diff --git a/packages/language-core/lib/codegen/template/element.ts b/packages/language-core/lib/codegen/template/element.ts
index c53338f462..91af8b4bdb 100644
--- a/packages/language-core/lib/codegen/template/element.ts
+++ b/packages/language-core/lib/codegen/template/element.ts
@@ -358,6 +358,13 @@ export function* generateElement(
 	else {
 		yield* generateElementChildren(options, ctx, node, currentComponent, componentCtxVar);
 	}
+
+	if (
+		node.props.some(prop => prop.type === CompilerDOM.NodeTypes.DIRECTIVE && prop.name === 'bind' && prop.exp?.loc.source === '$attrs')
+		|| node === ctx.singleRootNode
+	) {
+		ctx.inheritedAttrVars.add(`__VLS_intrinsicElements.${node.tag}`);
+	}
 }
 
 function* generateVScope(
diff --git a/test-workspace/tsc/passedFixtures/vue3_strictTemplate/#4699/HelloWorld.vue b/test-workspace/tsc/passedFixtures/vue3_strictTemplate/#4699/HelloWorld.vue
new file mode 100644
index 0000000000..b91a472477
--- /dev/null
+++ b/test-workspace/tsc/passedFixtures/vue3_strictTemplate/#4699/HelloWorld.vue
@@ -0,0 +1,42 @@
+<script setup lang="ts">
+defineProps<{
+	msg?: string
+}>()
+</script>
+
+<template>
+	<div class="greetings">
+		<h1 class="green">{{ msg }}</h1>
+		<h3>
+			You’ve successfully created a project with
+			<a href="https://vitejs.dev/" target="_blank" rel="noopener">Vite</a> +
+			<a href="https://vuejs.org/" target="_blank" rel="noopener">Vue 3</a>.
+		</h3>
+	</div>
+</template>
+
+<style scoped>
+h1 {
+	font-weight: 500;
+	font-size: 2.6rem;
+	position: relative;
+	top: -10px;
+}
+
+h3 {
+	font-size: 1.2rem;
+}
+
+.greetings h1,
+.greetings h3 {
+	text-align: center;
+}
+
+@media (min-width: 1024px) {
+
+	.greetings h1,
+	.greetings h3 {
+		text-align: left;
+	}
+}
+</style>
diff --git a/test-workspace/tsc/passedFixtures/vue3_strictTemplate/#4699/main.vue b/test-workspace/tsc/passedFixtures/vue3_strictTemplate/#4699/main.vue
new file mode 100644
index 0000000000..724454b611
--- /dev/null
+++ b/test-workspace/tsc/passedFixtures/vue3_strictTemplate/#4699/main.vue
@@ -0,0 +1,9 @@
+<script setup lang="ts">
+import HelloWorld from './HelloWorld.vue'
+</script>
+
+<template>
+	<HelloWorld msg="You did it!" id="4" />
+	<HelloWorld msg="You did it!" title="my html title" />
+	<HelloWorld msg="You did it!" aria-label="label" />
+</template>