diff --git a/dev-packages/e2e-tests/test-applications/nuxt-3/package.json b/dev-packages/e2e-tests/test-applications/nuxt-3/package.json
index 72acea9f33b6..a487d61a144b 100644
--- a/dev-packages/e2e-tests/test-applications/nuxt-3/package.json
+++ b/dev-packages/e2e-tests/test-applications/nuxt-3/package.json
@@ -6,7 +6,7 @@
     "build": "nuxt build",
     "dev": "nuxt dev",
     "generate": "nuxt generate",
-    "preview": "nuxt preview",
+    "preview": "NODE_OPTIONS='--import ./public/instrument.server.mjs' nuxt preview",
     "clean": "npx nuxi cleanup",
     "test": "playwright test",
     "test:build": "pnpm install && npx playwright install && pnpm build",
diff --git a/dev-packages/e2e-tests/test-applications/nuxt-3/public/instrument.server.mjs b/dev-packages/e2e-tests/test-applications/nuxt-3/public/instrument.server.mjs
new file mode 100644
index 000000000000..729b2296c683
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/nuxt-3/public/instrument.server.mjs
@@ -0,0 +1,8 @@
+import * as Sentry from '@sentry/nuxt';
+
+Sentry.init({
+  dsn: 'https://public@dsn.ingest.sentry.io/1337',
+  environment: 'qa', // dynamic sampling bias to keep transactions
+  tracesSampleRate: 1.0, //  Capture 100% of the transactions
+  tunnel: 'http://localhost:3031/', // proxy server
+});
diff --git a/dev-packages/e2e-tests/test-applications/nuxt-3/tests/performance.server.test.ts b/dev-packages/e2e-tests/test-applications/nuxt-3/tests/performance.server.test.ts
new file mode 100644
index 000000000000..5b78e235e564
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/nuxt-3/tests/performance.server.test.ts
@@ -0,0 +1,46 @@
+import { expect, test } from '@playwright/test';
+import { waitForTransaction } from '@sentry-internal/test-utils';
+import { SEMANTIC_ATTRIBUTE_SENTRY_OP, SEMANTIC_ATTRIBUTE_SENTRY_ORIGIN } from '@sentry/core';
+
+test('sends a server action transaction on pageload', async ({ page }) => {
+  const transactionPromise = waitForTransaction('nuxt-3', transactionEvent => {
+    return transactionEvent.transaction.includes('GET /test-param/');
+  });
+
+  await page.goto('/test-param/1234');
+
+  const transaction = await transactionPromise;
+
+  expect(transaction.contexts.trace).toEqual(
+    expect.objectContaining({
+      data: expect.objectContaining({
+        [SEMANTIC_ATTRIBUTE_SENTRY_OP]: 'http.server',
+        [SEMANTIC_ATTRIBUTE_SENTRY_ORIGIN]: 'auto.http.otel.http',
+      }),
+    }),
+  );
+});
+
+test('does not send transactions for build asset folder "_nuxt"', async ({ page }) => {
+  let buildAssetFolderOccurred = false;
+
+  waitForTransaction('nuxt-3', transactionEvent => {
+    if (transactionEvent.transaction?.match(/^GET \/_nuxt\//)) {
+      buildAssetFolderOccurred = true;
+    }
+    return false; // expects to return a boolean (but not relevant here)
+  });
+
+  const transactionEventPromise = waitForTransaction('nuxt-3', transactionEvent => {
+    return transactionEvent.transaction.includes('GET /test-param/');
+  });
+
+  await page.goto('/test-param/1234');
+
+  const transactionEvent = await transactionEventPromise;
+
+  expect(buildAssetFolderOccurred).toBe(false);
+
+  // todo: url not yet parametrized
+  expect(transactionEvent.transaction).toBe('GET /test-param/1234');
+});
diff --git a/packages/nuxt/src/server/sdk.ts b/packages/nuxt/src/server/sdk.ts
index 4faae8e6ef1a..f14cc23ab8cd 100644
--- a/packages/nuxt/src/server/sdk.ts
+++ b/packages/nuxt/src/server/sdk.ts
@@ -1,6 +1,6 @@
-import { applySdkMetadata } from '@sentry/core';
+import { applySdkMetadata, getGlobalScope } from '@sentry/core';
 import { init as initNode } from '@sentry/node';
-import type { Client } from '@sentry/types';
+import type { Client, EventProcessor } from '@sentry/types';
 import type { SentryNuxtOptions } from '../common/types';
 
 /**
@@ -15,5 +15,30 @@ export function init(options: SentryNuxtOptions): Client | undefined {
 
   applySdkMetadata(sentryOptions, 'nuxt', ['nuxt', 'node']);
 
-  return initNode(sentryOptions);
+  const client = initNode(sentryOptions);
+
+  getGlobalScope().addEventProcessor(
+    Object.assign(
+      (event => {
+        if (event.type === 'transaction') {
+          // Filter out transactions for Nuxt build assets
+          // This regex matches the default path to the nuxt-generated build assets (`_nuxt`).
+          // todo: the buildAssetDir could be changed in the nuxt config - change this to a more generic solution
+          if (event.transaction?.match(/^GET \/_nuxt\//)) {
+            options.debug &&
+              // eslint-disable-next-line no-console
+              console.log('[Sentry] NuxtLowQualityTransactionsFilter filtered transaction: ', event.transaction);
+            return null;
+          }
+
+          return event;
+        } else {
+          return event;
+        }
+      }) satisfies EventProcessor,
+      { id: 'NuxtLowQualityTransactionsFilter' },
+    ),
+  );
+
+  return client;
 }
diff --git a/packages/nuxt/test/server/sdk.test.ts b/packages/nuxt/test/server/sdk.test.ts
new file mode 100644
index 000000000000..8d84dc8b15c8
--- /dev/null
+++ b/packages/nuxt/test/server/sdk.test.ts
@@ -0,0 +1,42 @@
+import * as SentryNode from '@sentry/node';
+import { SDK_VERSION } from '@sentry/node';
+import { beforeEach, describe, expect, it, vi } from 'vitest';
+import { init } from '../../src/server';
+
+const nodeInit = vi.spyOn(SentryNode, 'init');
+
+describe('Nuxt Server SDK', () => {
+  describe('init', () => {
+    beforeEach(() => {
+      vi.clearAllMocks();
+    });
+
+    it('Adds Nuxt metadata to the SDK options', () => {
+      expect(nodeInit).not.toHaveBeenCalled();
+
+      init({
+        dsn: 'https://public@dsn.ingest.sentry.io/1337',
+      });
+
+      const expectedMetadata = {
+        _metadata: {
+          sdk: {
+            name: 'sentry.javascript.nuxt',
+            version: SDK_VERSION,
+            packages: [
+              { name: 'npm:@sentry/nuxt', version: SDK_VERSION },
+              { name: 'npm:@sentry/node', version: SDK_VERSION },
+            ],
+          },
+        },
+      };
+
+      expect(nodeInit).toHaveBeenCalledTimes(1);
+      expect(nodeInit).toHaveBeenLastCalledWith(expect.objectContaining(expectedMetadata));
+    });
+
+    it('returns client from init', () => {
+      expect(init({})).not.toBeUndefined();
+    });
+  });
+});