diff --git a/packages/nuxt/src/components/templates.ts b/packages/nuxt/src/components/templates.ts
index 826c84dada..d90909c453 100644
--- a/packages/nuxt/src/components/templates.ts
+++ b/packages/nuxt/src/components/templates.ts
@@ -89,7 +89,7 @@ export const componentsIslandsTemplate: NuxtTemplate<ComponentsTemplateContext>
 
     return [
       'import { defineAsyncComponent } from \'vue\'',
-      'export const islandComponents = {',
+      'export const islandComponents = import.meta.client ? {} : {',
       islands.map(
         (c) => {
           const exp = c.export === 'default' ? 'c.default || c' : `c['${c.export}']`
diff --git a/packages/nuxt/src/core/templates.ts b/packages/nuxt/src/core/templates.ts
index e36c944987..1d4797cb26 100644
--- a/packages/nuxt/src/core/templates.ts
+++ b/packages/nuxt/src/core/templates.ts
@@ -40,7 +40,9 @@ export const appComponentTemplate: NuxtTemplate<TemplateContext> = {
 // TODO: Use an alias
 export const rootComponentTemplate: NuxtTemplate<TemplateContext> = {
   filename: 'root-component.mjs',
-  getContents: ctx => genExport(ctx.app.rootComponent!, ['default'])
+  // TODO: fix upstream in vite - this ensures that vite generates a module graph for islands
+  // but should not be necessary (and has a warmup performance cost). See https://github.com/nuxt/nuxt/pull/24584.
+  getContents: ctx => (ctx.nuxt.options.dev ? "import '#build/components.islands.mjs';\n" : '') + genExport(ctx.app.rootComponent!, ['default'])
 }
 // TODO: Use an alias
 export const errorComponentTemplate: NuxtTemplate<TemplateContext> = {
diff --git a/test/fixtures/basic/components/islands/HmrComponent.vue b/test/fixtures/basic/components/islands/HmrComponent.vue
new file mode 100644
index 0000000000..cbfae371e7
--- /dev/null
+++ b/test/fixtures/basic/components/islands/HmrComponent.vue
@@ -0,0 +1,9 @@
+<script lang="ts" setup>
+const hmrId = ref(0)
+</script>
+
+<template>
+  <pre id="hmr-id">
+    HMR ID: {{ hmrId }}
+  </pre>
+</template>
diff --git a/test/fixtures/basic/pages/server-component-hmr.vue b/test/fixtures/basic/pages/server-component-hmr.vue
new file mode 100644
index 0000000000..ad37a3b86d
--- /dev/null
+++ b/test/fixtures/basic/pages/server-component-hmr.vue
@@ -0,0 +1,5 @@
+<template>
+  <div>
+    <NuxtIsland name="HmrComponent" />
+  </div>
+</template>
diff --git a/test/hmr.test.ts b/test/hmr.test.ts
index 59a9b743c3..3a282c6b82 100644
--- a/test/hmr.test.ts
+++ b/test/hmr.test.ts
@@ -100,6 +100,52 @@ if (process.env.TEST_ENV !== 'built' && !isWindows) {
         true
       )
     })
+
+    it('should HMR islands', async () => {
+      const { page, pageErrors, consoleLogs } = await renderPage('/server-component-hmr')
+
+      let hmrId = 0
+      const resolveHmrId = async () => {
+        const node = await page.$('#hmr-id')
+        const text = await node?.innerText() || ''
+        return Number(text?.trim().split(':')[1].trim())
+      }
+      const componentPath = join(fixturePath, 'components/islands/HmrComponent.vue')
+      const triggerHmr = async () => fsp.writeFile(
+        componentPath,
+        (await fsp.readFile(componentPath, 'utf8'))
+          .replace(`ref(${hmrId++})`, `ref(${hmrId})`)
+      )
+
+      // initial state
+      await expectWithPolling(
+        resolveHmrId,
+        0,
+      )
+
+      // first edit
+      await triggerHmr()
+      await expectWithPolling(
+        resolveHmrId,
+        1,
+      )
+
+      // just in-case
+      await triggerHmr()
+      await expectWithPolling(
+        resolveHmrId,
+        2,
+      )
+
+      // ensure no errors
+      const consoleLogErrors = consoleLogs.filter(i => i.type === 'error')
+      const consoleLogWarnings = consoleLogs.filter(i => i.type === 'warn')
+      expect(pageErrors).toEqual([])
+      expect(consoleLogErrors).toEqual([])
+      expect(consoleLogWarnings).toEqual([])
+
+      await page.close()
+    }, 60_000)
   })
 } else {
   describe.skip('hmr', () => {})