diff --git a/packages/vite/package.json b/packages/vite/package.json
index 9b27eda946..4da9ede210 100644
--- a/packages/vite/package.json
+++ b/packages/vite/package.json
@@ -41,7 +41,6 @@
     "defu": "^6.1.4",
     "esbuild": "^0.24.2",
     "escape-string-regexp": "^5.0.0",
-    "externality": "^1.0.2",
     "get-port-please": "^3.1.2",
     "h3": "npm:h3-nightly@2.0.0-1718872656.6765a6e",
     "jiti": "^2.4.2",
diff --git a/packages/vite/src/utils/external.ts b/packages/vite/src/utils/external.ts
deleted file mode 100644
index c6889cb3a1..0000000000
--- a/packages/vite/src/utils/external.ts
+++ /dev/null
@@ -1,36 +0,0 @@
-import type { ExternalsOptions } from 'externality'
-import { ExternalsDefaults, isExternal } from 'externality'
-import type { ViteDevServer } from 'vite'
-import escapeStringRegexp from 'escape-string-regexp'
-import { withTrailingSlash } from 'ufo'
-import type { Nuxt } from 'nuxt/schema'
-import { resolve } from 'pathe'
-import { toArray } from '.'
-
-export function createIsExternal (viteServer: ViteDevServer, nuxt: Nuxt) {
-  const externalOpts: ExternalsOptions = {
-    inline: [
-      /virtual:/,
-      /\.ts$/,
-      ...ExternalsDefaults.inline || [],
-      ...(
-        viteServer.config.ssr.noExternal && viteServer.config.ssr.noExternal !== true
-          ? toArray(viteServer.config.ssr.noExternal)
-          : []
-      ),
-    ],
-    external: [
-      '#shared',
-      new RegExp('^' + escapeStringRegexp(withTrailingSlash(resolve(nuxt.options.rootDir, nuxt.options.dir.shared)))),
-      ...(viteServer.config.ssr.external as string[]) || [],
-      /node_modules/,
-    ],
-    resolve: {
-      modules: nuxt.options.modulesDir,
-      type: 'module',
-      extensions: ['.ts', '.js', '.json', '.vue', '.mjs', '.jsx', '.tsx', '.wasm'],
-    },
-  }
-
-  return (id: string) => isExternal(id, nuxt.options.rootDir, externalOpts)
-}
diff --git a/packages/vite/src/vite-node.ts b/packages/vite/src/vite-node.ts
index 914bb713b6..ee29478ea1 100644
--- a/packages/vite/src/vite-node.ts
+++ b/packages/vite/src/vite-node.ts
@@ -6,14 +6,12 @@ import { isAbsolute, join, normalize, resolve } from 'pathe'
 // import { addDevServerHandler } from '@nuxt/kit'
 import { isFileServingAllowed } from 'vite'
 import type { ModuleNode, Plugin as VitePlugin } from 'vite'
-import { getQuery } from 'ufo'
+import { getQuery, withTrailingSlash } from 'ufo'
 import { normalizeViteManifest } from 'vue-bundle-renderer'
-import { resolve as resolveModule } from 'mlly'
+import escapeStringRegexp from 'escape-string-regexp'
 import { distDir } from './dirs'
 import type { ViteBuildContext } from './vite'
 import { isCSS } from './utils'
-import { createIsExternal } from './utils/external'
-import { transpile } from './utils/transpile'
 
 // TODO: Remove this in favor of registerViteNodeMiddleware
 // after Nitropack or h3 allows adding middleware after setup
@@ -118,9 +116,13 @@ function createViteNodeApp (ctx: ViteBuildContext, invalidates: Set<string> = ne
     const node = new ViteNodeServer(viteServer, {
       deps: {
         inline: [
-          /\/node_modules\/(.*\/)?(nuxt|nuxt3|nuxt-nightly)\//,
+          // Common
           /^#/,
-          ...transpile({ isServer: true, isDev: ctx.nuxt.options.dev }),
+          /\?/,
+        ],
+        external: [
+          '#shared',
+          new RegExp('^' + escapeStringRegexp(withTrailingSlash(resolve(ctx.nuxt.options.rootDir, ctx.nuxt.options.dir.shared)))),
         ],
       },
       transformMode: {
@@ -129,15 +131,6 @@ function createViteNodeApp (ctx: ViteBuildContext, invalidates: Set<string> = ne
       },
     })
 
-    const isExternal = createIsExternal(viteServer, ctx.nuxt)
-    node.shouldExternalize = async (id: string) => {
-      const result = await isExternal(id)
-      if (result?.external) {
-        return resolveModule(result.id, { url: ctx.nuxt.options.modulesDir }).catch(() => false)
-      }
-      return false
-    }
-
     return eventHandler(async (event) => {
       const moduleId = decodeURI(event.path).substring(1)
       if (moduleId === '/') {
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 54b144a666..59bfedb961 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -865,9 +865,6 @@ importers:
       escape-string-regexp:
         specifier: ^5.0.0
         version: 5.0.0
-      externality:
-        specifier: ^1.0.2
-        version: 1.0.2
       get-port-please:
         specifier: ^3.1.2
         version: 3.1.2
@@ -4538,9 +4535,6 @@ packages:
   extend@3.0.2:
     resolution: {integrity: sha512-fjquC59cD7CyW6urNXK0FBufkZcoiGG80wTuPujX590cB5Ttln20E2UB4S/WARVqhXffZl2LNgS+gQdPIIim/g==}
 
-  externality@1.0.2:
-    resolution: {integrity: sha512-LyExtJWKxtgVzmgtEHyQtLFpw1KFhQphF9nTG8TpAIVkiI/xQ3FJh75tRFLYl4hkn7BNIIdLJInuDAavX35pMw==}
-
   fake-indexeddb@6.0.0:
     resolution: {integrity: sha512-YEboHE5VfopUclOck7LncgIqskAqnv4q0EWbYCaxKKjAvO93c+TJIaBuGy8CBFdbg9nKdpN3AuPRwVBJ4k7NrQ==}
     engines: {node: '>=18'}
@@ -12235,13 +12229,6 @@ snapshots:
 
   extend@3.0.2: {}
 
-  externality@1.0.2:
-    dependencies:
-      enhanced-resolve: 5.18.0
-      mlly: 1.7.4
-      pathe: 1.1.2
-      ufo: 1.5.4
-
   fake-indexeddb@6.0.0: {}
 
   fast-deep-equal@3.1.3: {}