: reader.info,
+                firstReceivedTime,
               });
 
               // Emit the updated array with the new stream
-              textStreamsSubject.next([...textStreams]);
+              emit();
             }
           });
         });
@@ -118,6 +153,7 @@ export function setupTextStream(room: Room, topic: string): Observable<TextStrea
   room.on(RoomEvent.Disconnected, () => {
     getObservableCache().delete(cacheKey);
     textStreams = [];
+    firstReceivedTimes = new Map();
     textStreamsSubject.next([]);
   });
 
diff --git a/packages/react/src/hooks/useSessionMessages.ts b/packages/react/src/hooks/useSessionMessages.ts
index 9e8617b9b..8bac65954 100644
--- a/packages/react/src/hooks/useSessionMessages.ts
+++ b/packages/react/src/hooks/useSessionMessages.ts
@@ -112,27 +112,45 @@ export function useSessionMessages(session?: UseSessionReturn): UseSessionMessag
     return merged;
   }, [transcriptionMessages, chat.chatMessages]);
 
-  const messageFirstReceivedTimeMapRef = React.useRef(new Map<ReceivedMessage['id'], Date>());
+  // The time each transcription stream was first opened, captured in core before any text
+  // streamed in (keyed by the transcription message id, which is the stream id).
+  const transcriptionFirstReceivedTimes = React.useMemo(() => {
+    const map = new Map<string, number>();
+    for (const transcription of transcriptions) {
+      map.set(transcription.streamInfo.id, transcription.firstReceivedTime);
+    }
+    return map;
+  }, [transcriptions]);
+
+  // Sort by a single client clock rather than the embedded `timestamp` fields, which come from
+  // different clocks for transcriptions (sender) and chat (local) and can drift relative to one
+  // another. For transcriptions we use the stream-open time captured in core, so a transcript
+  // whose text arrives late still orders by when speech began rather than when its text showed
+  // up; chat messages have no such signal and fall back to their first-seen time.
+  const messageFirstReceivedTimeMapRef = React.useRef(new Map<ReceivedMessage['id'], number>());
   const sortedReceivedMessages = React.useMemo(() => {
-    const now = new Date();
+    const now = Date.now();
     for (const message of receivedMessages) {
       if (messageFirstReceivedTimeMapRef.current.has(message.id)) {
         continue;
       }
 
-      messageFirstReceivedTimeMapRef.current.set(message.id, now);
+      messageFirstReceivedTimeMapRef.current.set(
+        message.id,
+        transcriptionFirstReceivedTimes.get(message.id) ?? now,
+      );
     }
 
-    return receivedMessages.sort((a, b) => {
+    return receivedMessages.slice().sort((a, b) => {
       const aFirstReceivedAt = messageFirstReceivedTimeMapRef.current.get(a.id);
       const bFirstReceivedAt = messageFirstReceivedTimeMapRef.current.get(b.id);
       if (typeof aFirstReceivedAt === 'undefined' || typeof bFirstReceivedAt === 'undefined') {
         return 0;
       }
 
-      return aFirstReceivedAt.getTime() - bFirstReceivedAt.getTime();
+      return aFirstReceivedAt - bFirstReceivedAt;
     });
-  }, [receivedMessages]);
+  }, [receivedMessages, transcriptionFirstReceivedTimes]);
 
   const previouslyReceivedMessageIdsRef = React.useRef(new Set());
   React.useEffect(() => {