diff --git a/examples/app-vitest-full/components/BoundAttrs.vue b/examples/app-vitest-full/components/BoundAttrs.vue
new file mode 100644
index 000000000..da98db79f
--- /dev/null
+++ b/examples/app-vitest-full/components/BoundAttrs.vue
@@ -0,0 +1,23 @@
+<template>
+  <button :type="type" v-bind="attrs" />
+</template>
+
+<script lang="ts">
+import { computed, defineComponent } from 'vue'
+
+export default defineComponent({
+  props: {
+    type: {
+      type: String as () => 'button',
+      default: 'button'
+    }
+  },
+  setup () {
+    return {
+      attrs: computed(() => ({
+        'data-test': 'true'
+      }))
+    }
+  }
+})
+</script>
diff --git a/examples/app-vitest-full/tests/nuxt/mount-suspended.spec.ts b/examples/app-vitest-full/tests/nuxt/mount-suspended.spec.ts
index e599ddeb7..e8341656d 100644
--- a/examples/app-vitest-full/tests/nuxt/mount-suspended.spec.ts
+++ b/examples/app-vitest-full/tests/nuxt/mount-suspended.spec.ts
@@ -14,6 +14,8 @@ import ExportDefineComponent from '~/components/ExportDefineComponent.vue'
 import ExportDefaultWithRenderComponent from '~/components/ExportDefaultWithRenderComponent.vue'
 import ExportDefaultReturnsRenderComponent from '~/components/ExportDefaultReturnsRenderComponent.vue'
 
+import { BoundAttrs } from '#components'
+
 const formats = {
   ExportDefaultComponent,
   ExportDefineComponent,
@@ -32,6 +34,13 @@ describe('mountSuspended', () => {
     `)
   })
 
+  it('should handle passing setup state and props to template', async () => {
+    const wrappedComponent = await mountSuspended(BoundAttrs)
+    const component = mount(BoundAttrs)
+
+    expect(component.html()).toEqual(wrappedComponent.html())
+  })
+
   it('should work with shallow mounting within suspense', async () => {
     const component = await mountSuspended(App, { shallow: true })
     expect(component.html()).toMatchInlineSnapshot(`
diff --git a/src/runtime-utils/mount.ts b/src/runtime-utils/mount.ts
index 87d5d4626..f1adb03ef 100644
--- a/src/runtime-utils/mount.ts
+++ b/src/runtime-utils/mount.ts
@@ -1,6 +1,6 @@
 import { mount } from '@vue/test-utils'
 import type { ComponentMountingOptions } from '@vue/test-utils'
-import { Suspense, h, nextTick } from 'vue'
+import { Suspense, h, nextTick, isReadonly } from 'vue'
 import type { DefineComponent, SetupContext } from 'vue'
 import { defu } from 'defu'
 import type { RouteLocationRaw } from 'vue-router'
@@ -60,10 +60,12 @@ export async function mountSuspended<T>(
   let setupContext: SetupContext
   let setupState: any
 
+  let passedProps: Record<string, any>
   const wrappedSetup = async (
     props: Record<string, any>,
     setupContext: SetupContext
   ) => {
+    passedProps = props
     if (setup) {
       setupState = await setup(props, setupContext)
       return setupState
@@ -105,11 +107,14 @@ export async function mountSuspended<T>(
                         ...component,
                         render: render
                           ? function (this: any, _ctx: any, ...args: any[]) {
+                              for (const key in setupState || {}) {
+                                renderContext[key] = isReadonly(setupState[key]) ? unref(setupState[key]) : setupState[key]
+                              }
                               for (const key in props || {}) {
                                 renderContext[key] = _ctx[key]
                               }
-                              for (const key in setupState || {}) {
-                                renderContext[key] = setupState[key]
+                              for (const key in passedProps || {}) {
+                                renderContext[key] = passedProps[key]
                               }
                               return render.call(this, renderContext, ...args)
                             }