diff --git a/packages/compiler-core/__tests__/transforms/vFor.spec.ts b/packages/compiler-core/__tests__/transforms/vFor.spec.ts
index 7fabcbb579c..046f822c45a 100644
--- a/packages/compiler-core/__tests__/transforms/vFor.spec.ts
+++ b/packages/compiler-core/__tests__/transforms/vFor.spec.ts
@@ -18,7 +18,7 @@ import {
 import { ErrorCodes } from '../../src/errors'
 import { type CompilerOptions, generate } from '../../src'
 import { FRAGMENT, RENDER_LIST, RENDER_SLOT } from '../../src/runtimeHelpers'
-import { PatchFlags } from '@vue/shared'
+import { PatchFlagNames, PatchFlags } from '@vue/shared'
 import { createObjectMatcher, genFlagText } from '../testUtils'
 
 export function parseWithForTransform(
@@ -1019,5 +1019,33 @@ describe('compiler: v-for', () => {
       })
       expect(generate(root).code).toMatchSnapshot()
     })
+
+    test('template v-for key w/ :key shorthand on div', () => {
+      const {
+        node: { codegenNode },
+      } = parseWithForTransform('<div v-for="key in keys" :key>test</div>')
+      expect(codegenNode.patchFlag).toBe(
+        `${PatchFlags.KEYED_FRAGMENT} /* ${PatchFlagNames[PatchFlags.KEYED_FRAGMENT]} */`,
+      )
+    })
+
+    test('template v-for key w/ :key shorthand on template injected to the child', () => {
+      const {
+        node: { codegenNode },
+      } = parseWithForTransform(
+        '<template v-for="key in keys" :key><div>test</div></template>',
+      )
+      expect(assertSharedCodegen(codegenNode, true)).toMatchObject({
+        source: { content: `keys` },
+        params: [{ content: `key` }],
+        innerVNodeCall: {
+          type: NodeTypes.VNODE_CALL,
+          tag: `"div"`,
+          props: createObjectMatcher({
+            key: '[key]',
+          }),
+        },
+      })
+    })
   })
 })
diff --git a/packages/compiler-core/src/transforms/vBind.ts b/packages/compiler-core/src/transforms/vBind.ts
index 234cf1fbc30..f5c06b870ea 100644
--- a/packages/compiler-core/src/transforms/vBind.ts
+++ b/packages/compiler-core/src/transforms/vBind.ts
@@ -1,5 +1,6 @@
-import type { DirectiveTransform } from '../transform'
+import type { DirectiveTransform, TransformContext } from '../transform'
 import {
+  type DirectiveNode,
   type ExpressionNode,
   NodeTypes,
   type SimpleExpressionNode,
@@ -41,25 +42,11 @@ export const transformBind: DirectiveTransform = (dir, _node, context) => {
 
   // same-name shorthand - :arg is expanded to :arg="arg"
   if (!exp) {
-    if (arg.type !== NodeTypes.SIMPLE_EXPRESSION || !arg.isStatic) {
-      // only simple expression is allowed for same-name shorthand
-      context.onError(
-        createCompilerError(
-          ErrorCodes.X_V_BIND_INVALID_SAME_NAME_ARGUMENT,
-          arg.loc,
-        ),
-      )
-      return {
-        props: [
-          createObjectProperty(arg, createSimpleExpression('', true, loc)),
-        ],
-      }
-    }
+    if (!exp) {
+      const returned = transformBindShorthand(dir, context)
+      if (returned) return returned
 
-    const propName = camelize((arg as SimpleExpressionNode).content)
-    exp = dir.exp = createSimpleExpression(propName, false, arg.loc)
-    if (!__BROWSER__) {
-      exp = dir.exp = processExpression(exp, context)
+      exp = dir.exp!
     }
   }
 
@@ -98,6 +85,32 @@ export const transformBind: DirectiveTransform = (dir, _node, context) => {
   }
 }
 
+export const transformBindShorthand = (
+  dir: DirectiveNode,
+  context: TransformContext,
+) => {
+  const arg = dir.arg!
+  const { loc } = dir
+  if (arg.type !== NodeTypes.SIMPLE_EXPRESSION || !arg.isStatic) {
+    // only simple expression is allowed for same-name shorthand
+    context.onError(
+      createCompilerError(
+        ErrorCodes.X_V_BIND_INVALID_SAME_NAME_ARGUMENT,
+        arg.loc,
+      ),
+    )
+    return {
+      props: [createObjectProperty(arg, createSimpleExpression('', true, loc))],
+    }
+  }
+
+  const propName = camelize((arg as SimpleExpressionNode).content)
+  dir.exp = createSimpleExpression(propName, false, arg.loc)
+  if (!__BROWSER__) {
+    dir.exp = processExpression(dir.exp, context)
+  }
+}
+
 const injectPrefix = (arg: ExpressionNode, prefix: string) => {
   if (arg.type === NodeTypes.SIMPLE_EXPRESSION) {
     if (arg.isStatic) {
diff --git a/packages/compiler-core/src/transforms/vFor.ts b/packages/compiler-core/src/transforms/vFor.ts
index 5d423ee2429..35fe2048724 100644
--- a/packages/compiler-core/src/transforms/vFor.ts
+++ b/packages/compiler-core/src/transforms/vFor.ts
@@ -47,6 +47,7 @@ import {
 import { processExpression } from './transformExpression'
 import { validateBrowserExpression } from '../validateExpression'
 import { PatchFlagNames, PatchFlags } from '@vue/shared'
+import { transformBindShorthand } from './vBind'
 
 export const transformFor = createStructuralDirectiveTransform(
   'for',
@@ -60,13 +61,20 @@ export const transformFor = createStructuralDirectiveTransform(
       ]) as ForRenderListExpression
       const isTemplate = isTemplateNode(node)
       const memo = findDir(node, 'memo')
-      const keyProp = findProp(node, `key`)
+      const keyProp = findProp(node, `key`, false, true)
+      if (keyProp && keyProp.type === NodeTypes.DIRECTIVE && !keyProp.exp) {
+        // try to resolve :key shorthand #10882
+        transformBindShorthand(keyProp, context)
+      }
       const keyExp =
         keyProp &&
         (keyProp.type === NodeTypes.ATTRIBUTE
-          ? createSimpleExpression(keyProp.value!.content, true)
-          : keyProp.exp!)
-      const keyProperty = keyProp ? createObjectProperty(`key`, keyExp!) : null
+          ? keyProp.value
+            ? createSimpleExpression(keyProp.value.content, true)
+            : undefined
+          : keyProp.exp)
+      const keyProperty =
+        keyProp && keyExp ? createObjectProperty(`key`, keyExp) : null
 
       if (!__BROWSER__ && isTemplate) {
         // #2085 / #5288 process :key and v-memo expressions need to be