diff --git a/src/index.ts b/src/index.ts
index 414ca70..f89a059 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -114,7 +114,7 @@ export default function PluginVue(userOptions: Partial<Options> = {}): Plugin {
             query.type === 'template'
               ? descriptor.template!
               : query.type === 'script'
-              ? getResolvedScript(descriptor, !isServer)
+              ? getResolvedScript(descriptor, isServer)
               : query.type === 'style'
               ? descriptor.styles[query.index]
               : typeof query.index === 'number'
diff --git a/src/script.ts b/src/script.ts
index f74b00b..4e9c9b6 100644
--- a/src/script.ts
+++ b/src/script.ts
@@ -4,17 +4,15 @@ import { Options } from '.'
 import { getTemplateCompilerOptions } from './template'
 import { createRollupError } from './utils/error'
 
-// since we generate different output based on whether the template is inlined
-// or not, we need to cache the results separately
-const inlinedCache = new WeakMap<SFCDescriptor, SFCScriptBlock | null>()
-const normalCache = new WeakMap<SFCDescriptor, SFCScriptBlock | null>()
+// ssr and non ssr builds would output different script content
+const clientCache = new WeakMap<SFCDescriptor, SFCScriptBlock | null>()
+const serverCache = new WeakMap<SFCDescriptor, SFCScriptBlock | null>()
 
 export function getResolvedScript(
   descriptor: SFCDescriptor,
-  enableInline: boolean
+  isServer: boolean
 ): SFCScriptBlock | null | undefined {
-  const cacheToUse = enableInline ? inlinedCache : normalCache
-  return cacheToUse.get(descriptor)
+  return (isServer ? serverCache : clientCache).get(descriptor)
 }
 
 export function resolveScript(
@@ -29,8 +27,7 @@ export function resolveScript(
     return null
   }
 
-  const enableInline = !isServer
-  const cacheToUse = enableInline ? inlinedCache : normalCache
+  const cacheToUse = isServer ? serverCache : clientCache
   const cached = cacheToUse.get(descriptor)
   if (cached) {
     return cached
@@ -41,12 +38,14 @@ export function resolveScript(
   if (compileScript) {
     try {
       resolved = compileScript(descriptor, {
-        scopeId,
+        id: scopeId,
         isProd,
-        inlineTemplate: enableInline,
-        templateOptions: enableInline
-          ? getTemplateCompilerOptions(options, descriptor, scopeId)
-          : undefined,
+        inlineTemplate: true,
+        templateOptions: getTemplateCompilerOptions(
+          options,
+          descriptor,
+          scopeId
+        ),
       })
     } catch (e) {
       pluginContext.error(createRollupError(descriptor.filename, e))
diff --git a/src/sfc.ts b/src/sfc.ts
index 129dd5e..b6ed291 100644
--- a/src/sfc.ts
+++ b/src/sfc.ts
@@ -42,8 +42,9 @@ export function transformSFCEntry(
   // feature information
   const hasScoped = descriptor.styles.some((s) => s.scoped)
 
-  const useInlineTemplate = descriptor.scriptSetup && !isServer
-  const hasTemplateImport = descriptor.template && !useInlineTemplate
+  const isTemplateInlined =
+    descriptor.scriptSetup && !(descriptor.template && descriptor.template.src)
+  const hasTemplateImport = descriptor.template && !isTemplateInlined
 
   const templateImport = hasTemplateImport
     ? genTemplateCode(descriptor, scopeId, isServer)
diff --git a/src/template.ts b/src/template.ts
index 75d0b4a..b23a8f9 100644
--- a/src/template.ts
+++ b/src/template.ts
@@ -1,5 +1,4 @@
 import {
-  generateCssVars,
   compileTemplate,
   SFCDescriptor,
   SFCTemplateCompileOptions,
@@ -22,6 +21,7 @@ export function transformTemplate(
   const descriptor = getDescriptor(query.filename)
   const result = compileTemplate({
     ...getTemplateCompilerOptions(options, descriptor, query.id),
+    id: query.id,
     source: code,
     filename: query.filename,
   })
@@ -62,17 +62,20 @@ export function getTemplateCompilerOptions(
     return
   }
 
-  const isServer = options.target === 'node'
-  const isProduction =
+  const isProd =
     process.env.NODE_ENV === 'production' || process.env.BUILD === 'production'
+  const isServer = options.target === 'node'
   const hasScoped = descriptor.styles.some((s) => s.scoped)
   const preprocessLang = block.lang
   const preprocessOptions =
     preprocessLang &&
     options.templatePreprocessOptions &&
     options.templatePreprocessOptions[preprocessLang]
-  const resolvedScript = getResolvedScript(descriptor, !isServer)
+  const resolvedScript = getResolvedScript(descriptor, isServer)
   return {
+    id: scopeId,
+    scoped: hasScoped,
+    isProd,
     filename: descriptor.filename,
     inMap: block.src ? undefined : block.map,
     preprocessLang,
@@ -80,13 +83,11 @@ export function getTemplateCompilerOptions(
     preprocessCustomRequire: options.preprocessCustomRequire,
     compiler: options.compiler,
     ssr: isServer,
+    ssrCssVars: descriptor.cssVars,
     compilerOptions: {
       ...options.compilerOptions,
       scopeId: hasScoped ? `data-v-${scopeId}` : undefined,
       bindingMetadata: resolvedScript ? resolvedScript.bindings : undefined,
-      ssrCssVars: isServer
-        ? generateCssVars(descriptor, scopeId, isProduction)
-        : undefined,
     },
     transformAssetUrls: options.transformAssetUrls,
   }