diff --git a/docs/rules/multi-word-component-names.md b/docs/rules/multi-word-component-names.md
index 0baefe4d5..33e48fb00 100644
--- a/docs/rules/multi-word-component-names.md
+++ b/docs/rules/multi-word-component-names.md
@@ -65,6 +65,7 @@ export default {
 <eslint-code-block filename="src/Todo.vue" :rules="{'vue/multi-word-component-names': ['error']}">
 
 ```vue
+<!-- filename: Todo.vue -->
 <script>
 /* ✗ BAD */
 export default {
@@ -77,11 +78,47 @@ export default {
 
 ## :wrench: Options
 
-Nothing.
+```json
+{
+  "vue/multi-word-component-names": ["error", {
+    "ignores": []
+  }]
+}
+```
+
+- `ignores` (`string[]`) ... The component names to ignore. Sets the component name to allow.
+
+### `ignores: ["Todo"]`
+
+<eslint-code-block fix :rules="{'vue/multi-word-component-names': ['error', {ignores: ['Todo']}]}">
+
+```vue
+<script>
+export default {
+  /* ✓ GOOD */
+  name: 'Todo'
+}
+</script>
+```
+
+</eslint-code-block>
+
+<eslint-code-block fix :rules="{'vue/multi-word-component-names': ['error', {ignores: ['Todo']}]}">
+
+```vue
+<script>
+export default {
+  /* ✗ BAD */
+  name: 'Item'
+}
+</script>
+```
+
+</eslint-code-block>
 
 ## :books: Further Reading
 
-- [Style guide - Multi-word component names](https://vuejs.org/v2/style-guide/#Multi-word-component-names-essential)
+- [Style guide - Multi-word component names](https://v3.vuejs.org/style-guide/#multi-word-component-names-essential)
 
 ## :rocket: Version
 
diff --git a/lib/rules/multi-word-component-names.js b/lib/rules/multi-word-component-names.js
index 46e7bfac0..18cc79601 100644
--- a/lib/rules/multi-word-component-names.js
+++ b/lib/rules/multi-word-component-names.js
@@ -15,23 +15,6 @@ const RESERVED_NAMES_IN_VUE3 = new Set(
   require('../utils/vue3-builtin-components')
 )
 
-// ------------------------------------------------------------------------------
-// Helpers
-// ------------------------------------------------------------------------------
-
-/**
- * Returns true if the given component name is valid, otherwise false.
- * @param {string} name
- * */
-function isValidComponentName(name) {
-  if (name.toLowerCase() === 'app' || RESERVED_NAMES_IN_VUE3.has(name)) {
-    return true
-  } else {
-    const elements = casing.kebabCase(name).split('-')
-    return elements.length > 1
-  }
-}
-
 // ------------------------------------------------------------------------------
 // Rule Definition
 // ------------------------------------------------------------------------------
@@ -44,22 +27,92 @@ module.exports = {
       categories: ['vue3-essential', 'essential'],
       url: 'https://eslint.vuejs.org/rules/multi-word-component-names.html'
     },
-    schema: [],
+    schema: [
+      {
+        type: 'object',
+        properties: {
+          ignores: {
+            type: 'array',
+            items: { type: 'string' },
+            uniqueItems: true,
+            additionalItems: false
+          }
+        },
+        additionalProperties: false
+      }
+    ],
     messages: {
       unexpected: 'Component name "{{value}}" should always be multi-word.'
     }
   },
   /** @param {RuleContext} context */
   create(context) {
-    const fileName = context.getFilename()
-    let componentName = fileName.replace(/\.[^/.]+$/, '')
+    /** @type {Set<string>} */
+    const ignores = new Set()
+    ignores.add('App')
+    ignores.add('app')
+    for (const ignore of (context.options[0] && context.options[0].ignores) ||
+      []) {
+      ignores.add(ignore)
+      if (casing.isPascalCase(ignore)) {
+        // PascalCase
+        ignores.add(casing.kebabCase(ignore))
+      }
+    }
+    let hasVue = false
+    let hasName = false
+
+    /**
+     * Returns true if the given component name is valid, otherwise false.
+     * @param {string} name
+     * */
+    function isValidComponentName(name) {
+      if (ignores.has(name) || RESERVED_NAMES_IN_VUE3.has(name)) {
+        return true
+      }
+      const elements = casing.kebabCase(name).split('-')
+      return elements.length > 1
+    }
+
+    /**
+     * @param {Expression | SpreadElement} nameNode
+     */
+    function validateName(nameNode) {
+      if (nameNode.type !== 'Literal') return
+      const componentName = `${nameNode.value}`
+      if (!isValidComponentName(componentName)) {
+        context.report({
+          node: nameNode,
+          messageId: 'unexpected',
+          data: {
+            value: componentName
+          }
+        })
+      }
+    }
 
     return utils.compositingVisitors(
+      utils.executeOnCallVueComponent(context, (node) => {
+        hasVue = true
+        if (node.arguments.length !== 2) return
+        hasName = true
+        validateName(node.arguments[0])
+      }),
+      utils.executeOnVue(context, (obj) => {
+        hasVue = true
+        const node = utils.findProperty(obj, 'name')
+        if (!node) return
+        hasName = true
+        validateName(node.value)
+      }),
       {
         /** @param {Program} node */
-        Program(node) {
+        'Program:exit'(node) {
+          if (hasName) return
+          if (!hasVue && node.body.length > 0) return
+          const fileName = context.getFilename()
+          const componentName = fileName.replace(/\.[^/.]+$/, '')
           if (
-            !node.body.length &&
             utils.isVueFile(fileName) &&
             !isValidComponentName(componentName)
           ) {
@@ -72,44 +125,7 @@ module.exports = {
             })
           }
         }
-      },
-
-      utils.executeOnVue(context, (obj) => {
-        const node = utils.findProperty(obj, 'name')
-
-        /** @type {SourceLocation | null} */
-        let loc = null
-
-        // Check if the component has a name property.
-        if (node) {
-          const valueNode = node.value
-          if (valueNode.type !== 'Literal') return
-
-          componentName = `${valueNode.value}`
-          loc = node.loc
-        } else if (
-          obj.parent.type === 'CallExpression' &&
-          obj.parent.arguments.length === 2
-        ) {
-          // The component is registered globally with 'Vue.component', where
-          // the first paremter is the component name.
-          const argument = obj.parent.arguments[0]
-          if (argument.type !== 'Literal') return
-
-          componentName = `${argument.value}`
-          loc = argument.loc
-        }
-
-        if (!isValidComponentName(componentName)) {
-          context.report({
-            messageId: 'unexpected',
-            data: {
-              value: componentName
-            },
-            loc: loc || { line: 1, column: 0 }
-          })
-        }
-      })
+      }
     )
   }
 }
diff --git a/tests/lib/rules/multi-word-component-names.js b/tests/lib/rules/multi-word-component-names.js
index 65b777984..d143f6388 100644
--- a/tests/lib/rules/multi-word-component-names.js
+++ b/tests/lib/rules/multi-word-component-names.js
@@ -158,6 +158,17 @@ tester.run('multi-word-component-names', rule, {
       Vue.component('TheTest', {})
       </script>
       `
+    },
+    {
+      filename: 'test.vue',
+      options: [{ ignores: ['Todo'] }],
+      code: `
+      <script>
+      export default {
+        name: 'Todo'
+      }
+      </script>
+      `
     }
   ],
   invalid: [
@@ -248,6 +259,23 @@ tester.run('multi-word-component-names', rule, {
           line: 3
         }
       ]
+    },
+    {
+      filename: 'test.vue',
+      options: [{ ignores: ['Todo'] }],
+      code: `
+      <script>
+      export default {
+        name: 'Item'
+      }
+      </script>
+      `,
+      errors: [
+        {
+          message: 'Component name "Item" should always be multi-word.',
+          line: 4
+        }
+      ]
     }
   ]
 })