diff --git a/packages/@vue/cli-plugin-babel/package.json b/packages/@vue/cli-plugin-babel/package.json
index 927bc7f860..2575b8cd56 100644
--- a/packages/@vue/cli-plugin-babel/package.json
+++ b/packages/@vue/cli-plugin-babel/package.json
@@ -32,7 +32,7 @@
     "@vue/cli-service": "^3.0.0 || ^4.0.0-0"
   },
   "devDependencies": {
-    "jscodeshift": "^0.9.0"
+    "jscodeshift": "^0.10.0"
   },
   "publishConfig": {
     "access": "public"
diff --git a/packages/@vue/cli-plugin-typescript/codemods/__testfixtures__/shims-vue.input.ts b/packages/@vue/cli-plugin-typescript/codemods/__testfixtures__/shims-vue.input.ts
new file mode 100644
index 0000000000..798e8fcfac
--- /dev/null
+++ b/packages/@vue/cli-plugin-typescript/codemods/__testfixtures__/shims-vue.input.ts
@@ -0,0 +1,5 @@
+declare module '*.vue' {
+  import { defineComponent } from 'vue';
+  const component: ReturnType<typeof defineComponent>;
+  export default component;
+}
diff --git a/packages/@vue/cli-plugin-typescript/codemods/__testfixtures__/shims-vue.output.ts b/packages/@vue/cli-plugin-typescript/codemods/__testfixtures__/shims-vue.output.ts
new file mode 100644
index 0000000000..40f3f4bdf7
--- /dev/null
+++ b/packages/@vue/cli-plugin-typescript/codemods/__testfixtures__/shims-vue.output.ts
@@ -0,0 +1,5 @@
+declare module '*.vue' {
+  import { DefineComponent } from 'vue';
+  const component: DefineComponent;
+  export default component;
+}
diff --git a/packages/@vue/cli-plugin-typescript/codemods/__tests__/migrateComponentType.spec.js b/packages/@vue/cli-plugin-typescript/codemods/__tests__/migrateComponentType.spec.js
new file mode 100644
index 0000000000..ebf0a9297b
--- /dev/null
+++ b/packages/@vue/cli-plugin-typescript/codemods/__tests__/migrateComponentType.spec.js
@@ -0,0 +1,5 @@
+jest.autoMockOff()
+
+const { defineTest } = require('jscodeshift/dist/testUtils')
+
+defineTest(__dirname, 'migrateComponentType', null, 'shims-vue', { parser: 'ts' })
diff --git a/packages/@vue/cli-plugin-typescript/codemods/migrateComponentType.js b/packages/@vue/cli-plugin-typescript/codemods/migrateComponentType.js
new file mode 100644
index 0000000000..7f892b2de1
--- /dev/null
+++ b/packages/@vue/cli-plugin-typescript/codemods/migrateComponentType.js
@@ -0,0 +1,93 @@
+// `shims-vue.d.ts` for Vue 3, generated by CLI 4.5.0-4.5.6, uses the following declaration:
+// `component: ReturnType<typeof defineComponent>`
+
+// So needs to update to:
+// `component: DefineComponent`
+
+module.exports = function migrateComponentType (file, api) {
+  const j = api.jscodeshift
+  const root = j(file.source)
+
+  const useDoubleQuote = root.find(j.StringLiteral).some(({ node }) => node.extra.raw.startsWith('"'))
+
+  const tsmodule = root.find(j.TSModuleDeclaration, {
+    id: {
+      value: '*.vue'
+    }
+  })
+
+  const componentDecl = tsmodule.find(j.VariableDeclarator, {
+    id: {
+      name: 'component',
+      typeAnnotation: {
+        typeAnnotation: {
+          typeName: {
+            name: 'ReturnType'
+          },
+          typeParameters: {
+            params: {
+              0: {
+                exprName: {
+                  name: 'defineComponent'
+                }
+              }
+            }
+          }
+        }
+      }
+    }
+  })
+
+  if (componentDecl.length !== 1) {
+    return file.source
+  }
+
+  // update the component type
+  componentDecl.forEach(({ node }) => {
+    node.id.typeAnnotation = j.tsTypeAnnotation(
+      j.tsTypeReference(j.identifier('DefineComponent'))
+    )
+  })
+
+  // insert DefineComponent type import
+  const importDeclFromVue = tsmodule.find(j.ImportDeclaration, {
+    source: {
+      value: 'vue'
+    }
+  })
+  importDeclFromVue
+    .get(0)
+    .node.specifiers.push(j.importSpecifier(j.identifier('DefineComponent')))
+
+  // remove defineComponent import if unused
+  const defineComponentUsages = tsmodule
+    .find(j.Identifier, { name: 'defineComponent' })
+    .filter((identifierPath) => {
+      const parent = identifierPath.parent.node
+
+      // Ignore the import specifier
+      if (
+        j.ImportDefaultSpecifier.check(parent) ||
+        j.ImportSpecifier.check(parent) ||
+        j.ImportNamespaceSpecifier.check(parent)
+      ) {
+        return false
+      }
+    })
+  if (defineComponentUsages.length === 0) {
+    tsmodule
+      .find(j.ImportSpecifier, {
+        local: {
+          name: 'defineComponent'
+        }
+      })
+      .remove()
+  }
+
+  return root.toSource({
+    lineTerminator: '\n',
+    quote: useDoubleQuote ? 'double' : 'single'
+  })
+}
+
+module.exports.parser = 'ts'
diff --git a/packages/@vue/cli-plugin-typescript/generator/template-vue3/src/shims-vue.d.ts b/packages/@vue/cli-plugin-typescript/generator/template-vue3/src/shims-vue.d.ts
index 32a1b5cd40..a99cf76cc7 100644
--- a/packages/@vue/cli-plugin-typescript/generator/template-vue3/src/shims-vue.d.ts
+++ b/packages/@vue/cli-plugin-typescript/generator/template-vue3/src/shims-vue.d.ts
@@ -1,5 +1,5 @@
 declare module '*.vue' {
-  import { defineComponent } from 'vue'
-  const component: ReturnType<typeof defineComponent>
+  import type { DefineComponent } from 'vue'
+  const component: DefineComponent
   export default component
 }
diff --git a/packages/@vue/cli-plugin-typescript/migrator/index.js b/packages/@vue/cli-plugin-typescript/migrator/index.js
index a28ea4d578..bfe935eabd 100644
--- a/packages/@vue/cli-plugin-typescript/migrator/index.js
+++ b/packages/@vue/cli-plugin-typescript/migrator/index.js
@@ -1,4 +1,4 @@
-module.exports = api => {
+module.exports = (api, options, rootOptions) => {
   api.extendPackage(
     {
       devDependencies: {
@@ -7,4 +7,9 @@ module.exports = api => {
     },
     { warnIncompatibleVersions: false }
   )
+
+  // update vue 3 typescript shim
+  if (rootOptions.vueVersion === 3) {
+    api.transformScript('src/shims-vue.d.ts', require('../codemods/migrateComponentType'))
+  }
 }
diff --git a/packages/@vue/cli-plugin-typescript/package.json b/packages/@vue/cli-plugin-typescript/package.json
index 4552efec77..07ebe6808a 100644
--- a/packages/@vue/cli-plugin-typescript/package.json
+++ b/packages/@vue/cli-plugin-typescript/package.json
@@ -51,6 +51,7 @@
     "@types/chai": "^4.2.11",
     "@types/jest": "^24.0.19",
     "@types/mocha": "^5.2.6",
+    "jscodeshift": "^0.10.0",
     "typescript": "~3.9.3",
     "vue-class-component": "^7.2.3",
     "vue-property-decorator": "^8.4.2"
diff --git a/packages/@vue/cli-service/__tests__/generator.spec.js b/packages/@vue/cli-service/__tests__/generator.spec.js
index 75b4073b4f..3565cba1c1 100644
--- a/packages/@vue/cli-service/__tests__/generator.spec.js
+++ b/packages/@vue/cli-service/__tests__/generator.spec.js
@@ -42,7 +42,7 @@ test('Vue 3', async () => {
     vueVersion: '3'
   })
 
-  expect(pkg.dependencies.vue).toBe('^3.0.0-0')
+  expect(pkg.dependencies.vue).toBe('^3.0.0')
   expect(pkg).toHaveProperty(['devDependencies', '@vue/compiler-sfc'])
 
   expect(files['src/main.js']).toMatch(`import { createApp } from 'vue'`)
diff --git a/packages/@vue/cli-service/generator/index.js b/packages/@vue/cli-service/generator/index.js
index 2b56d228d7..d96a829928 100644
--- a/packages/@vue/cli-service/generator/index.js
+++ b/packages/@vue/cli-service/generator/index.js
@@ -6,10 +6,10 @@ module.exports = (api, options) => {
   if (options.vueVersion === '3') {
     api.extendPackage({
       dependencies: {
-        'vue': '^3.0.0-0'
+        'vue': '^3.0.0'
       },
       devDependencies: {
-        '@vue/compiler-sfc': '^3.0.0-0'
+        '@vue/compiler-sfc': '^3.0.0'
       }
     })
   } else {
diff --git a/yarn.lock b/yarn.lock
index fbe4c9e0a8..72b1ee78ae 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -12518,31 +12518,6 @@ jscodeshift@^0.10.0:
     temp "^0.8.1"
     write-file-atomic "^2.3.0"
 
-jscodeshift@^0.9.0:
-  version "0.9.0"
-  resolved "https://registry.yarnpkg.com/jscodeshift/-/jscodeshift-0.9.0.tgz#672025658e868a63e24d6a6f4c44af9edb6e55f3"
-  integrity sha512-SUeXq8dJzj5LR8uy71axgG3bmiHoC0IdHy7n89SqKzkzBWpAds5F9IIGE+lqUSZX9J0ZfEzN8fXWIqQV0dIp2w==
-  dependencies:
-    "@babel/core" "^7.1.6"
-    "@babel/parser" "^7.1.6"
-    "@babel/plugin-proposal-class-properties" "^7.1.0"
-    "@babel/plugin-proposal-nullish-coalescing-operator" "^7.1.0"
-    "@babel/plugin-proposal-optional-chaining" "^7.1.0"
-    "@babel/plugin-transform-modules-commonjs" "^7.1.0"
-    "@babel/preset-flow" "^7.0.0"
-    "@babel/preset-typescript" "^7.1.0"
-    "@babel/register" "^7.0.0"
-    babel-core "^7.0.0-bridge.0"
-    colors "^1.1.2"
-    flow-parser "0.*"
-    graceful-fs "^4.1.11"
-    micromatch "^3.1.10"
-    neo-async "^2.5.0"
-    node-dir "^0.1.17"
-    recast "^0.18.1"
-    temp "^0.8.1"
-    write-file-atomic "^2.3.0"
-
 jsdom-global@^3.0.2:
   version "3.0.2"
   resolved "https://registry.yarnpkg.com/jsdom-global/-/jsdom-global-3.0.2.tgz#6bd299c13b0c4626b2da2c0393cd4385d606acb9"