diff --git a/packages/nuxt/src/components/islandsTransform.ts b/packages/nuxt/src/components/islandsTransform.ts
index 1cdc89a831..388764f334 100644
--- a/packages/nuxt/src/components/islandsTransform.ts
+++ b/packages/nuxt/src/components/islandsTransform.ts
@@ -11,7 +11,7 @@ interface ServerOnlyComponentTransformPluginOptions {
 }
 
 const SCRIPT_RE = /<script[^>]*>/g
-const HAS_SLOT_RE = /<slot[ /]/
+const HAS_SLOT_RE = /<slot[^>]*>/
 const TEMPLATE_RE = /<template>([\s\S]*)<\/template>/
 
 export const islandsTransform = createUnplugin((options: ServerOnlyComponentTransformPluginOptions) => {
diff --git a/packages/nuxt/test/islandTransform.test.ts b/packages/nuxt/test/islandTransform.test.ts
new file mode 100644
index 0000000000..1a2b302a00
--- /dev/null
+++ b/packages/nuxt/test/islandTransform.test.ts
@@ -0,0 +1,159 @@
+import { describe, expect, it } from 'vitest'
+import type { Plugin } from 'vite'
+import type { Component } from '@nuxt/schema'
+import { islandsTransform } from '../src/components/islandsTransform'
+import { normalizeLineEndings } from './utils'
+
+const getComponents = () => [{
+  filePath: '/root/hello.server.vue',
+  mode: 'server',
+  pascalName: 'HelloWorld',
+  island: true,
+  kebabName: 'hello-world',
+  chunkName: 'components/hello-world',
+  export: 'default',
+  shortPath: '',
+  prefetch: false,
+  preload: false
+}] as Component[]
+
+const pluginVite = islandsTransform.raw({
+  getComponents
+}, { framework: 'vite' }) as Plugin
+
+const viteTransform = async (source: string, id: string) => {
+  const result = await (pluginVite.transform! as Function)(source, id)
+  return typeof result === 'string' ? result : result?.code
+}
+
+describe('islandTransform - server and island components', () => {
+  describe('slots', () => {
+    it('expect slot transform to match inline snapshot', async () => {
+      const result = await viteTransform(`<template>
+      <div>
+        <slot />
+
+        <slot name="named" :some-data="someData" />
+      </div>
+      </template>
+      <script setup lang="ts">
+      const someData = 'some data'
+      
+      </script>`
+      , 'hello.server.vue')
+
+      expect(normalizeLineEndings(result)).toMatchInlineSnapshot(`
+        "<template>
+              <div>
+                <div style=\\"display: contents;\\" nuxt-ssr-slot-name=\\"default\\" />
+
+                <div style=\\"display: contents;\\" nuxt-ssr-slot-name=\\"named\\" :nuxt-ssr-slot-data=\\"JSON.stringify([{ some-data: someData }])\\"/>
+              </div>
+              </template>
+              <script setup lang=\\"ts\\">
+        import { vforToArray as __vforToArray } from '#app/components/utils'
+              const someData = 'some data'
+              
+              </script>"
+      `)
+    })
+
+    it('expect slot fallback transform to match inline snapshot', async () => {
+      const result = await viteTransform(`<template>
+      <div>
+        <slot :some-data="someData">
+          <div>fallback</div>
+        </slot>
+      </div>
+      </template>
+      <script setup lang="ts">
+      const someData = 'some data'
+      
+      </script>`
+      , 'hello.server.vue')
+
+      expect(normalizeLineEndings(result)).toMatchInlineSnapshot(`
+        "<template>
+              <div>
+                <div style=\\"display: contents;\\" nuxt-ssr-slot-name=\\"default\\" :nuxt-ssr-slot-data=\\"JSON.stringify([{ some-data: someData }])\\"><div nuxt-slot-fallback-start=\\"default\\"/><div  style=\\"display: contents;\\">
+                  <div>fallback</div>
+                </div><div nuxt-slot-fallback-end/></div>
+              </div>
+              </template>
+              <script setup lang=\\"ts\\">
+        import { vforToArray as __vforToArray } from '#app/components/utils'
+              const someData = 'some data'
+              
+              </script>"
+      `)
+    })
+
+    it('expect slot transform with fallback and no name to match inline snapshot #23209', async () => {
+      const result = await viteTransform(`<template>
+      <div>
+        <UCard>
+          <template #header>
+            <h3>Partial Hydration Example - Server - {{ count }}</h3>
+          </template>
+          <template #default>
+            <p>message: {{ message }}</p>
+            <p>Below is the slot I want to be hydrated on the client</p>
+            <div>
+              <slot>
+                This is the default content of the slot, I should not see this after
+                the client loading has completed.
+              </slot>
+            </div>
+            <p>Above is the slot I want to be hydrated on the client</p>
+          </template>
+        </UCard>
+      </div>
+    </template>
+    
+    <script setup lang="ts">
+    export interface Props {
+      count?: number;
+    }
+    const props = withDefaults(defineProps<Props>(), { count: 0 });
+    
+    const message = "Hello World";
+    </script>
+    `
+      , 'hello.server.vue')
+
+      expect(normalizeLineEndings(result)).toMatchInlineSnapshot(`
+        "<template>
+              <div>
+                <UCard>
+                  <template #header>
+                    <h3>Partial Hydration Example - Server - {{ count }}</h3>
+                  </template>
+                  <template #default>
+                    <p>message: {{ message }}</p>
+                    <p>Below is the slot I want to be hydrated on the client</p>
+                    <div>
+                      <div style=\\"display: contents;\\" nuxt-ssr-slot-name=\\"default\\" ><div nuxt-slot-fallback-start=\\"default\\"/>
+                        This is the default content of the slot, I should not see this after
+                        the client loading has completed.
+                      <div nuxt-slot-fallback-end/></div>
+                    </div>
+                    <p>Above is the slot I want to be hydrated on the client</p>
+                  </template>
+                </UCard>
+              </div>
+            </template>
+            
+            <script setup lang=\\"ts\\">
+        import { vforToArray as __vforToArray } from '#app/components/utils'
+            export interface Props {
+              count?: number;
+            }
+            const props = withDefaults(defineProps<Props>(), { count: 0 });
+            
+            const message = \\"Hello World\\";
+            </script>
+            "
+      `)
+    })
+  })
+})