diff --git a/packages/nuxt/src/app/components/client-fallback.server.ts b/packages/nuxt/src/app/components/client-fallback.server.ts
index f4229867c9..3b07745b38 100644
--- a/packages/nuxt/src/app/components/client-fallback.server.ts
+++ b/packages/nuxt/src/app/components/client-fallback.server.ts
@@ -1,6 +1,9 @@
 import { defineComponent, getCurrentInstance, onErrorCaptured, ref } from 'vue'
 import { ssrRenderAttrs, ssrRenderSlot, ssrRenderVNode } from 'vue/server-renderer'
+// eslint-disable-next-line
+import { isPromise } from '@vue/shared'
 import { useState } from '../composables/state'
+import { useNuxtApp } from '../nuxt'
 import { createBuffer } from './utils'
 
 const NuxtClientFallbackServer = defineComponent({
@@ -34,9 +37,10 @@ const NuxtClientFallbackServer = defineComponent({
       return true
     }
   },
-  setup (props, ctx) {
+  async setup (props, ctx) {
     const vm = getCurrentInstance()
     const ssrFailed = ref(false)
+    const nuxtApp = useNuxtApp()
 
     onErrorCaptured((err) => {
       useState(`${props.uid}`, () => true)
@@ -53,10 +57,15 @@ const NuxtClientFallbackServer = defineComponent({
         ssrRenderVNode(ssrVNodes.push, defaultSlot![i], vm!)
       }
 
+      const buffer = ssrVNodes.getBuffer()
+      if (buffer.hasAsync) {
+        await Promise.all(buffer.filter(isPromise))
+      }
+
       return { ssrFailed, ssrVNodes }
     } catch (ssrError) {
       // catch in dev
-      useState(`${props.uid}`, () => true)
+      nuxtApp.runWithContext(() => useState(`${props.uid}`, () => true))
       ctx.emit('ssr-error', ssrError)
       return { ssrFailed: true, ssrVNodes: [] }
     }
diff --git a/test/basic.test.ts b/test/basic.test.ts
index 4e5d42b3d6..10455df657 100644
--- a/test/basic.test.ts
+++ b/test/basic.test.ts
@@ -424,7 +424,8 @@ describe('pages', () => {
       'clientfallback-non-stateful-setup',
       'clientfallback-non-stateful',
       'clientfallback-stateful-setup',
-      'clientfallback-stateful'
+      'clientfallback-stateful',
+      'clientfallback-async-setup'
     ]
     const html = await $fetch('/client-fallback')
     // ensure failed components are not rendered server-side
@@ -441,6 +442,9 @@ describe('pages', () => {
     expect(html).not.toContain('<p></p>')
     expect(html).toContain('hi')
 
+    // aysnc setup
+    expect(html).toContain('Work with async setup')
+
     const { page, pageErrors } = await renderPage('/client-fallback')
     // ensure components reactivity once mounted
     await page.locator('#increment-count').click()
diff --git a/test/fixtures/basic/components/BreakInAsyncSetup.vue b/test/fixtures/basic/components/BreakInAsyncSetup.vue
new file mode 100644
index 0000000000..8212300848
--- /dev/null
+++ b/test/fixtures/basic/components/BreakInAsyncSetup.vue
@@ -0,0 +1,14 @@
+<script setup>
+
+async function getData () { }
+await getData()
+
+// break server-side
+const data = window.__NUXT__
+</script>
+
+<template>
+  <div>
+    This breaks in server-side async setup. {{ data.serverRendered }}
+  </div>
+</template>
diff --git a/test/fixtures/basic/components/clientFallback/AsyncSetup.vue b/test/fixtures/basic/components/clientFallback/AsyncSetup.vue
new file mode 100644
index 0000000000..4321cadf28
--- /dev/null
+++ b/test/fixtures/basic/components/clientFallback/AsyncSetup.vue
@@ -0,0 +1,11 @@
+<template>
+  <div>
+    async setup
+    <NuxtClientFallback>
+      <BreakInAsyncSetup class="clientfallback-async-setup" />
+      <template #fallback>
+        <div>Work with async setup</div>
+      </template>
+    </NuxtClientFallback>
+  </div>
+</template>
diff --git a/test/fixtures/basic/pages/client-fallback.vue b/test/fixtures/basic/pages/client-fallback.vue
index 9b4d7c5db8..39c526d45f 100644
--- a/test/fixtures/basic/pages/client-fallback.vue
+++ b/test/fixtures/basic/pages/client-fallback.vue
@@ -38,6 +38,7 @@
       <ClientFallbackStatefulSetup />
       <ClientFallbackNonStatefulSetup />
       <ClientFallbackNonStateful />
+      <ClientFallbackAsyncSetup />
       <NuxtClientFallback keep-fallback>
         <div>
           <BreakInSetup />