diff --git a/jest.config.js b/jest.config.js
index dff0697d7..1036103e6 100644
--- a/jest.config.js
+++ b/jest.config.js
@@ -1,12 +1,13 @@
 module.exports = {
   preset: 'ts-jest',
   globals: {
-    __USE_BUILD__: process.argv.indexOf('-use-build') >= 0
+    __USE_BUILD__: process.argv.indexOf('-use-build') >= 0,
+    __BROWSER__: true
   },
   testEnvironment: 'jsdom',
   transform: {
-    "^.+\\.vue$": "vue-jest",
-    "^.+\\js$": "babel-jest"
+    '^.+\\.vue$': 'vue-jest',
+    '^.+\\js$': 'babel-jest'
   },
   moduleFileExtensions: ['vue', 'js', 'json', 'jsx', 'ts', 'tsx', 'node'],
   setupFiles: ['./setup.js']
diff --git a/rollup.config.js b/rollup.config.js
index a752e62fe..22d503798 100644
--- a/rollup.config.js
+++ b/rollup.config.js
@@ -15,11 +15,7 @@ const banner = `
 `
 
 function createEntry(options) {
-  const {
-    format,
-    input,
-    isBrowser
-  } = options
+  const { format, input, isBrowser } = options
 
   const isEsmBrowser = format === 'es' && isBrowser
 
@@ -27,16 +23,21 @@ function createEntry(options) {
     input,
     external: [
       'vue',
-      isEsmBrowser ? '@vue/compiler-dom/dist/compiler-dom.esm-browser'  : '@vue/compiler-dom',
+      isEsmBrowser
+        ? '@vue/compiler-dom/dist/compiler-dom.esm-browser'
+        : '@vue/compiler-dom'
     ],
     plugins: [
       replace({
         values: {
-          "process.env.NODE_ENV": "true"
+          'process.env.NODE_ENV': 'true',
+          __BROWSER__: isEsmBrowser
         },
         preventAssignment: true
       }),
-      resolve(), commonjs(), json()
+      resolve(),
+      commonjs(),
+      json()
     ],
     output: {
       banner,
@@ -45,7 +46,7 @@ function createEntry(options) {
       format,
       globals: {
         vue: 'Vue',
-        '@vue/compiler-dom': 'VueCompilerDOM',
+        '@vue/compiler-dom': 'VueCompilerDOM'
       }
     }
   }
@@ -82,5 +83,5 @@ export default [
   createEntry({ format: 'es', input: 'src/index.ts', isBrowser: false }),
   createEntry({ format: 'es', input: 'src/index.ts', isBrowser: true }),
   createEntry({ format: 'iife', input: 'src/index.ts', isBrowser: true }),
-  createEntry({ format: 'cjs', input: 'src/index.ts', isBrowser: false }),
+  createEntry({ format: 'cjs', input: 'src/index.ts', isBrowser: false })
 ]
diff --git a/src/utils/compileSlots.ts b/src/utils/compileSlots.ts
index 35fc6d7fc..c965ae077 100644
--- a/src/utils/compileSlots.ts
+++ b/src/utils/compileSlots.ts
@@ -15,10 +15,13 @@ export function processSlot(source = '', Vue = vue) {
     `<SlotWrapper v-bind="$attrs">${template}</SlotWrapper>`,
     {
       mode: 'function',
-      prefixIdentifiers: true
+      prefixIdentifiers: __BROWSER__
     }
   )
-  const createRenderFunction = new Function('Vue', `'use strict';\n${code}`)
+  const createRenderFunction = new Function(
+    'Vue',
+    __BROWSER__ ? `'use strict';\n${code}` : code
+  )
 
   return {
     inheritAttrs: false,
diff --git a/test-dts/index.d.ts b/test-dts/index.d.ts
index ee0e8dec5..98d474d98 100644
--- a/test-dts/index.d.ts
+++ b/test-dts/index.d.ts
@@ -4,14 +4,16 @@
 // it's intended. We cannot use directives like @ts-ignore or @ts-nocheck since
 // that would suppress the errors that should be caught.
 
+import '../types/global'
+
 export function describe(_name: string, _fn: () => void): void
 
 export function expectType<T>(value: T): void
 export function expectError<T>(value: T): void
 export function expectAssignable<T, T2 extends T = T>(value: T2): void
 
-export type IsUnion<T, U extends T = T> = (T extends any
-  ? (U extends T ? false : true)
-  : never) extends false
+export type IsUnion<T, U extends T = T> = (
+  T extends any ? (U extends T ? false : true) : never
+) extends false
   ? false
   : true
diff --git a/types/global.d.ts b/types/global.d.ts
new file mode 100644
index 000000000..08c128f6c
--- /dev/null
+++ b/types/global.d.ts
@@ -0,0 +1 @@
+declare var __BROWSER__: boolean