diff --git a/packages/create-vite/template-vue-ts/README.md b/packages/create-vite/template-vue-ts/README.md
index a797a275d079ba..beaefd60fda3f2 100644
--- a/packages/create-vite/template-vue-ts/README.md
+++ b/packages/create-vite/template-vue-ts/README.md
@@ -4,24 +4,8 @@ This template should help get you started developing with Vue 3 and Typescript i
 
 ## Recommended IDE Setup
 
-[VSCode](https://code.visualstudio.com/) + [Vetur](https://marketplace.visualstudio.com/items?itemName=octref.vetur). Make sure to enable `vetur.experimental.templateInterpolationService` in settings!
-
-### If Using `<script setup>`
-
-[`<script setup>`](https://github.com/vuejs/rfcs/pull/227) is a feature that is currently in RFC stage. To get proper IDE support for the syntax, use [Volar](https://marketplace.visualstudio.com/items?itemName=johnsoncodehk.volar) instead of Vetur (and disable Vetur).
+- [VSCode](https://code.visualstudio.com/) + [Volar](https://marketplace.visualstudio.com/items?itemName=johnsoncodehk.volar)
 
 ## Type Support For `.vue` Imports in TS
 
-Since TypeScript cannot handle type information for `.vue` imports, they are shimmed to be a generic Vue component type by default. In most cases this is fine if you don't really care about component prop types outside of templates. However, if you wish to get actual prop types in `.vue` imports (for example to get props validation when using manual `h(...)` calls), you can use the following:
-
-### If Using Volar
-
-Run `Volar: Switch TS Plugin on/off` from VSCode command palette.
-
-### If Using Vetur
-
-1. Install and add `@vuedx/typescript-plugin-vue` to the [plugins section](https://www.typescriptlang.org/tsconfig#plugins) in `tsconfig.json`
-2. Delete `src/shims-vue.d.ts` as it is no longer needed to provide module info to Typescript
-3. Open `src/main.ts` in VSCode
-4. Open the VSCode command palette
-5. Search and run "Select TypeScript version" -> "Use workspace version"
+Since TypeScript cannot handle type information for `.vue` imports, they are shimmed to be a generic Vue component type by default. In most cases this is fine if you don't really care about component prop types outside of templates. However, if you wish to get actual prop types in `.vue` imports (for example to get props validation when using manual `h(...)` calls), you can enable Volar's `.vue` type support plugin by running `Volar: Switch TS Plugin on/off` from VSCode command palette.
diff --git a/packages/create-vite/template-vue-ts/package.json b/packages/create-vite/template-vue-ts/package.json
index f3a917e55b80f3..bce4413d271549 100644
--- a/packages/create-vite/template-vue-ts/package.json
+++ b/packages/create-vite/template-vue-ts/package.json
@@ -10,10 +10,10 @@
     "vue": "^3.2.6"
   },
   "devDependencies": {
-    "@vitejs/plugin-vue": "^1.3.0",
+    "@vitejs/plugin-vue": "^1.6.0",
     "@vue/compiler-sfc": "^3.0.5",
     "typescript": "^4.3.2",
-    "vite": "^2.4.4",
+    "vite": "^2.5.1",
     "vue-tsc": "^0.2.2"
   }
 }
diff --git a/packages/create-vite/template-vue-ts/src/App.vue b/packages/create-vite/template-vue-ts/src/App.vue
index 72cc3b82039dd2..df4e2d7644e293 100644
--- a/packages/create-vite/template-vue-ts/src/App.vue
+++ b/packages/create-vite/template-vue-ts/src/App.vue
@@ -1,20 +1,14 @@
+<script setup lang="ts">
+// This starter template is using Vue 3 <script setup> SFCs
+// Check out https://v3.vuejs.org/api/sfc-script-setup.html#sfc-script-setup
+import HelloWorld from './components/HelloWorld.vue'
+</script>
+
 <template>
   <img alt="Vue logo" src="./assets/logo.png" />
   <HelloWorld msg="Hello Vue 3 + TypeScript + Vite" />
 </template>
 
-<script lang="ts">
-import { defineComponent } from 'vue'
-import HelloWorld from './components/HelloWorld.vue'
-
-export default defineComponent({
-  name: 'App',
-  components: {
-    HelloWorld
-  }
-})
-</script>
-
 <style>
 #app {
   font-family: Avenir, Helvetica, Arial, sans-serif;
diff --git a/packages/create-vite/template-vue-ts/src/components/HelloWorld.vue b/packages/create-vite/template-vue-ts/src/components/HelloWorld.vue
index 8e73cc6d4aa2b8..2d61249ac32f9c 100644
--- a/packages/create-vite/template-vue-ts/src/components/HelloWorld.vue
+++ b/packages/create-vite/template-vue-ts/src/components/HelloWorld.vue
@@ -1,3 +1,11 @@
+<script setup lang="ts">
+import { ref } from 'vue'
+
+defineProps<{ msg: string }>()
+
+const count = ref(0)
+</script>
+
 <template>
   <h1>{{ msg }}</h1>
 
@@ -5,16 +13,7 @@
     Recommended IDE setup:
     <a href="https://code.visualstudio.com/" target="_blank">VSCode</a>
     +
-    <a
-      href="https://marketplace.visualstudio.com/items?itemName=octref.vetur"
-      target="_blank"
-    >
-      Vetur
-    </a>
-    or
     <a href="/johnsoncodehk/volar" target="_blank">Volar</a>
-    (if using
-    <code>&lt;script setup&gt;</code>)
   </p>
 
   <p>See <code>README.md</code> for more information.</p>
@@ -34,23 +33,6 @@
   </p>
 </template>
 
-<script lang="ts">
-import { ref, defineComponent } from 'vue'
-export default defineComponent({
-  name: 'HelloWorld',
-  props: {
-    msg: {
-      type: String,
-      required: true
-    }
-  },
-  setup: () => {
-    const count = ref(0)
-    return { count }
-  }
-})
-</script>
-
 <style scoped>
 a {
   color: #42b983;
diff --git a/packages/create-vite/template-vue-ts/src/shims-vue.d.ts b/packages/create-vite/template-vue-ts/src/env.d.ts
similarity index 85%
rename from packages/create-vite/template-vue-ts/src/shims-vue.d.ts
rename to packages/create-vite/template-vue-ts/src/env.d.ts
index c458ab5a39cbeb..d27eb5a311f66a 100644
--- a/packages/create-vite/template-vue-ts/src/shims-vue.d.ts
+++ b/packages/create-vite/template-vue-ts/src/env.d.ts
@@ -1,3 +1,5 @@
+/// <reference types="vite/client" />
+
 declare module '*.vue' {
   import { DefineComponent } from 'vue'
   // eslint-disable-next-line @typescript-eslint/no-explicit-any, @typescript-eslint/ban-types
diff --git a/packages/create-vite/template-vue-ts/src/vite-env.d.ts b/packages/create-vite/template-vue-ts/src/vite-env.d.ts
deleted file mode 100644
index 11f02fe2a0061d..00000000000000
--- a/packages/create-vite/template-vue-ts/src/vite-env.d.ts
+++ /dev/null
@@ -1 +0,0 @@
-/// <reference types="vite/client" />
diff --git a/packages/create-vite/template-vue/package.json b/packages/create-vite/template-vue/package.json
index 3ceeae7b6990bf..70af8fd839f203 100644
--- a/packages/create-vite/template-vue/package.json
+++ b/packages/create-vite/template-vue/package.json
@@ -10,8 +10,8 @@
     "vue": "^3.2.6"
   },
   "devDependencies": {
-    "@vitejs/plugin-vue": "^1.3.0",
+    "@vitejs/plugin-vue": "^1.6.0",
     "@vue/compiler-sfc": "^3.0.5",
-    "vite": "^2.4.4"
+    "vite": "^2.5.1"
   }
 }
diff --git a/packages/create-vite/template-vue/src/App.vue b/packages/create-vite/template-vue/src/App.vue
index a058d171649adb..742233037df99e 100644
--- a/packages/create-vite/template-vue/src/App.vue
+++ b/packages/create-vite/template-vue/src/App.vue
@@ -1,15 +1,14 @@
+<script setup>
+// This starter template is using Vue 3 <script setup> SFCs
+// Check out https://v3.vuejs.org/api/sfc-script-setup.html#sfc-script-setup
+import HelloWorld from './components/HelloWorld.vue'
+</script>
+
 <template>
   <img alt="Vue logo" src="./assets/logo.png" />
   <HelloWorld msg="Hello Vue 3 + Vite" />
 </template>
 
-<script setup>
-import HelloWorld from './components/HelloWorld.vue'
-
-// This starter template is using Vue 3 experimental <script setup> SFCs
-// Check out https://github.com/vuejs/rfcs/blob/master/active-rfcs/0040-script-setup.md
-</script>
-
 <style>
 #app {
   font-family: Avenir, Helvetica, Arial, sans-serif;
diff --git a/packages/create-vite/template-vue/src/components/HelloWorld.vue b/packages/create-vite/template-vue/src/components/HelloWorld.vue
index ca20b01ac93cfd..48a5ca9095156b 100644
--- a/packages/create-vite/template-vue/src/components/HelloWorld.vue
+++ b/packages/create-vite/template-vue/src/components/HelloWorld.vue
@@ -1,6 +1,23 @@
+<script setup>
+import { ref } from 'vue'
+
+defineProps({
+  msg: String
+})
+
+const count = ref(0)
+</script>
+
 <template>
   <h1>{{ msg }}</h1>
 
+  <p>
+    Recommended IDE setup:
+    <a href="https://code.visualstudio.com/" target="_blank">VSCode</a>
+    +
+    <a href="/johnsoncodehk/volar" target="_blank">Volar</a>
+  </p>
+
   <p>
     <a href="https://vitejs.dev/guide/features.html" target="_blank">
       Vite Documentation
@@ -9,25 +26,13 @@
     <a href="https://v3.vuejs.org/" target="_blank">Vue 3 Documentation</a>
   </p>
 
-  <button type="button" @click="state.count++">
-    count is: {{ state.count }}
-  </button>
+  <button type="button" @click="count++">count is: {{ count }}</button>
   <p>
     Edit
     <code>components/HelloWorld.vue</code> to test hot module replacement.
   </p>
 </template>
 
-<script setup>
-import { defineProps, reactive } from 'vue'
-
-defineProps({
-  msg: String
-})
-
-const state = reactive({ count: 0 })
-</script>
-
 <style scoped>
 a {
   color: #42b983;