diff --git a/packages/schema/build.config.ts b/packages/schema/build.config.ts
index 04a306a6c4..49c2520e6f 100644
--- a/packages/schema/build.config.ts
+++ b/packages/schema/build.config.ts
@@ -53,6 +53,7 @@ export default defineBuildConfig({
     'sass-loader',
     'c12',
     'unenv',
+    '@vue/language-core',
     // Implicit
     '@vue/compiler-core',
     '@vue/shared',
diff --git a/packages/schema/package.json b/packages/schema/package.json
index af8b508f11..119738a0a8 100644
--- a/packages/schema/package.json
+++ b/packages/schema/package.json
@@ -42,6 +42,7 @@
     "@vitejs/plugin-vue": "5.0.4",
     "@vitejs/plugin-vue-jsx": "3.1.0",
     "@vue/compiler-core": "3.4.20",
+    "@vue/language-core": "^1.8.27",
     "c12": "1.9.0",
     "esbuild-loader": "4.0.3",
     "h3": "1.11.1",
diff --git a/packages/schema/src/config/typescript.ts b/packages/schema/src/config/typescript.ts
index e2ae05df6f..69e13d5094 100644
--- a/packages/schema/src/config/typescript.ts
+++ b/packages/schema/src/config/typescript.ts
@@ -43,7 +43,7 @@ export default defineUntypedSchema({
 
     /**
      * You can extend generated `.nuxt/tsconfig.json` using this option.
-     * @type {typeof import('pkg-types')['TSConfig']}
+     * @type {0 extends 1 & VueCompilerOptions ? typeof import('pkg-types')['TSConfig'] : typeof import('pkg-types')['TSConfig'] & { vueCompilerOptions?: typeof import('@vue/language-core')['VueCompilerOptions']}}
      */
     tsConfig: {},
 
diff --git a/packages/schema/src/types/hooks.ts b/packages/schema/src/types/hooks.ts
index 72d74aab67..51e06f82d9 100644
--- a/packages/schema/src/types/hooks.ts
+++ b/packages/schema/src/types/hooks.ts
@@ -9,6 +9,7 @@ import type { Compiler, Configuration, Stats } from 'webpack'
 import type { Nitro, NitroConfig } from 'nitropack'
 import type { Schema, SchemaDefinition } from 'untyped'
 import type { RouteLocationRaw } from 'vue-router'
+import type { VueCompilerOptions } from '@vue/language-core'
 import type { NuxtCompatibility, NuxtCompatibilityIssues, ViteConfig } from '..'
 import type { Component, ComponentsOptions } from './components'
 import type { Nuxt, NuxtApp, ResolvedNuxtTemplate } from './nuxt'
@@ -20,6 +21,10 @@ export type TSReference = { types: string } | { path: string }
 
 export type WatchEvent = 'add' | 'addDir' | 'change' | 'unlink' | 'unlinkDir'
 
+// If the user does not have `@vue/language-core` installed, VueCompilerOptions will be typed as `any`,
+// thus making the whole `VueTSConfig` type `any`. We only augment TSConfig if VueCompilerOptions is available. 
+export type VueTSConfig = 0 extends 1 & VueCompilerOptions ? TSConfig : TSConfig & { vueCompilerOptions?: VueCompilerOptions }
+
 export type NuxtPage = {
   name?: string
   path: string
@@ -282,7 +287,7 @@ export interface NuxtHooks {
    * @param options Objects containing `references`, `declarations`, `tsConfig`
    * @returns Promise
    */
-  'prepare:types': (options: { references: TSReference[], declarations: string[], tsConfig: TSConfig }) => HookResult
+  'prepare:types': (options: { references: TSReference[], declarations: string[], tsConfig: VueTSConfig }) => HookResult
   /**
    * Called when the dev server is loading.
    * @param listenerServer The HTTP/HTTPS server object
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index f95d103caf..4db50b5fb6 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -493,6 +493,9 @@ importers:
       '@vue/compiler-core':
         specifier: 3.4.20
         version: 3.4.20
+      '@vue/language-core':
+        specifier: ^1.8.27
+        version: 1.8.27(typescript@5.3.3)
       c12:
         specifier: 1.9.0
         version: 1.9.0