diff --git a/packages/language-core/lib/codegen/globalTypes.ts b/packages/language-core/lib/codegen/globalTypes.ts
index 83befdd7fc..79a4e66f4a 100644
--- a/packages/language-core/lib/codegen/globalTypes.ts
+++ b/packages/language-core/lib/codegen/globalTypes.ts
@@ -42,6 +42,58 @@ export function generateGlobalTypes(options: VueCompilerOptions) {
 	type __VLS_IsAny<T> = 0 extends 1 & T ? true : false;
 	type __VLS_PickNotAny<A, B> = __VLS_IsAny<A> extends true ? B : A;
 	type __VLS_SpreadMerge<A, B> = Omit<A, keyof B> & B;
+	type __VLS_PublicInstanceWithoutExpose<T> =
+		T extends import('${lib}').CreateComponentPublicInstanceWithMixins<
+			infer P,
+			infer B,
+			infer D,
+			infer C extends import('${lib}').ComputedOptions,
+			infer M extends import('${lib}').MethodOptions,
+			infer Mixin extends import('${lib}').ComponentOptionsMixin,
+			infer Extends extends import('${lib}').ComponentOptionsMixin,
+			infer E extends import('${lib}').EmitsOptions,
+			infer PublicProps,
+			infer Defaults,
+			infer MakeDefaultsOptional extends boolean,
+			infer I extends import('${lib}').ComponentInjectOptions,
+			infer S extends import('${lib}').SlotsType,
+			infer LC extends Record<string, import('${lib}').Component>,
+			infer Directives extends Record<string, import('${lib}').Directive>,
+			infer Exposed extends string,
+			infer TypeRefs extends Record<string, unknown>,
+			infer TypeEl extends Element,
+			infer Provide extends import('${lib}').ComponentProvideOptions,
+			infer PublicMixin,
+			infer PublicP,
+			infer PublicB
+		>
+			? '' extends Exposed
+				? T
+				: import('${lib}').CreateComponentPublicInstanceWithMixins<
+					P,
+					B,
+					D,
+					C,
+					M,
+					Mixin,
+					Extends,
+					E,
+					PublicProps,
+					Defaults,
+					MakeDefaultsOptional,
+					I,
+					S,
+					LC,
+					Directives,
+					'',
+					TypeRefs,
+					TypeEl,
+					Provide,
+					PublicMixin,
+					PublicP,
+					PublicB
+				>
+			: T;
 	type __VLS_WithComponent<N0 extends string, LocalComponents, Self, N1 extends string, N2 extends string, N3 extends string> =
 		N1 extends keyof LocalComponents ? { [K in N0]: LocalComponents[N1] } :
 		N2 extends keyof LocalComponents ? { [K in N0]: LocalComponents[N2] } :
diff --git a/packages/language-core/lib/codegen/script/template.ts b/packages/language-core/lib/codegen/script/template.ts
index f0e2f937c7..2336de82a4 100644
--- a/packages/language-core/lib/codegen/script/template.ts
+++ b/packages/language-core/lib/codegen/script/template.ts
@@ -53,7 +53,13 @@ function* generateTemplateCtx(
 		exps.push(`globalThis`);
 	}
 	if (options.sfc.script?.src || options.scriptRanges?.exportDefault) {
-		exps.push(`{} as InstanceType<__VLS_PickNotAny<typeof __VLS_self, new () => {}>>`);
+		yield `type __VLS_SelfInstance = InstanceType<__VLS_PickNotAny<typeof __VLS_self, new () => {}>>${endOfLine}`;
+		if (options.scriptRanges?.componentOptions?.hasExposeOption) {
+			exps.push(`{} as __VLS_PublicInstanceWithoutExpose<__VLS_SelfInstance>`);
+		}
+		else {
+			exps.push(`{} as __VLS_SelfInstance`);
+		}
 	}
 	else {
 		exps.push(`{} as import('${options.vueCompilerOptions.lib}').ComponentPublicInstance`);
diff --git a/packages/language-core/lib/parsers/scriptRanges.ts b/packages/language-core/lib/parsers/scriptRanges.ts
index 72788c2551..9a6a389cbf 100644
--- a/packages/language-core/lib/parsers/scriptRanges.ts
+++ b/packages/language-core/lib/parsers/scriptRanges.ts
@@ -21,6 +21,7 @@ export function parseScriptRanges(ts: typeof import('typescript'), ast: ts.Sourc
 			directives: TextRange | undefined;
 			name: TextRange | undefined;
 			inheritAttrs: string | undefined;
+			hasExposeOption: boolean;
 		}
 		| undefined;
 
@@ -57,6 +58,7 @@ export function parseScriptRanges(ts: typeof import('typescript'), ast: ts.Sourc
 				let directivesOptionNode: ts.ObjectLiteralExpression | undefined;
 				let nameOptionNode: ts.Expression | undefined;
 				let inheritAttrsOption: string | undefined;
+				let hasExposeOption = false;
 				ts.forEachChild(obj, node => {
 					if (ts.isPropertyAssignment(node) && ts.isIdentifier(node.name)) {
 						const name = _getNodeText(node.name);
@@ -72,6 +74,9 @@ export function parseScriptRanges(ts: typeof import('typescript'), ast: ts.Sourc
 						else if (name === 'inheritAttrs') {
 							inheritAttrsOption = _getNodeText(node.initializer);
 						}
+						else if (name === 'expose') {
+							hasExposeOption = true;
+						}
 					}
 				});
 				componentOptions = {
@@ -83,6 +88,7 @@ export function parseScriptRanges(ts: typeof import('typescript'), ast: ts.Sourc
 					directives: directivesOptionNode ? _getStartEnd(directivesOptionNode) : undefined,
 					name: nameOptionNode ? _getStartEnd(nameOptionNode) : undefined,
 					inheritAttrs: inheritAttrsOption,
+					hasExposeOption,
 				};
 			}
 		}
diff --git a/test-workspace/tsc/passedFixtures/vue3/#5069/main.vue b/test-workspace/tsc/passedFixtures/vue3/#5069/main.vue
new file mode 100644
index 0000000000..50eea53086
--- /dev/null
+++ b/test-workspace/tsc/passedFixtures/vue3/#5069/main.vue
@@ -0,0 +1,42 @@
+<script lang="ts">
+import { defineComponent, ref } from 'vue'
+
+export default defineComponent({
+    setup() {
+        const setup1 = ref('setup1');
+        const setup2 = ref('setup2');
+        return { setup1, setup2 };
+    },
+    data() {
+        return {
+            data1: 1
+        }
+    },
+    props: {
+        props1: {
+            type: String,
+        }
+    },
+    computed: {
+        computed1(): string {
+            return this.setup1.toUpperCase();
+        }
+    },
+    methods: {
+        methods1(): string {
+            return `methods1`;
+        }
+    },
+    expose: ['setup1']
+});
+</script>
+
+<template>
+    <div @click="methods1()">
+        {{ setup1 }}
+        {{ setup2 }}
+        {{ data1 }}
+        {{ props1 }}
+        {{ computed1 }}
+    </div>
+</template>