diff --git a/lib/component-normalizer.js b/lib/component-normalizer.js
index ab3b6a9d6..e6b13fc04 100644
--- a/lib/component-normalizer.js
+++ b/lib/component-normalizer.js
@@ -84,6 +84,9 @@ module.exports = function normalizeComponent (
         ? [].concat(existing, hook)
         : [hook]
     } else {
+      // for template-only hot-reload because in that case the render fn doesn't
+      // go through the normalizer
+      options._injectStyles = hook
       // register for functioal component in vue file
       options.render = function renderWithStyleInjection (h, context) {
         hook.call(context)
diff --git a/lib/loader.js b/lib/loader.js
index 2cca97f06..a39155a47 100644
--- a/lib/loader.js
+++ b/lib/loader.js
@@ -386,17 +386,13 @@ module.exports = function (content) {
       output +=
         '\n/* hot reload */\n' +
         'if (module.hot) {(function () {\n' +
-        '  var hotAPI = require("' +
-        hotReloadAPIPath +
-        '")\n' +
+        '  var hotAPI = require("' + hotReloadAPIPath + '")\n' +
         '  hotAPI.install(require("vue"), false)\n' +
         '  if (!hotAPI.compatible) return\n' +
         '  module.hot.accept()\n' +
         '  if (!module.hot.data) {\n' +
         // initial insert
-        '    hotAPI.createRecord("' +
-        moduleId +
-        '", Component.options)\n' +
+        '    hotAPI.createRecord("' + moduleId + '", Component.options)\n' +
         '  } else {\n'
       // update
       if (cssModules) {
@@ -406,7 +402,9 @@ module.exports = function (content) {
           '    }\n'
       }
       output +=
-        '    hotAPI.reload("' + moduleId + '", Component.options)\n' + '  }\n'
+        `    hotAPI.${
+          functionalTemplate ? 'rerender' : 'reload'
+        }("${moduleId}", Component.options)\n' + '  }\n`
       // dispose
       output +=
         '  module.hot.dispose(function (data) {\n' +
diff --git a/package.json b/package.json
index c6eef3b7f..d398c124a 100644
--- a/package.json
+++ b/package.json
@@ -51,7 +51,7 @@
     "prettier": "^1.7.0",
     "resolve": "^1.4.0",
     "source-map": "^0.6.1",
-    "vue-hot-reload-api": "^2.1.0",
+    "vue-hot-reload-api": "^2.2.0",
     "vue-style-loader": "^3.0.0",
     "vue-template-es2015-compiler": "^1.6.0"
   },