diff --git a/packages/language-core/lib/codegen/template/vFor.ts b/packages/language-core/lib/codegen/template/vFor.ts
index deb52c29a6..fe727b89d3 100644
--- a/packages/language-core/lib/codegen/template/vFor.ts
+++ b/packages/language-core/lib/codegen/template/vFor.ts
@@ -1,10 +1,11 @@
 import * as CompilerDOM from '@vue/compiler-dom';
 import type { Code } from '../../types';
-import { collectVars, createTsAst, endOfLine, newLine } from '../common';
+import { collectVars, createTsAst, newLine } from '../common';
 import type { TemplateCodegenContext } from './context';
 import type { TemplateCodegenOptions } from './index';
 import { generateInterpolation } from './interpolation';
 import { generateTemplateChild } from './templateChild';
+import { generateElement } from './element';
 
 export function* generateVFor(
 	options: TemplateCodegenOptions,
@@ -51,32 +52,96 @@ export function* generateVFor(
 		ctx.addLocalVariable(varName);
 	}
 	let isFragment = true;
-	for (const argument of node.codegenNode?.children.arguments ?? []) {
-		if (
-			argument.type === CompilerDOM.NodeTypes.JS_FUNCTION_EXPRESSION
-			&& argument.returns?.type === CompilerDOM.NodeTypes.VNODE_CALL
-			&& argument.returns?.props?.type === CompilerDOM.NodeTypes.JS_OBJECT_EXPRESSION
-		) {
-			if (argument.returns.tag !== CompilerDOM.FRAGMENT) {
-				isFragment = false;
-				continue;
-			}
-			for (const prop of argument.returns.props.properties) {
-				if (
-					prop.value.type === CompilerDOM.NodeTypes.SIMPLE_EXPRESSION
-					&& !prop.value.isStatic
-				) {
-					yield* generateInterpolation(
-						options,
-						ctx,
-						prop.value.content,
-						prop.value.loc,
-						prop.value.loc.start.offset,
-						ctx.codeFeatures.all,
-						'(',
-						')'
-					);
-					yield endOfLine;
+	if (node.codegenNode) {
+		for (const argument of node.codegenNode.children.arguments) {
+			if (
+				argument.type === CompilerDOM.NodeTypes.JS_FUNCTION_EXPRESSION
+				&& argument.returns?.type === CompilerDOM.NodeTypes.VNODE_CALL
+				&& argument.returns?.props?.type === CompilerDOM.NodeTypes.JS_OBJECT_EXPRESSION
+			) {
+				if (argument.returns.tag !== CompilerDOM.FRAGMENT) {
+					isFragment = false;
+					continue;
+				}
+				// #4539, #329
+				for (const prop of argument.returns.props.properties) {
+					if (
+						prop.key.type === CompilerDOM.NodeTypes.SIMPLE_EXPRESSION
+						&& prop.value.type === CompilerDOM.NodeTypes.SIMPLE_EXPRESSION
+					) {
+						const codeBeforeKeyOffset = prop.value.loc.start.offset - node.codegenNode.loc.start.offset;
+						const codeBeforeKey = node.codegenNode.loc.source.slice(0, codeBeforeKeyOffset);
+						const isShorthand = codeBeforeKey[codeBeforeKey.length - 1] === ':';
+						const lastKeyStartOffset = isShorthand ? codeBeforeKeyOffset : codeBeforeKey.lastIndexOf('key');
+						let fakeProp: CompilerDOM.AttributeNode | CompilerDOM.DirectiveNode;
+						if (prop.value.isStatic) {
+							fakeProp = {
+								type: CompilerDOM.NodeTypes.ATTRIBUTE,
+								name: prop.key.content,
+								nameLoc: {} as any,
+								value: {
+									type: CompilerDOM.NodeTypes.TEXT,
+									content: prop.value.content,
+									loc: prop.value.loc,
+								},
+								loc: {
+									...prop.loc,
+									start: {
+										...prop.loc.start,
+										offset: node.codegenNode.loc.start.offset + lastKeyStartOffset,
+									},
+									end: {
+										...prop.loc.end,
+										offset: node.codegenNode.loc.start.offset + lastKeyStartOffset + 3,
+									}
+								},
+							};
+						}
+						else {
+							fakeProp = {
+								type: CompilerDOM.NodeTypes.DIRECTIVE,
+								name: 'bind',
+								rawName: '',
+								arg: {
+									...prop.key,
+									loc: {
+										...prop.key.loc,
+										start: {
+											...prop.key.loc.start,
+											offset: node.codegenNode.loc.start.offset + lastKeyStartOffset,
+										},
+										end: {
+											...prop.key.loc.end,
+											offset: node.codegenNode.loc.start.offset + lastKeyStartOffset + 3,
+										}
+									}
+								},
+								exp: prop.value,
+								loc: {
+									...prop.key.loc,
+									start: {
+										...prop.key.loc.start,
+										offset: node.codegenNode.loc.start.offset + lastKeyStartOffset,
+									},
+									end: {
+										...prop.key.loc.end,
+										offset: node.codegenNode.loc.start.offset + lastKeyStartOffset + 3,
+									}
+								},
+								modifiers: [],
+							};
+						}
+						yield* generateElement(options, ctx, {
+							type: CompilerDOM.NodeTypes.ELEMENT,
+							tag: 'template',
+							tagType: CompilerDOM.ElementTypes.TEMPLATE,
+							ns: 0,
+							children: node.children,
+							loc: node.codegenNode.loc,
+							props: [fakeProp],
+							codegenNode: undefined,
+						}, currentComponent, componentCtxVar);
+					}
 				}
 			}
 		}
diff --git a/packages/language-core/lib/codegen/template/vIf.ts b/packages/language-core/lib/codegen/template/vIf.ts
index e12e14b215..4f1a29b7c5 100644
--- a/packages/language-core/lib/codegen/template/vIf.ts
+++ b/packages/language-core/lib/codegen/template/vIf.ts
@@ -6,6 +6,7 @@ import type { TemplateCodegenContext } from './context';
 import type { TemplateCodegenOptions } from './index';
 import { generateInterpolation } from './interpolation';
 import { generateTemplateChild } from './templateChild';
+import { generateElement } from './element';
 
 export function* generateVIf(
 	options: TemplateCodegenOptions,
@@ -58,6 +59,23 @@ export function* generateVIf(
 		if (isFragment(node)) {
 			yield* ctx.resetDirectiveComments('end of v-if start');
 		}
+		// #4539
+		if (
+			node.codegenNode
+			&& node.codegenNode.type === CompilerDOM.NodeTypes.JS_CONDITIONAL_EXPRESSION
+			&& node.codegenNode.consequent.type === CompilerDOM.NodeTypes.VNODE_CALL
+			&& node.codegenNode.consequent.tag === CompilerDOM.FRAGMENT
+		) {
+			yield* generateElement(options, ctx, {
+				...branch,
+				type: CompilerDOM.NodeTypes.ELEMENT,
+				tag: "template",
+				tagType: CompilerDOM.ElementTypes.TEMPLATE,
+				props: branch.userKey ? [branch.userKey] : [],
+				ns: 0,
+				codegenNode: undefined
+			}, currentComponent, componentCtxVar);
+		}
 		let prev: CompilerDOM.TemplateChildNode | undefined;
 		for (const childNode of branch.children) {
 			yield* generateTemplateChild(options, ctx, childNode, currentComponent, prev, componentCtxVar);
diff --git a/packages/tsc/tests/index.spec.ts b/packages/tsc/tests/index.spec.ts
index c6d1c8b594..e946c8ff34 100644
--- a/packages/tsc/tests/index.spec.ts
+++ b/packages/tsc/tests/index.spec.ts
@@ -9,6 +9,7 @@ const shouldErrorDirs = [
 	'should-error',
 	'should-error-2',
 	'should-error-3',
+	'should-error-#4539',
 ];
 
 function prettyPath(path: string, isRoot: boolean) {
diff --git a/test-workspace/tsc/should-error-#4539/main.vue b/test-workspace/tsc/should-error-#4539/main.vue
new file mode 100644
index 0000000000..bcc32e2fe1
--- /dev/null
+++ b/test-workspace/tsc/should-error-#4539/main.vue
@@ -0,0 +1,11 @@
+<script setup lang="ts">
+const key = {};
+</script>
+
+<template>
+  <template v-for="_i in 1" :key></template>
+  <template v-for="_i in 1" :key="{}"></template>
+  <template v-if="true" :key></template>
+  <template v-if="true" :key="{}"></template>
+  <div v-if="true" :key="{}"></div>
+</template>
diff --git a/test-workspace/tsc/should-error-#4539/tsconfig.json b/test-workspace/tsc/should-error-#4539/tsconfig.json
new file mode 100644
index 0000000000..a1e651d6e8
--- /dev/null
+++ b/test-workspace/tsc/should-error-#4539/tsconfig.json
@@ -0,0 +1,4 @@
+{
+	"extends": "../../tsconfig.json",
+	"include": [ "**/*" ]
+}