diff --git a/e2e/__projects__/basic/components/FunctionalRenderFn.vue b/e2e/__projects__/basic/components/FunctionalRenderFn.vue
new file mode 100644
index 00000000..eccb3f2e
--- /dev/null
+++ b/e2e/__projects__/basic/components/FunctionalRenderFn.vue
@@ -0,0 +1,12 @@
+<script>
+import { h } from 'vue'
+
+export default () =>
+  h(
+    'div',
+    {
+      id: 'functional-render-fn'
+    },
+    'Nyan'
+  )
+</script>
diff --git a/e2e/__projects__/basic/test.js b/e2e/__projects__/basic/test.js
index 15f8acf4..8ea3b7d3 100644
--- a/e2e/__projects__/basic/test.js
+++ b/e2e/__projects__/basic/test.js
@@ -20,6 +20,7 @@ import NoScript from './components/NoScript.vue'
 import PugRelative from './components/PugRelativeExtends.vue'
 import { randomExport } from './components/NamedExport.vue'
 import ScriptSetup from './components/ScriptSetup.vue'
+import FunctionalRenderFn from './components/FunctionalRenderFn.vue'
 
 // TODO: JSX for Vue 3? TSX?
 import Jsx from './components/Jsx.vue'
@@ -179,3 +180,11 @@ xtest('processes .vue file using jsx', () => {
   mount(Jsx)
   expect(document.querySelector('#jsx')).toBeTruthy()
 })
+
+test('processes functional component exported as function', () => {
+  mount(FunctionalRenderFn)
+
+  const elem = document.querySelector('#functional-render-fn')
+  expect(elem).toBeTruthy()
+  expect(elem.innerHTML).toBe('Nyan')
+})
diff --git a/lib/generate-code.js b/lib/generate-code.js
index 8ec4443a..9e0b9ca1 100644
--- a/lib/generate-code.js
+++ b/lib/generate-code.js
@@ -44,7 +44,7 @@ module.exports = function generateCode(
   if (tempOutput.includes('exports.render = render;')) {
     node.add(';exports.default = {...exports.default, render};')
   } else {
-    node.add(';exports.default = {...exports.default};')
+    // node.add(';exports.default = {...exports.default};')
   }
 
   return node.toStringWithSourceMap({ file: filename })