diff --git a/packages/kit/src/loader/nuxt.ts b/packages/kit/src/loader/nuxt.ts
index adf5446fa1..1e54af14fd 100644
--- a/packages/kit/src/loader/nuxt.ts
+++ b/packages/kit/src/loader/nuxt.ts
@@ -1,6 +1,7 @@
 import { pathToFileURL } from 'node:url'
 import { readPackageJSON, resolvePackageJSON } from 'pkg-types'
 import type { Nuxt } from '@nuxt/schema'
+import { withTrailingSlash } from 'ufo'
 import { importModule, tryImportModule } from '../internal/esm'
 import { runWithNuxtContext } from '../context'
 import type { LoadNuxtConfigOptions } from './config'
@@ -27,8 +28,10 @@ export async function loadNuxt (opts: LoadNuxtOptions): Promise<Nuxt> {
   // Apply dev as config override
   opts.overrides.dev = !!opts.dev
 
+  const rootDir = withTrailingSlash(pathToFileURL(opts.cwd!).href)
+
   const nearestNuxtPkg = await Promise.all(['nuxt-nightly', 'nuxt3', 'nuxt', 'nuxt-edge']
-    .map(pkg => resolvePackageJSON(pkg, { url: opts.cwd }).catch(() => null)))
+    .map(pkg => resolvePackageJSON(pkg, { url: rootDir }).catch(() => null)))
     .then(r => (r.filter(Boolean) as string[]).sort((a, b) => b.length - a.length)[0])
   if (!nearestNuxtPkg) {
     throw new Error(`Cannot find any nuxt version from ${opts.cwd}`)
@@ -36,8 +39,6 @@ export async function loadNuxt (opts: LoadNuxtOptions): Promise<Nuxt> {
   const pkg = await readPackageJSON(nearestNuxtPkg)
   const majorVersion = pkg.version ? Number.parseInt(pkg.version.split('.')[0]!) : ''
 
-  const rootDir = pathToFileURL(opts.cwd || process.cwd()).href
-
   // Nuxt 3
   if (majorVersion && majorVersion >= 3) {
     const { loadNuxt } = await importModule<typeof import('nuxt')>((pkg as any)._name || pkg.name, { paths: rootDir })
@@ -72,7 +73,7 @@ export async function loadNuxt (opts: LoadNuxtOptions): Promise<Nuxt> {
 }
 
 export async function buildNuxt (nuxt: Nuxt): Promise<any> {
-  const rootDir = pathToFileURL(nuxt.options.rootDir).href
+  const rootDir = withTrailingSlash(pathToFileURL(nuxt.options.rootDir).href)
 
   // Nuxt 3
   if (nuxt.options._majorVersion === 3) {
diff --git a/packages/kit/test/load-nuxt.test.ts b/packages/kit/test/load-nuxt.test.ts
new file mode 100644
index 0000000000..25b6c8cc50
--- /dev/null
+++ b/packages/kit/test/load-nuxt.test.ts
@@ -0,0 +1,33 @@
+import { fileURLToPath } from 'node:url'
+import { mkdir, rm, writeFile } from 'node:fs/promises'
+import { afterAll, beforeAll, describe, expect, it } from 'vitest'
+import { join, normalize } from 'pathe'
+import { withoutTrailingSlash } from 'ufo'
+import { x } from 'tinyexec'
+
+import { loadNuxt } from '../src'
+
+const repoRoot = withoutTrailingSlash(normalize(fileURLToPath(new URL('../../../', import.meta.url))))
+
+describe('loadNuxt', () => {
+  const tempDir = join(repoRoot, 'temp')
+
+  beforeAll(async () => {
+    await mkdir(join(tempDir, 'nuxt'), { recursive: true })
+    await writeFile(join(tempDir, 'package.json'), '{"dependencies":{"nuxt":"file:./nuxt"}}')
+    await writeFile(join(tempDir, 'nuxt', 'package.json'), '{"name":"nuxt","type":"module","exports":{".":"./index.js"}}')
+    await writeFile(join(tempDir, 'nuxt', 'index.js'), 'export const loadNuxt = (opts) => ({ name: "it me" })')
+    await x('npm', ['install'], { nodeOptions: { cwd: tempDir } })
+  })
+
+  afterAll(async () => {
+    await rm(tempDir, { recursive: true, force: true })
+  })
+
+  it('respects correct directory', async () => {
+    const nuxt = await loadNuxt({ cwd: tempDir })
+    expect(nuxt).toStrictEqual({
+      name: 'it me',
+    })
+  })
+})