diff --git a/examples/app-vitest-full/components/GenericStateComponent.vue b/examples/app-vitest-full/components/GenericStateComponent.vue
new file mode 100644
index 000000000..6b0fd04bd
--- /dev/null
+++ b/examples/app-vitest-full/components/GenericStateComponent.vue
@@ -0,0 +1,15 @@
+<script setup lang="ts">
+const { isPositive } = useCounter()
+const { data } = useLazyAsyncData(async () => {
+  return isPositive() ? 'positive' : 'zero-or-negative'
+})
+</script>
+
+<template>
+  <div v-if="data === 'positive'">
+    Positive count
+  </div>
+  <div v-else>
+    Zero or negative count
+  </div>
+</template>
diff --git a/examples/app-vitest-full/components/WatcherComponent.vue b/examples/app-vitest-full/components/WatcherComponent.vue
new file mode 100644
index 000000000..8e55bfc38
--- /dev/null
+++ b/examples/app-vitest-full/components/WatcherComponent.vue
@@ -0,0 +1,15 @@
+<script setup lang="ts">
+const { title } = defineProps<{ title: string }>()
+
+const testState = useState('testState')
+
+watch(testState, (newTestState) => {
+  console.log(`Test state has changed in component ${title}: `, newTestState)
+})
+</script>
+
+<template>
+  <div>
+    {{ title }}
+  </div>
+</template>
diff --git a/examples/app-vitest-full/composables/useCounter.ts b/examples/app-vitest-full/composables/useCounter.ts
new file mode 100644
index 000000000..6d8154b90
--- /dev/null
+++ b/examples/app-vitest-full/composables/useCounter.ts
@@ -0,0 +1,12 @@
+export const useCounter = () => {
+  const count = ref(0)
+
+  function isPositive() {
+    return count.value > 0
+  }
+
+  return {
+    count,
+    isPositive,
+  }
+}
diff --git a/examples/app-vitest-full/tests/nuxt/mount-suspended.spec.ts b/examples/app-vitest-full/tests/nuxt/mount-suspended.spec.ts
index fa894ef3f..da7f6795b 100644
--- a/examples/app-vitest-full/tests/nuxt/mount-suspended.spec.ts
+++ b/examples/app-vitest-full/tests/nuxt/mount-suspended.spec.ts
@@ -1,6 +1,6 @@
 import { describe, expect, it, vi, beforeEach, afterEach } from 'vitest'
 
-import { mountSuspended } from '@nuxt/test-utils/runtime'
+import { mockNuxtImport, mountSuspended } from '@nuxt/test-utils/runtime'
 import { satisfies } from 'semver'
 import { version as nuxtVersion } from 'nuxt/package.json'
 
@@ -25,11 +25,13 @@ import ComponentWithAttrs from '~/components/ComponentWithAttrs.vue'
 import ComponentWithReservedProp from '~/components/ComponentWithReservedProp.vue'
 import ComponentWithReservedState from '~/components/ComponentWithReservedState.vue'
 import ComponentWithImports from '~/components/ComponentWithImports.vue'
+import GenericStateComponent from '~/components/GenericStateComponent.vue'
 
 import { BoundAttrs } from '#components'
 import DirectiveComponent from '~/components/DirectiveComponent.vue'
 import CustomComponent from '~/components/CustomComponent.vue'
 import WrapperElement from '~/components/WrapperElement.vue'
+import WatcherComponent from '~/components/WatcherComponent.vue'
 
 const formats = {
   ExportDefaultComponent,
@@ -454,3 +456,79 @@ it('element should be changed', async () => {
 
   expect(component.element.tagName).toBe('SPAN')
 })
+
+describe('composable state isolation', () => {
+  const { useCounterMock } = vi.hoisted(() => {
+    return {
+      useCounterMock: vi.fn(() => {
+        return {
+          isPositive: (): boolean => false,
+        }
+      }),
+    }
+  })
+
+  mockNuxtImport('useCounter', () => {
+    return useCounterMock
+  })
+
+  it('shows zero or negative state by default', async () => {
+    const component = await mountSuspended(GenericStateComponent, { scoped: true })
+    expect(component.text()).toMatchInlineSnapshot('"Zero or negative count"')
+  })
+
+  it('shows positive state when counter is positive', async () => {
+    useCounterMock.mockRestore()
+    useCounterMock.mockImplementation(() => ({
+      isPositive: () => true,
+    }))
+    const component = await mountSuspended(GenericStateComponent, { scoped: true })
+    expect(component.text()).toMatchInlineSnapshot('"Positive count"')
+  })
+})
+
+describe('watcher cleanup validation', () => {
+  let watcherCallCount = 0
+  beforeEach(() => {
+    watcherCallCount = 0
+    // Mock console.log to count watcher calls
+    vi.spyOn(console, 'log').mockImplementation((message) => {
+      if (typeof message === 'string' && message.includes('Test state has changed')) {
+        watcherCallCount++
+      }
+    })
+  })
+
+  afterEach(() => {
+    vi.restoreAllMocks()
+  })
+
+  it('mounts component in test 1', async () => {
+    await mountSuspended(WatcherComponent, {
+      props: {
+        title: 'Component 1',
+      },
+      scoped: true,
+    })
+
+    expect(watcherCallCount).toBe(0)
+  })
+
+  it('mounts component in test 2 and validates watcher cleanup', async () => {
+    await mountSuspended(WatcherComponent, {
+      props: {
+        title: 'Component 2',
+      },
+      scoped: true,
+    })
+
+    watcherCallCount = 0
+
+    const state = useState('testState')
+    state.value = 'new state'
+
+    await nextTick()
+
+    expect(watcherCallCount).toBe(1)
+  })
+})
diff --git a/src/runtime-utils/mount.ts b/src/runtime-utils/mount.ts
index d6d746ba0..05706079c 100644
--- a/src/runtime-utils/mount.ts
+++ b/src/runtime-utils/mount.ts
@@ -1,6 +1,6 @@
 import { mount } from '@vue/test-utils'
 import type { ComponentMountingOptions } from '@vue/test-utils'
-import { Suspense, h, isReadonly, nextTick, reactive, unref, getCurrentInstance } from 'vue'
+import { Suspense, h, isReadonly, nextTick, reactive, unref, getCurrentInstance, effectScope } from 'vue'
 import type { ComponentInternalInstance, DefineComponent, SetupContext } from 'vue'
 import { defu } from 'defu'
 import type { RouteLocationRaw } from 'vue-router'
@@ -12,6 +12,7 @@ import { tryUseNuxtApp, useRouter } from '#imports'
 
 type MountSuspendedOptions<T> = ComponentMountingOptions<T> & {
   route?: RouteLocationRaw
+  scoped?: boolean
 }
 
 // TODO: improve return types
@@ -57,6 +58,11 @@ export async function mountSuspended<T>(
     ..._options
   } = options || {}
 
+  // cleanup previously mounted test wrappers
+  for (const cleanupFunction of globalThis.__cleanup || []) {
+    cleanupFunction()
+  }
+
   const vueApp = tryUseNuxtApp()?.vueApp
     // @ts-expect-error untyped global __unctx__
     || globalThis.__unctx__.get('nuxt-app').tryUse().vueApp
@@ -104,13 +110,31 @@ export async function mountSuspended<T>(
   }
 
   let passedProps: Record<string, unknown>
+  let componentScope: ReturnType<typeof effectScope> | null = null
+
   const wrappedSetup = async (props: Record<string, unknown>, setupContext: SetupContext): Promise<unknown> => {
     interceptEmitOnCurrentInstance()
 
     passedProps = props
 
     if (setup) {
-      const result = await setup(props, setupContext)
+      let result
+      if (options?.scoped) {
+        componentScope = effectScope()
+
+        // Add component scope cleanup to global cleanup
+        globalThis.__cleanup ||= []
+        globalThis.__cleanup.push(() => {
+          componentScope?.stop()
+        })
+        result = await componentScope?.run(async () => {
+          return await setup(props, setupContext)
+        })
+      }
+      else {
+        result = await setup(props, setupContext)
+      }
+
       setupState = result && typeof result === 'object' ? result : {}
       return result
     }
@@ -122,10 +146,25 @@ export async function mountSuspended<T>(
         {
           setup: (props: Record<string, unknown>, ctx: SetupContext) => {
             setupContext = ctx
-            return NuxtRoot.setup(props, {
-              ...ctx,
-              expose: () => {},
-            })
+
+            if (options?.scoped) {
+              const scope = effectScope()
+
+              globalThis.__cleanup ||= []
+              globalThis.__cleanup.push(() => {
+                scope.stop()
+              })
+              return scope.run(() => NuxtRoot.setup(props, {
+                ...ctx,
+                expose: () => {},
+              }))
+            }
+            else {
+              return NuxtRoot.setup(props, {
+                ...ctx,
+                expose: () => {},
+              })
+            }
           },
           render: (renderContext: Record<string, unknown>) =>
             h(
@@ -276,3 +315,7 @@ function wrappedMountedWrapper<T>(wrapper: ReturnType<typeof mount<T>> & { setup
 
   return proxy
 }
+
+declare global {
+  var __cleanup: Array<() => void> | undefined
+}