diff --git a/packages/language-core/lib/codegen/template/interpolation.ts b/packages/language-core/lib/codegen/template/interpolation.ts
index 7367549734..3e2760f576 100644
--- a/packages/language-core/lib/codegen/template/interpolation.ts
+++ b/packages/language-core/lib/codegen/template/interpolation.ts
@@ -177,25 +177,7 @@ function walkIdentifiers(
 		}
 	}
 	else if (ts.isArrowFunction(node) || ts.isFunctionExpression(node)) {
-
-		const functionArgs: string[] = [];
-
-		for (const param of node.parameters) {
-			collectVars(ts, param.name, ast, functionArgs);
-			if (param.type) {
-				walkIdentifiers(ts, param.type, ast, cb, ctx, blockVars, false);
-			}
-		}
-
-		for (const varName of functionArgs) {
-			ctx.addLocalVariable(varName);
-		}
-
-		walkIdentifiers(ts, node.body, ast, cb, ctx, blockVars, false);
-
-		for (const varName of functionArgs) {
-			ctx.removeLocalVariable(varName);
-		}
+		processFunction(ts, node, ast, cb, ctx);
 	}
 	else if (ts.isObjectLiteralExpression(node)) {
 		for (const prop of node.properties) {
@@ -215,6 +197,10 @@ function walkIdentifiers(
 				// TODO: cannot report "Spread types may only be created from object types.ts(2698)"
 				walkIdentifiers(ts, prop.expression, ast, cb, ctx, blockVars, false);
 			}
+			// fix https://github.com/vuejs/language-tools/issues/4604
+			else if (ts.isFunctionLike(prop) && prop.body) {
+				processFunction(ts, prop, ast, cb, ctx);
+			}
 		}
 	}
 	else if (ts.isTypeReferenceNode(node)) {
@@ -242,6 +228,31 @@ function walkIdentifiers(
 	}
 }
 
+function processFunction(
+	ts: typeof import('typescript'),
+	node: ts.ArrowFunction | ts.FunctionExpression | ts.AccessorDeclaration | ts.MethodDeclaration,
+	ast: ts.SourceFile,
+	cb: (varNode: ts.Identifier, isShorthand: boolean) => void,
+	ctx: TemplateCodegenContext
+) {
+	const functionArgs: string[] = [];
+	for (const param of node.parameters) {
+		collectVars(ts, param.name, ast, functionArgs);
+		if (param.type) {
+			walkIdentifiers(ts, param.type, ast, cb, ctx);
+		}
+	}
+	for (const varName of functionArgs) {
+		ctx.addLocalVariable(varName);
+	}
+	if (node.body) {
+		walkIdentifiers(ts, node.body, ast, cb, ctx);
+	}
+	for (const varName of functionArgs) {
+		ctx.removeLocalVariable(varName);
+	}
+}
+
 function walkIdentifiersInTypeReference(
 	ts: typeof import('typescript'),
 	node: ts.Node,
diff --git a/test-workspace/tsc/vue3/#4604/main.vue b/test-workspace/tsc/vue3/#4604/main.vue
new file mode 100644
index 0000000000..ca7cb40861
--- /dev/null
+++ b/test-workspace/tsc/vue3/#4604/main.vue
@@ -0,0 +1,14 @@
+<template>
+	<div v-bind="{
+		onClick() {
+			exactType(msg, {} as string);
+		}
+	}"></div>
+</template>
+
+<script setup lang="ts">
+import { exactType } from 'tsc/shared';
+import { ref } from 'vue';
+
+const msg = ref('Hello Vue 3 + TypeScript + Vite');
+</script>