diff --git a/packages/language-core/lib/codegen/template/elementChildren.ts b/packages/language-core/lib/codegen/template/elementChildren.ts
index d931eb29f..e7ee82c36 100644
--- a/packages/language-core/lib/codegen/template/elementChildren.ts
+++ b/packages/language-core/lib/codegen/template/elementChildren.ts
@@ -22,7 +22,8 @@ export function* generateElementChildren(
 
 	// fix https://github.com/vuejs/language-tools/issues/932
 	if (
-		!ctx.hasSlotElements.has(node)
+		componentCtxVar
+		&& !ctx.hasSlotElements.has(node)
 		&& node.children.length
 		&& node.tagType !== CompilerDOM.ElementTypes.ELEMENT
 		&& node.tagType !== CompilerDOM.ElementTypes.TEMPLATE
diff --git a/packages/language-core/lib/codegen/template/slotOutlet.ts b/packages/language-core/lib/codegen/template/slotOutlet.ts
index dfefcf332..07a76905d 100644
--- a/packages/language-core/lib/codegen/template/slotOutlet.ts
+++ b/packages/language-core/lib/codegen/template/slotOutlet.ts
@@ -58,55 +58,54 @@ export function* generateSlotOutlet(
 			`}`,
 		);
 		yield `)${endOfLine}`;
-		return;
 	}
 	else {
 		yield `var ${varSlot} = {${newLine}`;
 		yield* generateElementProps(options, ctx, node, node.props.filter(prop => prop !== nameProp), true);
 		yield `}${endOfLine}`;
-	}
 
-	if (
-		nameProp?.type === CompilerDOM.NodeTypes.ATTRIBUTE
-		&& nameProp.value
-	) {
-		ctx.slots.push({
-			name: nameProp.value.content,
-			loc: nameProp.loc.start.offset + nameProp.loc.source.indexOf(nameProp.value.content, nameProp.name.length),
-			tagRange: [startTagOffset, startTagOffset + node.tag.length],
-			varName: varSlot,
-			nodeLoc: node.loc,
-		});
-	}
-	else if (
-		nameProp?.type === CompilerDOM.NodeTypes.DIRECTIVE
-		&& nameProp.exp?.type === CompilerDOM.NodeTypes.SIMPLE_EXPRESSION
-	) {
-		const slotExpVar = ctx.getInternalVariable();
-		yield `var ${slotExpVar} = `;
-		yield* generateInterpolation(
-			options,
-			ctx,
-			nameProp.exp.content,
-			nameProp.exp,
-			nameProp.exp.loc.start.offset,
-			ctx.codeFeatures.all,
-			'(',
-			')',
-		);
-		yield ` as const${endOfLine}`;
-		ctx.dynamicSlots.push({
-			expVar: slotExpVar,
-			varName: varSlot,
-		});
-	}
-	else {
-		ctx.slots.push({
-			name: 'default',
-			tagRange: [startTagOffset, startTagOffset + node.tag.length],
-			varName: varSlot,
-			nodeLoc: node.loc,
-		});
+		if (
+			nameProp?.type === CompilerDOM.NodeTypes.ATTRIBUTE
+			&& nameProp.value
+		) {
+			ctx.slots.push({
+				name: nameProp.value.content,
+				loc: nameProp.loc.start.offset + nameProp.loc.source.indexOf(nameProp.value.content, nameProp.name.length),
+				tagRange: [startTagOffset, startTagOffset + node.tag.length],
+				varName: varSlot,
+				nodeLoc: node.loc,
+			});
+		}
+		else if (
+			nameProp?.type === CompilerDOM.NodeTypes.DIRECTIVE
+			&& nameProp.exp?.type === CompilerDOM.NodeTypes.SIMPLE_EXPRESSION
+		) {
+			const slotExpVar = ctx.getInternalVariable();
+			yield `var ${slotExpVar} = `;
+			yield* generateInterpolation(
+				options,
+				ctx,
+				nameProp.exp.content,
+				nameProp.exp,
+				nameProp.exp.loc.start.offset,
+				ctx.codeFeatures.all,
+				'(',
+				')',
+			);
+			yield ` as const${endOfLine}`;
+			ctx.dynamicSlots.push({
+				expVar: slotExpVar,
+				varName: varSlot,
+			});
+		}
+		else {
+			ctx.slots.push({
+				name: 'default',
+				tagRange: [startTagOffset, startTagOffset + node.tag.length],
+				varName: varSlot,
+				nodeLoc: node.loc,
+			});
+		}
 	}
 	yield* ctx.generateAutoImportCompletion();
 	yield* generateElementChildren(options, ctx, node, currentComponent, componentCtxVar);
diff --git a/test-workspace/tsc/vue2/tsconfig.json b/test-workspace/tsc/vue2/tsconfig.json
index b5c07b027..58dd2edb4 100644
--- a/test-workspace/tsc/vue2/tsconfig.json
+++ b/test-workspace/tsc/vue2/tsconfig.json
@@ -17,6 +17,7 @@
 		"../vue3/#3615",
 		"../vue3/#3656",
 		"../vue3/#3672",
+		"../vue3/#4327",
 		"../vue3/components",
 		"../vue3/defineEmits",
 		"../vue3/defineModel",
diff --git a/test-workspace/tsc/vue3/#4327/main.vue b/test-workspace/tsc/vue3/#4327/main.vue
new file mode 100644
index 000000000..f1d57d40b
--- /dev/null
+++ b/test-workspace/tsc/vue3/#4327/main.vue
@@ -0,0 +1,17 @@
+<script setup lang="ts">
+import { ObjectDirective } from 'vue';
+
+const vTest: ObjectDirective<HTMLElement, any | undefined> = {
+	mounted() { },
+};
+
+defineSlots<{
+	default(): any;
+}>();
+</script>
+
+<template>
+	<slot>
+		<p v-test="{}">Default slot content</p>
+	</slot>
+</template>