diff --git a/packages/nuxt/src/components/islandsTransform.ts b/packages/nuxt/src/components/islandsTransform.ts
index da41e693d..583ed724c 100644
--- a/packages/nuxt/src/components/islandsTransform.ts
+++ b/packages/nuxt/src/components/islandsTransform.ts
@@ -108,13 +108,20 @@ export const islandsTransform = createUnplugin((options: ServerOnlyComponentTran
             s.appendRight(startingIndex + loc[1].end, '</NuxtTeleportSsrSlot>')
           } else if (options.selectiveClient && ('nuxt-client' in node.attributes || ':nuxt-client' in node.attributes)) {
             hasNuxtClient = true
-            const attributeValue = node.attributes[':nuxt-client'] || node.attributes['nuxt-client'] || 'true'
+            const { loc, attributes } = node
+            const attributeValue = attributes[':nuxt-client'] || attributes['nuxt-client'] || 'true'
             if (isVite) {
-              // handle granular interactivity
-              const htmlCode = code.slice(startingIndex + node.loc[0].start, startingIndex + node.loc[1].end)
               const uid = hash(id + node.loc[0].start + node.loc[0].end)
+              const wrapperAttributes = extractAttributes(attributes, ['v-if', 'v-else-if', 'v-else'])
 
-              s.overwrite(startingIndex + node.loc[0].start, startingIndex + node.loc[1].end, `<NuxtTeleportIslandComponent to="${node.name}-${uid}" ${rootDir && isDev ? `root-dir="${rootDir}"` : ''} :nuxt-client="${attributeValue}">${htmlCode.replaceAll(NUXTCLIENT_ATTR_RE, '')}</NuxtTeleportIslandComponent>`)
+              let startTag = code.slice(startingIndex + loc[0].start, startingIndex + loc[0].end).replace(NUXTCLIENT_ATTR_RE, '')
+              if (wrapperAttributes) {
+                startTag = startTag.replaceAll(EXTRACTED_ATTRS_RE, '')
+              }
+
+              s.appendLeft(startingIndex + loc[0].start, `<NuxtTeleportIslandComponent${attributeToString(wrapperAttributes)} to="${node.name}-${uid}" ${rootDir && isDev ? `root-dir="${rootDir}"` : ''} :nuxt-client="${attributeValue}">`)
+              s.overwrite(startingIndex + loc[0].start, startingIndex + loc[0].end, startTag)
+              s.appendRight(startingIndex + loc[1].end, '</NuxtTeleportIslandComponent>')
             }
           }
         }
diff --git a/packages/nuxt/test/islandTransform.test.ts b/packages/nuxt/test/islandTransform.test.ts
index 128d63741..78027d84a 100644
--- a/packages/nuxt/test/islandTransform.test.ts
+++ b/packages/nuxt/test/islandTransform.test.ts
@@ -380,6 +380,31 @@ describe('islandTransform - server and island components', () => {
       `)
         expect(result).toContain('import NuxtTeleportIslandComponent from \'#app/components/nuxt-teleport-island-component\'')
       })
+
+      it('should move v-if to the wrapper component', async () => {
+        const result = await viteTransform(`<template>
+        <div>
+        <HelloWorld v-if="false" nuxt-client />
+        <HelloWorld v-else-if="true" nuxt-client />
+        <HelloWorld v-else nuxt-client />
+        </div>
+      </template>
+      `, 'hello.server.vue', false, true)
+
+        expect(result).toMatchInlineSnapshot(`
+          "<script setup>
+          import { vforToArray as __vforToArray } from '#app/components/utils'
+          import NuxtTeleportIslandComponent from '#app/components/nuxt-teleport-island-component'
+          import NuxtTeleportSsrSlot from '#app/components/nuxt-teleport-island-slot'</script><template>
+                  <div>
+                  <NuxtTeleportIslandComponent v-if="false" to="HelloWorld-D9uaHyzL7X"  :nuxt-client="true"><HelloWorld  /></NuxtTeleportIslandComponent>
+                  <NuxtTeleportIslandComponent v-else-if="true" to="HelloWorld-o4RZMtArnE"  :nuxt-client="true"><HelloWorld  /></NuxtTeleportIslandComponent>
+                  <NuxtTeleportIslandComponent v-else to="HelloWorld-m1IbXHdd8O"  :nuxt-client="true"><HelloWorld  /></NuxtTeleportIslandComponent>
+                  </div>
+                </template>
+                "
+        `)
+      })
     })
 
     describe('webpack', () => {