diff --git a/packages/vue/src/generators/library/__snapshots__/library.spec.ts.snap b/packages/vue/src/generators/library/__snapshots__/library.spec.ts.snap
index aeb98b90e7b32..276041b18a763 100644
--- a/packages/vue/src/generators/library/__snapshots__/library.spec.ts.snap
+++ b/packages/vue/src/generators/library/__snapshots__/library.spec.ts.snap
@@ -8,7 +8,7 @@ exports[`lib nested should create a local tsconfig.json 1`] = `
     "esModuleInterop": false,
     "jsx": "preserve",
     "jsxImportSource": "vue",
-    "moduleResolution": "bundler",
+    "moduleResolution": "node",
     "resolveJsonModule": true,
     "strict": true,
     "verbatimModuleSyntax": true,
diff --git a/packages/vue/src/utils/create-ts-config.ts b/packages/vue/src/utils/create-ts-config.ts
index fd48eb0bfc7ac..336f154c89120 100644
--- a/packages/vue/src/utils/create-ts-config.ts
+++ b/packages/vue/src/utils/create-ts-config.ts
@@ -21,7 +21,7 @@ export function createTsConfig(
       strict: options.strict,
       jsx: 'preserve',
       jsxImportSource: 'vue',
-      moduleResolution: 'bundler',
+      moduleResolution: 'node',
       resolveJsonModule: true,
       verbatimModuleSyntax: options.unitTestRunner !== 'jest',
     },