diff --git a/packages/repository/src/__tests__/unit/mixins/repository.mixin.unit.ts b/packages/repository/src/__tests__/unit/mixins/repository.mixin.unit.ts
index 05ee94b7cf0e..73bbad9a1486 100644
--- a/packages/repository/src/__tests__/unit/mixins/repository.mixin.unit.ts
+++ b/packages/repository/src/__tests__/unit/mixins/repository.mixin.unit.ts
@@ -11,6 +11,7 @@ import {
   DefaultCrudRepository,
   Entity,
   juggler,
+  Model,
   ModelDefinition,
   Repository,
   RepositoryMixin,
@@ -77,6 +78,23 @@ describe('RepositoryMixin', () => {
     expectNoteRepoToBeBound(myApp);
   });
 
+  it('binds user defined component with models', () => {
+    @model()
+    class MyModel extends Model {}
+
+    class MyModelComponent {
+      models = [MyModel];
+    }
+
+    const myApp = new AppWithRepoMixin();
+    myApp.component(MyModelComponent);
+
+    const boundModels = myApp.find('models.*').map(b => b.key);
+    expect(boundModels).to.containEql('models.MyModel');
+    const modelCtor = myApp.getSync<typeof MyModel>('models.MyModel');
+    expect(modelCtor).to.be.equal(MyModel);
+  });
+
   context('migrateSchema', () => {
     let app: AppWithRepoMixin;
     let migrateStub: sinon.SinonStub;
diff --git a/packages/repository/src/mixins/repository.mixin.ts b/packages/repository/src/mixins/repository.mixin.ts
index 3c9fce1fc079..ab71bf033e73 100644
--- a/packages/repository/src/mixins/repository.mixin.ts
+++ b/packages/repository/src/mixins/repository.mixin.ts
@@ -189,7 +189,9 @@ export function RepositoryMixin<T extends MixinTarget<Application>>(
       nameOrOptions?: string | BindingFromClassOptions,
     ) {
       const binding = super.component(componentCtor, nameOrOptions);
-      this.mountComponentRepositories(componentCtor);
+      const instance = this.getComponentInstance(componentCtor);
+      this.mountComponentRepositories(instance);
+      this.mountComponentModels(instance);
       return binding;
     }
 
@@ -200,11 +202,16 @@ export function RepositoryMixin<T extends MixinTarget<Application>>(
      *
      * @param component - The component to mount repositories of
      */
-    mountComponentRepositories(component: Class<unknown>) {
-      const componentKey = `${CoreBindings.COMPONENTS}.${component.name}`;
-      const compInstance = this.getSync<{
-        repositories?: Class<Repository<Model>>[];
-      }>(componentKey);
+    mountComponentRepositories(
+      component: Class<unknown> | {repositories?: Class<Repository<Model>>[]},
+    ) {
+      // accept also component class to preserve backwards compatibility
+      const compInstance =
+        typeof component === 'function'
+          ? this.getComponentInstance<{
+              repositories?: Class<Repository<Model>>[];
+            }>(component)
+          : component;
 
       if (compInstance.repositories) {
         for (const repo of compInstance.repositories) {
@@ -213,6 +220,18 @@ export function RepositoryMixin<T extends MixinTarget<Application>>(
       }
     }
 
+    mountComponentModels(component: {models?: Class<Model>[]}) {
+      if (!component.models) return;
+      for (const m of component.models) {
+        this.model(m);
+      }
+    }
+
+    getComponentInstance<T extends object>(component: Class<unknown>) {
+      const componentKey = `${CoreBindings.COMPONENTS}.${component.name}`;
+      return this.getSync<T>(componentKey);
+    }
+
     /**
      * Update or recreate the database schema for all repositories.
      *