diff --git a/package.json b/package.json
index 6cd4988c3b..d0713ac79d 100644
--- a/package.json
+++ b/package.json
@@ -103,6 +103,7 @@
     "pathe": "2.0.1",
     "pkg-pr-new": "0.0.39",
     "playwright-core": "1.49.1",
+    "rollup": "4.30.1",
     "semver": "7.6.3",
     "sherif": "1.1.1",
     "std-env": "3.8.0",
diff --git a/packages/nuxt/src/core/plugins/virtual.ts b/packages/nuxt/src/core/plugins/virtual.ts
index 80cc119842..2a3f00a3bd 100644
--- a/packages/nuxt/src/core/plugins/virtual.ts
+++ b/packages/nuxt/src/core/plugins/virtual.ts
@@ -42,7 +42,7 @@ export const VirtualFSPlugin = (nuxt: Nuxt, options: VirtualFSPluginOptions) =>
       }
 
       if (importer && RELATIVE_ID_RE.test(id)) {
-        const path = resolve(dirname(withoutPrefix(importer)), id)
+        const path = resolve(dirname(withoutPrefix(decodeURIComponent(importer))), id)
         const resolved = resolveWithExt(path)
         if (resolved) {
           return PREFIX + encodeURIComponent(resolved)
diff --git a/packages/nuxt/test/virtual.test.ts b/packages/nuxt/test/virtual.test.ts
new file mode 100644
index 0000000000..edd386ff9d
--- /dev/null
+++ b/packages/nuxt/test/virtual.test.ts
@@ -0,0 +1,84 @@
+import { describe, expect, it } from 'vitest'
+import type { Nuxt } from '@nuxt/schema'
+import { rollup } from 'rollup'
+
+import { VirtualFSPlugin } from '../src/core/plugins/virtual'
+
+describe('virtual fs plugin', () => {
+  it('should support loading files virtually', async () => {
+    const code = await generateCode('export { foo } from "#build/foo"', {
+      vfs: {
+        '/.nuxt/foo': 'export const foo = "hello world"',
+      },
+    })
+    expect(code).toMatchInlineSnapshot(`
+      "const foo = "hello world";
+
+      export { foo };"
+    `)
+  })
+
+  it('should support loading virtual files by suffix', async () => {
+    const code = await generateCode('export { foo } from "#build/foo"', {
+      mode: 'client',
+      vfs: {
+        '/.nuxt/foo.server.ts': 'export const foo = "foo server file"',
+        '/.nuxt/foo.client.ts': 'export const foo = "foo client file"',
+      },
+    })
+    expect(code).toMatchInlineSnapshot(`
+      "const foo = "foo client file";
+
+      export { foo };"
+    `)
+  })
+
+  it('should support loading files referenced relatively', async () => {
+    const code = await generateCode('export { foo } from "#build/foo"', {
+      vfs: {
+        '/.nuxt/foo': 'export { foo } from "./bar"',
+        '/.nuxt/bar': 'export const foo = "relative import"',
+      },
+    })
+    expect(code).toMatchInlineSnapshot(`
+      "const foo = "relative import";
+
+      export { foo };"
+    `)
+  })
+})
+
+async function generateCode (input: string, options: { mode?: 'client' | 'server', vfs: Record<string, string> }) {
+  const stubNuxt = {
+    options: {
+      extensions: ['.ts', '.js'],
+      alias: {
+        '~': '/',
+        '#build': '/.nuxt',
+      },
+    },
+    vfs: options.vfs,
+  } as unknown as Nuxt
+
+  const bundle = await rollup({
+    input: 'entry.ts',
+    plugins: [
+      {
+        name: 'entry',
+        resolveId (id) {
+          if (id === 'entry.ts') {
+            return id
+          }
+        },
+        load (id) {
+          if (id === 'entry.ts') {
+            return input
+          }
+        },
+      },
+      VirtualFSPlugin(stubNuxt, { mode: options.mode || 'client', alias: stubNuxt.options.alias }).rollup(),
+    ],
+  })
+  const { output: [chunk] } = await bundle.generate({})
+  return chunk.code.trim()
+}
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 3f0a760775..fde9c83d67 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -155,6 +155,9 @@ importers:
       playwright-core:
         specifier: 1.49.1
         version: 1.49.1
+      rollup:
+        specifier: 4.30.1
+        version: 4.30.1
       semver:
         specifier: 7.6.3
         version: 7.6.3