diff --git a/.changeset/ninety-ducks-collect.md b/.changeset/ninety-ducks-collect.md
new file mode 100644
index 000000000000..67ce577f9885
--- /dev/null
+++ b/.changeset/ninety-ducks-collect.md
@@ -0,0 +1,5 @@
+---
+'@sveltejs/kit': patch
+---
+
+Upgrade vite-plugin-svelte to ^1.3.1
diff --git a/packages/kit/package.json b/packages/kit/package.json
index 03459a623171..19d446f78832 100644
--- a/packages/kit/package.json
+++ b/packages/kit/package.json
@@ -10,7 +10,7 @@
 	"homepage": "https://kit.svelte.dev",
 	"type": "module",
 	"dependencies": {
-		"@sveltejs/vite-plugin-svelte": "^1.1.0",
+		"@sveltejs/vite-plugin-svelte": "^1.3.1",
 		"@types/cookie": "^0.5.1",
 		"cookie": "^0.5.0",
 		"devalue": "^4.2.0",
diff --git a/packages/kit/src/exports/vite/index.js b/packages/kit/src/exports/vite/index.js
index 6d8642d0f1a4..c14f5f333d25 100644
--- a/packages/kit/src/exports/vite/index.js
+++ b/packages/kit/src/exports/vite/index.js
@@ -64,7 +64,7 @@ const enforced_config = {
 
 /** @return {import('vite').Plugin[]} */
 export function sveltekit() {
-	return [...svelte({ prebundleSvelteLibraries: true }), kit()];
+	return [...svelte(), kit()];
 }
 
 /**
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 6c5bc1d28541..056557421782 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -262,7 +262,7 @@ importers:
   packages/kit:
     specifiers:
       '@playwright/test': 1.25.0
-      '@sveltejs/vite-plugin-svelte': ^1.1.0
+      '@sveltejs/vite-plugin-svelte': ^1.3.1
       '@types/connect': ^3.4.35
       '@types/cookie': ^0.5.1
       '@types/marked': ^4.0.7
@@ -288,7 +288,7 @@ importers:
       uvu: ^0.5.6
       vite: ^3.2.1
     dependencies:
-      '@sveltejs/vite-plugin-svelte': 1.1.1_svelte@3.53.1+vite@3.2.3
+      '@sveltejs/vite-plugin-svelte': 1.3.1_svelte@3.53.1+vite@3.2.3
       '@types/cookie': 0.5.1
       cookie: 0.5.0
       devalue: 4.2.0
@@ -1167,8 +1167,8 @@ packages:
       golden-fleece: 1.0.9
     dev: true
 
-  /@sveltejs/vite-plugin-svelte/1.1.1_svelte@3.53.1+vite@3.2.3:
-    resolution: {integrity: sha512-NzIaGIzWh5hCSMUoxukYEGmxFCWgzaVglqHJLV5r0BA7hHZbHXu8DYR80i6QUX4xyoQ4PZ8ir7SUYsThbreMcg==}
+  /@sveltejs/vite-plugin-svelte/1.3.1_svelte@3.53.1+vite@3.2.3:
+    resolution: {integrity: sha512-2Uu2sDdIR+XQWF7QWOVSF2jR9EU6Ciw1yWfYnfLYj8HIgnNxkh/8g22Fw2pBUI8QNyW/KxtqJUWBI+8ypamSrQ==}
     engines: {node: ^14.18.0 || >= 16}
     peerDependencies:
       diff-match-patch: ^1.0.5
@@ -1185,6 +1185,7 @@ packages:
       svelte: 3.53.1
       svelte-hmr: 0.15.1_svelte@3.53.1
       vite: 3.2.3_@types+node@16.18.3
+      vitefu: 0.2.2_vite@3.2.3
     transitivePeerDependencies:
       - supports-color
     dev: false
@@ -4608,6 +4609,17 @@ packages:
     optionalDependencies:
       fsevents: 2.3.2
 
+  /vitefu/0.2.2_vite@3.2.3:
+    resolution: {integrity: sha512-8CKEIWPm4B4DUDN+h+hVJa9pyNi7rzc5MYmbxhs1wcMakueGFNWB5/DL30USm9qU3xUPnL4/rrLEAwwFiD1tag==}
+    peerDependencies:
+      vite: ^3.0.0
+    peerDependenciesMeta:
+      vite:
+        optional: true
+    dependencies:
+      vite: 3.2.3_@types+node@16.18.3
+    dev: false
+
   /vscode-oniguruma/1.6.2:
     resolution: {integrity: sha512-KH8+KKov5eS/9WhofZR8M8dMHWN2gTxjMsG4jd04YhpbPR91fUj7rYQ2/XjeHCJWbg7X++ApRIU9NUwM2vTvLA==}
     dev: true