diff --git a/code/renderers/vue/src/docs/sourceDecorator.ts b/code/renderers/vue/src/docs/sourceDecorator.ts
index 24c4fe3c4ddb..becc96802860 100644
--- a/code/renderers/vue/src/docs/sourceDecorator.ts
+++ b/code/renderers/vue/src/docs/sourceDecorator.ts
@@ -4,7 +4,7 @@
 import { addons } from '@storybook/preview-api';
 import { logger } from '@storybook/client-logger';
 import { SourceType, SNIPPET_RENDERED } from '@storybook/docs-tools';
-import type { ComponentOptions } from 'vue';
+import { type ComponentOptions } from 'vue';
 import type Vue from 'vue';
 import type { StoryContext } from '../types';
 
@@ -24,46 +24,47 @@ export const skipSourceRender = (context: StoryContext) => {
 
 export const sourceDecorator = (storyFn: any, context: StoryContext) => {
   const story = storyFn();
+  const source = '';
 
   // See ../react/jsxDecorator.tsx
-  if (skipSourceRender(context)) {
+  const skip = skipSourceRender(context);
+  if (skip) {
     return story;
   }
 
   const channel = addons.getChannel();
 
   const storyComponent = getStoryComponent(story.options.STORYBOOK_WRAPS);
+  const generateSource = (vueInstance: any) => {
+    try {
+      // console.log('updateSource():', vueInstance.$vnode);
+      const storyNode = lookupStoryInstance(vueInstance, storyComponent);
+      if (!storyNode) {
+        logger.warn(`Failed to find story component in the rendered tree: ${storyComponent}`);
+        return;
+      }
+      // eslint-disable-next-line no-param-reassign
+      vueInstance.source = vnodeToString(storyNode._vnode);
+    } catch (e) {
+      logger.warn(`Failed to generate dynamic story source: ${e}`);
+    }
+  };
 
   return {
     components: {
       Story: story,
     },
-    // We need to wait until the wrapper component to be mounted so Vue runtime
-    // struct VNode tree. We get `this._vnode == null` if switch to `created`
-    // lifecycle hook.
+    data() {
+      return { source };
+    },
+    updated() {
+      generateSource(this);
+    },
     mounted() {
-      // Theoretically this does not happens but we need to check it.
-      // @ts-expect-error TS says it is called $vnode
-      if (!this._vnode) {
-        return;
-      }
-
-      try {
-        const storyNode = lookupStoryInstance(this, storyComponent);
-
-        // @ts-expect-error TS says it is called $vnode
-        const code = vnodeToString(storyNode._vnode);
-
-        const { id, unmappedArgs } = context;
-        channel.emit(SNIPPET_RENDERED, {
-          id,
-          args: unmappedArgs,
-          source: `<template>${code}</template>`,
-          format: 'vue',
-        });
-      } catch (e) {
-        logger.warn(`Failed to generate dynamic story source: ${e}`);
-      }
+      this.$watch('source', (val) =>
+        channel.emit(SNIPPET_RENDERED, context.id, `<template>${val}</template>`, 'vue')
+      );
+      generateSource(this);
     },
     template: '<story />',
   } as ComponentOptions<Vue> & ThisType<Vue>;