diff --git a/.changeset/lemon-impalas-check.md b/.changeset/lemon-impalas-check.md
new file mode 100644
index 000000000000..8ece8032d1d3
--- /dev/null
+++ b/.changeset/lemon-impalas-check.md
@@ -0,0 +1,5 @@
+---
+"@biomejs/biome": patch
+---
+
+Fixed [#8190](https://github.com/biomejs/biome/issues/8190): The HTML parser will now parse Vue event handlers that contain `:` correctly, e.g. `@update:modelValue="onUpdate"`.
diff --git a/crates/biome_html_formatter/tests/specs/html/vue/event-with-colon.vue b/crates/biome_html_formatter/tests/specs/html/vue/event-with-colon.vue
new file mode 100644
index 000000000000..0c264b19c63f
--- /dev/null
+++ b/crates/biome_html_formatter/tests/specs/html/vue/event-with-colon.vue
@@ -0,0 +1 @@
+<Foo @update:modelValue="onUpdate" />
diff --git a/crates/biome_html_formatter/tests/specs/html/vue/event-with-colon.vue.snap b/crates/biome_html_formatter/tests/specs/html/vue/event-with-colon.vue.snap
new file mode 100644
index 000000000000..e8ab8faee7f0
--- /dev/null
+++ b/crates/biome_html_formatter/tests/specs/html/vue/event-with-colon.vue.snap
@@ -0,0 +1,33 @@
+---
+source: crates/biome_formatter_test/src/snapshot_builder.rs
+info: vue/event-with-colon.vue
+---
+# Input
+
+```vue
+<Foo @update:modelValue="onUpdate" />
+
+```
+
+
+=============================
+
+# Outputs
+
+## Output 1
+
+-----
+Indent style: Tab
+Indent width: 2
+Line ending: LF
+Line width: 80
+Attribute Position: Auto
+Bracket same line: false
+Whitespace sensitivity: css
+Indent script and style: false
+Self close void elements: never
+-----
+
+```vue
+<Foo @update:modelValue="onUpdate"/>
+```
diff --git a/crates/biome_html_parser/src/lexer/mod.rs b/crates/biome_html_parser/src/lexer/mod.rs
index f576d9a48c09..bdc290be2be5 100644
--- a/crates/biome_html_parser/src/lexer/mod.rs
+++ b/crates/biome_html_parser/src/lexer/mod.rs
@@ -35,6 +35,7 @@ enum IdentifierContext {
     Doctype,
     Svelte,
     Vue,
+    VueDirectiveArgument,
 }
 
 impl IdentifierContext {
@@ -147,6 +148,9 @@ impl<'src> HtmlLexer<'src> {
                 // https://html.spec.whatwg.org/multipage/syntax.html#start-tags
                 self.consume_tag_name(current)
             }
+            _ if (self.current_kind == T![@] && is_attribute_name_byte_vue(current)) => {
+                self.consume_identifier(current, IdentifierContext::VueDirectiveArgument)
+            }
             _ if (self.current_kind != T![<] && is_attribute_name_byte_vue(current)) => {
                 self.consume_identifier(current, IdentifierContext::Vue)
             }
@@ -471,6 +475,18 @@ impl<'src> HtmlLexer<'src> {
                             len += 1;
                         }
 
+                        self.advance(1)
+                    } else {
+                        break;
+                    }
+                }
+                IdentifierContext::VueDirectiveArgument => {
+                    if is_attribute_name_byte_vue(byte) || byte == b':' {
+                        if len < BUFFER_SIZE {
+                            buffer[len] = byte;
+                            len += 1;
+                        }
+
                         self.advance(1)
                     } else {
                         break;
diff --git a/crates/biome_html_parser/tests/html_specs/ok/vue/event-with-colon.vue b/crates/biome_html_parser/tests/html_specs/ok/vue/event-with-colon.vue
new file mode 100644
index 000000000000..0c264b19c63f
--- /dev/null
+++ b/crates/biome_html_parser/tests/html_specs/ok/vue/event-with-colon.vue
@@ -0,0 +1 @@
+<Foo @update:modelValue="onUpdate" />
diff --git a/crates/biome_html_parser/tests/html_specs/ok/vue/event-with-colon.vue.snap b/crates/biome_html_parser/tests/html_specs/ok/vue/event-with-colon.vue.snap
new file mode 100644
index 000000000000..483aa9fde51e
--- /dev/null
+++ b/crates/biome_html_parser/tests/html_specs/ok/vue/event-with-colon.vue.snap
@@ -0,0 +1,75 @@
+---
+source: crates/biome_html_parser/tests/spec_test.rs
+expression: snapshot
+---
+## Input
+
+```vue
+<Foo @update:modelValue="onUpdate" />
+
+```
+
+
+## AST
+
+```
+HtmlRoot {
+    bom_token: missing (optional),
+    frontmatter: missing (optional),
+    directive: missing (optional),
+    html: HtmlElementList [
+        HtmlSelfClosingElement {
+            l_angle_token: L_ANGLE@0..1 "<" [] [],
+            name: HtmlTagName {
+                value_token: HTML_LITERAL@1..5 "Foo" [] [Whitespace(" ")],
+            },
+            attributes: HtmlAttributeList [
+                VueVOnShorthandDirective {
+                    at_token: AT@5..6 "@" [] [],
+                    arg: VueStaticArgument {
+                        name_token: HTML_LITERAL@6..23 "update:modelValue" [] [],
+                    },
+                    modifiers: VueModifierList [],
+                    initializer: HtmlAttributeInitializerClause {
+                        eq_token: EQ@23..24 "=" [] [],
+                        value: HtmlString {
+                            value_token: HTML_STRING_LITERAL@24..35 "\"onUpdate\"" [] [Whitespace(" ")],
+                        },
+                    },
+                },
+            ],
+            slash_token: SLASH@35..36 "/" [] [],
+            r_angle_token: R_ANGLE@36..37 ">" [] [],
+        },
+    ],
+    eof_token: EOF@37..38 "" [Newline("\n")] [],
+}
+```
+
+## CST
+
+```
+0: HTML_ROOT@0..38
+  0: (empty)
+  1: (empty)
+  2: (empty)
+  3: HTML_ELEMENT_LIST@0..37
+    0: HTML_SELF_CLOSING_ELEMENT@0..37
+      0: L_ANGLE@0..1 "<" [] []
+      1: HTML_TAG_NAME@1..5
+        0: HTML_LITERAL@1..5 "Foo" [] [Whitespace(" ")]
+      2: HTML_ATTRIBUTE_LIST@5..35
+        0: VUE_V_ON_SHORTHAND_DIRECTIVE@5..35
+          0: AT@5..6 "@" [] []
+          1: VUE_STATIC_ARGUMENT@6..23
+            0: HTML_LITERAL@6..23 "update:modelValue" [] []
+          2: VUE_MODIFIER_LIST@23..23
+          3: HTML_ATTRIBUTE_INITIALIZER_CLAUSE@23..35
+            0: EQ@23..24 "=" [] []
+            1: HTML_STRING@24..35
+              0: HTML_STRING_LITERAL@24..35 "\"onUpdate\"" [] [Whitespace(" ")]
+      3: SLASH@35..36 "/" [] []
+      4: R_ANGLE@36..37 ">" [] []
+  4: EOF@37..38 "" [Newline("\n")] []
+
+```