diff --git a/package.json b/package.json
index 7eac973c8c..7e231821c3 100644
--- a/package.json
+++ b/package.json
@@ -46,7 +46,7 @@
     "@nuxt/vite-builder": "workspace:*",
     "@nuxt/webpack-builder": "workspace:*",
     "@types/node": "22.13.2",
-    "@unhead/vue": "2.0.0-alpha.13",
+    "@unhead/vue": "2.0.0-alpha.14",
     "@vue/compiler-core": "3.5.13",
     "@vue/compiler-dom": "3.5.13",
     "@vue/shared": "3.5.13",
@@ -83,7 +83,7 @@
     "@types/babel__helper-plugin-utils": "7.10.3",
     "@types/node": "22.13.2",
     "@types/semver": "7.5.8",
-    "@unhead/vue": "2.0.0-alpha.13",
+    "@unhead/vue": "2.0.0-alpha.14",
     "@vitest/coverage-v8": "3.0.5",
     "@vue/test-utils": "2.4.6",
     "acorn": "8.14.0",
diff --git a/packages/nuxt/package.json b/packages/nuxt/package.json
index 03db2020ed..801f6d0645 100644
--- a/packages/nuxt/package.json
+++ b/packages/nuxt/package.json
@@ -71,7 +71,7 @@
     "@nuxt/schema": "workspace:*",
     "@nuxt/telemetry": "^2.6.5",
     "@nuxt/vite-builder": "workspace:*",
-    "@unhead/vue": "^2.0.0-alpha.13",
+    "@unhead/vue": "^2.0.0-alpha.14",
     "@vue/shared": "^3.5.13",
     "acorn": "8.14.0",
     "c12": "^2.0.2",
diff --git a/packages/nuxt/src/core/runtime/nitro/renderer.ts b/packages/nuxt/src/core/runtime/nitro/renderer.ts
index f45d7aca6b..9c63aac5ac 100644
--- a/packages/nuxt/src/core/runtime/nitro/renderer.ts
+++ b/packages/nuxt/src/core/runtime/nitro/renderer.ts
@@ -17,6 +17,7 @@ import destr from 'destr'
 import { getQuery as getURLQuery, joinURL, withoutTrailingSlash } from 'ufo'
 import { renderToString as _renderToString } from 'vue/server-renderer'
 import { createHead, propsToString, renderSSRHead } from '@unhead/vue/server'
+import { resolveUnrefHeadInput } from '@unhead/vue/utils'
 import type { Head, HeadEntryOptions, Link, ResolvedHead, Script, Style } from '@unhead/vue/types'
 
 import { defineRenderHandler, getRouteRules, useNitroApp, useRuntimeConfig, useStorage } from 'nitro/runtime'
@@ -467,21 +468,17 @@ export default defineRenderHandler(async (event): Promise<Partial<RenderResponse
     }, headEntryOptions)
   }
 
-  const tags = await head.resolveTags()
-
   // Response for component islands
   if (isRenderingIsland && islandContext) {
     const islandHead: ResolvedHead = {}
-    for (const tag of tags) {
-      const currentValue = islandHead[tag.tag as keyof Head]
-      if (['meta', 'link', 'style', 'script', 'noscript'].includes(tag.tag)) {
-        const value = currentValue || []
-        ;(value as any[]).push(tag.props)
-        // @ts-expect-error type juggling
-        islandHead[tag.tag as keyof Head] = value
-      } else {
-        // @ts-expect-error type juggling
-        islandHead[tag.tag as keyof Head] = { innerHTML: tag.innerHTML, textContent: tag.textContent, ...tag.props }
+    // TODO migrate to using resolved tags to minify the payload
+    for (const entry of head.entries.values()) {
+      for (const [key, value] of Object.entries(resolveUnrefHeadInput(entry.input) as Head)) {
+        const currentValue = islandHead[key as keyof ResolvedHead]
+        if (Array.isArray(currentValue)) {
+          currentValue.push(...value)
+        }
+        islandHead[key as keyof ResolvedHead] = value
       }
     }
 
@@ -515,11 +512,7 @@ export default defineRenderHandler(async (event): Promise<Partial<RenderResponse
     return response
   }
 
-  // remove certain tags for nuxt islands
-  const { headTags, bodyTags, bodyTagsOpen, htmlAttrs, bodyAttrs } = await renderSSRHead(head, {
-    ...renderSSRHeadOptions,
-    resolvedTags: tags,
-  })
+  const { headTags, bodyTags, bodyTagsOpen, htmlAttrs, bodyAttrs } = await renderSSRHead(head, renderSSRHeadOptions)
 
   // Create render context
   const htmlContext: NuxtRenderHTMLContext = {
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 44f6bb5484..2704821262 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -14,7 +14,7 @@ overrides:
   '@nuxt/vite-builder': workspace:*
   '@nuxt/webpack-builder': workspace:*
   '@types/node': 22.13.2
-  '@unhead/vue': 2.0.0-alpha.13
+  '@unhead/vue': 2.0.0-alpha.14
   '@vue/compiler-core': 3.5.13
   '@vue/compiler-dom': 3.5.13
   '@vue/shared': 3.5.13
@@ -85,8 +85,8 @@ importers:
         specifier: 7.5.8
         version: 7.5.8
       '@unhead/vue':
-        specifier: 2.0.0-alpha.13
-        version: 2.0.0-alpha.13(vue@3.5.13(typescript@5.7.3))
+        specifier: 2.0.0-alpha.14
+        version: 2.0.0-alpha.14(vue@3.5.13(typescript@5.7.3))
       '@vitest/coverage-v8':
         specifier: 3.0.5
         version: 3.0.5(vitest@3.0.5(@types/debug@4.1.12)(@types/node@22.13.2)(happy-dom@17.1.0)(jiti@2.4.2)(terser@5.32.0)(tsx@4.19.2)(yaml@2.7.0))
@@ -338,8 +338,8 @@ importers:
         specifier: 22.13.2
         version: 22.13.2
       '@unhead/vue':
-        specifier: 2.0.0-alpha.13
-        version: 2.0.0-alpha.13(vue@3.5.13(typescript@5.7.3))
+        specifier: 2.0.0-alpha.14
+        version: 2.0.0-alpha.14(vue@3.5.13(typescript@5.7.3))
       '@vue/shared':
         specifier: 3.5.13
         version: 3.5.13
@@ -502,7 +502,7 @@ importers:
     devDependencies:
       '@nuxt/scripts':
         specifier: 0.10.1
-        version: 0.10.1(@types/google.maps@3.58.1)(@types/vimeo__player@2.18.3)(@types/youtube@0.1.0)(@unhead/vue@2.0.0-alpha.13(vue@3.5.13(typescript@5.7.3)))(typescript@5.7.3)
+        version: 0.10.1(@types/google.maps@3.58.1)(@types/vimeo__player@2.18.3)(@types/youtube@0.1.0)(@unhead/vue@2.0.0-alpha.14(vue@3.5.13(typescript@5.7.3)))(typescript@5.7.3)
       '@parcel/watcher':
         specifier: 2.5.1
         version: 2.5.1
@@ -2118,7 +2118,7 @@ packages:
       '@types/google.maps': ^3.58.1
       '@types/vimeo__player': ^2.18.3
       '@types/youtube': ^0.1.0
-      '@unhead/vue': 2.0.0-alpha.13
+      '@unhead/vue': 2.0.0-alpha.14
     peerDependenciesMeta:
       '@stripe/stripe-js':
         optional: true
@@ -2919,8 +2919,8 @@ packages:
   '@ungap/structured-clone@1.2.0':
     resolution: {integrity: sha512-zuVdFrMJiuCDQUMCzQaD6KL28MjnqqN8XnAqiEq9PNm/hCPTSGfrXCOfwj1ow4LFb/tNymJPwsNbVePc1xFqrQ==}
 
-  '@unhead/vue@2.0.0-alpha.13':
-    resolution: {integrity: sha512-rp1eKnXeXdrmt39JQRlQXJTYKuJOiyJ+kqqp06PifhtNv3jk0/5eXMJBeG01Rj2mOHa7/ABforoIdIxQotIzDA==}
+  '@unhead/vue@2.0.0-alpha.14':
+    resolution: {integrity: sha512-XQteFcROXVbPjK3bEFX/0ffzB8XAOPibZo10djaPSzP9KHEuDF/GFwY2R8NBXboSGhlZ9SqUOCKSfuCgji2nuA==}
     peerDependencies:
       vue: 3.5.13
 
@@ -7301,8 +7301,8 @@ packages:
   unenv@1.10.0:
     resolution: {integrity: sha512-wY5bskBQFL9n3Eca5XnhH6KbUo/tfvkwm9OpcdCvLaeA7piBNbavbOKJySEwQ1V0RH6HvNlSAFRTpvTqgKRQXQ==}
 
-  unhead@2.0.0-alpha.13:
-    resolution: {integrity: sha512-fekwwUZtWKNwGY+VXKtugsBAcQN5X4Rc/ctXjVu8OZ8w6KCu+ST7eOC7ac1HVK8vN7fb0SKaSqWCNlw3NZFzRA==}
+  unhead@2.0.0-alpha.14:
+    resolution: {integrity: sha512-mg8aYvi9kHBjj++LGRg/PPUPEU2wbaiV1O8IV90UaCSzWzVgy6i345uZU8++zLApbWqY4XSibYLGYrB4EHO7rQ==}
 
   unicode-emoji-modifier-base@1.0.0:
     resolution: {integrity: sha512-yLSH4py7oFH3oG/9K+XWrz1pSi3dfUrWEnInbxMfArOfc1+33BlGPQtLsOYwvdMy11AwUBetYuaRxSPqgkq+8g==}
@@ -8854,10 +8854,10 @@ snapshots:
       string-width: 4.2.3
       webpack: 5.98.0
 
-  '@nuxt/scripts@0.10.1(@types/google.maps@3.58.1)(@types/vimeo__player@2.18.3)(@types/youtube@0.1.0)(@unhead/vue@2.0.0-alpha.13(vue@3.5.13(typescript@5.7.3)))(typescript@5.7.3)':
+  '@nuxt/scripts@0.10.1(@types/google.maps@3.58.1)(@types/vimeo__player@2.18.3)(@types/youtube@0.1.0)(@unhead/vue@2.0.0-alpha.14(vue@3.5.13(typescript@5.7.3)))(typescript@5.7.3)':
     dependencies:
       '@nuxt/kit': link:packages/kit
-      '@unhead/vue': 2.0.0-alpha.13(vue@3.5.13(typescript@5.7.3))
+      '@unhead/vue': 2.0.0-alpha.14(vue@3.5.13(typescript@5.7.3))
       '@vueuse/core': 12.5.0(typescript@5.7.3)
       consola: 3.4.0
       defu: 6.1.4
@@ -9839,10 +9839,10 @@ snapshots:
 
   '@ungap/structured-clone@1.2.0': {}
 
-  '@unhead/vue@2.0.0-alpha.13(vue@3.5.13(typescript@5.7.3))':
+  '@unhead/vue@2.0.0-alpha.14(vue@3.5.13(typescript@5.7.3))':
     dependencies:
       hookable: 5.5.3
-      unhead: 2.0.0-alpha.13
+      unhead: 2.0.0-alpha.14
       vue: 3.5.13(typescript@5.7.3)
 
   '@unocss/astro@65.4.3(rollup@4.34.6)(vite@6.1.0(@types/node@22.13.2)(jiti@2.4.2)(sass@1.78.0)(terser@5.32.0)(tsx@4.19.2)(yaml@2.7.0))(vue@3.5.13(typescript@5.7.3))':
@@ -15098,7 +15098,7 @@ snapshots:
       node-fetch-native: 1.6.6
       pathe: 1.1.2
 
-  unhead@2.0.0-alpha.13:
+  unhead@2.0.0-alpha.14:
     dependencies:
       hookable: 5.5.3
 
diff --git a/test/basic.test.ts b/test/basic.test.ts
index b9ac52798f..f8988deb23 100644
--- a/test/basic.test.ts
+++ b/test/basic.test.ts
@@ -1016,7 +1016,9 @@ describe('head tags', () => {
     expect(headHtml).toContain('<meta name="description" content="overriding with an inline useHead call">')
     expect(headHtml).toMatch(/<html[^>]*class="html-attrs-test"/)
     expect(headHtml).toMatch(/<body[^>]*class="body-attrs-test"/)
-    expect(headHtml).toContain('<script src="https://a-body-appended-script.com"></script></body>')
+
+    const bodyHtml = headHtml.match(/<body[^>]*>(.*)<\/body>/s)![1]
+    expect(bodyHtml).toContain('<script src="https://a-body-appended-script.com"></script>')
 
     const indexHtml = await $fetch<string>('/')
     // should render charset by default
diff --git a/test/fixtures/basic/pages/head-script-setup.vue b/test/fixtures/basic/pages/head-script-setup.vue
index 788c58154a..bfb438fdbd 100644
--- a/test/fixtures/basic/pages/head-script-setup.vue
+++ b/test/fixtures/basic/pages/head-script-setup.vue
@@ -1,4 +1,10 @@
 <script lang="ts" setup>
+import { TemplateParamsPlugin } from '@unhead/vue/plugins'
+
+// Unhead v2 requires an opt-in to template params
+const head = injectHead()
+head.use(TemplateParamsPlugin)
+
 const description = ref('head script setup description for %site.name')
 const siteName = ref()
 // server meta