diff --git a/packages/runtime-core/src/component.ts b/packages/runtime-core/src/component.ts
index 556d158a244..e30f87890d0 100644
--- a/packages/runtime-core/src/component.ts
+++ b/packages/runtime-core/src/component.ts
@@ -939,6 +939,7 @@ export function handleSetupResult(
       instance.devtoolsRawSetupState = setupResult
     }
     instance.setupState = proxyRefs(setupResult)
+    instance.setupState.__v__setupResult = setupResult
     if (__DEV__) {
       exposeSetupStateOnRenderContext(instance)
     }
diff --git a/packages/runtime-core/src/helpers/useTemplateRef.ts b/packages/runtime-core/src/helpers/useTemplateRef.ts
index 58c109a9246..b15d52e6fd5 100644
--- a/packages/runtime-core/src/helpers/useTemplateRef.ts
+++ b/packages/runtime-core/src/helpers/useTemplateRef.ts
@@ -8,6 +8,8 @@ export function useTemplateRef<T = unknown, Keys extends string = string>(
 ): Readonly<ShallowRef<T | null>> {
   const i = getCurrentInstance()
   const r = shallowRef(null)
+  // @ts-expect-error
+  r.__v__TemplateRef = true
   if (i) {
     const refs = i.refs === EMPTY_OBJ ? (i.refs = {}) : i.refs
 
diff --git a/packages/runtime-core/src/rendererTemplateRef.ts b/packages/runtime-core/src/rendererTemplateRef.ts
index 647ce1fb42f..d50d37a2fd2 100644
--- a/packages/runtime-core/src/rendererTemplateRef.ts
+++ b/packages/runtime-core/src/rendererTemplateRef.ts
@@ -96,7 +96,16 @@ export function setRef(
               if (_isString) {
                 refs[ref] = [refValue]
                 if (hasOwn(setupState, ref)) {
-                  setupState[ref] = refs[ref]
+                  if (
+                    // @ts-expect-error
+                    setupState.__v__setupResult[ref] &&
+                    // @ts-expect-error
+                    setupState.__v__setupResult[ref].__v__TemplateRef
+                  ) {
+                    // cannot update TemplateRef
+                  } else {
+                    setupState[ref] = value
+                  }
                 }
               } else {
                 ref.value = [refValue]
@@ -109,7 +118,16 @@ export function setRef(
         } else if (_isString) {
           refs[ref] = value
           if (hasOwn(setupState, ref)) {
-            setupState[ref] = value
+            if (
+              // @ts-expect-error
+              setupState.__v__setupResult[ref] &&
+              // @ts-expect-error
+              setupState.__v__setupResult[ref].__v__TemplateRef
+            ) {
+              // cannot update TemplateRef
+            } else {
+              setupState[ref] = value
+            }
           }
         } else if (_isRef) {
           ref.value = value