diff --git a/packages/vite/src/template-tag.ts b/packages/vite/src/template-tag.ts
index 5cd8c63f5d..61709f1276 100644
--- a/packages/vite/src/template-tag.ts
+++ b/packages/vite/src/template-tag.ts
@@ -8,7 +8,7 @@ export function templateTag({ inline_source_map } = { inline_source_map: false }
   let preprocessor = new Preprocessor();
 
   function candidates(id: string) {
-    return [id + '.gjs', id + '.gts', id + '/index.gjs', id + '/index.gts'];
+    return [id + '.gjs', id + '.gts'];
   }
 
   return {
diff --git a/tests/vite-app/app/components/fancy.gts b/tests/vite-app/app/components/fancy.gts
index b66c973055..39b58c5afa 100644
--- a/tests/vite-app/app/components/fancy.gts
+++ b/tests/vite-app/app/components/fancy.gts
@@ -1,2 +1,10 @@
-<template>Yay for gts!</template>
+import WithIndex from './with-index';
+
+export const Other = <template>
+  <WithIndex @message='direct import' />
+</template>
+
+<template>
+Yay for gts!
+</template>
 
diff --git a/tests/vite-app/app/components/with-index/index.gjs b/tests/vite-app/app/components/with-index/index.gjs
new file mode 100644
index 0000000000..129050ace1
--- /dev/null
+++ b/tests/vite-app/app/components/with-index/index.gjs
@@ -0,0 +1,3 @@
+export default <template>
+  In Index {{@message}}
+</template>
diff --git a/tests/vite-app/app/templates/application.hbs b/tests/vite-app/app/templates/application.hbs
index d28e8e4ccb..4ad510c3ab 100644
--- a/tests/vite-app/app/templates/application.hbs
+++ b/tests/vite-app/app/templates/application.hbs
@@ -1,6 +1,7 @@
 {{page-title "ViteApp"}}
 
 <Example @message={{this.model.message}} />
+<WithIndex @message="compat mode" />
 
 <WelcomePage />
 {{! Feel free to remove this! }}