diff --git a/packages/kit/src/module/install.ts b/packages/kit/src/module/install.ts
index e27492e49f1..a973c74443d 100644
--- a/packages/kit/src/module/install.ts
+++ b/packages/kit/src/module/install.ts
@@ -17,6 +17,10 @@ export async function installModule (moduleToInstall: string | NuxtModule, _inli
     nuxt
   )
 
+  if (typeof moduleToInstall === 'string') {
+    nuxt.options.build.transpile.push(moduleToInstall)
+  }
+
   nuxt.options._installedModules = nuxt.options._installedModules || []
   nuxt.options._installedModules.push({
     meta: await nuxtModule.getMeta?.(),