diff --git a/packages/playwright-ct-vue/registerSource.mjs b/packages/playwright-ct-vue/registerSource.mjs
index 29194e9a56..2dfb41defd 100644
--- a/packages/playwright-ct-vue/registerSource.mjs
+++ b/packages/playwright-ct-vue/registerSource.mjs
@@ -18,6 +18,8 @@
 // This file is injected into the registry as text, no dependencies are allowed.
 
 import { createApp, setDevtoolsHook, h } from 'vue';
+import { compile } from '@vue/compiler-dom';
+import * as Vue from 'vue';
 
 /** @typedef {import('@playwright/test/types/component').Component} Component */
 /** @typedef {import('vue').Component} FrameworkComponent */
@@ -43,6 +45,49 @@ function createChild(child) {
   return typeof child === 'string' ? child : createWrapper(child);
 }
 
+/**
+ * Copied from: https://github.com/vuejs/test-utils/blob/main/src/utils/compileSlots.ts
+ * Vue does not provide an easy way to compile template in "slot" mode
+ * Since we do not want to rely on compiler internals and specify
+ * transforms manually we create fake component invocation with the slot we
+ * need and pick slots param from render function later. Fake component will
+ * never be instantiated but it requires to be a component so compile
+ * properly generate invocation. Since we do not want to monkey-patch
+ * `resolveComponent` function we are just using one of built-in components.
+ *
+ * @param {string} html
+ */
+function createSlot(html) {
+  let template = html.trim();
+  const hasWrappingTemplate = template && template.startsWith('<template');
+
+  // allow content without `template` tag, for easier testing
+  if (!hasWrappingTemplate)
+    template = `<template #default="params">${template}</template>`;
+
+  const { code } = compile(`<transition>${template}</transition>`, {
+    mode: 'function',
+    prefixIdentifiers: false
+  });
+  const createRenderFunction = new Function('Vue', code);
+  const renderFn = createRenderFunction(Vue);
+  return (ctx = {}) => {
+    const result = renderFn(ctx);
+    const slotName = Object.keys(result.children)[0];
+    return result.children[slotName](ctx);
+  };
+}
+
+function slotToFunction(slot) {
+  if (typeof slot === 'string')
+    return createSlot(slot)();
+
+  if (Array.isArray(slot))
+    return slot.map(slot => createSlot(slot)());
+
+  throw Error(`Invalid slot received.`);
+}
+
 /**
  * @param {Component} component
  */
@@ -109,9 +154,9 @@ function createComponent(component) {
     // Vue test util syntax.
     for (const [key, value] of Object.entries(component.options?.slots || {})) {
       if (key === 'default')
-        children.push(value);
+        children.push(slotToFunction(value));
       else
-        slots[key] = value;
+        slots[key] = slotToFunction(value);
     }
     props = component.options?.props || {};
     for (const [key, value] of Object.entries(component.options?.on || {}))
diff --git a/tests/components/ct-vue-vite/src/notation-jsx.spec.tsx b/tests/components/ct-vue-vite/src/notation-jsx.spec.tsx
index 3786fa0b62..63569e5849 100644
--- a/tests/components/ct-vue-vite/src/notation-jsx.spec.tsx
+++ b/tests/components/ct-vue-vite/src/notation-jsx.spec.tsx
@@ -71,18 +71,18 @@ test('emit an submit event when the button is clicked', async ({ mount }) => {
 
 test('render a default slot', async ({ mount }) => {
   const component = await mount(<DefaultSlot>
-    Main Content
+    <strong>Main Content</strong>
   </DefaultSlot>)
-  await expect(component).toContainText('Main Content')
+  await expect(component.getByRole('strong')).toContainText('Main Content')
 })
 
 test('render a component with multiple slots', async ({ mount }) => {
   const component = await mount(<DefaultSlot>
-    <div id="one">One</div>
-    <div id="two">Two</div>
+    <div data-testid="one">One</div>
+    <div data-testid="two">Two</div>
   </DefaultSlot>)
-  await expect(component.locator('#one')).toContainText('One')
-  await expect(component.locator('#two')).toContainText('Two')
+  await expect(component.getByTestId('one')).toContainText('One')
+  await expect(component.getByTestId('two')).toContainText('Two')
 })
 
 test('render a component with a named slot', async ({ mount }) => {
diff --git a/tests/components/ct-vue-vite/src/notation-vue.spec.js b/tests/components/ct-vue-vite/src/notation-vue.spec.js
index c39df92e1a..316635c478 100644
--- a/tests/components/ct-vue-vite/src/notation-vue.spec.js
+++ b/tests/components/ct-vue-vite/src/notation-vue.spec.js
@@ -81,20 +81,23 @@ test('emit an submit event when the button is clicked', async ({ mount }) => {
 test('render a default slot', async ({ mount }) => {
   const component = await mount(DefaultSlot, {
     slots: {
-      default: 'Main Content'
+      default: '<strong>Main Content</strong>'
     }
   })
-  await expect(component).toContainText('Main Content')
+  await expect(component.getByRole('strong')).toContainText('Main Content')
 })
 
 test('render a component with multiple slots', async ({ mount }) => {
   const component = await mount(DefaultSlot, {
     slots: {
-      default: ['one', 'two']
+      default: [
+        '<div data-testid="one">One</div>',
+        '<div data-testid="two">Two</div>'
+      ]
     }
   })
-  await expect(component).toContainText('one')
-  await expect(component).toContainText('two')
+  await expect(component.getByTestId('one')).toContainText('One')
+  await expect(component.getByTestId('two')).toContainText('Two')
 })
 
 test('render a component with a named slot', async ({ mount }) => {
diff --git a/tests/components/ct-vue-vite/src/notation-vue.spec.ts b/tests/components/ct-vue-vite/src/notation-vue.spec.ts
index dbc7a0d4e9..abf3f5e0e4 100644
--- a/tests/components/ct-vue-vite/src/notation-vue.spec.ts
+++ b/tests/components/ct-vue-vite/src/notation-vue.spec.ts
@@ -82,20 +82,23 @@ test('emit an submit event when the button is clicked', async ({ mount }) => {
 test('render a default slot', async ({ mount }) => {
   const component = await mount(DefaultSlot, {
     slots: {
-      default: 'Main Content'
+      default: '<strong>Main Content</strong>'
     }
   })
-  await expect(component).toContainText('Main Content')
+  await expect(component.getByRole('strong')).toContainText('Main Content')
 })
 
 test('render a component with multiple slots', async ({ mount }) => {
   const component = await mount(DefaultSlot, {
     slots: {
-      default: ['one', 'two']
+      default: [
+        '<div data-testid="one">One</div>',
+        '<div data-testid="two">Two</div>'
+      ]
     }
   })
-  await expect(component).toContainText('one')
-  await expect(component).toContainText('two')
+  await expect(component.getByTestId('one')).toContainText('One')
+  await expect(component.getByTestId('two')).toContainText('Two')
 })
 
 test('render a component with a named slot', async ({ mount }) => {