diff --git a/packages/vitest-environment-nuxt/src/runtime/mount.ts b/packages/vitest-environment-nuxt/src/runtime/mount.ts
index 40142e7b..0ff68fa1 100644
--- a/packages/vitest-environment-nuxt/src/runtime/mount.ts
+++ b/packages/vitest-environment-nuxt/src/runtime/mount.ts
@@ -1,5 +1,5 @@
 import { mount, VueWrapper, MountingOptions } from '@vue/test-utils'
-import { h, DefineComponent, Suspense, nextTick } from 'vue'
+import { h, DefineComponent, Suspense, nextTick, SetupContext } from 'vue'
 import { defu } from 'defu'
 import type { RouteLocationRaw } from 'vue-router'
 
@@ -26,11 +26,20 @@ export async function mountSuspended<
 
   // @ts-expect-error untyped global __unctx__
   const vueApp = globalThis.__unctx__.get('nuxt-app').tryUse().vueApp
+  const { render, setup } = component
+
+  let setupContext: SetupContext
   return new Promise<VueWrapper<InstanceType<T>>>(resolve => {
     const vm = mount(
       {
-        setup: NuxtRoot.setup,
-        render: () =>
+        setup: (props, ctx) => {
+          setupContext = ctx
+          return NuxtRoot.setup(props, {
+            ...ctx,
+            expose: () => {},
+          })
+        },
+        render: (renderContext: any) =>
           h(
             Suspense,
             { onResolve: () => nextTick().then(() => resolve(vm as any)) },
@@ -40,13 +49,22 @@ export async function mountSuspended<
                   async setup() {
                     const router = useRouter()
                     await router.replace(route)
-                    return () => h(component, { ...props, ...attrs }, slots)
+
+                    // Proxy top-level setup/render context so test wrapper resolves child component
+                    const clonedComponent = {
+                      ...component,
+                      render: render ? (_ctx: any, ...args: any[]) => render(renderContext, ...args) : undefined,
+                      setup: setup ? (props: Record<string, any>, ctx: Record<string, any>) => setup(props, setupContext) : undefined
+                    }
+
+                    return () => h(clonedComponent, { ...props, ...attrs }, slots)
                   },
                 }),
             }
           ),
       },
       defu(_options, {
+        slots,
         global: {
           config: {
             globalProperties: vueApp.config.globalProperties,
diff --git a/playground/components/WrapperTests.vue b/playground/components/WrapperTests.vue
new file mode 100644
index 00000000..1dc856ad
--- /dev/null
+++ b/playground/components/WrapperTests.vue
@@ -0,0 +1,20 @@
+<script setup lang="ts">
+const emit = defineEmits<{
+  customEvent: [id: string]
+  otherEvent: []
+}>()
+
+function testExpose () {
+  return 'expose was successful'
+}
+
+defineExpose({
+  testExpose
+})
+</script>
+
+<template>
+  <div>
+    <button @click="emit('customEvent', 'foo'); $emit('otherEvent')">Click me!</button>
+  </div>
+</template>
diff --git a/playground/tests/nuxt/index.spec.ts b/playground/tests/nuxt/index.spec.ts
index b2d62451..03b2d78e 100644
--- a/playground/tests/nuxt/index.spec.ts
+++ b/playground/tests/nuxt/index.spec.ts
@@ -5,6 +5,7 @@ import { mountSuspended, registerEndpoint } from 'vitest-environment-nuxt/utils'
 import App from '~/app.vue'
 import FetchComponent from '~/components/FetchComponent.vue'
 import OptionsComponent from '~/components/OptionsComponent.vue'
+import { WrapperTests } from '#components'
 
 describe('client-side nuxt features', () => {
   it('can use core nuxt composables within test file', () => {
@@ -80,6 +81,23 @@ describe('test utils', () => {
     )
   })
 
+  it('can receive emitted events from components mounted within nuxt suspense', async () => {
+    const component = await mountSuspended(WrapperTests)
+    component.find('button').trigger('click')
+    expect(component.emitted()).toMatchInlineSnapshot(`
+      {
+        "customEvent": [
+          [
+            "foo",
+          ],
+        ],
+        "otherEvent": [
+          [],
+        ],
+      }
+    `)
+  })
+
   it('can mock fetch requests', async () => {
     registerEndpoint('https://jsonplaceholder.typicode.com/todos/1', () => ({
       title: 'title from mocked api',