diff --git a/code/lib/builder-vite/package.json b/code/lib/builder-vite/package.json
index 10e0c9cb07df..732de86f99fd 100644
--- a/code/lib/builder-vite/package.json
+++ b/code/lib/builder-vite/package.json
@@ -52,7 +52,6 @@
     "@storybook/node-logger": "7.0.0-beta.49",
     "@storybook/preview": "7.0.0-beta.49",
     "@storybook/preview-api": "7.0.0-beta.49",
-    "@storybook/source-loader": "7.0.0-beta.49",
     "@storybook/types": "7.0.0-beta.49",
     "browser-assert": "^1.2.1",
     "es-module-lexer": "^0.9.3",
diff --git a/code/lib/builder-vite/src/plugins/index.ts b/code/lib/builder-vite/src/plugins/index.ts
index f7fab6a46b42..bccebbdb4833 100644
--- a/code/lib/builder-vite/src/plugins/index.ts
+++ b/code/lib/builder-vite/src/plugins/index.ts
@@ -4,4 +4,3 @@ export * from './strip-story-hmr-boundaries';
 export * from './code-generator-plugin';
 export * from './csf-plugin';
 export * from './external-globals-plugin';
-export * from './source-loader-plugin';
diff --git a/code/lib/builder-vite/src/plugins/source-loader-plugin.ts b/code/lib/builder-vite/src/plugins/source-loader-plugin.ts
deleted file mode 100644
index 7db6df69050b..000000000000
--- a/code/lib/builder-vite/src/plugins/source-loader-plugin.ts
+++ /dev/null
@@ -1,106 +0,0 @@
-import type { Plugin } from 'vite';
-import sourceLoaderTransform from '@storybook/source-loader';
-import MagicString from 'magic-string';
-import type { Options } from '@storybook/types';
-
-const storyPattern = /\.stories\.[jt]sx?$/;
-const storySourcePattern = /var __STORY__ = "(.*)"/;
-const storySourceReplacement = '--STORY_SOURCE_REPLACEMENT--';
-
-const mockClassLoader = (id: string) => ({
-  // eslint-disable-next-line no-console
-  emitWarning: (message: string) => console.warn(message),
-  resourcePath: id,
-  getOptions: () => ({ injectStoryParameters: true }),
-  extension: `.${id.split('.').pop()}`,
-});
-
-// HACK: Until we can support only node 15+ and use string.prototype.replaceAll
-const replaceAll = (str: string, search: string, replacement: string) => {
-  return str.split(search).join(replacement);
-};
-
-export function sourceLoaderPlugin(options: Options): Plugin | Plugin[] {
-  if (options.configType === 'DEVELOPMENT') {
-    return {
-      name: 'storybook:source-loader-plugin',
-      enforce: 'pre',
-      async transform(src: string, id: string) {
-        if (id.match(storyPattern)) {
-          const code: string = await sourceLoaderTransform.call(mockClassLoader(id), src);
-          const s = new MagicString(src);
-          // Entirely replace with new code
-          s.overwrite(0, src.length, code);
-
-          return {
-            code: s.toString(),
-            map: s.generateMap({ hires: true, source: id }),
-          };
-        }
-        return undefined;
-      },
-    };
-  }
-
-  // In production, we need to be fancier, to avoid vite:define plugin from replacing values inside the `__STORY__` string
-  const storySources = new WeakMap<Options, Map<string, string>>();
-
-  return [
-    {
-      name: 'storybook-vite-source-loader-plugin',
-      enforce: 'pre',
-      buildStart() {
-        storySources.set(options, new Map());
-      },
-      async transform(src: string, id: string) {
-        if (id.match(storyPattern)) {
-          let code: string = await sourceLoaderTransform.call(mockClassLoader(id), src);
-          // eslint-disable-next-line @typescript-eslint/naming-convention
-          const [_, sourceString] = code.match(storySourcePattern) ?? [null, null];
-          if (sourceString) {
-            const map = storySources.get(options);
-            map?.set(id, sourceString);
-
-            // Remove story source so that it is not processed by vite:define plugin
-            code = replaceAll(code, sourceString, storySourceReplacement);
-          }
-
-          const s = new MagicString(src);
-          // Entirely replace with new code
-          s.overwrite(0, src.length, code);
-
-          return {
-            code: s.toString(),
-            map: s.generateMap(),
-          };
-        }
-        return undefined;
-      },
-    },
-    {
-      name: 'storybook-vite-source-loader-plugin-post',
-      enforce: 'post',
-      buildStart() {
-        storySources.set(options, new Map());
-      },
-      async transform(src: string, id: string) {
-        if (id.match(storyPattern)) {
-          const s = new MagicString(src);
-          const map = storySources.get(options);
-          const storySourceStatement = map?.get(id);
-          // Put the previously-extracted source back in
-          if (storySourceStatement) {
-            const newCode = replaceAll(src, storySourceReplacement, storySourceStatement);
-            s.overwrite(0, src.length, newCode);
-          }
-
-          return {
-            code: s.toString(),
-            map: s.generateMap(),
-          };
-        }
-        return undefined;
-      },
-    },
-  ];
-}
diff --git a/code/lib/builder-vite/src/vite-config.ts b/code/lib/builder-vite/src/vite-config.ts
index 8d74f06e49f1..e9ce254809b3 100644
--- a/code/lib/builder-vite/src/vite-config.ts
+++ b/code/lib/builder-vite/src/vite-config.ts
@@ -17,7 +17,6 @@ import {
   mdxPlugin,
   stripStoryHMRBoundary,
   externalGlobalsPlugin,
-  sourceLoaderPlugin,
 } from './plugins';
 
 import type { BuilderOptions } from './types';
@@ -78,7 +77,6 @@ export async function pluginConfig(options: Options) {
 
   const plugins = [
     codeGeneratorPlugin(options),
-    sourceLoaderPlugin(options),
     await csfPlugin(options),
     await mdxPlugin(options),
     injectExportOrderPlugin,
diff --git a/code/yarn.lock b/code/yarn.lock
index 4b2a4eac3694..1c8f8fef1329 100644
--- a/code/yarn.lock
+++ b/code/yarn.lock
@@ -5211,7 +5211,6 @@ __metadata:
     "@storybook/node-logger": 7.0.0-beta.49
     "@storybook/preview": 7.0.0-beta.49
     "@storybook/preview-api": 7.0.0-beta.49
-    "@storybook/source-loader": 7.0.0-beta.49
     "@storybook/types": 7.0.0-beta.49
     "@types/express": ^4.17.13
     "@types/node": ^16.0.0