diff --git a/.changeset/bright-needles-teach.md b/.changeset/bright-needles-teach.md
new file mode 100644
index 0000000000..74188f5c35
--- /dev/null
+++ b/.changeset/bright-needles-teach.md
@@ -0,0 +1,5 @@
+---
+"@astrojs/vue": patch
+---
+
+Fixes using images from public inside Vue components not working correctly
diff --git a/packages/integrations/vue/package.json b/packages/integrations/vue/package.json
index 60943076cd..f2718b3ffc 100644
--- a/packages/integrations/vue/package.json
+++ b/packages/integrations/vue/package.json
@@ -40,7 +40,7 @@
     "test": "astro-scripts test \"test/**/*.test.js\""
   },
   "dependencies": {
-    "@vitejs/plugin-vue": "^4.5.0",
+    "@vitejs/plugin-vue": "^5.0.4",
     "@vitejs/plugin-vue-jsx": "^3.1.0",
     "@vue/babel-plugin-jsx": "^1.1.5",
     "@vue/compiler-sfc": "^3.3.8"
diff --git a/packages/integrations/vue/src/index.ts b/packages/integrations/vue/src/index.ts
index b65d274996..62ca0946c7 100644
--- a/packages/integrations/vue/src/index.ts
+++ b/packages/integrations/vue/src/index.ts
@@ -65,7 +65,7 @@ function virtualAppEntrypoint(options?: Options): Plugin {
 				if (appEntrypoint) {
 					return `\
 import * as mod from ${JSON.stringify(appEntrypoint)};
-						
+
 export const setup = async (app) => {
 	if ('default' in mod) {
 		await mod.default(app);
@@ -101,12 +101,20 @@ export const setup = async (app) => {
 }
 
 async function getViteConfiguration(options?: Options): Promise<UserConfig> {
+	let vueOptions = {
+		...options,
+		template: {
+			...options?.template,
+			transformAssetUrls: false,
+		},
+	} satisfies VueOptions;
+
 	const config: UserConfig = {
 		optimizeDeps: {
 			include: ['@astrojs/vue/client.js', 'vue'],
 			exclude: ['@astrojs/vue/server.js', 'virtual:@astrojs/vue/app'],
 		},
-		plugins: [vue(options), virtualAppEntrypoint(options)],
+		plugins: [vue(vueOptions), virtualAppEntrypoint(vueOptions)],
 		ssr: {
 			external: ['@vue/server-renderer'],
 			noExternal: ['vuetify', 'vueperslides', 'primevue'],
diff --git a/packages/integrations/vue/test/basics.test.js b/packages/integrations/vue/test/basics.test.js
index 7db2deb379..4eb2b987c3 100644
--- a/packages/integrations/vue/test/basics.test.js
+++ b/packages/integrations/vue/test/basics.test.js
@@ -21,4 +21,13 @@ describe('Basics', () => {
 		assert.notEqual(bar, undefined);
 		assert.equal(bar.getAttribute('slot'), null);
 	});
+
+	it('Can show images from public', async () => {
+		const data = await fixture.readFile('/public/index.html');
+		const { document } = parseHTML(data);
+		const img = document.querySelector('img');
+
+		assert.notEqual(img, undefined);
+		assert.equal(img.getAttribute('src'), '/light_walrus.avif');
+	});
 });
diff --git a/packages/integrations/vue/test/fixtures/basics/public/light_walrus.avif b/packages/integrations/vue/test/fixtures/basics/public/light_walrus.avif
new file mode 100644
index 0000000000..89e1c3a143
Binary files /dev/null and b/packages/integrations/vue/test/fixtures/basics/public/light_walrus.avif differ
diff --git a/packages/integrations/vue/test/fixtures/basics/src/components/Image.vue b/packages/integrations/vue/test/fixtures/basics/src/components/Image.vue
new file mode 100644
index 0000000000..5618c579b3
--- /dev/null
+++ b/packages/integrations/vue/test/fixtures/basics/src/components/Image.vue
@@ -0,0 +1,3 @@
+<template>
+	<img src="/light_walrus.avif" />
+</template>
diff --git a/packages/integrations/vue/test/fixtures/basics/src/pages/public.astro b/packages/integrations/vue/test/fixtures/basics/src/pages/public.astro
new file mode 100644
index 0000000000..011df270ea
--- /dev/null
+++ b/packages/integrations/vue/test/fixtures/basics/src/pages/public.astro
@@ -0,0 +1,5 @@
+---
+import Image from "../components/Image.vue";
+---
+
+<Image />
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 2f3030a338..9aba2851e5 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -5119,8 +5119,8 @@ importers:
   packages/integrations/vue:
     dependencies:
       '@vitejs/plugin-vue':
-        specifier: ^4.5.0
-        version: 4.6.2(vite@5.1.5)(vue@3.4.21)
+        specifier: ^5.0.4
+        version: 5.0.4(vite@5.1.5)(vue@3.4.21)
       '@vitejs/plugin-vue-jsx':
         specifier: ^3.1.0
         version: 3.1.0(vite@5.1.5)(vue@3.4.21)
@@ -8357,11 +8357,11 @@ packages:
       - supports-color
     dev: false
 
-  /@vitejs/plugin-vue@4.6.2(vite@5.1.5)(vue@3.4.21):
-    resolution: {integrity: sha512-kqf7SGFoG+80aZG6Pf+gsZIVvGSCKE98JbiWqcCV9cThtg91Jav0yvYFC9Zb+jKetNGF6ZKeoaxgZfND21fWKw==}
-    engines: {node: ^14.18.0 || >=16.0.0}
+  /@vitejs/plugin-vue@5.0.4(vite@5.1.5)(vue@3.4.21):
+    resolution: {integrity: sha512-WS3hevEszI6CEVEx28F8RjTX97k3KsrcY6kvTg7+Whm5y3oYvcqzVeGCU3hxSAn4uY2CLCkeokkGKpoctccilQ==}
+    engines: {node: ^18.0.0 || >=20.0.0}
     peerDependencies:
-      vite: ^4.0.0 || ^5.0.0
+      vite: ^5.0.0
       vue: ^3.2.25
     peerDependenciesMeta:
       vite: