diff --git a/packages/language-core/lib/codegen/script/component.ts b/packages/language-core/lib/codegen/script/component.ts
index c0a92e2997..970fb8031a 100644
--- a/packages/language-core/lib/codegen/script/component.ts
+++ b/packages/language-core/lib/codegen/script/component.ts
@@ -41,7 +41,7 @@ export function* generateComponent(
 		yield generateSfcBlockSection(options.sfc.script, args.start + 1, args.end - 1, codeFeatures.all);
 	}
 	if (options.vueCompilerOptions.target >= 3.5 && scriptSetupRanges.templateRefs.length) {
-		yield `__typeRefs: {} as __VLS_Refs,${newLine}`;
+		yield `__typeRefs: {} as __VLS_TemplateResult['refs'],${newLine}`;
 	}
 	yield `})`;
 }
@@ -142,7 +142,7 @@ export function* generatePropsOption(
 		optionExpCodes.push(generateSfcBlockSection(scriptSetup, arg.start, arg.end, codeFeatures.navigation));
 	}
 	if (inheritAttrs && options.templateCodegen?.inheritedAttrVars.size) {
-		let attrsType = `typeof __VLS_templateAttrs`;
+		let attrsType = `__VLS_TemplateResult['attrs']`;
 		if (hasEmitsOption) {
 			attrsType = `Omit<${attrsType}, \`on\${string}\`>`;
 		}
diff --git a/packages/language-core/lib/codegen/script/index.ts b/packages/language-core/lib/codegen/script/index.ts
index 7702b673f6..6317feec8c 100644
--- a/packages/language-core/lib/codegen/script/index.ts
+++ b/packages/language-core/lib/codegen/script/index.ts
@@ -10,6 +10,7 @@ import { generateScriptSetup, generateScriptSetupImports } from './scriptSetup';
 import { generateSrc } from './src';
 import { generateTemplate } from './template';
 import { generateGlobalTypes } from '../globalTypes';
+import { generateInternalComponent } from './internalComponent';
 
 export const codeFeatures = {
 	all: {
@@ -112,7 +113,10 @@ export function* generateScript(options: ScriptCodegenOptions): Generator<Code,
 			else {
 				yield generateSfcBlockSection(options.sfc.script, 0, classBlockEnd, codeFeatures.all);
 				yield `__VLS_template = () => {`;
-				yield* generateTemplate(options, ctx, true);
+				const templateCodegenCtx = yield* generateTemplate(options, ctx, true);
+				if (templateCodegenCtx) {
+					yield* generateInternalComponent(options, ctx, templateCodegenCtx);
+				}
 				yield `},${newLine}`;
 				yield generateSfcBlockSection(options.sfc.script, classBlockEnd, options.sfc.script.content.length, codeFeatures.all);
 			}
@@ -135,7 +139,12 @@ export function* generateScript(options: ScriptCodegenOptions): Generator<Code,
 	yield newLine;
 
 	if (!ctx.generatedTemplate) {
-		yield* generateTemplate(options, ctx, false);
+		yield `function __VLS_template() {${newLine}`;
+		const templateCodegenCtx = yield* generateTemplate(options, ctx, false);
+		yield `}${endOfLine}`;
+		if (templateCodegenCtx) {
+			yield* generateInternalComponent(options, ctx, templateCodegenCtx);
+		}
 	}
 
 	if (options.edited) {
diff --git a/packages/language-core/lib/codegen/script/scriptSetup.ts b/packages/language-core/lib/codegen/script/scriptSetup.ts
index d259697360..1928e7c7cb 100644
--- a/packages/language-core/lib/codegen/script/scriptSetup.ts
+++ b/packages/language-core/lib/codegen/script/scriptSetup.ts
@@ -4,6 +4,7 @@ import { endOfLine, generateSfcBlockSection, newLine } from '../common';
 import { generateComponent, generateEmitsOption } from './component';
 import type { ScriptCodegenContext } from './context';
 import { ScriptCodegenOptions, codeFeatures } from './index';
+import { generateInternalComponent } from './internalComponent';
 import { generateCssClassProperty, generateTemplate } from './template';
 
 export function* generateScriptSetupImports(
@@ -70,7 +71,7 @@ export function* generateScriptSetup(
 			+ `			props: ${ctx.localTypes.PrettifyLocal}<typeof __VLS_functionalComponentProps & __VLS_PublicProps> & __VLS_BuiltInPublicProps,${newLine}`
 			+ `			expose(exposed: import('${options.vueCompilerOptions.lib}').ShallowUnwrapRef<${scriptSetupRanges.expose.define ? 'typeof __VLS_exposed' : '{}'}>): void,${newLine}`
 			+ `			attrs: any,${newLine}`
-			+ `			slots: __VLS_Slots,${newLine}`
+			+ `			slots: __VLS_TemplateResult['slots'],${newLine}`
 			+ `			emit: ${emitTypes.length ? emitTypes.join(' & ') : `{}`},${newLine}`
 			+ `		}${endOfLine}`;
 		yield `	})(),${newLine}`; // __VLS_setup = (async () => {
@@ -246,9 +247,9 @@ function* generateSetupFunction(
 		if (define?.arg) {
 			setupCodeModifies.push([
 				[
-					`<__VLS_Refs[`,
+					`<__VLS_TemplateResult['refs'][`,
 					generateSfcBlockSection(scriptSetup, define.arg.start, define.arg.end, codeFeatures.navigation),
-					`], keyof __VLS_Refs>`
+					`], keyof __VLS_TemplateResult['refs']>`
 				],
 				define.arg.start - 1,
 				define.arg.start - 1
@@ -287,9 +288,13 @@ function* generateSetupFunction(
 	yield* generateComponentProps(options, ctx, scriptSetup, scriptSetupRanges, definePropMirrors);
 	yield* generateModelEmits(options, scriptSetup, scriptSetupRanges);
 	yield* generateStyleModules(options, ctx);
-	yield* generateTemplate(options, ctx, false);
-	yield `type __VLS_Refs = typeof __VLS_templateRefs${endOfLine}`;
-	yield `type __VLS_Slots = typeof __VLS_templateSlots${endOfLine}`;
+	yield `function __VLS_template() {${newLine}`;
+	const templateCodegenCtx = yield* generateTemplate(options, ctx, false);
+	yield `}${endOfLine}`;
+	if (templateCodegenCtx) {
+		yield* generateInternalComponent(options, ctx, templateCodegenCtx);
+	}
+	yield `type __VLS_TemplateResult = ReturnType<typeof __VLS_template>${endOfLine}`;
 
 	if (syntax) {
 		if (!options.vueCompilerOptions.skipTemplateCodegen && (options.templateCodegen?.hasSlot || scriptSetupRanges?.slots.define)) {
@@ -297,7 +302,7 @@ function* generateSetupFunction(
 			yield* generateComponent(options, ctx, scriptSetup, scriptSetupRanges);
 			yield endOfLine;
 			yield `${syntax} `;
-			yield `{} as ${ctx.localTypes.WithTemplateSlots}<typeof __VLS_component, __VLS_Slots>${endOfLine}`;
+			yield `{} as ${ctx.localTypes.WithTemplateSlots}<typeof __VLS_component, __VLS_TemplateResult['slots']>${endOfLine}`;
 		}
 		else {
 			yield `${syntax} `;
diff --git a/packages/language-core/lib/codegen/script/template.ts b/packages/language-core/lib/codegen/script/template.ts
index b2cc7d1f73..8abc6bce8e 100644
--- a/packages/language-core/lib/codegen/script/template.ts
+++ b/packages/language-core/lib/codegen/script/template.ts
@@ -7,7 +7,6 @@ import { forEachInterpolationSegment } from '../template/interpolation';
 import { generateStyleScopedClasses } from '../template/styleScopedClasses';
 import type { ScriptCodegenContext } from './context';
 import { codeFeatures, type ScriptCodegenOptions } from './index';
-import { generateInternalComponent } from './internalComponent';
 
 export function* generateTemplateCtx(
 	options: ScriptCodegenOptions,
@@ -93,7 +92,7 @@ export function* generateTemplate(
 	options: ScriptCodegenOptions,
 	ctx: ScriptCodegenContext,
 	isClassComponent: boolean
-): Generator<Code> {
+): Generator<Code, TemplateCodegenContext | undefined> {
 	ctx.generatedTemplate = true;
 
 	if (!options.vueCompilerOptions.skipTemplateCodegen) {
@@ -104,15 +103,17 @@ export function* generateTemplate(
 		yield* generateTemplateCtx(options, isClassComponent);
 		yield* generateTemplateComponents(options);
 		yield* generateTemplateBody(options, templateCodegenCtx);
-		yield* generateInternalComponent(options, ctx, templateCodegenCtx);
+		return templateCodegenCtx;
 	}
 	else {
 		const templateUsageVars = [...getTemplateUsageVars(options, ctx)];
 		yield `// @ts-ignore${newLine}`;
 		yield `[${templateUsageVars.join(', ')}]${newLine}`;
-		yield `const __VLS_templateSlots = {}${endOfLine}`;
-		yield `const __VLS_templateRefs = {}${endOfLine}`;
-		yield `const __VLS_templateAttrs = {}${endOfLine}`;
+		yield `return {${newLine}`;
+		yield `	slots: {},${newLine}`;
+		yield `	refs: {},${newLine}`;
+		yield `	attrs: {},${newLine}`;
+		yield `}${endOfLine}`;
 	}
 }
 
@@ -164,9 +165,11 @@ function* generateTemplateBody(
 		}
 	}
 
-	yield `const __VLS_templateSlots = ${options.scriptSetupRanges?.slots.name ?? '__VLS_slots'}${endOfLine}`;
-	yield `const __VLS_templateRefs = $refs${endOfLine}`;
-	yield `const __VLS_templateAttrs = {} as Partial<typeof __VLS_inheritedAttrs>${endOfLine}`;
+	yield `return {${newLine}`;
+	yield `	slots: ${options.scriptSetupRanges?.slots.name ?? '__VLS_slots'},${newLine}`;
+	yield `	refs: $refs,${newLine}`;
+	yield `	attrs: {} as Partial<typeof __VLS_inheritedAttrs>,${newLine}`;
+	yield `}${endOfLine}`;
 }
 
 export function* generateCssClassProperty(
diff --git a/packages/language-core/lib/codegen/template/index.ts b/packages/language-core/lib/codegen/template/index.ts
index 1665caecf5..5ebebbd297 100644
--- a/packages/language-core/lib/codegen/template/index.ts
+++ b/packages/language-core/lib/codegen/template/index.ts
@@ -68,7 +68,7 @@ export function* generateTemplate(options: TemplateCodegenOptions): Generator<Co
 			yield `: ${varName},${newLine}`;
 		}
 		yield `}${endOfLine}`;
-		yield `declare var $refs: typeof __VLS_refs${endOfLine}`;
+		yield `var $refs!: typeof __VLS_refs${endOfLine}`;
 	}
 
 	function* generateSlotsType(): Generator<Code> {
diff --git a/packages/tsc/tests/__snapshots__/dts.spec.ts.snap b/packages/tsc/tests/__snapshots__/dts.spec.ts.snap
index d53c99917d..7facce8132 100644
--- a/packages/tsc/tests/__snapshots__/dts.spec.ts.snap
+++ b/packages/tsc/tests/__snapshots__/dts.spec.ts.snap
@@ -633,26 +633,26 @@ export {};
 `;
 
 exports[`vue-tsc-dts > Input: template-slots/component.vue, Output: template-slots/component.vue.d.ts 1`] = `
-"declare var __VLS_0: {};
-declare var __VLS_1: {
-    num: number;
-};
-declare var __VLS_2: {
-    str: string;
-};
-declare var __VLS_3: {
-    num: number;
-    str: string;
-};
-declare const __VLS_templateSlots: {
-    "no-bind"?(_: typeof __VLS_0): any;
-    default?(_: typeof __VLS_1): any;
-    "named-slot"?(_: typeof __VLS_2): any;
-    vbind?(_: typeof __VLS_3): any;
+"declare function __VLS_template(): {
+    slots: {
+        "no-bind"?(_: {}): any;
+        default?(_: {
+            num: number;
+        }): any;
+        "named-slot"?(_: {
+            str: string;
+        }): any;
+        vbind?(_: {
+            num: number;
+            str: string;
+        }): any;
+    };
+    refs: {};
+    attrs: Partial<{}>;
 };
-type __VLS_Slots = typeof __VLS_templateSlots;
+type __VLS_TemplateResult = ReturnType<typeof __VLS_template>;
 declare const __VLS_component: import("vue").DefineComponent<{}, {}, {}, {}, {}, import("vue").ComponentOptionsMixin, import("vue").ComponentOptionsMixin, {}, string, import("vue").PublicProps, Readonly<import("vue").ExtractPropTypes<{}>>, {}, {}>;
-declare const _default: __VLS_WithTemplateSlots<typeof __VLS_component, __VLS_Slots>;
+declare const _default: __VLS_WithTemplateSlots<typeof __VLS_component, __VLS_TemplateResult["slots"]>;
 export default _default;
 type __VLS_WithTemplateSlots<T, S> = T & {
     new (): {
@@ -664,34 +664,38 @@ type __VLS_WithTemplateSlots<T, S> = T & {
 
 exports[`vue-tsc-dts > Input: template-slots/component-define-slots.vue, Output: template-slots/component-define-slots.vue.d.ts 1`] = `
 "import { VNode } from 'vue';
-declare const __VLS_templateSlots: Readonly<{
-    default: (props: {
-        num: number;
-    }) => VNode[];
-    'named-slot': (props: {
-        str: string;
-    }) => VNode[];
-    vbind: (props: {
-        num: number;
-        str: string;
-    }) => VNode[];
-    'no-bind': () => VNode[];
-}> & {
-    default: (props: {
-        num: number;
-    }) => VNode[];
-    'named-slot': (props: {
-        str: string;
-    }) => VNode[];
-    vbind: (props: {
-        num: number;
-        str: string;
-    }) => VNode[];
-    'no-bind': () => VNode[];
+declare function __VLS_template(): {
+    slots: Readonly<{
+        default: (props: {
+            num: number;
+        }) => VNode[];
+        'named-slot': (props: {
+            str: string;
+        }) => VNode[];
+        vbind: (props: {
+            num: number;
+            str: string;
+        }) => VNode[];
+        'no-bind': () => VNode[];
+    }> & {
+        default: (props: {
+            num: number;
+        }) => VNode[];
+        'named-slot': (props: {
+            str: string;
+        }) => VNode[];
+        vbind: (props: {
+            num: number;
+            str: string;
+        }) => VNode[];
+        'no-bind': () => VNode[];
+    };
+    refs: {};
+    attrs: Partial<{}>;
 };
-type __VLS_Slots = typeof __VLS_templateSlots;
+type __VLS_TemplateResult = ReturnType<typeof __VLS_template>;
 declare const __VLS_component: import("vue").DefineComponent<{}, {}, {}, {}, {}, import("vue").ComponentOptionsMixin, import("vue").ComponentOptionsMixin, {}, string, import("vue").PublicProps, Readonly<import("vue").ExtractPropTypes<{}>>, {}, {}>;
-declare const _default: __VLS_WithTemplateSlots<typeof __VLS_component, __VLS_Slots>;
+declare const _default: __VLS_WithTemplateSlots<typeof __VLS_component, __VLS_TemplateResult["slots"]>;
 export default _default;
 type __VLS_WithTemplateSlots<T, S> = T & {
     new (): {
@@ -702,18 +706,22 @@ type __VLS_WithTemplateSlots<T, S> = T & {
 `;
 
 exports[`vue-tsc-dts > Input: template-slots/component-destructuring.vue, Output: template-slots/component-destructuring.vue.d.ts 1`] = `
-"declare const __VLS_templateSlots: Readonly<{
-    bottom: (props: {
-        num: number;
-    }) => any[];
-}> & {
-    bottom: (props: {
-        num: number;
-    }) => any[];
+"declare function __VLS_template(): {
+    slots: Readonly<{
+        bottom: (props: {
+            num: number;
+        }) => any[];
+    }> & {
+        bottom: (props: {
+            num: number;
+        }) => any[];
+    };
+    refs: {};
+    attrs: Partial<{}>;
 };
-type __VLS_Slots = typeof __VLS_templateSlots;
+type __VLS_TemplateResult = ReturnType<typeof __VLS_template>;
 declare const __VLS_component: import("vue").DefineComponent<{}, {}, {}, {}, {}, import("vue").ComponentOptionsMixin, import("vue").ComponentOptionsMixin, {}, string, import("vue").PublicProps, Readonly<import("vue").ExtractPropTypes<{}>>, {}, {}>;
-declare const _default: __VLS_WithTemplateSlots<typeof __VLS_component, __VLS_Slots>;
+declare const _default: __VLS_WithTemplateSlots<typeof __VLS_component, __VLS_TemplateResult["slots"]>;
 export default _default;
 type __VLS_WithTemplateSlots<T, S> = T & {
     new (): {
@@ -724,26 +732,26 @@ type __VLS_WithTemplateSlots<T, S> = T & {
 `;
 
 exports[`vue-tsc-dts > Input: template-slots/component-no-script.vue, Output: template-slots/component-no-script.vue.d.ts 1`] = `
-"declare var __VLS_0: {};
-declare var __VLS_1: {
-    num: number;
-};
-declare var __VLS_2: {
-    str: string;
-};
-declare var __VLS_3: {
-    num: number;
-    str: string;
-};
-declare const __VLS_templateSlots: {
-    "no-bind"?(_: typeof __VLS_0): any;
-    default?(_: typeof __VLS_1): any;
-    "named-slot"?(_: typeof __VLS_2): any;
-    vbind?(_: typeof __VLS_3): any;
+"declare function __VLS_template(): {
+    slots: {
+        "no-bind"?(_: {}): any;
+        default?(_: {
+            num: number;
+        }): any;
+        "named-slot"?(_: {
+            str: string;
+        }): any;
+        vbind?(_: {
+            num: number;
+            str: string;
+        }): any;
+    };
+    refs: {};
+    attrs: Partial<{}>;
 };
-type __VLS_Slots = typeof __VLS_templateSlots;
+type __VLS_TemplateResult = ReturnType<typeof __VLS_template>;
 declare const __VLS_component: import("vue").DefineComponent<{}, {}, {}, {}, {}, import("vue").ComponentOptionsMixin, import("vue").ComponentOptionsMixin, {}, string, import("vue").PublicProps, Readonly<import("vue").ExtractPropTypes<{}>>, {}, {}>;
-declare const _default: __VLS_WithTemplateSlots<typeof __VLS_component, __VLS_Slots>;
+declare const _default: __VLS_WithTemplateSlots<typeof __VLS_component, __VLS_TemplateResult["slots"]>;
 export default _default;
 type __VLS_WithTemplateSlots<T, S> = T & {
     new (): {