diff --git a/packages/nuxt/src/components/islandsTransform.ts b/packages/nuxt/src/components/islandsTransform.ts
index ac5a954932..e10f1cd957 100644
--- a/packages/nuxt/src/components/islandsTransform.ts
+++ b/packages/nuxt/src/components/islandsTransform.ts
@@ -28,7 +28,7 @@ const SCRIPT_RE = /<script[^>]*>/g
 const HAS_SLOT_OR_CLIENT_RE = /<slot[^>]*>|nuxt-client/
 const TEMPLATE_RE = /<template>([\s\S]*)<\/template>/
 const NUXTCLIENT_ATTR_RE = /\s:?nuxt-client(="[^"]*")?/g
-const IMPORT_CODE = '\nimport { vforToArray as __vforToArray } from \'#app/components/utils\'' + '\nimport NuxtTeleportIslandComponent from \'#app/components/nuxt-teleport-island-component\'' + '\nimport NuxtTeleportSsrSlot from \'#app/components/nuxt-teleport-island-slot\''
+const IMPORT_CODE = '\nimport { mergeProps as __mergeProps } from \'vue\'' + '\nimport { vforToArray as __vforToArray } from \'#app/components/utils\'' + '\nimport NuxtTeleportIslandComponent from \'#app/components/nuxt-teleport-island-component\'' + '\nimport NuxtTeleportSsrSlot from \'#app/components/nuxt-teleport-island-slot\''
 const EXTRACTED_ATTRS_RE = /v-(?:if|else-if|else)(="[^"]*")?/g
 
 function wrapWithVForDiv (code: string, vfor: string): string {
@@ -156,7 +156,7 @@ function getPropsToString (bindings: Record<string, string>): string {
   const vfor = bindings['v-for']?.split(' in ').map((v: string) => v.trim()) as [string, string] | undefined
   if (Object.keys(bindings).length === 0) { return 'undefined' }
   const content = Object.entries(bindings).filter(b => b[0] && (b[0] !== '_bind' && b[0] !== 'v-for')).map(([name, value]) => isBinding(name) ? `[\`${name.slice(1)}\`]: ${value}` : `[\`${name}\`]: \`${value}\``).join(',')
-  const data = bindings._bind ? `mergeProps(${bindings._bind}, { ${content} })` : `{ ${content} }`
+  const data = bindings._bind ? `__mergeProps(${bindings._bind}, { ${content} })` : `{ ${content} }`
   if (!vfor) {
     return `[${data}]`
   } else {
diff --git a/packages/nuxt/test/islandTransform.test.ts b/packages/nuxt/test/islandTransform.test.ts
index 8c81454409..b702ba1ec8 100644
--- a/packages/nuxt/test/islandTransform.test.ts
+++ b/packages/nuxt/test/islandTransform.test.ts
@@ -71,6 +71,7 @@ describe('islandTransform - server and island components', () => {
               </div>
               </template>
               <script setup lang="ts">
+        import { mergeProps as __mergeProps } from 'vue'
         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'
@@ -80,6 +81,42 @@ describe('islandTransform - server and island components', () => {
       `)
     })
 
+    it('generates bindings when props are needed to be merged', async () => {
+      const result = await viteTransform(`<script setup lang="ts">
+withDefaults(defineProps<{ things?: any[]; somethingElse?: string }>(), {
+  things: () => [],
+  somethingElse: "yay",
+});
+</script>
+
+<template>
+  <template v-for="thing in things">
+    <slot name="thing" v-bind="thing" />
+  </template>
+</template>
+`, 'hello.server.vue')
+
+      expect(normalizeLineEndings(result)).toMatchInlineSnapshot(`
+        "<script setup lang="ts">
+        import { mergeProps as __mergeProps } from 'vue'
+        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'
+        withDefaults(defineProps<{ things?: any[]; somethingElse?: string }>(), {
+          things: () => [],
+          somethingElse: "yay",
+        });
+        </script>
+
+        <template>
+          <template v-for="thing in things">
+            <NuxtTeleportSsrSlot name="thing" :props="[__mergeProps(thing, {  })]"><slot name="thing" v-bind="thing" /></NuxtTeleportSsrSlot>
+          </template>
+        </template>
+        "
+      `)
+    })
+
     it('expect slot fallback transform to match inline snapshot', async () => {
       const result = await viteTransform(`<template>
       <div>
@@ -103,6 +140,7 @@ describe('islandTransform - server and island components', () => {
               </div>
               </template>
               <script setup lang="ts">
+        import { mergeProps as __mergeProps } from 'vue'
         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'
@@ -168,6 +206,7 @@ describe('islandTransform - server and island components', () => {
             </template>
 
             <script setup lang="ts">
+        import { mergeProps as __mergeProps } from 'vue'
         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'
@@ -195,6 +234,7 @@ describe('islandTransform - server and island components', () => {
 
       expect(normalizeLineEndings(result)).toMatchInlineSnapshot(`
         "<script setup lang="ts">
+        import { mergeProps as __mergeProps } from 'vue'
         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'
@@ -234,6 +274,7 @@ describe('islandTransform - server and island components', () => {
                 </template>
 
                 <script setup lang="ts">
+          import { mergeProps as __mergeProps } from 'vue'
           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'
@@ -267,6 +308,7 @@ describe('islandTransform - server and island components', () => {
                 </template>
 
                 <script setup lang="ts">
+          import { mergeProps as __mergeProps } from 'vue'
           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'
@@ -302,6 +344,7 @@ describe('islandTransform - server and island components', () => {
                 </template>
 
                 <script setup lang="ts">
+          import { mergeProps as __mergeProps } from 'vue'
           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'
@@ -325,6 +368,7 @@ describe('islandTransform - server and island components', () => {
 
         expect(result).toMatchInlineSnapshot(`
           "<script setup>
+          import { mergeProps as __mergeProps } from 'vue'
           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>
@@ -351,6 +395,7 @@ describe('islandTransform - server and island components', () => {
 
         expect(result).toMatchInlineSnapshot(`
           "<script setup>
+          import { mergeProps as __mergeProps } from 'vue'
           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>
@@ -396,6 +441,7 @@ describe('islandTransform - server and island components', () => {
                 </template>
 
                 <script setup lang="ts">
+          import { mergeProps as __mergeProps } from 'vue'
           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'