diff --git a/packages/nuxt/src/app/components/client-only.ts b/packages/nuxt/src/app/components/client-only.ts
index 46149f6a79..b3c9aeb3a1 100644
--- a/packages/nuxt/src/app/components/client-only.ts
+++ b/packages/nuxt/src/app/components/client-only.ts
@@ -14,7 +14,7 @@ export default defineComponent({
   inheritAttrs: false,
 
   props: ['fallback', 'placeholder', 'placeholderTag', 'fallbackTag'],
-  setup (_, { slots, attrs }) {
+  setup (props, { slots, attrs }) {
     const mounted = ref(false)
     onMounted(() => { mounted.value = true })
     // Bail out of checking for pages/layouts as they might be included under `<ClientOnly>` 🤷‍♂️
@@ -24,10 +24,10 @@ export default defineComponent({
       nuxtApp._isNuxtLayoutUsed = true
     }
     provide(clientOnlySymbol, true)
-    return (props: any) => {
+    return () => {
       if (mounted.value) { return slots.default?.() }
       const slot = slots.fallback || slots.placeholder
-      if (slot) { return slot() }
+      if (slot) { return h(slot) }
       const fallbackStr = props.fallback || props.placeholder || ''
       const fallbackTag = props.fallbackTag || props.placeholderTag || 'span'
       return createElementBlock(fallbackTag, attrs, fallbackStr)