diff --git a/packages/plugin-vue/src/compiler.ts b/packages/plugin-vue/src/compiler.ts
index 1051eba0..1449fea9 100644
--- a/packages/plugin-vue/src/compiler.ts
+++ b/packages/plugin-vue/src/compiler.ts
@@ -10,9 +10,7 @@ import type * as _compiler from 'vue/compiler-sfc'
 
 export function resolveCompiler(root: string): typeof _compiler {
   // resolve from project root first, then fallback to peer dep (if any)
-  const compiler =
-    tryRequire('vue/compiler-sfc', root) || tryRequire('vue/compiler-sfc')
-
+  const compiler = tryResolveCompiler(root) || tryResolveCompiler()
   if (!compiler) {
     throw new Error(
       `Failed to resolve vue/compiler-sfc.\n` +
@@ -24,6 +22,14 @@ export function resolveCompiler(root: string): typeof _compiler {
   return compiler
 }
 
+function tryResolveCompiler(root?: string) {
+  const vueMeta = tryRequire('vue/package.json', root)
+  // make sure to check the version is 3+ since 2.7 now also has vue/compiler-sfc
+  if (vueMeta && vueMeta.version.split('.')[0] >= 3) {
+    return tryRequire('vue/compiler-sfc', root)
+  }
+}
+
 const _require = createRequire(import.meta.url)
 function tryRequire(id: string, from?: string) {
   try {