diff --git a/packages/nuxt/src/app/components/TeleportIfClient.ts b/packages/nuxt/src/app/components/TeleportIfClient.ts
new file mode 100644
index 0000000000..8974b4088b
--- /dev/null
+++ b/packages/nuxt/src/app/components/TeleportIfClient.ts
@@ -0,0 +1,54 @@
+import { Teleport, defineComponent, h } from 'vue'
+import { useNuxtApp } from '#app'
+import { relative } from 'path'
+
+/**
+ * component only used with componentsIsland
+ * this teleport the component in SSR only if
+ */
+export default defineComponent({
+  name: 'TeleportIfClient',
+  props: {
+    to: String,
+    nuxtClient: {
+      type: Boolean,
+      default: false
+    },
+    /**
+     * ONLY used in dev mode since we use build:manifest result in production
+     * do not pass any value in production
+     */
+    rootDir: {
+      type: String,
+      default: null
+    }
+  },
+  setup (props, { slots }) {
+  
+    const app = useNuxtApp()
+
+    const islandContext = app.ssrContext!.islandContext
+
+    const slot = slots.default!()[0]
+    console.log(slot)
+    if (process.dev) {
+      console.log(app)
+      const path = '__nuxt/' + relative(props.rootDir, slot.type.__file)
+
+      islandContext.chunks[slot.type.__name] = path
+    }
+    islandContext.propsData[props.to] = slot.props || {}
+    // todo set prop in payload
+    return () => {
+
+      if (props.nuxtClient) {
+        return [h('div', {
+          style: 'display: contents;',
+          'nuxt-ssr-client': props.to
+        }, [slot]), h(Teleport, { to: props.to }, slot)]
+      }
+
+      return slot
+    }
+  }
+})
diff --git a/packages/nuxt/src/app/components/nuxt-island.ts b/packages/nuxt/src/app/components/nuxt-island.ts
index c268265d6c..b8c054302e 100644
--- a/packages/nuxt/src/app/components/nuxt-island.ts
+++ b/packages/nuxt/src/app/components/nuxt-island.ts
@@ -9,6 +9,7 @@ import type { FetchResponse } from 'ofetch'
 
 // eslint-disable-next-line import/no-restricted-paths
 import type { NuxtIslandResponse } from '../../core/runtime/nitro/renderer'
+
 import { getFragmentHTML, getSlotProps } from './utils'
 import { useNuxtApp, useRuntimeConfig } from '#app/nuxt'
 import { useRequestEvent } from '#app/composables/ssr'
@@ -21,6 +22,23 @@ const SLOT_FALLBACK_RE = /<div nuxt-slot-fallback-start="([^"]*)"[^>]*><\/div>((
 
 let id = 0
 const getId = process.client ? () => (id++).toString() : randomUUID
+const components = process.client ? new Map<string, unknown>() : undefined
+
+async function loadComponents (paths: Record<string, string>) {
+  const promises = []
+
+  debugger
+  for (const component in paths) {
+    if (!(components!.has(component))) {
+      promises.push((async () => {
+        const c = await import('http://localhost:3000/__nuxt/components/SugarCounter.vue')
+        debugger
+        components!.set(component, c.default ?? c)
+      })())
+    }
+  }
+  await Promise.all(promises)
+}
 
 export default defineComponent({
   name: 'NuxtIsland',
@@ -71,7 +89,9 @@ export default defineComponent({
           head: {
             link: [],
             style: []
-          }
+          },
+          chunks: {},
+          props: {}
         })
       }
       ssrHTML.value = renderedHTML ?? '<div></div>'
@@ -90,6 +110,9 @@ export default defineComponent({
         return content
       })
     })
+
+    // no need for reactivity
+    let interactiveComponentsList = {}
     function setUid () {
       uid.value = ssrHTML.value.match(SSR_UID_RE)?.[1] ?? getId() as string
     }
@@ -142,6 +165,11 @@ export default defineComponent({
         await nextTick()
       }
       setUid()
+
+      if (process.client) {
+        await loadComponents(res.chunks)
+        interactiveComponentsList = res.props
+      }
     }
 
     if (import.meta.hot) {
@@ -163,6 +191,7 @@ export default defineComponent({
       const nodes = [createVNode(Fragment, {
         key: key.value
       }, [h(createStaticVNode(html.value, 1))])]
+
       if (uid.value && (mounted.value || nuxtApp.isHydrating || process.server)) {
         for (const slot in slots) {
           if (availableSlots.value.includes(slot)) {
@@ -171,6 +200,15 @@ export default defineComponent({
             }))
           }
         }
+        if (process.client && html.value.includes('nuxt-ssr-client') && mounted.value) {
+          
+          for (const id in interactiveComponentsList) {
+            const vnode = createVNode(Teleport, { to: `[nuxt-ssr-component-uid='${uid.value}'] [nuxt-ssr-client="${id}"]` }, {
+              default: () => [h(components!.get(id.split('-')[0]), interactiveComponentsList[id])]
+            })
+            nodes.push(vnode)
+          }
+        }
       }
       return nodes
     }
diff --git a/packages/nuxt/src/components/islandsTransform.ts b/packages/nuxt/src/components/islandsTransform.ts
index 1cdc89a831..42a2624cc0 100644
--- a/packages/nuxt/src/components/islandsTransform.ts
+++ b/packages/nuxt/src/components/islandsTransform.ts
@@ -4,10 +4,16 @@ import { parseURL } from 'ufo'
 import { createUnplugin } from 'unplugin'
 import MagicString from 'magic-string'
 import { ELEMENT_NODE, parse, walk } from 'ultrahtml'
+import { hash } from 'ohash'
 import { isVue } from '../core/utils'
 
 interface ServerOnlyComponentTransformPluginOptions {
     getComponents: () => Component[]
+    /**
+     * passed down to `TeleportIfClient`
+     * should be done only in dev mode as we use build:manifest result in production
+     */
+    rootDir?: string
 }
 
 const SCRIPT_RE = /<script[^>]*>/g
@@ -36,47 +42,55 @@ export const islandsTransform = createUnplugin((options: ServerOnlyComponentTran
       const s = new MagicString(code)
 
       s.replace(SCRIPT_RE, (full) => {
-        return full + '\nimport { vforToArray as __vforToArray } from \'#app/components/utils\''
+        return full + '\nimport { vforToArray as __vforToArray } from \'#app/components/utils\'' + '\nimport TeleportIfClient from \'#app/components/TeleportIfClient\''
       })
 
       const ast = parse(template[0])
       await walk(ast, (node) => {
-        if (node.type === ELEMENT_NODE && node.name === 'slot') {
-          const { attributes, children, loc, isSelfClosingTag } = node
-          const slotName = attributes.name ?? 'default'
-          let vfor: [string, string] | undefined
-          if (attributes['v-for']) {
-            vfor = attributes['v-for'].split(' in ').map((v: string) => v.trim()) as [string, string]
-            delete attributes['v-for']
-          }
-          if (attributes.name) { delete attributes.name }
-          if (attributes['v-bind']) {
-            attributes._bind = attributes['v-bind']
-            delete attributes['v-bind']
-          }
-          const bindings = getBindings(attributes, vfor)
-
-          if (isSelfClosingTag) {
-            s.overwrite(startingIndex + loc[0].start, startingIndex + loc[0].end, `<div style="display: contents;" nuxt-ssr-slot-name="${slotName}" ${bindings}/>`)
-          } else {
-            s.overwrite(startingIndex + loc[0].start, startingIndex + loc[0].end, `<div style="display: contents;" nuxt-ssr-slot-name="${slotName}" ${bindings}>`)
-            s.overwrite(startingIndex + loc[1].start, startingIndex + loc[1].end, '</div>')
-
-            if (children.length > 1) {
-              // need to wrap instead of applying v-for on each child
-              const wrapperTag = `<div ${vfor ? `v-for="${vfor[0]} in ${vfor[1]}"` : ''} style="display: contents;">`
-              s.appendRight(startingIndex + loc[0].end, `<div nuxt-slot-fallback-start="${slotName}"/>${wrapperTag}`)
-              s.appendLeft(startingIndex + loc[1].start, '</div><div nuxt-slot-fallback-end/>')
-            } else if (children.length === 1) {
-              if (vfor && children[0].type === ELEMENT_NODE) {
-                const { loc, name, attributes, isSelfClosingTag } = children[0]
-                const attrs = Object.entries(attributes).map(([attr, val]) => `${attr}="${val}"`).join(' ')
-                s.overwrite(startingIndex + loc[0].start, startingIndex + loc[0].end, `<${name} v-for="${vfor[0]} in ${vfor[1]}" ${attrs} ${isSelfClosingTag ? '/' : ''}>`)
-              }
-
-              s.appendRight(startingIndex + loc[0].end, `<div nuxt-slot-fallback-start="${slotName}"/>`)
-              s.appendLeft(startingIndex + loc[1].start, '<div nuxt-slot-fallback-end/>')
+        if (node.type === ELEMENT_NODE) {
+          if (node.name === 'slot') {
+            const { attributes, children, loc, isSelfClosingTag } = node
+            const slotName = attributes.name ?? 'default'
+            let vfor: [string, string] | undefined
+            if (attributes['v-for']) {
+              vfor = attributes['v-for'].split(' in ').map((v: string) => v.trim()) as [string, string]
+              delete attributes['v-for']
             }
+            if (attributes.name) { delete attributes.name }
+            if (attributes['v-bind']) {
+              attributes._bind = attributes['v-bind']
+              delete attributes['v-bind']
+            }
+            const bindings = getBindings(attributes, vfor)
+
+            if (isSelfClosingTag) {
+              s.overwrite(startingIndex + loc[0].start, startingIndex + loc[0].end, `<div style="display: contents;" nuxt-ssr-slot-name="${slotName}" ${bindings}/>`)
+            } else {
+              s.overwrite(startingIndex + loc[0].start, startingIndex + loc[0].end, `<div style="display: contents;" nuxt-ssr-slot-name="${slotName}" ${bindings}>`)
+              s.overwrite(startingIndex + loc[1].start, startingIndex + loc[1].end, '</div>')
+
+              if (children.length > 1) {
+                // need to wrap instead of applying v-for on each child
+                const wrapperTag = `<div ${vfor ? `v-for="${vfor[0]} in ${vfor[1]}"` : ''} style="display: contents;">`
+                s.appendRight(startingIndex + loc[0].end, `<div nuxt-slot-fallback-start="${slotName}"/>${wrapperTag}`)
+                s.appendLeft(startingIndex + loc[1].start, '</div><div nuxt-slot-fallback-end/>')
+              } else if (children.length === 1) {
+                if (vfor && children[0].type === ELEMENT_NODE) {
+                  const { loc, name, attributes, isSelfClosingTag } = children[0]
+                  const attrs = Object.entries(attributes).map(([attr, val]) => `${attr}="${val}"`).join(' ')
+                  s.overwrite(startingIndex + loc[0].start, startingIndex + loc[0].end, `<${name} v-for="${vfor[0]} in ${vfor[1]}" ${attrs} ${isSelfClosingTag ? '/' : ''}>`)
+                }
+
+                s.appendRight(startingIndex + loc[0].end, `<div nuxt-slot-fallback-start="${slotName}"/>`)
+                s.appendLeft(startingIndex + loc[1].start, '<div nuxt-slot-fallback-end/>')
+              }
+            }
+          } else if ('nuxt-client' in node.attributes) {
+            // handle granular interactivity
+            const htmlCode = code.slice(startingIndex + node.loc[0].start, startingIndex + node.loc[1].end)
+            const uid = hash(id + node.loc[0].start + node.loc[0].end)
+
+            s.overwrite(node.loc[0].start, node.loc[1].end, `<TeleportIfClient to="${node.name}-${uid}" ${options.rootDir ? `root-dir="${options.rootDir}"` : ''} :nuxt-client="${node.attributes['nuxt-client'] || 'true'}">${htmlCode}</TeleportIfClient>`)
           }
         }
       })
diff --git a/packages/nuxt/src/components/module.ts b/packages/nuxt/src/components/module.ts
index 94ecdac476..84f74f39e7 100644
--- a/packages/nuxt/src/components/module.ts
+++ b/packages/nuxt/src/components/module.ts
@@ -226,7 +226,8 @@ export default defineNuxtModule<ComponentsOptions>({
 
       if (isServer && nuxt.options.experimental.componentIslands) {
         config.plugins.push(islandsTransform.vite({
-          getComponents
+          getComponents,
+          rootDir: nuxt.options.rootDir
         }))
       }
       if (!isServer && nuxt.options.experimental.componentIslands) {
diff --git a/packages/nuxt/src/core/nuxt.ts b/packages/nuxt/src/core/nuxt.ts
index 9aa9a65dfc..d7f2ce693f 100644
--- a/packages/nuxt/src/core/nuxt.ts
+++ b/packages/nuxt/src/core/nuxt.ts
@@ -269,6 +269,10 @@ async function initNuxt (nuxt: Nuxt) {
       priority: 10, // built-in that we do not expect the user to override
       filePath: resolve(nuxt.options.appDir, 'components/nuxt-island')
     })
+
+    nuxt.hook('build:manifest', (manifest) => {
+      debugger
+    })
   }
 
   // Add experimental cross-origin prefetch support using Speculation Rules API
diff --git a/packages/nuxt/src/core/runtime/nitro/renderer.ts b/packages/nuxt/src/core/runtime/nitro/renderer.ts
index 840e01281a..43086c753e 100644
--- a/packages/nuxt/src/core/runtime/nitro/renderer.ts
+++ b/packages/nuxt/src/core/runtime/nitro/renderer.ts
@@ -40,6 +40,10 @@ export interface NuxtIslandContext {
   name: string
   props?: Record<string, any>
   url?: string
+  // chunks to load components
+  chunks: Record<string, string>
+  // props to be sent back
+  propsData: Record<string, any>
 }
 
 export interface NuxtIslandResponse {
@@ -50,6 +54,8 @@ export interface NuxtIslandResponse {
     link: (Record<string, string>)[]
     style: ({ innerHTML: string, key: string })[]
   }
+  chunks: Record<string, string>
+  props: Record<string, Record<string, any>>
 }
 
 export interface NuxtRenderResponse {
@@ -164,7 +170,9 @@ async function getIslandContext (event: H3Event): Promise<NuxtIslandContext> {
     id: hashId,
     name: componentName,
     props: destr(context.props) || {},
-    uid: destr(context.uid) || undefined
+    uid: destr(context.uid) || undefined,
+    chunks: {},
+    propsData: {}
   }
 
   return ctx
@@ -360,12 +368,14 @@ export default defineRenderHandler(async (event): Promise<Partial<RenderResponse
         innerHTML: tag.innerHTML
       }))
     }
-
+ 
     const islandResponse: NuxtIslandResponse = {
       id: islandContext.id,
       head,
       html: getServerComponentHTML(htmlContext.body),
-      state: ssrContext.payload.state
+      state: ssrContext.payload.state,
+      chunks: islandContext.chunks,
+      props: islandContext.propsData
     }
 
     await nitroApp.hooks.callHook('render:island', islandResponse, { event, islandContext })
diff --git a/test/fixtures/basic/components/AsyncServerComponent.server.vue b/test/fixtures/basic/components/AsyncServerComponent.server.vue
index 221224efc4..63318e5f09 100644
--- a/test/fixtures/basic/components/AsyncServerComponent.server.vue
+++ b/test/fixtures/basic/components/AsyncServerComponent.server.vue
@@ -5,6 +5,13 @@
     <div id="async-server-component-count">
       {{ count }}
     </div>
+
+    <div style="border: solid 1px red;"> 
+      The component bellow is not a slot but declared as interactive
+      
+    <SugarCounter nuxt-client :multiplier="1" /> 
+    </div>
+     
     <slot />
   </div>
 </template>